Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-12658 | |
Entity Registrant Name | ALBEMARLE CORPORATION | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1692118 | |
Entity Address, Address Line One | 4250 Congress Street, Suite 900 | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28209 | |
City Area Code | (980) | |
Local Phone Number | 299-5700 | |
Title of each class | COMMON STOCK, $.01 Par Value | |
Trading Symbol | ALB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 117,346,775 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000915913 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,370,190 | $ 1,479,593 | $ 4,950,442 | $ 2,607,321 |
Cost of goods sold | 1,811,703 | 899,169 | 3,115,415 | 1,577,867 |
Gross profit | 558,487 | 580,424 | 1,835,027 | 1,029,454 |
Selling, general and administrative expenses | 397,070 | 128,942 | 551,376 | 241,510 |
Research and development expenses | 21,419 | 17,386 | 41,890 | 33,469 |
(Gain) loss on sale of business/interest in properties | 0 | 0 | 0 | 8,400 |
Operating profit | 139,998 | 434,096 | 1,241,761 | 746,075 |
Interest and financing expenses | (25,577) | (41,409) | (52,354) | (69,243) |
Other income, net | 53,954 | 8,767 | 136,446 | 24,263 |
Income before income taxes and equity in net income of unconsolidated investments | 168,375 | 401,454 | 1,325,853 | 701,095 |
Income tax expense | 42,987 | 89,018 | 319,950 | 169,548 |
Income before equity in net income of unconsolidated investments | 125,388 | 312,436 | 1,005,903 | 531,547 |
Equity in net income of unconsolidated investments (net of tax) | 551,051 | 128,156 | 947,239 | 190,592 |
Net income | 676,439 | 440,592 | 1,953,142 | 722,139 |
Net income attributable to noncontrolling interests | (26,396) | (33,819) | (64,519) | (61,983) |
Net income attributable to Albemarle Corporation | $ 650,043 | $ 406,773 | $ 1,888,623 | $ 660,156 |
Basic earnings per share (in dollars per share) | $ 5.54 | $ 3.47 | $ 16.10 | $ 5.64 |
Diluted earnings per share (in dollars per share) | $ 5.52 | $ 3.46 | $ 16.03 | $ 5.61 |
Weighted-average common shares outstanding - basic (in shares) | 117,332 | 117,116 | 117,282 | 117,091 |
Weighted-average common shares outstanding - diluted (in shares) | 117,769 | 117,724 | 117,805 | 117,689 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 676,439 | $ 440,592 | $ 1,953,142 | $ 722,139 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation and other | (5,635) | (117,821) | 40,581 | (123,710) |
Cash flow hedge | 1,026 | (2,509) | 2,127 | 1,508 |
Interest rate swap | 0 | 6,749 | 0 | 7,399 |
Total other comprehensive (loss) income, net of tax | (4,609) | (113,581) | 42,708 | (114,803) |
Comprehensive income | 671,830 | 327,011 | 1,995,850 | 607,336 |
Comprehensive income attributable to noncontrolling interests | (26,396) | (33,757) | (64,511) | (61,868) |
Comprehensive income attributable to Albemarle Corporation | $ 645,434 | $ 293,254 | $ 1,931,339 | $ 545,468 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,599,738 | $ 1,499,142 |
Trade accounts receivable, less allowance for doubtful accounts (2023 – $3,008; 2022 – $2,534) | 1,344,278 | 1,190,970 |
Other accounts receivable | 426,780 | 185,819 |
Inventories | 3,658,623 | 2,076,031 |
Other current assets | 425,358 | 234,955 |
Total current assets | 7,454,777 | 5,186,917 |
Property, plant and equipment, at cost | 10,396,965 | 9,354,330 |
Less accumulated depreciation and amortization | 2,542,424 | 2,391,333 |
Net property, plant and equipment | 7,854,541 | 6,962,997 |
Investments | 1,621,424 | 1,150,553 |
Other assets | 269,694 | 250,558 |
Goodwill | 1,634,823 | 1,617,627 |
Other intangibles, net of amortization | 274,409 | 287,870 |
Total assets | 19,109,668 | 15,456,522 |
Current liabilities: | ||
Accrued expenses | 672,807 | 505,894 |
Current portion of long-term debt | 6,247 | 2,128 |
Dividends payable | 46,654 | 46,116 |
Income taxes payable | 513,339 | 134,876 |
Total current liabilities | 4,291,513 | 2,741,015 |
Long-term debt | 3,509,289 | 3,214,972 |
Postretirement benefits | 32,792 | 32,751 |
Pension benefits | 159,131 | 159,571 |
Other noncurrent liabilities | 700,825 | 636,596 |
Deferred income taxes | 328,078 | 480,770 |
Commitments and contingencies (Note 9) | ||
Albemarle Corporation shareholders’ equity: | ||
Common stock, $.01 par value, issued and outstanding – 117,340 in 2023 and 117,168 in 2022 | 1,174 | 1,172 |
Additional paid-in capital | 2,936,036 | 2,940,840 |
Accumulated other comprehensive loss | (517,946) | (560,662) |
Retained earnings | 7,396,045 | 5,601,277 |
Total Albemarle Corporation shareholders’ equity | 9,815,309 | 7,982,627 |
Noncontrolling interests | 272,731 | 208,220 |
Total equity | 10,088,040 | 8,190,847 |
Total liabilities and equity | 19,109,668 | 15,456,522 |
Nonrelated Party | ||
Current liabilities: | ||
Accounts payable | 1,960,068 | 1,533,624 |
Related Party | ||
Current liabilities: | ||
Accounts payable | $ 1,092,398 | $ 518,377 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3,008 | $ 2,534 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 117,340 | 117,168 |
Common stock, outstanding (in shares) | 117,340 | 117,168 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Albemarle Shareholders' Equity | Non-controlling Interests |
Beginning Balance (in shares) at Dec. 31, 2021 | 117,015,333 | ||||||
Beginning Balance at Dec. 31, 2021 | $ 5,805,607 | $ 1,170 | $ 2,920,007 | $ (392,450) | $ 3,096,539 | $ 5,625,266 | $ 180,341 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 722,139 | 660,156 | 660,156 | 61,983 | |||
Other comprehensive (loss) income | (114,803) | (114,688) | (114,688) | (115) | |||
Cash dividends declared | (119,048) | (92,523) | (92,523) | (26,525) | |||
Stock-based compensation | 16,808 | 16,808 | 16,808 | ||||
Exercise of stock options (in shares) | 7,789 | ||||||
Exercise of stock options | 468 | $ 0 | 468 | 468 | |||
Issuance of common stock, net (in shares) | 154,696 | ||||||
Issuance of common stock, net | 387 | $ 2 | 385 | 387 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (56,070) | ||||||
Withholding taxes paid on stock-based compensation award distributions | (10,583) | $ (1) | (10,582) | (10,583) | |||
Ending Balance (in shares) at Jun. 30, 2022 | 117,121,748 | ||||||
Ending Balance at Jun. 30, 2022 | 6,300,975 | $ 1,171 | 2,927,086 | (507,138) | 3,664,172 | 6,085,291 | 215,684 |
Beginning Balance (in shares) at Mar. 31, 2022 | 117,112,394 | ||||||
Beginning Balance at Mar. 31, 2022 | 6,035,052 | $ 1,171 | 2,915,387 | (393,619) | 3,303,661 | 5,826,600 | 208,452 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 440,592 | 406,773 | 406,773 | 33,819 | |||
Other comprehensive (loss) income | (113,581) | (113,519) | (113,519) | (62) | |||
Cash dividends declared | (72,787) | (46,262) | (46,262) | (26,525) | |||
Stock-based compensation | 11,424 | 11,424 | 11,424 | ||||
Exercise of stock options (in shares) | 7,289 | ||||||
Exercise of stock options | 436 | $ 0 | 436 | 436 | |||
Issuance of common stock, net (in shares) | 3,066 | ||||||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (1,001) | ||||||
Withholding taxes paid on stock-based compensation award distributions | (161) | (161) | (161) | ||||
Ending Balance (in shares) at Jun. 30, 2022 | 117,121,748 | ||||||
Ending Balance at Jun. 30, 2022 | 6,300,975 | $ 1,171 | 2,927,086 | (507,138) | 3,664,172 | 6,085,291 | 215,684 |
Beginning Balance (in shares) at Dec. 31, 2022 | 117,168,366 | ||||||
Beginning Balance at Dec. 31, 2022 | 8,190,847 | $ 1,172 | 2,940,840 | (560,662) | 5,601,277 | 7,982,627 | 208,220 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,953,142 | 1,888,623 | 1,888,623 | 64,519 | |||
Other comprehensive (loss) income | 42,708 | 42,716 | 42,716 | (8) | |||
Cash dividends declared | (93,855) | (93,855) | (93,855) | 0 | |||
Stock-based compensation | 20,027 | 20,027 | 20,027 | ||||
Exercise of stock options (in shares) | 1,220 | ||||||
Exercise of stock options | 81 | $ 0 | 81 | 81 | |||
Issuance of common stock, net (in shares) | 276,860 | ||||||
Issuance of common stock, net | 0 | $ 3 | (3) | 0 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (106,567) | ||||||
Withholding taxes paid on stock-based compensation award distributions | (24,910) | $ (1) | (24,909) | (24,910) | |||
Ending Balance (in shares) at Jun. 30, 2023 | 117,339,879 | ||||||
Ending Balance at Jun. 30, 2023 | 10,088,040 | $ 1,174 | 2,936,036 | (517,946) | 7,396,045 | 9,815,309 | 272,731 |
Beginning Balance (in shares) at Mar. 31, 2023 | 117,299,392 | ||||||
Beginning Balance at Mar. 31, 2023 | 9,459,070 | $ 1,173 | 2,931,961 | (513,337) | 6,792,938 | 9,212,735 | 246,335 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 676,439 | 650,043 | 650,043 | 26,396 | |||
Other comprehensive (loss) income | (4,609) | (4,609) | (4,609) | 0 | |||
Cash dividends declared | (46,936) | (46,936) | (46,936) | 0 | |||
Stock-based compensation | 10,369 | 10,369 | 10,369 | ||||
Exercise of stock options (in shares) | 0 | ||||||
Exercise of stock options | 0 | 0 | 0 | ||||
Issuance of common stock, net (in shares) | 71,688 | ||||||
Issuance of common stock, net | 0 | $ 1 | (1) | 0 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (31,201) | ||||||
Withholding taxes paid on stock-based compensation award distributions | (6,293) | (6,293) | (6,293) | ||||
Ending Balance (in shares) at Jun. 30, 2023 | 117,339,879 | ||||||
Ending Balance at Jun. 30, 2023 | $ 10,088,040 | $ 1,174 | $ 2,936,036 | $ (517,946) | $ 7,396,045 | $ 9,815,309 | $ 272,731 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Financial Position [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.40 | $ 0.395 | $ 0.80 | $ 0.79 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of year | $ 1,499,142 | $ 439,272 |
Cash flows from operating activities: | ||
Net income | 1,953,142 | 722,139 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 180,356 | 137,567 |
(Gain) loss on sale of business/interest in properties | 0 | 8,400 |
Stock-based compensation and other | 20,017 | 15,232 |
Equity in net income of unconsolidated investments (net of tax) | (947,239) | (190,592) |
Dividends received from unconsolidated investments and nonmarketable securities | 1,079,439 | 156,964 |
Pension and postretirement benefit | 3,933 | (8,273) |
Pension and postretirement contributions | (8,632) | (7,685) |
Unrealized (gain) loss on investments in marketable securities | (61,434) | 3,061 |
Loss on early extinguishment of debt | 0 | 19,219 |
Deferred income taxes | (144,720) | 39,476 |
Working capital changes | (1,155,408) | (888,036) |
Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL | 11,623 | 96,314 |
Other, net | (136,390) | (43,475) |
Net cash provided by operating activities | 794,687 | 60,311 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (8,240) | 0 |
Capital expenditures | (919,295) | (502,607) |
(Purchases) sales of marketable securities, net | (123,979) | 3,402 |
Investments in equity and other corporate investments | (1,192) | (767) |
Net cash used in investing activities | (1,052,706) | (499,972) |
Cash flows from financing activities: | ||
Repayments of long-term debt and credit agreements | 0 | (455,000) |
Proceeds from borrowings of long-term debt and credit agreements | 300,000 | 1,964,216 |
Other debt repayments, net | (1,500) | (390,601) |
Fees related to early extinguishment of debt | 0 | (9,767) |
Dividends paid to shareholders | (93,317) | (91,894) |
Dividends paid to noncontrolling interests | (53,145) | (26,525) |
Proceeds from exercise of stock options | 81 | 855 |
Withholding taxes paid on stock-based compensation award distributions | (24,910) | (10,583) |
Other | 0 | (4,172) |
Net cash provided by financing activities | 127,209 | 976,529 |
Net effect of foreign exchange on cash and cash equivalents | 231,406 | (45,544) |
Increase in cash and cash equivalents | 100,596 | 491,324 |
Cash and cash equivalents at end of period | $ 1,599,738 | $ 930,596 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation:In the opinion of management, the accompanying unaudited condensed consolidated financial statements of Albemarle Corporation and our wholly-owned, majority-owned and controlled subsidiaries (collectively, “Albemarle,” “we,” “us,” “our” or the “Company”) contain all adjustments necessary for a fair statement, in all material respects, of our consolidated balance sheets as of June 30, 2023 and December 31, 2022, our consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of changes in equity for the three- and six- month periods ended June 30, 2023 and 2022 and our condensed consolidated statements of cash flows for the six-month periods ended June 30, 2023 and 2022. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the U.S. Securities and Exchange Commission (“SEC”) on February 15, 2023. The December 31, 2022 consolidated balance sheet data herein was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The results of operations for the three- and six-month periods ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year |
Business Combinations and Asset
Business Combinations and Asset Acquisitions | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions: On October 25, 2022, the Company completed the acquisition of all of the outstanding equity of Guangxi Tianyuan New Energy Materials Co., Ltd. (“Qinzhou”) for approximately $200 million in cash, which includes a deferral of approximately $29 million. The first installment of the deferral, net of working capital adjustments, was paid in the second quarter of 2023, while the final installment was paid in July 2023. Qinzhou's operations include a lithium processing plant strategically positioned near the Port of Qinzhou in Guangxi, which began commercial production in the first half of 2022. The plant has designed annual conversion capacity of up to 25,000 metric tons of lithium carbonate equivalent (“LCE”) and is capable of producing battery-grade lithium carbonate and lithium hydroxide. The aggregate purchase price noted above was allocated to the major categories of assets and liabilities acquired based upon their estimated fair values at the acquisition closing date, which were based, in part, upon third-party appraisals for certain assets. The fair value of the assets and liabilities was primarily related to Property, plant and equipment of $106.6 million, Other intangibles of $16.3 million, net current liabilities of $5.5 million, and long-term liabilities of $7.1 million. The excess of the purchase price over the preliminary estimated fair value of the net assets acquired was approximately $76.1 million and was recorded as Goodwill. The allocation of the purchase price to the assets acquired and liabilities assumed, including the residual amount allocated to Goodwill, is based upon preliminary information and is subject to change within the measurement-period (up to one year from the acquisition date) as additional information concerning final asset and liability valuations is obtained. The primary area of the preliminary purchase price allocation that is not yet finalized relates to the fair value of the Other intangible assets and Goodwill. The fair value of the assets acquired and liabilities assumed was based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. The discount rate is a significant assumption used in the valuation model. If the actual results differ from the estimates and judgments used in these fair values, the amounts recorded in the consolidated financial statements could be subject to possible impairment. Goodwill arising from the acquisition was recorded within the Energy Storage segment and consists largely of anticipated synergies and economies of scale from the combined companies and overall strategic importance of the acquired businesses to Albemarle. The goodwill attributable to the acquisition will not be amortizable or deductible for tax purposes. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes:The effective income tax rate for the three-month and six-month period ended June 30, 2023 was 25.5% and 24.1%, respectively, compared to 22.2% and 24.2% for the three-month and six-month period ended June 30, 2022, respectively. The three-month period ended June 30, 2023 included tax expense related to an uncertain tax position in Chile offset by a tax benefit related to foreign derived intangible income. The Company’s effective income tax rate fluctuates based on, among other factors, the amount and location of income. The difference between the U.S. federal statutory income tax rate and our effective income tax rate for the three- and six-month periods ended June 30, 2023 was impacted by a variety of factors, primarily the location in which income was earned, foreign-derived intangible income and an uncertain tax position recorded in Chile and a non-deductible accrual for the agreements in principle to resolve a previously disclosed legal matter with the U.S. Department of Justice (“DOJ”), the SEC, and the Dutch Public Prosecutor (“DPP”) (see Note 9, “Commitments and Contingencies,” for further information). The difference between the U.S. federal statutory income tax rate and our effective income tax rate for the three- and six-month period ended June 30, 2022 was impacted by a variety of factors, primarily global intangible low-taxed income and the location in which income was earned. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2023 and 2022 are calculated as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended 2023 2022 2023 2022 Basic earnings per share Numerator: Net income attributable to Albemarle Corporation $ 650,043 $ 406,773 $ 1,888,623 $ 660,156 Denominator: Weighted-average common shares for basic earnings per share 117,332 117,116 117,282 117,091 Basic earnings per share $ 5.54 $ 3.47 $ 16.10 $ 5.64 Diluted earnings per share Numerator: Net income attributable to Albemarle Corporation $ 650,043 $ 406,773 $ 1,888,623 $ 660,156 Denominator: Weighted-average common shares for basic earnings per share 117,332 117,116 117,282 117,091 Incremental shares under stock compensation plans 437 608 523 598 Weighted-average common shares for diluted earnings per share 117,769 117,724 117,805 117,689 Diluted earnings per share $ 5.52 $ 3.46 $ 16.03 $ 5.61 At June 30, 2023 there were 51,316 common stock equivalents not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. On May 2, 2023, the Company declared a cash dividend of $0.40, an increase from the prior year regular quarterly dividend. This dividend was paid on July 3, 2023 to shareholders of record at the close of business as of June 16, 2023. On July 18, 2023, the Company declared a cash dividend of $0.40 per share, which is payable on October 2, 2023 to shareholders of record at the close of business as of September 15, 2023. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories: The following table provides a breakdown of inventories at June 30, 2023 and December 31, 2022 (in thousands): June 30, December 31, 2023 2022 Finished goods $ 3,164,540 $ 1,679,473 Raw materials and work in process (a) 378,463 296,998 Stores, supplies and other 115,620 99,560 Total $ 3,658,623 $ 2,076,031 (a) Includes $174.1 million and $133.2 million at June 30, 2023 and December 31, 2022, respectively, of work in process in our Energy Storage segment. The Company eliminates the balance of deferred profits on sales from its equity method investments to the Company to Inventories, specifically finished goods. Deferred profits from equity method investments totaled $750.9 million and $332.3 million as of June 30, 2023 and December 31, 2022, respectively. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments: MARBL Joint Venture Agreement Restructuring On July 19, 2023, the Company announced it agreed to amend the terms of definitive agreements signed with Mineral Resources Limited (“MRL”) in February 2023 to restructure the parties' MARBL lithium joint venture in Australia (“MARBL”). This amended agreement is intended to significantly simplify the commercial operation agreements previously entered into, retain full control of downstream conversion assets and to provide greater strategic opportunities for each company based on their global operations and the evolving lithium market. Under the new agreements, Albemarle will acquire the remaining 40% ownership of the Kemerton lithium hydroxide processing facility in Australia currently jointly owned with Mineral Resources through the MARBL joint venture. Albemarle will also retain full ownership of its Qinzhou and Meishan lithium processing facilities in China, which were previously going to be owned 50% by MRL under the terms of the previously announced agreement restructuring. In exchange for the remaining ownership interest in Kemerton, Albemarle will pay cash and sell 10% of its interest in the Wodgina Lithium Mine Project (“Wodgina”) to MRL. Albemarle expects to pay MRL between an estimated $380 million to $400 million, depending on the closing date of the transaction, which includes net consideration for the remaining ownership of Kemerton as well as an economic effective date of the transaction retroactive to April 1, 2022. After closing, Albemarle and MRL will each own 50% of Wodgina, and MRL will operate the Wodgina mine on behalf of the joint venture. This transaction is expected to close in the second half of 2023 and is subject to regulatory approval and other customary closing conditions. Variable Interest Entities The Company holds a 49% equity interest in Windfield Holdings Pty. Ltd. (“Talison”), where the ownership parties share risks and benefits disproportionate to their voting interests. As a result, the Company considers Talison to be a variable interest entity (“VIE”), however this investment is not consolidated as the Company is not the primary beneficiary. The carrying amount of the Company’s 49% equity interest in Windfield, which is our most significant VIE, was $945.5 million and $694.5 million at June 30, 2023 and December 31, 2022, respectively. The Company’s aggregate net investment in all other entities which it considers to be VIEs of which the Company is not the primary beneficiary was $6.8 million at June 30, 2023 and $6.7 million at December 31, 2022. The Company’s unconsolidated VIEs are reported in Investments on the consolidated balance sheets. The Company does not guarantee debt for, or have other financial support obligations to, these entities, and its maximum exposure to loss in connection with its continuing involvement with these entities is limited to the carrying value of the investments. The following table summarizes the unaudited results of operations for the Talison joint venture, which met the significant subsidiary test for subsidiaries not consolidated or 50% or less owned persons under Rule 10-01 of Regulation S-X, for the three-month periods ended June 30, 2023 and 2022 (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net sales $ 2,319,020 $ 626,692 $ 4,278,318 $ 1,019,525 Gross profit 2,244,236 567,660 4,145,936 922,102 Income before income taxes 2,151,879 453,370 3,936,029 745,922 Net income 1,506,326 317,363 2,755,228 522,150 Other As part of the proceeds from the sale of the fine chemistry services (“FCS”) business on June 1, 2021, W.R. Grace & Co. (“Grace”) issued Albemarle preferred equity of a Grace subsidiary having an aggregate stated value of $270 million. The preferred equity can be redeemed at Grace’s option under certain conditions and began accruing PIK dividends at an annual rate of 12% beginning on June 1, 2023. In addition, the preferred equity can be redeemed by Albemarle when the accumulated balance reaches 200% of the original value. This preferred equity had a fair value of $272.7 million and $260.1 million at June 30, 2023 and December 31, 2022, respectively, which is reported in Investments in the consolidated balance sheets. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles: The following table summarizes the changes in goodwill by reportable segment for the six months ended June 30, 2023 (in thousands): Energy Storage Specialties Ketjen Total Balance at December 31, 2022 $ 1,424,275 $ 20,319 $ 173,033 $ 1,617,627 Segment realignment (a) (12,316) 12,316 — — Foreign currency translation adjustments and other 12,124 — 5,072 17,196 Balance at June 30, 2023 $ 1,424,083 $ 32,635 $ 178,105 $ 1,634,823 (a) Effective January 1, 2023, the Company realigned its Lithium and Bromine reportable segments into the Energy Storage and Specialties reportable segments. See Note 11, “Segment Information,” for additional details. As a result, the Company transferred goodwill from its legacy Lithium segment to the new Specialties reportable segment during the six months ended June 30, 2023. The following table summarizes the changes in other intangibles and related accumulated amortization for the six months ended June 30, 2023 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2022 $ 412,670 $ 13,161 $ 46,399 $ 35,186 $ 507,416 Foreign currency translation adjustments and other 2,885 310 (517) 196 2,874 Balance at June 30, 2023 $ 415,555 $ 13,471 $ 45,882 $ 35,382 $ 510,290 Accumulated Amortization Balance at December 31, 2022 $ (177,627) $ (3,587) $ (23,790) $ (14,542) $ (219,546) Amortization (13,063) — (1,307) (489) (14,859) Foreign currency translation adjustments and other (1,173) (69) (192) (42) (1,476) Balance at June 30, 2023 $ (191,863) $ (3,656) $ (25,289) $ (15,073) $ (235,881) Net Book Value at December 31, 2022 $ 235,043 $ 9,574 $ 22,609 $ 20,644 $ 287,870 Net Book Value at June 30, 2023 $ 223,692 $ 9,815 $ 20,593 $ 20,309 $ 274,409 (a) Net Book Value includes only indefinite-lived intangible assets. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt: Long-term debt at June 30, 2023 and December 31, 2022 consisted of the following (in thousands): June 30, December 31, 2023 2022 1.125% notes due 2025 $ 413,371 $ 401,265 1.625% notes due 2028 548,050 532,000 3.45% Senior notes due 2029 171,612 171,612 4.65% Senior notes due 2027 650,000 650,000 5.05% Senior notes due 2032 600,000 600,000 5.45% Senior notes due 2044 350,000 350,000 5.65% Senior notes due 2052 450,000 450,000 Variable-rate foreign bank loans 2,776 2,997 Finance lease obligations 122,053 76,537 Other 311,641 11,378 Unamortized discount and debt issuance costs (103,967) (28,689) Total long-term debt 3,515,536 3,217,100 Less amounts due within one year 6,247 2,128 Long-term debt, less current portion $ 3,509,289 $ 3,214,972 In the second quarter of 2023 the Company received a loan of $300.0 million to be repaid in five equal annual installments beginning on December 31, 2026. This interest-free loan was discounted using an imputed interest rate of 5.53% and the Company will amortize that discount through Interest and financing expenses over the term of the loan. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: Environmental The following activity was recorded in environmental liabilities for the six months ended June 30, 2023 (in thousands): Beginning balance at December 31, 2022 $ 38,245 Expenditures (1,769) Accretion of discount 573 Additions and changes in estimates 1,869 Foreign currency translation adjustments and other 629 Ending balance at June 30, 2023 39,547 Less amounts reported in Accrued expenses 7,909 Amounts reported in Other noncurrent liabilities $ 31,638 Environmental remediation liabilities included discounted liabilities of $31.9 million and $30.1 million at June 30, 2023 and December 31, 2022, respectively, discounted at rates with a weighted-average of 3.6% and 3.4%, respectively, and with the undiscounted amount totaling $60.4 million and $57.5 million at June 30, 2023 and December 31, 2022, respectively. For certain locations where the Company is operating groundwater monitoring and/or remediation systems, prior owners or insurers have assumed all or most of the responsibility. The amounts recorded represent our future remediation and other anticipated environmental liabilities. These liabilities typically arise during the normal course of our operational and environmental management activities or at the time of acquisition of the site, and are based on internal analysis as well as input from outside consultants. As evaluations proceed at each relevant site, changes in risk assessment practices, remediation techniques and regulatory requirements can occur, therefore such liability estimates may be adjusted accordingly. The timing and duration of remediation activities at these sites will be determined when evaluations are completed. Although it is difficult to quantify the potential financial impact of these remediation liabilities, management estimates (based on the latest available information) that there is a reasonable possibility that future environmental remediation costs associated with our past operations could represent an additional $21 million before income taxes, in excess of amounts already recorded. We believe that any sum we may be required to pay in connection with environmental remediation matters in excess of the amounts recorded would likely occur over a period of time and would likely not have a material adverse effect upon our results of operations, financial condition or cash flows on a consolidated annual basis although any such sum could have a material adverse impact on our results of operations, financial condition or cash flows in a particular quarterly reporting period. Litigation We are involved from time to time in legal proceedings of types regarded as common in our business, including administrative or judicial proceedings seeking remediation under environmental laws, such as the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as CERCLA or Superfund, products liability, breach of contract liability and premises liability litigation. Where appropriate, we may establish financial reserves for such proceedings. We also maintain insurance to mitigate certain of such risks. Costs for legal services are generally expensed as incurred. As first reported in 2018, following receipt of information regarding potential improper payments being made by third-party sales representatives of our Refining Solutions business, within what is now our Ketjen segment, we investigated and voluntarily self-reported potential violations of the U.S. Foreign Corrupt Practices Act to the DOJ and SEC, and also reported this conduct to the DPP. Since reporting these matters to the DOJ, SEC, and DPP, we have cooperated with these agencies in their investigations of this historical conduct. We have implemented appropriate remedial measures and strengthened our compliance program and related internal controls. As previously disclosed, we have been engaged in discussions with respect to the foregoing matters, and we have now reached agreements in principle to resolve these matters with the DOJ and SEC. DPP has confirmed it will not pursue action in this matter. In connection with this anticipated resolution, which relates to conduct prior to 2018, we would enter into a Non-Prosecution Agreement with the DOJ and an administrative resolution with the SEC, and pay a total of approximately $218.5 million in aggregate fines, disgorgement, and prejudgment interest to the DOJ and SEC. The anticipated resolution does not include a compliance monitorship, and we would agree to certain ongoing compliance reporting obligations. As we have agreements in principle only, there can be no assurance that we will enter into definitive agreements with respect to such resolution or as to the potential timing, final terms, or collateral consequences of any such resolution. Based on the agreements in principle, we have recorded a charge of $218.5 million in Selling, General and Administrative Expenses in our Consolidated Statement of Operations and accrued a corresponding liability on our Consolidated Balance Sheet during the second quarter of 2023. Amounts payable to authorities pursuant to any potential final resolution could differ from the amount recorded in our consolidated financial statements. Based on available information to date, we do not expect any such difference would be material to our consolidated financial position. Indemnities We are indemnified by third parties in connection with certain matters related to acquired and divested businesses. Although we believe that the financial condition of those parties who may have indemnification obligations to the Company is generally sound, in the event the Company seeks indemnity under any of these agreements or through other means, there can be no assurance that any party who may have obligations to indemnify us will adhere to their obligations and we may have to resort to legal action to enforce our rights under the indemnities. The Company may be subject to indemnity claims relating to properties or businesses it divested, including properties or businesses of acquired businesses that were divested prior to the completion of the acquisition. In the opinion of management, and based upon information currently available, the ultimate resolution of any indemnification obligations owed to the Company or by the Company is not expected to have a material effect on the Company’s financial condition, results of operations or cash flows. The Company had approximately $29.6 million and $66.1 million at June 30, 2023 and December 31, 2022, respectively, recorded in Other noncurrent liabilities, primarily related to the indemnification of certain income and non-income tax liabilities associated with the Chemetall Surface Treatment entities sold in 2017. Other We have contracts with certain of our customers which serve as guarantees on product delivery and performance according to customer specifications that can cover both shipments on an individual basis, as well as blanket coverage of |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases: We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides details of our lease contracts for the three-month and six-month periods ended June 30, 2023 and 2022 (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease cost $ 14,311 $ 10,590 $ 26,062 $ 21,201 Finance lease cost: Amortization of right of use assets 1,935 972 2,780 1,402 Interest on lease liabilities 1,635 840 2,694 1,693 Total finance lease cost 3,570 1,812 5,474 3,095 Short-term lease cost 4,860 3,271 9,920 5,970 Variable lease cost 4,766 1,914 8,275 2,631 Total lease cost $ 27,507 $ 17,587 $ 49,731 $ 32,897 Supplemental cash flow information related to our lease contracts for the six-month periods ended June 30, 2023 and 2022 is as follows (in thousands): Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 24,816 $ 17,539 Operating cash flows from finance leases 2,400 1,185 Financing cash flows from finance leases 1,081 661 Right-of-use assets obtained in exchange for lease obligations: Operating leases 30,581 1,560 Finance leases 46,773 — Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at June 30, 2023 and December 31, 2022 is as follows (in thousands, except as noted): June 30, 2023 December 31, 2022 Operating leases: Other assets $ 138,278 $ 128,173 Accrued expenses 36,750 35,515 Other noncurrent liabilities 111,652 99,269 Total operating lease liabilities 148,402 134,784 Finance leases: Net property, plant and equipment 125,304 81,356 Current portion of long-term debt (a) 9,370 4,995 Long-term debt 115,806 74,409 Total finance lease liabilities 125,176 79,404 Weighted average remaining lease term (in years): Operating leases 11.8 13.3 Finance leases 21.5 22.8 Weighted average discount rate (%): Operating leases 4.32 % 3.60 % Finance leases 4.65 % 4.41 % (a) Balance includes accrued interest of finance lease recorded in Accrued liabilities. Maturities of lease liabilities at June 30, 2023 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2023 $ 23,714 $ 6,625 2024 32,442 12,998 2025 20,563 9,872 2026 16,535 9,215 2027 14,385 9,215 Thereafter 114,078 148,691 Total lease payments 221,717 196,616 Less imputed interest 73,315 71,440 Total $ 148,402 $ 125,176 |
Leases | Leases: We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides details of our lease contracts for the three-month and six-month periods ended June 30, 2023 and 2022 (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease cost $ 14,311 $ 10,590 $ 26,062 $ 21,201 Finance lease cost: Amortization of right of use assets 1,935 972 2,780 1,402 Interest on lease liabilities 1,635 840 2,694 1,693 Total finance lease cost 3,570 1,812 5,474 3,095 Short-term lease cost 4,860 3,271 9,920 5,970 Variable lease cost 4,766 1,914 8,275 2,631 Total lease cost $ 27,507 $ 17,587 $ 49,731 $ 32,897 Supplemental cash flow information related to our lease contracts for the six-month periods ended June 30, 2023 and 2022 is as follows (in thousands): Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 24,816 $ 17,539 Operating cash flows from finance leases 2,400 1,185 Financing cash flows from finance leases 1,081 661 Right-of-use assets obtained in exchange for lease obligations: Operating leases 30,581 1,560 Finance leases 46,773 — Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at June 30, 2023 and December 31, 2022 is as follows (in thousands, except as noted): June 30, 2023 December 31, 2022 Operating leases: Other assets $ 138,278 $ 128,173 Accrued expenses 36,750 35,515 Other noncurrent liabilities 111,652 99,269 Total operating lease liabilities 148,402 134,784 Finance leases: Net property, plant and equipment 125,304 81,356 Current portion of long-term debt (a) 9,370 4,995 Long-term debt 115,806 74,409 Total finance lease liabilities 125,176 79,404 Weighted average remaining lease term (in years): Operating leases 11.8 13.3 Finance leases 21.5 22.8 Weighted average discount rate (%): Operating leases 4.32 % 3.60 % Finance leases 4.65 % 4.41 % (a) Balance includes accrued interest of finance lease recorded in Accrued liabilities. Maturities of lease liabilities at June 30, 2023 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2023 $ 23,714 $ 6,625 2024 32,442 12,998 2025 20,563 9,872 2026 16,535 9,215 2027 14,385 9,215 Thereafter 114,078 148,691 Total lease payments 221,717 196,616 Less imputed interest 73,315 71,440 Total $ 148,402 $ 125,176 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information:Effective January 1, 2023, the Company realigned its Lithium and Bromine global business units into a new corporate structure designed to better meet customer needs and foster talent required to deliver in a competitive global environment. In addition, the Company announced its decision to retain its Catalysts business under a separate, wholly-owned subsidiary renamed Ketjen. As a result, the Company’s three reportable segments include: (1) Energy Storage; (2) Specialties; and (3) Ketjen. Each segment has a dedicated team of sales, research and development, process engineering, manufacturing and sourcing, and business strategy personnel and has full accountability for improving execution through greater asset and market focus, agility and responsiveness. This business structure aligns with the markets and customers we serve through each of the segments. This structure also facilitates the continued standardization of business processes across the organization, and is consistent with the manner in which information is presently used internally by the Company’s chief operating decision maker to evaluate performance and make resource allocation decisions. The segment information for the prior year period been recast to conform to the current year presentation. The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the operating segments. Pension and other post-employment benefit (“OPEB”) service cost (which represents the benefits earned by active employees during the period) and amortization of prior service cost or benefit are allocated to the reportable segments and Corporate, whereas the remaining components of pension and OPEB benefits cost or credit (“Non-operating pension and OPEB items”) are included in Corporate. Segment data includes inter-segment transfers of raw materials at cost and allocations for certain corporate costs. The Company’s chief operating decision maker uses adjusted EBITDA (as defined below) to assess the ongoing performance of the Company’s business segments and to allocate resources. The Company defines adjusted EBITDA as earnings before interest and financing expenses, income tax expenses, depreciation and amortization, as adjusted on a consistent basis for certain non-operating, non-recurring or unusual items in a balanced manner and on a segment basis. These non-operating, non-recurring or unusual items may include acquisition and integration related costs, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, certain litigation and arbitration costs and charges, non-operating pension and OPEB items and other significant non-recurring items. In addition, management uses adjusted EBITDA for business and enterprise planning purposes and as a significant component in the calculation of performance-based compensation for management and other employees. The Company has reported adjusted EBITDA because management believes it provides additional useful measurements to review the Company’s operations, provides transparency to investors and enables period-to-period comparability of financial performance. Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, U.S. GAAP. Adjusted EBITDA should not be considered as an alternative to Net (loss) income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP, or any other financial measure reported in accordance with U.S. GAAP. Segment information for the three-month and six-month periods ended June 30, 2023 and 2022 were as follows (in thousands). Prior period amounts have been recast to reflect the current segment structure. Three Months Ended Six Months Ended 2023 2022 2023 2022 Net sales: Energy Storage $ 1,763,065 $ 802,393 $ 3,706,747 $ 1,266,097 Specialties 371,302 466,875 790,080 913,022 Ketjen 235,823 210,325 453,615 428,202 Total net sales $ 2,370,190 $ 1,479,593 $ 4,950,442 $ 2,607,321 Adjusted EBITDA: Energy Storage $ 932,023 $ 483,517 $ 2,338,204 $ 768,764 Specialties 60,200 147,374 222,358 299,976 Ketjen 42,882 9,792 57,425 26,702 Total segment adjusted EBITDA 1,035,105 640,683 2,617,987 1,095,442 Corporate (2,839) (30,474) 9,998 (53,303) Total adjusted EBITDA $ 1,032,266 $ 610,209 $ 2,627,985 $ 1,042,139 Depreciation and amortization: Energy Storage $ 56,540 $ 38,814 $ 108,702 $ 73,860 Specialties 21,299 16,910 41,191 33,063 Ketjen 13,084 13,175 26,227 26,096 Corporate 2,162 2,094 4,236 4,548 Total depreciation and amortization $ 93,085 $ 70,993 $ 180,356 $ 137,567 See below for a reconciliation of total segment adjusted EBITDA to the companies consolidated Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Total segment adjusted EBITDA $ 1,035,105 $ 640,683 $ 2,617,987 $ 1,095,442 Corporate expenses, net (2,839) (30,474) 9,998 (53,303) Depreciation and amortization (93,085) (70,993) (180,356) (137,567) Interest and financing expenses (a) (25,577) (41,409) (52,354) (69,243) Income tax expense (42,987) (89,018) (319,950) (169,548) Loss on sale of interest in properties, net (b) — — — (8,400) Acquisition and integration related costs (c) (6,502) (5,375) (11,610) (7,099) Non-operating pension and OPEB items (612) 5,038 (1,213) 10,318 Mark-to-market gain on public equity securities (d) 15,020 — 60,846 — Legal accrual (e) (218,510) — (218,510) — Other (f) (9,970) (1,679) (16,215) (444) Net income attributable to Albemarle Corporation $ 650,043 $ 406,773 $ 1,888,623 $ 660,156 (a) Included in Interest and financing expenses for the three and six months ended June 30, 2022 was a loss on early extinguishment of debt of $19.2 million following the May 2022 repayment of Senior Notes due in 2024. In addition, Interest and financing expenses for the six months ended June 30, 2022 is the correction of an out of period error of $17.5 million related to the overstatement of capitalized interest in prior periods. (b) Expense recorded as a result of revised estimates of the obligation to construct certain lithium hydroxide conversion assets in Kemerton, Western Australia, due to cost overruns from supply chain, labor and COVID-19 pandemic related issues. The corresponding obligation was recorded in Accrued liabilities to be transferred to MRL, which maintains a 40% ownership interest in these Kemerton assets. (c) Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in Selling, general and administrative expenses (“SG&A”). (d) Gain recorded in Other income, net for the three and six months ended June 30, 2023, resulting from the increase in fair value of investments in public equity securities. (e) Accrual recorded in SG&A for the agreements in principle to resolve a previously disclosed legal matter with the DOJ, SEC and DPP. See Note 9, “Commitments and Contingencies,” for further details. (f) Included amounts for the three months ended June 30, 2023 recorded in: • SG&A - $7.4 million of severance costs in the Ketjen business which are primarily expected to be paid out during 2023, $0.7 million of facility closure expenses related to offices in Germany and $0.6 million primarily related to shortfall contributions for a multiemployer plan financial improvement plan. • Other income, net - $3.9 million of a loss resulting from the adjustment of indemnification related to previously disposed businesses, partially offset by a $2.7 million gain in the fair value of preferred equity of a Grace subsidiary. Included amounts for the three months ended June 30, 2022 recorded in: • Cost of goods sold - $0.5 million of expense related to the settlement of a legal matter resulting from a prior acquisition. • SG&A - $1.1 million primarily related to facility closure expenses of offices in Germany. Included amounts for the six months ended June 30, 2023 recorded in: • SG&A - $7.4 million of severance costs in the Ketjen business which are primarily expected to be paid out during 2023, $1.9 million of charges primarily for environmental reserves at sites not part of our operations, $1.4 million of facility closure expenses related to offices in Germany and $0.6 million primarily related to shortfall contributions for a multiemployer plan financial improvement plan. • Other income, net - $3.9 million of a loss resulting from the adjustment of indemnification related to previously disposed businesses and $3.6 million of charges for asset retirement obligations at a site not part of our operations, partially offset by a $2.7 million gain in the fair value of preferred equity of a Grace subsidiary. Included amounts for the six months ended June 30, 2022 recorded in: • Cost of goods sold - $0.5 million of expense related to the settlement of a legal matter resulting from a prior acquisition. • SG&A - $4.3 million of gains from the sale of legacy properties not part of our operations, partially offset by $2.8 million of charges for environmental reserves at sites not part of our operations and $1.1 million of facility closure expenses related to offices in Germany. • Other income, net - $0.6 million gain related to a settlement received from a legal matter in a prior period. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits: The components of pension and postretirement benefits cost (credit) for the three-month and six-month periods ended June 30, 2023 and 2022 were as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Pension Benefits Cost (Credit): Service cost $ 1,334 $ 970 $ 2,655 $ 1,955 Interest cost 8,558 5,568 17,100 11,173 Expected return on assets (8,415) (10,932) (16,824) (22,144) Amortization of prior service benefit 21 23 41 47 Total net pension benefits cost (credit) $ 1,498 $ (4,371) $ 2,972 $ (8,969) Postretirement Benefits Cost: Service cost $ 12 $ 22 $ 24 $ 43 Interest cost 469 326 937 653 Total net postretirement benefits cost $ 481 $ 348 $ 961 $ 696 Total net pension and postretirement benefits cost (credit) $ 1,979 $ (4,023) $ 3,933 $ (8,273) All components of net benefit cost (credit), other than service cost, are included in Other income, net on the consolidated statements of income. During the three-month and six-month periods ended June 30, 2023, the Company made contributions of $5.8 million and $8.6 million to its qualified and nonqualified pension plans, and the U.S. postretirement benefit plan. During the three-month and six-month periods ended June 30, 2022 the Company made contributions of $3.8 million and $7.7 million, respectively, to its qualified and nonqualified pension plans, and the U.S. postretirement benefit plan. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: In assessing the fair value of financial instruments, we use methods and assumptions that are based on market conditions and other risk factors existing at the time of assessment. Fair value information for our financial instruments is as follows: Long-Term Debt—the fair values of our notes are estimated using Level 1 inputs and account for the difference between the recorded amount and fair value of our long-term debt. The carrying value of our remaining long-term debt reported in the accompanying consolidated balance sheets approximates fair value as substantially all of such debt bears interest based on prevailing variable market rates currently available in the countries in which we have borrowings. June 30, 2023 December 31, 2022 Recorded Fair Value Recorded Fair Value (In thousands) Long-term debt $ 3,536,838 $ 3,331,991 $ 3,239,853 $ 2,993,027 Foreign Currency Forward Contracts—during the fourth quarter of 2019, we entered into a foreign currency forward contract to hedge the cash flow exposure of non-functional currency purchases during the construction of the Kemerton plant in Australia. This derivative financial instrument is used to manage risk and is not used for trading or other speculative purposes. This foreign currency forward contract has been designated as a hedging instrument under ASC 815, Derivatives and Hedging . We had outstanding designated foreign currency forward contracts with notional values totaling the equivalent of $1.1 billion and $64.5 million at June 30, 2023 and December 31, 2022, respectively. We also enter into foreign currency forward contracts in connection with our risk management strategies that have not been designated as hedging instruments under ASC 815, Derivatives and Hedging , in an attempt to minimize the financial impact of changes in foreign currency exchange rates. These derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. The fair values of our non-designated foreign currency forward contracts are estimated based on current settlement values. At June 30, 2023 and December 31, 2022, we had outstanding non-designated foreign currency forward contracts with notional values totaling $6.7 billion and $2.8 billion, respectively, hedging our exposure to various currencies including the Chinese Renminbi, Euro, Australian Dollar, Chilean Peso and Japanese Yen. The following table summarizes the fair value of our foreign currency forward contracts included in the consolidated balance sheets as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Designated as hedging instruments Other current assets $ 281 $ — $ — $ — Other assets 888 — — — Accrued expenses — 31 — 3,159 Other noncurrent liabilities — 94 — — Total designated as hedging instruments 1,169 125 — 3,159 Not designated as hedging instruments Other current assets 25,383 — 6,016 — Accrued expenses — 257 — 85 Total not designated as hedging instruments 25,383 257 6,016 85 Total $ 26,552 $ 382 $ 6,016 $ 3,244 The following table summarizes the net gains (losses) recognized for our foreign currency forward contracts during the three-month and six-month periods ended June 30, 2023 and 2022 (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Designated as hedging instruments Income (loss) recognized in Other comprehensive income $ 1,026 $ (2,508) $ 2,127 $ 1,509 Not designated as hedging instruments Income (loss) recognized in Other income, net (a) $ 208,174 $ (23,298) $ 243,407 $ (27,270) (a) Fluctuations in the value of our foreign currency forward contracts not designated as hedging instruments are generally expected to be offset by changes in the value of the underlying exposures being hedged, which are also reported in Other income, net. In addition, for the six-month periods ended June 30, 2023 and 2022, we recorded net cash receipts of $224.2 million and $19.8 million, respectively, in Other, net, in our condensed consolidated statements of cash flows. Unrealized gains and losses related to the cash flow hedges will be reclassified to earnings over the life of the related assets when settled and the related assets are placed into service. The counterparties to our foreign currency forward contracts are major financial institutions with which we generally have other financial relationships. We are exposed to credit loss in the event of nonperformance by these counterparties. However, we do not anticipate nonperformance by the counterparties. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement: Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Quoted Prices in Active Markets for Identical Items (Level 1) Quoted Prices in Active Markets for Similar Items (Level 2) Unobservable Inputs (Level 3) Assets: Available for sale debt securities (a) $ 272,700 $ — $ — $ 272,700 Investments under executive deferred compensation plan (b) $ 29,933 $ 29,933 $ — $ — Public equity securities (c) $ 194,724 $ 194,724 $ — $ — Private equity securities measured at net asset value (d)(e) $ 6,390 $ — $ — $ — Foreign currency forward contracts (f) $ 26,552 $ — $ 26,552 $ — Liabilities: Obligations under executive deferred compensation plan (b) $ 29,933 $ 29,933 $ — $ — Foreign currency forward contracts (f) $ 382 $ — $ 382 $ — December 31, 2022 Quoted Prices in Active Markets for Identical Items (Level 1) Quoted Prices in Active Markets for Similar Items (Level 2) Unobservable Inputs (Level 3) Assets: Available for sale debt securities (a) $ 260,139 $ — $ — $ 260,139 Investments under executive deferred compensation plan (b) $ 27,270 $ 27,270 $ — $ — Public equity securities (c) $ 5,890 $ 5,890 $ — $ — Private equity securities measured at net asset value (d)(e) $ 6,375 $ — $ — $ — Foreign currency forward contracts (f) $ 6,016 $ — $ 6,016 $ — Liabilities: Obligations under executive deferred compensation plan (b) $ 27,270 $ 27,270 $ — $ — Foreign currency forward contracts (f) $ 3,244 $ — $ 3,244 $ — (a) Preferred equity of a Grace subsidiary acquired as a portion of the proceeds of the FCS sale on June 1, 2021. A third-party estimate of the fair value was prepared using expected future cash flows over the period up to when the asset is likely to be redeemed, applying a discount rate that appropriately captures a market participant's view of the risk associated with the investment. These are considered to be Level 3 inputs. (b) We maintain an Executive Deferred Compensation Plan (“EDCP”) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1. (c) Holdings in equity securities of public companies reported in Investments in the consolidated balance sheets. The fair value is measured using publicly available share prices of the investments, with any changes reported in Other income, net in our consolidated statements of income. During the six-month period ended June 30, 2023, the Company purchased approximately $121.9 million of shares in a publicly-traded company. In addition, the Company recorded a mark-to-market gain of $15.0 million and $60.8 million on all public equity securities during the three- and six-month periods ended June 30, 2023 in Other income, net. (d) Primarily consists of private equity securities reported in Investments in the consolidated balance sheets. The changes in fair value are reported in Other income, net in our consolidated statements of income. (e) Holdings in certain private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. (f) As a result of our global operating and financing activities, we are exposed to market risks from changes in foreign currency exchange rates which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from foreign currency exchange rate fluctuations through the use of foreign currency forward contracts. The foreign currency forward contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2. See Note 13, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts. The following tables set forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements (in thousands): Available for Sale Debt Securities Beginning balance at December 31, 2022 $ 260,139 Fair value adjustment 7,255 Accretion of discount 5,306 Ending balance at June 30, 2023 $ 272,700 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income: The components and activity in Accumulated other comprehensive (loss) income (net of deferred income taxes) consisted of the following during the periods indicated below (in thousands): Foreign Currency Translation and Other Cash Flow Hedge (a) Interest Rate Swap (b) Total Three months ended June 30, 2023 Balance at March 31, 2023 $ (516,662) $ 3,325 $ — $ (513,337) Other comprehensive (loss) income before reclassifications (5,652) 1,026 — (4,626) Amounts reclassified from accumulated other comprehensive loss 17 — — 17 Other comprehensive (loss) income, net of tax (5,635) 1,026 — (4,609) Other comprehensive income attributable to noncontrolling interests — — — — Balance at June 30, 2023 $ (522,297) $ 4,351 $ — $ (517,946) Three months ended June 30, 2022 Balance at March 31, 2022 $ (397,510) $ 10,640 $ (6,749) $ (393,619) Other comprehensive loss before reclassifications (117,840) (2,509) — (120,349) Amounts reclassified from accumulated other comprehensive loss 19 — 6,749 6,768 Other comprehensive (loss) income, net of tax (117,821) (2,509) 6,749 (113,581) Other comprehensive loss attributable to noncontrolling interests 62 — — 62 Balance at June 30, 2022 $ (515,269) $ 8,131 $ — $ (507,138) Six months ended June 30, 2023 Balance at December 31, 2022 $ (562,886) $ 2,224 $ — $ (560,662) Other comprehensive income before reclassifications 40,548 2,127 — 42,675 Amounts reclassified from accumulated other comprehensive loss 33 — — 33 Other comprehensive income, net of tax 40,581 2,127 — 42,708 Other comprehensive income attributable to noncontrolling interests 8 — — 8 Balance at June 30, 2023 $ (522,297) $ 4,351 $ — $ (517,946) Six months ended June 30, 2022 Balance at December 31, 2021 $ (391,674) $ 6,623 $ (7,399) $ (392,450) Other comprehensive (loss) income before reclassifications (123,749) 1,508 — (122,241) Amounts reclassified from accumulated other comprehensive loss 39 — 7,399 7,438 Other comprehensive (loss) income, net of tax (123,710) 1,508 7,399 (114,803) Other comprehensive income attributable to noncontrolling interests 115 — — 115 Balance at June 30, 2022 $ (515,269) $ 8,131 $ — $ (507,138) (a) We entered into a foreign currency forward contract, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging . See Note 14, “Fair Value of Financial Instruments,” for additional information. (b) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. The balance of this interest rate swap was being amortized to Interest and financing expenses over the life of the 4.15% senior notes originally due in 2024. In the second quarter of 2022, the Company repaid these notes, and as a result, reclassified the remaining balance of this interest rate swap to interest expense during the same period as part of an early extinguishment of debt. The amount of income tax expense allocated to each component of Other comprehensive income (loss) for the three-month and six-month periods ended June 30, 2023 and 2022 is provided in the following tables (in thousands): Foreign Currency Translation and Other Cash Flow Hedge Interest Rate Swap Total Three months ended June 30, 2023 Other comprehensive (loss) income, before tax $ (5,631) $ 1,026 $ — $ (4,605) Income tax expense (4) — — (4) Other comprehensive (loss) income, net of tax $ (5,635) $ 1,026 $ — $ (4,609) Three months ended June 30, 2022 Other comprehensive (loss) income, before tax $ (118,431) $ (2,509) $ 8,905 $ (112,035) Income tax benefit 610 — (2,156) (1,546) Other comprehensive (loss) income, net of tax $ (117,821) $ (2,509) $ 6,749 $ (113,581) Six months ended June 30, 2023 Other comprehensive income, before tax $ 40,347 $ 2,127 $ — $ 42,474 Income tax benefit 234 — — 234 Other comprehensive income, net of tax $ 40,581 $ 2,127 $ — $ 42,708 Six months ended June 30, 2022 Other comprehensive (loss) income, before tax $ (124,889) $ 1,508 $ 9,739 $ (113,642) Income tax benefit (expense) 1,179 — (2,340) (1,161) Other comprehensive (loss) income, net of tax $ (123,710) $ 1,508 $ 7,399 $ (114,803) |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions: Our consolidated statements of income include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Sales to unconsolidated affiliates $ 3,673 $ 7,214 $ 10,773 $ 14,869 Purchases from unconsolidated affiliates (a)(b) $ 1,114,944 $ 314,886 $ 2,187,488 $ 531,440 (a) Purchases from unconsolidated affiliates primarily relate to spodumene purchased from the Company’s Windfield joint venture. (b) Cost of goods sold on the consolidated statements of income included purchases from related unconsolidated affiliates of $421.0 million and $97.6 million during the three-month periods ended June 30, 2023 and 2022, respectively, and $774.2 million and $158.6 million for the six-month periods ended June 30, 2023 and 2022, respectively. Our consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands): June 30, 2023 December 31, 2022 Receivables from unconsolidated affiliates $ 14,724 $ 21,495 Payables to unconsolidated affiliates (a) $ 1,092,398 $ 518,377 (a) Payables to unconsolidated affiliates primarily relate spodumene purchased from the Company’s Windfield joint venture under normal payment terms. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information: Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands): Six Months Ended 2023 2022 Supplemental non-cash disclosure related to investing and financing activities: Capital expenditures included in Accounts payable $ 408,998 $ 222,533 Promissory note issued for capital expenditures (a) $ — $ 10,876 (a) During 2022, the Company issued a promissory note with a present value of $10.9 million for land purchased in Kings Mountain, NC. The promissory note is payable in equal annual installments from the years 2027 to 2048. As part of the purchase price paid for the acquisition of a 60% interest in the MRL Wodgina Project, the Company transferred $11.6 million and $96.3 million of its construction in progress of the designated Kemerton assets during the six months ended June 30, 2023 and 2022, respectively, representing MRL’s 40% interest in the assets. The cash outflow for these assets was recorded in Capital expenditures within Cash flows from investing activities on the condensed consolidated statements of cash flows. The non-cash transfer of these assets is recorded in Non-cash transfer of 40% value of construction in progress of the Kemerton plant to MRL within Cash flows from operating activities on the consolidated statements of cash flows. Other, net within Cash flows from operating activities on the condensed consolidated statements of cash flows for the six-month periods ended June 30, 2023 and 2022 included $64.4 million and $42.5 million, respectively, representing the reclassification of the current portion of the one-time transition tax resulting from the enactment of the U.S. Tax Cuts and Jobs Act, from Other noncurrent liabilities to Income taxes payable within current liabilities. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In March 2020, the Financial Accounting Standards Board (“FASB”) issued accounting guidance that provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued additional accounting guidance which clarifies that certain optional expedients and exceptions apply to derivatives that are affected by the discounting transition. The guidance under both FASB issuances was originally effective March 12, 2020 through December 31, 2022. However, in December 2022, the FASB issued an update to defer the sunset date of this guidance to December 31, 2024. The Company currently does not expect this guidance to have a significant impact on its consolidated financial statements. In October 2021, the FASB issued guidance on how to recognize and measure acquired contract assets and liabilities from revenue contracts in a business combination, which requires the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers as if it had originated the contracts. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2022, including interim periods within those annual periods. This guidance does not currently, nor is it expected to, have a significant impact on its consolidated financial statements. In March 2022, the FASB issued accounting guidance that expands the Company’s abilities to hedge the benchmark interest rate risk of portfolios of financial assets or beneficial interests in a fair value hedge. This guidance expands the use of the portfolio layer method to allow multiple hedges of a single closed portfolio of assets using spot starting, forward starting, and amortizing-notional swaps. This also permits both prepayable and non prepayable financial assets to be included in the closed portfolio of assets hedged in a portfolio layer hedge. In addition, this guidance requires that basis adjustments not be allocated to individual assets for active portfolio layer method hedges, but rather be maintained on the closed portfolio of assets as a whole. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2022, including interim periods within those annual periods. This guidance does not currently, nor is it expected to, have a significant impact on its consolidated financial statements. In March 2023, the FASB issued guidance which requires the Company to amortize leasehold improvements associated with common control leases over the asset’s useful life to the common control group regardless of the lease term. This guidance |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | In March 2020, the Financial Accounting Standards Board (“FASB”) issued accounting guidance that provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued additional accounting guidance which clarifies that certain optional expedients and exceptions apply to derivatives that are affected by the discounting transition. The guidance under both FASB issuances was originally effective March 12, 2020 through December 31, 2022. However, in December 2022, the FASB issued an update to defer the sunset date of this guidance to December 31, 2024. The Company currently does not expect this guidance to have a significant impact on its consolidated financial statements. In October 2021, the FASB issued guidance on how to recognize and measure acquired contract assets and liabilities from revenue contracts in a business combination, which requires the acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers as if it had originated the contracts. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2022, including interim periods within those annual periods. This guidance does not currently, nor is it expected to, have a significant impact on its consolidated financial statements. In March 2022, the FASB issued accounting guidance that expands the Company’s abilities to hedge the benchmark interest rate risk of portfolios of financial assets or beneficial interests in a fair value hedge. This guidance expands the use of the portfolio layer method to allow multiple hedges of a single closed portfolio of assets using spot starting, forward starting, and amortizing-notional swaps. This also permits both prepayable and non prepayable financial assets to be included in the closed portfolio of assets hedged in a portfolio layer hedge. In addition, this guidance requires that basis adjustments not be allocated to individual assets for active portfolio layer method hedges, but rather be maintained on the closed portfolio of assets as a whole. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2022, including interim periods within those annual periods. This guidance does not currently, nor is it expected to, have a significant impact on its consolidated financial statements. In March 2023, the FASB issued guidance which requires the Company to amortize leasehold improvements associated with common control leases over the asset’s useful life to the common control group regardless of the lease term. This guidance |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earning Per Share | Basic and diluted earnings per share for the three-month and six-month periods ended June 30, 2023 and 2022 are calculated as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended 2023 2022 2023 2022 Basic earnings per share Numerator: Net income attributable to Albemarle Corporation $ 650,043 $ 406,773 $ 1,888,623 $ 660,156 Denominator: Weighted-average common shares for basic earnings per share 117,332 117,116 117,282 117,091 Basic earnings per share $ 5.54 $ 3.47 $ 16.10 $ 5.64 Diluted earnings per share Numerator: Net income attributable to Albemarle Corporation $ 650,043 $ 406,773 $ 1,888,623 $ 660,156 Denominator: Weighted-average common shares for basic earnings per share 117,332 117,116 117,282 117,091 Incremental shares under stock compensation plans 437 608 523 598 Weighted-average common shares for diluted earnings per share 117,769 117,724 117,805 117,689 Diluted earnings per share $ 5.52 $ 3.46 $ 16.03 $ 5.61 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Breakdown of Inventories | The following table provides a breakdown of inventories at June 30, 2023 and December 31, 2022 (in thousands): June 30, December 31, 2023 2022 Finished goods $ 3,164,540 $ 1,679,473 Raw materials and work in process (a) 378,463 296,998 Stores, supplies and other 115,620 99,560 Total $ 3,658,623 $ 2,076,031 (a) Includes $174.1 million and $133.2 million at June 30, 2023 and December 31, 2022, respectively, of work in process in our Energy Storage segment. |
Investments, Debt and Equity Se
Investments, Debt and Equity Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule Of Assets Liabilities And Results Of Operations For Unconsolidated Joint Ventures | The following table summarizes the unaudited results of operations for the Talison joint venture, which met the significant subsidiary test for subsidiaries not consolidated or 50% or less owned persons under Rule 10-01 of Regulation S-X, for the three-month periods ended June 30, 2023 and 2022 (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net sales $ 2,319,020 $ 626,692 $ 4,278,318 $ 1,019,525 Gross profit 2,244,236 567,660 4,145,936 922,102 Income before income taxes 2,151,879 453,370 3,936,029 745,922 Net income 1,506,326 317,363 2,755,228 522,150 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table summarizes the changes in goodwill by reportable segment for the six months ended June 30, 2023 (in thousands): Energy Storage Specialties Ketjen Total Balance at December 31, 2022 $ 1,424,275 $ 20,319 $ 173,033 $ 1,617,627 Segment realignment (a) (12,316) 12,316 — — Foreign currency translation adjustments and other 12,124 — 5,072 17,196 Balance at June 30, 2023 $ 1,424,083 $ 32,635 $ 178,105 $ 1,634,823 (a) Effective January 1, 2023, the Company realigned its Lithium and Bromine reportable segments into the Energy Storage and Specialties reportable segments. See Note 11, “Segment Information,” for additional details. As a result, the Company transferred goodwill from its legacy Lithium segment to the new Specialties reportable segment during the six months ended June 30, 2023. |
Other Intangibles | The following table summarizes the changes in other intangibles and related accumulated amortization for the six months ended June 30, 2023 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2022 $ 412,670 $ 13,161 $ 46,399 $ 35,186 $ 507,416 Foreign currency translation adjustments and other 2,885 310 (517) 196 2,874 Balance at June 30, 2023 $ 415,555 $ 13,471 $ 45,882 $ 35,382 $ 510,290 Accumulated Amortization Balance at December 31, 2022 $ (177,627) $ (3,587) $ (23,790) $ (14,542) $ (219,546) Amortization (13,063) — (1,307) (489) (14,859) Foreign currency translation adjustments and other (1,173) (69) (192) (42) (1,476) Balance at June 30, 2023 $ (191,863) $ (3,656) $ (25,289) $ (15,073) $ (235,881) Net Book Value at December 31, 2022 $ 235,043 $ 9,574 $ 22,609 $ 20,644 $ 287,870 Net Book Value at June 30, 2023 $ 223,692 $ 9,815 $ 20,593 $ 20,309 $ 274,409 (a) Net Book Value includes only indefinite-lived intangible assets. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt at June 30, 2023 and December 31, 2022 consisted of the following (in thousands): June 30, December 31, 2023 2022 1.125% notes due 2025 $ 413,371 $ 401,265 1.625% notes due 2028 548,050 532,000 3.45% Senior notes due 2029 171,612 171,612 4.65% Senior notes due 2027 650,000 650,000 5.05% Senior notes due 2032 600,000 600,000 5.45% Senior notes due 2044 350,000 350,000 5.65% Senior notes due 2052 450,000 450,000 Variable-rate foreign bank loans 2,776 2,997 Finance lease obligations 122,053 76,537 Other 311,641 11,378 Unamortized discount and debt issuance costs (103,967) (28,689) Total long-term debt 3,515,536 3,217,100 Less amounts due within one year 6,247 2,128 Long-term debt, less current portion $ 3,509,289 $ 3,214,972 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity in Recorded Environmental Liabilities | The following activity was recorded in environmental liabilities for the six months ended June 30, 2023 (in thousands): Beginning balance at December 31, 2022 $ 38,245 Expenditures (1,769) Accretion of discount 573 Additions and changes in estimates 1,869 Foreign currency translation adjustments and other 629 Ending balance at June 30, 2023 39,547 Less amounts reported in Accrued expenses 7,909 Amounts reported in Other noncurrent liabilities $ 31,638 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease, Cost | The following table provides details of our lease contracts for the three-month and six-month periods ended June 30, 2023 and 2022 (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Operating lease cost $ 14,311 $ 10,590 $ 26,062 $ 21,201 Finance lease cost: Amortization of right of use assets 1,935 972 2,780 1,402 Interest on lease liabilities 1,635 840 2,694 1,693 Total finance lease cost 3,570 1,812 5,474 3,095 Short-term lease cost 4,860 3,271 9,920 5,970 Variable lease cost 4,766 1,914 8,275 2,631 Total lease cost $ 27,507 $ 17,587 $ 49,731 $ 32,897 Supplemental cash flow information related to our lease contracts for the six-month periods ended June 30, 2023 and 2022 is as follows (in thousands): Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 24,816 $ 17,539 Operating cash flows from finance leases 2,400 1,185 Financing cash flows from finance leases 1,081 661 Right-of-use assets obtained in exchange for lease obligations: Operating leases 30,581 1,560 Finance leases 46,773 — |
Supplemental Balance Sheet Information related to Leases | Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at June 30, 2023 and December 31, 2022 is as follows (in thousands, except as noted): June 30, 2023 December 31, 2022 Operating leases: Other assets $ 138,278 $ 128,173 Accrued expenses 36,750 35,515 Other noncurrent liabilities 111,652 99,269 Total operating lease liabilities 148,402 134,784 Finance leases: Net property, plant and equipment 125,304 81,356 Current portion of long-term debt (a) 9,370 4,995 Long-term debt 115,806 74,409 Total finance lease liabilities 125,176 79,404 Weighted average remaining lease term (in years): Operating leases 11.8 13.3 Finance leases 21.5 22.8 Weighted average discount rate (%): Operating leases 4.32 % 3.60 % Finance leases 4.65 % 4.41 % (a) Balance includes accrued interest of finance lease recorded in Accrued liabilities. |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities at June 30, 2023 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2023 $ 23,714 $ 6,625 2024 32,442 12,998 2025 20,563 9,872 2026 16,535 9,215 2027 14,385 9,215 Thereafter 114,078 148,691 Total lease payments 221,717 196,616 Less imputed interest 73,315 71,440 Total $ 148,402 $ 125,176 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities at June 30, 2023 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2023 $ 23,714 $ 6,625 2024 32,442 12,998 2025 20,563 9,872 2026 16,535 9,215 2027 14,385 9,215 Thereafter 114,078 148,691 Total lease payments 221,717 196,616 Less imputed interest 73,315 71,440 Total $ 148,402 $ 125,176 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segments Summarized Financial Information | Segment information for the three-month and six-month periods ended June 30, 2023 and 2022 were as follows (in thousands). Prior period amounts have been recast to reflect the current segment structure. Three Months Ended Six Months Ended 2023 2022 2023 2022 Net sales: Energy Storage $ 1,763,065 $ 802,393 $ 3,706,747 $ 1,266,097 Specialties 371,302 466,875 790,080 913,022 Ketjen 235,823 210,325 453,615 428,202 Total net sales $ 2,370,190 $ 1,479,593 $ 4,950,442 $ 2,607,321 Adjusted EBITDA: Energy Storage $ 932,023 $ 483,517 $ 2,338,204 $ 768,764 Specialties 60,200 147,374 222,358 299,976 Ketjen 42,882 9,792 57,425 26,702 Total segment adjusted EBITDA 1,035,105 640,683 2,617,987 1,095,442 Corporate (2,839) (30,474) 9,998 (53,303) Total adjusted EBITDA $ 1,032,266 $ 610,209 $ 2,627,985 $ 1,042,139 Depreciation and amortization: Energy Storage $ 56,540 $ 38,814 $ 108,702 $ 73,860 Specialties 21,299 16,910 41,191 33,063 Ketjen 13,084 13,175 26,227 26,096 Corporate 2,162 2,094 4,236 4,548 Total depreciation and amortization $ 93,085 $ 70,993 $ 180,356 $ 137,567 See below for a reconciliation of total segment adjusted EBITDA to the companies consolidated Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Total segment adjusted EBITDA $ 1,035,105 $ 640,683 $ 2,617,987 $ 1,095,442 Corporate expenses, net (2,839) (30,474) 9,998 (53,303) Depreciation and amortization (93,085) (70,993) (180,356) (137,567) Interest and financing expenses (a) (25,577) (41,409) (52,354) (69,243) Income tax expense (42,987) (89,018) (319,950) (169,548) Loss on sale of interest in properties, net (b) — — — (8,400) Acquisition and integration related costs (c) (6,502) (5,375) (11,610) (7,099) Non-operating pension and OPEB items (612) 5,038 (1,213) 10,318 Mark-to-market gain on public equity securities (d) 15,020 — 60,846 — Legal accrual (e) (218,510) — (218,510) — Other (f) (9,970) (1,679) (16,215) (444) Net income attributable to Albemarle Corporation $ 650,043 $ 406,773 $ 1,888,623 $ 660,156 (a) Included in Interest and financing expenses for the three and six months ended June 30, 2022 was a loss on early extinguishment of debt of $19.2 million following the May 2022 repayment of Senior Notes due in 2024. In addition, Interest and financing expenses for the six months ended June 30, 2022 is the correction of an out of period error of $17.5 million related to the overstatement of capitalized interest in prior periods. (b) Expense recorded as a result of revised estimates of the obligation to construct certain lithium hydroxide conversion assets in Kemerton, Western Australia, due to cost overruns from supply chain, labor and COVID-19 pandemic related issues. The corresponding obligation was recorded in Accrued liabilities to be transferred to MRL, which maintains a 40% ownership interest in these Kemerton assets. (c) Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in Selling, general and administrative expenses (“SG&A”). (d) Gain recorded in Other income, net for the three and six months ended June 30, 2023, resulting from the increase in fair value of investments in public equity securities. (e) Accrual recorded in SG&A for the agreements in principle to resolve a previously disclosed legal matter with the DOJ, SEC and DPP. See Note 9, “Commitments and Contingencies,” for further details. (f) Included amounts for the three months ended June 30, 2023 recorded in: • SG&A - $7.4 million of severance costs in the Ketjen business which are primarily expected to be paid out during 2023, $0.7 million of facility closure expenses related to offices in Germany and $0.6 million primarily related to shortfall contributions for a multiemployer plan financial improvement plan. • Other income, net - $3.9 million of a loss resulting from the adjustment of indemnification related to previously disposed businesses, partially offset by a $2.7 million gain in the fair value of preferred equity of a Grace subsidiary. Included amounts for the three months ended June 30, 2022 recorded in: • Cost of goods sold - $0.5 million of expense related to the settlement of a legal matter resulting from a prior acquisition. • SG&A - $1.1 million primarily related to facility closure expenses of offices in Germany. Included amounts for the six months ended June 30, 2023 recorded in: • SG&A - $7.4 million of severance costs in the Ketjen business which are primarily expected to be paid out during 2023, $1.9 million of charges primarily for environmental reserves at sites not part of our operations, $1.4 million of facility closure expenses related to offices in Germany and $0.6 million primarily related to shortfall contributions for a multiemployer plan financial improvement plan. • Other income, net - $3.9 million of a loss resulting from the adjustment of indemnification related to previously disposed businesses and $3.6 million of charges for asset retirement obligations at a site not part of our operations, partially offset by a $2.7 million gain in the fair value of preferred equity of a Grace subsidiary. Included amounts for the six months ended June 30, 2022 recorded in: • Cost of goods sold - $0.5 million of expense related to the settlement of a legal matter resulting from a prior acquisition. • SG&A - $4.3 million of gains from the sale of legacy properties not part of our operations, partially offset by $2.8 million of charges for environmental reserves at sites not part of our operations and $1.1 million of facility closure expenses related to offices in Germany. • Other income, net - $0.6 million gain related to a settlement received from a legal matter in a prior period. |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Domestic and Foreign Pension and Postretirement Defined Benefit Plans | The components of pension and postretirement benefits cost (credit) for the three-month and six-month periods ended June 30, 2023 and 2022 were as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Pension Benefits Cost (Credit): Service cost $ 1,334 $ 970 $ 2,655 $ 1,955 Interest cost 8,558 5,568 17,100 11,173 Expected return on assets (8,415) (10,932) (16,824) (22,144) Amortization of prior service benefit 21 23 41 47 Total net pension benefits cost (credit) $ 1,498 $ (4,371) $ 2,972 $ (8,969) Postretirement Benefits Cost: Service cost $ 12 $ 22 $ 24 $ 43 Interest cost 469 326 937 653 Total net postretirement benefits cost $ 481 $ 348 $ 961 $ 696 Total net pension and postretirement benefits cost (credit) $ 1,979 $ (4,023) $ 3,933 $ (8,273) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Long-Term Debt | The carrying value of our remaining long-term debt reported in the accompanying consolidated balance sheets approximates fair value as substantially all of such debt bears interest based on prevailing variable market rates currently available in the countries in which we have borrowings. June 30, 2023 December 31, 2022 Recorded Fair Value Recorded Fair Value (In thousands) Long-term debt $ 3,536,838 $ 3,331,991 $ 3,239,853 $ 2,993,027 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair value of our foreign currency forward contracts included in the consolidated balance sheets as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Designated as hedging instruments Other current assets $ 281 $ — $ — $ — Other assets 888 — — — Accrued expenses — 31 — 3,159 Other noncurrent liabilities — 94 — — Total designated as hedging instruments 1,169 125 — 3,159 Not designated as hedging instruments Other current assets 25,383 — 6,016 — Accrued expenses — 257 — 85 Total not designated as hedging instruments 25,383 257 6,016 85 Total $ 26,552 $ 382 $ 6,016 $ 3,244 |
Derivative Instruments, Losses | The following table summarizes the net gains (losses) recognized for our foreign currency forward contracts during the three-month and six-month periods ended June 30, 2023 and 2022 (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Designated as hedging instruments Income (loss) recognized in Other comprehensive income $ 1,026 $ (2,508) $ 2,127 $ 1,509 Not designated as hedging instruments Income (loss) recognized in Other income, net (a) $ 208,174 $ (23,298) $ 243,407 $ (27,270) (a) Fluctuations in the value of our foreign currency forward contracts not designated as hedging instruments are generally expected to be offset by changes in the value of the underlying exposures being hedged, which are also reported in Other income, net. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 Quoted Prices in Active Markets for Identical Items (Level 1) Quoted Prices in Active Markets for Similar Items (Level 2) Unobservable Inputs (Level 3) Assets: Available for sale debt securities (a) $ 272,700 $ — $ — $ 272,700 Investments under executive deferred compensation plan (b) $ 29,933 $ 29,933 $ — $ — Public equity securities (c) $ 194,724 $ 194,724 $ — $ — Private equity securities measured at net asset value (d)(e) $ 6,390 $ — $ — $ — Foreign currency forward contracts (f) $ 26,552 $ — $ 26,552 $ — Liabilities: Obligations under executive deferred compensation plan (b) $ 29,933 $ 29,933 $ — $ — Foreign currency forward contracts (f) $ 382 $ — $ 382 $ — December 31, 2022 Quoted Prices in Active Markets for Identical Items (Level 1) Quoted Prices in Active Markets for Similar Items (Level 2) Unobservable Inputs (Level 3) Assets: Available for sale debt securities (a) $ 260,139 $ — $ — $ 260,139 Investments under executive deferred compensation plan (b) $ 27,270 $ 27,270 $ — $ — Public equity securities (c) $ 5,890 $ 5,890 $ — $ — Private equity securities measured at net asset value (d)(e) $ 6,375 $ — $ — $ — Foreign currency forward contracts (f) $ 6,016 $ — $ 6,016 $ — Liabilities: Obligations under executive deferred compensation plan (b) $ 27,270 $ 27,270 $ — $ — Foreign currency forward contracts (f) $ 3,244 $ — $ 3,244 $ — (a) Preferred equity of a Grace subsidiary acquired as a portion of the proceeds of the FCS sale on June 1, 2021. A third-party estimate of the fair value was prepared using expected future cash flows over the period up to when the asset is likely to be redeemed, applying a discount rate that appropriately captures a market participant's view of the risk associated with the investment. These are considered to be Level 3 inputs. (b) We maintain an Executive Deferred Compensation Plan (“EDCP”) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1. (c) Holdings in equity securities of public companies reported in Investments in the consolidated balance sheets. The fair value is measured using publicly available share prices of the investments, with any changes reported in Other income, net in our consolidated statements of income. During the six-month period ended June 30, 2023, the Company purchased approximately $121.9 million of shares in a publicly-traded company. In addition, the Company recorded a mark-to-market gain of $15.0 million and $60.8 million on all public equity securities during the three- and six-month periods ended June 30, 2023 in Other income, net. (d) Primarily consists of private equity securities reported in Investments in the consolidated balance sheets. The changes in fair value are reported in Other income, net in our consolidated statements of income. (e) Holdings in certain private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. (f) As a result of our global operating and financing activities, we are exposed to market risks from changes in foreign currency exchange rates which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from foreign currency exchange rate fluctuations through the use of foreign currency forward contracts. The foreign currency forward contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2. See Note 13, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables set forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements (in thousands): Available for Sale Debt Securities Beginning balance at December 31, 2022 $ 260,139 Fair value adjustment 7,255 Accretion of discount 5,306 Ending balance at June 30, 2023 $ 272,700 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Components and Activity in Accumulated Other Comprehensive (Loss) Income Net of Deferred Income Taxes | The components and activity in Accumulated other comprehensive (loss) income (net of deferred income taxes) consisted of the following during the periods indicated below (in thousands): Foreign Currency Translation and Other Cash Flow Hedge (a) Interest Rate Swap (b) Total Three months ended June 30, 2023 Balance at March 31, 2023 $ (516,662) $ 3,325 $ — $ (513,337) Other comprehensive (loss) income before reclassifications (5,652) 1,026 — (4,626) Amounts reclassified from accumulated other comprehensive loss 17 — — 17 Other comprehensive (loss) income, net of tax (5,635) 1,026 — (4,609) Other comprehensive income attributable to noncontrolling interests — — — — Balance at June 30, 2023 $ (522,297) $ 4,351 $ — $ (517,946) Three months ended June 30, 2022 Balance at March 31, 2022 $ (397,510) $ 10,640 $ (6,749) $ (393,619) Other comprehensive loss before reclassifications (117,840) (2,509) — (120,349) Amounts reclassified from accumulated other comprehensive loss 19 — 6,749 6,768 Other comprehensive (loss) income, net of tax (117,821) (2,509) 6,749 (113,581) Other comprehensive loss attributable to noncontrolling interests 62 — — 62 Balance at June 30, 2022 $ (515,269) $ 8,131 $ — $ (507,138) Six months ended June 30, 2023 Balance at December 31, 2022 $ (562,886) $ 2,224 $ — $ (560,662) Other comprehensive income before reclassifications 40,548 2,127 — 42,675 Amounts reclassified from accumulated other comprehensive loss 33 — — 33 Other comprehensive income, net of tax 40,581 2,127 — 42,708 Other comprehensive income attributable to noncontrolling interests 8 — — 8 Balance at June 30, 2023 $ (522,297) $ 4,351 $ — $ (517,946) Six months ended June 30, 2022 Balance at December 31, 2021 $ (391,674) $ 6,623 $ (7,399) $ (392,450) Other comprehensive (loss) income before reclassifications (123,749) 1,508 — (122,241) Amounts reclassified from accumulated other comprehensive loss 39 — 7,399 7,438 Other comprehensive (loss) income, net of tax (123,710) 1,508 7,399 (114,803) Other comprehensive income attributable to noncontrolling interests 115 — — 115 Balance at June 30, 2022 $ (515,269) $ 8,131 $ — $ (507,138) (a) We entered into a foreign currency forward contract, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging . See Note 14, “Fair Value of Financial Instruments,” for additional information. (b) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. The balance of this interest rate swap was being amortized to Interest and financing expenses over the life of the 4.15% senior notes originally due in 2024. In the second quarter of 2022, the Company repaid these notes, and as a result, reclassified the remaining balance of this interest rate swap to interest expense during the same period as part of an early extinguishment of debt. |
Amount of Income Tax (Expense) Benefit Allocated to Component Of Other Comprehensive Income (Loss) | The amount of income tax expense allocated to each component of Other comprehensive income (loss) for the three-month and six-month periods ended June 30, 2023 and 2022 is provided in the following tables (in thousands): Foreign Currency Translation and Other Cash Flow Hedge Interest Rate Swap Total Three months ended June 30, 2023 Other comprehensive (loss) income, before tax $ (5,631) $ 1,026 $ — $ (4,605) Income tax expense (4) — — (4) Other comprehensive (loss) income, net of tax $ (5,635) $ 1,026 $ — $ (4,609) Three months ended June 30, 2022 Other comprehensive (loss) income, before tax $ (118,431) $ (2,509) $ 8,905 $ (112,035) Income tax benefit 610 — (2,156) (1,546) Other comprehensive (loss) income, net of tax $ (117,821) $ (2,509) $ 6,749 $ (113,581) Six months ended June 30, 2023 Other comprehensive income, before tax $ 40,347 $ 2,127 $ — $ 42,474 Income tax benefit 234 — — 234 Other comprehensive income, net of tax $ 40,581 $ 2,127 $ — $ 42,708 Six months ended June 30, 2022 Other comprehensive (loss) income, before tax $ (124,889) $ 1,508 $ 9,739 $ (113,642) Income tax benefit (expense) 1,179 — (2,340) (1,161) Other comprehensive (loss) income, net of tax $ (123,710) $ 1,508 $ 7,399 $ (114,803) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Our consolidated statements of income include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Sales to unconsolidated affiliates $ 3,673 $ 7,214 $ 10,773 $ 14,869 Purchases from unconsolidated affiliates (a)(b) $ 1,114,944 $ 314,886 $ 2,187,488 $ 531,440 (a) Purchases from unconsolidated affiliates primarily relate to spodumene purchased from the Company’s Windfield joint venture. (b) Cost of goods sold on the consolidated statements of income included purchases from related unconsolidated affiliates of $421.0 million and $97.6 million during the three-month periods ended June 30, 2023 and 2022, respectively, and $774.2 million and $158.6 million for the six-month periods ended June 30, 2023 and 2022, respectively. Our consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands): June 30, 2023 December 31, 2022 Receivables from unconsolidated affiliates $ 14,724 $ 21,495 Payables to unconsolidated affiliates (a) $ 1,092,398 $ 518,377 (a) Payables to unconsolidated affiliates primarily relate spodumene purchased from the Company’s Windfield joint venture under normal payment terms. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands): Six Months Ended 2023 2022 Supplemental non-cash disclosure related to investing and financing activities: Capital expenditures included in Accounts payable $ 408,998 $ 222,533 Promissory note issued for capital expenditures (a) $ — $ 10,876 (a) During 2022, the Company issued a promissory note with a present value of $10.9 million for land purchased in Kings Mountain, NC. The promissory note is payable in equal annual installments from the years 2027 to 2048. |
Business Combinations and Ass_2
Business Combinations and Asset Acquisitions (Details) $ in Thousands | Oct. 25, 2022 USD ($) metricTon | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,634,823 | $ 1,617,627 | |
Guangxi Tianyuan New Energy Materials Co Ltd | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 200,000 | ||
Deferred Payments to Acquire Businesses | $ 29,000 | ||
Designed Annual Conversion Capacity | metricTon | 25,000 | ||
Fair value of mineral reserves | $ 106,600 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 16,300 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 5,500 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | 7,100 | ||
Goodwill | $ 76,100 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 25.50% | 22.20% | 24.10% | 24.20% |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share From Continuing Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic earnings per share from continuing operations | ||||
Net income attributable to Albemarle Corporation | $ 650,043 | $ 406,773 | $ 1,888,623 | $ 660,156 |
Weighted-average common shares for basic earnings per share (in shares) | 117,332 | 117,116 | 117,282 | 117,091 |
Basic earnings per share (in dollars per share) | $ 5.54 | $ 3.47 | $ 16.10 | $ 5.64 |
Diluted earnings per share from continuing operations | ||||
Net income attributable to Albemarle Corporation | $ 650,043 | $ 406,773 | $ 1,888,623 | $ 660,156 |
Weighted-average common shares for basic earnings per share (in shares) | 117,332 | 117,116 | 117,282 | 117,091 |
Incremental shares under stock compensation plans (in shares) | 437 | 608 | 523 | 598 |
Weighted-average common shares outstanding - diluted (in shares) | 117,769 | 117,724 | 117,805 | 117,689 |
Diluted earnings per share (in dollars per share) | $ 5.52 | $ 3.46 | $ 16.03 | $ 5.61 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - $ / shares | 6 Months Ended | ||
Jun. 30, 2023 | Jul. 18, 2023 | May 02, 2023 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 51,316 | ||
Cash dividend, amount per share (in dollars per share) | $ 0.40 | ||
Subsequent Event | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Cash dividend, amount per share (in dollars per share) | $ 0.40 |
Inventories - Breakdown of inve
Inventories - Breakdown of inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 3,164,540 | $ 1,679,473 |
Raw materials and work in process | 378,463 | 296,998 |
Stores, supplies and other | 115,620 | 99,560 |
Total inventories | $ 3,658,623 | $ 2,076,031 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Other variable interest entities | |||
Inventory [Line Items] | |||
Equity Method Investment, Deferred Gain on Sale | $ 332.3 | $ 750.9 | |
Lithium | |||
Inventory [Line Items] | |||
Work in process related to Lithium | $ 174.1 | $ 133.2 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Jun. 01, 2021 | Oct. 31, 2019 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | ||||||||
Net sales | $ 2,370,190 | $ 1,479,593 | $ 4,950,442 | $ 2,607,321 | ||||
Gross Profit | 558,487 | 580,424 | 1,835,027 | 1,029,454 | ||||
Net income | 676,439 | 440,592 | 1,953,142 | 722,139 | ||||
Fine Chemistry Services | ||||||||
Schedule of Investments [Line Items] | ||||||||
Preferred Stock, Value, Outstanding | $ 270,000 | 272,700 | 272,700 | $ 260,100 | ||||
Preferred Stock, Dividend Rate, Percentage | 12% | |||||||
Significant Unconsolidated Joint Ventures | ||||||||
Schedule of Investments [Line Items] | ||||||||
Net sales | 2,319,020 | 626,692 | 4,278,318 | 1,019,525 | ||||
Gross Profit | 2,244,236 | 567,660 | 4,145,936 | 922,102 | ||||
Income (Loss) Attributable to Parent, before Tax | 2,151,879 | 453,370 | 3,936,029 | 745,922 | ||||
Net income | 1,506,326 | $ 317,363 | 2,755,228 | $ 522,150 | ||||
Windfield Holdings | ||||||||
Schedule of Investments [Line Items] | ||||||||
Carrying value of unconsolidated investment | $ 945,500 | $ 945,500 | 694,500 | |||||
Windfield Holdings | Windfield Holdings | ||||||||
Schedule of Investments [Line Items] | ||||||||
Equity method investment, ownership percentage | 49% | 49% | ||||||
Other variable interest entities | ||||||||
Schedule of Investments [Line Items] | ||||||||
Carrying value of unconsolidated investment | $ 6,800 | $ 6,800 | $ 6,700 | |||||
Forecast | Minimum | Mineral Resources Limited | ||||||||
Schedule of Investments [Line Items] | ||||||||
Capital costs committed | $ 380,000 | |||||||
Forecast | Maximum | Mineral Resources Limited | ||||||||
Schedule of Investments [Line Items] | ||||||||
Capital costs committed | $ 400,000 | |||||||
Kemerton Plant | Forecast | ||||||||
Schedule of Investments [Line Items] | ||||||||
Ownership percentage purchased | 40% | |||||||
Mineral Resources Limited Wodgina Project | ||||||||
Schedule of Investments [Line Items] | ||||||||
Ownership percentage | 60% | |||||||
Mineral Resources Limited Wodgina Project | Forecast | ||||||||
Schedule of Investments [Line Items] | ||||||||
Ownership percentage purchased | 10% | |||||||
Ownership percentage | 50% |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Changes in Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 1,617,627 |
Goodwill, Transfers | 0 |
Foreign currency translation adjustments and other | 17,196 |
Balance at end of period | 1,634,823 |
Reportable Segments | Lithium | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 1,424,275 |
Goodwill, Transfers | 12,316 |
Foreign currency translation adjustments and other | 12,124 |
Balance at end of period | 1,424,083 |
Reportable Segments | Specialties | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 20,319 |
Goodwill, Transfers | (12,316) |
Foreign currency translation adjustments and other | 0 |
Balance at end of period | 32,635 |
Reportable Segments | Catalysts | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 173,033 |
Goodwill, Transfers | 0 |
Foreign currency translation adjustments and other | 5,072 |
Balance at end of period | $ 178,105 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Other Intangibles (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | $ 507,416 | |
Foreign currency translation adjustments and other | 2,874 | |
Gross Asset Value, End of Period | 510,290 | |
Accumulated Amortization, Beginning of Period | (219,546) | |
Amortization | (14,859) | |
Foreign currency translation adjustments and other | (1,476) | |
Accumulated Amortization, End of Period | (235,881) | |
Net Book Value | 274,409 | $ 287,870 |
Customer lists and relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 412,670 | |
Foreign currency translation adjustments and other | 2,885 | |
Gross Asset Value, End of Period | 415,555 | |
Accumulated Amortization, Beginning of Period | (177,627) | |
Amortization | (13,063) | |
Foreign currency translation adjustments and other | (1,173) | |
Accumulated Amortization, End of Period | (191,863) | |
Net Book Value | 223,692 | 235,043 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 13,161 | |
Foreign currency translation adjustments and other | 310 | |
Gross Asset Value, End of Period | 13,471 | |
Accumulated Amortization, Beginning of Period | (3,587) | |
Amortization | 0 | |
Foreign currency translation adjustments and other | (69) | |
Accumulated Amortization, End of Period | (3,656) | |
Net Book Value | 9,815 | 9,574 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 46,399 | |
Foreign currency translation adjustments and other | (517) | |
Gross Asset Value, End of Period | 45,882 | |
Accumulated Amortization, Beginning of Period | (23,790) | |
Amortization | (1,307) | |
Foreign currency translation adjustments and other | (192) | |
Accumulated Amortization, End of Period | (25,289) | |
Net Book Value | 20,593 | 22,609 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 35,186 | |
Foreign currency translation adjustments and other | 196 | |
Gross Asset Value, End of Period | 35,382 | |
Accumulated Amortization, Beginning of Period | (14,542) | |
Amortization | (489) | |
Foreign currency translation adjustments and other | (42) | |
Accumulated Amortization, End of Period | (15,073) | |
Net Book Value | $ 20,309 | $ 20,644 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 3,515,536 | $ 3,217,100 |
Unamortized discount and debt issuance costs | (103,967) | (28,689) |
Current portion of long-term debt | 6,247 | 2,128 |
Long-term debt | 3,509,289 | 3,214,972 |
Unsecured debt | 1.125% Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 413,371 | $ 401,265 |
Debt instrument, interest rate | 1.125% | 1.125% |
Unsecured debt | 1.625% Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 548,050 | $ 532,000 |
Debt instrument, interest rate | 1.625% | 1.625% |
Senior notes | 3.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 171,612 | $ 171,612 |
Debt instrument, interest rate | 3.45% | 3.45% |
Senior notes | 4.65% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 650,000 | $ 650,000 |
Debt instrument, interest rate | 4.65% | 4.65% |
Senior notes | 5.05% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 600,000 | $ 600,000 |
Debt instrument, interest rate | 5.05% | 5.05% |
Senior notes | 5.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 350,000 | $ 350,000 |
Debt instrument, interest rate | 5.45% | 5.45% |
Senior notes | 5.65% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 450,000 | $ 450,000 |
Debt instrument, interest rate | 5.65% | 5.65% |
Variable-rate foreign bank loans | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 2,776 | $ 2,997 |
Finance lease obligations | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 122,053 | 76,537 |
Other Debt Obligations | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 311,641 | $ 11,378 |
Other Debt Obligations | Zero Percent Rate Loan | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 300,000 | |
Debt instrument, interest rate | 5.53% |
Commitments and Contingencies -
Commitments and Contingencies - Activity in Recorded Environmental Liabilities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Balance at beginning of period | $ 38,245 |
Expenditures | (1,769) |
Accretion of discount | 573 |
Accrual for Environmental Loss Contingencies, Period Increase (Decrease) | 1,869 |
Foreign currency translation adjustments and other | 629 |
Balance at end of period | 39,547 |
Less amounts reported in Accrued expenses | 7,909 |
Amounts reported in Other noncurrent liabilities | $ 31,638 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Environmental remediation liabilities - discounted | $ 31.9 | $ 30.1 |
Accrual for environmental loss contingencies - weighted-average discount rate | 3.60% | 3.40% |
Environmental remediation liabilities - undiscounted | $ 60.4 | $ 57.5 |
Potential revision on future environmental remediation costs before tax | 21 | |
Loss Contingency Accrual | 218.5 | |
Selling, general and administrative expenses | ||
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual | 218.5 | |
Other noncurrent liabilities | ||
Loss Contingencies [Line Items] | ||
Tax Indemnification Liability | $ 29.6 | $ 66.1 |
Leases - Additional Information
Leases - Additional Information (Details) | Jun. 30, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 50 years |
Real estate | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 1 year |
Real estate | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 30 years |
Non-real estate | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 2 years |
Non-real estate | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 15 years |
Leases - Leases Cost (Details)
Leases - Leases Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 14,311 | $ 10,590 | $ 26,062 | $ 21,201 |
Amortization of right of use assets | 1,935 | 972 | 2,780 | 1,402 |
Interest on lease liabilities | 1,635 | 840 | 2,694 | 1,693 |
Total finance lease cost | 3,570 | 1,812 | 5,474 | 3,095 |
Short-term lease cost | 4,860 | 3,271 | 9,920 | 5,970 |
Variable lease cost | 4,766 | 1,914 | 8,275 | 2,631 |
Total lease cost | $ 27,507 | $ 17,587 | $ 49,731 | $ 32,897 |
Leases - Leases Cash Flow (Deta
Leases - Leases Cash Flow (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 24,816 | $ 17,539 |
Operating cash flows from finance leases | 2,400 | 1,185 |
Financing cash flows from finance leases | 1,081 | 661 |
Right-of-use asset obtained in exchange for operating leases | 30,581 | 1,560 |
Right-of-use asset obtained in exchange for financing leases | $ 46,773 | $ 0 |
Leases - Leases Balance Sheet (
Leases - Leases Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Other assets | $ 138,278 | $ 128,173 |
Accrued expenses | 36,750 | 35,515 |
Other noncurrent liabilities | 111,652 | 99,269 |
Total operating lease liabilities | 148,402 | 134,784 |
Net property, plant and equipment | 125,304 | 81,356 |
Current portion of long-term debt(a) | 9,370 | 4,995 |
Long-term debt | 115,806 | 74,409 |
Total finance lease liabilities | $ 125,176 | $ 79,404 |
Weighted average remaining lease term, operating leases | 11 years 9 months 18 days | 13 years 3 months 18 days |
Weighted average remaining lease term, finance leases | 21 years 6 months | 22 years 9 months 18 days |
Weighted average discount rate, operating leases, percent | 4.32% | 3.60% |
Weighted average discount rate, finance leases, percent | 4.65% | 4.41% |
Leases - Leases Maturity Table
Leases - Leases Maturity Table (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Remainder of 2023 | $ 23,714 | |
2024 | 32,442 | |
2025 | 20,563 | |
2026 | 16,535 | |
2027 | 14,385 | |
Thereafter | 114,078 | |
Total lease payments | 221,717 | |
Less imputed interest | 73,315 | |
Total operating lease liabilities | 148,402 | $ 134,784 |
Finance Leases | ||
Remainder of 2023 | 6,625 | |
2024 | 12,998 | |
2025 | 9,872 | |
2026 | 9,215 | |
2027 | 9,215 | |
Thereafter | 148,691 | |
Total lease payments | 196,616 | |
Less imputed interest | 71,440 | |
Total finance lease liabilities | $ 125,176 | $ 79,404 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Summarize
Segment Information - Summarized Financial Information by Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,370,190 | $ 1,479,593 | $ 4,950,442 | $ 2,607,321 |
Adjusted EBITDA | 1,032,266 | 610,209 | 2,627,985 | 1,042,139 |
Depreciation and amortization | (93,085) | (70,993) | (180,356) | (137,567) |
Interest and financing expenses | (25,577) | (41,409) | (52,354) | (69,243) |
Income tax expense | (42,987) | (89,018) | (319,950) | (169,548) |
Gain (Loss) on Disposition of Business | 0 | 0 | 0 | (8,400) |
Acquisition and integration related costs | (6,502) | (5,375) | (11,610) | (7,099) |
Non-operating pension and OPEB items | (612) | 5,038 | (1,213) | 10,318 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 15,020 | 0 | 60,846 | 0 |
Legal Accrual | (218,510) | 0 | (218,510) | 0 |
Other | (9,970) | (1,679) | (16,215) | (444) |
Net income attributable to Albemarle Corporation | 650,043 | 406,773 | 1,888,623 | 660,156 |
Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 1,035,105 | 640,683 | 2,617,987 | 1,095,442 |
Reportable Segments | Lithium | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,763,065 | 802,393 | 3,706,747 | 1,266,097 |
Adjusted EBITDA | 932,023 | 483,517 | 2,338,204 | 768,764 |
Depreciation and amortization | (56,540) | (38,814) | (108,702) | (73,860) |
Reportable Segments | Specialties | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 371,302 | 466,875 | 790,080 | 913,022 |
Adjusted EBITDA | 60,200 | 147,374 | 222,358 | 299,976 |
Depreciation and amortization | (21,299) | (16,910) | (41,191) | (33,063) |
Reportable Segments | Catalysts | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 235,823 | 210,325 | 453,615 | 428,202 |
Adjusted EBITDA | 42,882 | 9,792 | 57,425 | 26,702 |
Depreciation and amortization | (13,084) | (13,175) | (26,227) | (26,096) |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (2,839) | (30,474) | 9,998 | (53,303) |
Depreciation and amortization | $ (2,162) | $ (2,094) | $ (4,236) | $ (4,548) |
Segment Information - Summari_2
Segment Information - Summarized Financial Information by Reportable Segments (Footnote) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2019 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Loss on early extinguishment of debt | $ 0 | $ (19,219) | |||
Interest and financing expenses | $ (25,577) | $ (41,409) | (52,354) | (69,243) | |
Accrual for Environmental Loss Contingencies, Period Increase (Decrease) | $ 1,869 | ||||
Lithium Hydroxide Conversion Assets | |||||
Segment Reporting Information [Line Items] | |||||
Ownership percentage | 40% | 40% | |||
Interest Expense | |||||
Segment Reporting Information [Line Items] | |||||
Loss on early extinguishment of debt | 19,200 | 19,200 | |||
Cost of goods sold | |||||
Segment Reporting Information [Line Items] | |||||
Litigation Settlement, Expense | 500 | 500 | |||
Selling, general and administrative expenses | |||||
Segment Reporting Information [Line Items] | |||||
Severance costs | 7,400 | $ 7,400 | |||
Other Restructuring Costs | 700 | $ 1,100 | 1,400 | 1,100 | |
Accrual for Environmental Loss Contingencies, Period Increase (Decrease) | 1,900 | 2,800 | |||
Gain on sale of idle properties | 4,300 | ||||
Selling, general and administrative expenses | Financial Improvement Plan | |||||
Segment Reporting Information [Line Items] | |||||
Multiemployer plan, period contributions | 600 | 600 | |||
Other Expense | |||||
Segment Reporting Information [Line Items] | |||||
Revision of tax indemnification expense | (3,900) | (3,900) | |||
Gain in fair value of preferred equity | $ 2,700 | 2,700 | |||
Asset Retirement Obligation, Liabilities Incurred | $ 3,600 | ||||
Proceeds from Legal Settlements | 600 | ||||
Revision of Prior Period, Error Correction, Adjustment | |||||
Segment Reporting Information [Line Items] | |||||
Interest and financing expenses | $ 17,500 |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefits - Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total net pension and postretirement benefits cost (credit) | $ 1,979 | $ (4,023) | $ 3,933 | $ (8,273) |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1,334 | 970 | 2,655 | 1,955 |
Interest cost | 8,558 | 5,568 | 17,100 | 11,173 |
Expected return on assets | (8,415) | (10,932) | (16,824) | (22,144) |
Amortization of prior service benefit | 21 | 23 | 41 | 47 |
Total net pension and postretirement benefits cost (credit) | 1,498 | (4,371) | 2,972 | (8,969) |
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 12 | 22 | 24 | 43 |
Interest cost | 469 | 326 | 937 | 653 |
Total net pension and postretirement benefits cost (credit) | $ 481 | $ 348 | $ 961 | $ 696 |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefits - Pension and Postretirement Plan Contributions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Retirement Benefits [Abstract] | ||||
Employer contributions | $ 5.8 | $ 3.8 | $ 8.6 | $ 7.7 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Total long-term debt, excluding debt issuance costs | $ 3,536,838 | $ 3,239,853 |
Total long-term debt, fair value, excluding debt issuance costs | $ 3,331,991 | $ 2,993,027 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Foreign currency forward contracts, assets | $ 26,552 | $ 26,552 | $ 6,016 | ||
Foreign currency forward contracts, liabilities | 382 | 382 | 3,244 | ||
Recognized gains (losses) of foreign currency forward contracts designated as hedging instruments | 1,026 | $ (2,509) | 2,127 | $ 1,508 | |
Forward contracts | Other, net | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Derivative, Cash Received on Hedge | 224,200 | ||||
Cash settlements | 19,800 | ||||
Designated as Hedging Instrument | Forward contracts | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Derivative, notional amount | 1,100,000 | 1,100,000 | 64,500 | ||
Fair value foreign currency forward contracts designated as hedging instruments, asset | 1,169 | 1,169 | 0 | ||
Fair value foreign currency forward contracts designated as hedging instruments, liabilities | 125 | 125 | 3,159 | ||
Recognized gains (losses) of foreign currency forward contracts designated as hedging instruments | 1,026 | (2,508) | 2,127 | 1,509 | |
Designated as Hedging Instrument | Forward contracts | Other current assets | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value foreign currency forward contracts designated as hedging instruments, asset | 281 | 281 | 0 | ||
Designated as Hedging Instrument | Forward contracts | Accrued expenses | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value foreign currency forward contracts designated as hedging instruments, liabilities | 31 | 31 | 3,159 | ||
Designated as Hedging Instrument | Forward contracts | Other assets | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value foreign currency forward contracts designated as hedging instruments, asset | 888 | 888 | |||
Designated as Hedging Instrument | Forward contracts | Other noncurrent liabilities | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value foreign currency forward contracts designated as hedging instruments, liabilities | 94 | 94 | |||
Not Designated as Hedging Instrument | Forward contracts | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Derivative, notional amount | 6,700,000 | 6,700,000 | 2,800,000 | ||
Fair value foreign currency forward contracts not designated as hedging instruments, asset | 25,383 | 25,383 | 6,016 | ||
Fair value foreign currency forward contracts not designated as hedging instruments, liabilities | 257 | 257 | 85 | ||
Not Designated as Hedging Instrument | Forward contracts | Other current assets | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value foreign currency forward contracts not designated as hedging instruments, asset | 25,383 | 25,383 | 6,016 | ||
Not Designated as Hedging Instrument | Forward contracts | Accrued expenses | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value foreign currency forward contracts not designated as hedging instruments, liabilities | 257 | 257 | $ 85 | ||
Not Designated as Hedging Instrument | Forward contracts | Other (expenses) income, net | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Recognized (losses) gains of foreign currency forward contracts not designated as hedging instruments | $ 208,174 | $ (23,298) | $ 243,407 | $ (27,270) |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt Securities, Available-for-sale | $ 272,700 | $ 272,700 | $ 260,139 | ||
Investments under executive deferred compensation plan | 29,933 | 29,933 | 27,270 | ||
Private equity securities | 194,724 | 194,724 | 5,890 | ||
Private equity securities measured at net asset value | 6,390 | 6,390 | 6,375 | ||
Foreign currency forward contracts, assets | 26,552 | 26,552 | 6,016 | ||
Obligations under executive deferred compensation plan | 29,933 | 29,933 | 27,270 | ||
Foreign currency forward contracts, liabilities | 382 | 382 | 3,244 | ||
Equity Securities, Purchases | 121,900 | ||||
Equity Securities, FV-NI, Unrealized Gain (Loss) | 15,020 | $ 0 | 60,846 | $ 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 272,700 | 272,700 | 260,139 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 7,255 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Accretion of Discount | 5,306 | ||||
Quoted Prices in Active Markets for Identical Items (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt Securities, Available-for-sale | 0 | 0 | 0 | ||
Investments under executive deferred compensation plan | 29,933 | 29,933 | 27,270 | ||
Private equity securities | 194,724 | 194,724 | 5,890 | ||
Private equity securities measured at net asset value | 0 | 0 | 0 | ||
Foreign currency forward contracts, assets | 0 | 0 | 0 | ||
Obligations under executive deferred compensation plan | 29,933 | 29,933 | 27,270 | ||
Foreign currency forward contracts, liabilities | 0 | 0 | 0 | ||
Quoted Prices in Active Markets for Similar Items (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt Securities, Available-for-sale | 0 | 0 | 0 | ||
Investments under executive deferred compensation plan | 0 | 0 | 0 | ||
Private equity securities | 0 | 0 | 0 | ||
Private equity securities measured at net asset value | 0 | 0 | 0 | ||
Foreign currency forward contracts, assets | 26,552 | 26,552 | 6,016 | ||
Obligations under executive deferred compensation plan | 0 | 0 | 0 | ||
Foreign currency forward contracts, liabilities | 382 | 382 | 3,244 | ||
Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt Securities, Available-for-sale | 272,700 | 272,700 | 260,139 | ||
Investments under executive deferred compensation plan | 0 | 0 | 0 | ||
Private equity securities | 0 | 0 | 0 | ||
Private equity securities measured at net asset value | 0 | 0 | 0 | ||
Foreign currency forward contracts, assets | 0 | 0 | 0 | ||
Obligations under executive deferred compensation plan | 0 | 0 | 0 | ||
Foreign currency forward contracts, liabilities | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Components and Activity in Accumulated Other Comprehensive (Loss) Income Net of Deferred Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | $ 9,459,070 | $ 6,035,052 | $ 8,190,847 | $ 5,805,607 |
Other comprehensive income (loss), before reclassifications | (4,626) | (120,349) | 42,675 | (122,241) |
Amounts reclassified from accumulated other comprehensive loss | 17 | 6,768 | 33 | 7,438 |
Total other comprehensive (loss) income, net of tax | (4,609) | (113,581) | 42,708 | (114,803) |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 62 | 8 | 115 |
Ending Balance | $ 10,088,040 | 6,300,975 | $ 10,088,040 | 6,300,975 |
4.15% Senior Notes | Senior notes | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Debt instrument, interest rate | 4.15% | 4.15% | ||
Foreign Currency Translation and Other | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | $ (516,662) | (397,510) | $ (562,886) | (391,674) |
Other comprehensive income (loss), before reclassifications | (5,652) | (117,840) | 40,548 | (123,749) |
Amounts reclassified from accumulated other comprehensive loss | 17 | 19 | 33 | 39 |
Total other comprehensive (loss) income, net of tax | (5,635) | (117,821) | 40,581 | (123,710) |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 62 | 8 | 115 |
Ending Balance | (522,297) | (515,269) | (522,297) | (515,269) |
Cash Flow Hedge | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | 3,325 | 10,640 | 2,224 | 6,623 |
Other comprehensive income (loss), before reclassifications | 1,026 | (2,509) | 2,127 | 1,508 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income, net of tax | 1,026 | (2,509) | 2,127 | 1,508 |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Ending Balance | 4,351 | 8,131 | 4,351 | 8,131 |
Interest Rate Swap | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | 0 | (6,749) | 0 | (7,399) |
Other comprehensive income (loss), before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 6,749 | 0 | 7,399 |
Total other comprehensive (loss) income, net of tax | 0 | 6,749 | 0 | 7,399 |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive (Loss) Income | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (513,337) | (393,619) | (560,662) | (392,450) |
Total other comprehensive (loss) income, net of tax | (4,609) | (113,519) | 42,716 | (114,688) |
Ending Balance | $ (517,946) | $ (507,138) | $ (517,946) | $ (507,138) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income - Amount of Income Tax Benefit (Expense) Allocated to Component of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Other comprehensive income (loss), before tax | $ (4,605) | $ (112,035) | $ 42,474 | $ (113,642) |
Income tax benefit | (4) | (1,546) | 234 | (1,161) |
Total other comprehensive (loss) income, net of tax | (4,609) | (113,581) | 42,708 | (114,803) |
Foreign Currency Translation and Other | ||||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Other comprehensive income (loss), before tax | (5,631) | (118,431) | 40,347 | (124,889) |
Income tax benefit | (4) | 610 | 234 | 1,179 |
Total other comprehensive (loss) income, net of tax | (5,635) | (117,821) | 40,581 | (123,710) |
Cash Flow Hedge | ||||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Other comprehensive income (loss), before tax | 1,026 | (2,509) | 2,127 | 1,508 |
Income tax benefit | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income, net of tax | 1,026 | (2,509) | 2,127 | 1,508 |
Interest Rate Swap | ||||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Other comprehensive income (loss), before tax | 0 | 8,905 | 0 | 9,739 |
Income tax benefit | 0 | (2,156) | 0 | (2,340) |
Total other comprehensive (loss) income, net of tax | $ 0 | $ 6,749 | $ 0 | $ 7,399 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Net sales | $ 2,370,190 | $ 1,479,593 | $ 4,950,442 | $ 2,607,321 | |
Cost of goods sold | 1,811,703 | 899,169 | 3,115,415 | 1,577,867 | |
Other accounts receivable | 426,780 | 426,780 | $ 185,819 | ||
Unconsolidated Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Net sales | 3,673 | 7,214 | 10,773 | 14,869 | |
Purchases from unconsolidated affiliates | 1,114,944 | 314,886 | 2,187,488 | 531,440 | |
Other accounts receivable | 14,724 | 14,724 | 21,495 | ||
Accounts payable | 1,092,398 | 1,092,398 | 518,377 | ||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Cost of goods sold | 421,000 | $ 97,600 | 774,200 | $ 158,600 | |
Accounts payable | $ 1,092,398 | $ 1,092,398 | $ 518,377 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of supplemental information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | ||
Capital expenditures included in Accounts payable | $ 408,998 | $ 222,533 |
Notes Issued | $ 0 | $ 10,876 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Oct. 31, 2019 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flow Supplemental Disclosures [Line Items] | |||
Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL | $ 11,623 | $ 96,314 | |
One Time Transition Tax, Reclassification | $ 64,400 | 42,500 | |
Lithium Hydroxide Conversion Assets | |||
Cash Flow Supplemental Disclosures [Line Items] | |||
Ownership percentage | 40% | 40% | |
Mineral Resources Limited Wodgina Project | |||
Cash Flow Supplemental Disclosures [Line Items] | |||
Ownership percentage | 60% | ||
Mineral Resources Limited Wodgina Project | Lithium Hydroxide Conversion Assets | |||
Cash Flow Supplemental Disclosures [Line Items] | |||
Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL | $ 11,600 | $ 96,300 |