Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 24, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | |
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 | 117,527,473 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000915913 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of each class | COMMON STOCK, $.01 Par Value | |
Trading Symbol | ALB | |
Security Exchange Name | NYSE | |
Series A Preferred Stock | ||
Document Information [Line Items] | ||
Title of each class | DEPOSITARY SHARES, each representing a 1/20th interest in a share of 7.25% Series A Mandatory Convertible Preferred Stock | |
Trading Symbol | ALB PR A | |
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Income Statement [Abstract] | |||
Net sales | $ 1,360,736 | $ 2,580,252 | |
Cost of goods sold | [1] | 1,321,798 | 1,303,712 |
Gross profit | 38,938 | 1,276,540 | |
Selling, general and administrative expenses | 194,912 | 154,306 | |
Research and development expenses | 23,532 | 20,471 | |
Operating (loss) profit | (179,506) | 1,101,763 | |
Interest and financing expenses | (37,969) | (26,777) | |
Other income, net | 49,901 | 82,492 | |
(Loss) income before income taxes and equity in net income of unconsolidated investments | (167,574) | 1,157,478 | |
Income tax (benefit) expense | (3,721) | 276,963 | |
(Loss) income before equity in net income of unconsolidated investments | (163,853) | 880,515 | |
Equity in net income of unconsolidated investments (net of tax) | 180,500 | 396,188 | |
Net income | 16,647 | 1,276,703 | |
Net income attributable to noncontrolling interests | (14,199) | (38,123) | |
Net income attributable to Albemarle Corporation | 2,448 | 1,238,580 | |
Mandatory convertible preferred stock dividends | (11,584) | 0 | |
Net (loss) income attributable to Albemarle Corporation common shareholders | $ (9,136) | $ 1,238,580 | |
Basic (loss) earnings per share attributable to common shareholders (in dollars per share) | $ (0.08) | $ 10.57 | |
Diluted (loss) earnings per share attributable to common shareholders (in dollars per share) | $ (0.08) | $ 10.51 | |
Weighted-average common shares outstanding - basic (in shares) | 117,451 | 117,232 | |
Weighted-average common shares outstanding - diluted (in shares) | 117,451 | 117,841 | |
[1] Included purchases from related unconsolidated affiliates of $540.7 million and $353.2 million for the three-month periods ended March 31, 2024 and 2023, respectively. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 16,647 | $ 1,276,703 |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation and other | (50,220) | 46,216 |
Cash flow hedge | (18,660) | 1,101 |
Total other comprehensive (loss) income, net of tax | (68,880) | 47,317 |
Comprehensive (loss) income | (52,233) | 1,324,020 |
Comprehensive income attributable to noncontrolling interests | (13,998) | (38,115) |
Comprehensive (loss) income attributable to Albemarle Corporation | $ (66,231) | $ 1,285,905 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 2,055,813 | $ 889,900 |
Trade accounts receivable, less allowance for doubtful accounts (2024 – $2,761; 2023 – $2,808) | 874,038 | 1,213,160 |
Other accounts receivable | 438,507 | 509,097 |
Inventories | 1,904,827 | 2,161,287 |
Other current assets | 549,540 | 443,475 |
Total current assets | 5,822,725 | 5,216,919 |
Property, plant and equipment, at cost | 12,587,763 | 12,233,757 |
Less accumulated depreciation and amortization | 2,831,728 | 2,738,553 |
Net property, plant and equipment | 9,756,035 | 9,495,204 |
Investments | 1,259,001 | 1,369,855 |
Other assets | 329,283 | 297,087 |
Goodwill | 1,613,534 | 1,629,729 |
Other intangibles, net of amortization | 251,755 | 261,858 |
Total assets | 19,032,333 | 18,270,652 |
Current liabilities: | ||
Accrued expenses | 454,600 | 544,835 |
Current portion of long-term debt | 5,076 | 625,761 |
Dividends payable | 58,354 | 46,666 |
Income taxes payable | 237,098 | 255,155 |
Total current liabilities | 2,050,696 | 3,560,462 |
Long-term debt | 3,519,453 | 3,541,002 |
Postretirement benefits | 26,382 | 26,247 |
Pension benefits | 145,067 | 150,312 |
Other noncurrent liabilities | 833,548 | 769,100 |
Deferred income taxes | 657,468 | 558,430 |
Commitments and contingencies (Note 6) | ||
Albemarle Corporation shareholders’ equity: | ||
Common stock, $.01 par value, authorized – $150,000 issued and outstanding – 117,527 in 2024 and 117,356 in 2023 | 1,175 | 1,174 |
Mandatory convertible preferred stock, Series A, no par value, $1,000 stated value, authorized – 15,000, issued and outstanding – 2,300 in 2024 and 0 in 2023 | 2,235,379 | 0 |
Additional paid-in capital | 2,962,585 | 2,952,517 |
Accumulated other comprehensive loss | (597,205) | (528,526) |
Retained earnings | 6,930,868 | 6,987,015 |
Total Albemarle Corporation shareholders’ equity | 11,532,802 | 9,412,180 |
Noncontrolling interests | 266,917 | 252,919 |
Total equity | 11,799,719 | 9,665,099 |
Total liabilities and equity | 19,032,333 | 18,270,652 |
Nonrelated Party | ||
Current liabilities: | ||
Accounts payable | 1,165,955 | 1,537,859 |
Related Party | ||
Current liabilities: | ||
Accounts payable | $ 129,613 | $ 550,186 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,761 | $ 2,808 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 117,527,000 | 117,356,000 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, outstanding (in shares) | 117,527,000 | 117,356,000 |
Preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, issued (in shares) | 2,300,000 | 0 |
Preferred stock, outstanding (in shares) | 2,300,000 | 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Total | Total Albemarle Shareholders’ Equity | Common Stock | Mandatory Convertible Preferred Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interests |
Beginning Balance (in shares) at Dec. 31, 2022 | 117,168,366 | 0 | ||||||
Beginning Balance at Dec. 31, 2022 | $ 8,190,847,000 | $ 7,982,627,000 | $ 1,172,000 | $ 0 | $ 2,940,840,000 | $ (560,662,000) | $ 5,601,277,000 | $ 208,220,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,276,703,000 | 1,238,580,000 | 1,238,580,000 | 38,123,000 | ||||
Other comprehensive (loss) income | 47,317,000 | 47,325,000 | 47,325,000 | (8,000) | ||||
Common stock dividends declared | (46,919,000) | (46,919,000) | (46,919,000) | 0 | ||||
Mandatory convertible preferred stock cumulative dividends | 0 | |||||||
Stock-based compensation | 9,658,000 | 9,658,000 | 9,658,000 | |||||
Exercise of stock options (in shares) | 1,220 | |||||||
Exercise of stock options | 81,000 | 81,000 | $ 0 | 81,000 | ||||
Issuance of common stock, net (in shares) | 205,172 | |||||||
Issuance of common stock, net | 0 | 0 | $ 2,000 | (2,000) | ||||
Withholding taxes paid on stock-based compensation award distributions (in shares) | (75,366) | |||||||
Withholding taxes paid on stock-based compensation award distributions | (18,617,000) | (18,617,000) | $ (1,000) | (18,616,000) | ||||
Ending Balance (in shares) at Mar. 31, 2023 | 117,299,392 | 0 | ||||||
Ending Balance at Mar. 31, 2023 | 9,459,070,000 | 9,212,735,000 | $ 1,173,000 | $ 0 | 2,931,961,000 | (513,337,000) | 6,792,938,000 | 246,335,000 |
Beginning Balance (in shares) at Dec. 31, 2023 | 117,356,270 | 0 | ||||||
Beginning Balance at Dec. 31, 2023 | 9,665,099,000 | 9,412,180,000 | $ 1,174,000 | $ 0 | 2,952,517,000 | (528,526,000) | 6,987,015,000 | 252,919,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 16,647,000 | 2,448,000 | 2,448,000 | 14,199,000 | ||||
Other comprehensive (loss) income | (68,880,000) | (68,679,000) | (68,679,000) | (201,000) | ||||
Common stock dividends declared | (47,011,000) | (47,011,000) | (47,011,000) | 0 | ||||
Mandatory convertible preferred stock cumulative dividends | (11,584,000) | (11,584,000) | (11,584,000) | |||||
Stock-based compensation | 9,057,000 | 9,057,000 | 9,057,000 | |||||
Exercise of stock options (in shares) | 1,420 | |||||||
Exercise of stock options | 86,000 | 86,000 | $ 0 | 86,000 | ||||
Issuance of common stock, net (in shares) | 260,750 | |||||||
Issuance of common stock, net | 11,545,000 | 11,545,000 | $ 2,000 | 11,543,000 | ||||
Issuance of mandatory convertible preferred stock, net (in shares) | 2,300,000 | |||||||
Issuance of mandatory convertible preferred stock, net | 2,235,379,000 | 2,235,379,000 | $ 2,235,379,000 | |||||
Withholding taxes paid on stock-based compensation award distributions (in shares) | (91,273) | |||||||
Withholding taxes paid on stock-based compensation award distributions | (10,619,000) | (10,619,000) | $ (1,000) | (10,618,000) | ||||
Ending Balance (in shares) at Mar. 31, 2024 | 117,527,167 | 2,300,000 | ||||||
Ending Balance at Mar. 31, 2024 | $ 11,799,719,000 | $ 11,532,802,000 | $ 1,175,000 | $ 2,235,379,000 | $ 2,962,585,000 | $ (597,205,000) | $ 6,930,868,000 | $ 266,917,000 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Financial Position [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.40 | $ 0.40 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of year | $ 889,900 | $ 1,499,142 |
Cash flows from operating activities: | ||
Net income | 16,647 | 1,276,703 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 123,751 | 87,271 |
Stock-based compensation and other | 9,317 | 10,540 |
Equity in net income of unconsolidated investments (net of tax) | (180,500) | (396,188) |
Dividends received from unconsolidated investments and nonmarketable securities | 50,756 | 547,552 |
Pension and postretirement expense | 1,273 | 1,954 |
Pension and postretirement contributions | (4,824) | (2,825) |
Realized loss on investments in marketable securities | 33,746 | 0 |
Unrealized loss (gain) on investments in marketable securities | 6,737 | (45,732) |
Deferred income taxes | 116,447 | 14,098 |
Working capital changes | (52,320) | (764,071) |
Other, net | (23,076) | (8,322) |
Net cash provided by operating activities | 97,954 | 720,980 |
Cash flows from investing activities: | ||
Capital expenditures | (579,322) | (415,608) |
Sales (purchases) of marketable securities, net | 84,893 | (122,267) |
Investments in equity investments and nonmarketable securities | (74) | (1,133) |
Net cash used in investing activities | (494,503) | (539,008) |
Cash flows from financing activities: | ||
Proceeds from issuance of mandatory convertible preferred stock, net of issuance costs | 2,236,750 | 0 |
Repayments of long-term debt and credit agreements | (29,019) | 0 |
Proceeds from borrowings of long-term debt and credit agreements | 29,019 | 0 |
Other debt repayments, net | (620,753) | (713) |
Dividends paid to common shareholders | (46,908) | (46,282) |
Dividends paid to noncontrolling interests | 0 | (53,145) |
Proceeds from exercise of stock options | 86 | 81 |
Withholding taxes paid on stock-based compensation award distributions | (10,619) | (18,617) |
Other | (1,256) | 0 |
Net cash provided by (used in) financing activities | 1,557,300 | (118,676) |
Net effect of foreign exchange on cash and cash equivalents | 5,162 | 24,296 |
Increase in cash and cash equivalents | 1,165,913 | 87,592 |
Cash and cash equivalents at end of period | $ 2,055,813 | $ 1,586,734 |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Cost of goods sold | [1] | $ 1,321,798 | $ 1,303,712 |
Related Party | |||
Cost of goods sold | $ 540,700 | $ 353,200 | |
[1] Included purchases from related unconsolidated affiliates of $540.7 million and $353.2 million for the three-month periods ended March 31, 2024 and 2023, respectively. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023, our consolidated statements of income, consolidated statements of comprehensive (loss) income and consolidated statements of changes in equity for the three-month periods ended March 31, 2024 and 2023 and our condensed consolidated statements of cash flows for the three-month periods ended March 31, 2024 and 2023. 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, 2023, as filed with the U.S. Securities and Exchange Commission (“SEC”) on February 15, 2024. The December 31, 2023 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-month period ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories: The following table provides a breakdown of inventories at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, 2024 2023 Finished goods $ 1,349,770 $ 1,624,893 Raw materials and work in process (a) 414,204 401,050 Stores, supplies and other 140,853 135,344 Total (b) $ 1,904,827 $ 2,161,287 (a) Includes $241.0 million and $213.4 million at March 31, 2024 and December 31, 2023, respectively, of work in process in our Energy Storage segment. (b) During the year ended December 31, 2023, the Company recorded a $604.1 million charge in Cost of goods sold to reduce the value of certain spodumene and finished goods to their net realizable value following the decline in lithium market pricing at the end of the year. The Company purchases certain of its inventory from its equity method investments (primarily the Windfield Holdings Pty. Ltd. (“Windfield”) joint venture) and eliminates the balance of intra-entity profits on purchases of such inventory that remains unsold at the balance sheet in Inventories, specifically finished goods and equally reduces Equity in net income of unconsolidated investments (net of tax) on the consolidated statements of income. The balance of intra-entity profits on inventory purchased from equity method investments in Inventories totaled $408.5 million and $559.6 million at March 31, 2024 and December 31, 2023, respectively. The intra-entity profit is recognized in Equity in net income of unconsolidated investments (net of tax) in the period that converted inventory is sold to a third-party customer. In the same period, the intra-entity profit is also recognized as higher Cost of goods sold on the consolidated statements of income. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments: Proportionately Consolidated Joint Ventures On October 18, 2023, the Company closed on the restructuring of the MARBL lithium joint venture in Australia (“MARBL”) with Mineral Resources Limited (“MRL”). This updated structure is intended to significantly simplify the commercial operation agreements previously entered into, allow us to retain full control of downstream conversion assets and provide greater strategic opportunities for each company based on their global operations and the evolving lithium market. Under the amended agreements, Albemarle acquired the remaining 40% ownership of the Kemerton lithium hydroxide processing facility in Australia that was jointly owned with MRL through the MARBL joint venture. Following this restructuring, Albemarle and MRL each own 50% of the Wodgina Lithium Mine Project (“Wodgina”), and MRL operates the Wodgina mine on behalf of the joint venture. During the fourth quarter of 2023, Albemarle paid MRL approximately $380 million in cash, which included $180 million of consideration for the remaining ownership of Kemerton as well as a payment for the economic effective date of the transaction being retroactive to April 1, 2022. This joint venture is unincorporated with each investor holding an undivided interest in each asset and proportionately liable for each liability; therefore our proportionate share of assets, liabilities, revenue and expenses are included in the appropriate classifications in the consolidated financial statements. Unconsolidated Joint Ventures The following table details the Company’s equity in net income of unconsolidated investments (net of tax) for the three-month periods ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Windfield $ 172,679 $ 387,299 Other joint ventures 7,821 8,889 Total $ 180,500 $ 396,188 The Company holds a 49% equity interest in Windfield, where the ownership parties share risks and benefits disproportionate to their voting interests. As a result, the Company considers Windfield 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 the Company’s most significant VIE, was $713.6 million and $712.0 million at March 31, 2024 and December 31, 2023, respectively. 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 Windfield 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 March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Net sales $ 190,009 $ 1,959,298 Gross profit 149,982 1,901,700 Income before income taxes 94,630 1,784,150 Net income 66,411 1,248,902 Public Equity Securities Included in the Company’s investments balance are holdings in equity securities of public companies. 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 three-month period ended March 31, 2023, the Company purchased approximately $121.9 million of shares in publicly-traded companies. In addition, during the three-month periods ended March 31, 2024 and 2023, the Company recorded unrealized mark-to-market (losses) gains of ($9.4) million and $45.8 million, respectively, in Other income, net for all public equity securities held at the end of the balance sheet date. In January 2024, the Company sold equity securities of a public company for proceeds of approximately $81.5 million. As a result of the sale, the Company realized a loss of $33.7 million in the three months ended March 31, 2024. 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% 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 $298.0 million and $289.3 million at March 31, 2024 and December 31, 2023, respectively, which is reported in Investments in the consolidated balance sheets. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Mar. 31, 2024 | |
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 three-month period ended March 31, 2024 (in thousands): Energy Storage Specialties Ketjen Total Balance at December 31, 2023 $ 1,424,484 $ 32,639 $ 172,606 $ 1,629,729 Foreign currency translation adjustments and other (12,950) (28) (3,217) (16,195) Balance at March 31, 2024 $ 1,411,534 $ 32,611 $ 169,389 $ 1,613,534 The following table summarizes the changes in other intangibles and related accumulated amortization for the three-month period ended March 31, 2024 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2023 $ 417,803 $ 13,405 $ 46,287 $ 34,649 $ 512,144 Retirements — (2,309) (14,506) (4,409) (21,224) Foreign currency translation adjustments and other (6,236) (227) (519) (927) (7,909) Balance at March 31, 2024 $ 411,567 $ 10,869 $ 31,262 $ 29,313 $ 483,011 Accumulated Amortization Balance at December 31, 2023 $ (204,481) $ (3,673) $ (26,758) $ (15,374) $ (250,286) Amortization (5,012) — (647) (227) (5,886) Retirements — 2,309 14,506 4,409 21,224 Foreign currency translation adjustments and other 2,956 40 360 336 3,692 Balance at March 31, 2024 $ (206,537) $ (1,324) $ (12,539) $ (10,856) $ (231,256) Net Book Value at December 31, 2023 $ 213,322 $ 9,732 $ 19,529 $ 19,275 $ 261,858 Net Book Value at March 31, 2024 $ 205,030 $ 9,545 $ 18,723 $ 18,457 $ 251,755 (a) Net Book Value includes only indefinite-lived intangible assets. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt: Long-term debt at March 31, 2024 and December 31, 2023 consisted of the following (in thousands): March 31, December 31, 2024 2023 1.125% notes due 2025 $ 408,732 $ 416,501 1.625% notes due 2028 541,900 552,200 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 Commercial paper notes — 620,000 Interest-free loan 300,000 300,000 Variable-rate foreign bank loans 28,398 30,197 Finance lease obligations 103,563 110,245 Other 22,000 22,000 Unamortized discount and debt issuance costs (101,676) (105,992) Total long-term debt 3,524,529 4,166,763 Less amounts due within one year 5,076 625,761 Long-term debt, less current portion $ 3,519,453 $ 3,541,002 During the three months ended March 31, 2024, we repaid a net amount of $620.0 million of commercial paper notes using the net proceeds received from the issuance of mandatory convertible preferred stock. See Note 7, “Equity,” for additional information. Given the current economic conditions, specifically around the market pricing of lithium, and the related impact on the Company’s future earnings, on February 9, 2024 we amended our revolving, unsecured amended and restated credit agreement dated October 28, 2022 (the “2022 Credit Agreement”), which provides for borrowings of up to $1.5 billion and matures on October 28, 2027. Borrowings under the 2022 Credit Agreement bear interest at variable rates based on a benchmark rate depending on the currency in which the loans are denominated, plus an applicable margin which ranges from 0.910% to 1.375%, depending on the Company’s credit rating from Standard & Poor’s Rating Services LLC (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Inc. (“Fitch”). With respect to loans denominated in U.S. dollars, interest is calculated using the term Secured Overnight Financing Rate (“SOFR”) plus a term SOFR adjustment of 0.10%, plus the applicable margin. The applicable margin on the facility was 1.125% as of March 31, 2024. There were no borrowings outstanding under the 2022 Credit Agreement as of March 31, 2024. Borrowings under the 2022 Credit Agreement are conditioned upon satisfaction of certain customary conditions precedent, including the absence of defaults. The February 2024 amendment was entered into to modify the financial covenants under the 2022 Credit Agreement to avoid a potential covenant violation over the following 18 months given the market pricing of lithium. Following the February 2024 amendment, the 2022 Credit Agreement subjects the Company to two financial covenants, as well as customary affirmative and negative covenants. The first financial covenant requires that the ratio of (a) the Company’s consolidated net funded debt plus a proportionate amount of Windfield’s net funded debt to (b) consolidated Windfield-Adjusted EBITDA (as such terms are defined in the 2022 Credit Agreement) be less than or equal to (i) 3.50:1 prior to the second quarter of 2024, (ii) 5.00:1 for the second quarter of 2024, (iii) 5.50:1 for the third quarter of 2024, (iv) 4.00:1 for the fourth quarter of 2024, (v) 3.75:1 for the first and second quarters of 2025 and (vi) 3.50:1 after the second quarter of 2025. The maximum permitted leverage ratios described above are subject to adjustment in accordance with the terms of the 2022 Credit Agreement upon the consummation of an acquisition after June 30, 2025 if the consideration includes cash proceeds from issuance of funded debt in excess of $500 million. Beginning in the fourth quarter of 2024, the second financial covenant requires that the ratio of the Company’s consolidated EBITDA to consolidated interest charges (as such terms are defined in the 2022 Credit Agreement) be no less than 2.00:1 for fiscal quarters through June 30, 2025, and no less than 3.00:1 for all fiscal quarters thereafter. The 2022 Credit Agreement also contains customary default provisions, including defaults for non-payment, breach of representations and warranties, insolvency, non-performance of covenants and cross-defaults to other material indebtedness. The occurrence of an event of default under the 2022 Credit Agreement could result in all loans and other obligations becoming immediately due and payable and the commitments under the 2022 Credit Agreement being terminated. Following the $2.2 billion issuance of mandatory convertible preferred stock in March 2024 and the amendments to the financial covenants, the Company expects to maintain compliance with the amended financial covenants in the near future. However, a significant downturn in lithium market prices or demand could impact the Company’s ability to maintain compliance with its amended financial covenants and it could require the Company to seek additional amendments to the 2022 Credit Agreement and/or issue debt or equity securities to fund its activities and maintain financial flexibility. If the Company were unable to obtain such necessary additional amendments, this could lead to an event of default and its lenders could require the Company to repay its outstanding debt. In that situation, the Company may not be able to raise sufficient debt or equity capital, or divest assets, to refinance or repay the lenders. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: Environmental The following activity was recorded in environmental liabilities for the three months ended March 31, 2024 (in thousands): Beginning balance at December 31, 2023 $ 34,149 Expenditures (678) Accretion of discount 289 Liability releases (1,924) Foreign currency translation adjustments and other (285) Ending balance at March 31, 2024 31,551 Less amounts reported in Accrued expenses 6,788 Amounts reported in Other noncurrent liabilities $ 24,763 Environmental remediation liabilities included discounted liabilities of $25.3 million and $27.4 million at March 31, 2024 and December 31, 2023, respectively, discounted at rates with a weighted-average of 3.6% and 3.7%, respectively, and with the undiscounted amount totaling $52.5 million and $55.4 million at March 31, 2024 and December 31, 2023, 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 $48 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. 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 $12.2 million and $14.5 million at March 31, 2024 and December 31, 2023, 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 multiple shipments under certain customer supply contracts. The financial coverage provided by these guarantees is typically based on a percentage of net sales value. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Equity | Equity: Common Stock On February 22, 2024, the Company’s board of directors declared a cash dividend of $0.40. This dividend was paid on April 1, 2024 to shareholders of record at the close of business as of March 15, 2024. Mandatory Convertible Preferred Stock On March 8, 2024, the Company issued 46,000,000 depositary shares (“Depositary Shares”), each representing a 1/20th interest in a share of Series A Mandatory Convertible Preferred Stock (“Mandatory Convertible Preferred Stock”). The 2,300,000 shares of Mandatory Convertible Preferred Stock issued had a $1,000 per share liquidation preference. As a result of this transaction, the Company received cash proceeds of approximately $2.2 billion, net of underwriting fees and offering costs. The Company intends to use the proceeds for general corporate purposes, which may include, among other uses, funding growth capital expenditures, such as the construction and expansion of lithium operations in Australia and China that are significantly progressed or near completion, following the repayment of commercial paper in the first quarter of 2024. Dividends on the Mandatory Convertible Preferred Stock are payable on a cumulative basis when, as and if declared by the Albemarle board of directors, or an authorized committee thereof, at an annual rate of 7.25% on the liquidation preference of $1,000 per share, and may be paid in cash or, subject to certain limitations, in shares of common stock or, subject to certain limitations, any combination of cash and shares of common stock. Dividends that are declared on the Mandatory Convertible Preferred Stock will be payable quarterly to the holders of record on the February 15, May 15, August 15 and November 15 of each year, immediately preceding the relevant dividend payment date, whether or not such holders convert their Depositary Shares, or such Depositary Shares are automatically converted, after a record date and on or prior to the immediately succeeding dividend payment date. The first dividend is expected to be payable to shareholders on record on May 15, 2024 at $17.12 per share of Mandatory Convertible Preferred Stock, with subsequent quarterly cash dividends expected to be $18.125 per share of Mandatory Convertible Preferred Stock. Dividends are expected to be paid on March 1, June 1, September 1 and December 1 of each year, commencing on, and including, June 1, 2024 and ending on, and including, March 1, 2027. The Company may not redeem the shares of the Mandatory Convertible Preferred Stock. However, at its option, the Company may purchase the Mandatory Convertible Preferred Stock from time to time on the open market, by tender offer, exchange offer or otherwise. Unless converted earlier in accordance with its terms, each share of Mandatory Convertible Preferred Stock will automatically convert on the mandatory conversion date, which is expected to be March 1, 2027, into between 7.618 shares and 9.140 shares of common stock, in each case, subject to customary anti-dilution adjustments described in the certificate of designations related to the Mandatory Convertible Preferred Stock (the “Certificate of Designations”). The number of shares of common stock issuable upon conversion will be determined based on the average volume weighted average price per share of common stock over the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately prior to March 1, 2027. Holders of shares of Mandatory Convertible Preferred Stock have the option to convert all or any portion of their shares of the Mandatory Convertible Preferred Stock at any time. The conversion rate applicable to any early conversion may in certain circumstances be increased to compensate holders of the Mandatory Convertible Preferred Stock for certain unpaid accumulated dividends as described in the Certificate of Designations. If a Fundamental Change, as defined in the Certificate of Designations, occurs on or prior to March 1, 2027, then holders of the Mandatory Convertible Preferred Stock will be entitled to convert all or any portion of their Mandatory Convertible Preferred Stock at the fundamental change conversion rate, as defined in the Certificate of Designations, as for a specified period of time and to also receive an amount to compensate them for certain unpaid accumulated dividends and any remaining future scheduled dividend payments. There are 2,300,000 shares of Mandatory Convertible Preferred Stock issued and outstanding at March 31, 2024. Accumulated Other Comprehensive Loss The components and activity in Accumulated other comprehensive loss (net of deferred income taxes) consisted of the following during the periods indicated below (in thousands): Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Foreign Currency Translation and Other Cash Flow Hedge (a) Total Foreign Currency Translation and Other Cash Flow Hedge (a) Total Balance, beginning of period $ (536,601) $ 8,075 $ (528,526) $ (562,886) $ 2,224 $ (560,662) Other comprehensive (loss) income before reclassifications (50,237) (21,342) (71,579) 46,200 1,101 47,301 Amounts reclassified from accumulated other comprehensive loss 17 2,682 2,699 16 — 16 Other comprehensive (loss) income, net of tax (50,220) (18,660) (68,880) 46,216 1,101 47,317 Other comprehensive income attributable to noncontrolling interests 201 — 201 8 — 8 Balance, end of period $ (586,620) $ (10,585) $ (597,205) $ (516,662) $ 3,325 $ (513,337) (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 13, “Fair Value of Financial Instruments,” for additional information. The amount of income tax expense allocated to each component of Other comprehensive (loss) income for the three-month periods ended March 31, 2024 and 2023 is provided in the following tables (in thousands): Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Foreign Currency Translation and Other Cash Flow Hedge Total Foreign Currency Translation and Other Cash Flow Hedge Total Other comprehensive (loss) income, before tax $ (50,217) $ (26,657) $ (76,874) $ 45,978 $ 1,101 $ 47,079 Income tax (expense) benefit (3) 7,997 7,994 238 — 238 Other comprehensive (loss) income, net of tax $ (50,220) $ (18,660) $ (68,880) $ 46,216 $ 1,101 $ 47,317 |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2024 | |
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 periods ended March 31, 2024 and 2023 were as follows (in thousands): Three Months Ended 2024 2023 Pension Benefits Cost (Credit): Service cost $ 1,566 $ 1,321 Interest cost 8,145 8,542 Expected return on assets (8,830) (8,409) Amortization of prior service benefit 20 20 Total net pension benefits cost $ 901 $ 1,474 Postretirement Benefits Cost: Service cost $ 12 $ 12 Interest cost 360 468 Total net postretirement benefits cost $ 372 $ 480 Total net pension and postretirement benefits cost $ 1,273 $ 1,954 All components of net benefit cost, other than service cost, are included in Other income, net on the consolidated statements of income. During the three-month periods ended March 31, 2024 and 2023, the Company made contributions of $4.8 million and $2.8 million, respectively, to its qualified and nonqualified pension plans and the U.S. postretirement benefit plan. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: The effective income tax rate for the three-month period ended March 31, 2024 was 2.2% compared to 23.9% for the three-month period ended March 31, 2023. The three-month period ended March 31, 2024 included the impact of the adoption of a 15% global minimum tax under the Pillar Two Global Anti-Base Erosion Rules (“Pillar Two”) developed by the Organisation for Economic Co-operation and Development (“OECD”) as part of global tax framework. The Company’s effective income tax rate fluctuates based on, among other factors, the amount and location of income. The lower effective tax rate in the three-month period ended March 31, 2024, compared to the three-month period ended March 31, 2023, was due to lower 2024 earnings in various jurisdictions. The difference between the U.S. federal statutory income tax rate of 21% and the Company’s effective income tax rate for the three-month period ended March 31, 2024 was impacted by a variety of factors, primarily the location in which income was earned, including the impact of the OECD Pillar Two minimum tax and the valuation allowance for losses in certain entities in China, the global intangible low-taxed income inclusion, and a reduction to the uncertain tax position recorded in Chile. The difference between the U.S. federal statutory income tax rate of 21% and the Company’s effective income tax rate for the three-month period ended March 31, 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share for the three-month periods ended March 31, 2024 and 2023 are calculated as follows (in thousands, except per share amounts): Three Months Ended 2024 2023 Basic (loss) earnings per share Numerator: Net income attributable to Albemarle Corporation $ 2,448 $ 1,238,580 Mandatory convertible preferred stock dividends (11,584) — Net (loss) income attributable to Albemarle Corporation common shareholders $ (9,136) $ 1,238,580 Denominator: Weighted-average common shares for basic (loss) earnings per share 117,451 117,232 Basic (loss) earnings per share $ (0.08) $ 10.57 Diluted (loss) earnings per share Numerator: Net income attributable to Albemarle Corporation $ 2,448 $ 1,238,580 Mandatory convertible preferred stock dividends (11,584) — Net (loss) income attributable to Albemarle Corporation common shareholders $ (9,136) $ 1,238,580 Denominator: Weighted-average common shares for basic (loss) earnings per share 117,451 117,232 Incremental shares under stock compensation plans — 609 Weighted-average common shares for diluted (loss) earnings per share 117,451 117,841 Diluted (loss) earnings per share $ (0.08) $ 10.51 For the three-month period ended March 31, 2024, calculated on a weighted average basis, there were 6,270,968 shares assuming the conversion of the mandatory convertible preferred stock and 216,568 shares under the stock compensation plans not included in the computation of diluted earnings per share because their effect would have been anti-dilutive as the Company reported a net loss attributable to common shareholders for the period. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
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 periods ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Operating lease cost $ 9,546 $ 11,751 Finance lease cost: Amortization of right of use assets 1,308 845 Interest on lease liabilities 1,459 1,059 Total finance lease cost 2,767 1,904 Short-term lease cost 6,018 5,060 Variable lease cost 7,797 3,509 Total lease cost $ 26,128 $ 22,224 Supplemental cash flow information related to our lease contracts for the three-month periods ended March 31, 2024 and 2023 is as follows (in thousands): Three Months Ended 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,848 $ 10,974 Operating cash flows from finance leases 1,018 1,203 Financing cash flows from finance leases 560 500 Right-of-use assets obtained in exchange for lease obligations: Operating leases 8,856 10,337 Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at March 31, 2024 and December 31, 2023 is as follows (in thousands, except as noted): March 31, 2024 December 31, 2023 Operating leases: Other assets $ 137,114 $ 137,405 Accrued expenses 28,916 30,583 Other noncurrent liabilities 114,427 113,681 Total operating lease liabilities 143,343 144,264 Finance leases: Net property, plant and equipment 105,116 112,438 Current portion of long-term debt (a) 10,036 9,702 Long-term debt 98,487 104,484 Total finance lease liabilities 108,523 114,186 Weighted average remaining lease term (in years): Operating leases 12.4 12.2 Finance leases 20.6 20.7 Weighted average discount rate (%): Operating leases 4.63 % 4.74 % Finance leases 5.64 % 4.71 % (a) Balance includes accrued interest of finance lease recorded in Accrued expenses. Maturities of lease liabilities at March 31, 2024 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2024 $ 25,358 $ 13,952 2025 30,524 9,340 2026 22,169 8,690 2027 16,935 8,690 2028 12,707 8,690 Thereafter 106,227 127,855 Total lease payments 213,920 177,217 Less imputed interest 70,577 68,694 Total $ 143,343 $ 108,523 |
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 periods ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Operating lease cost $ 9,546 $ 11,751 Finance lease cost: Amortization of right of use assets 1,308 845 Interest on lease liabilities 1,459 1,059 Total finance lease cost 2,767 1,904 Short-term lease cost 6,018 5,060 Variable lease cost 7,797 3,509 Total lease cost $ 26,128 $ 22,224 Supplemental cash flow information related to our lease contracts for the three-month periods ended March 31, 2024 and 2023 is as follows (in thousands): Three Months Ended 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,848 $ 10,974 Operating cash flows from finance leases 1,018 1,203 Financing cash flows from finance leases 560 500 Right-of-use assets obtained in exchange for lease obligations: Operating leases 8,856 10,337 Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at March 31, 2024 and December 31, 2023 is as follows (in thousands, except as noted): March 31, 2024 December 31, 2023 Operating leases: Other assets $ 137,114 $ 137,405 Accrued expenses 28,916 30,583 Other noncurrent liabilities 114,427 113,681 Total operating lease liabilities 143,343 144,264 Finance leases: Net property, plant and equipment 105,116 112,438 Current portion of long-term debt (a) 10,036 9,702 Long-term debt 98,487 104,484 Total finance lease liabilities 108,523 114,186 Weighted average remaining lease term (in years): Operating leases 12.4 12.2 Finance leases 20.6 20.7 Weighted average discount rate (%): Operating leases 4.63 % 4.74 % Finance leases 5.64 % 4.71 % (a) Balance includes accrued interest of finance lease recorded in Accrued expenses. Maturities of lease liabilities at March 31, 2024 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2024 $ 25,358 $ 13,952 2025 30,524 9,340 2026 22,169 8,690 2027 16,935 8,690 2028 12,707 8,690 Thereafter 106,227 127,855 Total lease payments 213,920 177,217 Less imputed interest 70,577 68,694 Total $ 143,343 $ 108,523 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information: 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 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. Effective January 1, 2024, the Company changed its definition of adjusted EBITDA for financial accounting purposes. The updated definition includes Albemarle’s share of the pre-tax earnings of the Windfield joint venture, whereas the prior definition included Albemarle’s share of Windfield earnings net of tax. This calculation is consistent with the definition of adjusted EBITDA used in the leverage financial covenant calculation in the February 2024 amendment to the 2022 Credit Agreement, which is a material agreement for the Company and aligns the information presented to various stakeholders. This presentation more closely represents the materiality and financial contribution of the strategic investment in Windfield to the Company’s earnings, and more closely represents a measure of EBITDA. The Company’s updated definition of adjusted EBITDA is earnings before interest and financing expenses, income tax expenses, the proportionate share of Windfield income tax expense, 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. Total adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, U.S. GAAP. Total adjusted EBITDA should not be considered as an alternative to Net 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. Adjusted EBITDA for the prior period has been recast to conform to the current year presentation. Segment information for the three-month periods ended March 31, 2024 and 2023 were as follows (in thousands). Three Months Ended 2024 2023 Net sales: Energy Storage $ 800,898 $ 1,943,682 Specialties 316,065 418,778 Ketjen 243,773 217,792 Total net sales $ 1,360,736 $ 2,580,252 Adjusted EBITDA: Energy Storage $ 197,996 $ 1,567,692 Specialties 45,181 162,158 Ketjen 21,979 14,543 Total segment adjusted EBITDA $ 265,156 $ 1,744,393 Depreciation and amortization: Energy Storage $ 87,274 $ 52,162 Specialties 22,437 19,892 Ketjen 12,357 13,143 Total segment depreciation and amortization 122,068 85,197 Corporate 1,683 2,074 Total depreciation and amortization $ 123,751 $ 87,271 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 2024 2023 Total segment adjusted EBITDA $ 265,156 $ 1,744,393 Corporate expenses, net 26,080 17,311 Depreciation and amortization (123,751) (87,271) Interest and financing expenses (37,969) (26,777) Income tax benefit (expense) 3,721 (276,963) Proportionate share of Windfield income tax expense (a) (73,689) (165,985) Acquisition and integration related costs (b) (1,907) (5,108) Restructuring and other charges (c) (36,285) — Non-operating pension and OPEB items 325 (601) (Loss) gain in fair value of public equity securities (d) (43,159) 45,826 Other (e) 23,926 (6,245) Net income attributable to Albemarle Corporation $ 2,448 $ 1,238,580 (a) Albemarle’s 49% ownership interest in the income tax expense of the Windfield joint venture. (b) Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in Selling, general and administrative expenses (“SG&A”). (c) In January 2024, the Company announced it was taking measures to unlock near term cash flow and generate long-term financial flexibility by re-phasing organic growth investments and optimizing its cost structure. As a result, the Company recorded severance costs for employees in Corporate and each of the businesses, and losses related to the cancellation of certain capital expenditure projects. During the three months ended March 31, 2024, $33.5 million of these expenses were recorded in SG&A and $2.8 million were recorded in Other income, net. The severance has primarily been paid, with the remainder expected to be paid in 2024. (d) Loss of $33.7 million recorded in Other income, net for the three months ended March 31, 2024 resulting from the sale of investments in public equity securities and a (loss) gain of ($9.4) million and $45.8 million recorded in Other income, net for the three months ended March 31, 2024 and 2023 , respectively, resulting from the net change in fair value of investments in public equity securities. (e) Included amounts for the three months ended March 31, 2024 recorded in: • Cost of goods sold - $1.4 million of expenses related to non-routine labor and compensation related costs that are outside normal compensation arrangements. • SG&A - $0.1 million of expenses related to certain legal costs. • Other income, net - $17.3 million gain primarily from the sale of assets at a site not part of our operations, an $8.7 million gain from PIK dividends of preferred equity in a Grace subsidiary and a $2.4 million gain primarily resulting from the adjustment of indemnification related to a previously disposed business, partially offset by $2.9 million of charges for asset retirement obligations at a site not part of our operations. Included amounts for the three months ended March 31, 2023 recorded in: • SG&A - $1.9 million of charges primarily for environmental reserves at sites not part of our operations and $0.7 million of facility closure expenses related to offices in Germany. • Other income, net - $3.6 million of charges for asset retirement obligations at a site not part of our operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
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. March 31, 2024 December 31, 2023 Recorded Fair Value Recorded Fair Value (In thousands) Long-term debt $ 3,543,472 $ 3,350,906 $ 4,186,532 $ 4,021,693 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 Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging . We had outstanding designated foreign currency forward contracts with notional values totaling the equivalent of $907.4 million and $994.5 million at March 31, 2024 and December 31, 2023, 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 March 31, 2024 and December 31, 2023, we had outstanding non-designated foreign currency forward contracts with notional values totaling $5.5 billion and $7.1 billion, respectively, hedging our exposure to various currencies including the Chinese Renminbi, Euro, Australian Dollar and Chilean Peso. The following table summarizes the fair value of our foreign currency forward contracts included in the consolidated balance sheets as of March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Assets Liabilities Assets Liabilities Designated as hedging instruments Other current assets $ — $ — $ 3,489 $ — Other assets — — 11,704 — Accrued expenses — 3,954 — 446 Other noncurrent liabilities — 6,291 — — Total designated as hedging instruments — 10,245 15,193 446 Not designated as hedging instruments Other current assets 2,239 — 2,636 — Accrued expenses — 6,935 — 5,306 Total not designated as hedging instruments 2,239 6,935 2,636 5,306 Total $ 2,239 $ 17,180 $ 17,829 $ 5,752 The following table summarizes the net (losses) gains recognized for our foreign currency forward contracts during the three-month periods ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Designated as hedging instruments (Loss) income recognized in Other comprehensive (loss) income $ (21,342) $ 1,101 Loss recognized in Other income, net $ (2,682) $ — Not designated as hedging instruments Income recognized in Other income, net (a) $ 14,822 $ 35,233 (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 three-month periods ended March 31, 2024 and 2023, we recorded net cash receipts of $14.5 million and $41.5 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 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) $ 297,987 $ — $ — $ 297,987 Investments under executive deferred compensation plan (b) $ 32,884 $ 32,884 $ — $ — Public equity securities (c) $ 44,234 $ 44,234 $ — $ — Private equity securities measured at net asset value (d)(e) $ 4,535 $ — $ — $ — Foreign currency forward contracts (f) $ 2,239 $ — $ 2,239 $ — Liabilities: Obligations under executive deferred compensation plan (b) $ 32,884 $ 32,884 $ — $ — Foreign currency forward contracts (f) $ 17,180 $ — $ 17,180 $ — December 31, 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) $ 289,307 $ — $ — $ 289,307 Investments under executive deferred compensation plan (b) $ 33,564 $ 33,564 $ — $ — Public equity securities (c) $ 168,928 $ 168,928 $ — $ — Private equity securities measured at net asset value (d)(e) $ 4,536 $ — $ — $ — Foreign currency forward contracts (f) $ 17,829 $ — $ 17,829 $ — Liabilities: Obligations under executive deferred compensation plan (b) $ 33,564 $ 33,564 $ — $ — Foreign currency forward contracts (f) $ 5,752 $ — $ 5,752 $ — (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. See Note 3, “Investments,” for further details. (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, 2023 $ 289,307 PIK dividends 8,680 Ending balance at March 31, 2024 $ 297,987 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Sales to unconsolidated affiliates $ 1,958 $ 7,100 Purchases from unconsolidated affiliates (a) $ 137,197 $ 1,072,544 (a) Purchases from unconsolidated affiliates primarily relate to spodumene purchased from the Company’s Windfield joint venture. The decrease from prior year primarily related to the lower lithium market prices in recent months. Our consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands): March 31, 2024 December 31, 2023 Receivables from unconsolidated affiliates $ 1,511 $ 15,992 Payables to unconsolidated affiliates (a) $ 129,613 $ 550,186 (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 | 3 Months Ended |
Mar. 31, 2024 | |
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): Three Months Ended 2024 2023 Supplemental non-cash disclosure related to investing and financing activities: Capital expenditures included in Accounts payable $ 315,895 $ 347,165 Common stock issued for annual incentive bonus plan (a) 11,545 — (a) During the three-month period ended March 31, 2024 the Company issued 95,003 shares of common stock to certain employees in lieu of cash as payment of a portion of their 2023 annual incentive bonus plan. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
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 August 2023, the FASB issued guidance which will require a joint venture to recognize and initially measure its assets, including goodwill, and liabilities using a new basis of accounting upon formation. Initial measurement of a joint venture’s total net assets will be equal to the fair value of one hundred percent of the joint venture’s equity. In addition, a joint venture will be permitted to apply the measurement period guidance of ASC 805-10 if the initial accounting for the the joint venture formation is incomplete by the end of the reporting period in which the formation occurs. This guidance is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. The Company currently does not expect this guidance to have a significant impact on its consolidated financial statements. In November 2023, the FASB issued guidance to update qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied retrospectively. The Company currently does not expect this guidance to have a significant impact on its consolidated financial statement disclosures. In December 2023, the FASB issued guidance to require qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 August 2023, the FASB issued guidance which will require a joint venture to recognize and initially measure its assets, including goodwill, and liabilities using a new basis of accounting upon formation. Initial measurement of a joint venture’s total net assets will be equal to the fair value of one hundred percent of the joint venture’s equity. In addition, a joint venture will be permitted to apply the measurement period guidance of ASC 805-10 if the initial accounting for the the joint venture formation is incomplete by the end of the reporting period in which the formation occurs. This guidance is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. The Company currently does not expect this guidance to have a significant impact on its consolidated financial statements. In November 2023, the FASB issued guidance to update qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied retrospectively. The Company currently does not expect this guidance to have a significant impact on its consolidated financial statement disclosures. In December 2023, the FASB issued guidance to require qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Breakdown of Inventories | The following table provides a breakdown of inventories at March 31, 2024 and December 31, 2023 (in thousands): March 31, December 31, 2024 2023 Finished goods $ 1,349,770 $ 1,624,893 Raw materials and work in process (a) 414,204 401,050 Stores, supplies and other 140,853 135,344 Total (b) $ 1,904,827 $ 2,161,287 (a) Includes $241.0 million and $213.4 million at March 31, 2024 and December 31, 2023, respectively, of work in process in our Energy Storage segment. (b) During the year ended December 31, 2023, the Company recorded a $604.1 million charge in Cost of goods sold to reduce the value of certain spodumene and finished goods to their net realizable value following the decline in lithium market pricing at the end of the year. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Income of Unconsolidated Investments | The following table details the Company’s equity in net income of unconsolidated investments (net of tax) for the three-month periods ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Windfield $ 172,679 $ 387,299 Other joint ventures 7,821 8,889 Total $ 180,500 $ 396,188 |
Schedule Of Assets Liabilities And Results Of Operations For Unconsolidated Joint Ventures | The following table summarizes the unaudited results of operations for the Windfield 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 March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Net sales $ 190,009 $ 1,959,298 Gross profit 149,982 1,901,700 Income before income taxes 94,630 1,784,150 Net income 66,411 1,248,902 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table summarizes the changes in goodwill by reportable segment for the three-month period ended March 31, 2024 (in thousands): Energy Storage Specialties Ketjen Total Balance at December 31, 2023 $ 1,424,484 $ 32,639 $ 172,606 $ 1,629,729 Foreign currency translation adjustments and other (12,950) (28) (3,217) (16,195) Balance at March 31, 2024 $ 1,411,534 $ 32,611 $ 169,389 $ 1,613,534 |
Other Intangibles | The following table summarizes the changes in other intangibles and related accumulated amortization for the three-month period ended March 31, 2024 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2023 $ 417,803 $ 13,405 $ 46,287 $ 34,649 $ 512,144 Retirements — (2,309) (14,506) (4,409) (21,224) Foreign currency translation adjustments and other (6,236) (227) (519) (927) (7,909) Balance at March 31, 2024 $ 411,567 $ 10,869 $ 31,262 $ 29,313 $ 483,011 Accumulated Amortization Balance at December 31, 2023 $ (204,481) $ (3,673) $ (26,758) $ (15,374) $ (250,286) Amortization (5,012) — (647) (227) (5,886) Retirements — 2,309 14,506 4,409 21,224 Foreign currency translation adjustments and other 2,956 40 360 336 3,692 Balance at March 31, 2024 $ (206,537) $ (1,324) $ (12,539) $ (10,856) $ (231,256) Net Book Value at December 31, 2023 $ 213,322 $ 9,732 $ 19,529 $ 19,275 $ 261,858 Net Book Value at March 31, 2024 $ 205,030 $ 9,545 $ 18,723 $ 18,457 $ 251,755 (a) Net Book Value includes only indefinite-lived intangible assets. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt at March 31, 2024 and December 31, 2023 consisted of the following (in thousands): March 31, December 31, 2024 2023 1.125% notes due 2025 $ 408,732 $ 416,501 1.625% notes due 2028 541,900 552,200 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 Commercial paper notes — 620,000 Interest-free loan 300,000 300,000 Variable-rate foreign bank loans 28,398 30,197 Finance lease obligations 103,563 110,245 Other 22,000 22,000 Unamortized discount and debt issuance costs (101,676) (105,992) Total long-term debt 3,524,529 4,166,763 Less amounts due within one year 5,076 625,761 Long-term debt, less current portion $ 3,519,453 $ 3,541,002 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity in Recorded Environmental Liabilities | The following activity was recorded in environmental liabilities for the three months ended March 31, 2024 (in thousands): Beginning balance at December 31, 2023 $ 34,149 Expenditures (678) Accretion of discount 289 Liability releases (1,924) Foreign currency translation adjustments and other (285) Ending balance at March 31, 2024 31,551 Less amounts reported in Accrued expenses 6,788 Amounts reported in Other noncurrent liabilities $ 24,763 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 (net of deferred income taxes) consisted of the following during the periods indicated below (in thousands): Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Foreign Currency Translation and Other Cash Flow Hedge (a) Total Foreign Currency Translation and Other Cash Flow Hedge (a) Total Balance, beginning of period $ (536,601) $ 8,075 $ (528,526) $ (562,886) $ 2,224 $ (560,662) Other comprehensive (loss) income before reclassifications (50,237) (21,342) (71,579) 46,200 1,101 47,301 Amounts reclassified from accumulated other comprehensive loss 17 2,682 2,699 16 — 16 Other comprehensive (loss) income, net of tax (50,220) (18,660) (68,880) 46,216 1,101 47,317 Other comprehensive income attributable to noncontrolling interests 201 — 201 8 — 8 Balance, end of period $ (586,620) $ (10,585) $ (597,205) $ (516,662) $ 3,325 $ (513,337) (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 13, “Fair Value of Financial Instruments,” for additional information. |
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 (loss) income for the three-month periods ended March 31, 2024 and 2023 is provided in the following tables (in thousands): Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Foreign Currency Translation and Other Cash Flow Hedge Total Foreign Currency Translation and Other Cash Flow Hedge Total Other comprehensive (loss) income, before tax $ (50,217) $ (26,657) $ (76,874) $ 45,978 $ 1,101 $ 47,079 Income tax (expense) benefit (3) 7,997 7,994 238 — 238 Other comprehensive (loss) income, net of tax $ (50,220) $ (18,660) $ (68,880) $ 46,216 $ 1,101 $ 47,317 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 periods ended March 31, 2024 and 2023 were as follows (in thousands): Three Months Ended 2024 2023 Pension Benefits Cost (Credit): Service cost $ 1,566 $ 1,321 Interest cost 8,145 8,542 Expected return on assets (8,830) (8,409) Amortization of prior service benefit 20 20 Total net pension benefits cost $ 901 $ 1,474 Postretirement Benefits Cost: Service cost $ 12 $ 12 Interest cost 360 468 Total net postretirement benefits cost $ 372 $ 480 Total net pension and postretirement benefits cost $ 1,273 $ 1,954 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earning Per Share | Basic and diluted earnings per share for the three-month periods ended March 31, 2024 and 2023 are calculated as follows (in thousands, except per share amounts): Three Months Ended 2024 2023 Basic (loss) earnings per share Numerator: Net income attributable to Albemarle Corporation $ 2,448 $ 1,238,580 Mandatory convertible preferred stock dividends (11,584) — Net (loss) income attributable to Albemarle Corporation common shareholders $ (9,136) $ 1,238,580 Denominator: Weighted-average common shares for basic (loss) earnings per share 117,451 117,232 Basic (loss) earnings per share $ (0.08) $ 10.57 Diluted (loss) earnings per share Numerator: Net income attributable to Albemarle Corporation $ 2,448 $ 1,238,580 Mandatory convertible preferred stock dividends (11,584) — Net (loss) income attributable to Albemarle Corporation common shareholders $ (9,136) $ 1,238,580 Denominator: Weighted-average common shares for basic (loss) earnings per share 117,451 117,232 Incremental shares under stock compensation plans — 609 Weighted-average common shares for diluted (loss) earnings per share 117,451 117,841 Diluted (loss) earnings per share $ (0.08) $ 10.51 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Lease, Cost | The following table provides details of our lease contracts for the three-month periods ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Operating lease cost $ 9,546 $ 11,751 Finance lease cost: Amortization of right of use assets 1,308 845 Interest on lease liabilities 1,459 1,059 Total finance lease cost 2,767 1,904 Short-term lease cost 6,018 5,060 Variable lease cost 7,797 3,509 Total lease cost $ 26,128 $ 22,224 Supplemental cash flow information related to our lease contracts for the three-month periods ended March 31, 2024 and 2023 is as follows (in thousands): Three Months Ended 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,848 $ 10,974 Operating cash flows from finance leases 1,018 1,203 Financing cash flows from finance leases 560 500 Right-of-use assets obtained in exchange for lease obligations: Operating leases 8,856 10,337 |
Supplemental Balance Sheet Information related to Leases | Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at March 31, 2024 and December 31, 2023 is as follows (in thousands, except as noted): March 31, 2024 December 31, 2023 Operating leases: Other assets $ 137,114 $ 137,405 Accrued expenses 28,916 30,583 Other noncurrent liabilities 114,427 113,681 Total operating lease liabilities 143,343 144,264 Finance leases: Net property, plant and equipment 105,116 112,438 Current portion of long-term debt (a) 10,036 9,702 Long-term debt 98,487 104,484 Total finance lease liabilities 108,523 114,186 Weighted average remaining lease term (in years): Operating leases 12.4 12.2 Finance leases 20.6 20.7 Weighted average discount rate (%): Operating leases 4.63 % 4.74 % Finance leases 5.64 % 4.71 % (a) Balance includes accrued interest of finance lease recorded in Accrued expenses. |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities at March 31, 2024 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2024 $ 25,358 $ 13,952 2025 30,524 9,340 2026 22,169 8,690 2027 16,935 8,690 2028 12,707 8,690 Thereafter 106,227 127,855 Total lease payments 213,920 177,217 Less imputed interest 70,577 68,694 Total $ 143,343 $ 108,523 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities at March 31, 2024 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2024 $ 25,358 $ 13,952 2025 30,524 9,340 2026 22,169 8,690 2027 16,935 8,690 2028 12,707 8,690 Thereafter 106,227 127,855 Total lease payments 213,920 177,217 Less imputed interest 70,577 68,694 Total $ 143,343 $ 108,523 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Reportable Segments Summarized Financial Information | Segment information for the three-month periods ended March 31, 2024 and 2023 were as follows (in thousands). Three Months Ended 2024 2023 Net sales: Energy Storage $ 800,898 $ 1,943,682 Specialties 316,065 418,778 Ketjen 243,773 217,792 Total net sales $ 1,360,736 $ 2,580,252 Adjusted EBITDA: Energy Storage $ 197,996 $ 1,567,692 Specialties 45,181 162,158 Ketjen 21,979 14,543 Total segment adjusted EBITDA $ 265,156 $ 1,744,393 Depreciation and amortization: Energy Storage $ 87,274 $ 52,162 Specialties 22,437 19,892 Ketjen 12,357 13,143 Total segment depreciation and amortization 122,068 85,197 Corporate 1,683 2,074 Total depreciation and amortization $ 123,751 $ 87,271 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 2024 2023 Total segment adjusted EBITDA $ 265,156 $ 1,744,393 Corporate expenses, net 26,080 17,311 Depreciation and amortization (123,751) (87,271) Interest and financing expenses (37,969) (26,777) Income tax benefit (expense) 3,721 (276,963) Proportionate share of Windfield income tax expense (a) (73,689) (165,985) Acquisition and integration related costs (b) (1,907) (5,108) Restructuring and other charges (c) (36,285) — Non-operating pension and OPEB items 325 (601) (Loss) gain in fair value of public equity securities (d) (43,159) 45,826 Other (e) 23,926 (6,245) Net income attributable to Albemarle Corporation $ 2,448 $ 1,238,580 (a) Albemarle’s 49% ownership interest in the income tax expense of the Windfield joint venture. (b) Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in Selling, general and administrative expenses (“SG&A”). (c) In January 2024, the Company announced it was taking measures to unlock near term cash flow and generate long-term financial flexibility by re-phasing organic growth investments and optimizing its cost structure. As a result, the Company recorded severance costs for employees in Corporate and each of the businesses, and losses related to the cancellation of certain capital expenditure projects. During the three months ended March 31, 2024, $33.5 million of these expenses were recorded in SG&A and $2.8 million were recorded in Other income, net. The severance has primarily been paid, with the remainder expected to be paid in 2024. (d) Loss of $33.7 million recorded in Other income, net for the three months ended March 31, 2024 resulting from the sale of investments in public equity securities and a (loss) gain of ($9.4) million and $45.8 million recorded in Other income, net for the three months ended March 31, 2024 and 2023 , respectively, resulting from the net change in fair value of investments in public equity securities. (e) Included amounts for the three months ended March 31, 2024 recorded in: • Cost of goods sold - $1.4 million of expenses related to non-routine labor and compensation related costs that are outside normal compensation arrangements. • SG&A - $0.1 million of expenses related to certain legal costs. • Other income, net - $17.3 million gain primarily from the sale of assets at a site not part of our operations, an $8.7 million gain from PIK dividends of preferred equity in a Grace subsidiary and a $2.4 million gain primarily resulting from the adjustment of indemnification related to a previously disposed business, partially offset by $2.9 million of charges for asset retirement obligations at a site not part of our operations. Included amounts for the three months ended March 31, 2023 recorded in: • SG&A - $1.9 million of charges primarily for environmental reserves at sites not part of our operations and $0.7 million of facility closure expenses related to offices in Germany. • Other income, net - $3.6 million of charges for asset retirement obligations at a site not part of our operations. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. March 31, 2024 December 31, 2023 Recorded Fair Value Recorded Fair Value (In thousands) Long-term debt $ 3,543,472 $ 3,350,906 $ 4,186,532 $ 4,021,693 |
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 March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 December 31, 2023 Assets Liabilities Assets Liabilities Designated as hedging instruments Other current assets $ — $ — $ 3,489 $ — Other assets — — 11,704 — Accrued expenses — 3,954 — 446 Other noncurrent liabilities — 6,291 — — Total designated as hedging instruments — 10,245 15,193 446 Not designated as hedging instruments Other current assets 2,239 — 2,636 — Accrued expenses — 6,935 — 5,306 Total not designated as hedging instruments 2,239 6,935 2,636 5,306 Total $ 2,239 $ 17,180 $ 17,829 $ 5,752 |
Derivative Instruments, Losses | The following table summarizes the net (losses) gains recognized for our foreign currency forward contracts during the three-month periods ended March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Designated as hedging instruments (Loss) income recognized in Other comprehensive (loss) income $ (21,342) $ 1,101 Loss recognized in Other income, net $ (2,682) $ — Not designated as hedging instruments Income recognized in Other income, net (a) $ 14,822 $ 35,233 (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) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023 (in thousands): March 31, 2024 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) $ 297,987 $ — $ — $ 297,987 Investments under executive deferred compensation plan (b) $ 32,884 $ 32,884 $ — $ — Public equity securities (c) $ 44,234 $ 44,234 $ — $ — Private equity securities measured at net asset value (d)(e) $ 4,535 $ — $ — $ — Foreign currency forward contracts (f) $ 2,239 $ — $ 2,239 $ — Liabilities: Obligations under executive deferred compensation plan (b) $ 32,884 $ 32,884 $ — $ — Foreign currency forward contracts (f) $ 17,180 $ — $ 17,180 $ — December 31, 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) $ 289,307 $ — $ — $ 289,307 Investments under executive deferred compensation plan (b) $ 33,564 $ 33,564 $ — $ — Public equity securities (c) $ 168,928 $ 168,928 $ — $ — Private equity securities measured at net asset value (d)(e) $ 4,536 $ — $ — $ — Foreign currency forward contracts (f) $ 17,829 $ — $ 17,829 $ — Liabilities: Obligations under executive deferred compensation plan (b) $ 33,564 $ 33,564 $ — $ — Foreign currency forward contracts (f) $ 5,752 $ — $ 5,752 $ — (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. See Note 3, “Investments,” for further details. (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, 2023 $ 289,307 PIK dividends 8,680 Ending balance at March 31, 2024 $ 297,987 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 2023 Sales to unconsolidated affiliates $ 1,958 $ 7,100 Purchases from unconsolidated affiliates (a) $ 137,197 $ 1,072,544 (a) Purchases from unconsolidated affiliates primarily relate to spodumene purchased from the Company’s Windfield joint venture. The decrease from prior year primarily related to the lower lithium market prices in recent months. Our consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands): March 31, 2024 December 31, 2023 Receivables from unconsolidated affiliates $ 1,511 $ 15,992 Payables to unconsolidated affiliates (a) $ 129,613 $ 550,186 (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) | 3 Months Ended |
Mar. 31, 2024 | |
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): Three Months Ended 2024 2023 Supplemental non-cash disclosure related to investing and financing activities: Capital expenditures included in Accounts payable $ 315,895 $ 347,165 Common stock issued for annual incentive bonus plan (a) 11,545 — (a) During the three-month period ended March 31, 2024 the Company issued 95,003 shares of common stock to certain employees in lieu of cash as payment of a portion of their 2023 annual incentive bonus plan. |
Inventories - Breakdown of inve
Inventories - Breakdown of inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,349,770 | $ 1,624,893 |
Raw materials and work in process | 414,204 | 401,050 |
Stores, supplies and other | 140,853 | 135,344 |
Total inventories | $ 1,904,827 | $ 2,161,287 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Inventory [Line Items] | ||
Inventory net realizable value adjustment | $ 604.1 | |
Other variable interest entities | ||
Inventory [Line Items] | ||
Equity Method Investment, Deferred Gain on Sale | $ 408.5 | 559.6 |
Energy Storage | ||
Inventory [Line Items] | ||
Work in process related to Lithium | $ 241 | $ 213.4 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 18, 2023 | Jun. 01, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule of Investments [Line Items] | |||||
Income (Loss) from Equity Method Investments | $ 180,500 | $ 396,188 | |||
Net sales | 1,360,736 | 2,580,252 | |||
Gross profit | 38,938 | 1,276,540 | |||
Net income | 16,647 | 1,276,703 | |||
Equity Securities, Purchases | 121,900 | ||||
Mark-to-market (loss) gain on public equity securities | (9,400) | 45,800 | |||
Proceeds from sale of equity securities | 81,500 | ||||
Equity securities realized loss | 33,700 | ||||
Fine Chemistry Services | |||||
Schedule of Investments [Line Items] | |||||
Preferred Stock, Value, Outstanding | $ 270,000 | 298,000 | $ 289,300 | ||
Preferred Stock, Dividend Rate, Percentage | 12% | ||||
Preferred equity redemption original value threshold | 200% | ||||
Significant Unconsolidated Joint Ventures | |||||
Schedule of Investments [Line Items] | |||||
Net sales | 190,009 | 1,959,298 | |||
Gross profit | 149,982 | 1,901,700 | |||
Income before income taxes | 94,630 | 1,784,150 | |||
Net income | 66,411 | 1,248,902 | |||
Windfield Holdings | |||||
Schedule of Investments [Line Items] | |||||
Income (Loss) from Equity Method Investments | $ 172,679 | 387,299 | |||
Equity method investment, ownership percentage | 49% | ||||
Other Joint Ventures | |||||
Schedule of Investments [Line Items] | |||||
Income (Loss) from Equity Method Investments | $ 7,821 | $ 8,889 | |||
Windfield Holdings | |||||
Schedule of Investments [Line Items] | |||||
Carrying value of unconsolidated investment | $ 713,600 | 712,000 | |||
Windfield Holdings | Windfield Holdings | |||||
Schedule of Investments [Line Items] | |||||
Equity method investment, ownership percentage | 49% | ||||
Mineral Resources Limited | |||||
Schedule of Investments [Line Items] | |||||
Capital costs committed | 380,000 | ||||
Capital costs committed, consideration | $ 180,000 | ||||
Kemerton Plant | |||||
Schedule of Investments [Line Items] | |||||
Ownership percentage purchased | 40% | ||||
Mineral Resources Limited Wodgina Project | |||||
Schedule of Investments [Line Items] | |||||
Ownership percentage | 50% |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Changes in Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 1,629,729 |
Foreign currency translation adjustments and other | (16,195) |
Balance at end of period | 1,613,534 |
Reportable Segments | Energy Storage | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 1,424,484 |
Foreign currency translation adjustments and other | (12,950) |
Balance at end of period | 1,411,534 |
Reportable Segments | Specialties | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 32,639 |
Foreign currency translation adjustments and other | (28) |
Balance at end of period | 32,611 |
Reportable Segments | Ketjen | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 172,606 |
Foreign currency translation adjustments and other | (3,217) |
Balance at end of period | $ 169,389 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Other Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | $ 512,144 | |
Retirements | (21,224) | |
Foreign currency translation adjustments and other | (7,909) | |
Gross Asset Value, End of Period | 483,011 | |
Accumulated Amortization, Beginning of Period | (250,286) | |
Amortization | (5,886) | |
Retirements | 21,224 | |
Foreign currency translation adjustments and other | 3,692 | |
Accumulated Amortization, End of Period | (231,256) | |
Net Book Value | 251,755 | $ 261,858 |
Customer Lists and Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 417,803 | |
Retirements | 0 | |
Foreign currency translation adjustments and other | (6,236) | |
Gross Asset Value, End of Period | 411,567 | |
Accumulated Amortization, Beginning of Period | (204,481) | |
Amortization | (5,012) | |
Retirements | 0 | |
Foreign currency translation adjustments and other | 2,956 | |
Accumulated Amortization, End of Period | (206,537) | |
Net Book Value | 205,030 | 213,322 |
Trade Names and Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 13,405 | |
Retirements | (2,309) | |
Foreign currency translation adjustments and other | (227) | |
Gross Asset Value, End of Period | 10,869 | |
Accumulated Amortization, Beginning of Period | (3,673) | |
Amortization | 0 | |
Retirements | 2,309 | |
Foreign currency translation adjustments and other | 40 | |
Accumulated Amortization, End of Period | (1,324) | |
Net Book Value | 9,545 | 9,732 |
Patents and Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 46,287 | |
Retirements | (14,506) | |
Foreign currency translation adjustments and other | (519) | |
Gross Asset Value, End of Period | 31,262 | |
Accumulated Amortization, Beginning of Period | (26,758) | |
Amortization | (647) | |
Retirements | 14,506 | |
Foreign currency translation adjustments and other | 360 | |
Accumulated Amortization, End of Period | (12,539) | |
Net Book Value | 18,723 | 19,529 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 34,649 | |
Retirements | (4,409) | |
Foreign currency translation adjustments and other | (927) | |
Gross Asset Value, End of Period | 29,313 | |
Accumulated Amortization, Beginning of Period | (15,374) | |
Amortization | (227) | |
Retirements | 4,409 | |
Foreign currency translation adjustments and other | 336 | |
Accumulated Amortization, End of Period | (10,856) | |
Net Book Value | $ 18,457 | $ 19,275 |
Long-Term Debt (Details)
Long-Term Debt (Details) | 3 Months Ended | 6 Months Ended | ||||||
Oct. 28, 2022 USD ($) | Sep. 30, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 USD ($) | Jun. 30, 2025 | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | $ 3,524,529,000 | $ 4,166,763,000 | ||||||
Unamortized discount and debt issuance costs | (101,676,000) | (105,992,000) | ||||||
Current portion of long-term debt | 5,076,000 | 625,761,000 | ||||||
Long-term debt | 3,519,453,000 | 3,541,002,000 | ||||||
Repayments of commercial paper | 620,000,000 | |||||||
2022 Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,500,000,000 | |||||||
Interest rate on amount borrowed | 1.125% | |||||||
Borrowings outstanding | $ 0 | |||||||
2022 Credit Agreement | Secured Overnight Financing Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on amount borrowed | 0.10% | |||||||
2022 Credit Agreement | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on amount borrowed | 0.91% | |||||||
2022 Credit Agreement | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on amount borrowed | 1.375% | |||||||
Credit facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
debt covenant ratio, maximum debt to ebitda | 3.50 | |||||||
Credit facilities | Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
debt covenant ratio, maximum debt to ebitda | 3.50 | 4 | 5.50 | 5 | 3.75 | |||
Debt Covenant Ratio, Minimum EBITDA to Interest Charges | 3 | 2 | ||||||
Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Covenant | $ 500,000,000 | |||||||
Unsecured debt | 1.125% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | $ 408,732,000 | $ 416,501,000 | ||||||
Debt instrument, interest rate | 1.125% | 1.125% | ||||||
Unsecured debt | 1.625% Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | $ 541,900,000 | $ 552,200,000 | ||||||
Debt instrument, interest rate | 1.625% | 1.625% | ||||||
Senior notes | 3.45% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | $ 171,612,000 | $ 171,612,000 | ||||||
Debt instrument, interest rate | 3.45% | 3.45% | ||||||
Senior notes | 4.65% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | $ 650,000,000 | $ 650,000,000 | ||||||
Debt instrument, interest rate | 4.65% | 4.65% | ||||||
Senior notes | 5.05% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | $ 600,000,000 | $ 600,000,000 | ||||||
Debt instrument, interest rate | 5.05% | 5.05% | ||||||
Senior notes | 5.45% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | $ 350,000,000 | $ 350,000,000 | ||||||
Debt instrument, interest rate | 5.45% | 5.45% | ||||||
Senior notes | 5.65% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | $ 450,000,000 | $ 450,000,000 | ||||||
Debt instrument, interest rate | 5.65% | 5.65% | ||||||
Commercial paper notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | $ 0 | $ 620,000,000 | ||||||
Interest-free loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | 300,000,000 | 300,000,000 | ||||||
Variable-rate foreign bank loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | 28,398,000 | 30,197,000 | ||||||
Finance lease obligations | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | 103,563,000 | 110,245,000 | ||||||
Other | ||||||||
Debt Instrument [Line Items] | ||||||||
Total long-term Debt | $ 22,000,000 | $ 22,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Activity in Recorded Environmental Liabilities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Balance at beginning of period | $ 34,149 |
Expenditures | (678) |
Accretion of discount | 289 |
Liability releases | (1,924) |
Foreign currency translation adjustments and other | (285) |
Balance at end of period | 31,551 |
Less amounts reported in Accrued expenses | 6,788 |
Amounts reported in Other noncurrent liabilities | $ 24,763 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Loss Contingencies [Line Items] | ||
Environmental remediation liabilities - discounted | $ 25.3 | $ 27.4 |
Accrual for environmental loss contingencies - weighted-average discount rate | 3.60% | 3.70% |
Environmental remediation liabilities - undiscounted | $ 52.5 | $ 55.4 |
Potential revision on future environmental remediation costs before tax | 48 | |
Other noncurrent liabilities | ||
Loss Contingencies [Line Items] | ||
Tax indemnification liability | $ 12.2 | $ 14.5 |
Equity - Additional Information
Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||
Aug. 15, 2024 $ / shares | May 15, 2024 $ / shares | Mar. 08, 2024 d $ / shares shares | Mar. 31, 2024 USD ($) shares | Mar. 31, 2023 USD ($) | Feb. 22, 2024 $ / shares | Dec. 31, 2023 shares | |
Class of Stock [Line Items] | |||||||
Cash dividend, amount per share (in dollars per share) | $ / shares | $ 0.40 | ||||||
Preferred stock, issued (in shares) | 2,300,000 | 0 | |||||
Proceeds from issuance of mandatory convertible preferred stock, net of issuance costs | $ | $ 2,236,750 | $ 0 | |||||
Preferred stock, outstanding (in shares) | 2,300,000 | 0 | |||||
Depositary shares | |||||||
Class of Stock [Line Items] | |||||||
Shares, Issued | 46,000,000 | ||||||
Preferred stock conversion ratio | 0.05 | ||||||
Series A Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, issued (in shares) | 2,300,000 | ||||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 1,000 | ||||||
Preferred Stock, Dividend Rate, Percentage | 7.25% | ||||||
Convertible Preferred Stock Threshold Trading Days | d | 20 | ||||||
Series A Preferred Stock | Minimum | |||||||
Class of Stock [Line Items] | |||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 7.618 | ||||||
Series A Preferred Stock | Maximum | |||||||
Class of Stock [Line Items] | |||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 9.140 | ||||||
Series A Preferred Stock | Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Preferred Stock, Dividends Per Share, Declared | $ / shares | $ 18.125 | $ 17.12 |
Equity - Components and Activit
Equity - Components and Activity in Accumulated Other Comprehensive (Loss) Income Net of Deferred Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | $ 9,665,099 | $ 8,190,847 |
Other comprehensive (loss) income before reclassifications | (71,579) | 47,301 |
Amounts reclassified from accumulated other comprehensive loss | 2,699 | 16 |
Total other comprehensive (loss) income, net of tax | (68,880) | 47,317 |
Other comprehensive income attributable to noncontrolling interests | 201 | 8 |
Ending Balance | 11,799,719 | 9,459,070 |
Foreign Currency Translation and Other | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (536,601) | (562,886) |
Other comprehensive (loss) income before reclassifications | (50,237) | 46,200 |
Amounts reclassified from accumulated other comprehensive loss | 17 | 16 |
Total other comprehensive (loss) income, net of tax | (50,220) | 46,216 |
Other comprehensive income attributable to noncontrolling interests | 201 | 8 |
Ending Balance | (586,620) | (516,662) |
Cash Flow Hedge | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | 8,075 | 2,224 |
Other comprehensive (loss) income before reclassifications | (21,342) | 1,101 |
Amounts reclassified from accumulated other comprehensive loss | 2,682 | 0 |
Total other comprehensive (loss) income, net of tax | (18,660) | 1,101 |
Other comprehensive income attributable to noncontrolling interests | 0 | 0 |
Ending Balance | (10,585) | 3,325 |
Accumulated Other Comprehensive (Loss) Income | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (528,526) | (560,662) |
Total other comprehensive (loss) income, net of tax | (68,679) | 47,325 |
Ending Balance | $ (597,205) | $ (513,337) |
Equity - Amount of Income Tax B
Equity - Amount of Income Tax Benefit (Expense) Allocated to Component of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Other comprehensive income (loss), before tax | $ (76,874) | $ 47,079 |
Income tax (expense) benefit | 7,994 | 238 |
Total other comprehensive (loss) income, net of tax | (68,880) | 47,317 |
Foreign Currency Translation and Other | ||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Other comprehensive income (loss), before tax | (50,217) | 45,978 |
Income tax (expense) benefit | (3) | 238 |
Total other comprehensive (loss) income, net of tax | (50,220) | 46,216 |
Cash Flow Hedge | ||
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||
Other comprehensive income (loss), before tax | (26,657) | 1,101 |
Income tax (expense) benefit | 7,997 | 0 |
Total other comprehensive (loss) income, net of tax | $ (18,660) | $ 1,101 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Total net pension and postretirement benefits cost | $ 1,273 | $ 1,954 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1,566 | 1,321 |
Interest cost | 8,145 | 8,542 |
Expected return on assets | (8,830) | (8,409) |
Amortization of prior service benefit | 20 | 20 |
Total net pension and postretirement benefits cost | 901 | 1,474 |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 12 | 12 |
Interest cost | 360 | 468 |
Total net pension and postretirement benefits cost | $ 372 | $ 480 |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefits - Pension and Postretirement Plan Contributions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Employer contributions | $ 4.8 | $ 2.8 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 2.20% | 23.90% |
Federal statutory rate | 21% |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Basic earnings per share from continuing operations | ||
Net income attributable to Albemarle Corporation | $ 2,448 | $ 1,238,580 |
Dividends, Preferred Stock | (11,584) | 0 |
Net (loss) income attributable to Albemarle Corporation common shareholders | $ (9,136) | $ 1,238,580 |
Weighted-average common shares for basic earnings per share (in shares) | 117,451 | 117,232 |
Basic (loss) earnings per share attributable to common shareholders (in dollars per share) | $ (0.08) | $ 10.57 |
Diluted earnings per share from continuing operations | ||
Net income attributable to Albemarle Corporation | $ 2,448 | $ 1,238,580 |
Dividends, Preferred Stock | (11,584) | 0 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (9,136) | $ 1,238,580 |
Weighted-average common shares for basic earnings per share (in shares) | 117,451 | 117,232 |
Incremental shares under stock compensation plans (in shares) | 0 | 609 |
Weighted-average common shares outstanding - diluted (in shares) | 117,451 | 117,841 |
Diluted (loss) earnings per share attributable to common shareholders (in dollars per share) | $ (0.08) | $ 10.51 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 shares | |
Redeemable Preferred Stock | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Antidilutive securities excluded from computation of earnings per share | 6,270,968 |
Share-Based Payment Arrangement | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Antidilutive securities excluded from computation of earnings per share | 216,568 |
Leases - Additional Information
Leases - Additional Information (Details) | Mar. 31, 2024 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 9,546 | $ 11,751 |
Amortization of right of use assets | 1,308 | 845 |
Interest on lease liabilities | 1,459 | 1,059 |
Total finance lease cost | 2,767 | 1,904 |
Short-term lease cost | 6,018 | 5,060 |
Variable lease cost | 7,797 | 3,509 |
Total lease cost | $ 26,128 | $ 22,224 |
Leases - Leases Cash Flow (Deta
Leases - Leases Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 8,848 | $ 10,974 |
Operating cash flows from finance leases | 1,018 | 1,203 |
Financing cash flows from finance leases | 560 | 500 |
Right-of-use asset obtained in exchange for operating leases | $ 8,856 | $ 10,337 |
Leases - Leases Balance Sheet (
Leases - Leases Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Other assets | $ 137,114 | $ 137,405 |
Accrued expenses | 28,916 | 30,583 |
Other noncurrent liabilities | 114,427 | 113,681 |
Total operating lease liabilities | 143,343 | 144,264 |
Net property, plant and equipment | 105,116 | 112,438 |
Current portion of long-term debt | 10,036 | 9,702 |
Long-term debt | 98,487 | 104,484 |
Total finance lease liabilities | $ 108,523 | $ 114,186 |
Weighted average remaining lease term, operating leases | 12 years 4 months 24 days | 12 years 2 months 12 days |
Weighted average remaining lease term, finance leases | 20 years 7 months 6 days | 20 years 8 months 12 days |
Weighted average discount rate, operating leases, percent | 4.63% | 4.74% |
Weighted average discount rate, finance leases, percent | 5.64% | 4.71% |
Leases - Leases Maturity Table
Leases - Leases Maturity Table (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leases | ||
Remainder of 2024 | $ 25,358 | |
2025 | 30,524 | |
2026 | 22,169 | |
2027 | 16,935 | |
2028 | 12,707 | |
Thereafter | 106,227 | |
Total lease payments | 213,920 | |
Less imputed interest | 70,577 | |
Total operating lease liabilities | 143,343 | $ 144,264 |
Finance Leases | ||
Remainder of 2024 | 13,952 | |
2025 | 9,340 | |
2026 | 8,690 | |
2027 | 8,690 | |
2028 | 8,690 | |
Thereafter | 127,855 | |
Total lease payments | 177,217 | |
Less imputed interest | 68,694 | |
Total finance lease liabilities | $ 108,523 | $ 114,186 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,360,736 | $ 2,580,252 |
Depreciation and amortization | (123,751) | (87,271) |
Interest and financing expenses | (37,969) | (26,777) |
Income tax benefit (expense) | 3,721 | (276,963) |
Proportionate share of Windfield income tax expense | (73,689) | (165,985) |
Acquisition and integration related costs | (1,907) | (5,108) |
Restructuring and other charges | (36,285) | 0 |
Non-operating pension and OPEB items | 325 | (601) |
(Loss) gain in fair value of public equity securities | (43,159) | 45,826 |
Mark-to-market (loss) gain on public equity securities | (9,400) | 45,800 |
Other | 23,926 | (6,245) |
Net income attributable to Albemarle Corporation | 2,448 | 1,238,580 |
Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 265,156 | 1,744,393 |
Depreciation and amortization | (122,068) | (85,197) |
Reportable Segments | Energy Storage | ||
Segment Reporting Information [Line Items] | ||
Net sales | 800,898 | 1,943,682 |
Adjusted EBITDA | 197,996 | 1,567,692 |
Depreciation and amortization | (87,274) | (52,162) |
Reportable Segments | Specialties | ||
Segment Reporting Information [Line Items] | ||
Net sales | 316,065 | 418,778 |
Adjusted EBITDA | 45,181 | 162,158 |
Depreciation and amortization | (22,437) | (19,892) |
Reportable Segments | Ketjen | ||
Segment Reporting Information [Line Items] | ||
Net sales | 243,773 | 217,792 |
Adjusted EBITDA | 21,979 | 14,543 |
Depreciation and amortization | (12,357) | (13,143) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 26,080 | 17,311 |
Depreciation and amortization | $ (1,683) | $ (2,074) |
Segment Information - Summari_2
Segment Information - Summarized Financial Information by Reportable Segments (Footnote) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | $ 36,285 | $ 0 |
(Loss) gain in fair value of public equity securities | (43,159) | 45,826 |
Mark-to-market (loss) gain on public equity securities | (9,400) | 45,800 |
Liability releases | (1,924) | |
Cost of goods sold | ||
Segment Reporting Information [Line Items] | ||
Non-routine labor costs | 1,400 | |
Selling, general and administrative expenses | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | 33,500 | |
Legal costs | 100 | |
Liability releases | 1,900 | |
Other restructuring costs | 700 | |
Other income, net | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | 2,800 | |
(Loss) gain in fair value of public equity securities | (33,700) | |
Mark-to-market (loss) gain on public equity securities | (9,400) | 45,800 |
Gain (loss) on sale of assets | 17,300 | |
Preferred equity gain | 8,700 | |
Revision of tax indemnification expense (gain) loss | 2,400 | |
Charges for asset retirement obligations | $ 2,900 | $ 3,600 |
Windfield Holdings | ||
Segment Reporting Information [Line Items] | ||
Equity method investment, ownership percentage | 49% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Disclosures [Abstract] | ||
Total long-term debt, excluding debt issuance costs | $ 3,543,472 | $ 4,186,532 |
Total long-term debt, fair value, excluding debt issuance costs | $ 3,350,906 | $ 4,021,693 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Foreign currency forward contracts, assets | $ 2,239 | $ 17,829 | |
Foreign currency forward contracts, liabilities | 17,180 | 5,752 | |
(Loss) income recognized in Other comprehensive (loss) income | (18,660) | $ 1,101 | |
Forward contracts | Other, net | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative, Cash Received on Hedge | 14,500 | 41,500 | |
Forward contracts | Designated as Hedging Instrument | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative, notional amount | 907,400 | 994,500 | |
Fair value foreign currency forward contracts designated as hedging instruments, asset | 0 | 15,193 | |
Fair value foreign currency forward contracts designated as hedging instruments, liabilities | 10,245 | 446 | |
(Loss) income recognized in Other comprehensive (loss) income | (21,342) | 1,101 | |
Loss recognized in Other income, net | (2,682) | 0 | |
Forward contracts | Designated as Hedging Instrument | Other current assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts designated as hedging instruments, asset | 0 | 3,489 | |
Forward contracts | Designated as Hedging Instrument | Other assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts designated as hedging instruments, asset | 0 | 11,704 | |
Forward contracts | Designated as Hedging Instrument | Accrued expenses | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts designated as hedging instruments, liabilities | 3,954 | 446 | |
Forward contracts | Designated as Hedging Instrument | Other noncurrent liabilities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts designated as hedging instruments, liabilities | 6,291 | ||
Forward contracts | Not Designated as Hedging Instrument | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative, notional amount | 5,500,000 | 7,100,000 | |
Fair value foreign currency forward contracts not designated as hedging instruments, asset | 2,239 | 2,636 | |
Fair value foreign currency forward contracts not designated as hedging instruments, liabilities | 6,935 | 5,306 | |
Forward contracts | Not Designated as Hedging Instrument | Other current assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts not designated as hedging instruments, asset | 2,239 | 2,636 | |
Forward contracts | Not Designated as Hedging Instrument | Accrued expenses | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts not designated as hedging instruments, liabilities | 6,935 | $ 5,306 | |
Forward contracts | Not Designated as Hedging Instrument | Other income, net | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Income recognized in Other income, net | $ 14,822 | $ 35,233 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | $ 297,987 | $ 289,307 |
Investments under executive deferred compensation plan | 32,884 | 33,564 |
Private equity securities | 44,234 | 168,928 |
Private equity securities measured at net asset value | 4,535 | 4,536 |
Foreign currency forward contracts, assets | 2,239 | 17,829 |
Obligations under executive deferred compensation plan | 32,884 | 33,564 |
Foreign currency forward contracts, liabilities | 17,180 | 5,752 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance at December 31, 2023 | 289,307 | |
PIK dividends | 8,680 | |
Ending balance at March 31, 2024 | 297,987 | |
Quoted Prices in Active Markets for Identical Items (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Investments under executive deferred compensation plan | 32,884 | 33,564 |
Private equity securities | 44,234 | 168,928 |
Private equity securities measured at net asset value | 0 | 0 |
Foreign currency forward contracts, assets | 0 | 0 |
Obligations under executive deferred compensation plan | 32,884 | 33,564 |
Foreign currency forward contracts, liabilities | 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] | ||
Available for sale debt securities | 0 | 0 |
Investments under executive deferred compensation plan | 0 | 0 |
Private equity securities | 0 | 0 |
Private equity securities measured at net asset value | 0 | 0 |
Foreign currency forward contracts, assets | 2,239 | 17,829 |
Obligations under executive deferred compensation plan | 0 | 0 |
Foreign currency forward contracts, liabilities | 17,180 | 5,752 |
Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 297,987 | 289,307 |
Investments under executive deferred compensation plan | 0 | 0 |
Private equity securities | 0 | 0 |
Private equity securities measured at net asset value | 0 | 0 |
Foreign currency forward contracts, assets | 0 | 0 |
Obligations under executive deferred compensation plan | 0 | 0 |
Foreign currency forward contracts, liabilities | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Net sales | $ 1,360,736 | $ 2,580,252 | |
Other accounts receivable | 438,507 | $ 509,097 | |
Unconsolidated Affiliates | |||
Related Party Transaction [Line Items] | |||
Net sales | 1,958 | 7,100 | |
Purchases from unconsolidated affiliates | 137,197 | $ 1,072,544 | |
Other accounts receivable | 1,511 | 15,992 | |
Accounts payable | $ 129,613 | $ 550,186 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of supplemental information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | ||
Capital expenditures included in Accounts payable | $ 315,895 | $ 347,165 |
Common stock issued for annual incentive bonus plan | $ 11,545 | $ 0 |
Common stock issued to employees | 95,003 |