Cover Cover
Cover Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 30, 2019 | |
Cover Page [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-12658 | ||
Entity Registrant Name | ALBEMARLE CORPORATION | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 54-1692118 | ||
Entity Address, Address Line One | 4250 Congress Street, Suite 900 | ||
Entity Address, City or Town | Charlotte | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 28209 | ||
City Area Code | 980 | ||
Local Phone Number | 299-5700 | ||
Title of 12(b) Security | COMMON STOCK, $.01 Par Value | ||
Trading Symbol | ALB | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 7.5 | ||
Entity Common Stock, Shares Outstanding | 106,206,157 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000915913 | ||
Document Period End Date | Dec. 31, 2019 | ||
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 3,589,427 | $ 3,374,950 | $ 3,071,976 |
Cost of goods sold | 2,331,649 | 2,157,694 | 1,965,700 |
Gross profit | 1,257,778 | 1,217,256 | 1,106,276 |
Selling, general and administrative expenses | 533,368 | 446,090 | 450,286 |
Research and development expenses | 58,287 | 70,054 | 84,330 |
Gain on sale of business | 0 | (210,428) | 0 |
Operating profit | 666,123 | 911,540 | 571,660 |
Interest and financing expenses | (57,695) | (52,405) | (115,350) |
Other expenses, net | (45,478) | (64,434) | (9,512) |
Income before income taxes and equity in net income of unconsolidated investments | 562,950 | 794,701 | 446,798 |
Income tax expense | 88,161 | 144,826 | 431,817 |
Income before equity in net income of unconsolidated investments | 474,789 | 649,875 | 14,981 |
Equity in net income of unconsolidated investments (net of tax) | 129,568 | 89,264 | 84,487 |
Net income | 604,357 | 739,139 | 99,468 |
Net income attributable to noncontrolling interests | (71,129) | (45,577) | (44,618) |
Net income attributable to Albemarle Corporation | $ 533,228 | $ 693,562 | $ 54,850 |
Basic earnings per share (in dollars per share) | $ 5.03 | $ 6.40 | $ 0.49 |
Diluted earnings per share (in dollars per share) | $ 5.02 | $ 6.34 | $ 0.49 |
Weighted-average common shares outstanding—basic (in shares) | 105,949 | 108,427 | 110,914 |
Weighted-average common shares outstanding—diluted (in shares) | 106,321 | 109,458 | 112,380 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 604,357 | $ 739,139 | $ 99,468 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation | (62,031) | (150,258) | 227,439 |
Pension and postretirement benefits | 632 | (138) | (97) |
Net investment hedge | 8,441 | 25,786 | (41,827) |
Cash flow hedge | 4,847 | 0 | 0 |
Interest rate swap | 2,591 | (585) | 2,116 |
Total other comprehensive (loss) income, net of tax | (45,520) | (125,195) | 187,631 |
Comprehensive income | 558,837 | 613,944 | 287,099 |
Comprehensive income attributable to noncontrolling interests | (70,662) | (45,396) | (45,505) |
Comprehensive income attributable to Albemarle Corporation | $ 488,175 | $ 568,548 | $ 241,594 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 613,110 | $ 555,320 |
Trade accounts receivable, less allowance for doubtful accounts (2019—$3,711; 2018—$4,460) | 612,651 | 605,712 |
Other accounts receivable | 67,551 | 52,059 |
Inventories | 768,984 | 700,540 |
Other current assets | 162,813 | 84,790 |
Total current assets | 2,225,109 | 1,998,421 |
Property, plant and equipment, at cost | 6,817,843 | 4,799,063 |
Less accumulated depreciation and amortization | 1,908,370 | 1,777,979 |
Net property, plant and equipment | 4,909,473 | 3,021,084 |
Investments | 579,813 | 528,722 |
Other assets | 213,061 | 80,135 |
Goodwill | 1,578,785 | 1,567,169 |
Other intangibles, net of amortization | 354,622 | 386,143 |
Total assets | 9,860,863 | 7,581,674 |
Current liabilities: | ||
Accounts payable | 574,138 | 522,516 |
Accrued expenses | 553,160 | 257,323 |
Current portion of long-term debt | 187,336 | 307,294 |
Dividends payable | 38,764 | 35,169 |
Current operating lease liability | 23,137 | 0 |
Income taxes payable | 32,461 | 60,871 |
Total current liabilities | 1,408,996 | 1,183,173 |
Long-term debt | 2,862,921 | 1,397,916 |
Postretirement benefits | 50,899 | 46,157 |
Pension benefits | 292,073 | 285,396 |
Other noncurrent liabilities | 754,536 | 526,942 |
Deferred income taxes | 397,858 | 382,982 |
Commitments and contingencies | ||
Albemarle Corporation shareholders’ equity: | ||
Common stock, $.01 par value (authorized 150,000 shares), issued and outstanding — 106,040 in 2019 and 105,616 in 2018 | 1,061 | 1,056 |
Additional paid-in capital | 1,383,446 | 1,368,897 |
Accumulated other comprehensive loss | (395,735) | (350,682) |
Retained earnings | 2,943,478 | 2,566,050 |
Total Albemarle Corporation shareholders’ equity | 3,932,250 | 3,585,321 |
Noncontrolling interests | 161,330 | 173,787 |
Total equity | 4,093,580 | 3,759,108 |
Total liabilities and equity | $ 9,860,863 | $ 7,581,674 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivables, allowance for doubtful accounts | $ 3,711 | $ 4,460 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 106,040,000 | 105,616,000 |
Common stock, shares outstanding | 106,040,000 | 105,616,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Total Albemarle Shareholders’ Equity | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2016 | 112,523,790 | ||||||
Beginning balance at Dec. 31, 2016 | $ 3,942,604 | $ 1,125 | $ 2,084,418 | $ (412,412) | $ 2,121,931 | $ 3,795,062 | $ 147,542 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 99,468 | 54,850 | 54,850 | 44,618 | |||
Other comprehensive income (loss) | 187,631 | 186,744 | 186,744 | 887 | |||
Cash dividends declared | (178,374) | (141,618) | (141,618) | (36,756) | |||
Stock-based compensation | 16,505 | 16,505 | 16,505 | ||||
Exercise of stock options (in shares) | 210,432 | ||||||
Exercise of stock options | 8,238 | $ 2 | 8,236 | 8,238 | |||
Shares repurchased (in shares) | 2,341,083 | ||||||
Shares repurchased | 250,000 | $ 23 | 249,977 | 250,000 | |||
Issuance of common stock, net (in shares) | 243,024 | ||||||
Issuance of common stock, net | 0 | $ 2 | (2) | 0 | |||
Termination of Tianqi Lithium Corporation option agreement | 0 | 13,144 | 13,144 | (13,144) | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (89,489) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (8,376) | $ (1) | (8,375) | (8,376) | |||
Ending balance (in shares) at Dec. 31, 2017 | 110,546,674 | ||||||
Ending balance at Dec. 31, 2017 | 3,817,696 | $ 1,105 | 1,863,949 | (225,668) | 2,035,163 | 3,674,549 | 143,147 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 739,139 | 693,562 | 693,562 | 45,577 | |||
Other comprehensive income (loss) | (125,195) | (125,014) | (125,014) | (181) | |||
Cash dividends declared | (159,357) | (144,601) | (144,601) | (14,756) | |||
Cumulative adjustments from adoption of income tax standard updates | (18,074) | (18,074) | (18,074) | ||||
Stock-based compensation | 18,506 | 18,506 | 18,506 | ||||
Exercise of stock options (in shares) | 94,031 | ||||||
Exercise of stock options | 3,633 | $ 1 | 3,632 | 3,633 | |||
Shares repurchased (in shares) | (5,262,654) | ||||||
Shares repurchased | (500,000) | $ (53) | (499,947) | (500,000) | |||
Issuance of common stock, net (in shares) | 383,974 | ||||||
Issuance of common stock, net | 0 | $ 4 | (4) | 0 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (145,997) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (17,240) | $ (1) | (17,239) | (17,240) | |||
Ending balance (in shares) at Dec. 31, 2018 | 105,616,028 | ||||||
Ending balance at Dec. 31, 2018 | 3,759,108 | $ 1,056 | 1,368,897 | (350,682) | 2,566,050 | 3,585,321 | 173,787 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 604,357 | 533,228 | 533,228 | 71,129 | |||
Other comprehensive income (loss) | (45,520) | (45,053) | (45,053) | (467) | |||
Cash dividends declared | (238,987) | (155,800) | (155,800) | (83,187) | |||
Stock-based compensation | $ 21,284 | 21,284 | 21,284 | ||||
Exercise of stock options (in shares) | 161,909 | 161,909 | |||||
Exercise of stock options | $ 4,814 | $ 2 | 4,812 | 4,814 | |||
Issuance of common stock, net (in shares) | 396,269 | ||||||
Issuance of common stock, net | 0 | $ 4 | (4) | 0 | |||
Increase in ownership interest of noncontrolling interest | (445) | (513) | (513) | 68 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (133,991) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (11,031) | $ (1) | (11,030) | (11,031) | |||
Ending balance (in shares) at Dec. 31, 2019 | 106,040,215 | ||||||
Ending balance at Dec. 31, 2019 | $ 4,093,580 | $ 1,061 | $ 1,383,446 | $ (395,735) | $ 2,943,478 | $ 3,932,250 | $ 161,330 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 1.47 | $ 1.34 | $ 1.28 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||
Cash and cash equivalents at beginning of year | $ 555,320 | $ 1,137,303 | $ 2,269,756 |
Cash flows from operating activities: | |||
Net income | 604,357 | 739,139 | 99,468 |
Adjustments to reconcile net income to cash flows from operating activities: | |||
Depreciation and amortization | 213,484 | 200,698 | 196,928 |
Gain on acquisition | 0 | 0 | (6,221) |
Gain on sale of business | 0 | (210,428) | 0 |
Gain on sale of property | (14,411) | 0 | 0 |
Stock-based compensation and other | 19,680 | 15,228 | 19,404 |
Equity in net income of unconsolidated investments (net of tax) | (129,568) | (89,264) | (84,487) |
Dividends received from unconsolidated investments and nonmarketable securities | 71,746 | 57,415 | 39,386 |
Pension and postretirement expense (benefit) | 31,515 | 10,410 | (12,436) |
Pension and postretirement contributions | (16,478) | (15,236) | (13,341) |
Unrealized gain on investments in marketable securities | (2,809) | (527) | (3,135) |
Loss on early extinguishment of debt | 4,829 | 0 | 52,801 |
Deferred income taxes | 14,394 | 49,164 | (41,941) |
Changes in current assets and liabilities, net of effects of acquisitions and divestitures: | |||
(Increase) in accounts receivable | (18,220) | (97,448) | (74,545) |
(Increase) in inventories | (46,304) | (124,067) | (101,545) |
(Increase) in other current assets | (32,941) | (2,181) | (213) |
(Decrease) increase in accounts payable | (12,234) | 73,730 | 53,421 |
(Decrease) in accrued expenses and income taxes payable | (4,640) | (1,999) | (269,381) |
Other, net | 36,974 | (58,469) | 449,816 |
Net cash provided by operating activities | 719,374 | 546,165 | 303,979 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | (820,000) | (11,403) | (44,367) |
Capital expenditures | (851,796) | (699,991) | (317,703) |
Cash proceeds from divestitures, net | 0 | 413,569 | 6,857 |
Proceeds from sale of property and equipment | 10,356 | 0 | 0 |
Sales of (investments in) marketable securities, net | 384 | (270) | (275) |
Repayments from joint ventures | 0 | 0 | 1,250 |
Investments in equity and other corporate investments | (2,569) | (5,600) | (3,565) |
Net cash used in investing activities | (1,663,625) | (303,695) | (357,803) |
Cash flows from financing activities: | |||
Proceeds from borrowings of other long-term debt | 1,597,807 | 0 | 27,000 |
Repayments of long-term debt | (175,215) | 0 | (778,209) |
Other (repayments) borrowings, net | (126,364) | (113,567) | 138,751 |
Fees related to early extinguishment of debt | (4,419) | 0 | (46,959) |
Dividends paid to shareholders | (152,204) | (144,596) | (140,557) |
Dividends paid to noncontrolling interests | (83,187) | (14,756) | (36,756) |
Repurchases of common stock | 0 | (500,000) | (250,000) |
Proceeds from exercise of stock options | 4,814 | 3,633 | 8,238 |
Withholding taxes paid on stock-based compensation award distributions | (11,031) | (17,240) | (8,376) |
Debt financing costs | 7,514 | 0 | 0 |
Net cash provided by (used in) financing activities | 1,042,687 | (786,526) | (1,086,868) |
Net effect of foreign exchange on cash and cash equivalents | (40,646) | (37,927) | 8,239 |
Increase (decrease) in cash and cash equivalents | 57,790 | (581,983) | (1,132,453) |
Cash and cash equivalents at end of year | $ 613,110 | $ 555,320 | $ 1,137,303 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies: Basis of Consolidation The consolidated financial statements include the accounts and operations of Albemarle Corporation and our wholly owned, majority owned and controlled subsidiaries. Unless the context otherwise indicates, the terms “Albemarle,” “we,” “us,” “our” or “the Company” mean Albemarle Corporation and its consolidated subsidiaries. For entities that we control and are the primary beneficiary, but own less than 100%, we record the minority ownership as noncontrolling interest, except as noted below. We apply the equity method of accounting for investments in which we have an ownership interest from 20% to 50% or where we exercise significant influence over the related investee’s operations. All significant intercompany accounts and transactions are eliminated in consolidation. As described further in Note 2, “Acquisitions,” we completed the acquisition of a 60% ownership interest in Mineral Resources Limited’s (“MRL”) Wodgina hard rock lithium mine project (“Wodgina Project”) on October 31, 2019 creating a joint venture named MARBL Lithium Joint Venture (“MARBL”). The consolidated financial statements contained herein include our proportionate share of the results of operations of the Wodgina Project, commencing on November 1, 2019. We are entitled to a pro rata portion of 60% of all minerals (other than iron ore and tantalum) recovered from the tenements and produced by the joint venture. The 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. Estimates, Assumptions and Reclassifications The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. Revenue Recognition Effective January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” and all related amendments using the modified retrospective method. There was no material impact to our results of operations or financial position upon adoption, and no adjustment was made to Retained earnings in our consolidated balance sheets because such adjustment was determined to be immaterial. In addition, new presentation requirements, including separate disclosure of net sales from sources other than customers on our consolidated statements of income and separate disclosures of contract assets or liabilities on our consolidated balance sheets, generally did not have a material impact. However, business circumstances, including the nature of customer contracts, can change and as such, we have expanded processes and controls to recognize such changes, and as necessary, consider whether any of these currently immaterial items might differ in the future. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services, and is recognized when performance obligations are satisfied under the terms of contracts with our customers. A performance obligation is deemed to be satisfied when control of the product or service is transferred to our customer. The transaction price of a contract, or the amount we expect to receive upon satisfaction of all performance obligations, is determined by reference to the contract’s terms and includes adjustments, if applicable, for any variable consideration, such as customer rebates, noncash consideration or consideration payable to the customer, although these adjustments are generally not material. Where a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on the standalone selling price of each performance obligation, although these situations do not occur frequently and are generally not built into our contracts. Any unsatisfied performance obligations are not material. Standalone selling prices are based on prices we charge to our customers, which in some cases is based on established market prices. Sales and other similar taxes collected from customers on behalf of third parties are excluded from revenue. Our payment terms are generally between 30 to 90 days, however, they vary by market factors, such as customer size, creditworthiness, geography and competitive environment. All of our revenue is derived from contracts with customers, and almost all of our contracts with customers contain one performance obligation for the transfer of goods where such performance obligation is satisfied at a point in time. Control of a product is deemed to be transferred to the customer upon shipment or delivery. Significant portions of our sales are sold free on board shipping point or on an equivalent basis, while delivery terms of other transactions are based upon specific contractual arrangements. Our standard terms of delivery are generally included in our contracts of sale, order confirmation documents and invoices, while the timing between shipment and delivery generally ranges between 1 and 45 days. Costs for shipping and handling activities, whether performed before or after the customer obtains control of the goods, are accounted for as fulfillment costs. The Company currently utilizes the following practical expedients, as permitted by Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers : • All sales and other pass-through taxes are excluded from contract value; • In utilizing the modified retrospective transition method, no adjustment was necessary for contracts that did not cross over the reporting year; • We will not consider the possibility of a contract having a significant financing component (which would effectively attribute a portion of the sales price to interest income) unless, if at contract inception, the expected payment terms (from time of delivery or other relevant criterion) are more than one year; • If our right to customer payment is directly related to the value of our completed performance, we recognize revenue consistent with the invoicing right; and • We expense as incurred all costs of obtaining a contract incremental to any costs/compensation attributable to individual product sales/shipments for contracts where the amortization period for such costs would otherwise be one year or less. Certain products we produce are made to our customer’s specifications where such products have limited alternative use or would need significant rework costs in order to be sold to another customer. In management’s judgment, control of these arrangements is transferred to the customer at a point in time (upon shipment or delivery) and not over the time they are produced. Therefore revenue is recognized upon shipment or delivery of these products. Costs incurred to obtain contracts with customers are not significant and are expensed immediately as the amortization period would be one year or less. When the Company incurs pre-production or other fulfillment costs in connection with an existing or specific anticipated contract and such costs are recoverable through margin or explicitly reimbursable, such costs are capitalized and amortized to Cost of goods sold on a systematic basis that is consistent with the pattern of transfer to the customer of the goods or services to which the asset relates, which is less than one year. We record bad debt expense in specific situations when we determine the customer is unable to meet its financial obligation. Included in Trade accounts receivable at December 31, 2019 and 2018 is approximately $602.1 million and $590.3 million , respectively, arising from contracts with customers. The remaining balance of Trade accounts receivable at December 31, 2019 and 2018 primarily includes value-added taxes collected from customers on behalf of various taxing authorities. Cash and Cash Equivalents Cash and cash equivalents include cash and money market investments with insignificant interest rate risks and no limitations on access. Inventories Inventories are stated at lower of cost and net realizable value with cost determined primarily on the first-in, first-out basis. Cost is determined on the weighted-average basis for a small portion of our inventories at foreign plants and our stores, supplies and other inventory. A portion of our domestic produced finished goods and raw materials are determined on the last-in, first-out basis. Property, Plant and Equipment Property, plant and equipment include costs of assets constructed, purchased or leased under a finance lease, related delivery and installation costs and interest incurred on significant capital projects during their construction periods. Expenditures for renewals and betterments also are capitalized, but expenditures for normal repairs and maintenance are expensed as incurred. Costs associated with yearly planned major maintenance are generally deferred and amortized over 12 months or until the same major maintenance activities must be repeated, whichever is shorter. The cost and accumulated depreciation applicable to assets retired or sold are removed from the respective accounts, and gains or losses thereon are included in income. We assign the useful lives of our property, plant and equipment based upon our internal engineering estimates which are reviewed periodically. The estimated useful lives of our property, plant and equipment range from two to sixty years and depreciation is recorded on the straight-line method, with the exception of our mineral rights and reserves, which are depleted on a units-of-production method. We evaluate the recovery of our property, plant and equipment by comparing the net carrying value of the asset group to the undiscounted net cash flows expected to be generated from the use and eventual disposition of that asset group when events or changes in circumstances indicate that its carrying amount may not be recoverable. If the carrying amount of the asset group is not recoverable, the fair value of the asset group is measured and if the carrying amount exceeds the fair value, an impairment loss is recognized. Leases Effective January 1, 2019, we adopted Accounting Standards Update (“ASU”) No. 2016-02, “Leases” and all related amendments using the modified retrospective method. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of $139.1 million as of January 1, 2019. Comparative periods have not been restated and are reported in accordance with our historical accounting. The standard did not have an impact on our consolidated Net income or cash flows. In addition, as a result of the adoption of this new standard, we have implemented internal controls and system changes to prepare the financial information. As part of this adoption, we have elected the practical expedient relief package allowed by the new standard, which does not require the reassessment of (1) whether existing contracts contain a lease, (2) the lease classification or (3) unamortized initial direct costs for existing leases; and have elected to apply hindsight to the existing leases. Additionally, we have made accounting policy elections such as exclusion of short-term leases (leases with a term of 12 months or less and which do not include a purchase option that we are reasonably certain to exercise) from the balance sheet presentation, use of portfolio approach in determination of discount rate and accounting for non-lease components in a contract as part of a single lease component for all asset classes, except specific mining operation equipment. We determine if an arrangement is a lease at inception. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As an implicit rate for most of our leases is not determinable, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The lease payments for the initial measurement of lease ROU assets and lease liabilities include fixed and variable payments based on an index or a rate. Variable lease payments that are not index or rate based are recorded as expenses when incurred. Our variable lease payments typically include real estate taxes, insurance costs and common-area maintenance. The operating lease ROU asset also includes any lease payments made, net of lease incentives. The lease term is the non-cancelable period of the lease, including any options to extend, purchase or terminate the lease when it is reasonably certain that we will exercise that option. We amortize the operating lease ROU assets on a straight-line basis over the period of the lease and the finance lease ROU assets on a straight-line basis over the shorter of their estimated useful lives or the lease terms. 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. Resource Development Expenses We incur costs in resource exploration, evaluation and development during the different phases of our resource development projects. Exploration costs incurred before obtaining legal rights to explore an area are generally expensed as incurred. After obtaining legal rights, exploration costs are expensed in areas where we have uncertainty about obtaining proven resources. In areas where we have substantial knowledge about the area and consider it probable to obtain commercially viable proven resources, exploration and evaluation costs are capitalized. If technical feasibility studies have been obtained, resource evaluation expenses are capitalized when the study demonstrates proven or probable resources for which future economic returns are expected, while costs for projects that are not considered viable are expensed. Development costs that are necessary to bring the property to commercial production or increase the capacity or useful life are capitalized. Costs to maintain the production capacity in a property under production are expensed as incurred. Capitalized resource costs are depleted using the units-of-production method. Our resource development assets are evaluated for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Investments Investments are accounted for using the equity method of accounting if the investment gives us the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if we have an ownership interest in the voting stock of the investee between 20% and 50%, although other factors, such as representation on the investee’s board of directors and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, we record our investments in equity-method investees in the consolidated balance sheets as Investments and our share of investees’ earnings or losses together with other-than-temporary impairments in value as Equity in net income of unconsolidated investments in the consolidated statements of income. We evaluate our equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. Certain mutual fund investments are accounted for as trading equities and are marked-to-market on a periodic basis through the consolidated statements of income. Investments in joint ventures and nonmarketable securities of immaterial entities are estimated based upon the overall performance of the entity where financial results are not available on a timely basis. Environmental Compliance and Remediation Environmental compliance costs include the cost of purchasing and/or constructing assets to prevent, limit and/or control pollution or to monitor the environmental status at various locations. These costs are capitalized and depreciated based on estimated useful lives. Environmental compliance costs also include maintenance and operating costs with respect to pollution prevention and control facilities and other administrative costs. Such operating costs are expensed as incurred. Environmental remediation costs of facilities used in current operations are generally immaterial and are expensed as incurred. We accrue for environmental remediation costs and post-remediation costs that relate to existing conditions caused by past operations at facilities or off-plant disposal sites in the accounting period in which responsibility is established and when the related costs are estimable. In developing these cost estimates, we evaluate currently available facts regarding each site, with consideration given to existing technology, presently enacted laws and regulations, prior experience in remediation of contaminated sites, the financial capability of other potentially responsible parties and other factors, subject to uncertainties inherent in the estimation process. If the amount and timing of the cash payments for a site are fixed or reliably determinable, the liability is discounted, if the calculated discount is material. Additionally, these estimates are reviewed periodically, with adjustments to the accruals recorded as necessary. Research and Development Expenses Our research and development expenses related to present and future products are expensed as incurred. These expenses consist primarily of personnel-related costs and other overheads, as well as outside service and consulting costs incurred for specific programs. Our U.S. facilities in Michigan, Pennsylvania, Texas and Louisiana and our global facilities in the Netherlands, Germany, Belgium and Korea form the capability base for our contract research and custom manufacturing businesses. These business areas provide research and scale-up services primarily to innovative life science companies. Goodwill and Other Intangible Assets We account for goodwill and other intangibles acquired in a business combination in conformity with current accounting guidance that requires that goodwill and indefinite-lived intangible assets not be amortized. We test goodwill for impairment by comparing the estimated fair value of our reporting units to the related carrying value. Our reporting units are either our operating business segments or one level below our operating business segments for which discrete financial information is available and for which operating results are regularly reviewed by the business management. We estimate the fair value based on present value techniques involving future cash flows. Future cash flows include assumptions about sales volumes, selling prices, raw material prices, labor and other employee benefit costs, capital additions, income taxes, working capital, and other economic or market-related factors. Significant management judgment is involved in estimating these variables and they include inherent uncertainties since they are forecasting future events. We perform a sensitivity analysis by using a range of inputs to confirm the reasonableness of these estimates being used in the goodwill impairment analysis. We use a Weighted Average Cost of Capital (“WACC”) approach to determine our discount rate for goodwill recoverability testing. Our WACC calculation incorporates industry-weighted average returns on debt and equity from a market perspective. The factors in this calculation are largely external to the Company and, therefore, are beyond our control. We test our recorded goodwill for impairment in the fourth quarter of each year or upon the occurrence of events or changes in circumstances that would more likely than not reduce the fair value of our reporting units below their carrying amounts. The Company performed its annual goodwill impairment test as of October 31, 2019 and concluded there was no impairment as of that date. In addition, no material indications of impairment in any of our reporting units were indicated by the sensitivity analysis. We assess our indefinite-lived intangible assets, which include trade names and trademarks, for impairment annually and between annual tests if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. The indefinite-lived intangible asset impairment standard allows us to first assess qualitative factors to determine if a quantitative impairment test is necessary. Further testing is only required if we determine, based on the qualitative assessment, that it is more likely than not that the indefinite-lived intangible asset’s fair value is less than its carrying amount. If we determine based on the qualitative assessment that it is more likely than not that the asset is impaired, an impairment test is performed by comparing the fair value of the indefinite-lived intangible asset to its carrying amount. Definite-lived intangible assets, such as purchased technology, patents and customer lists, are amortized over their estimated useful lives generally for periods ranging from five to twenty-five years . Except for customer lists and relationships associated with the majority of our Lithium business, which are amortized using the pattern of economic benefit method, definite-lived intangible assets are amortized using the straight-line method. We evaluate the recovery of our definite-lived intangible assets by comparing the net carrying value of the asset group to the undiscounted net cash flows expected to be generated from the use and eventual disposition of that asset group when events or changes in circumstances indicate that its carrying amount may not be recoverable. If the carrying amount of the asset group is not recoverable, the fair value of the asset group is measured and if the carrying amount exceeds the fair value, an impairment loss is recognized. See Note 12, “Goodwill and Other Intangibles.” Pension Plans and Other Postretirement Benefits Under authoritative accounting standards, assumptions are made regarding the valuation of benefit obligations and the performance of plan assets. As required, we recognize a balance sheet asset or liability for each of our pension and other postretirement benefit (“OPEB”) plans equal to the plan’s funded status as of the measurement date. The primary assumptions are as follows: • Discount Rate—The discount rate is used in calculating the present value of benefits, which is based on projections of benefit payments to be made in the future. • Expected Return on Plan Assets—We project the future return on plan assets based on prior performance and future expectations for the types of investments held by the plans, as well as the expected long-term allocation of plan assets for these investments. These projected returns reduce the net benefit costs recorded currently. • Rate of Compensation Increase—For salary-related plans, we project employees’ annual pay increases, which are used to project employees’ pension benefits at retirement. • Mortality Assumptions—Assumptions about life expectancy of plan participants are used in the measurement of related plan obligations. Actuarial gains and losses are recognized annually in our consolidated statements of income in the fourth quarter and whenever a plan is determined to qualify for a remeasurement during a fiscal year. The remaining components of pension and OPEB plan expense, primarily service cost, interest cost and expected return on assets, are recorded on a monthly basis. The market-related value of assets equals the actual market value as of the date of measurement. During 2019 , we made changes to assumptions related to discount rates and expected rates of return on plan assets. We consider available information that we deem relevant when selecting each of these assumptions. In selecting the discount rates for the U.S. plans, we consider expected benefit payments on a plan-by-plan basis. As a result, the Company uses different discount rates for each plan depending on the demographics of participants and the expected timing of benefit payments. For 2019 , the discount rates were calculated using the results from a bond matching technique developed by Milliman, which matched the future estimated annual benefit payments of each respective plan against a portfolio of bonds of high quality to determine the discount rate. We believe our selected discount rates are determined using preferred methodology under authoritative accounting guidance and accurately reflect market conditions as of the December 31, 2019 measurement date. In selecting the discount rates for the foreign plans, we look at long-term yields on AA-rated corporate bonds when available. Our actuaries have developed yield curves based on the yields on the constituent bonds in the various indices as well as on other market indicators such as swap rates, particularly at the longer durations. For the Eurozone, we apply the Aon Hewitt yield curve to projected cash flows from the relevant plans to derive the discount rate. For the United Kingdom (“U.K.”), the discount rate is determined by applying the Aon Hewitt yield curve for typical schemes of similar duration to projected cash flows of Albemarle’s U.K. plan. In other countries where there is not a sufficiently deep market of high-quality corporate bonds, we set the discount rate by referencing the yield on government bonds of an appropriate duration. In estimating the expected return on plan assets, we consider past performance and future expectations for the types of investments held by the plan as well as the expected long-term allocation of plan assets to these investments. In projecting the rate of compensation increase, we consider past experience in light of movements in inflation rates. In October 2018, the Society of Actuaries (“SOA”) published an updated Mortality Improvement Scale, MP-2018. The updated improvement scale incorporates an additional year of mortality data (2016). We utilized the same base mortality, SOA RP-2014 Adjusted to 2006 Total Dataset Mortality, but we revised our mortality assumption to incorporate the MP-2018 Mortality Improvement Scale for purposes of measuring our U.S. pension and OPEB obligations at December 31, 2018. In October 2019, the SOA published the Pri-2012 Mortality Tables and an updated Improvement Scale, MP-2019. The Pri-2012 Mortality Tables are an update to the RP-2014 Adjusted to 2006 Total Dataset Mortality while the updated improvement scale incorporates an additional year of mortality data (2017). We revised both the base mortality tables and mortality improvement assumption by incorporating both the Pri-2012 Mortality Tables and MP-2019 Mortality Improvement Scale for purpose of measuring our U.S. pension and OPEB obligations at December 31, 2019. Stock-based Compensation Expense The fair value of restricted stock awards, restricted stock unit awards and performance unit awards with a service condition are determined based on the number of shares or units granted and the quoted price of our common stock on the date of grant, and the fair value of stock options is determined using the Black-Scholes valuation model. The fair value of performance unit awards with a service condition and a market condition are estimated on the date of grant using a Monte Carlo simulation model. The fair value of these awards is determined after giving effect to estimated forfeitures. Such value is recognized as expense over the service period, which is generally the vesting period of the equity grant. To the extent restricted stock awards, restricted stock unit awards, performance unit awards and stock options are forfeited prior to vesting in excess of the estimated forfeiture rate, the corresponding previously recognized expense is reversed as an offset to operating expenses. Income Taxes We use the liability method for determining our income taxes, under which current and deferred tax liabilities and assets are recorded in accordance with enacted tax laws and rates. Under this method, the amounts of deferred tax liabilities and assets at the end of each period are determined using the tax rate expected to be in effect when taxes are actually paid or recovered. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not. In order to record deferred tax assets and liabilities, we are following guidance under Financial Accounting Standards Board (“FASB”) ASU 2015-17, which requires deferred tax assets and liabilities to be classified as noncurrent on the balance sheet, along with any related valuation allowance. Tax effects are released from Accumulated Other Comprehensive Income using either the specific identification approach or the portfolio approach based on the nature of the underlying item. Deferred income taxes are provided for the estimated income tax effect of temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Deferred tax assets are also provided for operating losses, capital losses and certain tax credit carryovers. A valuation allowance, reducing deferred tax assets, is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of such deferred tax assets is dependent upon the generation of sufficient future taxable income of the appropriate character. Although realization is not assured, we do not establish a valuation allowance when we believe it is more likely than not that a net deferred tax asset will be realized. We only recognize a tax benefit after concluding that it is more likely than not that the benefit will be sustained upon audit by the respective taxing authority based solely on the technical merits of the associated tax position. Once the recognition threshold is met, we recognize a tax benefit measured as the largest amount of the tax benefit that, in our judgment, is greater than 50% likely to be realized. Under current accounting guidance for uncertain tax positions, interest and penalties related to income tax liabilities are included in Income tax expense on the consolidated statements of income. We have designated the undistributed earnings of a portion of our foreign operations as indefinitely reinvested and as a result we do not provide for deferred income taxes on the unremitted earnings of these subsidiaries. Our foreign earnings are computed under U.S. federal tax earnings and profits, or E&P, principles. In general, to the extent our financial reporting book basis over tax basis of a foreign subsidiary exceeds these E&P amounts, deferred taxes have not been provided as they are essentially permanent in duration. The determination of the amount of such unrecognized deferred tax liability is not practicable. We provide for deferred income taxes on our undistributed earnings of foreign operations that are not deemed to be indefinitely invested. We will continue to evaluate our permanent investment assertion taking into consideration all relevant and current tax laws. On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law in the U.S. The TCJA contains several key tax provisions including, among other things, the reduction of the corporate income tax rate from 35% to 21% effective January 1, 2018, the requirement of companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and the creation of new taxes on certain foreign sourced earnings such as global intangible low-taxed income (“GILTI”). A company can elect an accounting policy to account for GILTI as a period charge in the future period the tax arises or as part of deferred taxes related |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions: On October 31, 2019 (the “Acquisition Closing Date”), we completed the previously announced acquisition of a 60% interest in MRL’s Wodgina Project for a total purchase price of approximately $1.3 billion . The purchase price is comprised of $820 million in cash, subject to certain adjustments capped at $22.5 million , and the transfer of 40% interest in certain lithium hydroxide conversion assets being built by Albemarle in Kemerton, Western Australia, valued at $480 million . The cash consideration was initially funded by the 2019 Credit Facility entered into on August 14, 2019; see Note 14, “Long-Term Debt,” for further details. In addition, we have formed an unincorporated joint venture with MRL, MARBL, for the exploration, development, mining, processing and production of lithium and other minerals (other than iron ore and tantalum) from the Wodgina Project and for the operation of the Kemerton assets. We are entitled to a pro rata portion of 60% of all minerals (other than iron ore and tantalum) recovered from the tenements and produced by the joint venture. The 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. As part of this acquisition, MARBL Lithium Operations Pty. Ltd. (the “Manager”), an incorporated joint venture, has been formed to manage the Wodgina Project. We will consolidate our 60% ownership interest in the Manager in our consolidated financial statements. This acquisition provides access to a high-quality hard rock lithium source, further diversifying our global lithium resource base, and strengthens our position by increasing capacity to support future market demand. In the short-term, we will idle production of the Wodgina Project until market conditions support production economics. The results of our 60% ownership interest in MARBL are reported within the Lithium segment. Included in Net income attributable to Albemarle Corporation for the year ended December 31, 2019 is a loss of approximately $73.0 million attributable to the joint venture from November 1, 2019 through December 31, 2019. There were no net sales attributable to the joint venture during this period. Included in Cost of goods sold and Selling, general and administrative expenses on our consolidated statements of income for the year ended December 31, 2019 is $1.0 million and $7.5 million , respectively, of costs directly related to this acquisition, primarily consisting of professional services and advisory fees, and $64.8 million of costs, included in Selling, general and administrative expenses, related to stamp duties levied on the assets purchased, with the unpaid balance recorded in Accrued expenses as of December 31, 2019. Pro forma financial information of the combined entities for periods prior to the acquisition is not presented due to the immaterial impact of the Net Sales and Net Income of the Wodgina Project on our consolidated statements of income. Preliminary Purchase Price Allocation The aggregate purchase price noted above was allocated to the major categories of assets and liabilities acquired based upon their estimated fair values at the Acquisition Closing Date, which were based, in part, upon third-party appraisals for certain assets. The excess of the purchase price over the preliminary estimated fair value of the net assets acquired was approximately $31.8 million and was recorded as Goodwill. The following table summarizes the consideration paid for the joint venture and the amounts of the assets acquired and liabilities assumed as of the acquisition date, which have been allocated on a preliminary basis (in thousands): Total purchase price: Cash paid $ 820,000 Fair value of 40% interest in Kemerton assets 480,000 Purchase agreement completion adjustment and other adjustments 23,566 Total purchase price $ 1,323,566 Net assets acquired: Inventories $ 33,900 Other current assets 10,695 Property, plant and equipment: Buildings and improvements 22,200 Machinery and equipment 163,806 Mineral rights and reserves 1,046,300 Construction in progress 103,700 Other assets 1,000 Current liabilities (10,695 ) Long-term debt (a) (55,806 ) Other noncurrent liabilities (23,296 ) Total identifiable net assets 1,291,804 Goodwill 31,762 Total net assets acquired $ 1,323,566 (a) Represents 60% ownership interest in finance lease acquired. See Note 18, “Leases,” for further information on the Company’s leases. The allocation of the purchase price to the assets acquired and liabilities assumed, including the residual amount allocated to Goodwill, is based upon preliminary information and is subject to change within the measurement-period (up to one year from the acquisition date) as additional information concerning final asset and liability valuations is obtained. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the fair value of Mineral rights and reserves and Goodwill. The fair value of the assets acquired and liabilities assumed are based on management’s preliminary estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. The fair value of the mineral reserves of $1,005.3 million is determined using an excess earnings approach, which requires management to estimate future cash flows, net of capital investments in the specific operation. Management’s cash flow projections involved the use of significant estimates and assumptions with respect to the expected production of the mine over the estimated time period, sales prices, shipment volumes, and expected profit margins. The present value of the projected net cash flows represents the preliminary fair value assigned to mineral reserves. The discount rate is a significant assumption used in the valuation model. While the Company believes that such preliminary estimates provide a reasonable basis for estimating the fair value of assets acquired and liabilities assumed, it will evaluate any necessary information prior to finalization of the amounts. During the measurement-period, the Company will adjust assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date. The effect of measurement-period adjustments to the estimated fair values will be recognized in the reporting period in which they are determined. The impact of all changes that do not qualify as measurement-period adjustments will be included in current period earnings. If the actual results differ from the estimates and judgments used in these fair values, the amounts recorded in the consolidated financial statements could be subject to possible impairment. Goodwill arising from the acquisition consists largely of anticipated synergies and economies of scale from the combined companies and overall strategic importance of the acquired businesses to Albemarle. The goodwill attributable to the acquisition will not be amortizable or deductible for tax purposes. Other Acquisitions On February 1, 2017, the Company acquired the remaining 50% interest in the Sales de Magnesio Ltda. (“Salmag”) joint venture in Chile from SQM Salar S.A. for approximately $8.3 million , net of cash acquired. In connection with the acquisition, the Company recorded a gain of $6.2 million , calculated based on the difference between the purchase price and the book value of the investment in Other expenses, net on the consolidated statements of income for the year ended December 31, 2017. Acquisition and integration related costs for the year ended December 31, 2019 of $1.0 million and $19.7 million were included in Cost of goods sold and Selling, general and administrative expenses, respectively, on our consolidated statements of income relating to various significant projects, including the acquisition of the Wodgina Project. Included in acquisition and integration related costs on our consolidated statements of income for the years ended December 31, 2018 and 2017 is $3.7 million and $14.3 million , respectively, in Cost of goods sold and $15.7 million and $19.6 million , respectively, in Selling, general and administrative expenses. These acquisition and integration related costs relate to various significant projects, including the Jiangxi Jiangli New Materials Science and Technology Co. Ltd. (“Jiangli New Materials”) acquisition, which contains non-routine compensation related costs negotiated specifically as a result of this acquisition that are outside of the Company’s ordinary compensation arrangements. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Divestitures: Polyolefin Catalysts and Components Business On December 14, 2017, the Company signed a definitive agreement to sell the polyolefin catalysts and components portion of its Performance Catalyst Solutions (“PCS”) business (“Polyolefin Catalysts Divestiture”) to W.R. Grace & Co., with the sale closing on April 3, 2018. We received net cash proceeds of approximately $413.6 million and have recorded a gain of $210.4 million before income taxes in 2018 related to the sale of this business. The transaction included Albemarle’s Product Development Center located in Baton Rouge, Louisiana, and operations at its Yeosu, South Korea site. The sale did not include the Company’s organometallics or curatives portion of its PCS business. The Polyolefin Catalysts Divestiture reflects the Company’s commitment to investing in the future growth of its high priority businesses and returning capital to shareholders. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information: Supplemental information related to the consolidated statements of cash flows is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Cash paid during the year for: Income taxes (net of refunds of $7,438, $21,459 and $17,522 in 2019, 2018 and 2017, respectively) (a) $ 170,450 $ 157,758 $ 320,222 Interest (net of capitalization) $ 45,532 $ 49,762 $ 61,243 Supplemental non-cash disclosures related to investing activities: Capital expenditures included in Accounts payable $ 199,451 $ 134,784 $ 89,188 (a) Includes approximately $41 million of income taxes paid in 2018 from the gain on sale of the Polyolefin Catalysts Divestiture, and $257 million of income taxes paid in 2017 from the gain on sale of the Chemetall Surface Treatment business. As part of the purchase price paid for the acquisition of a 60% interest in MRL’s Wodgina Project, the Company transferred $164.7 million of its construction in progress of the designated Kemerton assets during the year ended December 31, 2019, representing MRL’s 40% interest in the assets. The cash outflow for these assets is recorded in Capital expenditures within Cash flows from investing activities on the consolidated statements of cash flows. The Company expects to transfer a total of approximately $480 million over the construction of these assets, as defined in the purchase agreement. See Note 2, “Acquisitions,” for further details. Other, net within Cash flows from operating activities on the consolidated statements of cash flows for the years ended December 31, 2019 and 2018 included $14.3 million and $28.4 million , respectively, representing the reclassification of the current portion of the one-time transition tax resulting from the enactment of the TCJA, from Other noncurrent liabilities to Income taxes payable within current liabilities. Included in Other, net for the year ended December 31, 2017 is $394.9 million related to the noncurrent portion of the one-time transition tax resulting from the enactment of the TCJA. For additional information, see Note 21, “Income Taxes.” In addition, included in Other, net for the years ended December 31, 2019, 2018 and 2017 is $27.4 million , $10.5 million and $11.1 million , respectively, related to losses on fluctuations in foreign currency exchange rates. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share are calculated as follows (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Basic earnings per share Numerator: Net income attributable to Albemarle Corporation $ 533,228 $ 693,562 $ 54,850 Denominator: Weighted-average common shares for basic earnings per share 105,949 108,427 110,914 Basic earnings per share $ 5.03 $ 6.40 $ 0.49 Diluted earnings per share Numerator: Net income attributable to Albemarle Corporation $ 533,228 $ 693,562 $ 54,850 Denominator: Weighted-average common shares for basic earnings per share 105,949 108,427 110,914 Incremental shares under stock compensation plans 372 1,031 1,466 Weighted-average common shares for diluted earnings per share 106,321 109,458 112,380 Diluted earnings per share $ 5.02 $ 6.34 $ 0.49 At December 31, 2019 , there were 214,904 common stock equivalents not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. Included in the calculation of basic earnings per share are unvested restricted stock awards that contain nonforfeitable rights to dividends. At December 31, 2019 , there were 18,100 unvested shares of restricted stock awards outstanding. We have the authority to issue 15 million shares of preferred stock in one or more classes or series. As of December 31, 2019 , no shares of preferred stock have been issued. In November 2016, our Board of Directors authorized an increase in the number of shares the Company is permitted to repurchase under our share repurchase program, pursuant to which the Company is now permitted to repurchase up to a maximum of 15 million shares, including those previously authorized but not yet repurchased. Under our existing Board authorized share repurchase program, during 2018, the Company entered into two separate accelerated share repurchase (“ASR”) agreements with financial institutions. Under each ASR agreement, the Company paid $250 million from available cash on hand. Under the terms of the first ASR agreement, which was completed on September 28, 2018, the Company received and retired a total of 2,680,704 shares, calculated based on the daily Rule 10b-18 volume-weighted average prices of the Company’s common stock over the term of the ASR agreement, less an agreed discount. Under the terms of the second ASR agreement, which was completed on December 7, 2018, the company received and retired a total of 2,581,950 shares, calculated based on the daily Rule 10b-18 weighted average prices of the Company’s common stock over the terms of the ASR agreement, less an agreed discount. The Company determined that each ASR agreement met the criteria to be accounted for as a forward contract indexed to its stock and was therefore treated as an equity instrument. In total, we received and retired 5,262,654 shares under these agreements, which reduced the Company’s weighted average shares outstanding for purposes of calculating basic and diluted earnings per share for the year ended December 31, 2018. Under our existing Board authorized share repurchase program, the Company entered into an ASR agreement with a financial institution on March 1, 2017. Under the ASR agreement, in March 2017, the Company paid $250 million from available cash on hand and received and retired an initial delivery of 1,948,178 shares of our common stock. Under the terms of the ASR agreement, on June 16, 2017, the transaction was completed and we received and retired a final settlement of 392,905 shares, calculated based on the daily Rule 10b-18 volume-weighted average prices of the Company’s common stock over the term of the ASR agreement, less an agreed discount. The Company determined that the ASR agreement met the criteria to be accounted for as a forward contract indexed to its stock and was therefore treated as an equity instrument. In total, we received and retired 2,341,083 shares under the ASR agreement, which reduced the Company’s weighted average shares outstanding for purposes of calculating basic and diluted earnings per share for the year ended December 31, 2017. There were no shares of the Company’s common stock repurchased during the year ended December 31, 2019. As of December 31, 2019 , there were 7,396,263 remaining shares available for repurchase under the Company’s authorized share repurchase program. |
Other Accounts Receivable
Other Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Other Accounts Receivable | Other Accounts Receivable: Other accounts receivable consist of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Value added tax/consumption tax $ 52,059 $ 40,480 Other 15,492 11,579 Total $ 67,551 $ 52,059 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories: The following table provides a breakdown of inventories at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Finished goods (a) $ 495,639 $ 482,355 Raw materials and work in process (b) 205,781 158,290 Stores, supplies and other 67,564 59,895 Total $ 768,984 $ 700,540 (a) Included $44.3 million and $104.3 million at December 31, 2019 and 2018 , respectively, of chemical grade spodumene in our Lithium segment, most of which is converted to battery-grade products either internally or through our tolling agreements. (b) Included $109.3 million and $71.4 million at December 31, 2019 and 2018 , respectively, of work in process in our Lithium segment. Approximately 10% of our inventories are valued using the last-in, first-out (“LIFO”) method at December 31, 2019 and 2018 . The portion of our domestic inventories stated on the LIFO basis amounted to $78.7 million and $69.2 million at December 31, 2019 and 2018 , respectively, which are below replacement cost by approximately $30.8 million and $32.8 million , respectively. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Other Current Assets | Other Current Assets: Other current assets consist of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Income tax receivables $ 72,246 $ 40,116 Prepaid expenses 83,637 43,172 Other 6,930 1,502 Total $ 162,813 $ 84,790 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment, at cost, consist of the following at December 31, 2019 and 2018 (in thousands): Useful Lives (Years) December 31, 2019 2018 Land — $ 116,728 $ 123,518 Land improvements 10 – 30 83,256 63,349 Buildings and improvements 10 – 50 337,728 251,980 Machinery and equipment (a) 2 – 45 3,355,519 2,780,478 Mineral rights and reserves 7 – 60 1,764,067 696,033 Construction in progress — 1,160,545 883,705 Total $ 6,817,843 $ 4,799,063 (a) Consists primarily of (1) short-lived production equipment components, office and building equipment and other equipment with estimated lives ranging 2 – 7 years, (2) production process equipment (intermediate components) with estimated lives ranging 8 – 19 years, (3) production process equipment (major unit components) with estimated lives ranging 20 – 29 years, and (4) production process equipment (infrastructure and other) with estimated lives ranging 30 – 45 years. The cost of property, plant and equipment is depreciated generally by the straight-line method. Depletion of mineral rights is based on the units-of-production method. Depreciation expense, including depletion, amounted to $183.3 million , $170.0 million and $169.5 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. Interest capitalized on significant capital projects in 2019 , 2018 and 2017 was $30.2 million , $19.3 million and $7.4 million , respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Investments | Investments: Investments include our share of unconsolidated joint ventures, nonmarketable securities and marketable equity securities. The following table details our investment balances at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Joint ventures $ 534,430 $ 486,032 Nonmarketable securities 11,746 9,177 Marketable equity securities 33,637 33,513 Total $ 579,813 $ 528,722 Our ownership positions in significant unconsolidated investments are shown below: December 31, 2019 2018 2017 * Windfield Holdings Pty. Ltd. - a joint venture with Sichuan Tianqi Lithium Industries, Inc., that mines lithium ore and produces lithium concentrate 49 % 49 % 49 % * Nippon Aluminum Alkyls - a joint venture with Mitsui Chemicals, Inc. that produces aluminum alkyls 50 % 50 % 50 % * Nippon Ketjen Company Limited - a joint venture with Sumitomo Metal Mining Company Limited that produces refinery catalysts 50 % 50 % 50 % * Eurecat S.A. - a joint venture with Axens Group for refinery catalysts regeneration services 50 % 50 % 50 % * Fábrica Carioca de Catalisadores S.A. - a joint venture with Petrobras Quimica S.A. - PETROQUISA that produces catalysts and includes catalysts research and product development activities 50 % 50 % 50 % Our investment in the significant unconsolidated joint ventures above amounted to $513.8 million and $466.1 million as of December 31, 2019 and 2018 , respectively, and the amount included in Equity in net income of unconsolidated investments (net of tax) in the consolidated statements of income totaled $128.0 million , $88.8 million and $86.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Undistributed earnings attributable to our significant unconsolidated investments represented approximately $216.9 million and $159.9 million of our consolidated retained earnings at December 31, 2019 and 2018 , respectively. All of the unconsolidated joint ventures in which we have investments are private companies and accordingly do not have a quoted market price available. The following summary lists the assets, liabilities and results of operations for our significant unconsolidated joint ventures presented herein (in thousands): December 31, 2019 2018 Summary of Balance Sheet Information: Current assets $ 473,426 $ 476,460 Noncurrent assets 1,404,765 1,159,866 Total assets $ 1,878,191 $ 1,636,326 Current liabilities $ 201,792 $ 191,971 Noncurrent liabilities 583,839 422,769 Total liabilities $ 785,631 $ 614,740 Year Ended December 31, 2019 2018 2017 Summary of Statements of Income Information: Net sales $ 910,891 $ 829,590 $ 687,561 Gross profit $ 496,150 $ 456,518 $ 353,577 Income before income taxes $ 384,690 $ 332,632 $ 267,805 Net income $ 229,733 $ 225,791 $ 184,777 We have evaluated each of the unconsolidated investments pursuant to current accounting guidance and none qualify for consolidation. Dividends received from our significant unconsolidated investments were $71.0 million , $56.4 million and $38.1 million in 2019 , 2018 and 2017 , respectively. At December 31, 2019 and 2018 , the carrying amount of our investments in unconsolidated joint ventures differed from the amount of underlying equity in net assets by approximately $15.3 million and $0.4 million , respectively. These amounts represent the differences between the value of certain assets of the joint ventures and our related valuation on a U.S. GAAP basis. The Company holds a 49% equity interest in Windfield Holdings Pty. Ltd. (“Windfield”), which we acquired in the Rockwood acquisition. With regards to the Company’s ownership in Windfield, the 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, the Company does not consolidate Windfield as it is not the primary beneficiary. The carrying amount of our 49% equity interest in Windfield, which is our most significant VIE, was $397.2 million and $349.6 million at December 31, 2019 and December 31, 2018 , respectively. The Company’s aggregate net investment in all other entities which it considers to be VIE’s for which the Company is not the primary beneficiary was $7.6 million and $8.1 million at December 31, 2019 and December 31, 2018 , respectively. Our unconsolidated VIEs are reported in Investments in 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. As part of the original Windfield joint venture agreement, Tianqi Lithium Corporation (“Tianqi”) was granted an option to purchase from 20% to 30% of the equity interests in Rockwood Lithium GmbH, a wholly-owned German subsidiary of Albemarle, and its subsidiaries. In February 2017, Albemarle and Tianqi terminated the option agreement, and as a result, we will retain 100% of the ownership interest in Rockwood Lithium GmbH and its subsidiaries. Following the termination of the option agreement, the $13.1 million fair value of the option agreement originally recorded in Noncontrolling interests was reversed and recorded as an adjustment to Additional paid-in capital. The Company holds a 50% equity interest in Jordan Bromine Company Limited (“JBC”), reported in the Bromine Specialties segment. The Company consolidates this venture as it is considered the primary beneficiary due to its operational and financial control. On October 31, 2019, the Company completed the acquisition of 60% interest in MRL’s Wodgina Project and formed an unincorporated joint venture with MRL. The 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. See Note 2, “Acquisitions,” for additional information. We maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of our Executive Deferred Compensation Plan (“EDCP”), subject to the claims of our creditors in the event of our insolvency. Assets of the Trust, in conjunction with our EDCP, are accounted for as trading securities in accordance with authoritative accounting guidance. The assets of the Trust consist primarily of mutual fund investments and are marked-to-market on a monthly basis through the consolidated statements of income. As of December 31, 2019 and 2018 , these marketable securities amounted to $28.7 million and $26.3 million , respectively. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Other Assets | Other Assets: Other assets consist of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Deferred income taxes (a) $ 15,275 $ 17,029 Assets related to unrecognized tax benefits (a) 26,127 12,984 Operating leases (b) 133,864 — Other (c) 37,795 50,122 Total $ 213,061 $ 80,135 (a) See Note 1, “Summary of Significant Accounting Policies” and Note 21, “Income Taxes.” (b) See Note 18, “Leases.” (c) As of December 31, 2019 and 2018, a $28.7 million reserve was recorded against a note receivable on one of our European entities no longer deemed probable of collection. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
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 years ended December 31, 2019 and 2018 (in thousands): Lithium Bromine Specialties Catalysts All Other Total Balance at December 31, 2017 $ 1,389,089 $ 20,319 $ 194,361 $ 6,586 $ 1,610,355 Foreign currency translation adjustments and other (34,310 ) — (8,876 ) — (43,186 ) Balance at December 31, 2018 1,354,779 20,319 185,485 6,586 1,567,169 Acquisitions (a) 31,762 — — — 31,762 Foreign currency translation adjustments and other (15,695 ) — (4,451 ) — (20,146 ) Balance at December 31, 2019 $ 1,370,846 $ 20,319 $ 181,034 $ 6,586 $ 1,578,785 (a) Represents preliminary purchase price adjustments for the Wodgina Project acquisition recorded for the year ended December 31, 2019. See Note 2, “Acquisitions,” for additional information. Other intangibles consist of the following at December 31, 2019 and 2018 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2017 $ 439,312 $ 18,981 $ 61,618 $ 37,256 $ 557,167 Foreign currency translation adjustments and other (10,940 ) (528 ) (5,817 ) 6,452 (10,833 ) Balance at December 31, 2018 428,372 18,453 55,801 43,708 546,334 Foreign currency translation adjustments and other (5,910 ) (366 ) (781 ) (2,426 ) (9,483 ) Balance at December 31, 2019 $ 422,462 $ 18,087 $ 55,020 $ 41,282 $ 536,851 Accumulated Amortization Balance at December 31, 2017 $ (74,704 ) $ (8,295 ) $ (35,203 ) $ (17,462 ) $ (135,664 ) Amortization (23,402 ) — (1,450 ) (3,127 ) (27,979 ) Foreign currency translation adjustments and other 2,309 119 1,405 (381 ) 3,452 Balance at December 31, 2018 (95,797 ) (8,176 ) (35,248 ) (20,970 ) (160,191 ) Amortization (23,020 ) — (1,388 ) (2,714 ) (27,122 ) Foreign currency translation adjustments and other 2,068 238 439 2,339 5,084 Balance at December 31, 2019 $ (116,749 ) $ (7,938 ) $ (36,197 ) $ (21,345 ) $ (182,229 ) Net Book Value at December 31, 2018 $ 332,575 $ 10,277 $ 20,553 $ 22,738 $ 386,143 Net Book Value at December 31, 2019 $ 305,713 $ 10,149 $ 18,823 $ 19,937 $ 354,622 (a) Net Book Value includes only indefinite-lived intangible assets. Useful lives range from 13 – 25 years for customer lists and relationships; 8 – 20 years for patents and technology; and primarily 5 – 25 years for other. Amortization of other intangibles amounted to $27.1 million , $28.0 million and $25.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Included in amortization for the years ended December 31, 2019 , 2018 and 2017 is $19.5 million , $19.7 million and $17.7 million , respectively, of amortization using the pattern of economic benefit method. Total estimated amortization expense of other intangibles for the next five fiscal years is as follows (in thousands): Estimated Amortization Expense 2020 $ 25,356 2021 $ 24,747 2022 $ 24,153 2023 $ 23,586 2024 $ 22,787 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses: Accrued expenses consist of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Employee benefits, payroll and related taxes $ 82,028 $ 77,814 Wodgina Project acquisition consideration obligation (a) 260,686 — Other (b) 210,446 179,509 Total $ 553,160 $ 257,323 (a) Represents the 40% interest in the Kemerton assets, which are under construction, expected to be transferred to MRL in the next twelve months as part of the consideration paid for the Wodgina Project acquisition, as well as the $64.8 million of stamp duties levied on the assets purchased. See Note 2, “Acquisitions,” for further details. (b) No individual component exceeds 5% of total current liabilities. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt: Long-term debt consisted of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 1.125% notes, net of unamortized discount and debt issuance costs of $5,659 at December 31, 2019 $ 549,241 $ — 1.625% notes, net of unamortized discount and debt issuance costs of $5,696 at December 31, 2019 549,204 — 1.875% Senior notes, net of unamortized discount and debt issuance costs of $1,831 at December 31, 2019 and $2,841 at December 31, 2018 434,241 444,155 3.45% Senior notes, net of unamortized discount and debt issuance costs of $3,533 at December 31, 2019 296,467 — 4.15% Senior notes, net of unamortized discount and debt issuance costs of $2,398 at December 31, 2019 and $2,884 at December 31, 2018 422,603 422,116 4.50% Senior notes, net of unamortized discount and debt issuance costs of $589 at December 31, 2018 — 174,626 5.45% Senior notes, net of unamortized discount and debt issuance costs of $3,850 at December 31, 2019 and $4,004 at December 31, 2018 346,150 345,996 Floating rate notes, net of unamortized debt issuance costs of $1,169 at December 31, 2019 198,831 — Commercial paper notes 186,700 306,606 Variable-rate foreign bank loans 7,296 7,216 Finance lease obligations 59,524 4,495 Total long-term debt 3,050,257 1,705,210 Less amounts due within one year 187,336 307,294 Long-term debt, less current portion $ 2,862,921 $ 1,397,916 Aggregate annual maturities of long-term debt as of December 31, 2019 are as follows (in millions): 2020 — $187.3 ; 2021 — $436.1 ; 2022 — $200.0 ; 2023 — $0.0 ; 2024 — $425.0 ; thereafter— $1,826.0 . 2019 Notes On November 25, 2019, we issued a series of notes (collectively, the “2019 Notes”) as follows: • $200.0 million aggregate principal amount of notes, bearing interest at a floating rate payable quarterly on February 15, May 15, August 15 and November 15 of each year, beginning in 2020 (“Floating Rate Notes”), with the interest rate reset on each interest payment date. Borrowings under these notes bear interest at a floating rate based on the 3-month London inter-bank offered rate (“LIBOR”) plus 105 basis points. The floating interest rate for the initial interest period is 2.9595% . These notes mature on November 15, 2022. • €500.0 million aggregate principal amount of notes, bearing interest at a rate of 1.125% payable annually on November 25 of each year, beginning in 2020. The effective interest rate on these notes is approximately 1.30% . These notes mature on November 25, 2025. • €500.0 million aggregate principal amount of notes, bearing interest at a rate of 1.625% payable annually on November 25 of each year, beginning in 2020. The effective interest rate on these notes is approximately 1.74% . These notes mature on November 25, 2028. • $300.0 million aggregate principal amount of senior notes, bearing interest at a rate of 3.45% payable semi-annually on May 15 and November 15 of each year, beginning in 2020. The effective interest rate on these senior notes is approximately 3.58% . These senior notes mature on November 15, 2029. The net proceeds from the issuance of the 2019 Notes were used to repay the $1.0 billion balance of the 2019 Credit Facility (see below for further details), a large portion of approximately $370 million of commercial paper notes, the remaining balance of $175.2 million of the senior notes issued on December 10, 2010 (“2010 Senior Notes”), and for general corporate purposes. The 2010 Senior Notes were originally due to mature on December 15, 2020 and bore interest at a rate of 4.50% . During the year ended December 31, 2019, we recorded a loss on early extinguishment of debt of $4.8 million in Interest and financing expenses, representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of the 2010 Senior Notes. 2014 Senior Notes We currently have the following senior notes outstanding, initially issued in the fourth quarter of 2014: • €393.0 million aggregate principal amount of senior notes, issued on December 8, 2014, bearing interest at a rate of 1.875% payable annually on December 8 of each year, beginning in 2015. The effective interest rate on these senior notes is approximately 2.10% . These senior notes mature on December 8, 2021. • $425.0 million aggregate principal amount of senior notes, issued on November 24, 2014, bearing interest at a rate of 4.15% payable semi-annually on June 1 and December 1 of each year, beginning June 1, 2015. The effective interest rate on these senior notes is approximately 5.06% . These senior notes mature on December 1, 2024. • $350.0 million aggregate principal amount of senior notes, issued on November 24, 2014, bearing interest at a rate of 5.45% payable semi-annually on June 1 and December 1 of each year, beginning June 1, 2015. The effective interest rate on these senior notes is approximately 5.50% . These senior notes mature on December 1, 2044. On January 22, 2014, we entered into a pay fixed, receive variable rate forward starting interest rate swap, with a notional amount of $325.0 million , with J.P. Morgan Chase Bank, N.A., to be effective October 15, 2014. Our risk management objective and strategy for undertaking this hedge was to eliminate the variability in the interest rate and partial credit spread on the 20 future semi-annual coupon payments that we will pay in connection with our 4.15% senior notes. On October 15, 2014, the swap was settled, resulting in a payment to the counterparty of $33.4 million . This amount was recorded in Accumulated other comprehensive loss and is being amortized to interest expense over the life of the 4.15% senior notes. The amount to be reclassified to interest expense from Accumulated other comprehensive loss during the next twelve months is approximately $3.3 million . On December 18, 2014, the carrying value of the 1.875% Euro-denominated senior notes was designated as an effective hedge of our net investment in foreign subsidiaries where the Euro serves as the functional currency, and beginning on the date of designation, gains or losses on the revaluation of these senior notes to our reporting currency have been and will be recorded in Accumulated other comprehensive loss. During the years ended December 31, 2019 , 2018 and 2017 , gains (losses) of $8.4 million , $25.8 million and ($41.8) million (net of income taxes), respectively, were recorded in Accumulated other comprehensive loss in connection with the revaluation of these senior notes to our reporting currency. Credit Agreements Our revolving, unsecured credit agreement dated as of June 21, 2018, as amended on August 14, 2019 (the “2018 Credit Agreement”), currently provides for borrowings of up to $1.0 billion and matures on August 9, 2024. Borrowings under the 2018 Credit Agreement bear interest at variable rates based on an average LIBOR for deposits in the relevant currency plus an applicable margin which ranges from 0.910% to 1.500% , depending on the Company’s credit rating from Standard & Poor’s Ratings Services LLC (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Inc. (“Fitch”). The applicable margin on the facility was 1.125% as of December 31, 2019 . There were no borrowings outstanding under the 2018 Credit Agreement as of December 31, 2019 . On August 14, 2019, the Company entered into a $1.2 billion unsecured credit facility (the “2019 Credit Facility”) with several banks and other financial institutions. The lenders’ commitment to provide loans under the 2019 Credit Facility terminates on August 11, 2020, with each such loan maturing one year after the funding of such loan. The Company can request that the maturity date of loans be extended for an additional period of up to four additional years, but any such extension is subject to the approval of the lenders. Borrowings under the 2019 Credit Facility bear interest at variable rates based on an average LIBOR for deposits in the relevant currency plus an applicable margin which ranges from 0.875% to 1.625% , depending on the Company’s credit rating from S&P, Moody’s and Fitch. The applicable margin on the credit facility was 1.125% as of December 31, 2019 . In October 2019, we borrowed $1.0 billion under this credit facility to fund the cash portion of the October 31, 2019 acquisition of a 60% interest in MRL’s Wodgina Project and for general corporate purposes and as noted above, such amount was repaid in full in November 2019. Following the repayment of the amounts borrowed, the Company had $200 million remaining to borrow under this credit facility. There were no borrowings outstanding under the 2019 Credit Facility as of December 31, 2019 . In addition, on August 14, 2019, the Company entered into an amendment to its existing credit agreement, dated as of June 21, 2018 to (a) extend the maturity date to August 9, 2024 (subject to the Company’s right to request that such maturity date be further extended for an additional one-year period), and (b) conform certain representations, warranties and covenants to those under the 2019 Credit Facility. Borrowings under the 2019 Credit Facility and 2018 Credit Agreement (together “the Credit Agreements”) are conditioned upon satisfaction of certain conditions precedent, including the absence of defaults. The Company is subject to one financial covenant, as well as customary affirmative and negative covenants. The financial covenant requires that the Company’s consolidated funded debt to consolidated EBITDA ratio (as such terms are defined in the Credit Agreements) to be less than or equal to 3.50 : 1.00 , subject to adjustments in accordance with the terms of the Credit Agreements relating to a consummation of an acquisition where the consideration includes cash proceeds from issuance of funded debt in excess of $500 million . The Credit Agreements also contain 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 Credit Agreements could result in all loans and other obligations becoming immediately due and payable and the credit facility being terminated. Commercial Paper Notes On May 29, 2013, we entered into agreements to initiate a commercial paper program on a private placement basis under which we may issue unsecured commercial paper notes (the “Commercial Paper Notes”) from time-to-time up to a maximum aggregate principal amount outstanding at any time of $750.0 million . The proceeds from the issuance of the Commercial Paper Notes are expected to be used for general corporate purposes, including the repayment of other debt of the Company. The Credit Agreements are available to repay the Commercial Paper Notes, if necessary. Aggregate borrowings outstanding under the Credit Agreements and the Commercial Paper Notes will not exceed the $1.2 billion current maximum amount available under the Credit Agreements. The Commercial Paper Notes will be sold at a discount from par, or alternatively, will be sold at par and bear interest at rates that will vary based upon market conditions at the time of issuance. The maturities of the Commercial Paper Notes will vary but may not exceed 397 days from the date of issue. The definitive documents relating to the commercial paper program contain customary representations, warranties, default and indemnification provisions. At December 31, 2019 , we had $186.7 million of Commercial Paper Notes outstanding bearing a weighted-average interest rate of approximately 2.01% and a weighted-average maturity of 39 days . Other We have additional uncommitted credit lines with various U.S. and foreign financial institutions that provide for borrowings of up to approximately $307 million at December 31, 2019 . Outstanding borrowings under these agreements were $7.3 million and $7.2 million at December 31, 2019 and 2018 , respectively. The average interest rate on borrowings under these agreements during 2019 , 2018 and 2017 was approximately 0.36% , 0.69% and 1.26% , respectively. At December 31, 2019 and 2018 , we had the ability and intent to refinance our borrowings under our other existing credit lines with borrowings under the Credit Agreements. Therefore, the amounts outstanding under those credit lines, if any, are classified as long-term debt at December 31, 2019 and 2018 . At December 31, 2019 , we had the ability to borrow $1.01 billion under our commercial paper program and the Credit Agreements. We believe that as of December 31, 2019 , we were, and currently are, in compliance with all of our debt covenants. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits: We maintain various noncontributory defined benefit pension plans covering certain employees, primarily in the U.S., the U.K., Germany and Japan. We also have a contributory defined benefit plan covering certain Belgian employees. The benefits for these plans are based primarily on compensation and/or years of service. Our U.S. and U.K. defined benefit plans for non-represented employees are closed to new participants, with no additional benefits accruing under these plans as participants’ accrued benefits have been frozen. The funding policy for each plan complies with the requirements of relevant governmental laws and regulations. The pension information for all periods presented includes amounts related to salaried and hourly plans. The following provides a reconciliation of benefit obligations, plan assets and funded status, as well as a summary of significant assumptions, for our defined benefit pension plans (in thousands): Year Ended December 31, 2019 Year Ended December 31, 2018 U.S. Pension Plans Foreign Pension Plans U.S. Pension Plans Foreign Pension Plans Change in benefit obligations: Benefit obligation at January 1 $ 635,866 $ 240,303 $ 685,963 $ 275,006 Service cost 730 3,680 1,043 3,919 Interest cost 28,199 4,998 26,804 5,144 Plan amendments — — — 233 Actuarial loss (gain) 56,108 21,588 (36,844 ) (17,885 ) Benefits paid (42,183 ) (10,088 ) (41,100 ) (9,974 ) Employee contributions — 133 — 182 Foreign exchange gain — (1,772 ) — (12,632 ) Settlements/curtailments — (398 ) — (3,628 ) Other — (70 ) — (62 ) Benefit obligation at December 31 $ 678,720 $ 258,374 $ 635,866 $ 240,303 Change in plan assets: Fair value of plan assets at January 1 $ 513,075 $ 70,584 $ 580,396 $ 79,478 Actual return on plan assets 82,926 9,417 (28,457 ) (1,593 ) Employer contributions 2,865 10,572 2,236 10,700 Benefits paid (42,183 ) (10,088 ) (41,100 ) (9,974 ) Employee contributions — 133 — 182 Foreign exchange gain (loss) — 1,316 — (4,519 ) Settlements/curtailments — (398 ) — (3,628 ) Other — (70 ) — (62 ) Fair value of plan assets at December 31 $ 556,683 $ 81,466 $ 513,075 $ 70,584 Funded status at December 31 $ (122,037 ) $ (176,908 ) $ (122,791 ) $ (169,719 ) December 31, 2019 December 31, 2018 U.S. Pension Plans Foreign Pension Plans U.S. Pension Plans Foreign Pension Plans Amounts recognized in consolidated balance sheets: Current liabilities (accrued expenses) $ (1,224 ) $ (5,648 ) $ (1,342 ) $ (5,772 ) Noncurrent liabilities (pension benefits) (120,813 ) (171,260 ) (121,449 ) (163,947 ) Net pension liability $ (122,037 ) $ (176,908 ) $ (122,791 ) $ (169,719 ) Amounts recognized in accumulated other comprehensive (loss) income: Prior service benefit $ — $ 224 $ — $ (409 ) Net amount recognized $ — $ 224 $ — $ (409 ) Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 3.56 % 1.33 % 4.59 % 2.15 % Rate of compensation increase — % 3.72 % — % 3.63 % The accumulated benefit obligation for all defined benefit pension plans was $927.6 million and $867.4 million at December 31, 2019 and 2018 , respectively. Postretirement medical benefits and life insurance is provided for certain groups of U.S. retired employees. Medical and life insurance benefit costs have been funded principally on a pay-as-you-go basis. Although the availability of medical coverage after retirement varies for different groups of employees, the majority of employees who retire before becoming eligible for Medicare can continue group coverage by paying a portion of the cost of a monthly premium designed to cover the claims incurred by retired employees subject to a cap on payments allowed. The availability of group coverage for Medicare-eligible retirees also varies by employee group with coverage designed either to supplement or coordinate with Medicare. Retirees generally pay a portion of the cost of the coverage. Plan assets for retiree life insurance are held under an insurance contract and are reserved for retiree life insurance benefits. In 2005, the postretirement medical benefit available to U.S. employees was changed to provide that employees who are under age 50 as of December 31, 2005 would no longer be eligible for a company-paid retiree medical premium subsidy. Employees who are of age 50 and above as of December 31, 2005 and who retire after January 1, 2006 will have their retiree medical premium subsidy capped. Effective January 1, 2008, our medical insurance for certain groups of U.S. retired employees is now insured through a medical carrier. The following provides a reconciliation of benefit obligations, plan assets and funded status, as well as a summary of significant assumptions, for our postretirement benefit plans (in thousands): Year Ended December 31, 2019 2018 Other Postretirement Benefits Other Postretirement Benefits Change in benefit obligations: Benefit obligation at January 1 $ 50,390 $ 56,647 Service cost 98 117 Interest cost 2,197 2,168 Actuarial loss (gain) 5,445 (5,661 ) Benefits paid (3,041 ) (2,881 ) Benefit obligation at December 31 $ 55,089 $ 50,390 Change in plan assets: Fair value of plan assets at January 1 $ — $ 834 Actual return on plan assets — (253 ) Employer contributions 3,041 2,300 Benefits paid (3,041 ) (2,881 ) Fair value of plan assets at December 31 $ — $ — Funded status at December 31 $ (55,089 ) $ (50,390 ) December 31, 2019 2018 Other Postretirement Benefits Other Postretirement Benefits Amounts recognized in consolidated balance sheets: Current liabilities (accrued expenses) $ (4,190 ) $ (4,233 ) Noncurrent liabilities (postretirement benefits) (50,899 ) (46,157 ) Net postretirement liability $ (55,089 ) $ (50,390 ) Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 3.53 % 4.55 % Rate of compensation increase 3.50 % 3.50 % The components of pension benefits cost (credit) are as follows (in thousands): Year Ended Year Ended Year Ended December 31, 2019 December 31, 2018 December 31, 2017 U.S. Pension Plans Foreign Pension Plans U.S. Pension Plans Foreign Pension Plans U.S. Pension Plans Foreign Pension Plans Service cost $ 730 $ 3,680 $ 1,043 $ 3,919 $ 985 $ 2,547 Interest cost 28,199 4,998 26,804 5,144 28,614 5,128 Expected return on assets (33,926 ) (3,837 ) (38,621 ) (4,204 ) (36,243 ) (4,441 ) Actuarial loss (gain) 7,106 16,784 30,234 (10,833 ) (13,910 ) 483 Amortization of prior service benefit — 37 60 34 75 56 Total net pension benefits cost (credit) $ 2,109 $ 21,662 $ 19,520 $ (5,940 ) $ (20,479 ) $ 3,773 Weighted-average assumption percentages: Discount rate 4.59 % 2.15 % 4.03 % 1.94 % 4.43 % 2.00 % Expected return on plan assets 6.89 % 5.51 % 6.89 % 5.52 % 6.89 % 6.16 % Rate of compensation increase — % 3.63 % — % 3.18 % — % 3.18 % Effective January 1, 2020 , the weighted-average expected rate of return on plan assets for the U.S. and foreign defined benefit pension plans is 6.88% and 4.07% , respectively. The components of postretirement benefits cost (credit) are as follows (in thousands): Year Ended December 31, 2019 2018 2017 Other Postretirement Benefits Other Postretirement Benefits Other Postretirement Benefits Service cost $ 98 $ 117 $ 121 Interest cost 2,197 2,168 2,340 Expected return on assets — (7 ) (110 ) Actuarial loss (gain) 5,449 (5,400 ) 2,014 Amortization of prior service benefit — (48 ) (95 ) Total net postretirement benefits cost (credit) $ 7,744 $ (3,170 ) $ 4,270 Weighted-average assumption percentages: Discount rate 4.55 % 3.99 % 4.35 % Expected return on plan assets — % 7.00 % 7.00 % Rate of compensation increase 3.50 % 3.50 % 3.50 % All components of net benefit cost (credit), other than service cost, are included in Other expenses, net on the consolidated statements of income. The mark-to-market actuarial loss in 2019 is primarily attributable to a decrease in the weighted-average discount rate to 3.56% from 4.59% for our U.S. pension plans and to 1.33% from 2.15% for our foreign pension plans to reflect market conditions as of the December 31, 2019 measurement date. This was partially offset by a higher return on pension plan assets in 2019 than was expected, as a result of overall market and investment portfolio performance. The weighted-average actual return on our U.S. and foreign pension plan assets was 15.82% versus an expected return of 6.72% . The mark-to-market actuarial loss in 2018 is primarily attributable to a lower return on pension plan assets in 2018 than was expected, as a result of overall market and investment portfolio performance. The weighted-average actual return on our U.S. and foreign pension plan assets was (4.55)% versus an expected return of 6.73% . The mark-to-market actuarial loss in 2018 was partially offset by an increase in the weighted-average discount rate to 4.59% from 4.03% for our U.S. pension plans and to 2.15% from 1.94% for our foreign pension plans to reflect market conditions as of the December 31, 2018 measurement date. The mark-to-market actuarial gain in 2017 is primarily attributable to a higher return on pension plan assets in 2017 than was expected, as a result of overall market and investment portfolio performance. The weighted-average actual return on our U.S. and foreign pension plan assets was 14.31% versus an expected return of 6.73% . The mark-to-market actuarial gain in 2017 was partially offset by a decrease in the weighted-average discount rate to 4.03% from 4.43% for our U.S. pension plans and to 1.94% from 2.00% for our foreign pension plans to reflect market conditions as of the December 31, 2017 measurement date. 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. Investments for which market quotations are readily available are valued at the closing price on the last business day of the year. Listed securities for which no sale was reported on such date are valued at the mean between the last reported bid and asked price. Securities traded in the over-the-counter market are valued at the closing price on the last business day of the year or at bid price. The net asset value of shares or units is based on the quoted market value of the underlying assets. The market value of corporate bonds is based on institutional trading lots and is most often reflective of bid price. Government securities are valued at the mean between bid and ask prices. Holdings in private equity securities are typically valued using the net asset valuations provided by the underlying private investment companies. The following tables set forth the assets of our pension and postretirement plans that were accounted for at fair value on a recurring basis as of December 31, 2019 and 2018 (in thousands): December 31, 2019 Quoted Prices in Active Markets for Identical Items (Level 1) Quoted Prices in Active Markets for Similar Items (Level 2) Unobservable Inputs (Level 3) Pension Assets: Domestic Equity (a) $ 119,842 $ 118,255 $ 1,587 $ — International Equity (b) 126,828 95,246 31,582 — Fixed Income (c) 317,667 279,731 37,936 — Absolute Return Measured at Net Asset Value (d) 73,777 — — — Cash 35 35 — — Total Pension Assets $ 638,149 $ 493,267 $ 71,105 $ — December 31, 2018 Quoted Prices in Active Markets for Identical Items (Level 1) Quoted Prices in Active Markets for Similar Items (Level 2) Unobservable Inputs (Level 3) Pension Assets: Domestic Equity (a) $ 113,355 $ 111,665 $ 1,690 $ — International Equity (b) 114,554 90,651 23,903 — Fixed Income (c) 254,437 219,124 35,313 — Absolute Return Measured at Net Asset Value (d) 71,987 — — — Cash 29,326 29,326 — — Total Pension Assets $ 583,659 $ 450,766 $ 60,906 $ — (a) Consists primarily of U.S. stock funds that track or are actively managed and measured against the S&P 500 index. (b) Consists primarily of international equity funds which invest in common stocks and other securities whose value is based on an international equity index or an underlying equity security or basket of equity securities. (c) Consists primarily of debt obligations issued by governments, corporations, municipalities and other borrowers. Also includes insurance policies. (d) Consists primarily of funds with holdings in private investment companies. See additional information about the Absolute Return investments below. Holdings in private investment companies are measured at fair value using the net asset value per share as a practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts of $73.8 million and $72.0 million as of December 31, 2019 and 2018 , respectively, are included in this table to permit reconciliation to the reconciliation of plan assets table above. The Company’s pension plan assets in the U.S. and U.K. represent approximately 97% of the total pension plan assets. The investment objective of these pension plan assets is to achieve solid returns while preserving capital to meet current plan cash flow requirements. Assets should participate in rising markets, with defensive action in declining markets expected to an even greater degree. Depending on market conditions, the broad asset class targets may range up or down by approximately 10% . These asset classes include but are not limited to hedge fund of funds, bonds and other fixed income vehicles, high yield fixed income securities, equities and distressed debt. At December 31, 2019 and 2018 , equity securities held by our pension and OPEB plans did not include direct ownership of Albemarle common stock. The weighted-average target allocations as of the measurement date are as follows: Target Allocation Equity securities 42 % Fixed income 49 % Absolute return 9 % Our Absolute Return investments consist primarily of our investments in hedge fund of funds. These are holdings in private investment companies with fair values that are based on significant unobservable inputs including assumptions where there is little, if any, market activity for the investment. Investment managers or fund managers associated with these investments provide valuations of the investments on a monthly basis utilizing the net asset valuation approach for determining fair values. These valuations are reviewed by the Company for reasonableness based on applicable sector, benchmark and company performance to validate the appropriateness of the net asset values as a fair value measurement. Where available, audited financial statements are obtained and reviewed for the investments as support for the manager’s investment valuation. In general, the investment objective of these funds is high risk-adjusted returns with an emphasis on preservation of capital. The investment strategies of each of the funds vary; however, the objective of our Absolute Return investments is complementary to the overall investment objective of our U.S. pension plan assets. We made contributions to our defined benefit pension and OPEB plans of $16.5 million , $15.2 million and $13.3 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. We expect contributions to our domestic nonqualified and foreign qualified and nonqualified pension plans to approximate $13 million in 2020 . Also, we expect to pay approximately $4 million in premiums to our U.S. postretirement benefit plan in 2020 . However, we may choose to make additional voluntary pension contributions in excess of these amounts. The current forecast of benefit payments, which reflects expected future service, amounts to (in millions): U.S. Pension Plans Foreign Pension Plans Other Postretirement Benefits 2020 $ 42.3 $ 10.6 $ 4.2 2021 $ 47.8 $ 10.0 $ 4.0 2022 $ 48.4 $ 9.5 $ 3.9 2023 $ 48.9 $ 12.3 $ 3.9 2024 $ 49.0 $ 10.4 $ 3.8 2025-2029 $ 240.9 $ 54.6 $ 17.5 We have a supplemental executive retirement plan (“SERP”), which provides unfunded supplemental retirement benefits to certain management or highly compensated employees. The SERP provides for incremental pension benefits to offset the limitations imposed on qualified plan benefits by federal income tax regulations. Costs (credits) relating to our SERP were $2.2 million , ($0.8) million and $2.6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The projected benefit obligation for the SERP recognized in the consolidated balance sheets at December 31, 2019 and 2018 was $21.3 million and $21.9 million , respectively. The benefit expenses and obligations of this SERP are included in the tables above. Benefits of $1.2 million are expected to be paid to SERP retirees in 2020 . On October 1, 2012, our Board of Directors approved amendments to the SERP, such that effective December 31, 2014, no additional benefits shall accrue under this plan and participants’ accrued benefits shall be frozen as of that date to reflect the same changes as were made under the U.S. qualified defined benefit plan. At December 31, 2019 , the assumed rate of increase in the pre-65 and post-65 per capita cost of covered health care benefits for U.S. retirees was zero as the employer-paid premium caps (pre-65 and post-65) were met starting January 1, 2013. Defined Contribution Plans On March 31, 2004, a new defined contribution pension plan benefit was adopted under the qualified defined contribution plan for U.S. non-represented employees hired after March 31, 2004. On October 1, 2012 our Board of Directors approved certain plan amendments, such that effective January 1, 2013, the defined contribution pension plan benefit is expanded to include non-represented employees hired prior to March 31, 2004, and revised the contribution for all participants to be based on 5% of eligible employee compensation. The employer portion of contributions to our U.S. defined contribution pension plan amounted to $11.5 million , $11.8 million , and $10.3 million in 2019 , 2018 and 2017 , respectively. Certain of our employees participate in our defined contribution 401(k) employee savings plan, which is generally available to all U.S. full-time salaried and non-union hourly employees and to employees who are covered by a collective bargaining agreement that provides for such participation. This U.S. defined contribution plan is funded with contributions made by the participants and us. Our contributions to the 401(k) plan amounted to $12.6 million , $12.7 million and $11.3 million in 2019 , 2018 and 2017 , respectively. In 2006, we formalized a new plan in the Netherlands similar to a collective defined contribution plan. The collective defined contribution plan is supported by annuity contracts through an insurance company. The insurance company unconditionally undertakes the legal obligation to provide specific benefits to specific individuals in return for a fixed amount of premiums. Our obligation under this plan is limited to a variable calculated employer match for each participant plus an additional fixed amount of contributions to assist in covering estimated cost of living and salary increases (indexing) and administrative costs for the overall plan. We paid approximately $9.7 million , $10.2 million and $9.9 million in 2019 , 2018 and 2017 , respectively, in annual premiums and related costs pertaining to this plan. Multiemployer Plan Certain current and former employees participate in a multiemployer plan in Germany, the Pensionskasse Dynamit Nobel Versicherungsverein auf Gegenseitigkeit, Troisdorf (“DN Pensionskasse”) that provides monthly payments in the case of disability, death or retirement. The risks of participating in a multiemployer plan are different from single-employer plans in the following ways: (a) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers, and (b) if a participating employer stops contributing to the plan due to financial inability to provide funding, the unfunded obligation of the plan may be borne by remaining participating employers. Some participants in the plan are subject to collective bargaining arrangements, which have no fixed expiration date. The contribution and benefit levels are not negotiated or significantly influenced by these collective bargaining arrangements. Also, the benefit levels generally are not subject to reduction. Under German insurance law, the DN Pensionskasse must be fully funded at all times. The DN Pensionskasse was fully funded as of December 31, 2018, the date of the most recently available information for the plan. This funding level would correspond to the highest funding zone status (at least 80% funded) under U.S. pension regulation. Since the plan liabilities need to be fully funded at all times according to local funding requirements, it is unlikely that the DN Pensionskasse plan will fail to fulfill its obligations, however, in such an event, the Company is liable for the benefits of its employees, and former employees of certain divested businesses, who participate in the plan. Additional information of the DN Pensionskasse is available in the public domain. The majority of the Company’s contributions are tied to employees’ contributions, which are generally calculated as a percentage of base compensation, up to a certain statutory ceiling. Our normal contributions to this plan were approximately $1.4 million in 2019 and $1.5 million in 2018 and 2017 . The Company’s contributions represented more than 5% of total contributions to the DN Pensionskasse in 2019 . Effective July 1, 2016, the DN Pensionskasse is subject to a financial improvement plan which expires on December 31, 2022, with the final contribution in the second quarter of 2023. This financial improvement plan calls for increased capital reserves to avoid future underfunding risk. During the years ended December 31, 2019, 2018 and 2017, we made contributions for our employees covered under this plan of approximately $1.8 million , $2.3 million and $3.3 million , respectively, recorded in Selling, general and administrative expenses, as a result of this financial improvement plan. The value of the additional funding required under the financial improvement plan each year is determined upon the completion of the annual financial statements and are payable in the second quarter of the following year. A portion of the additional funding necessary for the year will be based on an estimate prepared on September 30 of each year and payable in the fourth quarter of that same year. |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Noncurrent Liabilities | Other Noncurrent Liabilities: Other noncurrent liabilities consist of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Transition tax on foreign earnings (a) $ 303,490 $ 317,745 Wodgina Project acquisition consideration obligation (b) 120,800 — Operating leases (c) 114,686 — Liabilities related to uncertain tax positions (d) 21,169 22,877 Executive deferred compensation plan obligation 28,715 26,292 Environmental liabilities (e) 33,058 40,376 Asset retirement obligations (e) 55,848 41,489 Tax indemnification liability (f) 30,993 45,347 Other (g) 45,777 32,816 Total $ 754,536 $ 526,942 (a) Noncurrent portion of one-time transition tax on foreign earnings. See Note 21, “Income Taxes,” for additional information. (b) Represents the 40% interest in the Kemerton assets, which are under construction, expected to be transferred to MRL as part of the consideration paid for the Wodgina Project acquisition. See Note 2, “Acquisitions,” for further details. (c) See Note 18, “Leases.” (d) See Note 21, “Income Taxes.” (e) See Note 17, “Commitments and Contingencies.” (f) Indemnification of certain income and non-income tax liabilities associated with the Chemetall Surface Treatment entities sold. The December 31, 2018 balance also includes the settlement of an ongoing audit of a previously disposed business in Germany. (g) No individual component exceeds 5% of total liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: In the ordinary course of business, we have commitments in connection with various activities. We believe that amounts recorded are adequate for known items which might become due in the current year. The most significant commitments are as follows: Environmental We had the following activity in our recorded environmental liabilities for the years ended December 31, 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Balance, beginning of year $ 49,569 $ 39,808 $ 34,919 Expenditures (6,037 ) (6,885 ) (1,818 ) Accretion of discount 1,030 1,283 896 Additions and changes in estimates (a) 1,129 17,039 3,344 Foreign currency translation adjustments and other (3,099 ) (1,676 ) 2,467 Balance, end of year 42,592 49,569 39,808 Less amounts reported in Accrued expenses 9,534 9,193 2,290 Amounts reported in Other noncurrent liabilities $ 33,058 $ 40,376 $ 37,518 (a) Increase in additions in 2018 primarily related to the indemnification of the buyer of a formerly owned site. As defined in the agreement of sale, this indemnification has a set cutoff date in 2024, at which point we will no longer be required to provide financial coverage. Environmental remediation liabilities included discounted liabilities of $35.6 million and $40.4 million at December 31, 2019 and 2018 , respectively, discounted at rates with a weighted-average of 3.7% , with the undiscounted amount totaling $69.2 million and $74.5 million at December 31, 2019 and 2018 , 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 be an additional $10 million to $30 million before income taxes, in excess of amounts already recorded. The variability of this range is primarily driven by possible environmental remediation activity at a formerly owned site where we indemnify the buyer through a set cutoff date in 2024. 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. Asset Retirement Obligations The following is a reconciliation of our beginning and ending asset retirement obligation balances for 2019 and 2018 (in thousands): Year Ended December 31, 2019 2018 Balance, beginning of year $ 41,489 $ 40,450 Acquisitions (a) 4,650 — Additions and changes in estimates (b) 14,734 740 Accretion of discount 2,035 1,500 Liabilities settled (3,289 ) (786 ) Foreign currency translation adjustments and other 627 (415 ) Balance, end of year $ 60,246 $ 41,489 Less amounts reported in Accrued expenses 4,398 — Amounts reported in Other noncurrent liabilities $ 55,848 $ 41,489 (a) Represents preliminary purchase price adjustments for the Wodgina Project acquisition recorded for the year ended December 31, 2019. See Note 2, “Acquisitions,” for additional information. (b) Increase in additions in 2019 related to $11.1 million of new asset retirement obligations in Chile and Australia and $3.6 million of charges related to the update of an estimate at a site formerly owned by Albemarle. Asset retirement obligations primarily relate to post-closure reclamation of brine wells and sites involved in the surface mining and manufacturing of lithium. We are not aware of any conditional asset retirement obligations that would require recognition in our consolidated financial statements. Litigation We are involved from time to time in legal proceedings of types regarded as common in our business, including administrative or judicial proceedings seeking remediation under environmental laws, such as the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as CERCLA or Superfund, products liability, breach of contract liability and premises liability litigation. Where appropriate, we may establish financial reserves for such proceedings. We also maintain insurance to mitigate certain of such risks. Costs for legal services are generally expensed as incurred. As previously reported in 2018, following receipt of information regarding potential improper payments being made by third party sales representatives of our Refining Solutions business, within our Catalysts segment, we promptly retained outside counsel and forensic accountants to investigate potential violations of the Company’s Code of Conduct, the Foreign Corrupt Practices Act (“FCPA”), and other potentially applicable laws. Based on this internal investigation, we have voluntarily self-reported potential issues relating to the use of third party sales representatives in our Refining Solutions business, within our Catalysts segment, to the U.S. Department of Justice (“DOJ”), the Securities and Exchange Commission (“SEC”), and the Dutch Public Prosecutor (“DPP”), and are cooperating with the DOJ, the SEC, and DPP in their review of these matters. In connection with our internal investigation, we have implemented, and are continuing to implement, appropriate remedial measures. At this time, we are unable to predict the duration, scope, result or related costs associated with the investigations by the DOJ, the SEC, or DPP. We are unable to predict what, if any, action may be taken by the DOJ, the SEC, or DPP, or what penalties or remedial actions they may seek to impose. Any determination that our operations or activities are not in compliance with existing laws or regulations could result in the imposition of fines, penalties, disgorgement, equitable relief, or other losses. We do not believe, however, that any such fines, penalties, disgorgement, equitable relief or other losses would have a material adverse effect on our financial condition or liquidity. During the year ended December 31, 2018, we recorded a charge of $16.2 million in Other expenses, net resulting from a jury rendering a verdict against Albemarle in a legal matter related to certain business concluded under a 2014 sales agreement for products that Albemarle no longer manufactures. In addition, during the year ended December 31, 2018, we recorded a charge of $10.8 million in Other expenses, net due to a settlement of a legal matter related to guarantees from a previously disposed business. Both matters were resolved and paid during the year ended December 31, 2018. 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 $31.0 million and $45.3 million at December 31, 2019 and 2018 , respectively, recorded in Other noncurrent liabilities related to the indemnification of certain income and non-income tax liabilities associated with the Chemetall Surface Treatment entities sold. The balance at December 31, 2018 also included the settlement of an ongoing audit of a previously disposed business in Germany. Other The Company has standby letters of credit and guarantees with various financial institutions. The following table summarizes our letters of credit and guarantee agreements (in thousands): 2020 2021 2022 2023 2024 Thereafter Letters of credit and other guarantees $ 49,152 $ 11,383 $ 1,303 $ 1,190 $ — $ 19,305 The outstanding letters of credit are primarily related to insurance claim payment guarantees. The majority of the Company’s other guarantees have terms of one year and mainly consist of performance and environmental guarantees, as well as guarantees to customs and port authorities. The guarantees arose during the ordinary course of business. We do not have recorded reserves for the letters of credit and guarantees as of December 31, 2019 . We are unable to estimate the maximum amount of the potential future liability under guarantees and letters of credit. However, we accrue for any potential loss for which we believe a future payment is probable and a range of loss can be reasonably estimated. We believe our liability under such obligations is immaterial. We currently, and are from time to time, subject to transactional audits in various taxing jurisdictions and to customs audits globally. We do not expect the financial impact of any of these audits to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. |
Stock-based Compensation Expens
Stock-based Compensation Expense | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-based Compensation Expense | Stock-based Compensation Expense: Incentive Plans We have various share-based compensation plans that authorize the granting of (i) qualified and non-qualified stock options to purchase shares of our common stock, (ii) restricted stock and restricted stock units, (iii) performance unit awards and (iv) stock appreciation rights (“SARs”) to employees and non-employee directors, at our option. Stock options granted to employees generally vest over three years and have a term of ten years . Restricted stock and restricted stock unit awards vest in periods ranging from one to five years from the date of grant. Performance unit awards are earned at a level ranging from 0% to 200% contingent upon the achievement of specific performance criteria over periods ranging from one to three years . Distribution of earned units occurs generally 50% upon completion of the applicable measurement period with the remaining 50% distributed one year thereafter. In May 2017, the Company adopted the Albemarle Corporation 2017 Incentive Plan (the “Incentive Plan”), which replaced the Albemarle Corporation 2008 Incentive Plan. The maximum number of shares available for issuance to participants under the Incentive Plan is 4,500,000 shares. The adoption of the Incentive Plan did not affect awards already granted under the Albemarle Corporation 2008 Incentive Plan. Under the Albemarle Corporation 2013 Stock Compensation and Deferral Election Plan for Non-Employee Directors (the “Non-Employee Directors Plan”), a maximum aggregate number of 500,000 shares of our common stock is authorized for issuance to the Company’s non-employee directors; any shares remaining available for issuance under the prior plans were canceled. The aggregate fair market value of shares that may be issued to a director during any compensation year (as defined in the agreement, generally July 1 to June 30) shall not exceed $150,000 . At December 31, 2019 , there were 4,005,657 shares available for grant under the Incentive Plan and 360,575 shares available for grant under the Non-Employee Directors Plan. Total stock-based compensation expense associated with our incentive plans for the years ended December 31, 2019 , 2018 and 2017 amounted to $21.3 million , $15.2 million and $19.4 million , respectively, and is included in Cost of goods sold and Selling, general and administrative expenses in the consolidated statement s of income. Total related recognized tax benefits for the years ended December 31, 2019 , 2018 and 2017 amounted to $3.2 million , $2.6 million and $7.0 million , respectively. As a result of the sale of the Chemetall Surface Treatment business in 2016, we converted previously granted incentive awards owed to Chemetall employees to a cash liability to be paid on the original vesting dates of the awards. At December 31, 2019 , $0.7 million of this cash liability was included in Accrued liabilities. The following table summarizes information about the Company’s fixed-price stock options as of and for the year ended December 31, 2019 : Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 1,316,733 $ 59.55 4.3 $ 26,438 Granted 95,639 91.00 Exercised (161,909 ) 29.73 Forfeited (5,932 ) 95.47 Outstanding at December 31, 2019 1,244,531 $ 65.67 4.2 $ 14,593 Exercisable at December 31, 2019 980,865 $ 59.47 3.3 $ 13,583 We granted 95,639 , 63,259 and 82,204 stock options during 2019 , 2018 and 2017 , respectively. There were no significant modifications made to any share-based grants during these periods. The fair value of each option granted during the years ended December 31, 2019 , 2018 and 2017 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Year Ended December 31, 2019 2018 2017 Dividend yield 1.58 % 1.44 % 1.56 % Volatility 32.50 % 32.48 % 32.70 % Average expected life (years) 6 6 6 Risk-free interest rate 2.81 % 3.06 % 2.51 % Fair value of options granted $ 27.71 $ 37.35 $ 27.99 Dividend yield is the average of historical yields and those estimated over the average expected life. The stock volatility is based on historical volatilities of our common stock. The average expected life represents the weighted average period of time that options granted are expected to be outstanding giving consideration to vesting schedules and our historical exercise patterns. The risk-free interest rate is based on the U.S. Treasury strip rate with stripped coupon interest for the period equal to the contractual term of the share option grant in effect at the time of grant. The intrinsic value of options exercised during the years ended December 31, 2019 , 2018 and 2017 was $8.1 million , $6.2 million and $15.6 million , respectively. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. Total compensation cost not yet recognized for nonvested stock options outstanding as of December 31, 2019 is approximately $2.8 million and is expected to be recognized over a remaining weighted-average period of 1.8 years. Cash proceeds from stock options exercised and tax benefits related to stock options exercised were $4.8 million and $1.9 million for the year ended December 31, 2019 , respectively. The Company issues new shares of common stock upon exercise of stock options and vesting of restricted common stock awards. The following table summarizes activity in performance unit awards as of and for the year ended December 31, 2019 : Shares Weighted-Average Grant Date Fair Value Per Share Nonvested, beginning of period 317,437 $ 97.39 Granted 100,288 107.68 Vested (139,034 ) 66.93 Forfeited (18,958 ) 124.45 Nonvested, end of period 259,733 115.69 The weighted average grant date fair value of performance unit awards granted in 2019 , 2018 and 2017 was $10.8 million , $10.9 million and $9.6 million , respectively. During 2019, half of the performance unit awards granted were based on the targeted return on invested capital (“ROIC Award”), while the other half were granted based on targeted market conditions (“TSR Award”). During 2018 and 2017, all performance unit awards were TSR awards. The fair value of each TSR Award was estimated on the date of grant using the Monte Carlo simulation model as these equity awards are tied to a service and market condition. The calculation used the following weighted-average assumptions: Year Ended December 31, 2019 2018 2017 Volatility 30.11 % 29.92 % 30.34 % Risk-free interest rate 2.43 % 2.36 % 1.34 % The weighted average fair value of performance unit awards that vested during 2019 , 2018 and 2017 was $11.7 million , $20.0 million and $11.9 million , respectively, based on the closing prices of our common stock on the dates of vesting. Total compensation cost not yet recognized for nonvested performance unit awards outstanding as of December 31, 2019 is approximately $11.7 million , calculated based on current expectation of specific performance criteria, and is expected to be recognized over a remaining weighted-average period of approximately 1.4 years. Each performance unit represents one share of common stock. The following table summarizes activity in non-performance based restricted stock and restricted stock unit awards as of and for the year ended December 31, 2019 : Shares Weighted-Average Grant Date Fair Value Per Share Nonvested, beginning of period 257,518 $ 85.44 Granted 131,365 79.27 Vested (89,548 ) 73.61 Forfeited (26,775 ) 89.23 Nonvested, end of period 272,560 85.98 The weighted average grant date fair value of restricted stock and restricted stock unit awards granted in 2019 , 2018 and 2017 was $10.4 million , $10.9 million and $8.2 million , respectively. The weighted average fair value of restricted stock and restricted stock unit awards that vested in 2019 , 2018 and 2017 was $7.5 million , $4.9 million and $3.1 million , respectively, based on the closing prices of our common stock on the dates of vesting. Total compensation cost not yet recognized for nonvested, non-performance based restricted stock and restricted stock units as of December 31, 2019 is approximately $12.7 million and is expected to be recognized over a remaining weighted-average period of 2.1 years. The fair value of the non-performance based restricted stock and restricted stock units was estimated on the date of grant adjusted for a dividend factor, if necessary. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income: The components and activity in Accumulated other comprehensive (loss) income (net of deferred income taxes) consisted of the following during the years ended December 31, 2019 , 2018 and 2017 (in thousands): Foreign Currency Translation Pension and Post-Retirement Benefits (a) Net Investment Hedge Cash Flow Hedge (b) Interest Rate Swap (c) Total Accumulated other comprehensive (loss) income - balance at December 31, 2016 $ (484,121 ) $ 76 $ 88,378 $ — $ (16,745 ) $ (412,412 ) Other comprehensive income (loss) before reclassifications 227,439 — (41,827 ) — — 185,612 Amounts reclassified from accumulated other comprehensive loss — (97 ) — — 2,116 2,019 Other comprehensive income (loss), net of tax 227,439 (97 ) (41,827 ) — 2,116 187,631 Other comprehensive income attributable to noncontrolling interests (887 ) — — — — (887 ) Accumulated other comprehensive (loss) income - balance at December 31, 2017 $ (257,569 ) $ (21 ) $ 46,551 $ — $ (14,629 ) $ (225,668 ) Other comprehensive (loss) income before reclassifications (150,258 ) — 15,695 — — (134,563 ) Amounts reclassified from accumulated other comprehensive loss (d) — (138 ) 10,091 — (585 ) 9,368 Other comprehensive (loss) income, net of tax (150,258 ) (138 ) 25,786 — (585 ) (125,195 ) Other comprehensive loss attributable to noncontrolling interests 181 — — — — 181 Accumulated other comprehensive (loss) income - balance at December 31, 2018 $ (407,646 ) $ (159 ) $ 72,337 $ — $ (15,214 ) $ (350,682 ) Other comprehensive (loss) income before reclassifications (62,031 ) 576 8,441 4,847 — (48,167 ) Amounts reclassified from accumulated other comprehensive loss — 56 — — 2,591 2,647 Other comprehensive (loss) income, net of tax (62,031 ) 632 8,441 4,847 2,591 (45,520 ) Other comprehensive loss attributable to noncontrolling interests 467 — — — — 467 Accumulated other comprehensive (loss) income - balance at December 31, 2019 $ (469,210 ) $ 473 $ 80,778 $ 4,847 $ (12,623 ) $ (395,735 ) (a) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss consists of amortization of prior service benefit, which is a component of pension and postretirement benefits cost (credit). See Note 15, “Pension Plans and Other Postretirement Benefits,” for additional information. (b) We entered into a foreign currency forward contract in the fourth quarter of 2019, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging . See Note 22, “Fair Value of Financial Instruments,” for additional information. (c) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. (d) Amounts reclassified from accumulated other comprehensive loss include a net benefit of $6.9 million , which was reclassified to Retained earnings for stranded tax effects caused by the TCJA. The amount of income tax (expense) benefit allocated to each component of Other comprehensive (loss) income for the years ended December 31, 2019 , 2018 and 2017 is provided in the following tables (in thousands): Foreign Currency Translation Pension and Postretirement Benefits Net Investment Hedge Cash Flow Hedge Interest Rate Swap 2019 Other comprehensive (loss) income, before tax $ (62,030 ) $ 633 $ 10,867 $ 4,847 $ 3,336 Income tax expense (1 ) (1 ) (2,426 ) — (745 ) Other comprehensive (loss) income, net of tax $ (62,031 ) $ 632 $ 8,441 $ 4,847 $ 2,591 2018 Other comprehensive (loss) income, before tax $ (150,262 ) $ (128 ) $ 20,424 $ — $ 3,336 Income tax benefit (expense) 4 (10 ) 5,362 — (3,921 ) Other comprehensive (loss) income, net of tax $ (150,258 ) $ (138 ) $ 25,786 $ — $ (585 ) 2017 Other comprehensive income (loss), before tax $ 228,508 $ (96 ) $ (65,958 ) $ — $ 3,336 Income tax (expense) benefit (1,069 ) (1 ) 24,131 — (1,220 ) Other comprehensive income (loss), net of tax $ 227,439 $ (97 ) $ (41,827 ) $ — $ 2,116 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: Income before income taxes and equity in net income of unconsolidated investments, and current and deferred income tax expense (benefit) are composed of the following (in thousands): Year Ended December 31, 2019 2018 2017 Income before income taxes and equity in net income of unconsolidated investments: Domestic $ 190,195 $ 223,702 $ (8,293 ) Foreign 372,755 570,999 455,091 Total $ 562,950 $ 794,701 $ 446,798 Current income tax expense (benefit): Federal $ 21,258 $ (2,712 ) $ 394,747 State 5,453 6,793 323 Foreign 47,056 91,581 78,688 Total $ 73,767 $ 95,662 $ 473,758 Deferred income tax (benefit) expense: Federal $ 13,255 $ 15,573 $ (58,640 ) State (7,369 ) 1,614 (2,288 ) Foreign 8,508 31,977 18,987 Total $ 14,394 $ 49,164 $ (41,941 ) Total income tax expense $ 88,161 $ 144,826 $ 431,817 The TCJA was signed into law in the U.S. in December 2017, after which the SEC staff issued SAB 118, which provided a measurement period of up to one year from the TCJA’s enactment date for companies to complete their accounting under ASC 740, Income Taxes . In connection with the enactment of the TCJA, the Company recorded a net tax expense of $366.9 million during 2017 and additional net benefits of $29.3 million in 2018 including measurement period adjustments, primarily related to the one-time transition tax, the remeasurement of deferred tax assets and liabilities and other TCJA impacts. The current and deferred income tax expense for 2019 decreased as a result of our geographic mix of earnings. The decrease in the current income tax expense from 2017 to 2018 is primarily related to the tax impact of the one-time transition tax imposed by the TCJA recorded in 2017. The increase in the deferred tax expense from 2017 to 2018 is primarily related to the tax impact associated with the remeasurement of deferred tax assets and liabilities under the TCJA from a statutory rate of 35% to 21% recorded in 2017. As of January 1, 2018, the Company recorded a cumulative adjustment to decrease Retained earnings by $18.1 million as a result of the adoption of income tax standard updates. The reconciliation of the U.S. federal statutory rate to the effective income tax rate is as follows: % of Income Before Income Taxes 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State taxes, net of federal tax benefit (0.5 ) 0.9 (0.5 ) Change in valuation allowance (a) 1.9 0.7 (1.4 ) Impact of foreign earnings, net (b) (3.7 ) (0.3 ) (13.5 ) Global intangible low tax inclusion 1.8 0.8 — Change in U.S. federal statutory rate (c) — 0.1 (14.0 ) Transition tax on deferred foreign earnings (d) — (5.3 ) 96.1 Subpart F income 0.6 0.9 2.0 Undistributed earnings of foreign subsidiaries — — (2.2 ) Stock-based compensation (0.6 ) (0.7 ) (1.9 ) Depletion (0.7 ) (0.6 ) (1.4 ) Revaluation of unrecognized tax benefits/reserve requirements (2.7 ) — (0.7 ) Other items, net (1.4 ) 0.7 (0.9 ) Effective income tax rate 15.7 % 18.2 % 96.6 % (a) The year ended December 31, 2019 includes a $2.1 million benefit due to the release of a foreign valuation allowance due to changes in expected profitability. 2018 includes an $8.2 million expense due to the establishment of a valuation allowance due to a foreign restructuring plan and a $1.5 million benefit due to the release of a foreign valuation allowance due to changes in expected profitability. 2017 includes a $10.9 million benefit from the release of valuation allowances due to a foreign restructuring plan. (b) Our statutory rate is decreased by of our share of the income of JBC, a Free Zones company under the laws of the Hashemite Kingdom of Jordan. The applicable provisions of the Jordanian law, and applicable regulations thereunder, do not have a termination provision and the exemption is indefinite. As a Free Zones company, JBC is not subject to income taxes on the profits of products exported from Jordan, and currently, substantially all of the profits are from exports. This resulted in a rate benefit of 8.0% , 3.3% , and 8.9% for 2019 , 2018 , and 2017 , respectively. (c) At December 31, 2017 we made a reasonable estimate of the tax impact of the U.S. enacted tax law on our business and our consolidated financial statements and recorded a provisional tax benefit of $62.3 million related to the remeasurement of our deferred tax assets and liabilities for the reduction in the Federal statutory tax rate from 35% to 21% . In 2018, the updates to our calculation of the remeasurement of deferred tax assets and liabilities resulted in income tax expense of $0.4 million . (d) At December 31, 2017 we made a reasonable estimate of the tax impact of the U.S. enacted tax law on our business and our consolidated financial statements and recognized a provisional tax expense of $429.2 million for the one-time transition tax. During 2018, the impact of the refined one-time transition tax calculation was an income tax benefit of $42.3 million . Deferred income tax assets and liabilities recorded on the consolidated balance sheets as of December 31, 2019 and 2018 consist of the following (in thousands): December 31, 2019 2018 Deferred tax assets: Accrued employee benefits $ 17,462 $ 18,462 Operating loss carryovers 1,134,410 1,210,377 Pensions 64,230 61,308 Tax credit carryovers 1,497 1,270 Other 64,955 35,895 Gross deferred tax assets 1,282,554 1,327,312 Valuation allowance (1,148,268 ) (1,213,750 ) Deferred tax assets 134,286 113,562 Deferred tax liabilities: Depreciation (349,264 ) (337,503 ) Intangibles (88,934 ) (88,871 ) Hedge of net investment of foreign subsidiary (23,498 ) (21,854 ) Other (55,173 ) (31,287 ) Deferred tax liabilities (516,869 ) (479,515 ) Net deferred tax liabilities $ (382,583 ) $ (365,953 ) Classification in the consolidated balance sheets: Noncurrent deferred tax assets $ 15,275 $ 17,029 Noncurrent deferred tax liabilities (397,858 ) (382,982 ) Net deferred tax liabilities $ (382,583 ) $ (365,953 ) Changes in the balance of our deferred tax asset valuation allowance are as follows (in thousands): Year Ended December 31, 2019 2018 2017 Balance at January 1 $ (1,213,750 ) $ (458,288 ) $ (69,900 ) Additions (a) (24,986 ) (766,012 ) (408,252 ) Deductions 90,468 10,550 19,864 Balance at December 31 $ (1,148,268 ) $ (1,213,750 ) $ (458,288 ) (a) During 2018, the Company recognized intercompany losses at a foreign entity related to international restructuring resulting in an increase to the deferred tax asset for net operating losses and an associated and equal valuation allowance of $749.8 million . At December 31, 2019 , we had approximately $1.5 million of domestic credits available to offset future payments of income taxes, expiring in varying amounts between 2020 and 2038 . We have established valuation allowances for $0.2 million of those domestic credits since we believe that it is more likely than not that the related deferred tax assets will not be realized. We believe that sufficient taxable income will be generated during the carryover period in order to utilize the other remaining credit carryovers. At December 31, 2019 , we have on a pre-tax basis, domestic state net operating losses of $200.3 million , expiring between 2020 and 2039, which have pre-tax valuation allowances of $63.6 million established. In addition, we have on a pre-tax basis $4.52 billion of foreign net operating losses, which have pre-tax valuation allowances for $4.49 billion established. $2.76 billion of these foreign net operating losses expire in 2035 and $1.75 billion have an indefinite life. We have established valuation allowances for these deferred tax assets since we believe that it is more likely than not that the related deferred tax assets will not be realized. For the same reason, we established pre-tax valuation allowances of $56.7 million and $77.7 million for other state and foreign deferred tax assets, respectively, unrelated to net operating losses. The realization of the deferred tax assets is dependent on the generation of sufficient taxable income in the appropriate tax jurisdictions. Although realization is not assured, we believe it is more likely than not that the remaining deferred tax assets will be realized. However, the amount considered realizable could be reduced if estimates of future taxable income change. As of December 31, 2019, we have not recorded taxes on approximately $4.2 billion of cumulative undistributed earnings of our non-U.S.subsidiaries and joint ventures. The TCJA imposed a mandatory transition tax on accumulated foreign earnings and generally eliminated U.S. taxes on foreign subsidiary distribution with the exception of foreign withholding taxes and other foreign local tax. We generally do not provide for taxes related to our undistributed earnings because such earnings either would not be taxable when remitted or they are considered to be indefinitely reinvested. If in the foreseeable future, we can no longer demonstrate that these earnings are indefinitely reinvested, a deferred tax liability will be recognized. A determination of the amount of the unrecognized deferred tax liability related to these undistributed earnings is not practicable due to the complexity and variety of assumptions necessary based on the manner in which the undistributed earnings would be repatriated. Liabilities related to uncertain tax positions were $21.2 million and $22.9 million at December 31, 2019 and 2018 , respectively, inclusive of interest and penalties of $3.7 million and $3.2 million at December 31, 2019 and 2018 , respectively, and are reported in Other noncurrent liabilities as provided in Note 16, “Other Noncurrent Liabilities.” These liabilities at December 31, 2019 and 2018 were reduced by $26.1 million and $13.0 million , respectively, for offsetting benefits from the corresponding effects of potential transfer pricing adjustments, state income taxes and rate arbitrage related to foreign structure. These offsetting benefits are recorded in Other assets as provided in Note 11, “Other Assets.” The resulting net asset of $8.6 million as of December 31, 2019 would unfavorably affect earnings if recognized and released, while the net liability of $6.7 million at December 31, 2018 would favorably affect earnings if recognized and released. The liabilities related to uncertain tax positions, exclusive of interest, were $17.5 million and $19.7 million at December 31, 2019 and 2018 , respectively. The following is a reconciliation of our total gross liability related to uncertain tax positions for 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Balance at January 1 $ 19,742 $ 21,438 $ 25,384 Additions for tax positions related to prior years 2,235 874 — Reductions for tax positions related to prior years — — (1,933 ) Additions for tax positions related to current year — 1,091 1,132 Lapses in statutes of limitations/settlements (4,494 ) (3,578 ) (4,198 ) Foreign currency translation adjustment 65 (83 ) 1,053 Balance at December 31 $ 17,548 $ 19,742 $ 21,438 We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Due to the statute of limitations, we are no longer subject to U.S. federal income tax audits by the Internal Revenue Service (“IRS”) for years prior to 2011. Due to the statute of limitations, we also are no longer subject to U.S. state income tax audits prior to 2011. With respect to jurisdictions outside the U.S., several audits are in process. We have audits ongoing for the years 2011 through 2018 related to Germany, Italy, India, Belgium, and Chile, some of which are for entities that have since been divested. While we believe we have adequately provided for all tax positions, amounts asserted by taxing authorities could be greater than our accrued position. Accordingly, additional provisions on federal and foreign tax-related matters could be recorded in the future as revised estimates are made or the underlying matters are settled or otherwise resolved. Since the timing of resolutions and/or closure of tax audits is uncertain, it is difficult to predict with certainty the range of reasonably possible significant increases or decreases in the liability related to uncertain tax positions that may occur within the next twelve months. Our current view is that it is reasonably possible that we could record a decrease in the liability related to uncertain tax positions, relating to a number of issues, up to approximately $9.6 million as a result of closure of tax statutes. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
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. December 31, 2019 2018 Recorded Amount Fair Value Recorded Amount Fair Value (In thousands) Long-term debt $ 3,069,417 $ 3,173,341 $ 1,712,003 $ 1,731,271 Foreign Currency Forward Contracts—In the fourth quarter of 2019, we entered into a foreign currency forward contract, with a notional value of 727.9 million Australian Dollars, to hedge the cash flow exposure of non-functional currency purchases during the construction of the Kemerton plant in Australia. This derivative financial instrument is used to manage risk and is not used for trading or other speculative purposes. This foreign currency forward contract has been designated as a hedging instrument under ASC 815, Derivatives and Hedging. At December 31, 2019, we had outstanding designated foreign currency forward contracts with notional values totaling the equivalent of $481.2 million . 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 December 31, 2019 and 2018 , we had outstanding non-designated foreign currency forward contracts with notional values totaling $1.15 billion and $626.5 million , respectively, hedging our exposure to various currencies including the Euro, Chinese Renminbi, Chilean Peso and Australian Dollar. The following table summarizes the fair value of our foreign currency forward contracts included in the consolidated balance sheets as of December 31, 2019 and 2018 (in thousands): Assets Liabilities December 31, December 31, 2019 2018 2019 2018 Designated as hedging instruments (a) $ 5,369 $ — $ — $ — Not designated as hedging instruments (b) 2,032 431 3,613 — Total $ 7,401 $ 431 $ 3,613 $ — (a) Included $3.7 million in Other current assets and $1.7 million in Other assets at December 31, 2019. (b) Included $2.0 million in Other current assets and $3.6 million in Accrued expenses at December 31, 2019 and $0.4 million in Other accounts receivable at December 31, 2018. The following table summarizes the net gains (losses) recognized for our foreign currency forward contracts during the years ended December 31, 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Designated as hedging instruments: Gain recognized in Other comprehensive (loss) income $ 4,847 $ — $ — Not designated as hedging instruments: (Losses) gains recognized in Other expenses, net (a) $ (25,765 ) $ (19,851 ) $ 4,588 (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 expenses, net. In addition, for the years ended December 31, 2019 , 2018 and 2017 , we recorded net cash (settlements) receipts of ($23.6) million , ($25.2) million and $9.4 million , respectively, in Other, net, in our consolidated statements of cash flows. As of December 31, 2019 , there are no unrealized gains or losses related to the cash flow hedge expected to be reclassified to earnings in the next twelve months. 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 | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 and 2018 (in thousands): December 31, 2019 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: Investments under executive deferred compensation plan (a) $ 28,715 $ 28,715 $ — $ — Private equity securities (b) $ 32 $ 32 $ — $ — Private equity securities measured at net asset value (b)(c) $ 4,890 $ — $ — $ — Foreign currency forward contracts (d) $ 7,401 $ — $ 7,401 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 28,715 $ 28,715 $ — $ — Foreign currency forward contracts (d) $ 3,613 $ — $ 3,613 $ — December 31, 2018 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: Investments under executive deferred compensation plan (a) $ 26,292 $ 26,292 $ — $ — Private equity securities (b) $ 26 $ 26 $ — $ — Private equity securities measured at net asset value (b)(c) $ 7,195 $ — $ — $ — Foreign currency forward contracts (d) $ 431 $ — $ 431 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 26,292 $ 26,292 $ — $ — (a) We maintain an 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. (b) Primarily consists of private equity securities classified as available-for-sale and are reported in Investments in the consolidated balance sheets. The changes in fair value are reported in Other expenses, net, in our consolidated statements of income. (c) Holdings in 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. The fair value amounts of $4.9 million and $7.2 million as of December 31, 2019 and 2018 , respectively, are included in this table to permit reconciliation to the marketable equity securities presented in Note 10, “Investments.” (d) 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 22, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
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): Year Ended December 31, 2019 2018 2017 Sales to unconsolidated affiliates $ 20,068 $ 35,094 $ 29,514 Purchases from unconsolidated affiliates (a) $ 210,351 $ 256,701 $ 209,266 (a) Purchases from unconsolidated affiliates primarily relate to purchases from our Windfield joint venture. Our consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands): December 31, 2019 2018 Receivables from related parties $ 7,163 $ 14,348 Payables to related parties $ 35,502 $ 68,357 |
Segment and Geographic Area Inf
Segment and Geographic Area Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Area Information | Segment and Geographic Area Information: Our three reportable segments include: (1) Lithium; (2) Bromine Specialties; and (3) Catalysts. 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. Summarized financial information concerning our reportable segments is shown in the following tables. The “All Other” category includes only the fine chemistry services business that does not fit into any of our core businesses. The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the operating segments. Pension and 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, All Other, 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 intersegment transfers of raw materials at cost and allocations for certain corporate costs. The Company’s chief operating decision maker uses adjusted EBITDA (as defined below) to assess the ongoing performance of the Company’s business segments and to allocate resources. The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain non-recurring or unusual items in a balanced manner and on a segment basis. These non-recurring or unusual items may include acquisition and integration related costs, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, non-operating pension and OPEB items and other significant non-recurring items. In addition, management uses adjusted EBITDA for business 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 transparency to investors and enables period-to-period comparability of financial performance. Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, U.S. GAAP. Adjusted EBITDA should not be considered as an alternative to Net 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. Year Ended December 31, 2019 2018 2017 (In thousands) Net sales: Lithium $ 1,358,170 $ 1,228,171 $ 1,018,885 Bromine Specialties 1,004,216 917,880 855,143 Catalysts 1,061,817 1,101,554 1,067,572 All Other 165,224 127,186 128,914 Corporate — 159 1,462 Total net sales $ 3,589,427 $ 3,374,950 $ 3,071,976 Adjusted EBITDA: Lithium $ 524,934 $ 530,773 $ 446,652 Bromine Specialties 328,457 288,116 258,901 Catalysts 270,624 284,307 283,883 All Other 49,628 14,091 13,878 Corporate (136,862 ) (110,623 ) (117,834 ) Total adjusted EBITDA $ 1,036,781 $ 1,006,664 $ 885,480 See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands): Lithium Bromine Specialties Catalysts Reportable Segments Total All Other Corporate Consolidated Total 2019 Net income (loss) attributable to Albemarle Corporation $ 341,767 $ 279,945 $ 219,686 $ 841,398 $ 41,188 $ (349,358 ) $ 533,228 Depreciation and amortization 99,424 47,611 50,144 197,179 8,440 7,865 213,484 Restructuring and other (a) — — — — — 5,877 5,877 Acquisition and integration related costs (b) — — — — — 20,684 20,684 Gain on sale of property (c) — — — — — (14,411 ) (14,411 ) Interest and financing expenses (d) — — — — — 57,695 57,695 Income tax expense — — — — — 88,161 88,161 Non-operating pension and OPEB items — — — — — 26,970 26,970 Stamp duty (b) 64,766 — — 64,766 — — 64,766 Windfield tax settlement (e) 17,292 — — 17,292 — — 17,292 Other (f) 1,685 901 794 3,380 — 19,655 23,035 Adjusted EBITDA $ 524,934 $ 328,457 $ 270,624 $ 1,124,015 $ 49,628 $ (136,862 ) $ 1,036,781 2018 Net income (loss) attributable to Albemarle Corporation $ 428,212 $ 246,509 $ 445,604 $ 1,120,325 $ 6,018 $ (432,781 ) $ 693,562 Depreciation and amortization 95,193 41,607 49,131 185,931 8,073 6,694 200,698 Restructuring and other (a) — — — — — 3,838 3,838 Gain on sale of business (g) — — (210,428 ) (210,428 ) — — (210,428 ) Acquisition and integration related costs (b) — — — — — 19,377 19,377 Interest and financing expenses — — — — — 52,405 52,405 Income tax expense — — — — — 144,826 144,826 Non-operating pension and OPEB items — — — — — 5,285 5,285 Legal accrual (h) — — — — — 27,027 27,027 Environmental accrual (i) — — — — — 15,597 15,597 Albemarle Foundation contribution (j) — — — — — 15,000 15,000 Indemnification adjustments (k) — — — — — 25,240 25,240 Other (l) 7,368 — — 7,368 — 6,869 14,237 Adjusted EBITDA $ 530,773 $ 288,116 $ 284,307 $ 1,103,196 $ 14,091 $ (110,623 ) $ 1,006,664 2017 Net income (loss) attributable to Albemarle Corporation $ 342,992 $ 218,839 $ 230,665 $ 792,496 $ 5,521 $ (743,167 ) $ 54,850 Depreciation and amortization 87,879 40,062 54,468 182,409 8,357 6,162 196,928 Utilization of inventory markup (m) 23,095 — — 23,095 — — 23,095 Restructuring and other (n) — — — — — 17,056 17,056 Gain on acquisition (o) (6,221 ) — — (6,221 ) — — (6,221 ) Acquisition and integration related costs (b) — — — — — 33,954 33,954 Interest and financing expenses (p) — — — — — 115,350 115,350 Income tax expense — — — — — 431,817 431,817 Non-operating pension and OPEB items — — — — — (16,125 ) (16,125 ) Note receivable reserve (q) — — — — — 28,730 28,730 Other (r) (1,093 ) — (1,250 ) (2,343 ) — 8,389 6,046 Adjusted EBITDA $ 446,652 $ 258,901 $ 283,883 $ 989,436 $ 13,878 $ (117,834 ) $ 885,480 (a) Severance payments as part of a business reorganization plan, $5.9 million recorded in Selling, general and administrative expenses for the year ended December 31, 2019 and $0.1 million and $3.7 million recorded in Cost of goods sold and Selling, general and administrative expenses, respectively, for the year ended December 31, 2018. (b) See Note 2, “Acquisitions,” for additional information. (c) Gain of $3.3 million recorded in Selling, general and administrative expenses related to the release of liabilities as part of the sale of a property and $11.1 million gain recorded in Other expenses, net related to the sale of land in Pasadena, Texas not used as part of our operations. (d) Included in Interest and financing expenses is a loss on early extinguishment of debt of $4.8 million . See Note 14, “Long-Term Debt,” for additional information. (e) Represents our 49% share of a tax settlement between our Windfield joint venture and an Australian taxing authority, recorded in Equity in net income of unconsolidated investments (net of tax). This is offset in Income tax expense by a discrete tax benefit related to seeking treaty relief from the competent authority to prevent double taxation. (f) Included amounts for the year ended December 31, 2019 recorded in: • Cost of goods sold - $0.7 million related to non-routine labor and compensation related costs in Chile that are outside normal compensation arrangements. • Selling, general and administrative expenses - $1.8 million of shortfall contributions for our multiemployer plan financial improvement plan, $0.9 million of a write-off of uncollectable accounts receivable from a terminated distributor in the Bromine Specialties segment, $1.0 million related to the settlement of terminated agreements, primarily in the Catalysts segment, and $0.8 million related to the settlement of an ongoing audit in the Lithium segment. • Other expenses, net - $3.1 million of unrecoverable vendor costs outside the operations of the business related to the construction of the future Kemerton production facility, $9.8 million of a net loss primarily resulting from the adjustment of indemnifications and other liabilities related to previously disposed businesses or purchase accounting, $3.6 million of asset retirement obligation charges related to the update of an estimate at a site formerly owned by Albemarle, and $1.2 million of non-operating pension costs from our 50% interest in JBC. (g) See Note 3, “Divestitures,” for additional information. (h) Included in Other expenses, net. See Note 17, “Commitments and Contingencies,” for additional information. (i) Increase in environmental reserve to indemnify the buyer of a formerly owned site recorded in Other expenses, net. As defined in the agreement of sale, this indemnification has a set cutoff date in 2024, at which point we will no longer be required to provide financial coverage. (j) Included in Selling, general and administrative expenses is a charitable contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, to the Albemarle Foundation, a non-profit organization that sponsors grants, health and social projects, educational initiatives, disaster relief, matching gift programs, scholarships and other charitable initiatives in locations where our employees live and operate. This contribution is in addition to the normal annual contribution made to the Albemarle Foundation by the Company, and is significant in size and nature in that it is intended to provide more long-term benefits in the communities where we live and operate. (k) Included in Other expenses, net is $19.7 million related to the proposed settlement of an ongoing audit of a previously disposed business in Germany, and $5.5 million related to the adjustment of indemnifications previously recorded from disposed businesses. (l) Included amounts for the year ended December 31, 2018 recorded in: • Cost of goods sold - $4.9 million for the write-off of fixed assets related to a major capacity expansion in our Jordanian joint venture and $8.8 million related to non-routine labor and compensation related costs in Chile that are outside normal compensation arrangements. • Selling, general and administrative expenses - $2.3 million of shortfall contributions for our multiemployer plan financial improvement plan and a $1.2 million contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, to schools in the state of Louisiana for qualified tuition purposes. This contribution is significant in size and is intended to provide long-term benefits for families in the Louisiana community. This was partially offset by a $1.5 million gain related to a refund from Chilean authorities due to an overpayment made in a prior year. • Other expenses, net - $1.5 million gain related to the reversal of previously recorded liabilities of disposed businesses. (m) In connection with the acquisition of Jiangli New Materials, completed on December 31, 2016, the Company valued inventory purchased from Jiangli New Materials at fair value, which resulted in a markup of the underlying net book value of the inventory totaling approximately $23.1 million . The utilization of this inventory markup was included in Costs of goods sold during the year ended December 31, 2017, the estimated remaining selling period. (n) During 2017, we initiated action to reduce costs in each of our reportable segments at several locations, primarily at our Lithium sites in Germany. Based on the restructuring plans, we have recorded expenses of $2.9 million in Cost of goods sold, $8.4 million in Selling, general and administrative expenses, and $5.7 million in Research and development expenses, primarily related to expected severance payments. (o) Gain recorded in Other expenses, net related to the acquisition of the remaining 50% interest in Salmag. See Note 2, “Acquisitions,” for additional information. (p) During the first quarter of 2017, we repaid the 3.00% Senior notes in full, €307.0 million of the 1.875% Senior notes and $174.7 million of the 4.50% Senior notes, as well as related tender premiums of $45.2 million . As a result, included in Interest and financing expenses is a loss on early extinguishment of debt of $52.8 million , representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of these senior notes. (q) Reserve recorded in Other expenses, net against a note receivable on one of our European entities no longer deemed probable of collection. (r) Included amounts for the year ended December 31, 2017 recorded in: • Cost of goods sold - $1.3 million reversal of deferred income related to an abandoned project at an unconsolidated investment. • Selling, general and administrative expenses - $3.3 million of shortfall contributions for our multiemployer plan financial improvement plan, partially offset by $1.0 million related to a reversal of an accrual recorded as part of purchase accounting from a previous acquisition. • Other expenses, net - $3.2 million of asset retirement obligation charges related to the update of an estimate at a site formerly owned by Albemarle, losses of $8.7 million related to adjustments of settlements and indemnifications of previously disposed businesses, the adjustment of tax indemnification expenses of $3.7 million primarily related to the filing of tax returns and a competent authority agreement for a previously disposed business and $1.0 million related to the settlement of a legal claim. This is partially offset by gains of $10.6 million and $1.1 million related to the reversal of liabilities recorded as part of purchase accounting from a previous acquisition and the previous disposal of a property, respectively. December 31, 2019 2018 2017 (In thousands) Identifiable assets: Lithium (a) $ 6,570,791 $ 4,605,070 $ 3,979,615 Bromine Specialties 799,456 753,157 745,007 Catalysts 1,163,590 1,134,975 1,332,599 All Other 146,211 128,185 126,486 Corporate (b) 1,180,815 960,287 1,567,065 Total identifiable assets $ 9,860,863 $ 7,581,674 $ 7,750,772 (a) Increase in Lithium identifiable assets at December 31, 2019 primarily due to the acquisition of 60% interest in MRL’s Wodgina Project assets, as well as capital expenditures for growth and capacity increases. (b) Decrease in Corporate identifiable assets at December 31, 2018 primarily due to the net use of cash and cash equivalents for items such as capital expenditures, share repurchases and commercial paper repayments. Year Ended December 31, 2019 2018 2017 (In thousands) Depreciation and amortization: Lithium $ 99,424 $ 95,193 $ 87,879 Bromine Specialties 47,611 41,607 40,062 Catalysts 50,144 49,131 54,468 All Other 8,440 8,073 8,357 Corporate 7,865 6,694 6,162 Total depreciation and amortization $ 213,484 $ 200,698 $ 196,928 Capital expenditures: Lithium $ 665,585 $ 500,849 $ 192,318 Bromine Specialties 82,208 79,357 46,427 Catalysts 57,939 52,019 46,808 All Other 7,309 5,232 3,657 Corporate 38,755 62,534 28,493 Total capital expenditures $ 851,796 $ 699,991 $ 317,703 Year Ended December 31, 2019 2018 2017 (In thousands) Net Sales (a) : United States $ 858,084 $ 887,416 $ 840,589 Foreign (b) 2,731,343 2,487,534 2,231,387 Total $ 3,589,427 $ 3,374,950 $ 3,071,976 (a) Net sales are attributed to countries based upon shipments to final destination. (b) In 2019, net sales to Korea, China and Japan represented 17% , 13% , and 12% , respectively, of total net sales. In 2018, net sales to Korea, China and Japan represented 13% , 12% , and 10% , respectively, of total net sales. In 2017, net sales to China represented 15% of total net sales. No net sales in any other foreign country exceed 10% of total net sales. As of December 31, 2019 2018 2017 (In thousands) Long-Lived Assets (a) : United States $ 1,003,496 $ 929,291 $ 833,002 Australia 1,981,642 407,141 364,624 Chile 1,687,090 1,406,478 1,069,859 Jordan 256,363 254,800 242,626 Netherlands 165,782 166,853 171,980 China 109,235 91,160 50,532 Germany 89,568 101,168 115,305 France 44,936 43,698 40,852 Brazil 37,165 40,464 47,255 Other foreign countries 68,499 65,937 60,626 Total $ 5,443,776 $ 3,506,990 $ 2,996,661 (a) Long-lived assets are comprised of the Company’s Property, plant and equipment and joint ventures included in Investments. |
Quarterly Financial Summary (Un
Quarterly Financial Summary (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Summary (Unaudited) | Quarterly Financial Summary (Unaudited): First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share amounts) 2019 Net sales $ 832,064 $ 885,052 $ 879,747 $ 992,564 Gross profit (a) $ 283,486 $ 325,914 $ 309,867 $ 338,511 Net income $ 151,526 $ 174,970 $ 171,618 $ 106,243 Net income attributable to noncontrolling interests (17,957 ) (20,772 ) (16,548 ) (15,852 ) Net income attributable to Albemarle Corporation $ 133,569 $ 154,198 $ 155,070 $ 90,391 Basic earnings per share $ 1.26 $ 1.46 $ 1.46 $ 0.85 Shares used to compute basic earnings per share 105,799 105,961 105,999 106,037 Diluted earnings per share $ 1.26 $ 1.45 $ 1.46 $ 0.85 Shares used to compute diluted earnings per share 106,356 106,316 106,299 106,314 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share amounts) 2018 Net sales $ 821,629 $ 853,874 $ 777,748 $ 921,699 Gross profit $ 304,979 $ 311,356 $ 280,537 $ 320,384 (Gain) loss on sale of business, net (b) $ — $ (218,705 ) $ — $ 8,277 Net income $ 138,925 $ 310,686 $ 143,479 $ 146,049 Net income attributable to noncontrolling interests (7,165 ) (8,225 ) (13,734 ) (16,453 ) Net income attributable to Albemarle Corporation $ 131,760 $ 302,461 $ 129,745 $ 129,596 Basic earnings per share $ 1.19 $ 2.76 $ 1.21 $ 1.22 Shares used to compute basic earnings per share 110,681 109,671 107,315 106,042 Diluted earnings per share $ 1.18 $ 2.73 $ 1.20 $ 1.21 Shares used to compute diluted earnings per share 111,867 110,659 108,302 107,005 (a) Cost of goods sold for the third quarter of 2019 included expense of $7.0 million due to the correction of an out-of-period error regarding carbonate inventory values related to the second quarter of 2019. (b) Represents the gain (loss) on the Polyolefin Catalysts Divestiture. See Note 3, “Divestitures,” for additional information. As discussed in Note 1, “Summary of Significant Accounting Policies,” actuarial gains and losses related to our defined benefit pension and OPEB plan obligations are recognized annually in our consolidated statements of income in the fourth quarter and whenever a plan is determined to qualify for a remeasurement during a fiscal year. During the year ended December 31, 2019 , actuarial losses were recognized as follows: fourth quarter— $29.3 million ( $21.1 million after income taxes) as a result of the annual remeasurement process. During the year ended December 31, 2018 , actuarial losses were recognized as follows: fourth quarter— $14.0 million ( $10.6 million after income taxes) as a result of the annual remeasurement process. |
Leases Leases
Leases Leases | 12 Months Ended |
Dec. 31, 2019 | |
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 year ended December 31, 2019 (in thousands): December 31, 2019 Operating lease cost $ 35,335 Finance lease cost: Amortization of right of use assets 625 Interest on lease liabilities 117 Total finance lease cost 742 Short-term lease cost 6,655 Variable lease cost 6,198 Total lease cost $ 48,930 Rental expense was approximately $37.6 million and $31.2 million for 2018 and 2017 , respectively. Supplemental cash flow information related to our lease contracts for the year ended December 31, 2019 is as follows (in thousands): December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 29,946 Operating cash flows from finance leases 117 Financing cash flows from finance leases 678 Right-of-use assets obtained in exchange for lease obligations: Operating leases 24,687 Finance leases (a) 55,806 (a) Represents 60% ownership interest in finance lease acquired as part of the Wodgina Project acquisition. See Note 2, “Acquisitions,” for further details. Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at December 31, 2019 is as follows (in thousands, except as noted): December 31, 2019 Operating leases: Other assets $ 133,864 Current operating lease liability 23,137 Other noncurrent liabilities 114,686 Total operating lease liabilities 137,823 Finance leases: Net property, plant and equipment 59,494 Current portion of long-term debt 636 Long-term debt 58,888 Total finance lease liabilities 59,524 Weighted average remaining lease term (in years): Operating leases 11.4 Finance leases 28.3 Weighted average discount rate (%): Operating leases 3.84 % Finance leases 4.56 % Maturities of lease liabilities as of December 31, 2019 were as follows (in thousands): Operating Leases Finance Leases 2020 $ 28,333 $ 2,229 2021 15,306 2,140 2022 13,153 4,431 2023 12,433 4,431 2024 11,850 4,431 Thereafter 94,002 94,788 Total lease payments 175,077 112,450 Less imputed interest 37,254 52,926 Total $ 137,823 $ 59,524 |
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 year ended December 31, 2019 (in thousands): December 31, 2019 Operating lease cost $ 35,335 Finance lease cost: Amortization of right of use assets 625 Interest on lease liabilities 117 Total finance lease cost 742 Short-term lease cost 6,655 Variable lease cost 6,198 Total lease cost $ 48,930 Rental expense was approximately $37.6 million and $31.2 million for 2018 and 2017 , respectively. Supplemental cash flow information related to our lease contracts for the year ended December 31, 2019 is as follows (in thousands): December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 29,946 Operating cash flows from finance leases 117 Financing cash flows from finance leases 678 Right-of-use assets obtained in exchange for lease obligations: Operating leases 24,687 Finance leases (a) 55,806 (a) Represents 60% ownership interest in finance lease acquired as part of the Wodgina Project acquisition. See Note 2, “Acquisitions,” for further details. Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at December 31, 2019 is as follows (in thousands, except as noted): December 31, 2019 Operating leases: Other assets $ 133,864 Current operating lease liability 23,137 Other noncurrent liabilities 114,686 Total operating lease liabilities 137,823 Finance leases: Net property, plant and equipment 59,494 Current portion of long-term debt 636 Long-term debt 58,888 Total finance lease liabilities 59,524 Weighted average remaining lease term (in years): Operating leases 11.4 Finance leases 28.3 Weighted average discount rate (%): Operating leases 3.84 % Finance leases 4.56 % Maturities of lease liabilities as of December 31, 2019 were as follows (in thousands): Operating Leases Finance Leases 2020 $ 28,333 $ 2,229 2021 15,306 2,140 2022 13,153 4,431 2023 12,433 4,431 2024 11,850 4,431 Thereafter 94,002 94,788 Total lease payments 175,077 112,450 Less imputed interest 37,254 52,926 Total $ 137,823 $ 59,524 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts and operations of Albemarle Corporation and our wholly owned, majority owned and controlled subsidiaries. Unless the context otherwise indicates, the terms “Albemarle,” “we,” “us,” “our” or “the Company” mean Albemarle Corporation and its consolidated subsidiaries. For entities that we control and are the primary beneficiary, but own less than 100%, we record the minority ownership as noncontrolling interest, except as noted below. We apply the equity method of accounting for investments in which we have an ownership interest from 20% to 50% or where we exercise significant influence over the related investee’s operations. All significant intercompany accounts and transactions are eliminated in consolidation. As described further in Note 2, “Acquisitions,” we completed the acquisition of a 60% ownership interest in Mineral Resources Limited’s (“MRL”) Wodgina hard rock lithium mine project (“Wodgina Project”) on October 31, 2019 creating a joint venture named MARBL Lithium Joint Venture (“MARBL”). The consolidated financial statements contained herein include our proportionate share of the results of operations of the Wodgina Project, commencing on November 1, 2019. We are entitled to a pro rata portion of 60% of all minerals (other than iron ore and tantalum) recovered from the tenements and produced by the joint venture. The 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. |
Discontinued Operations | |
Estimates, Assumptions and Reclassifications | Estimates, Assumptions and Reclassifications The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” and all related amendments using the modified retrospective method. There was no material impact to our results of operations or financial position upon adoption, and no adjustment was made to Retained earnings in our consolidated balance sheets because such adjustment was determined to be immaterial. In addition, new presentation requirements, including separate disclosure of net sales from sources other than customers on our consolidated statements of income and separate disclosures of contract assets or liabilities on our consolidated balance sheets, generally did not have a material impact. However, business circumstances, including the nature of customer contracts, can change and as such, we have expanded processes and controls to recognize such changes, and as necessary, consider whether any of these currently immaterial items might differ in the future. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services, and is recognized when performance obligations are satisfied under the terms of contracts with our customers. A performance obligation is deemed to be satisfied when control of the product or service is transferred to our customer. The transaction price of a contract, or the amount we expect to receive upon satisfaction of all performance obligations, is determined by reference to the contract’s terms and includes adjustments, if applicable, for any variable consideration, such as customer rebates, noncash consideration or consideration payable to the customer, although these adjustments are generally not material. Where a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on the standalone selling price of each performance obligation, although these situations do not occur frequently and are generally not built into our contracts. Any unsatisfied performance obligations are not material. Standalone selling prices are based on prices we charge to our customers, which in some cases is based on established market prices. Sales and other similar taxes collected from customers on behalf of third parties are excluded from revenue. Our payment terms are generally between 30 to 90 days, however, they vary by market factors, such as customer size, creditworthiness, geography and competitive environment. All of our revenue is derived from contracts with customers, and almost all of our contracts with customers contain one performance obligation for the transfer of goods where such performance obligation is satisfied at a point in time. Control of a product is deemed to be transferred to the customer upon shipment or delivery. Significant portions of our sales are sold free on board shipping point or on an equivalent basis, while delivery terms of other transactions are based upon specific contractual arrangements. Our standard terms of delivery are generally included in our contracts of sale, order confirmation documents and invoices, while the timing between shipment and delivery generally ranges between 1 and 45 days. Costs for shipping and handling activities, whether performed before or after the customer obtains control of the goods, are accounted for as fulfillment costs. The Company currently utilizes the following practical expedients, as permitted by Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers : • All sales and other pass-through taxes are excluded from contract value; • In utilizing the modified retrospective transition method, no adjustment was necessary for contracts that did not cross over the reporting year; • We will not consider the possibility of a contract having a significant financing component (which would effectively attribute a portion of the sales price to interest income) unless, if at contract inception, the expected payment terms (from time of delivery or other relevant criterion) are more than one year; • If our right to customer payment is directly related to the value of our completed performance, we recognize revenue consistent with the invoicing right; and • We expense as incurred all costs of obtaining a contract incremental to any costs/compensation attributable to individual product sales/shipments for contracts where the amortization period for such costs would otherwise be one year or less. Certain products we produce are made to our customer’s specifications where such products have limited alternative use or would need significant rework costs in order to be sold to another customer. In management’s judgment, control of these arrangements is transferred to the customer at a point in time (upon shipment or delivery) and not over the time they are produced. Therefore revenue is recognized upon shipment or delivery of these products. Costs incurred to obtain contracts with customers are not significant and are expensed immediately as the amortization period would be one year or less. When the Company incurs pre-production or other fulfillment costs in connection with an existing or specific anticipated contract and such costs are recoverable through margin or explicitly reimbursable, such costs are capitalized and amortized to Cost of goods sold on a systematic basis that is consistent with the pattern of transfer to the customer of the goods or services to which the asset relates, which is less than one year. We record bad debt expense in specific situations when we determine the customer is unable to meet its financial obligation. Included in Trade accounts receivable at December 31, 2019 and 2018 is approximately $602.1 million and $590.3 million , respectively, arising from contracts with customers. The remaining balance of Trade accounts receivable at December 31, 2019 and 2018 primarily includes value-added taxes collected from customers on behalf of various taxing authorities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash and money market investments with insignificant interest rate risks and no limitations on access. |
Inventories | Inventories Inventories are stated at lower of cost and net realizable value with cost determined primarily on the first-in, first-out basis. Cost is determined on the weighted-average basis for a small portion of our inventories at foreign plants and our stores, supplies and other inventory. A portion of our domestic produced finished goods and raw materials are determined on the last-in, first-out basis. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment include costs of assets constructed, purchased or leased under a finance lease, related delivery and installation costs and interest incurred on significant capital projects during their construction periods. Expenditures for renewals and betterments also are capitalized, but expenditures for normal repairs and maintenance are expensed as incurred. Costs associated with yearly planned major maintenance are generally deferred and amortized over 12 months or until the same major maintenance activities must be repeated, whichever is shorter. The cost and accumulated depreciation applicable to assets retired or sold are removed from the respective accounts, and gains or losses thereon are included in income. We assign the useful lives of our property, plant and equipment based upon our internal engineering estimates which are reviewed periodically. The estimated useful lives of our property, plant and equipment range from two to sixty years and depreciation is recorded on the straight-line method, with the exception of our mineral rights and reserves, which are depleted on a units-of-production method. We evaluate the recovery of our property, plant and equipment by comparing the net carrying value of the asset group to the undiscounted net cash flows expected to be generated from the use and eventual disposition of that asset group when events or changes in circumstances indicate that its carrying amount may not be recoverable. If the carrying amount of the asset group is not recoverable, the fair value of the asset group is measured and if the carrying amount exceeds the fair value, an impairment loss is recognized. |
Leases | Leases Effective January 1, 2019, we adopted Accounting Standards Update (“ASU”) No. 2016-02, “Leases” and all related amendments using the modified retrospective method. Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of $139.1 million as of January 1, 2019. Comparative periods have not been restated and are reported in accordance with our historical accounting. The standard did not have an impact on our consolidated Net income or cash flows. In addition, as a result of the adoption of this new standard, we have implemented internal controls and system changes to prepare the financial information. As part of this adoption, we have elected the practical expedient relief package allowed by the new standard, which does not require the reassessment of (1) whether existing contracts contain a lease, (2) the lease classification or (3) unamortized initial direct costs for existing leases; and have elected to apply hindsight to the existing leases. Additionally, we have made accounting policy elections such as exclusion of short-term leases (leases with a term of 12 months or less and which do not include a purchase option that we are reasonably certain to exercise) from the balance sheet presentation, use of portfolio approach in determination of discount rate and accounting for non-lease components in a contract as part of a single lease component for all asset classes, except specific mining operation equipment. We determine if an arrangement is a lease at inception. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As an implicit rate for most of our leases is not determinable, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The lease payments for the initial measurement of lease ROU assets and lease liabilities include fixed and variable payments based on an index or a rate. Variable lease payments that are not index or rate based are recorded as expenses when incurred. Our variable lease payments typically include real estate taxes, insurance costs and common-area maintenance. The operating lease ROU asset also includes any lease payments made, net of lease incentives. The lease term is the non-cancelable period of the lease, including any options to extend, purchase or terminate the lease when it is reasonably certain that we will exercise that option. We amortize the operating lease ROU assets on a straight-line basis over the period of the lease and the finance lease ROU assets on a straight-line basis over the shorter of their estimated useful lives or the lease terms. 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. |
Resource Development Expenses | Resource Development Expenses We incur costs in resource exploration, evaluation and development during the different phases of our resource development projects. Exploration costs incurred before obtaining legal rights to explore an area are generally expensed as incurred. After obtaining legal rights, exploration costs are expensed in areas where we have uncertainty about obtaining proven resources. In areas where we have substantial knowledge about the area and consider it probable to obtain commercially viable proven resources, exploration and evaluation costs are capitalized. If technical feasibility studies have been obtained, resource evaluation expenses are capitalized when the study demonstrates proven or probable resources for which future economic returns are expected, while costs for projects that are not considered viable are expensed. Development costs that are necessary to bring the property to commercial production or increase the capacity or useful life are capitalized. Costs to maintain the production capacity in a property under production are expensed as incurred. Capitalized resource costs are depleted using the units-of-production method. Our resource development assets are evaluated for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Investments | Investments Investments are accounted for using the equity method of accounting if the investment gives us the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if we have an ownership interest in the voting stock of the investee between 20% and 50%, although other factors, such as representation on the investee’s board of directors and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, we record our investments in equity-method investees in the consolidated balance sheets as Investments and our share of investees’ earnings or losses together with other-than-temporary impairments in value as Equity in net income of unconsolidated investments in the consolidated statements of income. We evaluate our equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. Certain mutual fund investments are accounted for as trading equities and are marked-to-market on a periodic basis through the consolidated statements of income. Investments in joint ventures and nonmarketable securities of immaterial entities are estimated based upon the overall performance of the entity where financial results are not available on a timely basis. |
Environmental Compliance and Remediation | Environmental Compliance and Remediation Environmental compliance costs include the cost of purchasing and/or constructing assets to prevent, limit and/or control pollution or to monitor the environmental status at various locations. These costs are capitalized and depreciated based on estimated useful lives. Environmental compliance costs also include maintenance and operating costs with respect to pollution prevention and control facilities and other administrative costs. Such operating costs are expensed as incurred. Environmental remediation costs of facilities used in current operations are generally immaterial and are expensed as incurred. We accrue for environmental remediation costs and post-remediation costs that relate to existing conditions caused by past operations at facilities or off-plant disposal sites in the accounting period in which responsibility is established and when the related costs are estimable. In developing these cost estimates, we evaluate currently available facts regarding each site, with consideration given to existing technology, presently enacted laws and regulations, prior experience in remediation of contaminated sites, the financial capability of other potentially responsible parties and other factors, subject to uncertainties inherent in the estimation process. If the amount and timing of the cash payments for a site are fixed or reliably determinable, the liability is discounted, if the calculated discount is material. Additionally, these estimates are reviewed periodically, with adjustments to the accruals recorded as necessary. |
Research and Development Expenses | Research and Development Expenses Our research and development expenses related to present and future products are expensed as incurred. These expenses consist primarily of personnel-related costs and other overheads, as well as outside service and consulting costs incurred for specific programs. Our U.S. facilities in Michigan, Pennsylvania, Texas and Louisiana and our global facilities in the Netherlands, Germany, Belgium and Korea form the capability base for our contract research and custom manufacturing businesses. These business areas provide research and scale-up services primarily to innovative life science companies. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets We account for goodwill and other intangibles acquired in a business combination in conformity with current accounting guidance that requires that goodwill and indefinite-lived intangible assets not be amortized. We test goodwill for impairment by comparing the estimated fair value of our reporting units to the related carrying value. Our reporting units are either our operating business segments or one level below our operating business segments for which discrete financial information is available and for which operating results are regularly reviewed by the business management. We estimate the fair value based on present value techniques involving future cash flows. Future cash flows include assumptions about sales volumes, selling prices, raw material prices, labor and other employee benefit costs, capital additions, income taxes, working capital, and other economic or market-related factors. Significant management judgment is involved in estimating these variables and they include inherent uncertainties since they are forecasting future events. We perform a sensitivity analysis by using a range of inputs to confirm the reasonableness of these estimates being used in the goodwill impairment analysis. We use a Weighted Average Cost of Capital (“WACC”) approach to determine our discount rate for goodwill recoverability testing. Our WACC calculation incorporates industry-weighted average returns on debt and equity from a market perspective. The factors in this calculation are largely external to the Company and, therefore, are beyond our control. We test our recorded goodwill for impairment in the fourth quarter of each year or upon the occurrence of events or changes in circumstances that would more likely than not reduce the fair value of our reporting units below their carrying amounts. The Company performed its annual goodwill impairment test as of October 31, 2019 and concluded there was no impairment as of that date. In addition, no material indications of impairment in any of our reporting units were indicated by the sensitivity analysis. We assess our indefinite-lived intangible assets, which include trade names and trademarks, for impairment annually and between annual tests if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. The indefinite-lived intangible asset impairment standard allows us to first assess qualitative factors to determine if a quantitative impairment test is necessary. Further testing is only required if we determine, based on the qualitative assessment, that it is more likely than not that the indefinite-lived intangible asset’s fair value is less than its carrying amount. If we determine based on the qualitative assessment that it is more likely than not that the asset is impaired, an impairment test is performed by comparing the fair value of the indefinite-lived intangible asset to its carrying amount. Definite-lived intangible assets, such as purchased technology, patents and customer lists, are amortized over their estimated useful lives generally for periods ranging from five to twenty-five years . Except for customer lists and relationships associated with the majority of our Lithium business, which are amortized using the pattern of economic benefit method, definite-lived intangible assets are amortized using the straight-line method. We evaluate the recovery of our definite-lived intangible assets by comparing the net carrying value of the asset group to the undiscounted net cash flows expected to be generated from the use and eventual disposition of that asset group when events or changes in circumstances indicate that its carrying amount may not be recoverable. If the carrying amount of the asset group is not recoverable, the fair value of the asset group is measured and if the carrying amount exceeds the fair value, an impairment loss is recognized. See Note 12, “Goodwill and Other Intangibles.” |
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits Under authoritative accounting standards, assumptions are made regarding the valuation of benefit obligations and the performance of plan assets. As required, we recognize a balance sheet asset or liability for each of our pension and other postretirement benefit (“OPEB”) plans equal to the plan’s funded status as of the measurement date. The primary assumptions are as follows: • Discount Rate—The discount rate is used in calculating the present value of benefits, which is based on projections of benefit payments to be made in the future. • Expected Return on Plan Assets—We project the future return on plan assets based on prior performance and future expectations for the types of investments held by the plans, as well as the expected long-term allocation of plan assets for these investments. These projected returns reduce the net benefit costs recorded currently. • Rate of Compensation Increase—For salary-related plans, we project employees’ annual pay increases, which are used to project employees’ pension benefits at retirement. • Mortality Assumptions—Assumptions about life expectancy of plan participants are used in the measurement of related plan obligations. Actuarial gains and losses are recognized annually in our consolidated statements of income in the fourth quarter and whenever a plan is determined to qualify for a remeasurement during a fiscal year. The remaining components of pension and OPEB plan expense, primarily service cost, interest cost and expected return on assets, are recorded on a monthly basis. The market-related value of assets equals the actual market value as of the date of measurement. During 2019 , we made changes to assumptions related to discount rates and expected rates of return on plan assets. We consider available information that we deem relevant when selecting each of these assumptions. In selecting the discount rates for the U.S. plans, we consider expected benefit payments on a plan-by-plan basis. As a result, the Company uses different discount rates for each plan depending on the demographics of participants and the expected timing of benefit payments. For 2019 , the discount rates were calculated using the results from a bond matching technique developed by Milliman, which matched the future estimated annual benefit payments of each respective plan against a portfolio of bonds of high quality to determine the discount rate. We believe our selected discount rates are determined using preferred methodology under authoritative accounting guidance and accurately reflect market conditions as of the December 31, 2019 measurement date. In selecting the discount rates for the foreign plans, we look at long-term yields on AA-rated corporate bonds when available. Our actuaries have developed yield curves based on the yields on the constituent bonds in the various indices as well as on other market indicators such as swap rates, particularly at the longer durations. For the Eurozone, we apply the Aon Hewitt yield curve to projected cash flows from the relevant plans to derive the discount rate. For the United Kingdom (“U.K.”), the discount rate is determined by applying the Aon Hewitt yield curve for typical schemes of similar duration to projected cash flows of Albemarle’s U.K. plan. In other countries where there is not a sufficiently deep market of high-quality corporate bonds, we set the discount rate by referencing the yield on government bonds of an appropriate duration. In estimating the expected return on plan assets, we consider past performance and future expectations for the types of investments held by the plan as well as the expected long-term allocation of plan assets to these investments. In projecting the rate of compensation increase, we consider past experience in light of movements in inflation rates. In October 2018, the Society of Actuaries (“SOA”) published an updated Mortality Improvement Scale, MP-2018. The updated improvement scale incorporates an additional year of mortality data (2016). We utilized the same base mortality, SOA RP-2014 Adjusted to 2006 Total Dataset Mortality, but we revised our mortality assumption to incorporate the MP-2018 Mortality Improvement Scale for purposes of measuring our U.S. pension and OPEB obligations at December 31, 2018. |
Stock-based Compensation Expense | Stock-based Compensation Expense The fair value of restricted stock awards, restricted stock unit awards and performance unit awards with a service condition are determined based on the number of shares or units granted and the quoted price of our common stock on the date of grant, and the fair value of stock options is determined using the Black-Scholes valuation model. The fair value of performance unit awards with a service condition and a market condition are estimated on the date of grant using a Monte Carlo simulation model. The fair value of these awards is determined after giving effect to estimated forfeitures. Such value is recognized as expense over the service period, which is generally the vesting period of the equity grant. To the extent restricted stock awards, restricted stock unit awards, performance unit awards and stock options are forfeited prior to vesting in excess of the estimated forfeiture rate, the corresponding previously recognized expense is reversed as an offset to operating expenses. |
Income Taxes | Income Taxes We use the liability method for determining our income taxes, under which current and deferred tax liabilities and assets are recorded in accordance with enacted tax laws and rates. Under this method, the amounts of deferred tax liabilities and assets at the end of each period are determined using the tax rate expected to be in effect when taxes are actually paid or recovered. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not. In order to record deferred tax assets and liabilities, we are following guidance under Financial Accounting Standards Board (“FASB”) ASU 2015-17, which requires deferred tax assets and liabilities to be classified as noncurrent on the balance sheet, along with any related valuation allowance. Tax effects are released from Accumulated Other Comprehensive Income using either the specific identification approach or the portfolio approach based on the nature of the underlying item. Deferred income taxes are provided for the estimated income tax effect of temporary differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Deferred tax assets are also provided for operating losses, capital losses and certain tax credit carryovers. A valuation allowance, reducing deferred tax assets, is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of such deferred tax assets is dependent upon the generation of sufficient future taxable income of the appropriate character. Although realization is not assured, we do not establish a valuation allowance when we believe it is more likely than not that a net deferred tax asset will be realized. We only recognize a tax benefit after concluding that it is more likely than not that the benefit will be sustained upon audit by the respective taxing authority based solely on the technical merits of the associated tax position. Once the recognition threshold is met, we recognize a tax benefit measured as the largest amount of the tax benefit that, in our judgment, is greater than 50% likely to be realized. Under current accounting guidance for uncertain tax positions, interest and penalties related to income tax liabilities are included in Income tax expense on the consolidated statements of income. We have designated the undistributed earnings of a portion of our foreign operations as indefinitely reinvested and as a result we do not provide for deferred income taxes on the unremitted earnings of these subsidiaries. Our foreign earnings are computed under U.S. federal tax earnings and profits, or E&P, principles. In general, to the extent our financial reporting book basis over tax basis of a foreign subsidiary exceeds these E&P amounts, deferred taxes have not been provided as they are essentially permanent in duration. The determination of the amount of such unrecognized deferred tax liability is not practicable. We provide for deferred income taxes on our undistributed earnings of foreign operations that are not deemed to be indefinitely invested. We will continue to evaluate our permanent investment assertion taking into consideration all relevant and current tax laws. On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law in the U.S. The TCJA contains several key tax provisions including, among other things, the reduction of the corporate income tax rate from 35% to 21% effective January 1, 2018, the requirement of companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and the creation of new taxes on certain foreign sourced earnings such as global intangible low-taxed income (“GILTI”). A company can elect an accounting policy to account for GILTI as a period charge in the future period the tax arises or as part of deferred taxes related to the investment or subsidiary. The Company has elected to account for GILTI as a period cost. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss comprises principally foreign currency translation adjustments, amounts related to the revaluation of our euro-denominated senior notes which were designated as a hedge of our net investment in foreign operations in 2014, a realized loss on a forward starting interest rate swap entered into in 2014 which was designated as a cash flow hedge, gains or losses on foreign currency cash flow hedges designated as effective hedging instruments, and deferred income taxes related to the aforementioned items. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of all foreign subsidiaries were prepared in their respective functional currencies and translated into U.S. Dollars based on the current exchange rate in effect at the balance sheet dates, while income and expenses were translated at average exchange rates for the periods presented. Translation adjustments are reflected as a separate component of equity. Foreign exchange transaction and revaluation losses were $27.4 million , $10.5 million and $11.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, and are included in Other expenses, net, in our consolidated statements of income, with the unrealized portion included in Other, net, in our consolidated statements of cash flows. |
Derivative Financial Instruments | Derivative Financial Instruments We manage our foreign currency exposures by balancing certain assets and liabilities denominated in foreign currencies and through the use of foreign currency forward contracts from time to time, which generally expire within one year . The principal objective of such contracts is to minimize the financial impact of changes in foreign currency exchange rates. While these contracts are subject to fluctuations in value, such fluctuations are generally expected to be offset by changes in the value of the underlying foreign currency exposures being hedged. Gains or losses under foreign currency forward contracts that have been designated as an effective hedging instrument under ASC 815, Derivatives and Hedging will be recorded in Accumulated other comprehensive loss beginning on the date of designation. All other gains and losses on foreign currency forward contracts not designated as an effective hedging instrument are recognized currently in Other expenses, net, and generally do not have a significant impact on results of operations. We may also enter into interest rate swaps, collars or similar instruments from time to time, with the objective of reducing interest rate volatility relating to our borrowing costs. The counterparties to these contractual agreements 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. We do not utilize financial instruments for trading or other speculative purposes. In 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 and designated it as an effective hedging instrument under ASC 815, Derivatives and Hedging . All other foreign currency forward contracts outstanding at December 31, 2019 and 2018 have not been designated as hedging instruments under ASC 815, Derivatives and Hedging . |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued accounting guidance that requires assets and liabilities arising from leases to be recorded on the balance sheet. Additional disclosures are required regarding the amount, timing, and uncertainty of cash flows from leases. In July 2018, the FASB issued an amendment which would allow entities to initially apply this new standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of Retained earnings. The Company adopted this standard on January 1, 2019 using this transition method. See Note 18, “Leases,” for further details. In June 2016, the FASB issued accounting guidance that, among other things, changes the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of the financial asset. Additional disclosures are required regarding an entity’s assumptions, models and methods for estimating the expected credit loss. This guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is to be applied using a modified retrospective approach. Early adoption is permitted. We adopted this guidance on January 1, 2020 and it did not have a significant impact on our consolidated financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a reporting unit to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit has been acquired in a business combination. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. This guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is to be applied on a prospective basis. Early adoption is permitted for goodwill impairment tests performed after January 1, 2017. We adopted this guidance on January 1, 2020 and it did not have a significant impact on our consolidated financial statements. In August 2017, the FASB issued accounting guidance to better align an entity’s risk management activities with hedge accounting, simply the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. This guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. In October 2018, the FASB issued additional guidance that permits the use of the Overnight Index Swap Rate based on the Secured Overnight Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes under ASC 815, Derivatives and Hedging . These new requirements became effective on January 1, 2019 and did not have a significant impact on our consolidated financial statements. In August 2018, the FASB issued accounting guidance that requires implementation costs incurred in a cloud computing arrangement that is a service contract to be capitalized. Entities will be required to recognize the capitalized implementation costs to expense over the noncancellable term of the cloud computing arrangement. As allowed by its provisions, we early-adopted this new guidance in the first quarter of 2019. The adoption of this new guidance did not have a significant impact on our consolidated financial statements. |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Mineral Resources Limited Wodgina Project | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the consideration paid for the joint venture and the amounts of the assets acquired and liabilities assumed as of the acquisition date, which have been allocated on a preliminary basis (in thousands): Total purchase price: Cash paid $ 820,000 Fair value of 40% interest in Kemerton assets 480,000 Purchase agreement completion adjustment and other adjustments 23,566 Total purchase price $ 1,323,566 Net assets acquired: Inventories $ 33,900 Other current assets 10,695 Property, plant and equipment: Buildings and improvements 22,200 Machinery and equipment 163,806 Mineral rights and reserves 1,046,300 Construction in progress 103,700 Other assets 1,000 Current liabilities (10,695 ) Long-term debt (a) (55,806 ) Other noncurrent liabilities (23,296 ) Total identifiable net assets 1,291,804 Goodwill 31,762 Total net assets acquired $ 1,323,566 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Information Related to Consolidated Statements of Cash Flows | Supplemental information related to the consolidated statements of cash flows is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Cash paid during the year for: Income taxes (net of refunds of $7,438, $21,459 and $17,522 in 2019, 2018 and 2017, respectively) (a) $ 170,450 $ 157,758 $ 320,222 Interest (net of capitalization) $ 45,532 $ 49,762 $ 61,243 Supplemental non-cash disclosures related to investing activities: Capital expenditures included in Accounts payable $ 199,451 $ 134,784 $ 89,188 (a) Includes approximately $41 million of income taxes paid in 2018 from the gain on sale of the Polyolefin Catalysts Divestiture, and $257 million of income taxes paid in 2017 from the gain on sale of the Chemetall Surface Treatment business. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share are calculated as follows (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Basic earnings per share Numerator: Net income attributable to Albemarle Corporation $ 533,228 $ 693,562 $ 54,850 Denominator: Weighted-average common shares for basic earnings per share 105,949 108,427 110,914 Basic earnings per share $ 5.03 $ 6.40 $ 0.49 Diluted earnings per share Numerator: Net income attributable to Albemarle Corporation $ 533,228 $ 693,562 $ 54,850 Denominator: Weighted-average common shares for basic earnings per share 105,949 108,427 110,914 Incremental shares under stock compensation plans 372 1,031 1,466 Weighted-average common shares for diluted earnings per share 106,321 109,458 112,380 Diluted earnings per share $ 5.02 $ 6.34 $ 0.49 |
Other Accounts Receivable (Tabl
Other Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Other Accounts Receivable | Other accounts receivable consist of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Value added tax/consumption tax $ 52,059 $ 40,480 Other 15,492 11,579 Total $ 67,551 $ 52,059 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Breakdown of Inventories | The following table provides a breakdown of inventories at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Finished goods (a) $ 495,639 $ 482,355 Raw materials and work in process (b) 205,781 158,290 Stores, supplies and other 67,564 59,895 Total $ 768,984 $ 700,540 (a) Included $44.3 million and $104.3 million at December 31, 2019 and 2018 , respectively, of chemical grade spodumene in our Lithium segment, most of which is converted to battery-grade products either internally or through our tolling agreements. (b) Included $109.3 million and $71.4 million at December 31, 2019 and 2018 , respectively, of work in process in our Lithium segment. |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Other Current Assets | Other current assets consist of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Income tax receivables $ 72,246 $ 40,116 Prepaid expenses 83,637 43,172 Other 6,930 1,502 Total $ 162,813 $ 84,790 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, at Cost | Property, plant and equipment, at cost, consist of the following at December 31, 2019 and 2018 (in thousands): Useful Lives (Years) December 31, 2019 2018 Land — $ 116,728 $ 123,518 Land improvements 10 – 30 83,256 63,349 Buildings and improvements 10 – 50 337,728 251,980 Machinery and equipment (a) 2 – 45 3,355,519 2,780,478 Mineral rights and reserves 7 – 60 1,764,067 696,033 Construction in progress — 1,160,545 883,705 Total $ 6,817,843 $ 4,799,063 (a) Consists primarily of (1) short-lived production equipment components, office and building equipment and other equipment with estimated lives ranging 2 – 7 years, (2) production process equipment (intermediate components) with estimated lives ranging 8 – 19 years, (3) production process equipment (major unit components) with estimated lives ranging 20 – 29 years, and (4) production process equipment (infrastructure and other) with estimated lives ranging 30 – 45 years. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Investment Balances | The following table details our investment balances at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Joint ventures $ 534,430 $ 486,032 Nonmarketable securities 11,746 9,177 Marketable equity securities 33,637 33,513 Total $ 579,813 $ 528,722 |
Ownership Positions in Significant Unconsolidated Investments | Our ownership positions in significant unconsolidated investments are shown below: December 31, 2019 2018 2017 * Windfield Holdings Pty. Ltd. - a joint venture with Sichuan Tianqi Lithium Industries, Inc., that mines lithium ore and produces lithium concentrate 49 % 49 % 49 % * Nippon Aluminum Alkyls - a joint venture with Mitsui Chemicals, Inc. that produces aluminum alkyls 50 % 50 % 50 % * Nippon Ketjen Company Limited - a joint venture with Sumitomo Metal Mining Company Limited that produces refinery catalysts 50 % 50 % 50 % * Eurecat S.A. - a joint venture with Axens Group for refinery catalysts regeneration services 50 % 50 % 50 % * Fábrica Carioca de Catalisadores S.A. - a joint venture with Petrobras Quimica S.A. - PETROQUISA that produces catalysts and includes catalysts research and product development activities 50 % 50 % 50 % |
Summary of Assets, Liabilities and Results of Operations for Significant Unconsolidated Joint Ventures | The following summary lists the assets, liabilities and results of operations for our significant unconsolidated joint ventures presented herein (in thousands): December 31, 2019 2018 Summary of Balance Sheet Information: Current assets $ 473,426 $ 476,460 Noncurrent assets 1,404,765 1,159,866 Total assets $ 1,878,191 $ 1,636,326 Current liabilities $ 201,792 $ 191,971 Noncurrent liabilities 583,839 422,769 Total liabilities $ 785,631 $ 614,740 Year Ended December 31, 2019 2018 2017 Summary of Statements of Income Information: Net sales $ 910,891 $ 829,590 $ 687,561 Gross profit $ 496,150 $ 456,518 $ 353,577 Income before income taxes $ 384,690 $ 332,632 $ 267,805 Net income $ 229,733 $ 225,791 $ 184,777 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Other Assets | Other assets consist of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Deferred income taxes (a) $ 15,275 $ 17,029 Assets related to unrecognized tax benefits (a) 26,127 12,984 Operating leases (b) 133,864 — Other (c) 37,795 50,122 Total $ 213,061 $ 80,135 (a) See Note 1, “Summary of Significant Accounting Policies” and Note 21, “Income Taxes.” (b) See Note 18, “Leases.” (c) As of December 31, 2019 and 2018, a $28.7 million reserve was recorded against a note receivable on one of our European entities no longer deemed probable of collection. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table summarizes the changes in goodwill by reportable segment for the years ended December 31, 2019 and 2018 (in thousands): Lithium Bromine Specialties Catalysts All Other Total Balance at December 31, 2017 $ 1,389,089 $ 20,319 $ 194,361 $ 6,586 $ 1,610,355 Foreign currency translation adjustments and other (34,310 ) — (8,876 ) — (43,186 ) Balance at December 31, 2018 1,354,779 20,319 185,485 6,586 1,567,169 Acquisitions (a) 31,762 — — — 31,762 Foreign currency translation adjustments and other (15,695 ) — (4,451 ) — (20,146 ) Balance at December 31, 2019 $ 1,370,846 $ 20,319 $ 181,034 $ 6,586 $ 1,578,785 (a) Represents preliminary purchase price adjustments for the Wodgina Project acquisition recorded for the year ended December 31, 2019. See Note 2, “Acquisitions,” for additional information. |
Other Intangibles | Other intangibles consist of the following at December 31, 2019 and 2018 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2017 $ 439,312 $ 18,981 $ 61,618 $ 37,256 $ 557,167 Foreign currency translation adjustments and other (10,940 ) (528 ) (5,817 ) 6,452 (10,833 ) Balance at December 31, 2018 428,372 18,453 55,801 43,708 546,334 Foreign currency translation adjustments and other (5,910 ) (366 ) (781 ) (2,426 ) (9,483 ) Balance at December 31, 2019 $ 422,462 $ 18,087 $ 55,020 $ 41,282 $ 536,851 Accumulated Amortization Balance at December 31, 2017 $ (74,704 ) $ (8,295 ) $ (35,203 ) $ (17,462 ) $ (135,664 ) Amortization (23,402 ) — (1,450 ) (3,127 ) (27,979 ) Foreign currency translation adjustments and other 2,309 119 1,405 (381 ) 3,452 Balance at December 31, 2018 (95,797 ) (8,176 ) (35,248 ) (20,970 ) (160,191 ) Amortization (23,020 ) — (1,388 ) (2,714 ) (27,122 ) Foreign currency translation adjustments and other 2,068 238 439 2,339 5,084 Balance at December 31, 2019 $ (116,749 ) $ (7,938 ) $ (36,197 ) $ (21,345 ) $ (182,229 ) Net Book Value at December 31, 2018 $ 332,575 $ 10,277 $ 20,553 $ 22,738 $ 386,143 Net Book Value at December 31, 2019 $ 305,713 $ 10,149 $ 18,823 $ 19,937 $ 354,622 (a) Net Book Value includes only indefinite-lived intangible assets. |
Total Estimated Amortization Expense of Other Intangibles for Next Five Fiscal Years | Total estimated amortization expense of other intangibles for the next five fiscal years is as follows (in thousands): Estimated Amortization Expense 2020 $ 25,356 2021 $ 24,747 2022 $ 24,153 2023 $ 23,586 2024 $ 22,787 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Employee benefits, payroll and related taxes $ 82,028 $ 77,814 Wodgina Project acquisition consideration obligation (a) 260,686 — Other (b) 210,446 179,509 Total $ 553,160 $ 257,323 (a) Represents the 40% interest in the Kemerton assets, which are under construction, expected to be transferred to MRL in the next twelve months as part of the consideration paid for the Wodgina Project acquisition, as well as the $64.8 million of stamp duties levied on the assets purchased. See Note 2, “Acquisitions,” for further details. (b) No individual component exceeds 5% of total current liabilities. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consisted of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 1.125% notes, net of unamortized discount and debt issuance costs of $5,659 at December 31, 2019 $ 549,241 $ — 1.625% notes, net of unamortized discount and debt issuance costs of $5,696 at December 31, 2019 549,204 — 1.875% Senior notes, net of unamortized discount and debt issuance costs of $1,831 at December 31, 2019 and $2,841 at December 31, 2018 434,241 444,155 3.45% Senior notes, net of unamortized discount and debt issuance costs of $3,533 at December 31, 2019 296,467 — 4.15% Senior notes, net of unamortized discount and debt issuance costs of $2,398 at December 31, 2019 and $2,884 at December 31, 2018 422,603 422,116 4.50% Senior notes, net of unamortized discount and debt issuance costs of $589 at December 31, 2018 — 174,626 5.45% Senior notes, net of unamortized discount and debt issuance costs of $3,850 at December 31, 2019 and $4,004 at December 31, 2018 346,150 345,996 Floating rate notes, net of unamortized debt issuance costs of $1,169 at December 31, 2019 198,831 — Commercial paper notes 186,700 306,606 Variable-rate foreign bank loans 7,296 7,216 Finance lease obligations 59,524 4,495 Total long-term debt 3,050,257 1,705,210 Less amounts due within one year 187,336 307,294 Long-term debt, less current portion $ 2,862,921 $ 1,397,916 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following provides a reconciliation of benefit obligations, plan assets and funded status, as well as a summary of significant assumptions, for our postretirement benefit plans (in thousands): Year Ended December 31, 2019 2018 Other Postretirement Benefits Other Postretirement Benefits Change in benefit obligations: Benefit obligation at January 1 $ 50,390 $ 56,647 Service cost 98 117 Interest cost 2,197 2,168 Actuarial loss (gain) 5,445 (5,661 ) Benefits paid (3,041 ) (2,881 ) Benefit obligation at December 31 $ 55,089 $ 50,390 Change in plan assets: Fair value of plan assets at January 1 $ — $ 834 Actual return on plan assets — (253 ) Employer contributions 3,041 2,300 Benefits paid (3,041 ) (2,881 ) Fair value of plan assets at December 31 $ — $ — Funded status at December 31 $ (55,089 ) $ (50,390 ) December 31, 2019 2018 Other Postretirement Benefits Other Postretirement Benefits Amounts recognized in consolidated balance sheets: Current liabilities (accrued expenses) $ (4,190 ) $ (4,233 ) Noncurrent liabilities (postretirement benefits) (50,899 ) (46,157 ) Net postretirement liability $ (55,089 ) $ (50,390 ) Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 3.53 % 4.55 % Rate of compensation increase 3.50 % 3.50 % The following provides a reconciliation of benefit obligations, plan assets and funded status, as well as a summary of significant assumptions, for our defined benefit pension plans (in thousands): Year Ended December 31, 2019 Year Ended December 31, 2018 U.S. Pension Plans Foreign Pension Plans U.S. Pension Plans Foreign Pension Plans Change in benefit obligations: Benefit obligation at January 1 $ 635,866 $ 240,303 $ 685,963 $ 275,006 Service cost 730 3,680 1,043 3,919 Interest cost 28,199 4,998 26,804 5,144 Plan amendments — — — 233 Actuarial loss (gain) 56,108 21,588 (36,844 ) (17,885 ) Benefits paid (42,183 ) (10,088 ) (41,100 ) (9,974 ) Employee contributions — 133 — 182 Foreign exchange gain — (1,772 ) — (12,632 ) Settlements/curtailments — (398 ) — (3,628 ) Other — (70 ) — (62 ) Benefit obligation at December 31 $ 678,720 $ 258,374 $ 635,866 $ 240,303 Change in plan assets: Fair value of plan assets at January 1 $ 513,075 $ 70,584 $ 580,396 $ 79,478 Actual return on plan assets 82,926 9,417 (28,457 ) (1,593 ) Employer contributions 2,865 10,572 2,236 10,700 Benefits paid (42,183 ) (10,088 ) (41,100 ) (9,974 ) Employee contributions — 133 — 182 Foreign exchange gain (loss) — 1,316 — (4,519 ) Settlements/curtailments — (398 ) — (3,628 ) Other — (70 ) — (62 ) Fair value of plan assets at December 31 $ 556,683 $ 81,466 $ 513,075 $ 70,584 Funded status at December 31 $ (122,037 ) $ (176,908 ) $ (122,791 ) $ (169,719 ) December 31, 2019 December 31, 2018 U.S. Pension Plans Foreign Pension Plans U.S. Pension Plans Foreign Pension Plans Amounts recognized in consolidated balance sheets: Current liabilities (accrued expenses) $ (1,224 ) $ (5,648 ) $ (1,342 ) $ (5,772 ) Noncurrent liabilities (pension benefits) (120,813 ) (171,260 ) (121,449 ) (163,947 ) Net pension liability $ (122,037 ) $ (176,908 ) $ (122,791 ) $ (169,719 ) Amounts recognized in accumulated other comprehensive (loss) income: Prior service benefit $ — $ 224 $ — $ (409 ) Net amount recognized $ — $ 224 $ — $ (409 ) Weighted-average assumptions used to determine benefit obligations at December 31: Discount rate 3.56 % 1.33 % 4.59 % 2.15 % Rate of compensation increase — % 3.72 % — % 3.63 % |
Schedule of Net Benefit Costs | The components of postretirement benefits cost (credit) are as follows (in thousands): Year Ended December 31, 2019 2018 2017 Other Postretirement Benefits Other Postretirement Benefits Other Postretirement Benefits Service cost $ 98 $ 117 $ 121 Interest cost 2,197 2,168 2,340 Expected return on assets — (7 ) (110 ) Actuarial loss (gain) 5,449 (5,400 ) 2,014 Amortization of prior service benefit — (48 ) (95 ) Total net postretirement benefits cost (credit) $ 7,744 $ (3,170 ) $ 4,270 Weighted-average assumption percentages: Discount rate 4.55 % 3.99 % 4.35 % Expected return on plan assets — % 7.00 % 7.00 % Rate of compensation increase 3.50 % 3.50 % 3.50 % The components of pension benefits cost (credit) are as follows (in thousands): Year Ended Year Ended Year Ended December 31, 2019 December 31, 2018 December 31, 2017 U.S. Pension Plans Foreign Pension Plans U.S. Pension Plans Foreign Pension Plans U.S. Pension Plans Foreign Pension Plans Service cost $ 730 $ 3,680 $ 1,043 $ 3,919 $ 985 $ 2,547 Interest cost 28,199 4,998 26,804 5,144 28,614 5,128 Expected return on assets (33,926 ) (3,837 ) (38,621 ) (4,204 ) (36,243 ) (4,441 ) Actuarial loss (gain) 7,106 16,784 30,234 (10,833 ) (13,910 ) 483 Amortization of prior service benefit — 37 60 34 75 56 Total net pension benefits cost (credit) $ 2,109 $ 21,662 $ 19,520 $ (5,940 ) $ (20,479 ) $ 3,773 Weighted-average assumption percentages: Discount rate 4.59 % 2.15 % 4.03 % 1.94 % 4.43 % 2.00 % Expected return on plan assets 6.89 % 5.51 % 6.89 % 5.52 % 6.89 % 6.16 % Rate of compensation increase — % 3.63 % — % 3.18 % — % 3.18 % |
Schedule of Assumptions Used | The components of pension benefits cost (credit) are as follows (in thousands): Year Ended Year Ended Year Ended December 31, 2019 December 31, 2018 December 31, 2017 U.S. Pension Plans Foreign Pension Plans U.S. Pension Plans Foreign Pension Plans U.S. Pension Plans Foreign Pension Plans Service cost $ 730 $ 3,680 $ 1,043 $ 3,919 $ 985 $ 2,547 Interest cost 28,199 4,998 26,804 5,144 28,614 5,128 Expected return on assets (33,926 ) (3,837 ) (38,621 ) (4,204 ) (36,243 ) (4,441 ) Actuarial loss (gain) 7,106 16,784 30,234 (10,833 ) (13,910 ) 483 Amortization of prior service benefit — 37 60 34 75 56 Total net pension benefits cost (credit) $ 2,109 $ 21,662 $ 19,520 $ (5,940 ) $ (20,479 ) $ 3,773 Weighted-average assumption percentages: Discount rate 4.59 % 2.15 % 4.03 % 1.94 % 4.43 % 2.00 % Expected return on plan assets 6.89 % 5.51 % 6.89 % 5.52 % 6.89 % 6.16 % Rate of compensation increase — % 3.63 % — % 3.18 % — % 3.18 % The components of postretirement benefits cost (credit) are as follows (in thousands): Year Ended December 31, 2019 2018 2017 Other Postretirement Benefits Other Postretirement Benefits Other Postretirement Benefits Service cost $ 98 $ 117 $ 121 Interest cost 2,197 2,168 2,340 Expected return on assets — (7 ) (110 ) Actuarial loss (gain) 5,449 (5,400 ) 2,014 Amortization of prior service benefit — (48 ) (95 ) Total net postretirement benefits cost (credit) $ 7,744 $ (3,170 ) $ 4,270 Weighted-average assumption percentages: Discount rate 4.55 % 3.99 % 4.35 % Expected return on plan assets — % 7.00 % 7.00 % Rate of compensation increase 3.50 % 3.50 % 3.50 % |
Financial Assets Accounted for at Fair Value on Recurring Basis | The following tables set forth the assets of our pension and postretirement plans that were accounted for at fair value on a recurring basis as of December 31, 2019 and 2018 (in thousands): December 31, 2019 Quoted Prices in Active Markets for Identical Items (Level 1) Quoted Prices in Active Markets for Similar Items (Level 2) Unobservable Inputs (Level 3) Pension Assets: Domestic Equity (a) $ 119,842 $ 118,255 $ 1,587 $ — International Equity (b) 126,828 95,246 31,582 — Fixed Income (c) 317,667 279,731 37,936 — Absolute Return Measured at Net Asset Value (d) 73,777 — — — Cash 35 35 — — Total Pension Assets $ 638,149 $ 493,267 $ 71,105 $ — December 31, 2018 Quoted Prices in Active Markets for Identical Items (Level 1) Quoted Prices in Active Markets for Similar Items (Level 2) Unobservable Inputs (Level 3) Pension Assets: Domestic Equity (a) $ 113,355 $ 111,665 $ 1,690 $ — International Equity (b) 114,554 90,651 23,903 — Fixed Income (c) 254,437 219,124 35,313 — Absolute Return Measured at Net Asset Value (d) 71,987 — — — Cash 29,326 29,326 — — Total Pension Assets $ 583,659 $ 450,766 $ 60,906 $ — (a) Consists primarily of U.S. stock funds that track or are actively managed and measured against the S&P 500 index. (b) Consists primarily of international equity funds which invest in common stocks and other securities whose value is based on an international equity index or an underlying equity security or basket of equity securities. (c) Consists primarily of debt obligations issued by governments, corporations, municipalities and other borrowers. Also includes insurance policies. (d) Consists primarily of funds with holdings in private investment companies. See additional information about the Absolute Return investments below. Holdings in private investment companies are measured at fair value using the net asset value per share as a practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts of $73.8 million and $72.0 million as of December 31, 2019 and 2018 , respectively, are included in this table to permit reconciliation to the reconciliation of plan assets table above. |
Schedule of Allocation of Plan Assets | The weighted-average target allocations as of the measurement date are as follows: Target Allocation Equity securities 42 % Fixed income 49 % Absolute return 9 % |
Current Forecast of Benefit Payments, which Reflect Expected Future Service | The current forecast of benefit payments, which reflects expected future service, amounts to (in millions): U.S. Pension Plans Foreign Pension Plans Other Postretirement Benefits 2020 $ 42.3 $ 10.6 $ 4.2 2021 $ 47.8 $ 10.0 $ 4.0 2022 $ 48.4 $ 9.5 $ 3.9 2023 $ 48.9 $ 12.3 $ 3.9 2024 $ 49.0 $ 10.4 $ 3.8 2025-2029 $ 240.9 $ 54.6 $ 17.5 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Noncurrent Liabilities | Other noncurrent liabilities consist of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Transition tax on foreign earnings (a) $ 303,490 $ 317,745 Wodgina Project acquisition consideration obligation (b) 120,800 — Operating leases (c) 114,686 — Liabilities related to uncertain tax positions (d) 21,169 22,877 Executive deferred compensation plan obligation 28,715 26,292 Environmental liabilities (e) 33,058 40,376 Asset retirement obligations (e) 55,848 41,489 Tax indemnification liability (f) 30,993 45,347 Other (g) 45,777 32,816 Total $ 754,536 $ 526,942 (a) Noncurrent portion of one-time transition tax on foreign earnings. See Note 21, “Income Taxes,” for additional information. (b) Represents the 40% interest in the Kemerton assets, which are under construction, expected to be transferred to MRL as part of the consideration paid for the Wodgina Project acquisition. See Note 2, “Acquisitions,” for further details. (c) See Note 18, “Leases.” (d) See Note 21, “Income Taxes.” (e) See Note 17, “Commitments and Contingencies.” (f) Indemnification of certain income and non-income tax liabilities associated with the Chemetall Surface Treatment entities sold. The December 31, 2018 balance also includes the settlement of an ongoing audit of a previously disposed business in Germany. (g) No individual component exceeds 5% of total liabilities. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity in Recorded Environmental Liabilities Activity | We had the following activity in our recorded environmental liabilities for the years ended December 31, 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Balance, beginning of year $ 49,569 $ 39,808 $ 34,919 Expenditures (6,037 ) (6,885 ) (1,818 ) Accretion of discount 1,030 1,283 896 Additions and changes in estimates (a) 1,129 17,039 3,344 Foreign currency translation adjustments and other (3,099 ) (1,676 ) 2,467 Balance, end of year 42,592 49,569 39,808 Less amounts reported in Accrued expenses 9,534 9,193 2,290 Amounts reported in Other noncurrent liabilities $ 33,058 $ 40,376 $ 37,518 (a) Increase in additions in 2018 primarily related to the indemnification of the buyer of a formerly owned site. As defined in the agreement of sale, this indemnification has a set cutoff date in 2024, at which point we will no longer be required to provide financial coverage. |
Schedule of Change in Asset Retirement Obligation | The following is a reconciliation of our beginning and ending asset retirement obligation balances for 2019 and 2018 (in thousands): Year Ended December 31, 2019 2018 Balance, beginning of year $ 41,489 $ 40,450 Acquisitions (a) 4,650 — Additions and changes in estimates (b) 14,734 740 Accretion of discount 2,035 1,500 Liabilities settled (3,289 ) (786 ) Foreign currency translation adjustments and other 627 (415 ) Balance, end of year $ 60,246 $ 41,489 Less amounts reported in Accrued expenses 4,398 — Amounts reported in Other noncurrent liabilities $ 55,848 $ 41,489 (a) Represents preliminary purchase price adjustments for the Wodgina Project acquisition recorded for the year ended December 31, 2019. See Note 2, “Acquisitions,” for additional information. (b) Increase in additions in 2019 related to $11.1 million of new asset retirement obligations in Chile and Australia and $3.6 million of charges related to the update of an estimate at a site formerly owned by Albemarle. |
Letters of Credit and Guarantee Agreements | The following table summarizes our letters of credit and guarantee agreements (in thousands): 2020 2021 2022 2023 2024 Thereafter Letters of credit and other guarantees $ 49,152 $ 11,383 $ 1,303 $ 1,190 $ — $ 19,305 |
Stock-based Compensation Expe_2
Stock-based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Fixed-Price Stock Options | The following table summarizes information about the Company’s fixed-price stock options as of and for the year ended December 31, 2019 : Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 1,316,733 $ 59.55 4.3 $ 26,438 Granted 95,639 91.00 Exercised (161,909 ) 29.73 Forfeited (5,932 ) 95.47 Outstanding at December 31, 2019 1,244,531 $ 65.67 4.2 $ 14,593 Exercisable at December 31, 2019 980,865 $ 59.47 3.3 $ 13,583 |
Weighted-Average Assumptions used to Estimate Fair Value of Each Option Granted | The calculation used the following weighted-average assumptions: Year Ended December 31, 2019 2018 2017 Volatility 30.11 % 29.92 % 30.34 % Risk-free interest rate 2.43 % 2.36 % 1.34 % The fair value of each option granted during the years ended December 31, 2019 , 2018 and 2017 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Year Ended December 31, 2019 2018 2017 Dividend yield 1.58 % 1.44 % 1.56 % Volatility 32.50 % 32.48 % 32.70 % Average expected life (years) 6 6 6 Risk-free interest rate 2.81 % 3.06 % 2.51 % Fair value of options granted $ 27.71 $ 37.35 $ 27.99 |
Activity in Performance Unit Awards | The following table summarizes activity in performance unit awards as of and for the year ended December 31, 2019 : Shares Weighted-Average Grant Date Fair Value Per Share Nonvested, beginning of period 317,437 $ 97.39 Granted 100,288 107.68 Vested (139,034 ) 66.93 Forfeited (18,958 ) 124.45 Nonvested, end of period 259,733 115.69 |
Activity in Non-Performance Based Restricted Stock Awards | The following table summarizes activity in non-performance based restricted stock and restricted stock unit awards as of and for the year ended December 31, 2019 : Shares Weighted-Average Grant Date Fair Value Per Share Nonvested, beginning of period 257,518 $ 85.44 Granted 131,365 79.27 Vested (89,548 ) 73.61 Forfeited (26,775 ) 89.23 Nonvested, end of period 272,560 85.98 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Components and Activity in Accumulated Other Comprehensive (Loss) Income, Net of Deferred Income Taxes | The components and activity in Accumulated other comprehensive (loss) income (net of deferred income taxes) consisted of the following during the years ended December 31, 2019 , 2018 and 2017 (in thousands): Foreign Currency Translation Pension and Post-Retirement Benefits (a) Net Investment Hedge Cash Flow Hedge (b) Interest Rate Swap (c) Total Accumulated other comprehensive (loss) income - balance at December 31, 2016 $ (484,121 ) $ 76 $ 88,378 $ — $ (16,745 ) $ (412,412 ) Other comprehensive income (loss) before reclassifications 227,439 — (41,827 ) — — 185,612 Amounts reclassified from accumulated other comprehensive loss — (97 ) — — 2,116 2,019 Other comprehensive income (loss), net of tax 227,439 (97 ) (41,827 ) — 2,116 187,631 Other comprehensive income attributable to noncontrolling interests (887 ) — — — — (887 ) Accumulated other comprehensive (loss) income - balance at December 31, 2017 $ (257,569 ) $ (21 ) $ 46,551 $ — $ (14,629 ) $ (225,668 ) Other comprehensive (loss) income before reclassifications (150,258 ) — 15,695 — — (134,563 ) Amounts reclassified from accumulated other comprehensive loss (d) — (138 ) 10,091 — (585 ) 9,368 Other comprehensive (loss) income, net of tax (150,258 ) (138 ) 25,786 — (585 ) (125,195 ) Other comprehensive loss attributable to noncontrolling interests 181 — — — — 181 Accumulated other comprehensive (loss) income - balance at December 31, 2018 $ (407,646 ) $ (159 ) $ 72,337 $ — $ (15,214 ) $ (350,682 ) Other comprehensive (loss) income before reclassifications (62,031 ) 576 8,441 4,847 — (48,167 ) Amounts reclassified from accumulated other comprehensive loss — 56 — — 2,591 2,647 Other comprehensive (loss) income, net of tax (62,031 ) 632 8,441 4,847 2,591 (45,520 ) Other comprehensive loss attributable to noncontrolling interests 467 — — — — 467 Accumulated other comprehensive (loss) income - balance at December 31, 2019 $ (469,210 ) $ 473 $ 80,778 $ 4,847 $ (12,623 ) $ (395,735 ) (a) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss consists of amortization of prior service benefit, which is a component of pension and postretirement benefits cost (credit). See Note 15, “Pension Plans and Other Postretirement Benefits,” for additional information. (b) We entered into a foreign currency forward contract in the fourth quarter of 2019, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging . See Note 22, “Fair Value of Financial Instruments,” for additional information. (c) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. (d) Amounts reclassified from accumulated other comprehensive loss include a net benefit of $6.9 million , which was reclassified to Retained earnings for stranded tax effects caused by the TCJA. |
Amount of Income Tax (Expense) Benefit Allocated to Component of Other Comprehensive (Loss) Income | The amount of income tax (expense) benefit allocated to each component of Other comprehensive (loss) income for the years ended December 31, 2019 , 2018 and 2017 is provided in the following tables (in thousands): Foreign Currency Translation Pension and Postretirement Benefits Net Investment Hedge Cash Flow Hedge Interest Rate Swap 2019 Other comprehensive (loss) income, before tax $ (62,030 ) $ 633 $ 10,867 $ 4,847 $ 3,336 Income tax expense (1 ) (1 ) (2,426 ) — (745 ) Other comprehensive (loss) income, net of tax $ (62,031 ) $ 632 $ 8,441 $ 4,847 $ 2,591 2018 Other comprehensive (loss) income, before tax $ (150,262 ) $ (128 ) $ 20,424 $ — $ 3,336 Income tax benefit (expense) 4 (10 ) 5,362 — (3,921 ) Other comprehensive (loss) income, net of tax $ (150,258 ) $ (138 ) $ 25,786 $ — $ (585 ) 2017 Other comprehensive income (loss), before tax $ 228,508 $ (96 ) $ (65,958 ) $ — $ 3,336 Income tax (expense) benefit (1,069 ) (1 ) 24,131 — (1,220 ) Other comprehensive income (loss), net of tax $ 227,439 $ (97 ) $ (41,827 ) $ — $ 2,116 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense Benefit | Income before income taxes and equity in net income of unconsolidated investments, and current and deferred income tax expense (benefit) are composed of the following (in thousands): Year Ended December 31, 2019 2018 2017 Income before income taxes and equity in net income of unconsolidated investments: Domestic $ 190,195 $ 223,702 $ (8,293 ) Foreign 372,755 570,999 455,091 Total $ 562,950 $ 794,701 $ 446,798 Current income tax expense (benefit): Federal $ 21,258 $ (2,712 ) $ 394,747 State 5,453 6,793 323 Foreign 47,056 91,581 78,688 Total $ 73,767 $ 95,662 $ 473,758 Deferred income tax (benefit) expense: Federal $ 13,255 $ 15,573 $ (58,640 ) State (7,369 ) 1,614 (2,288 ) Foreign 8,508 31,977 18,987 Total $ 14,394 $ 49,164 $ (41,941 ) Total income tax expense $ 88,161 $ 144,826 $ 431,817 |
Significant Differences Between United States Federal Statutory Rate and Effective Income Tax Rate | The reconciliation of the U.S. federal statutory rate to the effective income tax rate is as follows: % of Income Before Income Taxes 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State taxes, net of federal tax benefit (0.5 ) 0.9 (0.5 ) Change in valuation allowance (a) 1.9 0.7 (1.4 ) Impact of foreign earnings, net (b) (3.7 ) (0.3 ) (13.5 ) Global intangible low tax inclusion 1.8 0.8 — Change in U.S. federal statutory rate (c) — 0.1 (14.0 ) Transition tax on deferred foreign earnings (d) — (5.3 ) 96.1 Subpart F income 0.6 0.9 2.0 Undistributed earnings of foreign subsidiaries — — (2.2 ) Stock-based compensation (0.6 ) (0.7 ) (1.9 ) Depletion (0.7 ) (0.6 ) (1.4 ) Revaluation of unrecognized tax benefits/reserve requirements (2.7 ) — (0.7 ) Other items, net (1.4 ) 0.7 (0.9 ) Effective income tax rate 15.7 % 18.2 % 96.6 % (a) The year ended December 31, 2019 includes a $2.1 million benefit due to the release of a foreign valuation allowance due to changes in expected profitability. 2018 includes an $8.2 million expense due to the establishment of a valuation allowance due to a foreign restructuring plan and a $1.5 million benefit due to the release of a foreign valuation allowance due to changes in expected profitability. 2017 includes a $10.9 million benefit from the release of valuation allowances due to a foreign restructuring plan. (b) Our statutory rate is decreased by of our share of the income of JBC, a Free Zones company under the laws of the Hashemite Kingdom of Jordan. The applicable provisions of the Jordanian law, and applicable regulations thereunder, do not have a termination provision and the exemption is indefinite. As a Free Zones company, JBC is not subject to income taxes on the profits of products exported from Jordan, and currently, substantially all of the profits are from exports. This resulted in a rate benefit of 8.0% , 3.3% , and 8.9% for 2019 , 2018 , and 2017 , respectively. (c) At December 31, 2017 we made a reasonable estimate of the tax impact of the U.S. enacted tax law on our business and our consolidated financial statements and recorded a provisional tax benefit of $62.3 million related to the remeasurement of our deferred tax assets and liabilities for the reduction in the Federal statutory tax rate from 35% to 21% . In 2018, the updates to our calculation of the remeasurement of deferred tax assets and liabilities resulted in income tax expense of $0.4 million . (d) At December 31, 2017 we made a reasonable estimate of the tax impact of the U.S. enacted tax law on our business and our consolidated financial statements and recognized a provisional tax expense of $429.2 million for the one-time transition tax. During 2018, the impact of the refined one-time transition tax calculation was an income tax benefit of $42.3 million . |
Deferred Income Tax Assets and Liabilities Recorded on Consolidated Balance Sheets | Deferred income tax assets and liabilities recorded on the consolidated balance sheets as of December 31, 2019 and 2018 consist of the following (in thousands): December 31, 2019 2018 Deferred tax assets: Accrued employee benefits $ 17,462 $ 18,462 Operating loss carryovers 1,134,410 1,210,377 Pensions 64,230 61,308 Tax credit carryovers 1,497 1,270 Other 64,955 35,895 Gross deferred tax assets 1,282,554 1,327,312 Valuation allowance (1,148,268 ) (1,213,750 ) Deferred tax assets 134,286 113,562 Deferred tax liabilities: Depreciation (349,264 ) (337,503 ) Intangibles (88,934 ) (88,871 ) Hedge of net investment of foreign subsidiary (23,498 ) (21,854 ) Other (55,173 ) (31,287 ) Deferred tax liabilities (516,869 ) (479,515 ) Net deferred tax liabilities $ (382,583 ) $ (365,953 ) Classification in the consolidated balance sheets: Noncurrent deferred tax assets $ 15,275 $ 17,029 Noncurrent deferred tax liabilities (397,858 ) (382,982 ) Net deferred tax liabilities $ (382,583 ) $ (365,953 ) |
Changes in Balance of Deferred Tax Asset Valuation Allowance | Changes in the balance of our deferred tax asset valuation allowance are as follows (in thousands): Year Ended December 31, 2019 2018 2017 Balance at January 1 $ (1,213,750 ) $ (458,288 ) $ (69,900 ) Additions (a) (24,986 ) (766,012 ) (408,252 ) Deductions 90,468 10,550 19,864 Balance at December 31 $ (1,148,268 ) $ (1,213,750 ) $ (458,288 ) |
Reconciliation of Total Gross Liability Related to Uncertain Tax Positions | The following is a reconciliation of our total gross liability related to uncertain tax positions for 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Balance at January 1 $ 19,742 $ 21,438 $ 25,384 Additions for tax positions related to prior years 2,235 874 — Reductions for tax positions related to prior years — — (1,933 ) Additions for tax positions related to current year — 1,091 1,132 Lapses in statutes of limitations/settlements (4,494 ) (3,578 ) (4,198 ) Foreign currency translation adjustment 65 (83 ) 1,053 Balance at December 31 $ 17,548 $ 19,742 $ 21,438 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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. December 31, 2019 2018 Recorded Amount Fair Value Recorded Amount Fair Value (In thousands) Long-term debt $ 3,069,417 $ 3,173,341 $ 1,712,003 $ 1,731,271 |
Schedule of Derivative Instruments in Statement of Financial Position | The following table summarizes the fair value of our foreign currency forward contracts included in the consolidated balance sheets as of December 31, 2019 and 2018 (in thousands): Assets Liabilities December 31, December 31, 2019 2018 2019 2018 Designated as hedging instruments (a) $ 5,369 $ — $ — $ — Not designated as hedging instruments (b) 2,032 431 3,613 — Total $ 7,401 $ 431 $ 3,613 $ — (a) Included $3.7 million in Other current assets and $1.7 million in Other assets at December 31, 2019. (b) Included $2.0 million in Other current assets and $3.6 million in Accrued expenses at December 31, 2019 and $0.4 million in Other accounts receivable at December 31, 2018. |
Derivative Instruments, Gain (Loss) | The following table summarizes the net gains (losses) recognized for our foreign currency forward contracts during the years ended December 31, 2019 , 2018 and 2017 (in thousands): Year Ended December 31, 2019 2018 2017 Designated as hedging instruments: Gain recognized in Other comprehensive (loss) income $ 4,847 $ — $ — Not designated as hedging instruments: (Losses) gains recognized in Other expenses, net (a) $ (25,765 ) $ (19,851 ) $ 4,588 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 and 2018 (in thousands): December 31, 2019 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: Investments under executive deferred compensation plan (a) $ 28,715 $ 28,715 $ — $ — Private equity securities (b) $ 32 $ 32 $ — $ — Private equity securities measured at net asset value (b)(c) $ 4,890 $ — $ — $ — Foreign currency forward contracts (d) $ 7,401 $ — $ 7,401 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 28,715 $ 28,715 $ — $ — Foreign currency forward contracts (d) $ 3,613 $ — $ 3,613 $ — December 31, 2018 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: Investments under executive deferred compensation plan (a) $ 26,292 $ 26,292 $ — $ — Private equity securities (b) $ 26 $ 26 $ — $ — Private equity securities measured at net asset value (b)(c) $ 7,195 $ — $ — $ — Foreign currency forward contracts (d) $ 431 $ — $ 431 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 26,292 $ 26,292 $ — $ — (a) We maintain an 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. (b) Primarily consists of private equity securities classified as available-for-sale and are reported in Investments in the consolidated balance sheets. The changes in fair value are reported in Other expenses, net, in our consolidated statements of income. (c) Holdings in 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. The fair value amounts of $4.9 million and $7.2 million as of December 31, 2019 and 2018 , respectively, are included in this table to permit reconciliation to the marketable equity securities presented in Note 10, “Investments.” (d) 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 22, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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): Year Ended December 31, 2019 2018 2017 Sales to unconsolidated affiliates $ 20,068 $ 35,094 $ 29,514 Purchases from unconsolidated affiliates (a) $ 210,351 $ 256,701 $ 209,266 (a) Purchases from unconsolidated affiliates primarily relate to purchases from our Windfield joint venture. Our consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands): December 31, 2019 2018 Receivables from related parties $ 7,163 $ 14,348 Payables to related parties $ 35,502 $ 68,357 |
Segment and Geographic Area I_2
Segment and Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summarized Financial Information by Reportable Segments | Year Ended December 31, 2019 2018 2017 (In thousands) Net sales: Lithium $ 1,358,170 $ 1,228,171 $ 1,018,885 Bromine Specialties 1,004,216 917,880 855,143 Catalysts 1,061,817 1,101,554 1,067,572 All Other 165,224 127,186 128,914 Corporate — 159 1,462 Total net sales $ 3,589,427 $ 3,374,950 $ 3,071,976 Adjusted EBITDA: Lithium $ 524,934 $ 530,773 $ 446,652 Bromine Specialties 328,457 288,116 258,901 Catalysts 270,624 284,307 283,883 All Other 49,628 14,091 13,878 Corporate (136,862 ) (110,623 ) (117,834 ) Total adjusted EBITDA $ 1,036,781 $ 1,006,664 $ 885,480 See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands): Lithium Bromine Specialties Catalysts Reportable Segments Total All Other Corporate Consolidated Total 2019 Net income (loss) attributable to Albemarle Corporation $ 341,767 $ 279,945 $ 219,686 $ 841,398 $ 41,188 $ (349,358 ) $ 533,228 Depreciation and amortization 99,424 47,611 50,144 197,179 8,440 7,865 213,484 Restructuring and other (a) — — — — — 5,877 5,877 Acquisition and integration related costs (b) — — — — — 20,684 20,684 Gain on sale of property (c) — — — — — (14,411 ) (14,411 ) Interest and financing expenses (d) — — — — — 57,695 57,695 Income tax expense — — — — — 88,161 88,161 Non-operating pension and OPEB items — — — — — 26,970 26,970 Stamp duty (b) 64,766 — — 64,766 — — 64,766 Windfield tax settlement (e) 17,292 — — 17,292 — — 17,292 Other (f) 1,685 901 794 3,380 — 19,655 23,035 Adjusted EBITDA $ 524,934 $ 328,457 $ 270,624 $ 1,124,015 $ 49,628 $ (136,862 ) $ 1,036,781 2018 Net income (loss) attributable to Albemarle Corporation $ 428,212 $ 246,509 $ 445,604 $ 1,120,325 $ 6,018 $ (432,781 ) $ 693,562 Depreciation and amortization 95,193 41,607 49,131 185,931 8,073 6,694 200,698 Restructuring and other (a) — — — — — 3,838 3,838 Gain on sale of business (g) — — (210,428 ) (210,428 ) — — (210,428 ) Acquisition and integration related costs (b) — — — — — 19,377 19,377 Interest and financing expenses — — — — — 52,405 52,405 Income tax expense — — — — — 144,826 144,826 Non-operating pension and OPEB items — — — — — 5,285 5,285 Legal accrual (h) — — — — — 27,027 27,027 Environmental accrual (i) — — — — — 15,597 15,597 Albemarle Foundation contribution (j) — — — — — 15,000 15,000 Indemnification adjustments (k) — — — — — 25,240 25,240 Other (l) 7,368 — — 7,368 — 6,869 14,237 Adjusted EBITDA $ 530,773 $ 288,116 $ 284,307 $ 1,103,196 $ 14,091 $ (110,623 ) $ 1,006,664 2017 Net income (loss) attributable to Albemarle Corporation $ 342,992 $ 218,839 $ 230,665 $ 792,496 $ 5,521 $ (743,167 ) $ 54,850 Depreciation and amortization 87,879 40,062 54,468 182,409 8,357 6,162 196,928 Utilization of inventory markup (m) 23,095 — — 23,095 — — 23,095 Restructuring and other (n) — — — — — 17,056 17,056 Gain on acquisition (o) (6,221 ) — — (6,221 ) — — (6,221 ) Acquisition and integration related costs (b) — — — — — 33,954 33,954 Interest and financing expenses (p) — — — — — 115,350 115,350 Income tax expense — — — — — 431,817 431,817 Non-operating pension and OPEB items — — — — — (16,125 ) (16,125 ) Note receivable reserve (q) — — — — — 28,730 28,730 Other (r) (1,093 ) — (1,250 ) (2,343 ) — 8,389 6,046 Adjusted EBITDA $ 446,652 $ 258,901 $ 283,883 $ 989,436 $ 13,878 $ (117,834 ) $ 885,480 (a) Severance payments as part of a business reorganization plan, $5.9 million recorded in Selling, general and administrative expenses for the year ended December 31, 2019 and $0.1 million and $3.7 million recorded in Cost of goods sold and Selling, general and administrative expenses, respectively, for the year ended December 31, 2018. (b) See Note 2, “Acquisitions,” for additional information. (c) Gain of $3.3 million recorded in Selling, general and administrative expenses related to the release of liabilities as part of the sale of a property and $11.1 million gain recorded in Other expenses, net related to the sale of land in Pasadena, Texas not used as part of our operations. (d) Included in Interest and financing expenses is a loss on early extinguishment of debt of $4.8 million . See Note 14, “Long-Term Debt,” for additional information. (e) Represents our 49% share of a tax settlement between our Windfield joint venture and an Australian taxing authority, recorded in Equity in net income of unconsolidated investments (net of tax). This is offset in Income tax expense by a discrete tax benefit related to seeking treaty relief from the competent authority to prevent double taxation. (f) Included amounts for the year ended December 31, 2019 recorded in: • Cost of goods sold - $0.7 million related to non-routine labor and compensation related costs in Chile that are outside normal compensation arrangements. • Selling, general and administrative expenses - $1.8 million of shortfall contributions for our multiemployer plan financial improvement plan, $0.9 million of a write-off of uncollectable accounts receivable from a terminated distributor in the Bromine Specialties segment, $1.0 million related to the settlement of terminated agreements, primarily in the Catalysts segment, and $0.8 million related to the settlement of an ongoing audit in the Lithium segment. • Other expenses, net - $3.1 million of unrecoverable vendor costs outside the operations of the business related to the construction of the future Kemerton production facility, $9.8 million of a net loss primarily resulting from the adjustment of indemnifications and other liabilities related to previously disposed businesses or purchase accounting, $3.6 million of asset retirement obligation charges related to the update of an estimate at a site formerly owned by Albemarle, and $1.2 million of non-operating pension costs from our 50% interest in JBC. (g) See Note 3, “Divestitures,” for additional information. (h) Included in Other expenses, net. See Note 17, “Commitments and Contingencies,” for additional information. (i) Increase in environmental reserve to indemnify the buyer of a formerly owned site recorded in Other expenses, net. As defined in the agreement of sale, this indemnification has a set cutoff date in 2024, at which point we will no longer be required to provide financial coverage. (j) Included in Selling, general and administrative expenses is a charitable contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, to the Albemarle Foundation, a non-profit organization that sponsors grants, health and social projects, educational initiatives, disaster relief, matching gift programs, scholarships and other charitable initiatives in locations where our employees live and operate. This contribution is in addition to the normal annual contribution made to the Albemarle Foundation by the Company, and is significant in size and nature in that it is intended to provide more long-term benefits in the communities where we live and operate. (k) Included in Other expenses, net is $19.7 million related to the proposed settlement of an ongoing audit of a previously disposed business in Germany, and $5.5 million related to the adjustment of indemnifications previously recorded from disposed businesses. (l) Included amounts for the year ended December 31, 2018 recorded in: • Cost of goods sold - $4.9 million for the write-off of fixed assets related to a major capacity expansion in our Jordanian joint venture and $8.8 million related to non-routine labor and compensation related costs in Chile that are outside normal compensation arrangements. • Selling, general and administrative expenses - $2.3 million of shortfall contributions for our multiemployer plan financial improvement plan and a $1.2 million contribution, using a portion of the proceeds received from the Polyolefin Catalysts Divestiture, to schools in the state of Louisiana for qualified tuition purposes. This contribution is significant in size and is intended to provide long-term benefits for families in the Louisiana community. This was partially offset by a $1.5 million gain related to a refund from Chilean authorities due to an overpayment made in a prior year. • Other expenses, net - $1.5 million gain related to the reversal of previously recorded liabilities of disposed businesses. (m) In connection with the acquisition of Jiangli New Materials, completed on December 31, 2016, the Company valued inventory purchased from Jiangli New Materials at fair value, which resulted in a markup of the underlying net book value of the inventory totaling approximately $23.1 million . The utilization of this inventory markup was included in Costs of goods sold during the year ended December 31, 2017, the estimated remaining selling period. (n) During 2017, we initiated action to reduce costs in each of our reportable segments at several locations, primarily at our Lithium sites in Germany. Based on the restructuring plans, we have recorded expenses of $2.9 million in Cost of goods sold, $8.4 million in Selling, general and administrative expenses, and $5.7 million in Research and development expenses, primarily related to expected severance payments. (o) Gain recorded in Other expenses, net related to the acquisition of the remaining 50% interest in Salmag. See Note 2, “Acquisitions,” for additional information. (p) During the first quarter of 2017, we repaid the 3.00% Senior notes in full, €307.0 million of the 1.875% Senior notes and $174.7 million of the 4.50% Senior notes, as well as related tender premiums of $45.2 million . As a result, included in Interest and financing expenses is a loss on early extinguishment of debt of $52.8 million , representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of these senior notes. (q) Reserve recorded in Other expenses, net against a note receivable on one of our European entities no longer deemed probable of collection. (r) Included amounts for the year ended December 31, 2017 recorded in: • Cost of goods sold - $1.3 million reversal of deferred income related to an abandoned project at an unconsolidated investment. • Selling, general and administrative expenses - $3.3 million of shortfall contributions for our multiemployer plan financial improvement plan, partially offset by $1.0 million related to a reversal of an accrual recorded as part of purchase accounting from a previous acquisition. • Other expenses, net - $3.2 million of asset retirement obligation charges related to the update of an estimate at a site formerly owned by Albemarle, losses of $8.7 million related to adjustments of settlements and indemnifications of previously disposed businesses, the adjustment of tax indemnification expenses of $3.7 million primarily related to the filing of tax returns and a competent authority agreement for a previously disposed business and $1.0 million related to the settlement of a legal claim. This is partially offset by gains of $10.6 million and $1.1 million related to the reversal of liabilities recorded as part of purchase accounting from a previous acquisition and the previous disposal of a property, respectively. December 31, 2019 2018 2017 (In thousands) Identifiable assets: Lithium (a) $ 6,570,791 $ 4,605,070 $ 3,979,615 Bromine Specialties 799,456 753,157 745,007 Catalysts 1,163,590 1,134,975 1,332,599 All Other 146,211 128,185 126,486 Corporate (b) 1,180,815 960,287 1,567,065 Total identifiable assets $ 9,860,863 $ 7,581,674 $ 7,750,772 (a) Increase in Lithium identifiable assets at December 31, 2019 primarily due to the acquisition of 60% interest in MRL’s Wodgina Project assets, as well as capital expenditures for growth and capacity increases. (b) Decrease in Corporate identifiable assets at December 31, 2018 primarily due to the net use of cash and cash equivalents for items such as capital expenditures, share repurchases and commercial paper repayments. Year Ended December 31, 2019 2018 2017 (In thousands) Depreciation and amortization: Lithium $ 99,424 $ 95,193 $ 87,879 Bromine Specialties 47,611 41,607 40,062 Catalysts 50,144 49,131 54,468 All Other 8,440 8,073 8,357 Corporate 7,865 6,694 6,162 Total depreciation and amortization $ 213,484 $ 200,698 $ 196,928 Capital expenditures: Lithium $ 665,585 $ 500,849 $ 192,318 Bromine Specialties 82,208 79,357 46,427 Catalysts 57,939 52,019 46,808 All Other 7,309 5,232 3,657 Corporate 38,755 62,534 28,493 Total capital expenditures $ 851,796 $ 699,991 $ 317,703 |
Net Sales by Geographic Area | Year Ended December 31, 2019 2018 2017 (In thousands) Net Sales (a) : United States $ 858,084 $ 887,416 $ 840,589 Foreign (b) 2,731,343 2,487,534 2,231,387 Total $ 3,589,427 $ 3,374,950 $ 3,071,976 (a) Net sales are attributed to countries based upon shipments to final destination. (b) In 2019, net sales to Korea, China and Japan represented 17% , 13% , and 12% , respectively, of total net sales. In 2018, net sales to Korea, China and Japan represented 13% , 12% , and 10% , respectively, of total net sales. In 2017, net sales to China represented 15% of total net sales. No net sales in any other foreign country exceed 10% of total net sales. |
Long-Lived Assets by Geographic Area | As of December 31, 2019 2018 2017 (In thousands) Long-Lived Assets (a) : United States $ 1,003,496 $ 929,291 $ 833,002 Australia 1,981,642 407,141 364,624 Chile 1,687,090 1,406,478 1,069,859 Jordan 256,363 254,800 242,626 Netherlands 165,782 166,853 171,980 China 109,235 91,160 50,532 Germany 89,568 101,168 115,305 France 44,936 43,698 40,852 Brazil 37,165 40,464 47,255 Other foreign countries 68,499 65,937 60,626 Total $ 5,443,776 $ 3,506,990 $ 2,996,661 (a) Long-lived assets are comprised of the Company’s Property, plant and equipment and joint ventures included in Investments. |
Quarterly Financial Summary (_2
Quarterly Financial Summary (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Summary | First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share amounts) 2019 Net sales $ 832,064 $ 885,052 $ 879,747 $ 992,564 Gross profit (a) $ 283,486 $ 325,914 $ 309,867 $ 338,511 Net income $ 151,526 $ 174,970 $ 171,618 $ 106,243 Net income attributable to noncontrolling interests (17,957 ) (20,772 ) (16,548 ) (15,852 ) Net income attributable to Albemarle Corporation $ 133,569 $ 154,198 $ 155,070 $ 90,391 Basic earnings per share $ 1.26 $ 1.46 $ 1.46 $ 0.85 Shares used to compute basic earnings per share 105,799 105,961 105,999 106,037 Diluted earnings per share $ 1.26 $ 1.45 $ 1.46 $ 0.85 Shares used to compute diluted earnings per share 106,356 106,316 106,299 106,314 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share amounts) 2018 Net sales $ 821,629 $ 853,874 $ 777,748 $ 921,699 Gross profit $ 304,979 $ 311,356 $ 280,537 $ 320,384 (Gain) loss on sale of business, net (b) $ — $ (218,705 ) $ — $ 8,277 Net income $ 138,925 $ 310,686 $ 143,479 $ 146,049 Net income attributable to noncontrolling interests (7,165 ) (8,225 ) (13,734 ) (16,453 ) Net income attributable to Albemarle Corporation $ 131,760 $ 302,461 $ 129,745 $ 129,596 Basic earnings per share $ 1.19 $ 2.76 $ 1.21 $ 1.22 Shares used to compute basic earnings per share 110,681 109,671 107,315 106,042 Diluted earnings per share $ 1.18 $ 2.73 $ 1.20 $ 1.21 Shares used to compute diluted earnings per share 111,867 110,659 108,302 107,005 (a) Cost of goods sold for the third quarter of 2019 included expense of $7.0 million due to the correction of an out-of-period error regarding carbonate inventory values related to the second quarter of 2019. (b) Represents the gain (loss) on the Polyolefin Catalysts Divestiture. See Note 3, “Divestitures,” for additional information. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Supplemental cash flow information related to our lease contracts for the year ended December 31, 2019 is as follows (in thousands): December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 29,946 Operating cash flows from finance leases 117 Financing cash flows from finance leases 678 Right-of-use assets obtained in exchange for lease obligations: Operating leases 24,687 Finance leases (a) 55,806 (a) Represents 60% ownership interest in finance lease acquired as part of the Wodgina Project acquisition. See Note 2, “Acquisitions,” for further details. The following table provides details of our lease contracts for the year ended December 31, 2019 (in thousands): December 31, 2019 Operating lease cost $ 35,335 Finance lease cost: Amortization of right of use assets 625 Interest on lease liabilities 117 Total finance lease cost 742 Short-term lease cost 6,655 Variable lease cost 6,198 Total lease cost $ 48,930 |
Supplemental Balance Sheet Information related | Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at December 31, 2019 is as follows (in thousands, except as noted): December 31, 2019 Operating leases: Other assets $ 133,864 Current operating lease liability 23,137 Other noncurrent liabilities 114,686 Total operating lease liabilities 137,823 Finance leases: Net property, plant and equipment 59,494 Current portion of long-term debt 636 Long-term debt 58,888 Total finance lease liabilities 59,524 Weighted average remaining lease term (in years): Operating leases 11.4 Finance leases 28.3 Weighted average discount rate (%): Operating leases 3.84 % Finance leases 4.56 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2019 were as follows (in thousands): Operating Leases Finance Leases 2020 $ 28,333 $ 2,229 2021 15,306 2,140 2022 13,153 4,431 2023 12,433 4,431 2024 11,850 4,431 Thereafter 94,002 94,788 Total lease payments 175,077 112,450 Less imputed interest 37,254 52,926 Total $ 137,823 $ 59,524 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2019 were as follows (in thousands): Operating Leases Finance Leases 2020 $ 28,333 $ 2,229 2021 15,306 2,140 2022 13,153 4,431 2023 12,433 4,431 2024 11,850 4,431 Thereafter 94,002 94,788 Total lease payments 175,077 112,450 Less imputed interest 37,254 52,926 Total $ 137,823 $ 59,524 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Trade accounts receivable arising from contracts with customers | $ 602,100 | $ 590,300 | ||||
Operating lease, right-of-use asset | 133,864 | $ 0 | ||||
Operating lease, lease liability | $ 137,823 | |||||
Reduction in federal statutory rate | 21.00% | 21.00% | 21.00% | 35.00% | ||
Foreign exchange transaction losses | $ (27,400) | $ (10,500) | $ (11,100) | |||
Maximum remaining expiration period for foreign currency forward contracts | 1 year | |||||
Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Payment terms | 30 days | |||||
Timing between shipment and delivery | 1 day | |||||
Property, plant and equipment, useful life | 2 years | |||||
Finite-lived intangible assets, useful life | 5 years | |||||
Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Payment terms | 90 days | |||||
Timing between shipment and delivery | 45 days | |||||
Property, plant and equipment, useful life | 60 years | |||||
Finite-lived intangible assets, useful life | 25 years | |||||
Planned Major Maintenance Activities | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property, plant and equipment, useful life | 12 months | |||||
Accounting Standards Update 2016-02 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Operating lease, right-of-use asset | $ 139,100 | |||||
Operating lease, lease liability | $ 139,100 | |||||
Mineral Resources Limited Wodgina Project | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Interest percentage acquired | 60.00% | |||||
Ownership percentage | 60.00% | 60.00% |
Acquisitions Acquisitions (Deta
Acquisitions Acquisitions (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,578,785 | $ 1,567,169 | $ 1,610,355 | |
Mineral Resources Limited Wodgina Project | ||||
Business Acquisition [Line Items] | ||||
Cash payments related to joint venture | 820,000 | |||
Consideration transferred | $ 1,300,000 | 1,323,566 | ||
Cash payments related to joint venture, certain adjustments | 22,500 | 23,566 | ||
Total purchase price | $ 1,300,000 | 1,323,566 | ||
Inventories | 33,900 | |||
Other current assets | 10,695 | |||
Other assets | 1,000 | |||
Current liabilities | (10,695) | |||
Long-term debt | (55,806) | |||
Other noncurrent liabilities | (23,296) | |||
Total identifiable net assets | 1,291,804 | |||
Goodwill | 31,762 | |||
Total net assets acquired | 1,323,566 | |||
Lithium Hydroxide Conversion Assets | Mineral Resources Limited Wodgina Project | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | 480,000 | |||
Total purchase price | 480,000 | |||
Building and improvements | Mineral Resources Limited Wodgina Project | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment | 22,200 | |||
Machinery and equipment | Mineral Resources Limited Wodgina Project | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment | 163,806 | |||
Mineral rights and reserves | Mineral Resources Limited Wodgina Project | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment | 1,046,300 | |||
Construction in progress | Mineral Resources Limited Wodgina Project | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment | $ 103,700 |
Acquisitions (Additional Detail
Acquisitions (Additional Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Feb. 01, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||||||||
Net income attributable to Albemarle Corporation | $ 90,391 | $ 155,070 | $ 154,198 | $ 133,569 | $ 129,596 | $ 129,745 | $ 302,461 | $ 131,760 | $ 533,228 | $ 693,562 | $ 54,850 | ||
Acquisition and integration related costs | 20,684 | 19,377 | 33,954 | ||||||||||
Goodwill | 1,578,785 | $ 1,567,169 | 1,578,785 | 1,567,169 | 1,610,355 | ||||||||
Gain on acquisition | 0 | 0 | 6,221 | ||||||||||
Sales de Magnesio Ltda. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Interest percentage acquired | 50.00% | ||||||||||||
Consideration transferred | $ 8,300 | ||||||||||||
Cost of goods sold | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition and integration related costs | 1,000 | 3,700 | 14,300 | ||||||||||
Selling, general and administrative expenses | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition and integration related costs | 19,700 | $ 15,700 | 19,600 | ||||||||||
Other expenses, net | Sales de Magnesio Ltda. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Gain on acquisition | $ 6,200 | ||||||||||||
Mineral Resources Limited Wodgina Project | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Interest percentage acquired | 60.00% | ||||||||||||
Consideration transferred | $ 1,300,000 | 1,323,566 | |||||||||||
Cash payments related to joint venture | 820,000 | ||||||||||||
Cash payments related to joint venture, certain adjustments | $ 22,500 | $ 23,566 | |||||||||||
Ownership percentage | 60.00% | 60.00% | |||||||||||
Net income attributable to Albemarle Corporation | $ (73,000) | ||||||||||||
Goodwill | 31,762 | 31,762 | |||||||||||
Mineral Resources Limited Wodgina Project | Stamp duty tax | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition and integration related costs | 64,800 | ||||||||||||
Mineral Resources Limited Wodgina Project | Cost of goods sold | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition and integration related costs | 1,000 | ||||||||||||
Mineral Resources Limited Wodgina Project | Selling, general and administrative expenses | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition and integration related costs | 7,500 | ||||||||||||
Mineral Resources Limited Wodgina Project | Selling, general and administrative expenses | Stamp duty tax | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition and integration related costs | $ 64,766 | ||||||||||||
Wodgina Lithium Operations Pty. Ltd. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Ownership percentage | 60.00% | ||||||||||||
Lithium Hydroxide Conversion Assets | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Ownership percentage | 40.00% | 40.00% | |||||||||||
Lithium Hydroxide Conversion Assets | Mineral Resources Limited Wodgina Project | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Consideration transferred | $ 480,000 | ||||||||||||
Mineral Reserves | Mineral Resources Limited Wodgina Project | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Fair value of mineral reserves | $ 1,005,300 | $ 1,005,300 |
Divestitures - Additional Infor
Divestitures - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash proceeds from divestitures, net | $ 0 | $ 413,569 | $ 6,857 | ||||
Gain on sales of businesses, net | $ (8,277) | $ 0 | $ 218,705 | $ 0 | $ 0 | 210,428 | $ 0 |
Polyolefin Catalysts | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash proceeds from divestitures, net | 413,600 | ||||||
Gain on sales of businesses, net | $ 210,400 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |||
Income taxes, refunds | $ 7,438 | $ 21,459 | $ 17,522 |
Income taxes (net of refunds of $7,438, $21,459 and $17,522 in 2019, 2018 and 2017, respectively)(a) | 170,450 | 157,758 | 320,222 |
Interest (net of capitalization) | 45,532 | 49,762 | 61,243 |
Capital expenditures included in Accounts payable | $ 199,451 | $ 134,784 | $ 89,188 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information Footnote (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash Flow Supplemental Disclosures [Line Items] | ||||
Capital expenditures | $ 851,796 | $ 699,991 | $ 317,703 | |
Transition tax on foreign earnings, current | 14,300 | 28,400 | ||
Transition tax on foreign earnings | 394,900 | |||
Foreign currency exchange rate losses | $ 27,400 | 10,500 | 11,100 | |
Polyolefin Catalysts | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Income taxes paid from gain on sale | $ 41,000 | |||
Chemetall Surface Treatment | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Income taxes paid from gain on sale | $ 257,000 | |||
Lithium Hydroxide Conversion Assets | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Ownership percentage | 40.00% | 40.00% | ||
Mineral Resources Limited Wodgina Project | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Ownership percentage | 60.00% | 60.00% | ||
Consideration transferred | $ 1,300,000 | $ 1,323,566 | ||
Mineral Resources Limited Wodgina Project | Lithium Hydroxide Conversion Assets | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Capital expenditures | 164,700 | |||
Consideration transferred | $ 480,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Albemarle Corporation | $ 533,228 | $ 693,562 | $ 54,850 | ||||||||
Weighted-average common shares for basic earnings per share (in shares) | 106,037 | 105,999 | 105,961 | 105,799 | 106,042 | 107,315 | 109,671 | 110,681 | 105,949 | 108,427 | 110,914 |
Basic earnings per share (in dollars per share) | $ 0.85 | $ 1.46 | $ 1.46 | $ 1.26 | $ 1.22 | $ 1.21 | $ 2.76 | $ 1.19 | $ 5.03 | $ 6.40 | $ 0.49 |
Incremental shares under stock compensation plans | 372 | 1,031 | 1,466 | ||||||||
Weighted-average common shares for diluted earnings per share (in shares) | 106,314 | 106,299 | 106,316 | 106,356 | 107,005 | 108,302 | 110,659 | 111,867 | 106,321 | 109,458 | 112,380 |
Diluted earnings per share (in dollars per share) | $ 0.85 | $ 1.46 | $ 1.45 | $ 1.26 | $ 1.21 | $ 1.20 | $ 2.73 | $ 1.18 | $ 5.02 | $ 6.34 | $ 0.49 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - USD ($) $ in Thousands | Dec. 07, 2018 | Sep. 28, 2018 | Jun. 16, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2016 |
Earnings Per Share Disclosure [Line Items] | ||||||||
Preferred stock, shares authorized (in shares) | 15,000,000 | |||||||
Payment for repurchase of common stock | $ 0 | $ 500,000 | $ 250,000 | |||||
Repurchase of common stock shares (in shares) | 0 | |||||||
Shares available for repurchase (in shares) | 7,396,263 | |||||||
Preferred shares issued (in shares) | 0 | |||||||
Accelerated Share Repurchase Agreement | ||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||
Payment for repurchase of common stock | $ 250,000 | $ 250,000 | ||||||
Maximum | ||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||
Number of shares authorized to be repurchased (in shares) | 15,000,000 | |||||||
Restricted Stock | ||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||
Number of shares containing nonforfeitable rights to dividends (in shares) | 18,100 | |||||||
Total Delivery | Accelerated Share Repurchase Agreement | ||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||
Repurchase of common stock shares (in shares) | 5,262,654 | 2,341,083 | ||||||
Total Delivery | May 2018 Accelerated Share Repurchase Agreement | ||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||
Repurchase of common stock shares (in shares) | 2,680,704 | |||||||
Total Delivery | August 2018 Accelerated Share Repurchase Agreement | ||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||
Repurchase of common stock shares (in shares) | 2,581,950 | |||||||
Initial Delivery | Accelerated Share Repurchase Agreement | ||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||
Repurchase of common stock shares (in shares) | 1,948,178 | |||||||
Final Settlement | Accelerated Share Repurchase Agreement | ||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||
Repurchase of common stock shares (in shares) | 392,905 | |||||||
Common Stock | ||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||
Antidilutive securities excluded from computation of earnings per share | 214,904 |
Other Accounts Receivable (Deta
Other Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Value added tax/consumption tax | $ 52,059 | $ 40,480 |
Other | 15,492 | 11,579 |
Total | $ 67,551 | $ 52,059 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 495,639 | $ 482,355 |
Raw materials and work in process | 205,781 | 158,290 |
Stores, supplies and other | 67,564 | 59,895 |
Total inventories | $ 768,984 | $ 700,540 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Finished goods, chemical grade spodumene related to Lithium | $ 495,639 | $ 482,355 |
Percentage of LIFO inventory | 10.00% | 10.00% |
Inventories stated on LIFO basis | $ 78,700 | $ 69,200 |
Excess of replacement costs over stated LIFO value | 30,800 | 32,800 |
Lithium | ||
Inventory [Line Items] | ||
Finished goods, chemical grade spodumene related to Lithium | 44,300 | 104,300 |
Work in process related to Lithium | $ 109,300 | $ 71,400 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Income tax receivables | $ 72,246 | $ 40,116 |
Prepaid expenses | 83,637 | 43,172 |
Other | 6,930 | 1,502 |
Total | $ 162,813 | $ 84,790 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 116,728 | $ 123,518 |
Land improvements | 83,256 | 63,349 |
Buildings and improvements | 337,728 | 251,980 |
Machinery and equipment | 3,355,519 | 2,780,478 |
Mineral rights and reserves | 1,764,067 | 696,033 |
Construction in progress | 1,160,545 | 883,705 |
Total | $ 6,817,843 | $ 4,799,063 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Footnote) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Minimum | Land improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Minimum | Building and improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Minimum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Minimum | Long term mineral rights and production equipment costs | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Minimum | Short-lived production equipment components, office and building equipment and other equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Minimum | Production process equipment (intermediate components) | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 8 years |
Minimum | Production process equipment (major unit components) | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 20 years |
Minimum | Production process equipment (infrastructure and other) | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 60 years |
Maximum | Land improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
Maximum | Building and improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 50 years |
Maximum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 45 years |
Maximum | Long term mineral rights and production equipment costs | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 60 years |
Maximum | Short-lived production equipment components, office and building equipment and other equipment | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Maximum | Production process equipment (intermediate components) | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 19 years |
Maximum | Production process equipment (major unit components) | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 29 years |
Maximum | Production process equipment (infrastructure and other) | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 45 years |
Property Plant and Equipment -
Property Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 183.3 | $ 170 | $ 169.5 |
Interest capitalized on significant capital projects | $ 30.2 | $ 19.3 | $ 7.4 |
Investments Investment Balances
Investments Investment Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Joint ventures | $ 534,430 | $ 486,032 |
Nonmarketable securities | 11,746 | 9,177 |
Marketable equity securities | 33,637 | 33,513 |
Total | $ 579,813 | $ 528,722 |
Investments Ownership Positions
Investments Ownership Positions in Significant Unconsolidated (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Windfield Holdings | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 49.00% | 49.00% | 49.00% |
Nippon Aluminum Alkyls | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | 50.00% | 50.00% |
Nippon Ketjen Company Limited | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | 50.00% | 50.00% |
Eurecat S.A. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | 50.00% | 50.00% |
Fabrica Carioca de Catalisadores S.A. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | 50.00% | 50.00% |
Investments Summary of Assets,
Investments Summary of Assets, Liabilities and Results of Operations for Significant Unconsolidated Joint Ventures (Details) - Significant Unconsolidated Joint Ventures - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investments [Line Items] | |||
Current assets | $ 473,426 | $ 476,460 | |
Noncurrent assets | 1,404,765 | 1,159,866 | |
Total assets | 1,878,191 | 1,636,326 | |
Current liabilities | 201,792 | 191,971 | |
Noncurrent liabilities | 583,839 | 422,769 | |
Total liabilities | 785,631 | 614,740 | |
Net sales | 910,891 | 829,590 | $ 687,561 |
Gross profit | 496,150 | 456,518 | 353,577 |
Income before income taxes | 384,690 | 332,632 | 267,805 |
Net income | $ 229,733 | $ 225,791 | $ 184,777 |
Investments Additional Informat
Investments Additional Information (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Feb. 28, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | |||||
Equity in net income of unconsolidated investments (net of tax) | $ 129,568 | $ 89,264 | $ 84,487 | ||
Dividends received from unconsolidated investments | 71,746 | 57,415 | 39,386 | ||
Investments in unconsolidated joint ventures exceeded the amount of underlying equity in net assets | 15,300 | 400 | |||
Termination of Tianqi Lithium Corporation option agreement | $ 13,100 | 0 | |||
Marketable equity securities | 33,637 | 33,513 | |||
Significant Unconsolidated Joint Venture | |||||
Schedule of Investments [Line Items] | |||||
Investment in significant unconsolidated joint ventures | 513,800 | 466,100 | |||
Equity in net income of unconsolidated investments (net of tax) | 128,000 | 88,800 | 86,800 | ||
Undistributed earnings from equity method investees | 216,900 | 159,900 | |||
Dividends received from unconsolidated investments | $ 71,000 | $ 56,400 | $ 38,100 | ||
Windfield Holdings | |||||
Schedule of Investments [Line Items] | |||||
Ownership percentage | 49.00% | 49.00% | 49.00% | ||
Rockwood Lithium GmbH | |||||
Schedule of Investments [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Benefit Protection Trust | |||||
Schedule of Investments [Line Items] | |||||
Marketable equity securities | $ 28,700 | $ 26,300 | |||
Windfield Holdings | |||||
Schedule of Investments [Line Items] | |||||
Ownership percentage | 49.00% | ||||
Carrying value of unconsolidated investment | $ 397,200 | 349,600 | |||
Other Variable Interest Entities Excluding Windfield Holdings | |||||
Schedule of Investments [Line Items] | |||||
Carrying value of unconsolidated investment | $ 7,600 | $ 8,100 | |||
Jordan Bromine Company Limited | |||||
Schedule of Investments [Line Items] | |||||
Ownership percentage | 50.00% | ||||
Minimum | Rockwood Lithium GmbH | |||||
Schedule of Investments [Line Items] | |||||
Ownership percentage | 20.00% | ||||
Maximum | Rockwood Lithium GmbH | |||||
Schedule of Investments [Line Items] | |||||
Ownership percentage | 30.00% | ||||
Mineral Resources Limited Wodgina Project | |||||
Schedule of Investments [Line Items] | |||||
Ownership percentage | 60.00% | 60.00% | |||
Interest percentage acquired | 60.00% |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Other Assets, Noncurrent [Abstract] | |||
Deferred income taxes | $ 17,029 | $ 15,275 | |
Assets related to unrecognized tax benefits | 12,984 | 26,127 | |
Operating leases | 0 | 133,864 | |
Other | 50,122 | 37,795 | |
Total | 80,135 | $ 213,061 | |
Note receivable reserve | $ 28,700 | $ 28,730 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 1,567,169 | $ 1,610,355 |
Foreign currency translation adjustments and other | (20,146) | (43,186) |
Goodwill, Ending Balance | 1,578,785 | 1,567,169 |
All Other | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 6,586 | 6,586 |
Foreign currency translation adjustments and other | 0 | 0 |
Goodwill, Ending Balance | 6,586 | 6,586 |
Reportable Segments | Lithium | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 1,354,779 | 1,389,089 |
Foreign currency translation adjustments and other | (15,695) | (34,310) |
Goodwill, Ending Balance | 1,370,846 | 1,354,779 |
Reportable Segments | Bromine Specialties | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 20,319 | 20,319 |
Foreign currency translation adjustments and other | 0 | 0 |
Goodwill, Ending Balance | 20,319 | 20,319 |
Reportable Segments | Catalysts | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 185,485 | 194,361 |
Foreign currency translation adjustments and other | (4,451) | (8,876) |
Goodwill, Ending Balance | 181,034 | $ 185,485 |
Mineral Resources Limited Wodgina Project | ||
Goodwill [Roll Forward] | ||
Acquisitions | 31,762 | |
Goodwill, Ending Balance | 31,762 | |
Mineral Resources Limited Wodgina Project | All Other | ||
Goodwill [Roll Forward] | ||
Acquisitions | 0 | |
Mineral Resources Limited Wodgina Project | Reportable Segments | Lithium | ||
Goodwill [Roll Forward] | ||
Acquisitions | 31,762 | |
Mineral Resources Limited Wodgina Project | Reportable Segments | Bromine Specialties | ||
Goodwill [Roll Forward] | ||
Acquisitions | 0 | |
Mineral Resources Limited Wodgina Project | Reportable Segments | Catalysts | ||
Goodwill [Roll Forward] | ||
Acquisitions | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning Balance | $ 546,334 | $ 557,167 | |
Foreign currency translation adjustments and other | (9,483) | (10,833) | |
Ending Balance | 536,851 | 546,334 | $ 557,167 |
Beginning Balance | (160,191) | (135,664) | |
Amortization | (27,122) | (27,979) | (25,100) |
Foreign currency translation adjustments and other | 5,084 | 3,452 | |
Ending Balance | (182,229) | (160,191) | (135,664) |
Net Book Value | 354,622 | 386,143 | |
Customer Lists and Relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning Balance | 428,372 | 439,312 | |
Foreign currency translation adjustments and other | (5,910) | (10,940) | |
Ending Balance | 422,462 | 428,372 | 439,312 |
Beginning Balance | (95,797) | (74,704) | |
Amortization | (23,020) | (23,402) | |
Foreign currency translation adjustments and other | 2,068 | 2,309 | |
Ending Balance | (116,749) | (95,797) | (74,704) |
Net Book Value | 305,713 | 332,575 | |
Trademarks and trade names | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning Balance | 18,453 | 18,981 | |
Foreign currency translation adjustments and other | (366) | (528) | |
Ending Balance | 18,087 | 18,453 | 18,981 |
Beginning Balance | (8,176) | (8,295) | |
Amortization | 0 | 0 | |
Foreign currency translation adjustments and other | 238 | 119 | |
Ending Balance | (7,938) | (8,176) | (8,295) |
Net Book Value | 10,149 | 10,277 | |
Patents and Technology | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning Balance | 55,801 | 61,618 | |
Foreign currency translation adjustments and other | (781) | (5,817) | |
Ending Balance | 55,020 | 55,801 | 61,618 |
Beginning Balance | (35,248) | (35,203) | |
Amortization | (1,388) | (1,450) | |
Foreign currency translation adjustments and other | 439 | 1,405 | |
Ending Balance | (36,197) | (35,248) | (35,203) |
Net Book Value | 18,823 | 20,553 | |
Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning Balance | 43,708 | 37,256 | |
Foreign currency translation adjustments and other | (2,426) | 6,452 | |
Ending Balance | 41,282 | 43,708 | 37,256 |
Beginning Balance | (20,970) | (17,462) | |
Amortization | (2,714) | (3,127) | |
Foreign currency translation adjustments and other | 2,339 | (381) | |
Ending Balance | (21,345) | (20,970) | $ (17,462) |
Net Book Value | $ 19,937 | $ 22,738 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Intangible Assets [Line Items] | |||
Amortization of other intangible assets | $ 27,122 | $ 27,979 | $ 25,100 |
Minimum | |||
Other Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 5 years | ||
Maximum | |||
Other Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 25 years | ||
Customer lists and relationships | |||
Other Intangible Assets [Line Items] | |||
Amortization of other intangible assets | $ 23,020 | 23,402 | |
Customer lists and relationships | Minimum | |||
Other Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 13 years | ||
Customer lists and relationships | Maximum | |||
Other Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 25 years | ||
Patents and technology | |||
Other Intangible Assets [Line Items] | |||
Amortization of other intangible assets | $ 1,388 | 1,450 | |
Patents and technology | Minimum | |||
Other Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 8 years | ||
Patents and technology | Maximum | |||
Other Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 20 years | ||
Other | |||
Other Intangible Assets [Line Items] | |||
Amortization of other intangible assets | $ 2,714 | 3,127 | |
Other | Minimum | |||
Other Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 5 years | ||
Other | Maximum | |||
Other Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 25 years | ||
Amortized using the pattern of economic benefit method | |||
Other Intangible Assets [Line Items] | |||
Amortization of other intangible assets | $ 19,500 | $ 19,700 | $ 17,700 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles Total Estimated Amortization Expense of Other Intangibles for Next Five Fiscal Years (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 25,356 |
2021 | 24,747 |
2022 | 24,153 |
2023 | 23,586 |
2024 | $ 22,787 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Employee benefits, payroll and related taxes | $ 82,028 | $ 77,814 |
Wodgina Project acquisition consideration obligation | 260,686 | 0 |
Other | 210,446 | 179,509 |
Total | $ 553,160 | $ 257,323 |
Accrued Expenses Accrued Expens
Accrued Expenses Accrued Expenses Footnote (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Concentration Risk [Line Items] | ||||
Acquisition and integration related costs | $ 20,684 | $ 19,377 | $ 33,954 | |
Total Current Liabilities | ||||
Concentration Risk [Line Items] | ||||
Benchmark for individual components of accrued expenses, percentage | 5.00% | |||
Lithium Hydroxide Conversion Assets | ||||
Concentration Risk [Line Items] | ||||
Ownership percentage | 40.00% | 40.00% | ||
Mineral Resources Limited Wodgina Project | ||||
Concentration Risk [Line Items] | ||||
Ownership percentage | 60.00% | 60.00% | ||
Stamp duty tax | Mineral Resources Limited Wodgina Project | ||||
Concentration Risk [Line Items] | ||||
Acquisition and integration related costs | $ 64,800 |
Long-Term Debt Schedule of Debt
Long-Term Debt Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 3,050,257 | $ 1,705,210 |
Current portion of long-term debt | 187,336 | 307,294 |
Long-term debt | 2,862,921 | 1,397,916 |
1.125% Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | 5,659 | 0 |
1.625% Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | 5,696 | 0 |
1.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | 1,831 | 2,841 |
3.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | 3,533 | 0 |
4.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | 2,398 | 2,884 |
4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | 0 | 589 |
5.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | 3,850 | 4,004 |
Unsecured Debt | 1.125% Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 549,241 | 0 |
Unsecured Debt | 1.625% Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 549,204 | 0 |
Unsecured Debt | Floating Rate Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 198,831 | 0 |
Senior Notes | 1.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 434,241 | 444,155 |
Senior Notes | 3.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 296,467 | 0 |
Senior Notes | 4.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 422,603 | 422,116 |
Senior Notes | 4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 0 | 174,626 |
Senior Notes | 5.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 346,150 | 345,996 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 186,700 | 306,606 |
Variable-rate foreign bank loans | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 7,296 | 7,216 |
Finance lease obligations | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 59,524 | $ 4,495 |
Long-Term Debt Interest Rates (
Long-Term Debt Interest Rates (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Nov. 25, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 18, 2014 | Dec. 08, 2014 | Nov. 24, 2014 |
1.125% Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized discount and debt issuance costs | $ 5,659 | $ 0 | |||||
Debt instrument, interest rate | 1.125% | 1.125% | 1.125% | ||||
1.625% Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized discount and debt issuance costs | $ 5,696 | $ 0 | |||||
Debt instrument, interest rate | 1.625% | 1.625% | 1.625% | ||||
1.875% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized discount and debt issuance costs | $ 1,831 | $ 2,841 | |||||
Debt instrument, interest rate | 1.875% | 1.875% | 1.875% | 1.875% | 1.875% | ||
3.45% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized discount and debt issuance costs | $ 3,533 | $ 0 | |||||
Debt instrument, interest rate | 3.45% | 3.45% | 3.45% | ||||
4.15% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized discount and debt issuance costs | $ 2,398 | $ 2,884 | |||||
Debt instrument, interest rate | 4.15% | 4.15% | 4.15% | ||||
4.50% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized discount and debt issuance costs | $ 0 | $ 589 | |||||
Debt instrument, interest rate | 4.50% | 4.50% | 4.50% | ||||
5.45% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized discount and debt issuance costs | $ 3,850 | $ 4,004 | |||||
Debt instrument, interest rate | 5.45% | 5.45% | 5.45% | ||||
Floating Rate Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized debt issuance costs | $ 1,169 | $ 0 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) € in Millions | Aug. 14, 2019USD ($) | Oct. 15, 2014USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Nov. 25, 2019USD ($) | Oct. 31, 2019USD ($) | Dec. 18, 2014 | Dec. 08, 2014EUR (€) | Nov. 24, 2014USD ($) | Jan. 22, 2014USD ($)payment | May 29, 2013USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Aggregate annual maturities of long-term debt, 2020 | $ 187,300,000 | |||||||||||
Aggregate annual maturities of long-term debt, 2021 | 436,100,000 | |||||||||||
Aggregate annual maturities of long-term debt, 2022 | 200,000,000 | |||||||||||
Aggregate annual maturities of long-term debt, 2023 | 0 | |||||||||||
Aggregate annual maturities of long-term debt, 2024 | 425,000,000 | |||||||||||
Aggregate annual maturities of long-term debt, thereafter | 1,826,000,000 | |||||||||||
Loss on early extinguishment of debt | 4,829,000 | $ 0 | $ 52,801,000 | |||||||||
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months | 3,300,000 | |||||||||||
Revolving credit facility, remaining borrowings available | $ 1,010,000,000 | |||||||||||
1.125% Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount of debt | $ 500,000,000 | |||||||||||
Debt instrument, interest rate | 1.125% | 1.125% | 1.125% | |||||||||
Interest rate of debt, effective percentage | 1.30% | |||||||||||
1.625% Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount of debt | $ 500,000,000 | |||||||||||
Debt instrument, interest rate | 1.625% | 1.625% | 1.625% | |||||||||
Interest rate of debt, effective percentage | 1.74% | |||||||||||
3.45% Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount of debt | $ 300,000,000 | |||||||||||
Debt instrument, interest rate | 3.45% | 3.45% | 3.45% | |||||||||
Interest rate of debt, effective percentage | 3.58% | |||||||||||
Floating Rate Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount of debt | $ 200,000,000 | |||||||||||
Interest rate margin | 10500.00% | |||||||||||
Interest rate during period | 2.9595% | |||||||||||
4.50% Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, interest rate | 4.50% | 4.50% | 4.50% | |||||||||
1.875% Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount of debt | € | € 393 | |||||||||||
Debt instrument, interest rate | 1.875% | 1.875% | 1.875% | 1.875% | 1.875% | |||||||
Interest rate of debt, effective percentage | 2.10% | |||||||||||
Other comprehensive income (loss) before reclassifications, before tax | $ 8,400,000 | $ 25,800,000 | $ (41,800,000) | |||||||||
4.15% Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount of debt | $ 425,000,000 | |||||||||||
Debt instrument, interest rate | 4.15% | 4.15% | 4.15% | |||||||||
Interest rate of debt, effective percentage | 5.06% | |||||||||||
Number of semi annual coupon payments | payment | 20 | |||||||||||
5.45% Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount of debt | $ 350,000,000 | |||||||||||
Debt instrument, interest rate | 5.45% | 5.45% | 5.45% | |||||||||
Interest rate of debt, effective percentage | 5.50% | |||||||||||
Commercial Paper | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Commercial paper notes | $ 186,700,000 | |||||||||||
Weighted-average interest rate | 2.01% | |||||||||||
Debt instrument weighted average maturity period | 39 days | |||||||||||
Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility, maximum borrowing capacity | $ 307,000,000 | |||||||||||
Credit facility, borrowings outstanding | $ 7,300,000 | $ 7,200,000 | ||||||||||
Average interest rate on borrowings | 0.36% | 0.69% | 1.26% | |||||||||
Maximum | Commercial Paper | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Commercial paper notes | $ 750,000,000 | |||||||||||
Debt instrument, maturity term | 397 days | |||||||||||
2019 Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin | 1.125% | |||||||||||
Repayment of 2019 Credit Facility | $ 1,000,000,000 | |||||||||||
Credit facility, maximum borrowing capacity | $ 1,200,000,000 | $ 200,000,000 | ||||||||||
Credit facility, borrowings outstanding | $ 0 | $ 1,000,000,000 | ||||||||||
2019 Credit Facility | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin | 0.875% | |||||||||||
2019 Credit Facility | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin | 1.625% | |||||||||||
2018 Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin | 1.125% | |||||||||||
Credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||||||||||
Credit facility, borrowings outstanding | $ 0 | |||||||||||
2018 Credit Agreement | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin | 0.91% | |||||||||||
2018 Credit Agreement | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate margin | 1.50% | |||||||||||
Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility, maximum borrowing capacity | 1,200,000,000 | |||||||||||
Debt covenant ratio, maximum debt to EBITDA | 3.50 | |||||||||||
Debt covenant | 50000000000.00% | |||||||||||
Interest Rate Swap | JP Morgan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Derivative, notional amount | $ 325,000,000 | |||||||||||
Payment for settlement of interest rate swap | $ 33,400,000 | |||||||||||
Commercial Paper | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of commercial paper | 370,000,000 | |||||||||||
Senior Notes | 4.50% Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of debt | 175,200,000 | |||||||||||
Domestic Financial Institution Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility, borrowings outstanding | 0 | $ 0 | ||||||||||
Foreign Credit Line U S Dollar Euro Denominated Borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility, borrowings outstanding | 0 | 0 | ||||||||||
Other Foreign Credit Lines | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility, borrowings outstanding | $ 0 | $ 0 |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefits Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Plans, as well as Summary of Significant Assumptions for Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plans | ||||
Change in plan assets: | ||||
Fair value of plan assets, beginning balance | $ 583,659 | |||
Fair value of plan assets, Ending Balance | 638,149 | $ 583,659 | ||
Other Postretirement Benefits | ||||
Change in benefit obligations: | ||||
Benefit obligation, beginning balance | 50,390 | 56,647 | ||
Service cost | 98 | 117 | $ 121 | |
Interest cost | 2,197 | 2,168 | 2,340 | |
Actuarial loss (gain) | 5,445 | (5,661) | ||
Benefits paid | (3,041) | (2,881) | ||
Benefit obligation, ending balance | 55,089 | 50,390 | 56,647 | |
Change in plan assets: | ||||
Fair value of plan assets, beginning balance | 0 | 834 | ||
Actual return on plan assets | 0 | (253) | ||
Employer contributions | 3,041 | 2,300 | ||
Benefits paid | (3,041) | (2,881) | ||
Fair value of plan assets, Ending Balance | 0 | 0 | 834 | |
Funded status | (55,089) | (50,390) | ||
Current liabilities (accrued expenses) | (4,190) | (4,233) | ||
Noncurrent liabilities (pension benefits) | (50,899) | (46,157) | ||
Net pension liability | $ (55,089) | $ (50,390) | ||
Weighted-average assumptions used to determine benefit obligations at December 31: | ||||
Discount rate | 3.53% | 4.55% | ||
Rate of compensation increase | 3.50% | 3.50% | ||
U.S. Plans | Pension Plans | ||||
Change in benefit obligations: | ||||
Benefit obligation, beginning balance | $ 635,866 | $ 685,963 | ||
Service cost | 730 | 1,043 | 985 | |
Interest cost | 28,199 | 26,804 | 28,614 | |
Plan amendments | 0 | 0 | ||
Actuarial loss (gain) | 56,108 | (36,844) | ||
Benefits paid | (42,183) | (41,100) | ||
Employee contributions | 0 | 0 | ||
Foreign exchange gain | 0 | 0 | ||
Settlements/curtailments | 0 | 0 | ||
Other | 0 | 0 | ||
Benefit obligation, ending balance | 678,720 | 635,866 | 685,963 | |
Change in plan assets: | ||||
Fair value of plan assets, beginning balance | 513,075 | 580,396 | ||
Actual return on plan assets | 82,926 | (28,457) | ||
Employer contributions | 2,865 | 2,236 | ||
Benefits paid | (42,183) | (41,100) | ||
Employee contributions | 0 | 0 | ||
Foreign exchange gain (loss) | 0 | 0 | ||
Settlements/curtailments | 0 | 0 | ||
Other | 0 | 0 | ||
Fair value of plan assets, Ending Balance | 556,683 | 513,075 | $ 580,396 | |
Funded status | (122,037) | (122,791) | ||
Current liabilities (accrued expenses) | (1,224) | (1,342) | ||
Noncurrent liabilities (pension benefits) | (120,813) | (121,449) | ||
Net pension liability | (122,037) | (122,791) | ||
Prior service benefit | 0 | 0 | ||
Net amount recognized | $ 0 | $ 0 | ||
Weighted-average assumptions used to determine benefit obligations at December 31: | ||||
Discount rate | 3.56% | 4.59% | 4.03% | 4.43% |
Rate of compensation increase | 0.00% | 0.00% | ||
Foreign Plans | Pension Plans | ||||
Change in benefit obligations: | ||||
Benefit obligation, beginning balance | $ 240,303 | $ 275,006 | ||
Service cost | 3,680 | 3,919 | $ 2,547 | |
Interest cost | 4,998 | 5,144 | 5,128 | |
Plan amendments | 0 | 233 | ||
Actuarial loss (gain) | 21,588 | (17,885) | ||
Benefits paid | (10,088) | (9,974) | ||
Employee contributions | 133 | 182 | ||
Foreign exchange gain | (1,772) | (12,632) | ||
Settlements/curtailments | (398) | (3,628) | ||
Other | (70) | (62) | ||
Benefit obligation, ending balance | 258,374 | 240,303 | 275,006 | |
Change in plan assets: | ||||
Fair value of plan assets, beginning balance | 70,584 | 79,478 | ||
Actual return on plan assets | 9,417 | (1,593) | ||
Employer contributions | 10,572 | 10,700 | ||
Benefits paid | (10,088) | (9,974) | ||
Employee contributions | 133 | 182 | ||
Foreign exchange gain (loss) | 1,316 | (4,519) | ||
Settlements/curtailments | (398) | (3,628) | ||
Other | (70) | (62) | ||
Fair value of plan assets, Ending Balance | 81,466 | 70,584 | $ 79,478 | |
Funded status | (176,908) | (169,719) | ||
Current liabilities (accrued expenses) | (5,648) | (5,772) | ||
Noncurrent liabilities (pension benefits) | (171,260) | (163,947) | ||
Net pension liability | (176,908) | (169,719) | ||
Prior service benefit | 224 | (409) | ||
Net amount recognized | $ 224 | $ (409) | ||
Weighted-average assumptions used to determine benefit obligations at December 31: | ||||
Discount rate | 1.33% | 2.15% | 1.94% | 2.00% |
Rate of compensation increase | 3.72% | 3.63% |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefits Components of Pension and Postretirement Benefits Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted-average assumption percentages: | |||
Expected return on plan assets | 6.72% | 6.73% | 6.73% |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 98 | $ 117 | $ 121 |
Interest cost | 2,197 | 2,168 | 2,340 |
Expected return on assets | 0 | (7) | (110) |
Actuarial loss (gain) | 5,449 | (5,400) | 2,014 |
Amortization of prior service benefit | 0 | (48) | (95) |
Total net pension benefits cost (credit) | $ 7,744 | $ (3,170) | $ 4,270 |
Weighted-average assumption percentages: | |||
Discount rate | 4.55% | 3.99% | 4.35% |
Expected return on plan assets | 0.00% | 7.00% | 7.00% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
U.S. Plans | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 730 | $ 1,043 | $ 985 |
Interest cost | 28,199 | 26,804 | 28,614 |
Expected return on assets | (33,926) | (38,621) | (36,243) |
Actuarial loss (gain) | 7,106 | 30,234 | (13,910) |
Amortization of prior service benefit | 0 | 60 | 75 |
Total net pension benefits cost (credit) | $ 2,109 | $ 19,520 | $ (20,479) |
Weighted-average assumption percentages: | |||
Expected return on plan assets | 6.89% | 6.89% | 6.89% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Foreign Plans | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 3,680 | $ 3,919 | $ 2,547 |
Interest cost | 4,998 | 5,144 | 5,128 |
Expected return on assets | (3,837) | (4,204) | (4,441) |
Actuarial loss (gain) | 16,784 | (10,833) | 483 |
Amortization of prior service benefit | 37 | 34 | 56 |
Total net pension benefits cost (credit) | $ 21,662 | $ (5,940) | $ 3,773 |
Weighted-average assumption percentages: | |||
Expected return on plan assets | 5.51% | 5.52% | 6.16% |
Rate of compensation increase | 3.63% | 3.18% | 3.18% |
Pension Plans and Other Postr_5
Pension Plans and Other Postretirement Benefits Financial Assets Accounted for at Fair Value on Recurring Basis (Details) - Pension Plans - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 638,149 | $ 583,659 |
Domestic Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 119,842 | 113,355 |
International Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 126,828 | 114,554 |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 317,667 | 254,437 |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29,326 | |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 35 | |
Quoted Prices in Active Markets for Identical Items (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 493,267 | 450,766 |
Quoted Prices in Active Markets for Identical Items (Level 1) | Domestic Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 118,255 | 111,665 |
Quoted Prices in Active Markets for Identical Items (Level 1) | International Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 95,246 | 90,651 |
Quoted Prices in Active Markets for Identical Items (Level 1) | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 279,731 | 219,124 |
Quoted Prices in Active Markets for Identical Items (Level 1) | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29,326 | |
Quoted Prices in Active Markets for Identical Items (Level 1) | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 35 | |
Quoted Prices in Active Markets for Similar Items (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 71,105 | 60,906 |
Quoted Prices in Active Markets for Similar Items (Level 2) | Domestic Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1,587 | 1,690 |
Quoted Prices in Active Markets for Similar Items (Level 2) | International Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 31,582 | 23,903 |
Quoted Prices in Active Markets for Similar Items (Level 2) | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 37,936 | 35,313 |
Quoted Prices in Active Markets for Similar Items (Level 2) | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Quoted Prices in Active Markets for Similar Items (Level 2) | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable Inputs (Level 3) | Domestic Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable Inputs (Level 3) | International Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable Inputs (Level 3) | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable Inputs (Level 3) | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable Inputs (Level 3) | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Absolute Return Measured at Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 73,777 | $ 71,987 |
Pension Plans and Other Postr_6
Pension Plans and Other Postretirement Benefits Defined Benefit Plan Asset Target Allocation (Details) - Pension Plans | Dec. 31, 2019 |
Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocations percentage of assets | 42.00% |
Fixed income | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocations percentage of assets | 49.00% |
Absolute return | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocations percentage of assets | 9.00% |
Pension Plans and Other Postr_7
Pension Plans and Other Postretirement Benefits Current Forecast of Benefit Payments which Reflect Expected Future Service (Details) $ in Millions | Dec. 31, 2019USD ($) |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 4.2 |
2021 | 4 |
2022 | 3.9 |
2023 | 3.9 |
2024 | 3.8 |
2025-2029 | 17.5 |
U.S. Plans | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 42.3 |
2021 | 47.8 |
2022 | 48.4 |
2023 | 48.9 |
2024 | 49 |
2025-2029 | 240.9 |
Foreign Plans | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 10.6 |
2021 | 10 |
2022 | 9.5 |
2023 | 12.3 |
2024 | 10.4 |
2025-2029 | $ 54.6 |
Pension Plans and Other Postr_8
Pension Plans and Other Postretirement Benefits - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation for defined benefit pension plans | $ 927,600 | $ 867,400 | |||
Weighted-average expected rate of return on plan assets | 6.72% | 6.73% | 6.73% | ||
Actual rate of return | 15.82% | (4.55%) | 14.31% | ||
Percentage of defined benefit plan assets in U.S. and U.K. | 97.00% | ||||
Change in percentage of broad asset class targets | 10.00% | ||||
Pension and postretirement contributions | $ 16,478 | $ 15,236 | $ 13,341 | ||
Assumed rate of increase in the pre-65 per capita cost of covered health care benefits for U.S. retirees | 0.00% | ||||
Assumed rate of increase in the post-65 per capita cost of covered health care benefits for U.S. retirees | 0.00% | ||||
Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected contributions to benefit plans in 2020 | $ 13,000 | ||||
Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Weighted-average expected rate of return on plan assets | 0.00% | 7.00% | 7.00% | ||
Discount rate | 3.53% | 4.55% | |||
Expected premium contribution | $ 4,000 | ||||
Projected benefit obligation recognized | 55,089 | $ 50,390 | $ 56,647 | ||
Supplemental Executive Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected contributions to benefit plans in 2020 | 1,200 | ||||
Costs (credits) related to supplemental executive retirement plan | 2,200 | (800) | $ 2,600 | ||
Projected benefit obligation recognized | $ 21,300 | $ 21,900 | |||
Foreign Plans | Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Weighted-average expected rate of return on plan assets | 5.51% | 5.52% | 6.16% | ||
Discount rate | 1.33% | 2.15% | 1.94% | 2.00% | |
Projected benefit obligation recognized | $ 258,374 | $ 240,303 | $ 275,006 | ||
Foreign Plans | Employee Savings Plan | Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, employer contributions | $ 9,700 | $ 10,200 | $ 9,900 | ||
Foreign Plans | Subsequent Event | Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Weighted-average expected rate of return on plan assets | 4.07% | ||||
U.S. Plans | Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Weighted-average expected rate of return on plan assets | 6.89% | 6.89% | 6.89% | ||
Discount rate | 3.56% | 4.59% | 4.03% | 4.43% | |
Projected benefit obligation recognized | $ 678,720 | $ 635,866 | $ 685,963 | ||
Defined contribution plan, employer matching contribution percentage | 5.00% | ||||
U.S. Plans | 2004 Defined Contribution Plan | Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, employer contributions | $ 11,500 | 11,800 | 10,300 | ||
U.S. Plans | Employee Savings Plan | Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, employer contributions | $ 12,600 | $ 12,700 | $ 11,300 | ||
U.S. Plans | Subsequent Event | Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Weighted-average expected rate of return on plan assets | 6.88% |
Pension Plans and Other Postr_9
Pension Plans and Other Postretirement Benefits Multiemployer Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Multiemployer Plans [Line Items] | |||
Multiemployer plan minimum level of funding for highest funding zone status | 80.00% | ||
Multiemployer plan, period contributions | $ 1.4 | $ 1.5 | $ 1.5 |
Minimum | |||
Multiemployer Plans [Line Items] | |||
Contributions to multiemployer plan, percentage of total contributions to plan | 5.00% | ||
Financial Improvement Plan | Selling, general and administrative expenses | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan, period contributions | $ 1.8 | $ 2.3 | $ 3.3 |
Other Noncurrent Liabilities (D
Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities, Noncurrent [Abstract] | |||
Transition tax on foreign earnings | $ 303,490 | $ 317,745 | |
Wodgina Project acquisition consideration obligation | 120,800 | 0 | |
Operating leases | 114,686 | 0 | |
Liabilities related to uncertain tax positions | 21,169 | 22,877 | |
Executive deferred compensation plan obligation | 28,715 | 26,292 | |
Environmental liabilities | 33,058 | 40,376 | $ 37,518 |
Asset retirement obligations | 55,848 | 41,489 | |
Tax indemnification liability | 30,993 | 45,347 | |
Other | 45,777 | 32,816 | |
Total | $ 754,536 | $ 526,942 |
Other Noncurrent Liabilities Fo
Other Noncurrent Liabilities Footnote (Details) | Oct. 31, 2019 | Dec. 31, 2019 |
Total liabilities | ||
Concentration Risk [Line Items] | ||
Benchmark for individual components of noncurrent liabilities, percentage | 5.00% | |
Lithium Hydroxide Conversion Assets | ||
Concentration Risk [Line Items] | ||
Ownership percentage | 40.00% | 40.00% |
Commitments and Contingencies A
Commitments and Contingencies Activity in Recorded Environmental Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||||
Balance, beginning of year | $ 49,569 | $ 39,808 | $ 34,919 | |||
Expenditures | (6,037) | (6,885) | (1,818) | |||
Accretion of discount | 1,030 | 1,283 | 896 | |||
Additions and changes in estimates | 1,129 | 17,039 | 3,344 | |||
Foreign currency translation adjustments and other | (3,099) | (1,676) | 2,467 | |||
Balance, end of year | $ 49,569 | $ 39,808 | $ 34,919 | $ 42,592 | $ 49,569 | $ 39,808 |
Less amounts recorded in Accrued expenses | 9,534 | 9,193 | 2,290 | |||
Amounts reported in Other noncurrent liabilities | $ 33,058 | $ 40,376 | $ 37,518 |
Commitments and Contingencies_2
Commitments and Contingencies Activity in Recorded Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Balance, beginning of year | $ 41,489 | $ 40,450 | ||
Acquisitions | 4,650 | 0 | ||
Additions and changes in estimates | 14,734 | 740 | ||
Accretion of discount | 2,035 | 1,500 | ||
Liabilities settled | (3,289) | (786) | ||
Foreign currency translation adjustments and other | 627 | (415) | ||
Balance, end of year | $ 41,489 | $ 40,450 | $ 60,246 | $ 41,489 |
Less amounts reported in Accrued expenses | 4,398 | 0 | ||
Amounts reported in Other noncurrent liabilities | $ 55,848 | $ 41,489 |
Commitments and Contingencies L
Commitments and Contingencies Letters of Credit and Guarantee Agreements (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 49,152 |
2021 | 11,383 |
2022 | 1,303 |
2023 | 1,190 |
2024 | 0 |
Thereafter | $ 19,305 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Line Items] | |||
Environmental remediation liabilities- discounted | $ 35,600 | $ 40,400 | |
Accrual for environmental loss contingencies- weighted-average discount rate | 3.70% | 3.70% | |
Environmental remediation liabilities- undiscounted | $ 69,200 | $ 74,500 | |
Additions and changes in estimates | 14,734 | 740 | |
Asset retirement obligation charges | 3,600 | ||
Legal accrual | 27,027 | ||
Tax indemnification liability | 30,993 | $ 45,347 | |
Minimum | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Potential revision on future environmental remediation costs before tax | 10,000 | ||
Maximum | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Potential revision on future environmental remediation costs before tax | 30,000 | ||
Other expenses, net | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Asset retirement obligation charges | 3,600 | $ 3,200 | |
2014 Sales Contract | Other expenses, net | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Legal accrual | 16,200 | ||
Guarantee From Previously Disposed Business | Other expenses, net | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Legal accrual | 10,800 | ||
Foreign | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Additions and changes in estimates | $ 11,100 |
Stock-based Compensation Expe_3
Stock-based Compensation Expense Fixed-Price Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Outstanding Shares,Beginning Balance (in shares) | 1,316,733 | ||
Granted (in shares) | 95,639 | 63,259 | 82,204 |
Exercised (in shares) | (161,909) | ||
Forfeited (in shares) | (5,932) | ||
Outstanding Shares, Ending Balance (in shares) | 1,244,531 | 1,316,733 | |
Exercisable, Ending Balance (in shares) | 980,865 | ||
Weighted-Average Exercise Price | |||
Outstanding Weighted-Average Exercise Price, Beginning Balance (in dollars per share) | $ 59.55 | ||
Granted (in dollars per share) | 91 | ||
Exercised (in dollars per share) | 29.73 | ||
Forfeited (in dollars per share) | 95.47 | ||
Outstanding Weighted-Average Exercise (in dollars per share) Price, Ending Balance | 65.67 | $ 59.55 | |
Exercisable Weighted-Average Exercise Price, Ending Balance (in dollars per share) | $ 59.47 | ||
Weighted-Average Remaining Contractual Term (Years) | |||
Weighted-Averaged Remaining Contractual Term, Beginning Balance | 4 years 2 months 12 days | 4 years 3 months 18 days | |
Weighted-Averaged Remaining Contractual Term, Ending Balance | 4 years 2 months 12 days | 4 years 3 months 18 days | |
Exercisable Weighted-Average Remaining Contractual Term, Ending Balance | 3 years 3 months 18 days | ||
Aggregate Intrinsic Value | |||
Outstanding Aggregate Intrinsic Value, Beginning Balance | $ 26,438 | ||
Outstanding Aggregate Intrinsic Value, Ending Balance | 14,593 | $ 26,438 | |
Exercisable Aggregate Intrinsic Value, Ending Balance | $ 13,583 |
Stock-based Compensation Expe_4
Stock-based Compensation Expense Weighted-Average Assumptions used to Estimate Fair Value of Each Option Granted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.58% | 1.44% | 1.56% |
Volatility | 32.50% | 32.48% | 32.70% |
Average expected life (years) | 6 years | 6 years | 6 years |
Risk-free interest rate | 2.81% | 3.06% | 2.51% |
Fair value of options granted (in dollars per share) | $ 27.71 | $ 37.35 | $ 27.99 |
Performance Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 30.11% | 29.92% | 30.34% |
Risk-free interest rate | 2.43% | 2.36% | 1.34% |
Stock-based Compensation Expe_5
Stock-based Compensation Expense Activity in Performance Unit Awards (Details) - Performance Unit Awards | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Nonvested, beginning of period (in shares) | shares | 317,437 |
Granted (in shares) | shares | 100,288 |
Vested (in shares) | shares | (139,034) |
Forfeited (in shares) | shares | (18,958) |
Nonvested, end of period (in shares) | shares | 259,733 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning of period (in dollars per share) | $ / shares | $ 97.39 |
Granted (in dollars per share) | $ / shares | 107.68 |
Vested (in dollars per share) | $ / shares | 66.93 |
Forfeited (in dollars per share) | $ / shares | 124.45 |
Nonvested, end of period (in dollars per share) | $ / shares | $ 115.69 |
Stock-based Compensation Expe_6
Stock-based Compensation Expense Activity in Non-Performance Based Restricted Stock Awards (Details) - Restricted Stock And Restricted Stock Units | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Nonvested, beginning of period (in shares) | shares | 257,518 |
Granted (in shares) | shares | 131,365 |
Vested (in shares) | shares | (89,548) |
Forfeited (in shares) | shares | (26,775) |
Nonvested, end of period (in shares) | shares | 272,560 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning of period (in dollars per share) | $ / shares | $ 85.44 |
Granted (in dollars per share) | $ / shares | 79.27 |
Vested (in dollars per share) | $ / shares | 73.61 |
Forfeited (in dollars per share) | $ / shares | 89.23 |
Nonvested, end of period (in dollars per share) | $ / shares | $ 85.98 |
Stock-based Compensation Expe_7
Stock-based Compensation Expense - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation [Line Items] | |||
Common stock authorized for non-employee directors (in shares) | 150,000,000 | 150,000,000 | |
Stock-based compensation | $ 21,284,000 | $ 18,506,000 | $ 16,505,000 |
Stock-based compensation and other | 19,680,000 | 15,228,000 | 19,404,000 |
Tax benefits recognized related to stock based compensation | $ 3,200,000 | $ 2,600,000 | $ 7,000,000 |
Stock options granted during the period (in shares) | 95,639 | 63,259 | 82,204 |
Proceeds from stock option exercised | $ 4,814,000 | $ 3,633,000 | $ 8,238,000 |
Minimum | |||
Share Based Compensation [Line Items] | |||
Property, plant and equipment, useful life | 2 years | ||
Finite-lived intangible assets, useful life | 5 years | ||
Maximum | |||
Share Based Compensation [Line Items] | |||
Property, plant and equipment, useful life | 60 years | ||
Finite-lived intangible assets, useful life | 25 years | ||
Stock Incentive Plan Twenty Seventeen | |||
Share Based Compensation [Line Items] | |||
Shares available for grant (in shares) | 4,005,657 | ||
Stock Incentive Plan Twenty Seventeen | Maximum | |||
Share Based Compensation [Line Items] | |||
Number of shares available for issuance under incentive plan (in shares) | 4,500,000 | ||
Non Employee Directors, Plan | |||
Share Based Compensation [Line Items] | |||
Common stock authorized for non-employee directors (in shares) | 500,000 | ||
Shares available for grant (in shares) | 360,575 | ||
Non Employee Directors, Plan | Maximum | |||
Share Based Compensation [Line Items] | |||
Fair market value of shares issued per director per year | $ 150,000 | ||
Stock Options | |||
Share Based Compensation [Line Items] | |||
Share-based awards vesting period | 3 years | ||
Stock options, term | 10 years | ||
Intrinsic value of stock options exercised | $ 8,100,000 | 6,200,000 | 15,600,000 |
Compensation cost not yet recognized for nonvested share | $ 2,800,000 | ||
Remaining weighted average period for recognition of compensation cost years | 1 year 9 months 18 days | ||
Proceeds from stock option exercised | $ 4,800,000 | ||
Tax benefit from stock option exercised | 1,900,000 | ||
Restricted Stock And Restricted Stock Units | |||
Share Based Compensation [Line Items] | |||
Compensation cost not yet recognized for nonvested share | $ 12,700,000 | ||
Remaining weighted average period for recognition of compensation cost years | 2 years 1 month 6 days | ||
Weighted average grant date fair value | $ 10,400,000 | 10,900,000 | 8,200,000 |
Weighted average fair value of awards vested in period | $ 7,500,000 | 4,900,000 | 3,100,000 |
Restricted Stock And Restricted Stock Units | Minimum | |||
Share Based Compensation [Line Items] | |||
Share-based awards vesting period | 1 year | ||
Restricted Stock And Restricted Stock Units | Maximum | |||
Share Based Compensation [Line Items] | |||
Share-based awards vesting period | 5 years | ||
Performance Unit Awards | |||
Share Based Compensation [Line Items] | |||
Compensation cost not yet recognized for nonvested share | $ 11,700,000 | ||
Remaining weighted average period for recognition of compensation cost years | 1 year 4 months 24 days | ||
Weighted average grant date fair value | $ 10,800,000 | 10,900,000 | 9,600,000 |
Weighted average fair value of awards vested in period | $ 11,700,000 | $ 20,000,000 | $ 11,900,000 |
Number of common stock share for each performance unit (in shares) | 1 | ||
Performance Unit Awards | Minimum | |||
Share Based Compensation [Line Items] | |||
Performance unit award payout percentage | 0.00% | ||
Specific performance criteria period | 1 year | ||
Performance Unit Awards | Maximum | |||
Share Based Compensation [Line Items] | |||
Performance unit award payout percentage | 200.00% | ||
Specific performance criteria period | 3 years | ||
Two Year Measurement Period | |||
Share Based Compensation [Line Items] | |||
Percentage of award distributed | 50.00% | ||
One Year Vesting Period Thereafter | |||
Share Based Compensation [Line Items] | |||
Percentage of award distributed | 50.00% | ||
Accrued expenses | Chemetall Surface Treatment | |||
Share Based Compensation [Line Items] | |||
Stock-based compensation and other | $ 700,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income Components and Activity in Accumulated Other Comprehensive (Loss) Income Net of Deferred Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 3,759,108 | $ 3,817,696 | $ 3,942,604 | |
Other comprehensive (loss) income before reclassifications | (48,167) | (134,563) | 185,612 | |
Amounts reclassified from accumulated other comprehensive loss | 2,647 | 9,368 | 2,019 | |
Total other comprehensive (loss) income, net of tax | (45,520) | (125,195) | 187,631 | |
Other comprehensive loss attributable to noncontrolling interests | 467 | 181 | (887) | |
Ending balance | 4,093,580 | 3,759,108 | 3,817,696 | |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 2,566,050 | 2,035,163 | 2,121,931 | |
Ending balance | 2,943,478 | 2,566,050 | 2,035,163 | |
Foreign Currency Translation | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (407,646) | (257,569) | (484,121) | |
Other comprehensive (loss) income before reclassifications | (62,031) | (150,258) | 227,439 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | |
Total other comprehensive (loss) income, net of tax | (62,031) | (150,258) | 227,439 | |
Other comprehensive loss attributable to noncontrolling interests | 467 | 181 | (887) | |
Ending balance | (469,210) | (407,646) | (257,569) | |
Pension and Post-Retirement Benefits | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (159) | (21) | 76 | |
Other comprehensive (loss) income before reclassifications | 576 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 56 | (138) | (97) | |
Total other comprehensive (loss) income, net of tax | 632 | (138) | (97) | |
Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | |
Ending balance | 473 | (159) | (21) | |
Net Investment Hedge | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 72,337 | 46,551 | 88,378 | |
Other comprehensive (loss) income before reclassifications | 8,441 | 15,695 | (41,827) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 10,091 | 0 | |
Total other comprehensive (loss) income, net of tax | 8,441 | 25,786 | (41,827) | |
Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | |
Ending balance | 80,778 | 72,337 | 46,551 | |
Cash Flow Hedge | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 0 | 0 | 0 | |
Other comprehensive (loss) income before reclassifications | 4,847 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | |
Total other comprehensive (loss) income, net of tax | 4,847 | 0 | 0 | |
Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | |
Ending balance | 4,847 | 0 | 0 | |
Interest Rate Swap | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (15,214) | (14,629) | (16,745) | |
Other comprehensive (loss) income before reclassifications | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 2,591 | (585) | 2,116 | |
Total other comprehensive (loss) income, net of tax | 2,591 | (585) | 2,116 | |
Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | |
Ending balance | (12,623) | (15,214) | (14,629) | |
Accumulated Other Comprehensive (Loss) Income | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (350,682) | (225,668) | (412,412) | |
Total other comprehensive (loss) income, net of tax | (45,053) | (125,014) | 186,744 | |
Ending balance | $ (395,735) | $ (350,682) | $ (225,668) | |
Accounting Standards Update 2018-02 | Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cumulative effect of new accounting principle adopted | $ 6,900 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income Amount of Income Tax (Expense) Benefit Allocated to Component of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Foreign currency translation, Other comprehensive income (loss), before tax | $ (62,030) | $ (150,262) | $ 228,508 |
Foreign currency translation, Income tax (expense) benefit | (1) | 4 | (1,069) |
Foreign currency translation, Other comprehensive income (loss), net of tax | (62,031) | (150,258) | 227,439 |
Pension and other postretirement benefits, Other comprehensive (loss) income, before tax | 633 | (128) | (96) |
Pension and other postretirement benefits, Income tax expense | (1) | (10) | (1) |
Pension and other postretirement benefits, Other comprehensive (loss) income, net of tax | 632 | (138) | (97) |
Net investment hedge, Other comprehensive (loss) income, before tax | 10,867 | 20,424 | (65,958) |
Net investment hedge, Income tax benefit (expense) | (2,426) | 5,362 | 24,131 |
Net investment hedge, Other comprehensive (loss) income, net of tax | 8,441 | 25,786 | (41,827) |
Cash flow hedge, other comprehensive income (loss), before tax | 4,847 | 0 | 0 |
Cash flow hedge, other comprehensive income (loss), tax | 0 | 0 | 0 |
Cash flow hedge, other comprehensive income (loss), net of tax | 4,847 | 0 | 0 |
Interest rate swap, Other comprehensive income, before tax | 3,336 | 3,336 | 3,336 |
Interest rate swap, Income tax expense | (745) | (3,921) | (1,220) |
Interest rate swap, Other comprehensive income, net of tax | $ 2,591 | $ (585) | $ 2,116 |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income before income taxes and equity in net income of unconsolidated investments: | |||
Domestic | $ 190,195 | $ 223,702 | $ (8,293) |
Foreign | 372,755 | 570,999 | 455,091 |
Income before income taxes and equity in net income of unconsolidated investments | 562,950 | 794,701 | 446,798 |
Current income tax expense (benefit): | |||
Federal | 21,258 | (2,712) | 394,747 |
State | 5,453 | 6,793 | 323 |
Foreign | 47,056 | 91,581 | 78,688 |
Total | 73,767 | 95,662 | 473,758 |
Deferred income tax (benefit) expense: | |||
Federal | 13,255 | 15,573 | (58,640) |
State | (7,369) | 1,614 | (2,288) |
Foreign | 8,508 | 31,977 | 18,987 |
Total | 14,394 | 49,164 | (41,941) |
Total income tax expense | $ 88,161 | $ 144,826 | $ 431,817 |
Income Taxes Significant Differ
Income Taxes Significant Differences Between U.S. Federal Statutory Rate and Effective Income Tax Rate (Detail) | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||||
Federal statutory rate | 21.00% | 21.00% | 21.00% | 35.00% |
State taxes, net of federal tax benefit | (0.50%) | 0.90% | (0.50%) | |
Change in valuation allowance | 1.90% | 0.70% | (1.40%) | |
Impact of foreign earnings, net | (3.70%) | (0.30%) | (13.50%) | |
Global intangible low tax inclusion | 1.80% | 0.80% | 0.00% | |
Change in U.S. federal statutory rate | 0.00% | 0.10% | (14.00%) | |
Transition tax on deferred foreign earnings | 0 | (0.053) | 0.961 | |
Subpart F income | 0.60% | 0.90% | 2.00% | |
Undistributed earnings of foreign subsidiaries | 0.00% | 0.00% | (2.20%) | |
Stock-based compensation | (0.60%) | (0.70%) | (1.90%) | |
Depletion | (0.70%) | (0.60%) | (1.40%) | |
Revaluation of unrecognized tax benefits/reserve requirements | (2.70%) | 0.00% | (0.70%) | |
Other items, net | (1.40%) | 0.70% | (0.90%) | |
Effective income tax rate | 15.70% | 18.20% | 96.60% |
Income Taxes Significant Diff_2
Income Taxes Significant Differences Between U.S. Federal Statutory Rate and Effective Income Tax Rate Footnote (Detail) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Effective Tax Rates Line Items | ||||
Foreign income tax rate differential | 3.70% | 0.30% | 13.50% | |
Tax Cuts and Jobs Act provisional tax (benefit) expense | $ 0.4 | $ (62.3) | ||
Reduction in federal statutory rate | 21.00% | 21.00% | 21.00% | 35.00% |
Income tax expense related to transition tax on foreign earnings | $ 42.3 | $ 429.2 | ||
Jordan Bromine Company Limited | ||||
Schedule Of Effective Tax Rates Line Items | ||||
Foreign income tax rate differential | 8.00% | 3.30% | 8.90% | |
Change in valuation allowance, change in expected profitability | ||||
Schedule Of Effective Tax Rates Line Items | ||||
Change in valuation allowance | $ 2.1 | $ 1.5 | ||
Change in valuation allowance, foreign restructuring plan | ||||
Schedule Of Effective Tax Rates Line Items | ||||
Change in valuation allowance | $ 8.2 | $ 10.9 |
Income Taxes Deferred Income Ta
Income Taxes Deferred Income Tax Assets and Liabilities Recorded on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||||
Accrued employee benefits | $ 17,462 | $ 18,462 | ||
Operating loss carryovers | 1,134,410 | 1,210,377 | ||
Pensions | 64,230 | 61,308 | ||
Tax credit carryovers | 1,497 | 1,270 | ||
Other | 64,955 | 35,895 | ||
Gross deferred tax assets | 1,282,554 | 1,327,312 | ||
Valuation allowance | (1,148,268) | (1,213,750) | $ (458,288) | $ (69,900) |
Deferred tax assets | 134,286 | 113,562 | ||
Deferred tax liabilities: | ||||
Depreciation | (349,264) | (337,503) | ||
Intangibles | (88,934) | (88,871) | ||
Hedge of net investment of foreign subsidiary | (23,498) | (21,854) | ||
Other | (55,173) | (31,287) | ||
Deferred tax liabilities | (516,869) | (479,515) | ||
Deferred Tax Liabilities, Net | (382,583) | (365,953) | ||
Noncurrent deferred tax assets | 15,275 | 17,029 | ||
Noncurrent deferred tax liabilities | (397,858) | (382,982) | ||
Deferred Tax Liabilities, Net | $ 382,583 | $ 365,953 |
Income Taxes Changes in Balance
Income Taxes Changes in Balance of Deferred Tax Asset Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Tax Asset Valuation Allowance [Roll Forward] | |||
Beginning Balance | $ (1,213,750) | $ (458,288) | $ (69,900) |
Additions | (24,986) | (766,012) | (408,252) |
Deductions | 90,468 | 10,550 | 19,864 |
Ending Balance | $ (1,148,268) | $ (1,213,750) | $ (458,288) |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Total Gross Liability Related to Uncertain Tax Positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 19,742 | $ 21,438 | $ 25,384 |
Additions for tax positions related to prior years | 2,235 | 874 | 0 |
Reductions for tax positions related to prior years | 0 | 0 | (1,933) |
Additions for tax positions related to current year | 0 | 1,091 | 1,132 |
Lapses in statutes of limitations/settlements | (4,494) | (3,578) | (4,198) |
Foreign currency translation adjustment | 65 | (83) | 1,053 |
Ending Balance | $ 17,548 | $ 19,742 | $ 21,438 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Taxes [Line Items] | |||||
Net tax expense | $ 29,300 | $ 366,900 | |||
Reduction in federal statutory rate | 21.00% | 21.00% | 21.00% | 35.00% | |
Cumulative adjustments from adoption of income tax standard updates | $ (18,074) | ||||
Increase in valuation allowance | $ 24,986 | 766,012 | $ 408,252 | ||
Tax credit carryovers | 1,497 | 1,270 | |||
Valuation allowance on deferred tax asset | 1,148,268 | 1,213,750 | 458,288 | $ 69,900 | |
Cumulative undistributed earnings of foreign subsidiaries | 4,200,000 | ||||
Liabilities related to uncertain tax position | 21,169 | 22,877 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 3,700 | 3,200 | |||
Assets offsetting unrecognized tax benefits | 26,100 | 13,000 | |||
Unrecognized tax benefits net of offsetting assets | (8,600) | 6,700 | |||
Unrecognized tax benefits | 17,548 | 19,742 | $ 21,438 | $ 25,384 | |
Decrease in liability related to uncertain tax positions | 9,600 | ||||
Domestic Country | |||||
Income Taxes [Line Items] | |||||
Tax credit carryovers | 1,500 | ||||
Valuation allowance on deferred tax asset | 200 | ||||
Net operating loss carryovers | 200,300 | ||||
Operating loss carryover, valuation allowance | 63,600 | ||||
State and Local Jurisdiction | |||||
Income Taxes [Line Items] | |||||
Capital loss carryover, valuation allowance | 56,700 | ||||
Foreign Country | |||||
Income Taxes [Line Items] | |||||
Valuation allowance on deferred tax asset | 77,700 | ||||
Net operating loss carryovers | 4,520,000 | ||||
Operating loss carryover, valuation allowance | 4,490,000 | ||||
Change in Estimate, Foreign Net Operating Loss | |||||
Income Taxes [Line Items] | |||||
Increase in valuation allowance | $ 749,800 | ||||
2035 | Foreign Country | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryovers | 2,760,000 | ||||
Indefinite Life | Foreign Country | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryovers | $ 1,750,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Total long-term debt, excluding debt issuance costs | $ 3,069,417 | $ 1,712,003 |
Total long-term debt, fair value, excluding debt issuance costs | $ 3,173,341 | $ 1,731,271 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019AUD ($) | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Foreign currency forward contracts, assets | $ 7,401 | $ 431 | ||
Foreign currency forward contracts, liabilities | 3,613 | 0 | ||
Forward Contracts | Other, net | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Cash settlements | (23,600) | (25,200) | ||
Cash receipts | $ 9,400 | |||
Designated as Hedging Instrument | Forward Contracts | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Derivative, notional amount | 481,200 | $ 727.9 | ||
Fair value foreign currency forward contracts designated as hedging instruments, asset | 5,369 | 0 | ||
Fair value foreign currency forward contracts designated as hedging instruments, liabilities | 0 | 0 | ||
Recognized gains of foreign currency forward contracts designated as hedging instruments | 4,847 | 0 | 0 | |
Designated as Hedging Instrument | Forward Contracts | Other current assets | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value foreign currency forward contracts designated as hedging instruments, asset | 3,700 | |||
Designated as Hedging Instrument | Forward Contracts | Other assets | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value foreign currency forward contracts designated as hedging instruments, asset | 1,700 | |||
Not Designated as Hedging Instrument | Forward Contracts | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Derivative, notional amount | 1,150,000 | 626,500 | ||
Fair value foreign currency forward contracts not designated as hedging instruments, asset | 2,032 | 431 | ||
Fair value foreign currency forward contracts not designated as hedging instruments, liabilities | 3,613 | 0 | ||
Not Designated as Hedging Instrument | Forward Contracts | Other current assets | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value foreign currency forward contracts not designated as hedging instruments, asset | 2,000 | |||
Not Designated as Hedging Instrument | Forward Contracts | Accrued expenses | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value foreign currency forward contracts not designated as hedging instruments, liabilities | 3,600 | |||
Not Designated as Hedging Instrument | Forward Contracts | Other accounts receivable | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Fair value foreign currency forward contracts not designated as hedging instruments, asset | 400 | |||
Not Designated as Hedging Instrument | Forward Contracts | Other expenses, net | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Recognized (losses) gains of foreign currency forward contracts not designated as hedging instruments | $ (25,765) | $ (19,851) | $ 4,588 |
Fair Value Measurement Financia
Fair Value Measurement Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments under executive deferred compensation plan | $ 28,715 | $ 26,292 |
Private equity securities | 32 | 26 |
Private equity securities measured at net asset value | 4,890 | 7,195 |
Foreign currency forward contracts, assets | 7,401 | 431 |
Obligations under executive deferred compensation plan | 28,715 | 26,292 |
Foreign currency forward contracts, liabilities | 3,613 | 0 |
Quoted Prices in Active Markets for Identical Items (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments under executive deferred compensation plan | 28,715 | 26,292 |
Private equity securities | 32 | 26 |
Private equity securities measured at net asset value | 0 | |
Foreign currency forward contracts, assets | 0 | 0 |
Obligations under executive deferred compensation plan | 28,715 | 26,292 |
Foreign currency forward contracts, liabilities | 0 | |
Quoted Prices in Active Markets for Similar Items (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments under executive deferred compensation plan | 0 | 0 |
Private equity securities | 0 | 0 |
Private equity securities measured at net asset value | 0 | |
Foreign currency forward contracts, assets | 7,401 | 431 |
Obligations under executive deferred compensation plan | 0 | 0 |
Foreign currency forward contracts, liabilities | 3,613 | |
Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments under executive deferred compensation plan | 0 | 0 |
Private equity securities | 0 | 0 |
Private equity securities measured at net asset value | 0 | |
Foreign currency forward contracts, assets | 0 | 0 |
Obligations under executive deferred compensation plan | 0 | $ 0 |
Foreign currency forward contracts, liabilities | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - Unconsolidated Affiliates - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Sales to unconsolidated affiliates | $ 20,068 | $ 35,094 | $ 29,514 |
Purchases from unconsolidated affiliates | 210,351 | 256,701 | $ 209,266 |
Receivables from related parties | 7,163 | 14,348 | |
Payables to related parties | $ 35,502 | $ 68,357 |
Segment and Geographic Area I_3
Segment and Geographic Area Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment and Geographic Area I_4
Segment and Geographic Area Information Summarized Financial Information by Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 992,564 | $ 879,747 | $ 885,052 | $ 832,064 | $ 921,699 | $ 777,748 | $ 853,874 | $ 821,629 | $ 3,589,427 | $ 3,374,950 | $ 3,071,976 |
Adjusted EBITDA | 1,036,781 | 1,006,664 | 885,480 | ||||||||
Net income (loss) attributable to Albemarle Corporation | $ (90,391) | $ (155,070) | $ (154,198) | $ (133,569) | (129,596) | (129,745) | (302,461) | (131,760) | (533,228) | (693,562) | (54,850) |
Depreciation and amortization | 213,484 | 200,698 | 196,928 | ||||||||
Utilization of inventory markup | 23,095 | ||||||||||
Restructuring and other | 5,877 | 3,838 | 17,056 | ||||||||
Gain on sale of business | $ 8,277 | $ 0 | $ (218,705) | $ 0 | 0 | (210,428) | 0 | ||||
Gain on acquisition | 0 | 0 | (6,221) | ||||||||
Acquisition and integration related costs | 20,684 | 19,377 | 33,954 | ||||||||
Gain on sale of property | (14,411) | 0 | 0 | ||||||||
Interest and financing expenses | 57,695 | 52,405 | 115,350 | ||||||||
Income tax expense | 88,161 | 144,826 | 431,817 | ||||||||
Non-operating pension and OPEB items | 26,970 | 5,285 | (16,125) | ||||||||
Windfield tax settlement | 17,292 | ||||||||||
Legal accrual | 27,027 | ||||||||||
Environmental accrual | 15,597 | ||||||||||
Albemarle Foundation contribution | 15,000 | ||||||||||
Indemnification adjustments | 25,240 | ||||||||||
Note receivable reserve | 28,700 | 28,730 | |||||||||
Other | 23,035 | 14,237 | 6,046 | ||||||||
Reportable Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted EBITDA | 1,124,015 | 1,103,196 | 989,436 | ||||||||
Net income (loss) attributable to Albemarle Corporation | 841,398 | 1,120,325 | 792,496 | ||||||||
Depreciation and amortization | 197,179 | 185,931 | 182,409 | ||||||||
Utilization of inventory markup | 23,095 | ||||||||||
Restructuring and other | 0 | 0 | 0 | ||||||||
Gain on sale of business | 210,428 | ||||||||||
Gain on acquisition | 6,221 | ||||||||||
Acquisition and integration related costs | 0 | 0 | 0 | ||||||||
Gain on sale of property | 0 | ||||||||||
Interest and financing expenses | 0 | 0 | 0 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Non-operating pension and OPEB items | 0 | 0 | 0 | ||||||||
Windfield tax settlement | 17,292 | ||||||||||
Legal accrual | 0 | ||||||||||
Environmental accrual | 0 | ||||||||||
Albemarle Foundation contribution | 0 | ||||||||||
Indemnification adjustments | 0 | ||||||||||
Note receivable reserve | 0 | ||||||||||
Other | 3,380 | 7,368 | (2,343) | ||||||||
Reportable Segments | Lithium | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,358,170 | 1,228,171 | 1,018,885 | ||||||||
Adjusted EBITDA | 524,934 | 530,773 | 446,652 | ||||||||
Net income (loss) attributable to Albemarle Corporation | 341,767 | 428,212 | 342,992 | ||||||||
Depreciation and amortization | 99,424 | 95,193 | 87,879 | ||||||||
Utilization of inventory markup | 23,095 | ||||||||||
Restructuring and other | 0 | 0 | 0 | ||||||||
Gain on sale of business | 0 | ||||||||||
Gain on acquisition | 6,221 | ||||||||||
Acquisition and integration related costs | 0 | 0 | 0 | ||||||||
Gain on sale of property | 0 | ||||||||||
Interest and financing expenses | 0 | 0 | 0 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Non-operating pension and OPEB items | 0 | 0 | 0 | ||||||||
Windfield tax settlement | 17,292 | ||||||||||
Legal accrual | 0 | ||||||||||
Environmental accrual | 0 | ||||||||||
Albemarle Foundation contribution | 0 | ||||||||||
Indemnification adjustments | 0 | ||||||||||
Note receivable reserve | 0 | ||||||||||
Other | 1,685 | 7,368 | (1,093) | ||||||||
Reportable Segments | Bromine Specialties | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,004,216 | 917,880 | 855,143 | ||||||||
Adjusted EBITDA | 328,457 | 288,116 | 258,901 | ||||||||
Net income (loss) attributable to Albemarle Corporation | 279,945 | 246,509 | 218,839 | ||||||||
Depreciation and amortization | 47,611 | 41,607 | 40,062 | ||||||||
Utilization of inventory markup | 0 | ||||||||||
Restructuring and other | 0 | 0 | 0 | ||||||||
Gain on sale of business | 0 | ||||||||||
Gain on acquisition | 0 | ||||||||||
Acquisition and integration related costs | 0 | 0 | 0 | ||||||||
Gain on sale of property | 0 | ||||||||||
Interest and financing expenses | 0 | 0 | 0 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Non-operating pension and OPEB items | 0 | 0 | 0 | ||||||||
Windfield tax settlement | 0 | ||||||||||
Legal accrual | 0 | ||||||||||
Environmental accrual | 0 | ||||||||||
Albemarle Foundation contribution | 0 | ||||||||||
Indemnification adjustments | 0 | ||||||||||
Note receivable reserve | 0 | ||||||||||
Other | 901 | 0 | 0 | ||||||||
Reportable Segments | Catalysts | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,061,817 | 1,101,554 | 1,067,572 | ||||||||
Adjusted EBITDA | 270,624 | 284,307 | 283,883 | ||||||||
Net income (loss) attributable to Albemarle Corporation | 219,686 | 445,604 | 230,665 | ||||||||
Depreciation and amortization | 50,144 | 49,131 | 54,468 | ||||||||
Utilization of inventory markup | 0 | ||||||||||
Restructuring and other | 0 | 0 | 0 | ||||||||
Gain on sale of business | 210,428 | ||||||||||
Gain on acquisition | 0 | ||||||||||
Acquisition and integration related costs | 0 | 0 | 0 | ||||||||
Gain on sale of property | 0 | ||||||||||
Interest and financing expenses | 0 | 0 | 0 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Non-operating pension and OPEB items | 0 | 0 | 0 | ||||||||
Windfield tax settlement | 0 | ||||||||||
Legal accrual | 0 | ||||||||||
Environmental accrual | 0 | ||||||||||
Albemarle Foundation contribution | 0 | ||||||||||
Indemnification adjustments | 0 | ||||||||||
Note receivable reserve | 0 | ||||||||||
Other | 794 | 0 | (1,250) | ||||||||
All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 165,224 | 127,186 | 128,914 | ||||||||
Adjusted EBITDA | 49,628 | 14,091 | 13,878 | ||||||||
Net income (loss) attributable to Albemarle Corporation | 41,188 | 6,018 | 5,521 | ||||||||
Depreciation and amortization | 8,440 | 8,073 | 8,357 | ||||||||
Utilization of inventory markup | 0 | ||||||||||
Restructuring and other | 0 | 0 | 0 | ||||||||
Gain on sale of business | 0 | ||||||||||
Gain on acquisition | 0 | ||||||||||
Acquisition and integration related costs | 0 | 0 | 0 | ||||||||
Gain on sale of property | 0 | ||||||||||
Interest and financing expenses | 0 | 0 | 0 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Non-operating pension and OPEB items | 0 | 0 | 0 | ||||||||
Windfield tax settlement | 0 | ||||||||||
Legal accrual | 0 | ||||||||||
Environmental accrual | 0 | ||||||||||
Albemarle Foundation contribution | 0 | ||||||||||
Indemnification adjustments | 0 | ||||||||||
Note receivable reserve | 0 | ||||||||||
Other | 0 | 0 | 0 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 159 | 1,462 | ||||||||
Adjusted EBITDA | (136,862) | (110,623) | (117,834) | ||||||||
Net income (loss) attributable to Albemarle Corporation | (349,358) | (432,781) | (743,167) | ||||||||
Depreciation and amortization | 7,865 | 6,694 | 6,162 | ||||||||
Utilization of inventory markup | 0 | ||||||||||
Restructuring and other | 5,877 | 3,838 | 17,056 | ||||||||
Gain on sale of business | 0 | ||||||||||
Gain on acquisition | 0 | ||||||||||
Acquisition and integration related costs | 20,684 | 19,377 | 33,954 | ||||||||
Gain on sale of property | 14,411 | ||||||||||
Interest and financing expenses | 57,695 | 52,405 | 115,350 | ||||||||
Income tax expense | 88,161 | 144,826 | 431,817 | ||||||||
Non-operating pension and OPEB items | 26,970 | 5,285 | (16,125) | ||||||||
Windfield tax settlement | 0 | ||||||||||
Legal accrual | 27,027 | ||||||||||
Environmental accrual | 15,597 | ||||||||||
Albemarle Foundation contribution | 15,000 | ||||||||||
Indemnification adjustments | 25,240 | ||||||||||
Note receivable reserve | 28,730 | ||||||||||
Other | 19,655 | $ 6,869 | $ 8,389 | ||||||||
Mineral Resources Limited Wodgina Project | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net income (loss) attributable to Albemarle Corporation | 73,000 | ||||||||||
Mineral Resources Limited Wodgina Project | Stamp duty tax | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Acquisition and integration related costs | 64,800 | ||||||||||
Mineral Resources Limited Wodgina Project | Stamp duty tax | Reportable Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Acquisition and integration related costs | 64,766 | ||||||||||
Mineral Resources Limited Wodgina Project | Stamp duty tax | Reportable Segments | Lithium | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Acquisition and integration related costs | 64,766 | ||||||||||
Mineral Resources Limited Wodgina Project | Stamp duty tax | Reportable Segments | Bromine Specialties | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Acquisition and integration related costs | 0 | ||||||||||
Mineral Resources Limited Wodgina Project | Stamp duty tax | Reportable Segments | Catalysts | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Acquisition and integration related costs | 0 | ||||||||||
Mineral Resources Limited Wodgina Project | Stamp duty tax | All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Acquisition and integration related costs | 0 | ||||||||||
Mineral Resources Limited Wodgina Project | Stamp duty tax | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Acquisition and integration related costs | $ 0 |
Segment and Geographic Area I_5
Segment and Geographic Area Information Summarized Financial Information by Reportable Segments (Footnote) (Details) $ in Thousands, € in Millions | 12 Months Ended | ||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Feb. 01, 2017 | Dec. 18, 2014 | Dec. 08, 2014 | |
Segment Reporting Information [Line Items] | |||||||
Restructuring and other | $ 5,877 | $ 3,838 | $ 17,056 | ||||
Gain on sale of property | (14,411) | 0 | 0 | ||||
Loss on early extinguishment of debt | 4,829 | 0 | 52,801 | ||||
Multiemployer plan, period contributions | 1,400 | 1,500 | 1,500 | ||||
Asset retirement obligation charges | 3,600 | ||||||
Non-operating pension and OPEB items | 26,970 | 5,285 | (16,125) | ||||
Charitable contribution | 15,000 | ||||||
Utilization of inventory markup | 23,095 | ||||||
Repayments of long-term debt | 175,215 | 0 | 778,209 | ||||
Repayment of debt premium | 45,200 | ||||||
Cost of goods sold | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring and other | 100 | 2,900 | |||||
Non-routine Chilean labor costs | 700 | 8,800 | |||||
Write-off of fixed assets | 4,900 | ||||||
Reversal of a liability from an abandoned project | 1,300 | ||||||
Research and development expenses | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring and other | 5,700 | ||||||
Selling, general and administrative expenses | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring and other | 5,900 | 3,700 | 8,400 | ||||
Gain on sale of property | (3,300) | ||||||
Write-off of uncollectable accounts receivable | 900 | ||||||
Settlement of terminated agreements | 1,000 | ||||||
Revision of tax indemnification expense | 800 | ||||||
Charitable contribution | 1,200 | ||||||
Gain related to a refund form Chilean authorities | 1,500 | ||||||
Reversal of purchase accounting accrual | 1,000 | ||||||
Other expenses, net | |||||||
Segment Reporting Information [Line Items] | |||||||
Gain on sale of property | (11,100) | (8,700) | |||||
Revision of tax indemnification expense | 9,800 | 19,700 | 3,700 | ||||
Unrecoverable vendor costs | 3,100 | ||||||
Asset retirement obligation charges | 3,600 | 3,200 | |||||
Revision of previously recorded expenses of a disposed business | 5,500 | ||||||
Reversal of a liability from previous business | 1,500 | 1,100 | |||||
Settlement of a legal claim | 1,000 | ||||||
Reversal of a liability from previous acquisition | 10,600 | ||||||
Jiangxi Jiangli New Materials Science and Technology Co. Ltd. | Cost of goods sold | |||||||
Segment Reporting Information [Line Items] | |||||||
Utilization of inventory markup | 23,100 | ||||||
Sales de Magnesio Ltda. | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of equity interests acquired | 50.00% | ||||||
Financial Improvement Plan | Selling, general and administrative expenses | |||||||
Segment Reporting Information [Line Items] | |||||||
Multiemployer plan, period contributions | $ 1,800 | $ 2,300 | $ 3,300 | ||||
Jordan Bromine Company Limited | |||||||
Segment Reporting Information [Line Items] | |||||||
Ownership percentage | 50.00% | ||||||
Jordan Bromine Company Limited | Other expenses, net | |||||||
Segment Reporting Information [Line Items] | |||||||
Non-operating pension and OPEB items | $ 1,200 | ||||||
Windfield Holdings | |||||||
Segment Reporting Information [Line Items] | |||||||
Ownership percentage | 49.00% | 49.00% | 49.00% | 49.00% | |||
3.00% Senior Notes | |||||||
Segment Reporting Information [Line Items] | |||||||
Debt instrument, interest rate | 3.00% | 3.00% | |||||
1.875% Senior Notes | |||||||
Segment Reporting Information [Line Items] | |||||||
Debt instrument, interest rate | 1.875% | 1.875% | 1.875% | 1.875% | 1.875% | 1.875% | |
4.50% Senior Notes | |||||||
Segment Reporting Information [Line Items] | |||||||
Debt instrument, interest rate | 4.50% | 4.50% | 4.50% | 4.50% | |||
Senior Notes | 3.00% Senior Notes | |||||||
Segment Reporting Information [Line Items] | |||||||
Repayments of long-term debt | $ 250,000 | ||||||
Senior Notes | 1.875% Senior Notes | |||||||
Segment Reporting Information [Line Items] | |||||||
Repayments of long-term debt | € | € 307 | ||||||
Senior Notes | 4.50% Senior Notes | |||||||
Segment Reporting Information [Line Items] | |||||||
Repayments of long-term debt | $ 174,700 |
Segment and Geographic Area I_6
Segment and Geographic Area Information Identifiable Assets by Reportable Segments (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||||
Identifiable assets | $ 9,860,863 | $ 7,581,674 | $ 7,750,772 | |
Reportable Segments | Lithium | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable assets | 6,570,791 | 4,605,070 | 3,979,615 | |
Reportable Segments | Bromine Specialties | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable assets | 799,456 | 753,157 | 745,007 | |
Reportable Segments | Catalysts | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable assets | 1,163,590 | 1,134,975 | 1,332,599 | |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable assets | 146,211 | 128,185 | 126,486 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable assets | $ 1,180,815 | $ 960,287 | $ 1,567,065 | |
Mineral Resources Limited Wodgina Project | ||||
Segment Reporting Information [Line Items] | ||||
Ownership percentage | 60.00% | 60.00% |
Segment and Geographic Area I_7
Segment and Geographic Area Information Depreciation and Amortization and Capital Expenditures by Reportable Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 213,484 | $ 200,698 | $ 196,928 |
Capital expenditures | 851,796 | 699,991 | 317,703 |
Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 197,179 | 185,931 | 182,409 |
Reportable Segments | Lithium | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 99,424 | 95,193 | 87,879 |
Capital expenditures | 665,585 | 500,849 | 192,318 |
Reportable Segments | Bromine Specialties | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 47,611 | 41,607 | 40,062 |
Capital expenditures | 82,208 | 79,357 | 46,427 |
Reportable Segments | Catalysts | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 50,144 | 49,131 | 54,468 |
Capital expenditures | 57,939 | 52,019 | 46,808 |
All Other | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 8,440 | 8,073 | 8,357 |
Capital expenditures | 7,309 | 5,232 | 3,657 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 7,865 | 6,694 | 6,162 |
Capital expenditures | $ 38,755 | $ 62,534 | $ 28,493 |
Segment and Geographic Area I_8
Segment and Geographic Area Information Net Sales by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 992,564 | $ 879,747 | $ 885,052 | $ 832,064 | $ 921,699 | $ 777,748 | $ 853,874 | $ 821,629 | $ 3,589,427 | $ 3,374,950 | $ 3,071,976 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 858,084 | 887,416 | 840,589 | ||||||||
Foreign | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 2,731,343 | $ 2,487,534 | $ 2,231,387 | ||||||||
Korea | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percent of total net sales | 17.00% | 13.00% | |||||||||
China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percent of total net sales | 13.00% | 12.00% | 15.00% | ||||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percent of total net sales | 12.00% | 10.00% |
Segment and Geographic Area I_9
Segment and Geographic Area Information Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 5,443,776 | $ 3,506,990 | $ 2,996,661 |
United States | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 1,003,496 | 929,291 | 833,002 |
Chile | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 1,687,090 | 1,406,478 | 1,069,859 |
Australia | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 1,981,642 | 407,141 | 364,624 |
Jordan | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 256,363 | 254,800 | 242,626 |
Netherlands | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 165,782 | 166,853 | 171,980 |
China | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 109,235 | 91,160 | 50,532 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 89,568 | 101,168 | 115,305 |
France | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 44,936 | 43,698 | 40,852 |
Brazil | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 37,165 | 40,464 | 47,255 |
Other foreign countries | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 68,499 | $ 65,937 | $ 60,626 |
Quarterly Financial Summary (_3
Quarterly Financial Summary (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 992,564 | $ 879,747 | $ 885,052 | $ 832,064 | $ 921,699 | $ 777,748 | $ 853,874 | $ 821,629 | $ 3,589,427 | $ 3,374,950 | $ 3,071,976 |
Gross profit | 338,511 | 309,867 | 325,914 | 283,486 | 320,384 | 280,537 | 311,356 | 304,979 | 1,257,778 | 1,217,256 | 1,106,276 |
(Gain) loss on sale of business, net | 8,277 | 0 | (218,705) | 0 | 0 | (210,428) | 0 | ||||
Net income | 106,243 | 171,618 | 174,970 | 151,526 | 146,049 | 143,479 | 310,686 | 138,925 | |||
Net income attributable to noncontrolling interests | (15,852) | (16,548) | (20,772) | (17,957) | (16,453) | (13,734) | (8,225) | (7,165) | (71,129) | (45,577) | (44,618) |
Net income attributable to Albemarle Corporation | $ 90,391 | $ 155,070 | $ 154,198 | $ 133,569 | $ 129,596 | $ 129,745 | $ 302,461 | $ 131,760 | $ 533,228 | $ 693,562 | $ 54,850 |
Basic earnings (loss) per share: | |||||||||||
Basic earnings per share (in dollars per share) | $ 0.85 | $ 1.46 | $ 1.46 | $ 1.26 | $ 1.22 | $ 1.21 | $ 2.76 | $ 1.19 | $ 5.03 | $ 6.40 | $ 0.49 |
Weighted-average common shares outstanding—basic (in shares) | 106,037 | 105,999 | 105,961 | 105,799 | 106,042 | 107,315 | 109,671 | 110,681 | 105,949 | 108,427 | 110,914 |
Diluted earnings (loss) per share: | |||||||||||
Diluted earnings per share (in dollars per share) | $ 0.85 | $ 1.46 | $ 1.45 | $ 1.26 | $ 1.21 | $ 1.20 | $ 2.73 | $ 1.18 | $ 5.02 | $ 6.34 | $ 0.49 |
Weighted-average common shares outstanding—diluted (in shares) | 106,314 | 106,299 | 106,316 | 106,356 | 107,005 | 108,302 | 110,659 | 111,867 | 106,321 | 109,458 | 112,380 |
Expense related to correction of out of period error | $ 7,000 |
Quarterly Financial Summary (_4
Quarterly Financial Summary (Unaudited) - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Actuarial loss | $ 29.3 | $ (14) |
Actuarial loss, net of income tax | $ (21.1) | $ (10.6) |
Leases Additional Information (
Leases Additional Information (Details) - USD ($) $ in Millions | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Lessee, Lease, Description [Line Items] | ||||
Rental expense | $ 37.6 | $ 31.2 | ||
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 | |||
Mineral Resources Limited Wodgina Project | ||||
Lessee, Lease, Description [Line Items] | ||||
Ownership percentage | 60.00% | 60.00% |
Leases Leases Cost (Details)
Leases Leases Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 35,335 |
Amortization of right of use assets | 625 |
Interest on lease liabilities | 117 |
Total finance lease cost | 742 |
Short-term lease cost | 6,655 |
Variable lease cost | 6,198 |
Total lease cost | $ 48,930 |
Leases Leases Cash Flow (Detail
Leases Leases Cash Flow (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 29,946 |
Operating cash flows from finance leases | 117 |
Financing cash flows from finance leases | 678 |
Right-of-use asset obtained in exchange for operating leases | 24,687 |
Right-of-use asset obtained in exchange for finance leases | $ 55,806 |
Leases Leases Balance Sheet (De
Leases Leases Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating leases | $ 133,864 | $ 0 |
Current operating lease liability | 23,137 | 0 |
Other noncurrent liabilities | 114,686 | $ 0 |
Total operating lease liabilities | 137,823 | |
Net property, plant and equipment | 59,494 | |
Current portion of long-term debt | 636 | |
Long-term debt | 58,888 | |
Total finance lease liabilities | $ 59,524 | |
Weighted average remaining lease term, operating leases | 11 years 4 months 24 days | |
Weighted average remaining lease term, finance leases | 28 years 3 months 18 days | |
Weighted average discount rate, operating leases, percent | 3.84% | |
Weighted average discount rate, finance leases, percent | 4.56% |
Leases Leases Maturity Table (D
Leases Leases Maturity Table (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
Operating lease liability payments due next twelve months | $ 28,333 |
Operating lease liability payments due year two | 15,306 |
Operating lease liability payments due year three | 13,153 |
Operating lease liability payments due year four | 12,433 |
Operating lease liability payments due year five | 11,850 |
Operating lease liability payments due after year five | 94,002 |
Total operating lease liability payments | 175,077 |
Imputed interest operating leases | 37,254 |
Total operating lease liabilities | 137,823 |
Finance Leases | |
Finance lease liability payments due next twelve months | 2,229 |
Finance lease liability payments due year two | 2,140 |
Finance lease liability payments due year three | 4,431 |
Finance lease liability payments due year four | 4,431 |
Finance lease liability payments due year five | 4,431 |
Finance lease liability payments due after year five | 94,788 |
Total finance lease liability payments | 112,450 |
Imputed interest finance leases | 52,926 |
Total finance lease liabilities | $ 59,524 |