Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-12658 | |
Entity Registrant Name | ALBEMARLE CORPORATION | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1692118 | |
Entity Address, Address Line One | 4250 Congress Street, Suite 900 | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28209 | |
City Area Code | (980) | |
Local Phone Number | 299-5700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | COMMON STOCK, $.01 Par Value | |
Trading Symbol | ALB | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 106,457,193 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000915913 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 746,868 | $ 879,747 | $ 2,249,762 | $ 2,596,863 |
Cost of goods sold | 492,812 | 569,880 | 1,520,329 | 1,677,596 |
Gross profit | 254,056 | 309,867 | 729,433 | 919,267 |
Selling, general and administrative expenses | 96,092 | 108,135 | 304,918 | 348,205 |
Research and development expenses | 13,532 | 15,585 | 43,839 | 44,024 |
Operating profit | 144,432 | 186,147 | 380,676 | 527,038 |
Interest and financing expenses | (19,227) | (11,108) | (53,964) | (35,295) |
Other expenses, net | (3,661) | (11,316) | (1,620) | (7,090) |
Income before income taxes and equity in net income of unconsolidated investments | 121,544 | 163,723 | 325,092 | 484,653 |
Income tax expense | 30,653 | 25,341 | 64,526 | 93,266 |
Income before equity in net income of unconsolidated investments | 90,891 | 138,382 | 260,566 | 391,387 |
Equity in net income of unconsolidated investments (net of tax) | 26,154 | 33,236 | 83,872 | 106,727 |
Net income | 117,045 | 171,618 | 344,438 | 498,114 |
Net income attributable to noncontrolling interests | (18,744) | (16,548) | (53,309) | (55,277) |
Net income attributable to Albemarle Corporation | $ 98,301 | $ 155,070 | $ 291,129 | $ 442,837 |
Basic earnings per share (in dollars per share) | $ 0.92 | $ 1.46 | $ 2.74 | $ 4.18 |
Diluted earnings per share (in dollars per share) | $ 0.92 | $ 1.46 | $ 2.73 | $ 4.16 |
Weighted-average common shares outstanding - basic (in shares) | 106,386 | 105,999 | 106,314 | 105,920 |
Weighted-average common shares outstanding - diluted (in shares) | 106,873 | 106,299 | 106,640 | 106,324 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 117,045 | $ 171,618 | $ 344,438 | $ 498,114 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | 37,489 | (100,069) | 18,350 | (100,380) |
Pension and postretirement benefits | 10 | (5) | 27 | 8 |
Net investment hedge | (12,408) | 12,745 | (16,083) | 13,012 |
Cash flow hedge | 6,993 | 0 | (6,822) | 0 |
Interest rate swap | 647 | 641 | 1,943 | 1,923 |
Total other comprehensive income (loss), net of tax | 32,731 | (86,688) | (2,585) | (85,437) |
Comprehensive income | 149,776 | 84,930 | 341,853 | 412,677 |
Comprehensive income attributable to noncontrolling interests | (18,811) | (16,426) | (53,456) | (55,135) |
Comprehensive income attributable to Albemarle Corporation | $ 130,965 | $ 68,504 | $ 288,397 | $ 357,542 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 702,073 | $ 613,110 |
Trade accounts receivable, less allowance for doubtful accounts (2020 – $2,154; 2019 – $3,711) | 516,166 | 612,651 |
Other accounts receivable | 61,522 | 67,551 |
Inventories | 828,080 | 768,984 |
Other current assets | 119,171 | 162,813 |
Total current assets | 2,227,012 | 2,225,109 |
Property, plant and equipment, at cost | 7,284,575 | 6,817,843 |
Less accumulated depreciation and amortization | 2,041,851 | 1,908,370 |
Net property, plant and equipment | 5,242,724 | 4,909,473 |
Investments | 603,745 | 579,813 |
Other assets | 211,534 | 213,061 |
Goodwill | 1,603,049 | 1,578,785 |
Other intangibles, net of amortization | 343,919 | 354,622 |
Total assets | 10,231,983 | 9,860,863 |
Current liabilities: | ||
Accounts payable | 465,644 | 574,138 |
Accrued expenses | 477,510 | 576,297 |
Current portion of long-term debt | 603,787 | 187,336 |
Dividends payable | 40,787 | 38,764 |
Accrued expenses | 18,013 | 23,137 |
Income taxes payable | 25,011 | 32,461 |
Total current liabilities | 1,612,739 | 1,408,996 |
Long-term debt | 2,940,533 | 2,862,921 |
Postretirement benefits | 49,926 | 50,899 |
Pension benefits | 285,942 | 292,073 |
Other noncurrent liabilities | 612,013 | 754,536 |
Deferred income taxes | 405,449 | 397,858 |
Commitments and contingencies (Note 9) | ||
Albemarle Corporation shareholders’ equity: | ||
Common stock, $.01 par value, issued and outstanding – 106,457 in 2020 and 106,040 in 2019 | 1,065 | 1,061 |
Additional paid-in capital | 1,410,534 | 1,383,446 |
Accumulated other comprehensive loss | (398,467) | (395,735) |
Retained earnings | 3,111,749 | 2,943,478 |
Total Albemarle Corporation shareholders’ equity | 4,124,881 | 3,932,250 |
Noncontrolling interests | 200,500 | 161,330 |
Total equity | 4,325,381 | 4,093,580 |
Total liabilities and equity | $ 10,231,983 | $ 9,860,863 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,154 | $ 3,711 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 106,457 | 106,040 |
Common stock, outstanding (in shares) | 106,457 | 106,040 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Albemarle Shareholders' Equity | Non-controlling Interests |
Beginning Balance (in shares) at Dec. 31, 2018 | 105,616,028 | ||||||
Beginning 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 | 498,114 | 442,837 | 442,837 | 55,277 | |||
Other comprehensive (loss) income | (85,437) | (85,295) | (85,295) | (142) | |||
Cash dividends declared | (174,042) | (116,830) | (116,830) | (57,212) | |||
Stock-based compensation | 16,999 | 16,999 | 16,999 | ||||
Exercise of stock options (in shares) | 161,909 | ||||||
Exercise of stock options | 4,814 | $ 2 | 4,812 | 4,814 | |||
Issuance of common stock, net (in shares) | 383,313 | ||||||
Issuance of common stock, net | 0 | $ 3 | (3) | 0 | |||
Increase in ownership interest of noncontrolling interest | (445) | (513) | (513) | 68 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (130,162) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (10,774) | $ (1) | (10,773) | (10,774) | |||
Ending Balance (in shares) at Sep. 30, 2019 | 106,031,088 | ||||||
Ending Balance at Sep. 30, 2019 | 4,008,337 | $ 1,060 | 1,379,419 | (435,977) | 2,892,057 | 3,836,559 | 171,778 |
Beginning Balance (in shares) at Jun. 30, 2019 | 105,971,464 | ||||||
Beginning Balance at Jun. 30, 2019 | 3,974,403 | $ 1,059 | 1,373,213 | (349,411) | 2,775,940 | 3,800,801 | 173,602 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 171,618 | 155,070 | 155,070 | 16,548 | |||
Other comprehensive (loss) income | (86,688) | (86,566) | (86,566) | (122) | |||
Cash dividends declared | (57,203) | (38,953) | (38,953) | (18,250) | |||
Stock-based compensation | 4,802 | 4,802 | 4,802 | ||||
Exercise of stock options (in shares) | 36,000 | ||||||
Exercise of stock options | 1,609 | $ 1 | 1,608 | 1,609 | |||
Issuance of common stock, net (in shares) | 26,489 | ||||||
Issuance of common stock, net | 0 | $ 0 | 0 | 0 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (2,865) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (204) | $ 0 | (204) | (204) | |||
Ending Balance (in shares) at Sep. 30, 2019 | 106,031,088 | ||||||
Ending Balance at Sep. 30, 2019 | 4,008,337 | $ 1,060 | 1,379,419 | (435,977) | 2,892,057 | 3,836,559 | 171,778 |
Beginning Balance (in shares) at Dec. 31, 2019 | 106,040,215 | ||||||
Beginning Balance at Dec. 31, 2019 | 4,093,580 | $ 1,061 | 1,383,446 | (395,735) | 2,943,478 | 3,932,250 | 161,330 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 344,438 | 291,129 | 291,129 | 53,309 | |||
Other comprehensive (loss) income | (2,585) | (2,732) | (2,732) | 147 | |||
Cash dividends declared | (137,144) | (122,858) | (122,858) | (14,286) | |||
Stock-based compensation | 14,970 | 14,970 | 14,970 | ||||
Exercise of stock options (in shares) | 300,833 | ||||||
Exercise of stock options | 16,925 | $ 3 | 16,922 | 16,925 | |||
Issuance of common stock, net (in shares) | 179,368 | ||||||
Issuance of common stock, net | 0 | $ 2 | (2) | 0 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (63,368) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (4,803) | $ (1) | (4,802) | (4,803) | |||
Ending Balance (in shares) at Sep. 30, 2020 | 106,457,048 | ||||||
Ending Balance at Sep. 30, 2020 | 4,325,381 | $ 1,065 | 1,410,534 | (398,467) | 3,111,749 | 4,124,881 | 200,500 |
Beginning Balance (in shares) at Jun. 30, 2020 | 106,336,982 | ||||||
Beginning Balance at Jun. 30, 2020 | 4,206,161 | $ 1,064 | 1,400,105 | (431,131) | 3,054,434 | 4,024,472 | 181,689 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 117,045 | 98,301 | 98,301 | 18,744 | |||
Other comprehensive (loss) income | 32,731 | 32,664 | 32,664 | 67 | |||
Cash dividends declared | (40,986) | (40,986) | (40,986) | 0 | |||
Stock-based compensation | 5,098 | 5,098 | 5,098 | ||||
Exercise of stock options (in shares) | 96,356 | ||||||
Exercise of stock options | 6,116 | $ 1 | 6,115 | 6,116 | |||
Issuance of common stock, net (in shares) | 33,798 | ||||||
Issuance of common stock, net | 0 | $ 0 | 0 | 0 | |||
Shares withheld for withholding taxes associated with common stock issuances (in shares) | (10,088) | ||||||
Shares withheld for withholding taxes associated with common stock issuances | (784) | $ 0 | (784) | (784) | |||
Ending Balance (in shares) at Sep. 30, 2020 | 106,457,048 | ||||||
Ending Balance at Sep. 30, 2020 | $ 4,325,381 | $ 1,065 | $ 1,410,534 | $ (398,467) | $ 3,111,749 | $ 4,124,881 | $ 200,500 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Financial Position [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.385 | $ 0.3675 | $ 1.155 | $ 1.1025 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of year | $ 613,110 | $ 555,320 |
Cash flows from operating activities: | ||
Net income | 344,438 | 498,114 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 170,214 | 156,718 |
Gain on sale of property | 0 | (11,079) |
Stock-based compensation and other | 15,864 | 15,169 |
Equity in net income of unconsolidated investments (net of tax) | (83,872) | (106,727) |
Dividends received from unconsolidated investments and nonmarketable securities | 61,309 | 62,982 |
Pension and postretirement (benefit) expense | (4,975) | 1,641 |
Pension and postretirement contributions | (10,323) | (10,728) |
Unrealized gain on investments in marketable securities | (3,377) | (1,701) |
Deferred income taxes | 7,920 | 7,726 |
Working capital changes | (167,436) | (289,587) |
Other, net | 131,952 | 23,110 |
Net cash provided by operating activities | 461,714 | 345,638 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | (22,572) | 0 |
Capital expenditures | (621,371) | (608,456) |
Proceeds from sale of property and equipment | 0 | 10,356 |
Sales of marketable securities, net | 1,208 | 1,177 |
Investments in equity and other corporate investments | (786) | (2,569) |
Net cash used in investing activities | (643,521) | (599,492) |
Cash flows from financing activities: | ||
Repayments of borrowings from credit agreements | (250,000) | 0 |
Proceeds from borrowings of credit agreements | 452,163 | 0 |
Other borrowings, net | (202,786) | (232,183) |
Dividends paid to shareholders | (120,836) | (113,321) |
Dividends paid to noncontrolling interests | (14,286) | (57,212) |
Proceeds from exercise of stock options | 16,925 | 4,814 |
Withholding taxes paid on stock-based compensation award distributions | (4,803) | (10,774) |
Debt financing costs | (2,751) | 0 |
Other | 0 | (445) |
Net cash provided by financing activities | 279,198 | 55,245 |
Net effect of foreign exchange on cash and cash equivalents | (8,428) | (38,888) |
Increase (decrease) in cash and cash equivalents | 88,963 | (237,497) |
Cash and cash equivalents at end of period | $ 702,073 | $ 317,823 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements of Albemarle Corporation and our wholly-owned, majority-owned and controlled subsidiaries (collectively, “Albemarle,” “we,” “us,” “our” or “the Company”) contain all adjustments necessary for a fair statement, in all material respects, of our condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019, our consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of changes in equity for the three-month and nine-month periods ended September 30, 2020 and 2019 and our condensed consolidated statements of cash flows for the nine-month periods ended September 30, 2020 and 2019. Cost of goods sold for the three-month period ended September 30, 2019 includes expense of $7.0 million due to the correction of an out-of-period error regarding carbonate inventory values related to the three-month period ended June 30, 2019. The Company does not believe this adjustment is material to the consolidated financial statements for the three- or nine-month periods ended September 30, 2019, or the three- or six-month periods ended June 30, 2019. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the Securities and Exchange Commission (“SEC”) on February 26, 2020. The December 31, 2019 condensed consolidated balance sheet data herein was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The results of operations for the three-month and nine-month periods ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made to the accompanying condensed consolidated financial statements and the notes thereto to conform to the current presentation. The current novel coronavirus (“COVID-19”) pandemic is having an impact on overall global economic conditions. While we have not seen a material impact to our operations to date, the ultimate impact on our business will depend on the length and severity of the outbreak throughout the world. The Company has taken, and plans to continue to take, certain measures to maintain financial flexibility, including delaying certain capital expenditure projects and accelerating our cost savings initiative, while still protecting our employees and customers. In addition, on May 11, 2020, the Company amended its revolving, unsecured credit agreement dated as of June 21, 2018, as amended on August 14, 2019 (the “2018 Credit Agreement”) and unsecured credit facility entered into on August 14, 2019 (the “2019 Credit Facility”) (together “the Credit Agreements”) to modify its financial covenant based on the Company’s current expectations. As of September 30, 2020, the Company is in compliance with its financial covenant under its Credit Agreements and expects to be in compliance with its financial covenant for at least one year from the issuance of these interim financial statements. If conditions caused by the COVID-19 pandemic worsen and the Company’s earnings and cash flow from operations do not start to recover as contemplated in the Company's current plans, the Company may not be able to maintain compliance with its amended financial covenant and could have a material adverse effect on the Company. See Note 8, “Long-Term Debt,” for further discussion of covenant amendment. In addition, as of September 30, 2020, we assessed other accounting estimates based on forecasted financial information, including, but not limited to, our allowance for credit losses, the carrying value of our goodwill, intangible assets, and other long-lived assets. At this time we cannot predict the ultimate financial impact of the COVID-19 pandemic on our business, and to what extent economic and operating conditions recover on a sustainable basis globally. Accordingly, if the impact is more severe or longer in duration than we have assumed, such impact could potentially result in impairments and increases in credit allowances. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions: On October 31, 2019 (the “Acquisition Closing Date”), we completed the previously announced acquisition of a 60% interest in Mineral Resources Limited’s (“MRL”) Wodgina hard rock lithium mine project (“Wodgina Project”) for a total purchase price of approximately $1.3 billion. The purchase price is comprised of $820 million in cash 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. In addition, during the first nine months of 2020, we paid $22.6 million of agreed upon purchase price adjustments. The stamp duty levied on the assets purchased of $61.5 million, originally recorded as an expense during the year ended December 31, 2019, was paid in the second quarter of 2020 and is included in Change in working capital on the condensed consolidated statement of cash flows. 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 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 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 connection with the acquisition, we idled production of the Wodgina spodumene mine until demand supports bringing the mine back to production. 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 three-month and nine-month periods ended September 30, 2020 is a loss of approximately $4.7 million and $14.6 million, respectively, attributable to the joint venture. There were no net sales attributable to the joint venture during this period. Included in Selling, general and administrative expenses (“SG&A”) on our consolidated statements of income for the three-month and nine-month periods ended September 30, 2020 and 2019 is $0.2 million and $1.0 million, respectively, and $1.3 million and $4.4 million, respectively, of costs directly related to this acquisition, primarily consisting of professional services and advisory fees. 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 $18.8 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 22,566 Total purchase price $ 1,322,566 Net assets acquired: Inventories $ 33,900 Other current assets 11,280 Property, plant and equipment: Land improvements 2,912 Buildings and improvements 19,268 Machinery and equipment 163,808 Mineral rights and reserves 1,058,700 Construction in progress 103,700 Current liabilities (10,695) Long-term debt (a) (55,806) Other noncurrent liabilities (23,296) Total identifiable net assets 1,303,771 Goodwill 18,795 Total net assets acquired $ 1,322,566 (a) Represents 60% ownership interest in finance lease acquired. See Note 10, “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. Significant changes in our purchase price allocation since our initial preliminary estimates reported in the fourth quarter of 2019 were primarily related to an increase in the estimated fair values of mineral rights and reserves, which resulted in a decrease to recognized goodwill of approximately $13.0 million. 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 were based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. The fair value of the mineral reserves of $1,025.9 million was 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. 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. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 30, 2020 | |
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 nine months ended September 30, 2020 (in thousands): Lithium Bromine Specialties Catalysts All Other Total Balance at December 31, 2019 $ 1,370,846 $ 20,319 $ 181,034 $ 6,586 $ 1,578,785 Acquisitions (a) (12,967) — — — (12,967) Foreign currency translation adjustments and other 30,522 — 6,709 — 37,231 Balance at September 30, 2020 $ 1,388,401 $ 20,319 $ 187,743 $ 6,586 $ 1,603,049 (a) Represents preliminary purchase price adjustments for the Wodgina Project acquisition. See Note 2, “Acquisitions” for additional information. The following table summarizes the changes in other intangibles and related accumulated amortization for the nine months ended September 30, 2020 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2019 $ 422,462 $ 18,087 $ 55,020 $ 41,282 $ 536,851 Foreign currency translation adjustments and other 12,699 104 1,355 (1,524) 12,634 Balance at September 30, 2020 $ 435,161 $ 18,191 $ 56,375 $ 39,758 $ 549,485 Accumulated Amortization Balance at December 31, 2019 $ (116,749) $ (7,938) $ (36,197) $ (21,345) $ (182,229) Amortization (16,789) — (1,022) (752) (18,563) Foreign currency translation adjustments and other (3,729) (113) (929) (3) (4,774) Balance at September 30, 2020 $ (137,267) $ (8,051) $ (38,148) $ (22,100) $ (205,566) Net Book Value at December 31, 2019 $ 305,713 $ 10,149 $ 18,823 $ 19,937 $ 354,622 Net Book Value at September 30, 2020 $ 297,894 $ 10,140 $ 18,227 $ 17,658 $ 343,919 (a) Net Book Value includes only indefinite-lived intangible assets. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes:The effective income tax rate for the three-month and nine-month periods ended September 30, 2020 was 25.2% and 19.8%, respectively, compared to 15.5% and 19.2% for the three-month and nine-month periods ended September 30, 2019, respectively. The Company’s effective income tax rate fluctuates based on, among other factors, its level and location of income. The difference between the U.S. federal statutory income tax rate and our effective income tax rate for the three-month and nine-month periods ended September 30, 2020 was impacted by a variety of factors, primarily stemming from the location in which income was earned. For the three-month and nine-month periods ended September 30, 2020, this was mainly attributable to our share of the income of our Jordan Bromine Company Limited (“JBC”) joint venture, a Free Zones company under the laws of the Hashemite Kingdom of Jordan. The three-month and nine-month periods ended September 30, 2020 also include discrete tax expenses recorded for foreign uncertain tax positions and foreign return to accrual adjustments. The difference between the U.S. federal statutory income tax rate and our effective income tax rate for the three-month and nine-month periods ended September 30, 2019 was impacted by a variety of factors, primarily stemming from the location in which income was earned. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2020 and 2019 are calculated as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Basic earnings per share Numerator: Net income attributable to Albemarle Corporation $ 98,301 $ 155,070 $ 291,129 $ 442,837 Denominator: Weighted-average common shares for basic earnings per share 106,386 105,999 106,314 105,920 Basic earnings per share $ 0.92 $ 1.46 $ 2.74 $ 4.18 Diluted earnings per share Numerator: Net income attributable to Albemarle Corporation $ 98,301 $ 155,070 $ 291,129 $ 442,837 Denominator: Weighted-average common shares for basic earnings per share 106,386 105,999 106,314 105,920 Incremental shares under stock compensation plans 487 300 326 404 Weighted-average common shares for diluted earnings per share 106,873 106,299 106,640 106,324 Diluted earnings per share $ 0.92 $ 1.46 $ 2.73 $ 4.16 At September 30, 2020, there were 45,706 common stock equivalents not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. On February 28, 2020, the Company increased the regular quarterly dividend by 5% to $0.385 per share. On July 14, 2020, the Company declared a cash dividend of $0.385, which was paid on October 1, 2020 to shareholders of record at the close of business as of September 18, 2020. On October 27, 2020, the Company declared a cash dividend of $0.385 per share, which is payable on January 4, 2021 to shareholders of record at the close of business as of December 11, 2020. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories: The following table provides a breakdown of inventories at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, 2020 2019 Finished goods $ 525,071 $ 495,639 Raw materials and work in process (a) 228,637 205,781 Stores, supplies and other 74,372 67,564 Total $ 828,080 $ 768,984 (a) Included $124.3 million and $109.3 million at September 30, 2020 and December 31, 2019, respectively, of work in process in our Lithium segment. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments:The Company holds a 49% equity interest in Windfield Holdings Pty. Ltd. (“Windfield”), where the ownership parties share risks and benefits disproportionate to their voting interests. As a result, the Company considers Windfield to be a variable interest entity (“VIE”), however this investment is not consolidated as the Company is not the primary beneficiary. The carrying amount of our 49% equity interest in Windfield, which is our most significant VIE, was $428.4 million and $397.2 million at September 30, 2020 and December 31, 2019, respectively. The Company’s aggregate net investment in all other entities which it considers to be VIEs for which the Company is not the primary beneficiary was $7.1 million and $7.6 million at September 30, 2020 and December 31, 2019, respectively. Our unconsolidated VIEs are reported in Investments on the condensed 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. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt: Long-term debt at September 30, 2020 and December 31, 2019 consisted of the following (in thousands): September 30, December 31, 2020 2019 1.125% notes, net of unamortized discount and debt issuance costs of $4,121 at September 30, 2020 and $5,659 at December 31, 2019 $ 577,479 $ 549,241 1.625% notes, net of unamortized discount and debt issuance costs of $5,846 at September 30, 2020 and $5,696 at December 31, 2019 575,754 549,204 1.875% Senior notes, net of unamortized discount and debt issuance costs of $1,172 at September 30, 2020 and $1,831 at December 31, 2019. 455,888 434,241 3.450% Senior notes, net of unamortized discount and debt issuance costs of $3,153 at September 30, 2020 and $3,533 at December 31, 2019 296,847 296,467 4.15% Senior notes, net of unamortized discount and debt issuance costs of $2,032 at September 30, 2020 and $2,398 at December 31, 2019 422,968 422,603 5.45% Senior notes, net of unamortized discount and debt issuance costs of $3,734 at September 30, 2020 and $3,850 at December 31, 2019 346,266 346,150 Floating rate notes, net of unamortized debt issuance costs of $815 at September 30, 2020 and $1,169 at December 31, 2019 199,185 198,831 Credit facilities 213,196 — Commercial paper notes 390,000 186,700 Variable-rate foreign bank loans 7,570 7,296 Finance lease obligations 59,167 59,524 Total long-term debt 3,544,320 3,050,257 Less amounts due within one year 603,787 187,336 Long-term debt, less current portion $ 2,940,533 $ 2,862,921 Current portion of long-term debt at September 30, 2020 includes commercial paper notes with a weighted-average interest rate of approximately 0.55% and a weighted-average maturity of 46 days. In the first quarter of 2020, the Company borrowed $250.0 million under the 2018 Credit Agreement to repay short-term commercial paper notes and for other general corporate purposes. This amount was repaid in the third quarter of 2020 using short-term commercial paper notes. In April 2020, the Company borrowed the Euro equivalent of $200.0 million under the 2019 Credit Facility to be used for general corporate purposes. The applicable interest rate for the amount borrowed was 1.375%. The carrying value of our 1.875% Euro-denominated senior notes has been designated as an effective hedge of our net investment in certain foreign subsidiaries where the Euro serves as the functional currency, and gains or losses on the revaluation of these senior notes to our reporting currency are recorded in accumulated other comprehensive loss. During the three-month and nine-month periods ended September 30, 2020, losses of $12.4 million and $16.1 million (net of income taxes), respectively, and during the three-month and nine-month periods ended September 30, 2019, gains of $12.7 million and $13.0 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. As a result of the uncertainty of the overall financial impact of the COVID-19 pandemic, the Company amended the Credit Agreements on May 11, 2020 to modify its financial covenant based on the Company’s current expectations. The amendment effects changes to certain provisions of the Credit Agreements, including: (a) conversion of the consolidated funded debt to consolidated EBITDA ratio to a consolidated net funded debt to consolidated EBITDA ratio; (b) carving-out third party sales of accounts receivables from the Securitization Transaction definition; (c) setting the consolidated net funded debt to consolidated EBITDA ratio to 4.00:1 for the fiscal quarter ending June 30, 2020, 4.50:1 for the fiscal quarters through September 30, 2021, 4.00:1 for the fiscal quarter ending December 31, 2021, and 3.50:1 for fiscal quarters thereafter; and (d) reducing the priority debt basket to 24% of Consolidated Net Tangible Assets, as defined in the Credit Agreements, through and including December 31, 2021. As part of this amendment, the Company agreed to pay a 10 basis point fee on the consenting |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: Environmental We had the following activity in our recorded environmental liabilities for the nine months ended September 30, 2020 (in thousands): Beginning balance at December 31, 2019 $ 42,592 Expenditures (2,560) Accretion of discount 652 Additions and changes in estimates 3,857 Foreign currency translation adjustments and other 805 Ending balance at September 30, 2020 45,346 Less amounts reported in Accrued expenses 9,654 Amounts reported in Other noncurrent liabilities $ 35,692 Environmental remediation liabilities included discounted liabilities of $38.7 million and $35.6 million at September 30, 2020 and December 31, 2019, respectively, discounted at rates with a weighted-average of 3.5% and 3.7%, respectively, with the undiscounted amount totaling $72.9 million and $69.2 million at September 30, 2020 and December 31, 2019, 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. 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 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”), SEC, and the Dutch Public Prosecutor (“DPP”), and are cooperating with the DOJ, 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 any investigations by the DOJ, SEC, or DPP. We are unable to predict what, if any, action may be taken by the DOJ, 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 fines, penalties, disgorgement, equitable relief or other losses would have a material adverse effect on our financial condition or liquidity. 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 $27.1 million and $31.0 million at September 30, 2020 and December 31, 2019, 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. Other We have contracts with certain of our customers, which serve as guarantees on product delivery and performance according to customer specifications that can cover both shipments on an individual basis as well as blanket coverage of multiple shipments under certain customer supply contracts. The financial coverage provided by these guarantees is typically based on a percentage of net sales value. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases: We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides details of our lease contracts for the three-month and nine-month periods ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating lease cost $ 8,085 $ 7,939 $ 25,298 $ 25,741 Finance lease cost: Amortization of right of use assets 126 157 433 471 Interest on lease liabilities 697 31 1,977 96 Total finance lease cost 823 188 2,410 567 Short-term lease cost 3,427 2,587 9,824 6,422 Variable lease cost 2,312 1,541 6,344 4,059 Total lease cost $ 14,647 $ 12,255 $ 43,876 $ 36,789 Supplemental cash flow information related to our lease contracts for the nine-month periods ended September 30, 2020 and 2019 is as follows (in thousands): Nine Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28,074 $ 22,486 Operating cash flows from finance leases 1,156 96 Financing cash flows from finance leases 513 509 Right-of-use assets obtained in exchange for lease obligations: Operating leases 19,743 21,578 Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at September 30, 2020 and December 31, 2019 is as follows (in thousands, except as noted): September 30, 2020 December 31, 2019 Operating leases: Other assets $ 132,777 $ 133,864 Accrued expenses 18,013 23,137 Other noncurrent liabilities 116,394 114,686 Total operating lease liabilities 134,407 137,823 Finance leases: Net property, plant and equipment 58,962 59,494 Current portion of long-term debt (a) 1,412 636 Long-term debt 58,576 58,888 Total finance lease liabilities 59,988 59,524 Weighted average remaining lease term (in years): Operating leases 16.4 11.4 Finance leases 27.7 28.3 Weighted average discount rate (%): Operating leases 4.06 % 3.84 % Finance leases 4.56 % 4.56 % (a) Balance includes accrued interest of finance lease. Maturities of lease liabilities as of September 30, 2020 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2020 $ 7,414 $ 541 2021 19,663 2,165 2022 15,477 4,444 2023 13,708 4,444 2024 12,369 4,444 Thereafter 149,025 94,361 Total lease payments 217,656 110,399 Less imputed interest 83,249 50,411 Total $ 134,407 $ 59,988 |
Leases | Leases: We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides details of our lease contracts for the three-month and nine-month periods ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating lease cost $ 8,085 $ 7,939 $ 25,298 $ 25,741 Finance lease cost: Amortization of right of use assets 126 157 433 471 Interest on lease liabilities 697 31 1,977 96 Total finance lease cost 823 188 2,410 567 Short-term lease cost 3,427 2,587 9,824 6,422 Variable lease cost 2,312 1,541 6,344 4,059 Total lease cost $ 14,647 $ 12,255 $ 43,876 $ 36,789 Supplemental cash flow information related to our lease contracts for the nine-month periods ended September 30, 2020 and 2019 is as follows (in thousands): Nine Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28,074 $ 22,486 Operating cash flows from finance leases 1,156 96 Financing cash flows from finance leases 513 509 Right-of-use assets obtained in exchange for lease obligations: Operating leases 19,743 21,578 Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at September 30, 2020 and December 31, 2019 is as follows (in thousands, except as noted): September 30, 2020 December 31, 2019 Operating leases: Other assets $ 132,777 $ 133,864 Accrued expenses 18,013 23,137 Other noncurrent liabilities 116,394 114,686 Total operating lease liabilities 134,407 137,823 Finance leases: Net property, plant and equipment 58,962 59,494 Current portion of long-term debt (a) 1,412 636 Long-term debt 58,576 58,888 Total finance lease liabilities 59,988 59,524 Weighted average remaining lease term (in years): Operating leases 16.4 11.4 Finance leases 27.7 28.3 Weighted average discount rate (%): Operating leases 4.06 % 3.84 % Finance leases 4.56 % 4.56 % (a) Balance includes accrued interest of finance lease. Maturities of lease liabilities as of September 30, 2020 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2020 $ 7,414 $ 541 2021 19,663 2,165 2022 15,477 4,444 2023 13,708 4,444 2024 12,369 4,444 Thereafter 149,025 94,361 Total lease payments 217,656 110,399 Less imputed interest 83,249 50,411 Total $ 134,407 $ 59,988 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment 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 inter-segment transfers of raw materials at cost and allocations for certain corporate costs. The Company’s chief operating decision maker uses adjusted EBITDA (as defined below) to assess the ongoing performance of the Company’s business segments and to allocate resources. The Company defines adjusted EBITDA as earnings before interest, 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. Three Months Ended Nine Months Ended 2020 2019 2020 2019 (In thousands) (In thousands) Net sales: Lithium $ 265,646 $ 330,386 $ 786,186 $ 947,030 Bromine Specialties 237,193 256,267 701,564 760,752 Catalysts 197,919 261,346 602,179 779,295 All Other 46,110 31,748 159,833 109,786 Total net sales $ 746,868 $ 879,747 $ 2,249,762 $ 2,596,863 Adjusted EBITDA: Lithium $ 97,789 $ 127,459 $ 270,962 $ 384,854 Bromine Specialties 79,448 88,814 235,751 248,743 Catalysts 37,834 66,944 108,081 193,890 All Other 24,985 10,448 66,407 28,931 Corporate (24,001) (39,314) (83,588) (114,300) Total adjusted EBITDA $ 216,055 $ 254,351 $ 597,613 $ 742,118 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 Three months ended September 30, 2020 Net income (loss) attributable to Albemarle Corporation $ 69,102 $ 66,548 $ 25,176 $ 160,826 $ 22,798 $ (85,323) $ 98,301 Depreciation and amortization 28,687 12,900 12,658 54,245 2,187 2,247 58,679 Restructuring and other (a) — — — — — 2,251 2,251 Acquisition and integration related costs (b) — — — — — 5,928 5,928 Interest and financing expenses — — — — — 19,227 19,227 Income tax expense — — — — — 30,653 30,653 Non-operating pension and OPEB items — — — — — (2,901) (2,901) Other (c) — — — — — 3,917 3,917 Adjusted EBITDA $ 97,789 $ 79,448 $ 37,834 $ 215,071 $ 24,985 $ (24,001) $ 216,055 Three months ended September 30, 2019 Net income (loss) attributable to Albemarle Corporation $ 102,136 $ 75,224 $ 54,345 $ 231,705 $ 8,305 $ (84,940) $ 155,070 Depreciation and amortization 25,212 12,448 12,599 50,259 2,143 2,085 54,487 Acquisition and integration related costs (b) — — — — — 4,114 4,114 Interest and financing expenses — — — — — 11,108 11,108 Income tax expense — — — — — 25,341 25,341 Non-operating pension and OPEB items — — — — — (551) (551) Other (d) 111 1,142 — 1,253 — 3,529 4,782 Adjusted EBITDA $ 127,459 $ 88,814 $ 66,944 $ 283,217 $ 10,448 $ (39,314) $ 254,351 Nine months ended September 30, 2020 Net income (loss) attributable to Albemarle Corporation $ 188,380 $ 198,905 $ 70,770 $ 458,055 $ 60,069 $ (226,995) $ 291,129 Depreciation and amortization 82,582 36,846 37,311 156,739 6,338 7,137 170,214 Restructuring and other (a) — — — — — 10,831 10,831 Acquisition and integration related costs (b) — — — — — 14,349 14,349 Interest and financing expenses — — — — — 53,964 53,964 Income tax expense — — — — — 64,526 64,526 Non-operating pension and OPEB items — — — — — (8,704) (8,704) Other (c) — — — — — 1,304 1,304 Adjusted EBITDA $ 270,962 $ 235,751 $ 108,081 $ 614,794 $ 66,407 $ (83,588) $ 597,613 Nine months ended September 30, 2019 Net income (loss) attributable to Albemarle Corporation $ 312,609 $ 212,320 $ 156,328 $ 681,257 $ 22,629 $ (261,049) $ 442,837 Depreciation and amortization 71,669 35,281 37,562 144,512 6,302 5,904 156,718 Restructuring and other (a) — — — — — 5,290 5,290 Acquisition and integration related costs (b) — — — — — 14,388 14,388 Gain on sale of property (e) — — — — — (11,079) (11,079) Interest and financing expenses — — — — — 35,295 35,295 Income tax expense — — — — — 93,266 93,266 Non-operating pension and OPEB items — — — — — (1,810) (1,810) Other (d) 576 1,142 — 1,718 — 5,495 7,213 Adjusted EBITDA $ 384,854 $ 248,743 $ 193,890 $ 827,487 $ 28,931 $ (114,300) $ 742,118 (a) In 2020, we recorded severance expenses as part of business reorganization plans, impacting each of our businesses and Corporate, primarily in the U.S., Germany and with our Jordanian joint venture partner. During the three months ended September 30, 2020, we recorded severance expenses of $2.3 million in SG&A. During the nine months ended September 30, 2020, we recorded expenses of $0.7 million in Cost of goods sold, $10.4 million in SG&A and a $0.3 million gain in Net income attributable to noncontrolling interests for the portion of severance expense allocated to our Jordanian joint venture partner. The balance of unpaid severance is recorded in Accrued expenses and is expected to primarily be paid through 2021. During the nine months ended September 30, 2019, severance expenses of $5.3 million, respectively, were recorded in SG&A as part of a business reorganization plan primarily in Catalysts, Lithium and Corporate. (b) Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in SG&A. (c) Included amounts for the three months ended September 30, 2020 recorded in: ▪ SG&A - $3.8 million of a net expense primarily relating to the increase of environmental reserves at non-operating businesses we have previously divested. ▪ Other expenses, net - $0.2 million loss resulting from the settlement of a historical legal matter of an acquired company. Included amounts for the nine months ended September 30, 2020 recorded in: • SG&A - $3.8 million of a net expense primarily relating to the increase of environmental reserves at non-operating businesses we have previously divested. ▪ Other expenses, net - $2.5 million net gain resulting from the settlement of legal matters related to a business sold or a site in the process of being sold, and $0.8 million net gain primarily relating to the sale of idle properties in Germany, partially offset by a $0.8 million loss resulting from the adjustment of indemnifications related to previously disposed businesses. (d) Included amounts for the three months ended September 30, 2019 recorded in: ▪ Cost of goods sold - $0.1 million related to non-routine labor and compensation related costs in Chile that were outside normal compensation arrangements. ▪ SG&A - $1.1 million of a write-off of uncollectable accounts receivable from a terminated distributor in the Bromine Specialties 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, as well as a net loss of $0.4 million primarily resulting from the settlement of legal matters related to previously disposed businesses or recorded in purchase accounting. Included amounts for the nine months ended September 30, 2019 recorded in: ▪ Cost of goods sold - $0.6 million related to non-routine labor and compensation related costs in Chile that were outside normal compensation arrangements. ▪ SG&A - $1.0 million of shortfall contributions for our multiemployer plan financial improvement plan and $1.1 million of a write-off of uncollectable accounts receivable from a terminated distributor in the Bromine Specialities 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, a net loss of $0.4 million primarily resulting from the settlement of legal matters related to previously disposed businesses or recorded in purchase accounting, and $0.9 million of a net loss primarily resulting from the revision of indemnifications and other liabilities related to previously disposed businesses. (e) Gain recorded in Other expenses, net related to the sale of land in Pasadena, Texas not used as part of our operations. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits: The components of pension and postretirement benefits cost (credit) for the three-month and nine-month periods ended September 30, 2020 and 2019 were as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Pension Benefits Cost (Credit): Service cost $ 1,202 $ 1,118 $ 3,623 $ 3,371 Interest cost 6,696 8,314 20,049 24,854 Expected return on assets (10,065) (9,414) (30,156) (28,311) Amortization of prior service benefit 9 (5) 27 7 Total net pension benefits (credit) cost $ (2,158) $ 13 $ (6,457) $ (79) Postretirement Benefits Cost: Service cost $ 27 $ 24 $ 79 $ 73 Interest cost 468 549 1,403 1,647 Total net postretirement benefits cost $ 495 $ 573 $ 1,482 $ 1,720 Total net pension and postretirement benefits (credit) cost $ (1,663) $ 586 $ (4,975) $ 1,641 All components of net benefit cost (credit), other than service cost, are included in Other expenses, net on the consolidated statements of income. During the three-month and nine-month periods ended September 30, 2020, we made contributions of $2.7 million and $7.9 million, respectively, to our qualified and nonqualified pension plans. During the three-month and nine-month periods ended September 30, 2019, we made contributions of $2.1 million and $8.6 million, respectively, to our qualified and nonqualified pension plans. We paid $0.9 million and $2.5 million in premiums to the U.S. postretirement benefit plan during the three-month and nine-month periods ended September 30, 2020, respectively. During the three-month and nine-month periods ended September 30, 2019, we paid $0.8 million and $2.1 million, respectively, in premiums to the U.S. postretirement benefit plan. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
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 condensed 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. September 30, 2020 December 31, 2019 Recorded Fair Value Recorded Fair Value (In thousands) Long-term debt $ 3,560,816 $ 3,649,323 $ 3,069,417 $ 3,173,341 Foreign Currency Forward Contracts—During 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 September 30, 2020 and December 31, 2019, we had outstanding designated foreign currency forward contracts with notional values totaling the equivalent of $187.3 million and $481.2 million, respectively. We also enter into foreign currency forward contracts in connection with our risk management strategies that have not been designated as hedging instruments under ASC 815, Derivatives and Hedging , in an attempt to minimize the financial impact of changes in foreign currency exchange rates. These derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. The fair values of our non-designated foreign currency forward contracts are estimated based on current settlement values. At September 30, 2020 and December 31, 2019, we had outstanding non-designated foreign currency forward contracts with notional values totaling $658.1 million and $1.15 billion, 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 condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities Designated as hedging instruments (a) $ 2,820 $ — $ 5,369 $ — Not Designated as hedging instruments (b) 1,075 1,834 2,032 3,613 Total $ 3,895 $ 1,834 $ 7,401 $ 3,613 (a) Included $2.5 million in Other current assets and $0.3 million in Other assets at September 30, 2020 and $3.7 million in Other current assets and $1.7 million in Other assets at December 31, 2019. (b) Included $1.1 million in Other current assets and $1.8 million in Accrued expenses at September 30, 2020 and $2.0 million in Other current assets and $3.6 million in Accrued expenses at December 31, 2019. The following table summarizes the net gains (losses) recognized for our foreign currency forward contracts during the three-month and nine-month periods ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Designated as hedging instruments Gains (losses) recognized in Other comprehensive income $ 6,993 $ — $ (6,822) $ — Not designated as hedging instruments Gains (losses) recognized in Other expenses, net (a) $ 3,102 $ (19,331) $ (5,201) $ (27,647) (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 nine-month periods ended September 30, 2020 and 2019, we recorded net cash settlements of $15.7 million and $25.5 million, respectively, in Other, net, in our condensed consolidated statements of cash flows. As of September 30, 2020, 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 | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 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) $ 30,884 $ 30,884 $ — $ — Private equity securities (b) $ 27 $ 27 $ — $ — Private equity securities measured at net asset value (b)(c) $ 4,638 $ — $ — $ — Foreign currency forward contracts (d) $ 3,895 $ — $ 3,895 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 30,884 $ 30,884 $ — $ — Foreign currency forward contracts (d) $ 1,834 $ — $ 1,834 $ — 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 $ — (a) We maintain an Executive Deferred Compensation Plan (“EDCP”) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1. (b) Primarily consists of private equity securities classified as available-for-sale and are reported in Investments in the condensed consolidated balance sheets. The changes in fair value are reported in Other expenses, net, in our consolidated statements of income. (c) Holdings in certain private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. (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 13, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income: The components and activity in Accumulated other comprehensive (loss) income (net of deferred income taxes) consisted of the following during the periods indicated below (in thousands): Foreign Currency Translation Pension and Post-Retirement Benefits (a) Net Investment Hedge Cash Flow Hedge (b) Interest Rate Swap (c) Total Three months ended September 30, 2020 Balance at June 30, 2020 $ (488,429) $ 490 $ 77,103 $ (8,968) $ (11,327) $ (431,131) Other comprehensive income (loss) before reclassifications 37,489 — (12,408) 6,993 — 32,074 Amounts reclassified from accumulated other comprehensive loss — 10 — — 647 657 Other comprehensive income (loss), net of tax 37,489 10 (12,408) 6,993 647 32,731 Other comprehensive income attributable to noncontrolling interests (67) — — — — (67) Balance at September 30, 2020 $ (451,007) $ 500 $ 64,695 $ (1,975) $ (10,680) $ (398,467) Three months ended September 30, 2019 Balance at June 30, 2019 $ (407,937) $ (146) $ 72,604 $ — $ (13,932) $ (349,411) Other comprehensive (loss) income before reclassifications (100,069) — 12,745 — — (87,324) Amounts reclassified from accumulated other comprehensive loss — (5) — — 641 636 Other comprehensive (loss) income, net of tax (100,069) (5) 12,745 — 641 (86,688) Other comprehensive loss attributable to noncontrolling interests 122 — — — — 122 Balance at September 30, 2019 $ (507,884) $ (151) $ 85,349 $ — $ (13,291) $ (435,977) Nine months ended September 30, 2020 Balance at December 31, 2019 $ (469,210) $ 473 $ 80,778 $ 4,847 $ (12,623) $ (395,735) Other comprehensive income (loss) before reclassifications 18,350 — (16,083) (6,822) — (4,555) Amounts reclassified from accumulated other comprehensive loss — 27 — — 1,943 1,970 Other comprehensive income (loss), net of tax 18,350 27 (16,083) (6,822) 1,943 (2,585) Other comprehensive income attributable to noncontrolling interests (147) — — — — (147) Balance at September 30, 2020 $ (451,007) $ 500 $ 64,695 $ (1,975) $ (10,680) $ (398,467) Nine months ended September 30, 2019 Balance at December 31, 2018 $ (407,646) $ (159) $ 72,337 $ — $ (15,214) $ (350,682) Other comprehensive (loss) income before reclassifications (100,380) — 13,012 — — (87,368) Amounts reclassified from accumulated other comprehensive loss — 8 — — 1,923 1,931 Other comprehensive (loss) income, net of tax (100,380) 8 13,012 — 1,923 (85,437) Other comprehensive loss attributable to noncontrolling interests 142 — — — — 142 Balance at September 30, 2019 $ (507,884) $ (151) $ 85,349 $ — $ (13,291) $ (435,977) (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 12, “Pension Plans and Other Postretirement Benefits,” for additional information. (b) We entered into a foreign currency forward contract, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging . See Note 13, “Fair Value of Financial Instruments,” for additional information. (c) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. The amount of income tax (expense) benefit allocated to each component of Other comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2020 and 2019 is provided in the following tables (in thousands): Foreign Currency Translation Pension and Postretirement Benefits Net Investment Hedge Cash Flow Hedge Interest Rate Swap Three months ended September 30, 2020 Other comprehensive income (loss), before tax $ 37,494 $ 10 $ (16,029) $ 6,993 $ 834 Income tax (expense) benefit (5) — 3,621 — (187) Other comprehensive income (loss), net of tax $ 37,489 $ 10 $ (12,408) $ 6,993 $ 647 Three months ended September 30, 2019 Other comprehensive (loss) income, before tax $ (100,069) $ (3) $ 16,584 $ — $ 834 Income tax expense — (2) (3,839) — (193) Other comprehensive (loss) income, net of tax $ (100,069) $ (5) $ 12,745 $ — $ 641 Nine months ended September 30, 2020 Other comprehensive income (loss), before tax $ 18,352 $ 28 $ (20,755) $ (6,822) $ 2,502 Income tax (expense) benefit (2) (1) 4,672 — (559) Other comprehensive income (loss), net of tax $ 18,350 $ 27 $ (16,083) $ (6,822) $ 1,943 Nine months ended September 30, 2019 Other comprehensive (loss) income, before tax $ (100,379) $ 10 $ 16,932 $ — $ 2,502 Income tax expense (1) (2) (3,920) — (579) Other comprehensive (loss) income, net of tax $ (100,380) $ 8 $ 13,012 $ — $ 1,923 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions: Our consolidated statements of income include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Sales to unconsolidated affiliates $ 4,863 $ 4,465 $ 17,361 $ 14,128 Purchases from unconsolidated affiliates (a) $ 10,742 $ 41,304 $ 142,366 $ 160,420 (a) Purchases from unconsolidated affiliates primarily relate to purchases from our Windfield joint venture. Our condensed consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands): September 30, 2020 December 31, 2019 Receivables from unconsolidated affiliates $ 2,765 $ 7,163 Payables to unconsolidated affiliates $ 7,263 $ 35,502 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information: Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands): Nine Months Ended 2020 2019 Supplemental non-cash disclosure related to investing activities: Capital expenditures included in Accounts payable $ 167,393 $ 174,510 As part of the purchase price paid for the acquisition of a 60% interest in MRL’s Wodgina Project, the Company transferred $131.9 million of its construction in progress of the designated Kemerton assets during the nine months ended September 30, 2020, representing MRL’s 40% interest in the assets. Since the acquisition, we have transferred $296.6 million of construction in progress to MRL through September 30, 2020. The cash outflow for these assets is recorded in Capital expenditures within Cash flows from investing activities on the condensed 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. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (“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 became effective on January 1, 2020 and did not have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill imp airment. 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 became effective on January 1, 2020 and did not have a significant impact on our financial statements. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | In June 2016, the Financial Accounting Standards Board (“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 became effective on January 1, 2020 and did not have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill imp airment. 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 became effective on January 1, 2020 and did not have a significant impact on our financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Mineral Resources Limited Wodgina Project | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions | 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 22,566 Total purchase price $ 1,322,566 Net assets acquired: Inventories $ 33,900 Other current assets 11,280 Property, plant and equipment: Land improvements 2,912 Buildings and improvements 19,268 Machinery and equipment 163,808 Mineral rights and reserves 1,058,700 Construction in progress 103,700 Current liabilities (10,695) Long-term debt (a) (55,806) Other noncurrent liabilities (23,296) Total identifiable net assets 1,303,771 Goodwill 18,795 Total net assets acquired $ 1,322,566 (a) Represents 60% ownership interest in finance lease acquired. See Note 10, “Leases,” for further information on the Company’s leases. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table summarizes the changes in goodwill by reportable segment for the nine months ended September 30, 2020 (in thousands): Lithium Bromine Specialties Catalysts All Other Total Balance at December 31, 2019 $ 1,370,846 $ 20,319 $ 181,034 $ 6,586 $ 1,578,785 Acquisitions (a) (12,967) — — — (12,967) Foreign currency translation adjustments and other 30,522 — 6,709 — 37,231 Balance at September 30, 2020 $ 1,388,401 $ 20,319 $ 187,743 $ 6,586 $ 1,603,049 (a) Represents preliminary purchase price adjustments for the Wodgina Project acquisition. See Note 2, “Acquisitions” for additional information. |
Other Intangibles | The following table summarizes the changes in other intangibles and related accumulated amortization for the nine months ended September 30, 2020 (in thousands): Customer Lists and Relationships Trade Names and Trademarks (a) Patents and Technology Other Total Gross Asset Value Balance at December 31, 2019 $ 422,462 $ 18,087 $ 55,020 $ 41,282 $ 536,851 Foreign currency translation adjustments and other 12,699 104 1,355 (1,524) 12,634 Balance at September 30, 2020 $ 435,161 $ 18,191 $ 56,375 $ 39,758 $ 549,485 Accumulated Amortization Balance at December 31, 2019 $ (116,749) $ (7,938) $ (36,197) $ (21,345) $ (182,229) Amortization (16,789) — (1,022) (752) (18,563) Foreign currency translation adjustments and other (3,729) (113) (929) (3) (4,774) Balance at September 30, 2020 $ (137,267) $ (8,051) $ (38,148) $ (22,100) $ (205,566) Net Book Value at December 31, 2019 $ 305,713 $ 10,149 $ 18,823 $ 19,937 $ 354,622 Net Book Value at September 30, 2020 $ 297,894 $ 10,140 $ 18,227 $ 17,658 $ 343,919 (a) Net Book Value includes only indefinite-lived intangible assets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earning Per Share | Basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2020 and 2019 are calculated as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Basic earnings per share Numerator: Net income attributable to Albemarle Corporation $ 98,301 $ 155,070 $ 291,129 $ 442,837 Denominator: Weighted-average common shares for basic earnings per share 106,386 105,999 106,314 105,920 Basic earnings per share $ 0.92 $ 1.46 $ 2.74 $ 4.18 Diluted earnings per share Numerator: Net income attributable to Albemarle Corporation $ 98,301 $ 155,070 $ 291,129 $ 442,837 Denominator: Weighted-average common shares for basic earnings per share 106,386 105,999 106,314 105,920 Incremental shares under stock compensation plans 487 300 326 404 Weighted-average common shares for diluted earnings per share 106,873 106,299 106,640 106,324 Diluted earnings per share $ 0.92 $ 1.46 $ 2.73 $ 4.16 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Breakdown of Inventories | The following table provides a breakdown of inventories at September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, 2020 2019 Finished goods $ 525,071 $ 495,639 Raw materials and work in process (a) 228,637 205,781 Stores, supplies and other 74,372 67,564 Total $ 828,080 $ 768,984 (a) Included $124.3 million and $109.3 million at September 30, 2020 and December 31, 2019, respectively, of work in process in our Lithium segment. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt at September 30, 2020 and December 31, 2019 consisted of the following (in thousands): September 30, December 31, 2020 2019 1.125% notes, net of unamortized discount and debt issuance costs of $4,121 at September 30, 2020 and $5,659 at December 31, 2019 $ 577,479 $ 549,241 1.625% notes, net of unamortized discount and debt issuance costs of $5,846 at September 30, 2020 and $5,696 at December 31, 2019 575,754 549,204 1.875% Senior notes, net of unamortized discount and debt issuance costs of $1,172 at September 30, 2020 and $1,831 at December 31, 2019. 455,888 434,241 3.450% Senior notes, net of unamortized discount and debt issuance costs of $3,153 at September 30, 2020 and $3,533 at December 31, 2019 296,847 296,467 4.15% Senior notes, net of unamortized discount and debt issuance costs of $2,032 at September 30, 2020 and $2,398 at December 31, 2019 422,968 422,603 5.45% Senior notes, net of unamortized discount and debt issuance costs of $3,734 at September 30, 2020 and $3,850 at December 31, 2019 346,266 346,150 Floating rate notes, net of unamortized debt issuance costs of $815 at September 30, 2020 and $1,169 at December 31, 2019 199,185 198,831 Credit facilities 213,196 — Commercial paper notes 390,000 186,700 Variable-rate foreign bank loans 7,570 7,296 Finance lease obligations 59,167 59,524 Total long-term debt 3,544,320 3,050,257 Less amounts due within one year 603,787 187,336 Long-term debt, less current portion $ 2,940,533 $ 2,862,921 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity in Recorded Environmental Liabilities | We had the following activity in our recorded environmental liabilities for the nine months ended September 30, 2020 (in thousands): Beginning balance at December 31, 2019 $ 42,592 Expenditures (2,560) Accretion of discount 652 Additions and changes in estimates 3,857 Foreign currency translation adjustments and other 805 Ending balance at September 30, 2020 45,346 Less amounts reported in Accrued expenses 9,654 Amounts reported in Other noncurrent liabilities $ 35,692 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost | The following table provides details of our lease contracts for the three-month and nine-month periods ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating lease cost $ 8,085 $ 7,939 $ 25,298 $ 25,741 Finance lease cost: Amortization of right of use assets 126 157 433 471 Interest on lease liabilities 697 31 1,977 96 Total finance lease cost 823 188 2,410 567 Short-term lease cost 3,427 2,587 9,824 6,422 Variable lease cost 2,312 1,541 6,344 4,059 Total lease cost $ 14,647 $ 12,255 $ 43,876 $ 36,789 Supplemental cash flow information related to our lease contracts for the nine-month periods ended September 30, 2020 and 2019 is as follows (in thousands): Nine Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28,074 $ 22,486 Operating cash flows from finance leases 1,156 96 Financing cash flows from finance leases 513 509 Right-of-use assets obtained in exchange for lease obligations: Operating leases 19,743 21,578 |
Supplemental Balance Sheet Information related to Leases | Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at September 30, 2020 and December 31, 2019 is as follows (in thousands, except as noted): September 30, 2020 December 31, 2019 Operating leases: Other assets $ 132,777 $ 133,864 Accrued expenses 18,013 23,137 Other noncurrent liabilities 116,394 114,686 Total operating lease liabilities 134,407 137,823 Finance leases: Net property, plant and equipment 58,962 59,494 Current portion of long-term debt (a) 1,412 636 Long-term debt 58,576 58,888 Total finance lease liabilities 59,988 59,524 Weighted average remaining lease term (in years): Operating leases 16.4 11.4 Finance leases 27.7 28.3 Weighted average discount rate (%): Operating leases 4.06 % 3.84 % Finance leases 4.56 % 4.56 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2020 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2020 $ 7,414 $ 541 2021 19,663 2,165 2022 15,477 4,444 2023 13,708 4,444 2024 12,369 4,444 Thereafter 149,025 94,361 Total lease payments 217,656 110,399 Less imputed interest 83,249 50,411 Total $ 134,407 $ 59,988 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2020 were as follows (in thousands): Operating Leases Finance Leases Remainder of 2020 $ 7,414 $ 541 2021 19,663 2,165 2022 15,477 4,444 2023 13,708 4,444 2024 12,369 4,444 Thereafter 149,025 94,361 Total lease payments 217,656 110,399 Less imputed interest 83,249 50,411 Total $ 134,407 $ 59,988 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segments Summarized Financial Information | Three Months Ended Nine Months Ended 2020 2019 2020 2019 (In thousands) (In thousands) Net sales: Lithium $ 265,646 $ 330,386 $ 786,186 $ 947,030 Bromine Specialties 237,193 256,267 701,564 760,752 Catalysts 197,919 261,346 602,179 779,295 All Other 46,110 31,748 159,833 109,786 Total net sales $ 746,868 $ 879,747 $ 2,249,762 $ 2,596,863 Adjusted EBITDA: Lithium $ 97,789 $ 127,459 $ 270,962 $ 384,854 Bromine Specialties 79,448 88,814 235,751 248,743 Catalysts 37,834 66,944 108,081 193,890 All Other 24,985 10,448 66,407 28,931 Corporate (24,001) (39,314) (83,588) (114,300) Total adjusted EBITDA $ 216,055 $ 254,351 $ 597,613 $ 742,118 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Domestic and Foreign Pension and Postretirement Defined Benefit Plans | The components of pension and postretirement benefits cost (credit) for the three-month and nine-month periods ended September 30, 2020 and 2019 were as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Pension Benefits Cost (Credit): Service cost $ 1,202 $ 1,118 $ 3,623 $ 3,371 Interest cost 6,696 8,314 20,049 24,854 Expected return on assets (10,065) (9,414) (30,156) (28,311) Amortization of prior service benefit 9 (5) 27 7 Total net pension benefits (credit) cost $ (2,158) $ 13 $ (6,457) $ (79) Postretirement Benefits Cost: Service cost $ 27 $ 24 $ 79 $ 73 Interest cost 468 549 1,403 1,647 Total net postretirement benefits cost $ 495 $ 573 $ 1,482 $ 1,720 Total net pension and postretirement benefits (credit) cost $ (1,663) $ 586 $ (4,975) $ 1,641 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Long-Term Debt | The carrying value of our remaining long-term debt reported in the accompanying condensed 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. September 30, 2020 December 31, 2019 Recorded Fair Value Recorded Fair Value (In thousands) Long-term debt $ 3,560,816 $ 3,649,323 $ 3,069,417 $ 3,173,341 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair value of our foreign currency forward contracts included in the condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities Designated as hedging instruments (a) $ 2,820 $ — $ 5,369 $ — Not Designated as hedging instruments (b) 1,075 1,834 2,032 3,613 Total $ 3,895 $ 1,834 $ 7,401 $ 3,613 (a) Included $2.5 million in Other current assets and $0.3 million in Other assets at September 30, 2020 and $3.7 million in Other current assets and $1.7 million in Other assets at December 31, 2019. (b) Included $1.1 million in Other current assets and $1.8 million in Accrued expenses at September 30, 2020 and $2.0 million in Other current assets and $3.6 million in Accrued expenses at December 31, 2019. |
Derivative Instruments, Losses | The following table summarizes the net gains (losses) recognized for our foreign currency forward contracts during the three-month and nine-month periods ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Designated as hedging instruments Gains (losses) recognized in Other comprehensive income $ 6,993 $ — $ (6,822) $ — Not designated as hedging instruments Gains (losses) recognized in Other expenses, net (a) $ 3,102 $ (19,331) $ (5,201) $ (27,647) (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. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 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) $ 30,884 $ 30,884 $ — $ — Private equity securities (b) $ 27 $ 27 $ — $ — Private equity securities measured at net asset value (b)(c) $ 4,638 $ — $ — $ — Foreign currency forward contracts (d) $ 3,895 $ — $ 3,895 $ — Liabilities: Obligations under executive deferred compensation plan (a) $ 30,884 $ 30,884 $ — $ — Foreign currency forward contracts (d) $ 1,834 $ — $ 1,834 $ — 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 $ — (a) We maintain an Executive Deferred Compensation Plan (“EDCP”) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1. (b) Primarily consists of private equity securities classified as available-for-sale and are reported in Investments in the condensed consolidated balance sheets. The changes in fair value are reported in Other expenses, net, in our consolidated statements of income. (c) Holdings in certain private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. (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 13, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Components and Activity in Accumulated Other Comprehensive (Loss) Income Net of Deferred Income Taxes | The components and activity in Accumulated other comprehensive (loss) income (net of deferred income taxes) consisted of the following during the periods indicated below (in thousands): Foreign Currency Translation Pension and Post-Retirement Benefits (a) Net Investment Hedge Cash Flow Hedge (b) Interest Rate Swap (c) Total Three months ended September 30, 2020 Balance at June 30, 2020 $ (488,429) $ 490 $ 77,103 $ (8,968) $ (11,327) $ (431,131) Other comprehensive income (loss) before reclassifications 37,489 — (12,408) 6,993 — 32,074 Amounts reclassified from accumulated other comprehensive loss — 10 — — 647 657 Other comprehensive income (loss), net of tax 37,489 10 (12,408) 6,993 647 32,731 Other comprehensive income attributable to noncontrolling interests (67) — — — — (67) Balance at September 30, 2020 $ (451,007) $ 500 $ 64,695 $ (1,975) $ (10,680) $ (398,467) Three months ended September 30, 2019 Balance at June 30, 2019 $ (407,937) $ (146) $ 72,604 $ — $ (13,932) $ (349,411) Other comprehensive (loss) income before reclassifications (100,069) — 12,745 — — (87,324) Amounts reclassified from accumulated other comprehensive loss — (5) — — 641 636 Other comprehensive (loss) income, net of tax (100,069) (5) 12,745 — 641 (86,688) Other comprehensive loss attributable to noncontrolling interests 122 — — — — 122 Balance at September 30, 2019 $ (507,884) $ (151) $ 85,349 $ — $ (13,291) $ (435,977) Nine months ended September 30, 2020 Balance at December 31, 2019 $ (469,210) $ 473 $ 80,778 $ 4,847 $ (12,623) $ (395,735) Other comprehensive income (loss) before reclassifications 18,350 — (16,083) (6,822) — (4,555) Amounts reclassified from accumulated other comprehensive loss — 27 — — 1,943 1,970 Other comprehensive income (loss), net of tax 18,350 27 (16,083) (6,822) 1,943 (2,585) Other comprehensive income attributable to noncontrolling interests (147) — — — — (147) Balance at September 30, 2020 $ (451,007) $ 500 $ 64,695 $ (1,975) $ (10,680) $ (398,467) Nine months ended September 30, 2019 Balance at December 31, 2018 $ (407,646) $ (159) $ 72,337 $ — $ (15,214) $ (350,682) Other comprehensive (loss) income before reclassifications (100,380) — 13,012 — — (87,368) Amounts reclassified from accumulated other comprehensive loss — 8 — — 1,923 1,931 Other comprehensive (loss) income, net of tax (100,380) 8 13,012 — 1,923 (85,437) Other comprehensive loss attributable to noncontrolling interests 142 — — — — 142 Balance at September 30, 2019 $ (507,884) $ (151) $ 85,349 $ — $ (13,291) $ (435,977) (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 12, “Pension Plans and Other Postretirement Benefits,” for additional information. (b) We entered into a foreign currency forward contract, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging . See Note 13, “Fair Value of Financial Instruments,” for additional information. (c) The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. |
Amount of Income Tax (Expense) Benefit Allocated to Component Of Other Comprehensive Income (Loss) | The amount of income tax (expense) benefit allocated to each component of Other comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2020 and 2019 is provided in the following tables (in thousands): Foreign Currency Translation Pension and Postretirement Benefits Net Investment Hedge Cash Flow Hedge Interest Rate Swap Three months ended September 30, 2020 Other comprehensive income (loss), before tax $ 37,494 $ 10 $ (16,029) $ 6,993 $ 834 Income tax (expense) benefit (5) — 3,621 — (187) Other comprehensive income (loss), net of tax $ 37,489 $ 10 $ (12,408) $ 6,993 $ 647 Three months ended September 30, 2019 Other comprehensive (loss) income, before tax $ (100,069) $ (3) $ 16,584 $ — $ 834 Income tax expense — (2) (3,839) — (193) Other comprehensive (loss) income, net of tax $ (100,069) $ (5) $ 12,745 $ — $ 641 Nine months ended September 30, 2020 Other comprehensive income (loss), before tax $ 18,352 $ 28 $ (20,755) $ (6,822) $ 2,502 Income tax (expense) benefit (2) (1) 4,672 — (559) Other comprehensive income (loss), net of tax $ 18,350 $ 27 $ (16,083) $ (6,822) $ 1,943 Nine months ended September 30, 2019 Other comprehensive (loss) income, before tax $ (100,379) $ 10 $ 16,932 $ — $ 2,502 Income tax expense (1) (2) (3,920) — (579) Other comprehensive (loss) income, net of tax $ (100,380) $ 8 $ 13,012 $ — $ 1,923 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Our consolidated statements of income include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Sales to unconsolidated affiliates $ 4,863 $ 4,465 $ 17,361 $ 14,128 Purchases from unconsolidated affiliates (a) $ 10,742 $ 41,304 $ 142,366 $ 160,420 (a) Purchases from unconsolidated affiliates primarily relate to purchases from our Windfield joint venture. Our condensed consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands): September 30, 2020 December 31, 2019 Receivables from unconsolidated affiliates $ 2,765 $ 7,163 Payables to unconsolidated affiliates $ 7,263 $ 35,502 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands): Nine Months Ended 2020 2019 Supplemental non-cash disclosure related to investing activities: Capital expenditures included in Accounts payable $ 167,393 $ 174,510 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of goods sold | $ 492,812 | $ 569,880 | $ 1,520,329 | $ 1,677,596 |
Income before income taxes and equity in net income of unconsolidated investments | $ 121,544 | 163,723 | $ 325,092 | $ 484,653 |
Out-of-period adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of goods sold | $ 7,000 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Sep. 30, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,603,049 | $ 1,578,785 | |
Mineral Resources Limited Wodgina Project | |||
Business Acquisition [Line Items] | |||
Cash payments related to joint venture | 820,000 | ||
Consideration transferred | $ 1,300,000 | 1,322,566 | |
Cash payments related to joint venture, certain adjustments | 22,566 | ||
Inventories | 33,900 | ||
Other current assets | 11,280 | ||
Current liabilities | (10,695) | ||
Long-term debt | (55,806) | ||
Other noncurrent liabilities | (23,296) | ||
Other noncurrent liabilities | 1,303,771 | ||
Goodwill | 18,795 | ||
Total net assets acquired | 1,322,566 | ||
Ownership percentage | 60.00% | ||
Lithium Hydroxide Conversion Assets | |||
Business Acquisition [Line Items] | |||
Ownership percentage | 40.00% | ||
Lithium Hydroxide Conversion Assets | Mineral Resources Limited Wodgina Project | |||
Business Acquisition [Line Items] | |||
Consideration transferred | 480,000 | ||
Land improvements | Mineral Resources Limited Wodgina Project | |||
Business Acquisition [Line Items] | |||
Property, plant and equipment | 2,912 | ||
Building and improvements | Mineral Resources Limited Wodgina Project | |||
Business Acquisition [Line Items] | |||
Property, plant and equipment | 19,268 | ||
Machinery and equipment | Mineral Resources Limited Wodgina Project | |||
Business Acquisition [Line Items] | |||
Property, plant and equipment | 163,808 | ||
Mineral rights and reserves | Mineral Resources Limited Wodgina Project | |||
Business Acquisition [Line Items] | |||
Property, plant and equipment | 1,058,700 | ||
Construction in progress | Mineral Resources Limited Wodgina Project | |||
Business Acquisition [Line Items] | |||
Property, plant and equipment | $ 103,700 |
Acquisitions - Additional Detai
Acquisitions - Additional Details (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||||
Purchase price adjustments | $ (22,572) | $ 0 | ||||
Acquisition and integration related costs | $ 5,928 | $ 4,114 | 14,349 | 14,388 | ||
Net loss attributable to joint venture | 98,301 | 155,070 | 291,129 | 442,837 | ||
Net sales | 746,868 | 879,747 | 2,249,762 | 2,596,863 | ||
Goodwill | 1,603,049 | 1,603,049 | $ 1,578,785 | |||
Mineral Resources Limited Wodgina Project | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage | 60.00% | |||||
Consideration transferred | $ 1,300,000 | 1,322,566 | ||||
Cash payments related to joint venture | 820,000 | |||||
Purchase price adjustments | (22,600) | |||||
Net loss attributable to joint venture | 4,700 | 14,600 | ||||
Net sales | 0 | |||||
Goodwill | 18,795 | 18,795 | ||||
Purchase price allocation adjustments | 13,000 | 13,000 | ||||
Mineral Resources Limited Wodgina Project | Stamp Duty Tax | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition and integration related costs | 61,500 | |||||
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% | |||||
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 | 1,025,900 | 1,025,900 | ||||
Selling, general and administrative expenses | Mineral Resources Limited Wodgina Project | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition and integration related costs | $ 200 | $ 1,300 | $ 1,000 | $ 4,400 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Changes in Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 1,578,785 |
Foreign currency translation adjustments and other | 37,231 |
Balance at end of period | 1,603,049 |
Reportable Segments | Lithium | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 1,370,846 |
Foreign currency translation adjustments and other | 30,522 |
Balance at end of period | 1,388,401 |
Reportable Segments | Bromine Specialties | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 20,319 |
Foreign currency translation adjustments and other | 0 |
Balance at end of period | 20,319 |
Reportable Segments | Catalysts | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 181,034 |
Foreign currency translation adjustments and other | 6,709 |
Balance at end of period | 187,743 |
Reportable Segments | All Other | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 6,586 |
Foreign currency translation adjustments and other | 0 |
Balance at end of period | 6,586 |
Mineral Resources Limited Wodgina Project | |
Goodwill [Roll Forward] | |
Acquisitions | (12,967) |
Balance at end of period | 18,795 |
Mineral Resources Limited Wodgina Project | Reportable Segments | Lithium | |
Goodwill [Roll Forward] | |
Acquisitions | (12,967) |
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 |
Mineral Resources Limited Wodgina Project | Reportable Segments | All Other | |
Goodwill [Roll Forward] | |
Acquisitions | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Other Intangibles (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | $ 536,851 | |
Foreign currency translation adjustments and other | 12,634 | |
Gross Asset Value, End of Period | 549,485 | |
Accumulated Amortization, Beginning of Period | (182,229) | |
Amortization | (18,563) | |
Foreign currency translation adjustments and other | (4,774) | |
Accumulated Amortization, End of Period | (205,566) | |
Net Book Value | 343,919 | $ 354,622 |
Customer lists and relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 422,462 | |
Foreign currency translation adjustments and other | 12,699 | |
Gross Asset Value, End of Period | 435,161 | |
Accumulated Amortization, Beginning of Period | (116,749) | |
Amortization | (16,789) | |
Foreign currency translation adjustments and other | (3,729) | |
Accumulated Amortization, End of Period | (137,267) | |
Net Book Value | 297,894 | 305,713 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 18,087 | |
Foreign currency translation adjustments and other | 104 | |
Gross Asset Value, End of Period | 18,191 | |
Accumulated Amortization, Beginning of Period | (7,938) | |
Amortization | 0 | |
Foreign currency translation adjustments and other | (113) | |
Accumulated Amortization, End of Period | (8,051) | |
Net Book Value | 10,140 | 10,149 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 55,020 | |
Foreign currency translation adjustments and other | 1,355 | |
Gross Asset Value, End of Period | 56,375 | |
Accumulated Amortization, Beginning of Period | (36,197) | |
Amortization | (1,022) | |
Foreign currency translation adjustments and other | (929) | |
Accumulated Amortization, End of Period | (38,148) | |
Net Book Value | 18,227 | 18,823 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Asset Value, Beginning of Period | 41,282 | |
Foreign currency translation adjustments and other | (1,524) | |
Gross Asset Value, End of Period | 39,758 | |
Accumulated Amortization, Beginning of Period | (21,345) | |
Amortization | (752) | |
Foreign currency translation adjustments and other | (3) | |
Accumulated Amortization, End of Period | (22,100) | |
Net Book Value | $ 17,658 | $ 19,937 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Tax Expense (Benefit) [Line Items] | ||||
Effective income tax rate | 25.20% | 15.50% | 19.80% | 19.20% |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share From Continuing Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic earnings per share from continuing operations | ||||
Net income attributable to Albemarle Corporation | $ 98,301 | $ 155,070 | $ 291,129 | $ 442,837 |
Weighted-average common shares for basic earnings per share (in shares) | 106,386 | 105,999 | 106,314 | 105,920 |
Basic earnings per share (in dollars per share) | $ 0.92 | $ 1.46 | $ 2.74 | $ 4.18 |
Diluted earnings per share from continuing operations | ||||
Net income attributable to Albemarle Corporation | $ 98,301 | $ 155,070 | $ 291,129 | $ 442,837 |
Weighted-average common shares for basic earnings per share (in shares) | 106,386 | 105,999 | 106,314 | 105,920 |
Incremental shares under stock compensation plans (in shares) | 487 | 300 | 326 | 404 |
Weighted-average common shares outstanding - diluted (in shares) | 106,873 | 106,299 | 106,640 | 106,324 |
Diluted earnings per share (in dollars per share) | $ 0.92 | $ 1.46 | $ 2.73 | $ 4.16 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - $ / shares | 9 Months Ended | |||
Sep. 30, 2020 | Oct. 27, 2020 | Jul. 14, 2020 | Feb. 28, 2020 | |
Earnings Per Share Disclosure [Line Items] | ||||
Increase in dividend rate, percentage | 5.00% | |||
Cash dividend, amount per share (in dollars per share) | $ 0.385 | $ 0.385 | ||
Subsequent Event | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Cash dividend, amount per share (in dollars per share) | $ 0.385 | |||
Common Stock | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 45,706 |
Inventories - Breakdown of inve
Inventories - Breakdown of inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 525,071 | $ 495,639 |
Raw materials and work in process | 228,637 | 205,781 |
Stores, supplies and other | 74,372 | 67,564 |
Total inventories | $ 828,080 | $ 768,984 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Lithium | ||
Inventory [Line Items] | ||
Work in process related to Lithium | $ 124.3 | $ 109.3 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Windfield Holdings | ||
Schedule of Investments [Line Items] | ||
Equity method investment, ownership percentage | 49.00% | |
Carrying value of unconsolidated investment | $ 428.4 | $ 397.2 |
Other variable interest entities | ||
Schedule of Investments [Line Items] | ||
Carrying value of unconsolidated investment | $ 7.1 | $ 7.6 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 3,544,320 | $ 3,050,257 |
Current portion of long-term debt | 603,787 | 187,336 |
Long-term debt | $ 2,940,533 | 2,862,921 |
1.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 1.875% | |
Unsecured debt | 1.125% Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 577,479 | $ 549,241 |
Debt instrument, interest rate | 1.125% | 1.125% |
Unamortized discount and debt issuance costs | $ 4,121 | $ 5,659 |
Unsecured debt | 1.625% Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 575,754 | $ 549,204 |
Debt instrument, interest rate | 1.625% | 1.625% |
Unamortized discount and debt issuance costs | $ 5,846 | $ 5,696 |
Unsecured debt | Floating Rate Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 199,185 | 198,831 |
Unamortized debt issuance costs | 815 | 1,169 |
Senior notes | 1.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 455,888 | $ 434,241 |
Debt instrument, interest rate | 1.875% | 1.875% |
Unamortized discount and debt issuance costs | $ 1,172 | $ 1,831 |
Senior notes | 3.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 296,847 | $ 296,467 |
Debt instrument, interest rate | 3.45% | 3.45% |
Unamortized discount and debt issuance costs | $ 3,153 | $ 3,533 |
Senior notes | 4.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 422,968 | $ 422,603 |
Debt instrument, interest rate | 4.15% | 4.15% |
Unamortized discount and debt issuance costs | $ 2,032 | $ 2,398 |
Senior notes | 5.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 346,266 | $ 346,150 |
Debt instrument, interest rate | 5.45% | 5.45% |
Unamortized discount and debt issuance costs | $ 3,734 | $ 3,850 |
Credit facilities | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 213,196 | 0 |
Commercial paper notes | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 390,000 | 186,700 |
Variable-rate foreign bank loans | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | 7,570 | 7,296 |
Finance lease obligations | ||
Debt Instrument [Line Items] | ||
Total long-term Debt | $ 59,167 | $ 59,524 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 15 Months Ended | |||||
Apr. 30, 2020USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2020USD ($) | Jun. 30, 2020 | Sep. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2021 | |
Debt Instrument [Line Items] | ||||||||||
Proceeds from borrowings of credit agreements | $ 452,163 | $ 0 | ||||||||
Net investment hedge (losses) gains | $ (12,408) | $ 12,745 | $ (16,083) | $ 13,012 | ||||||
Commercial paper notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Weighted average interest rate | 0.55% | 0.55% | ||||||||
Debt instrument maturity period | 46 days | |||||||||
1.875% Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate | 1.875% | 1.875% | ||||||||
2018 Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from borrowings of credit agreements | $ 250,000 | |||||||||
2019 Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from borrowings of credit agreements | $ 200,000 | |||||||||
Interest rate on amount borrowed | 1.375% | |||||||||
Credit facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt covenant ratio, maximum debt to EBITDA | 4 | |||||||||
Priority debt basket | 0.24 | 0.24 | ||||||||
Basis point fee | 0.0010 | 0.0010 | ||||||||
Credit facilities | Forecast | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt covenant ratio, maximum debt to EBITDA | 3.50 | 4 | 4.50 |
Commitments and Contingencies -
Commitments and Contingencies - Activity in Recorded Environmental Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 42,592 | |
Expenditures | (2,560) | |
Accretion of discount | 652 | |
Accrual for Environmental Loss Contingencies, Period Increase (Decrease) | 3,857 | |
Foreign currency translation adjustments and other | 805 | |
Balance at end of period | $ 42,592 | $ 45,346 |
Less amounts reported in Accrued expenses | 9,654 | |
Amounts reported in Other noncurrent liabilities | $ 35,692 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Environmental remediation liabilities - discounted | $ 38.7 | $ 35.6 |
Accrual for environmental loss contingencies - weighted-average discount rate | 3.50% | 3.70% |
Environmental remediation liabilities - undiscounted | $ 72.9 | $ 69.2 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Potential revision on future environmental remediation costs before tax | 10 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Potential revision on future environmental remediation costs before tax | 30 | |
Other noncurrent liabilities | ||
Loss Contingencies [Line Items] | ||
Tax Indemnification Liability | $ 27.1 | $ 31 |
Leases - Additional Information
Leases - Additional Information (Details) | Sep. 30, 2020 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 50 years |
Real estate | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 1 year |
Real estate | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 30 years |
Non-real estate | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 2 years |
Non-real estate | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 15 years |
Leases - Leases Cost (Details)
Leases - Leases Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 8,085 | $ 7,939 | $ 25,298 | $ 25,741 |
Amortization of right of use assets | 126 | 157 | 433 | 471 |
Interest on lease liabilities | 697 | 31 | 1,977 | 96 |
Total finance lease cost | 823 | 188 | 2,410 | 567 |
Short-term lease cost | 3,427 | 2,587 | 9,824 | 6,422 |
Variable lease cost | 2,312 | 1,541 | 6,344 | 4,059 |
Total lease cost | $ 14,647 | $ 12,255 | $ 43,876 | $ 36,789 |
Leases - Leases Cash Flow (Deta
Leases - Leases Cash Flow (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 28,074 | $ 22,486 |
Operating cash flows from finance leases | 1,156 | 96 |
Financing cash flows from finance leases | 513 | 509 |
Right-of-use asset obtained in exchange for operating leases | $ 19,743 | $ 21,578 |
Leases - Leases Balance Sheet (
Leases - Leases Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Other assets | $ 132,777 | $ 133,864 |
Accrued expenses | 18,013 | 23,137 |
Other noncurrent liabilities | 116,394 | 114,686 |
Total operating lease liabilities | 134,407 | 137,823 |
Net property, plant and equipment | 58,962 | 59,494 |
Current portion of long-term debt(a) | 1,412 | 636 |
Long-term debt | 58,576 | 58,888 |
Total finance lease liabilities | $ 59,988 | $ 59,524 |
Weighted average remaining lease term, operating leases | 16 years 4 months 24 days | 11 years 4 months 24 days |
Weighted average remaining lease term, finance leases | 27 years 8 months 12 days | 28 years 3 months 18 days |
Weighted average discount rate, operating leases, percent | 4.06% | 3.84% |
Weighted average discount rate, finance leases, percent | 4.56% | 4.56% |
Leases - Leases Maturity Table
Leases - Leases Maturity Table (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Remainder of 2020 | $ 7,414 | |
2021 | 19,663 | |
2022 | 15,477 | |
2023 | 13,708 | |
2024 | 12,369 | |
Thereafter | 149,025 | |
Total lease payments | 217,656 | |
Less imputed interest | 83,249 | |
Total operating lease liabilities | 134,407 | $ 137,823 |
Finance Leases | ||
Remainder of 2020 | 541 | |
2021 | 2,165 | |
2022 | 4,444 | |
2023 | 4,444 | |
2024 | 4,444 | |
Thereafter | 94,361 | |
Total lease payments | 110,399 | |
Less imputed interest | 50,411 | |
Total finance lease liabilities | $ 59,988 | $ 59,524 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Summarize
Segment Information - Summarized Financial Information by Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 746,868 | $ 879,747 | $ 2,249,762 | $ 2,596,863 |
Adjusted EBITDA | 216,055 | 254,351 | 597,613 | 742,118 |
Net income attributable to Albemarle Corporation | 98,301 | 155,070 | 291,129 | 442,837 |
Depreciation and amortization | 58,679 | 54,487 | 170,214 | 156,718 |
Restructuring and other | 2,251 | 10,831 | 5,290 | |
Acquisition and integration related costs | 5,928 | 4,114 | 14,349 | 14,388 |
Gain on sale of property | 0 | (11,079) | ||
Interest and financing expenses | 19,227 | 11,108 | 53,964 | 35,295 |
Income tax expense | 30,653 | 25,341 | 64,526 | 93,266 |
Non-operating pension and OPEB items | (2,901) | (551) | (8,704) | (1,810) |
Other | 3,917 | 4,782 | 1,304 | 7,213 |
All Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 46,110 | 31,748 | 159,833 | 109,786 |
Adjusted EBITDA | 24,985 | 10,448 | 66,407 | 28,931 |
Net income attributable to Albemarle Corporation | 22,798 | 8,305 | 60,069 | 22,629 |
Depreciation and amortization | 2,187 | 2,143 | 6,338 | 6,302 |
Restructuring and other | 0 | 0 | 0 | |
Acquisition and integration related costs | 0 | 0 | 0 | 0 |
Gain on sale of property | 0 | |||
Interest and financing expenses | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Reportable Segments | Lithium | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 265,646 | 330,386 | 786,186 | 947,030 |
Adjusted EBITDA | 97,789 | 127,459 | 270,962 | 384,854 |
Net income attributable to Albemarle Corporation | 69,102 | 102,136 | 188,380 | 312,609 |
Depreciation and amortization | 28,687 | 25,212 | 82,582 | 71,669 |
Restructuring and other | 0 | 0 | 0 | |
Acquisition and integration related costs | 0 | 0 | 0 | 0 |
Gain on sale of property | 0 | |||
Interest and financing expenses | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 | 0 | 0 |
Other | 0 | 111 | 0 | 576 |
Reportable Segments | Bromine Specialties | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 237,193 | 256,267 | 701,564 | 760,752 |
Adjusted EBITDA | 79,448 | 88,814 | 235,751 | 248,743 |
Net income attributable to Albemarle Corporation | 66,548 | 75,224 | 198,905 | 212,320 |
Depreciation and amortization | 12,900 | 12,448 | 36,846 | 35,281 |
Restructuring and other | 0 | 0 | 0 | |
Acquisition and integration related costs | 0 | 0 | 0 | 0 |
Gain on sale of property | 0 | |||
Interest and financing expenses | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 | 0 | 0 |
Other | 0 | 1,142 | 0 | 1,142 |
Reportable Segments | Catalysts | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 197,919 | 261,346 | 602,179 | 779,295 |
Adjusted EBITDA | 37,834 | 66,944 | 108,081 | 193,890 |
Net income attributable to Albemarle Corporation | 25,176 | 54,345 | 70,770 | 156,328 |
Depreciation and amortization | 12,658 | 12,599 | 37,311 | 37,562 |
Restructuring and other | 0 | 0 | 0 | |
Acquisition and integration related costs | 0 | 0 | 0 | 0 |
Gain on sale of property | 0 | |||
Interest and financing expenses | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Reportable Segments | Reportable Segments Total | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 215,071 | 283,217 | 614,794 | 827,487 |
Net income attributable to Albemarle Corporation | 160,826 | 231,705 | 458,055 | 681,257 |
Depreciation and amortization | 54,245 | 50,259 | 156,739 | 144,512 |
Restructuring and other | 0 | 0 | 0 | |
Acquisition and integration related costs | 0 | 0 | 0 | 0 |
Gain on sale of property | 0 | |||
Interest and financing expenses | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Non-operating pension and OPEB items | 0 | 0 | 0 | 0 |
Other | 0 | 1,253 | 0 | 1,718 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (24,001) | (39,314) | (83,588) | (114,300) |
Net income attributable to Albemarle Corporation | (85,323) | (84,940) | (226,995) | (261,049) |
Depreciation and amortization | 2,247 | 2,085 | 7,137 | 5,904 |
Restructuring and other | 2,251 | 10,831 | 5,290 | |
Acquisition and integration related costs | 5,928 | 4,114 | 14,349 | 14,388 |
Gain on sale of property | (11,079) | |||
Interest and financing expenses | 19,227 | 11,108 | 53,964 | 35,295 |
Income tax expense | 30,653 | 25,341 | 64,526 | 93,266 |
Non-operating pension and OPEB items | (2,901) | (551) | (8,704) | (1,810) |
Other | $ 3,917 | $ 3,529 | $ 1,304 | $ 5,495 |
Segment Information - Summari_2
Segment Information - Summarized Financial Information by Reportable Segments (Footnote) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Restructuring and other | $ 2,251 | $ 10,831 | $ 5,290 | |
Gain on sale of idle properties | 0 | 11,079 | ||
Cost of goods sold | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other | 700 | |||
Non-routine Chilean labor costs | $ 100 | 600 | ||
Selling, general and administrative expenses | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other | 2,300 | 10,400 | 5,300 | |
Accrual for Environmental Loss Contingencies, Revision in Estimates | 3,800 | 3,800 | ||
Write Off Of Uncollectable Accounts Receivable | 1,100 | 1,100 | ||
Selling, general and administrative expenses | Financial Improvement Plan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Multiemployer plan, period contributions | 1,000 | |||
Non-controlling Interests | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other | 300 | |||
Other (expenses) income, net | ||||
Segment Reporting Information [Line Items] | ||||
Settlement of a legal claim | 400 | 2,500 | 400 | |
Gain on sale of idle properties | 800 | |||
Revision of tax indemnification expense | $ 800 | 900 | ||
Unrecoverable Vendor Costs | $ 3,100 | $ 3,100 | ||
Other expenses, net | ||||
Segment Reporting Information [Line Items] | ||||
Settlement of a legal claim | $ 200 |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefits - Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total net pension and postretirement benefits (credit) cost | $ (1,663) | $ 586 | $ (4,975) | $ 1,641 |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1,202 | 1,118 | 3,623 | 3,371 |
Interest cost | 6,696 | 8,314 | 20,049 | 24,854 |
Expected return on assets | (10,065) | (9,414) | (30,156) | (28,311) |
Amortization of prior service benefit | 9 | (5) | 27 | 7 |
Total net pension and postretirement benefits (credit) cost | (2,158) | 13 | (6,457) | (79) |
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 27 | 24 | 79 | 73 |
Interest cost | 468 | 549 | 1,403 | 1,647 |
Total net pension and postretirement benefits (credit) cost | $ 495 | $ 573 | $ 1,482 | $ 1,720 |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefits - Pension and Postretirement Plan Contributions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Retirement Benefits [Abstract] | ||||
Employer contributions | $ 2.7 | $ 2.1 | $ 7.9 | $ 8.6 |
Payment for other postretirement benefits | $ 0.9 | $ 0.8 | $ 2.5 | $ 2.1 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Total long-term debt, excluding debt issuance costs | $ 3,560,816 | $ 3,069,417 |
Total long-term debt, fair value, excluding debt issuance costs | $ 3,649,323 | $ 3,173,341 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) $ in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019AUD ($) | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Foreign currency forward contracts, assets | $ 3,895 | $ 3,895 | $ 7,401 | |||
Foreign currency forward contracts, liabilities | 1,834 | 1,834 | 3,613 | |||
Recognized gains (losses) of foreign currency forward contracts designated as hedging instruments | 6,993 | $ 0 | (6,822) | $ 0 | ||
Forward contracts | Other, net | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Cash settlements | (15,700) | (25,500) | ||||
Designated as Hedging Instrument | Forward contracts | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Derivative, notional amount | 187,300 | 187,300 | 481,200 | $ 727.9 | ||
Fair value foreign currency forward contracts designated as hedging instruments, asset | 2,820 | 2,820 | 5,369 | |||
Fair value foreign currency forward contracts designated as hedging instruments, liabilities | 0 | 0 | 0 | |||
Recognized gains (losses) of foreign currency forward contracts designated as hedging instruments | 6,993 | 0 | (6,822) | 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 | 2,500 | 2,500 | 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 | 300 | 300 | 1,700 | |||
Not Designated as Hedging Instrument | Forward contracts | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Derivative, notional amount | 658,100 | 658,100 | 1,150,000 | |||
Fair value foreign currency forward contracts not designated as hedging instruments, asset | 1,075 | 1,075 | 2,032 | |||
Fair value foreign currency forward contracts not designated as hedging instruments, liabilities | 1,834 | 1,834 | 3,613 | |||
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 | 1,100 | 1,100 | 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 | 1,800 | 1,800 | $ 3,600 | |||
Not Designated as Hedging Instrument | Forward contracts | Other (expenses) income, net | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Recognized (losses) gains of foreign currency forward contracts not designated as hedging instruments | $ 3,102 | $ (19,331) | $ (5,201) | $ (27,647) |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments under executive deferred compensation plan | $ 30,884 | $ 28,715 |
Private equity securities | 27 | 32 |
Private equity securities measured at net asset value | 4,638 | 4,890 |
Foreign currency forward contracts, assets | 3,895 | 7,401 |
Obligations under executive deferred compensation plan | 30,884 | 28,715 |
Foreign currency forward contracts, liabilities | 1,834 | 3,613 |
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 | 30,884 | 28,715 |
Private equity securities | 27 | 32 |
Foreign currency forward contracts, assets | 0 | 0 |
Obligations under executive deferred compensation plan | 30,884 | 28,715 |
Foreign currency forward contracts, liabilities | 0 | 0 |
Quoted Prices in Active Markets for Similar Items (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments under executive deferred compensation plan | 0 | 0 |
Private equity securities | 0 | 0 |
Foreign currency forward contracts, assets | 3,895 | 7,401 |
Obligations under executive deferred compensation plan | 0 | 0 |
Foreign currency forward contracts, liabilities | 1,834 | 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 |
Foreign currency forward contracts, assets | 0 | 0 |
Obligations under executive deferred compensation plan | 0 | 0 |
Foreign currency forward contracts, liabilities | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Components and Activity in Accumulated Other Comprehensive (Loss) Income Net of Deferred Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | $ 4,206,161 | $ 3,974,403 | $ 4,093,580 | $ 3,759,108 |
Other comprehensive income (loss), before reclassifications | 32,074 | (87,324) | (4,555) | (87,368) |
Amounts reclassified from accumulated other comprehensive loss | 657 | 636 | 1,970 | 1,931 |
Total other comprehensive income (loss), net of tax | 32,731 | (86,688) | (2,585) | (85,437) |
Other comprehensive (income) loss attributable to noncontrolling interests | (67) | 122 | (147) | 142 |
Ending Balance | 4,325,381 | 4,008,337 | 4,325,381 | 4,008,337 |
Foreign Currency Translation | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (488,429) | (407,937) | (469,210) | (407,646) |
Other comprehensive income (loss), before reclassifications | 37,489 | (100,069) | 18,350 | (100,380) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 37,489 | (100,069) | 18,350 | (100,380) |
Other comprehensive (income) loss attributable to noncontrolling interests | (67) | 122 | (147) | 142 |
Ending Balance | (451,007) | (507,884) | (451,007) | (507,884) |
Pension and Postretirement Benefits | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | 490 | (146) | 473 | (159) |
Other comprehensive income (loss), before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 10 | (5) | 27 | 8 |
Total other comprehensive income (loss), net of tax | 10 | (5) | 27 | 8 |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Ending Balance | 500 | (151) | 500 | (151) |
Net Investment Hedge | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | 77,103 | 72,604 | 80,778 | 72,337 |
Other comprehensive income (loss), before reclassifications | (12,408) | 12,745 | (16,083) | 13,012 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | (12,408) | 12,745 | (16,083) | 13,012 |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Ending Balance | 64,695 | 85,349 | 64,695 | 85,349 |
Cash Flow Hedge | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (8,968) | 0 | 4,847 | 0 |
Other comprehensive income (loss), before reclassifications | 6,993 | 0 | (6,822) | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 6,993 | 0 | (6,822) | 0 |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Ending Balance | (1,975) | 0 | (1,975) | 0 |
Interest Rate Swap | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (11,327) | (13,932) | (12,623) | (15,214) |
Other comprehensive income (loss), before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 647 | 641 | 1,943 | 1,923 |
Total other comprehensive income (loss), net of tax | 647 | 641 | 1,943 | 1,923 |
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Ending Balance | (10,680) | (13,291) | (10,680) | (13,291) |
Accumulated Other Comprehensive (Loss) Income | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (431,131) | (349,411) | (395,735) | (350,682) |
Total other comprehensive income (loss), net of tax | 32,664 | (86,566) | (2,732) | (85,295) |
Ending Balance | $ (398,467) | $ (435,977) | $ (398,467) | $ (435,977) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income - Amount of Income Tax Benefit (Expense) Allocated to Component of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Total other comprehensive income (loss), net of tax | $ 32,731 | $ (86,688) | $ (2,585) | $ (85,437) |
Foreign Currency Translation | ||||
Equity [Abstract] | ||||
Other comprehensive income (loss), before tax | 37,494 | (100,069) | 18,352 | (100,379) |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Other comprehensive income (loss), before tax | 37,494 | (100,069) | 18,352 | (100,379) |
Income tax expense | (5) | 0 | (2) | (1) |
Total other comprehensive income (loss), net of tax | 37,489 | (100,069) | 18,350 | (100,380) |
Pension and Postretirement Benefits | ||||
Equity [Abstract] | ||||
Other comprehensive income (loss), before tax | 10 | (3) | 28 | 10 |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Other comprehensive income (loss), before tax | 10 | (3) | 28 | 10 |
Income tax expense | 0 | (2) | (1) | (2) |
Total other comprehensive income (loss), net of tax | 10 | (5) | 27 | 8 |
Net Investment Hedge | ||||
Equity [Abstract] | ||||
Other comprehensive income (loss), before tax | (16,029) | 16,584 | (20,755) | 16,932 |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Other comprehensive income (loss), before tax | (16,029) | 16,584 | (20,755) | 16,932 |
Income tax expense | 3,621 | (3,839) | 4,672 | (3,920) |
Total other comprehensive income (loss), net of tax | (12,408) | 12,745 | (16,083) | 13,012 |
Cash Flow Hedge | ||||
Equity [Abstract] | ||||
Other comprehensive income (loss), before tax | 6,993 | 0 | (6,822) | 0 |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Other comprehensive income (loss), before tax | 6,993 | 0 | (6,822) | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | 6,993 | 0 | (6,822) | 0 |
Interest Rate Swap | ||||
Equity [Abstract] | ||||
Other comprehensive income (loss), before tax | 834 | 834 | 2,502 | 2,502 |
Accumulated Other Comprehensive (Loss) Income [Line Items] | ||||
Other comprehensive income (loss), before tax | 834 | 834 | 2,502 | 2,502 |
Income tax expense | (187) | (193) | (559) | (579) |
Total other comprehensive income (loss), net of tax | $ 647 | $ 641 | $ 1,943 | $ 1,923 |
Related Party Transactions (Det
Related Party Transactions (Details) - Unconsolidated Affiliates - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Sales to unconsolidated affiliates | $ 4,863 | $ 4,465 | $ 17,361 | $ 14,128 | |
Purchases from unconsolidated affiliates | 10,742 | $ 41,304 | 142,366 | $ 160,420 | |
Receivables from unconsolidated affiliates | 2,765 | 2,765 | $ 7,163 | ||
Payables to unconsolidated affiliates | $ 7,263 | $ 7,263 | $ 35,502 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of supplemental information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Capital expenditures included in Accounts payable | $ 167,393 | $ 174,510 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Cash Flow Supplemental Disclosures [Line Items] | ||||
Capital expenditures | $ 621,371 | $ 608,456 | ||
Tax Cuts Jobs Act Of 2017, Transition Tax For Accumulated Foreign Earnings, Liability, Current | 30,400 | $ 14,400 | ||
Mineral Resources Limited Wodgina Project | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Ownership percentage | 60.00% | |||
Consideration transferred | $ 1,300,000 | 1,322,566 | ||
Lithium Hydroxide Conversion Assets | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Ownership percentage | 40.00% | |||
Lithium Hydroxide Conversion Assets | Mineral Resources Limited Wodgina Project | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Capital expenditures | $ 296,600 | 131,900 | ||
Consideration transferred | $ 480,000 |