x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
VIRGINIA | 54-1692118 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
4350 CONGRESS STREET, SUITE 700 CHARLOTTE, NORTH CAROLINA | 28209 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ | |||
Emerging growth company | ¨ |
Page Number(s) | ||
8-23 | ||
23-36 | ||
EXHIBITS |
Item 1. | Financial Statements (Unaudited). |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net sales | $ | 722,063 | $ | 657,211 | |||
Cost of goods sold | 466,975 | 414,677 | |||||
Gross profit | 255,088 | 242,534 | |||||
Selling, general and administrative expenses | 108,001 | 82,631 | |||||
Research and development expenses | 24,323 | 19,872 | |||||
Gain on sales of businesses, net | — | (121,324 | ) | ||||
Acquisition and integration related costs | — | 18,558 | |||||
Operating profit | 122,764 | 242,797 | |||||
Interest and financing expenses | (68,513 | ) | (15,114 | ) | |||
Other (expenses) income, net | (794 | ) | 47 | ||||
Income from continuing operations before income taxes and equity in net income of unconsolidated investments | 53,457 | 227,730 | |||||
Income tax expense | 11,971 | 25,485 | |||||
Income from continuing operations before equity in net income of unconsolidated investments | 41,486 | 202,245 | |||||
Equity in net income of unconsolidated investments (net of tax) | 21,171 | 15,991 | |||||
Net income from continuing operations | 62,657 | 218,236 | |||||
Income from discontinued operations (net of tax) | — | 17,312 | |||||
Net income | 62,657 | 235,548 | |||||
Net income attributable to noncontrolling interests | (11,444 | ) | (7,362 | ) | |||
Net income attributable to Albemarle Corporation | $ | 51,213 | $ | 228,186 | |||
Basic earnings per share: | |||||||
Continuing operations | $ | 0.46 | $ | 1.88 | |||
Discontinued operations | — | 0.15 | |||||
$ | 0.46 | $ | 2.03 | ||||
Diluted earnings per share: | |||||||
Continuing operations | $ | 0.45 | $ | 1.87 | |||
Discontinued operations | — | 0.15 | |||||
$ | 0.45 | $ | 2.02 | ||||
Weighted-average common shares outstanding – basic | 111,986 | 112,260 | |||||
Weighted-average common shares outstanding – diluted | 113,289 | 112,770 | |||||
Cash dividends declared per share of common stock | $ | 0.32 | $ | 0.305 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net income | $ | 62,657 | $ | 235,548 | |||
Other comprehensive income (loss), net of tax: | |||||||
Foreign currency translation | 79,055 | 98,906 | |||||
Pension and postretirement benefits | (7 | ) | 1 | ||||
Net investment hedge | (13,685 | ) | (9,524 | ) | |||
Interest rate swap | 529 | 525 | |||||
Total other comprehensive income, net of tax | 65,892 | 89,908 | |||||
Comprehensive income | 128,549 | 325,456 | |||||
Comprehensive income attributable to noncontrolling interests | (11,905 | ) | (7,645 | ) | |||
Comprehensive income attributable to Albemarle Corporation | $ | 116,644 | $ | 317,811 |
March 31, | December 31, | ||||||
2017 | 2016 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,254,536 | $ | 2,269,756 | |||
Trade accounts receivable, less allowance for doubtful accounts (2017 – $15,403; 2016 – $15,312) | 508,460 | 486,035 | |||||
Other accounts receivable | 54,486 | 41,985 | |||||
Inventories | 518,936 | 450,263 | |||||
Other current assets | 53,836 | 58,579 | |||||
Total current assets | 2,390,254 | 3,306,618 | |||||
Property, plant and equipment, at cost | 3,965,656 | 3,910,522 | |||||
Less accumulated depreciation and amortization | 1,584,276 | 1,550,382 | |||||
Net property, plant and equipment | 2,381,380 | 2,360,140 | |||||
Investments | 493,406 | 457,533 | |||||
Other assets | 146,497 | 142,320 | |||||
Goodwill | 1,544,574 | 1,540,032 | |||||
Other intangibles, net of amortization | 410,357 | 354,564 | |||||
Total assets | $ | 7,366,468 | $ | 8,161,207 | |||
Liabilities And Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 336,890 | $ | 281,874 | |||
Accrued expenses | 253,930 | 322,165 | |||||
Current portion of long-term debt | 314,500 | 247,544 | |||||
Dividends payable | 35,215 | 34,104 | |||||
Income taxes payable | 267,412 | 254,416 | |||||
Total current liabilities | 1,207,947 | 1,140,103 | |||||
Long-term debt | 1,398,386 | 2,121,718 | |||||
Postretirement benefits | 50,619 | 50,538 | |||||
Pension benefits | 301,304 | 298,695 | |||||
Other noncurrent liabilities | 201,884 | 194,810 | |||||
Deferred income taxes | 422,356 | 412,739 | |||||
Commitments and contingencies (Note 11) | |||||||
Equity: | |||||||
Albemarle Corporation shareholders’ equity: | |||||||
Common stock, $.01 par value, issued and outstanding – 110,752 in 2017 and 112,524 in 2016 | 1,108 | 1,125 | |||||
Additional paid-in capital | 1,845,839 | 2,084,418 | |||||
Accumulated other comprehensive loss | (346,981 | ) | (412,412 | ) | |||
Retained earnings | 2,137,703 | 2,121,931 | |||||
Total Albemarle Corporation shareholders’ equity | 3,637,669 | 3,795,062 | |||||
Noncontrolling interests | 146,303 | 147,542 | |||||
Total equity | 3,783,972 | 3,942,604 | |||||
Total liabilities and equity | $ | 7,366,468 | $ | 8,161,207 |
(In Thousands, Except Share Data) | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings | Total Albemarle Shareholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||
Shares | Amounts | ||||||||||||||||||||||||||||||
Balance at January 1, 2017 | 112,523,790 | $ | 1,125 | $ | 2,084,418 | $ | (412,412 | ) | $ | 2,121,931 | $ | 3,795,062 | $ | 147,542 | $ | 3,942,604 | |||||||||||||||
Net income | 51,213 | 51,213 | 11,444 | 62,657 | |||||||||||||||||||||||||||
Other comprehensive income | 65,431 | 65,431 | 461 | 65,892 | |||||||||||||||||||||||||||
Cash dividends declared | (35,441 | ) | (35,441 | ) | — | (35,441 | ) | ||||||||||||||||||||||||
Stock-based compensation and other | 3,945 | 3,945 | 3,945 | ||||||||||||||||||||||||||||
Exercise of stock options | 37,146 | — | 2,170 | 2,170 | 2,170 | ||||||||||||||||||||||||||
Shares repurchased | (1,948,178 | ) | (19 | ) | (249,981 | ) | — | (250,000 | ) | (250,000 | ) | ||||||||||||||||||||
Issuance of common stock, net | 225,559 | 2 | (2 | ) | — | — | |||||||||||||||||||||||||
Termination of Tianqi Lithium Corporation option agreement | 13,144 | 13,144 | (13,144 | ) | — | ||||||||||||||||||||||||||
Shares withheld for withholding taxes associated with common stock issuances | (86,117 | ) | — | (7,855 | ) | (7,855 | ) | (7,855 | ) | ||||||||||||||||||||||
Balance at March 31, 2017 | 110,752,200 | $ | 1,108 | $ | 1,845,839 | $ | (346,981 | ) | $ | 2,137,703 | $ | 3,637,669 | $ | 146,303 | $ | 3,783,972 | |||||||||||||||
Balance at January 1, 2016 | 112,219,351 | $ | 1,122 | $ | 2,059,151 | $ | (421,288 | ) | $ | 1,615,407 | $ | 3,254,392 | $ | 146,921 | $ | 3,401,313 | |||||||||||||||
Net income | 228,186 | 228,186 | 7,362 | 235,548 | |||||||||||||||||||||||||||
Other comprehensive income | 89,625 | 89,625 | 283 | 89,908 | |||||||||||||||||||||||||||
Cash dividends declared | (34,251 | ) | (34,251 | ) | — | (34,251 | ) | ||||||||||||||||||||||||
Stock-based compensation and other | 4,517 | 4,517 | 4,517 | ||||||||||||||||||||||||||||
Tax deficiency related to stock plans | (195 | ) | (195 | ) | (195 | ) | |||||||||||||||||||||||||
Issuance of common stock, net | 112,624 | 1 | (1 | ) | — | — | |||||||||||||||||||||||||
Shares withheld for withholding taxes associated with common stock issuances | (35,176 | ) | — | (1,969 | ) | (1,969 | ) | (1,969 | ) | ||||||||||||||||||||||
Balance at March 31, 2016 | 112,296,799 | $ | 1,123 | $ | 2,061,503 | $ | (331,663 | ) | $ | 1,809,342 | $ | 3,540,305 | $ | 154,566 | $ | 3,694,871 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Cash and cash equivalents at beginning of year | $ | 2,269,756 | $ | 213,734 | |||
Cash flows from operating activities: | |||||||
Net income | 62,657 | 235,548 | |||||
Adjustments to reconcile net income to cash flows from operating activities: | |||||||
Depreciation and amortization | 45,070 | 60,552 | |||||
Gain on acquisition | (7,433 | ) | — | ||||
Gain on sales of businesses, net | — | (121,324 | ) | ||||
Stock-based compensation | 5,046 | 4,007 | |||||
Equity in net income of unconsolidated investments (net of tax) | (21,171 | ) | (16,566 | ) | |||
Dividends received from unconsolidated investments and nonmarketable securities | 2,551 | 200 | |||||
Pension and postretirement (benefit) expense | (26 | ) | 1,389 | ||||
Pension and postretirement contributions | (2,891 | ) | (4,224 | ) | |||
Unrealized (gain) loss on investments in marketable securities | (873 | ) | 1,044 | ||||
Loss on early extinguishment of debt | 52,801 | — | |||||
Deferred income tax expense | 1,363 | 816 | |||||
Working capital changes | (63,325 | ) | 10,467 | ||||
Other, net | 8,816 | 799 | |||||
Net cash provided by operating activities | 82,585 | 172,708 | |||||
Cash flows from investing activities: | |||||||
Acquisitions, net of cash acquired | (27,742 | ) | — | ||||
Cash payments related to acquisitions and other | — | (81,988 | ) | ||||
Capital expenditures | (54,143 | ) | (58,120 | ) | |||
Cash proceeds from divestitures, net | — | 307,165 | |||||
Sales of marketable securities, net | 492 | 1,191 | |||||
Repayments from joint ventures | 1,250 | — | |||||
Net cash (used in) provided by investing activities | (80,143 | ) | 168,248 | ||||
Cash flows from financing activities: | |||||||
Repayments of long-term debt | (751,209 | ) | (331,595 | ) | |||
Other borrowings, net | 66,384 | 68,829 | |||||
Fees related to early extinguishment of debt | (46,959 | ) | — | ||||
Dividends paid to shareholders | (34,330 | ) | (32,541 | ) | |||
Repurchases of common stock | (250,000 | ) | — | ||||
Proceeds from exercise of stock options | 2,170 | — | |||||
Withholding taxes paid on stock-based compensation award distributions | (7,855 | ) | (1,969 | ) | |||
Net cash used in financing activities | (1,021,799 | ) | (297,276 | ) | |||
Net effect of foreign exchange on cash and cash equivalents | 4,137 | (5,032 | ) | ||||
(Decrease) increase in cash and cash equivalents | (1,015,220 | ) | 38,648 | ||||
Cash and cash equivalents at end of period | $ | 1,254,536 | $ | 252,382 |
Three Months Ended March 31, 2016 | |||
Net sales | $ | 208,187 | |
Cost of goods sold | 113,323 | ||
Operating expenses, net | 62,853 | ||
Interest and financing expenses(a) | 10,137 | ||
Other income, net | (938 | ) | |
Income before income taxes | 22,812 | ||
Income tax expense | 5,500 | ||
Income from discontinued operations (net of tax) | $ | 17,312 |
(a) | Interest and financing expenses included the allocation of interest expense not directly attributable to other operations as well as interest expense related to debt to be assumed by the buyer. The allocation of interest expense to discontinued operations was based on the ratio of net assets held for sale to the sum of total net assets plus consolidated debt. |
Three Months Ended March 31, 2016 | |||
Depreciation and amortization | $ | 16,943 | |
Capital expenditures | $ | 5,747 |
Lithium and Advanced Materials | Bromine Specialties | Refining Solutions | All Other | Total | |||||||||||||||
Balance at December 31, 2016 | $ | 1,348,261 | $ | 20,319 | $ | 164,866 | $ | 6,586 | $ | 1,540,032 | |||||||||
Acquisitions(a) | (21,822 | ) | — | — | — | (21,822 | ) | ||||||||||||
Foreign currency translation adjustments | 20,694 | — | 5,670 | — | 26,364 | ||||||||||||||
Balance at March 31, 2017 | $ | 1,347,133 | $ | 20,319 | $ | 170,536 | $ | 6,586 | $ | 1,544,574 |
(a) | Primarily represents preliminary purchase price adjustments for the Jiangli New Materials acquisition. See Note 2, “Acquisitions,” for additional information. |
Customer Lists and Relationships | Trade Names and Trademarks(a) | Patents and Technology | Other | Total | |||||||||||||||
Gross Asset Value | |||||||||||||||||||
Balance at December 31, 2016 | $ | 387,893 | $ | 16,514 | $ | 38,434 | $ | 18,844 | $ | 461,685 | |||||||||
Acquisitions(b) | 1,717 | — | 25,555 | 19,917 | 47,189 | ||||||||||||||
Foreign currency translation adjustments and other | 10,340 | 264 | 514 | 1,774 | 12,892 | ||||||||||||||
Balance at March 31, 2017 | $ | 399,950 | $ | 16,778 | $ | 64,503 | $ | 40,535 | $ | 521,766 | |||||||||
Accumulated Amortization | |||||||||||||||||||
Balance at December 31, 2016 | $ | (49,165 | ) | $ | (7,952 | ) | $ | (31,683 | ) | $ | (18,321 | ) | $ | (107,121 | ) | ||||
Amortization | (4,801 | ) | — | (413 | ) | (526 | ) | (5,740 | ) | ||||||||||
Foreign currency translation adjustments and other | (1,164 | ) | (94 | ) | (503 | ) | 3,213 | 1,452 | |||||||||||
Balance at March 31, 2017 | $ | (55,130 | ) | $ | (8,046 | ) | $ | (32,599 | ) | $ | (15,634 | ) | $ | (111,409 | ) | ||||
Net Book Value at December 31, 2016 | $ | 338,728 | $ | 8,562 | $ | 6,751 | $ | 523 | $ | 354,564 | |||||||||
Net Book Value at March 31, 2017 | $ | 344,820 | $ | 8,732 | $ | 31,904 | $ | 24,901 | $ | 410,357 |
(a) | Balances as of March 31, 2017 and December 31, 2016 include only indefinite-lived intangible assets. |
(b) | Represents preliminary purchase price adjustments for the Jiangli New Materials acquisition and the acquisition of the remaining equity interest in Salmag. See Note 2, “Acquisitions,” for additional information. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Basic earnings per share from continuing operations | |||||||
Numerator: | |||||||
Net income from continuing operations | $ | 62,657 | $ | 218,236 | |||
Net income from continuing operations attributable to noncontrolling interests | (11,444 | ) | (7,362 | ) | |||
Net income from continuing operations attributable to Albemarle Corporation | $ | 51,213 | $ | 210,874 | |||
Denominator: | |||||||
Weighted-average common shares for basic earnings per share | 111,986 | 112,260 | |||||
Basic earnings per share from continuing operations | $ | 0.46 | $ | 1.88 | |||
Diluted earnings per share from continuing operations | |||||||
Numerator: | |||||||
Net income from continuing operations | $ | 62,657 | $ | 218,236 | |||
Net income from continuing operations attributable to noncontrolling interests | (11,444 | ) | (7,362 | ) | |||
Net income from continuing operations attributable to Albemarle Corporation | $ | 51,213 | $ | 210,874 | |||
Denominator: | |||||||
Weighted-average common shares for basic earnings per share | 111,986 | 112,260 | |||||
Incremental shares under stock compensation plans | 1,303 | 510 | |||||
Weighted-average common shares for diluted earnings per share | 113,289 | 112,770 | |||||
Diluted earnings per share from continuing operations | $ | 0.45 | $ | 1.87 |
March 31, | December 31, | ||||||
2017 | 2016 | ||||||
Finished goods | $ | 345,892 | $ | 289,102 | |||
Raw materials and work in process(a) | 120,759 | 109,706 | |||||
Stores, supplies and other | 52,285 | 51,455 | |||||
Total inventories | $ | 518,936 | $ | 450,263 |
(a) | Included $50.1 million and $47.1 million at March 31, 2017 and December 31, 2016, respectively, of work in process related to the Lithium product category. |
March 31, | December 31, | ||||||
2017 | 2016 | ||||||
1.875% Senior notes, net of unamortized discount and debt issuance costs of $4,305 at March 31, 2017 and $7,823 at December 31, 2016 | $ | 418,471 | $ | 719,617 | |||
3.00% Senior notes, net of unamortized discount and debt issuance costs of $1,286 at December 31, 2016 | — | 248,714 | |||||
4.15% Senior notes, net of unamortized discount and debt issuance costs of $3,737 at March 31, 2017 and $3,859 at December 31, 2016 | 421,262 | 421,141 | |||||
4.50% Senior notes, net of unamortized discount and debt issuance costs of $1,116 at March 31, 2017 and $2,380 at December 31, 2016 | 174,098 | 347,620 | |||||
5.45% Senior notes, net of unamortized discount and debt issuance costs of $4,274 at March 31, 2017 and $4,313 at December 31, 2016 | 345,726 | 345,687 | |||||
Commercial paper notes | 314,500 | 247,503 | |||||
Variable-rate foreign bank loans | 38,829 | 38,939 | |||||
Miscellaneous | — | 41 | |||||
Total long-term debt | 1,712,886 | 2,369,262 | |||||
Less amounts due within one year | 314,500 | 247,544 | |||||
Long-term debt, less current portion | $ | 1,398,386 | $ | 2,121,718 |
Beginning balance at December 31, 2016 | $ | 34,919 | |
Expenditures | (303 | ) | |
Accretion of discount | 183 | ||
Foreign currency translation adjustments and other | 640 | ||
Ending balance at March 31, 2017 | 35,439 | ||
Less amounts reported in Accrued expenses | 2,345 | ||
Amounts reported in Other noncurrent liabilities | $ | 33,094 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
(In thousands) | |||||||
Net sales: | |||||||
Lithium and Advanced Materials | $ | 284,375 | $ | 216,173 | |||
Bromine Specialties | 219,191 | 196,553 | |||||
Refining Solutions | 185,412 | 170,579 | |||||
All Other | 32,419 | 72,089 | |||||
Corporate | 666 | 1,817 | |||||
Total net sales | $ | 722,063 | $ | 657,211 | |||
Adjusted EBITDA: | |||||||
Lithium and Advanced Materials | $ | 120,022 | $ | 86,474 | |||
Bromine Specialties | 68,488 | 61,608 | |||||
Refining Solutions | 49,579 | 55,074 | |||||
All Other | 5,156 | 8,464 | |||||
Corporate | (31,869 | ) | (19,587 | ) | |||
Total adjusted EBITDA | $ | 211,376 | $ | 192,033 |
Lithium and Advanced Materials | Bromine Specialties | Refining Solutions | Reportable Segments Total | All Other | Corporate | Consolidated Total | |||||||||||||||||||||
Three months ended March 31, 2017 | |||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | 94,106 | $ | 58,694 | $ | 40,474 | $ | 193,274 | $ | 3,246 | $ | (145,307 | ) | $ | 51,213 | ||||||||||||
Depreciation and amortization | 22,743 | 9,794 | 9,105 | 41,642 | 1,910 | 1,518 | 45,070 | ||||||||||||||||||||
Utilization of inventory markup(a) | 10,606 | — | — | 10,606 | — | — | 10,606 | ||||||||||||||||||||
Restructuring and other(b) | — | — | — | — | — | 12,905 | 12,905 | ||||||||||||||||||||
Gain on acquisition(c) | (7,433 | ) | — | — | (7,433 | ) | — | — | (7,433 | ) | |||||||||||||||||
Acquisition and integration related costs(d) | — | — | — | — | — | 14,281 | 14,281 | ||||||||||||||||||||
Interest and financing expenses(e) | — | — | — | — | — | 68,513 | 68,513 | ||||||||||||||||||||
Income tax expense | — | — | — | — | — | 11,971 | 11,971 | ||||||||||||||||||||
Non-operating pension and OPEB items | — | — | — | — | — | (1,063 | ) | (1,063 | ) | ||||||||||||||||||
Other(f) | — | — | — | — | — | 5,313 | 5,313 | ||||||||||||||||||||
Adjusted EBITDA | $ | 120,022 | $ | 68,488 | $ | 49,579 | $ | 238,089 | $ | 5,156 | $ | (31,869 | ) | $ | 211,376 | ||||||||||||
Three months ended March 31, 2016 | |||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | 63,327 | $ | 51,853 | $ | 46,314 | $ | 161,494 | $ | 130,709 | $ | (64,017 | ) | $ | 228,186 | ||||||||||||
Depreciation and amortization | 23,147 | 9,755 | 8,760 | 41,662 | 612 | 1,335 | 43,609 | ||||||||||||||||||||
(Gain) loss on sales of businesses, net(g) | — | — | — | — | (122,857 | ) | 1,533 | (121,324 | ) | ||||||||||||||||||
Acquisition and integration related costs(d) | — | — | — | — | — | 18,558 | 18,558 | ||||||||||||||||||||
Interest and financing expenses | — | — | — | — | — | 15,114 | 15,114 | ||||||||||||||||||||
Income tax expense | — | — | — | — | — | 25,485 | 25,485 | ||||||||||||||||||||
Income from discontinued operations (net of tax) | — | — | — | — | — | (17,312 | ) | (17,312 | ) | ||||||||||||||||||
Non-operating pension and OPEB items | — | — | — | — | — | (283 | ) | (283 | ) | ||||||||||||||||||
Adjusted EBITDA | $ | 86,474 | $ | 61,608 | $ | 55,074 | $ | 203,156 | $ | 8,464 | $ | (19,587 | ) | $ | 192,033 |
(a) | In connection with the acquisition of Jiangli New Materials, the Company valued inventory purchased from Jiangli New Materials at fair value, which resulted in a markup of the underlying net book value of the inventory totaling approximately $23.0 million. The inventory markup is being expensed over the estimated remaining selling period. For the three-month period ended March 31, 2017, $10.6 million was included in Cost of goods sold related to the utilization of the inventory markup. |
(b) | During the first quarter of 2017, we initiated action to reduce costs at several locations, primarily at our Lithium site in Germany. Based on the restructuring plans, we have recorded expenses of $2.9 million in Cost of goods sold, $4.2 million in Selling, general and administrative expenses and $5.8 million in Research and development expenses, primarily related to severance, expected to be incurred. The unpaid balance is recorded in Accrued expenses at March 31, 2017, with the expectation that the majority of this plan will be completed by the end of 2017. |
(c) | Gain recorded in Other (expenses) income, net related to the acquisition of the remaining 50% interest in Salmag. See Note 2, “Acquisitions,” for additional information. |
(d) | See Note 2, “Acquisitions,” for additional information. |
(e) | Included in Interest and financing expenses is a loss on early extinguishment of debt of $52.8 million. See Note 10, “Long-term Debt,” for additional information. |
(f) | Included in Other (expenses) income, net are $3.2 million of asset retirement obligation charges related to the revision of an estimate at a site formerly owned by Albemarle and a loss of $2.1 million associated with the previous disposal of a business. |
(g) | See Note 3, “Divestitures,” for additional information. |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Pension Benefits Cost (Credit): | |||||||
Service cost | $ | 1,003 | $ | 1,048 | |||
Interest cost | 8,288 | 9,366 | |||||
Expected return on assets | (9,908 | ) | (10,173 | ) | |||
Actuarial gain | — | (50 | ) | ||||
Amortization of prior service benefit | 27 | 28 | |||||
Total net pension benefits (credit) cost | $ | (590 | ) | $ | 219 | ||
Postretirement Benefits Cost (Credit): | |||||||
Service cost | $ | 31 | $ | 29 | |||
Interest cost | 585 | 621 | |||||
Expected return on assets | (28 | ) | (47 | ) | |||
Amortization of prior service benefit | (24 | ) | (24 | ) | |||
Total net postretirement benefits cost | $ | 564 | $ | 579 | |||
Total net pension and postretirement benefits (credit) cost(a) | $ | (26 | ) | $ | 798 |
(a) | For the three-month period ended March 31, 2016, $0.6 million of net pension and postretirement benefits cost are included in Income from discontinued operations (net of tax) in the consolidated statements of income. See Note 3, “Divestitures,” for additional information. |
March 31, 2017 | December 31, 2016 | ||||||||||||||
Recorded Amount | Fair Value | Recorded Amount | Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
Long-term debt | $ | 1,721,455 | $ | 1,807,576 | $ | 2,381,370 | $ | 2,472,813 |
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 |
March 31, 2017 | 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) | $ | 22,417 | $ | 22,417 | $ | — | $ | — | |||||||
Private equity securities(b) | $ | 36 | $ | 36 | $ | — | $ | — | |||||||
Private equity securities measured at net asset value(b)(c) | $ | 5,492 | $ | — | $ | — | $ | — | |||||||
Foreign currency forward contracts(d) | $ | 7 | $ | — | $ | 7 | $ | — | |||||||
Liabilities: | |||||||||||||||
Obligations under executive deferred compensation plan(a) | $ | 22,417 | $ | 22,417 | $ | — | $ | — |
December 31, 2016 | 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) | $ | 22,037 | $ | 22,037 | $ | — | $ | — | |||||||
Private equity securities(b) | $ | 35 | $ | 35 | $ | — | $ | — | |||||||
Private equity securities measured at net asset value(b)(c) | $ | 5,498 | $ | — | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Obligations under executive deferred compensation plan(a) | $ | 22,037 | $ | 22,037 | $ | — | $ | — | |||||||
Foreign currency forward contracts(d) | $ | 182 | $ | — | $ | 182 | $ | — |
(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) income, net, in our consolidated statements of income. |
(c) | Holdings in private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. |
(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. Unless otherwise noted, these derivative financial instruments are not designated as hedging instruments under ASC 815, Derivatives and Hedging. 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. |
Foreign Currency Translation | Pension and Postretirement Benefits(a) | Net Investment Hedge | Interest Rate Swap(b) | Total | |||||||||||||||
Three months ended March 31, 2017 | |||||||||||||||||||
Balance at December 31, 2016 | $ | (484,121 | ) | $ | 76 | $ | 88,378 | $ | (16,745 | ) | $ | (412,412 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 79,055 | — | (13,685 | ) | — | 65,370 | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | (7 | ) | — | 529 | 522 | |||||||||||||
Other comprehensive income (loss), net of tax | 79,055 | (7 | ) | (13,685 | ) | 529 | 65,892 | ||||||||||||
Other comprehensive income attributable to noncontrolling interests | (461 | ) | — | — | — | (461 | ) | ||||||||||||
Balance at March 31, 2017 | $ | (405,527 | ) | $ | 69 | $ | 74,693 | $ | (16,216 | ) | $ | (346,981 | ) | ||||||
Three months ended March 31, 2016 | |||||||||||||||||||
Balance at December 31, 2015 | $ | (463,914 | ) | $ | (758 | ) | $ | 62,245 | $ | (18,861 | ) | $ | (421,288 | ) | |||||
Other comprehensive income (loss) before reclassifications | 98,906 | — | (9,524 | ) | — | 89,382 | |||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 1 | — | 525 | 526 | ||||||||||||||
Other comprehensive income (loss), net of tax | 98,906 | 1 | (9,524 | ) | 525 | 89,908 | |||||||||||||
Other comprehensive income attributable to noncontrolling interests | (283 | ) | — | — | — | (283 | ) | ||||||||||||
Balance at March 31, 2016 | $ | (365,291 | ) | $ | (757 | ) | $ | 52,721 | $ | (18,336 | ) | $ | (331,663 | ) |
(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 13, “Pension Plans and Other Postretirement Benefits.” |
(b) | The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||||||||||
Foreign Currency Translation | Pension and Postretirement Benefits | Net Investment Hedge | Interest Rate Swap | Foreign Currency Translation | Pension and Postretirement Benefits | Net Investment Hedge | Interest Rate Swap | ||||||||||||||||||||||||
Other comprehensive income (loss), before tax | $ | 80,141 | $ | (6 | ) | $ | (21,580 | ) | $ | 834 | $ | 99,277 | $ | 4 | $ | (15,121 | ) | $ | 834 | ||||||||||||
Income tax (expense) benefit | (1,086 | ) | (1 | ) | 7,895 | (305 | ) | (371 | ) | (3 | ) | 5,597 | (309 | ) | |||||||||||||||||
Other comprehensive income (loss), net of tax | $ | 79,055 | $ | (7 | ) | $ | (13,685 | ) | $ | 529 | $ | 98,906 | $ | 1 | $ | (9,524 | ) | $ | 525 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Sales to unconsolidated affiliates | $ | 7,189 | $ | 6,174 | |||
Purchases from unconsolidated affiliates | 40,570 | 35,621 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
• | changes in economic and business conditions; |
• | changes in financial and operating performance of our major customers and industries and markets served by us; |
• | the timing of orders received from customers; |
• | the gain or loss of significant customers; |
• | competition from other manufacturers; |
• | changes in the demand for our products or the end-user markets in which our products are sold; |
• | limitations or prohibitions on the manufacture and sale of our products; |
• | availability of raw materials; |
• | increases in the cost of raw materials and energy, and our ability to pass through such increases; |
• | changes in our markets in general; |
• | fluctuations in foreign currencies; |
• | changes in laws and government regulation impacting our operations or our products; |
• | the occurrence of regulatory proceedings, claims or litigation; |
• | the occurrence of cyber-security breaches, terrorist attacks, industrial accidents, natural disasters or climate change; |
• | hazards associated with chemicals manufacturing; |
• | the inability to maintain current levels of product or premises liability insurance or the denial of such coverage; |
• | political unrest affecting the global economy, including adverse effects from terrorism or hostilities; |
• | political instability affecting our manufacturing operations or joint ventures; |
• | changes in accounting standards; |
• | the inability to achieve results from our global manufacturing cost reduction initiatives as well as our ongoing continuous improvement and rationalization programs; |
• | changes in the jurisdictional mix of our earnings and changes in tax laws and rates; |
• | changes in monetary policies, inflation or interest rates that may impact our ability to raise capital or increase our cost of funds, impact the performance of our pension fund investments and increase our pension expense and funding obligations; |
• | volatility and uncertainties in the debt and equity markets; |
• | technology or intellectual property infringement, including cyber-security breaches, and other innovation risks; |
• | decisions we may make in the future; |
• | the ability to successfully execute, operate and integrate acquisitions and divestitures; and |
• | the other factors detailed from time to time in the reports we file with the SEC. |
• | We repaid the 3.00% Senior notes in full, €307.0 million of the 1.875% Senior notes and $174.7 million of the 4.50% Senior notes, as well as related tender premiums of $45.2 million, using a portion of the proceeds from the sale of the Chemetall Surface Treatment business. |
• | We announced that Albemarle and Tianqi Lithium Corporation (“Tianqi”) terminated the option agreement for Tianqi to acquire a 20% indirect ownership interest in Rockwood Lithium GmbH, a wholly-owned German subsidiary of |
• | We announced the approval for the expansion of lithium concentrate production at our Greenbushes, Australia site through our 50% owned Talison joint venture. Commissioning of the expansion is expected to begin in the second quarter of 2019 and would more than double the current lithium carbonate capacity. |
• | We entered into a $250 million accelerated share repurchase (“ASR”) agreement, receiving and retiring an initial delivery of 1,948,178 shares of our common stock pursuant to the terms of the ASR agreement and our share repurchase program. |
• | Our board of directors declared a quarterly dividend of $0.32 per share on February 23, 2017, which was paid on April 3, 2017 to shareholders of record at the close of business as of March 15, 2017. |
• | Our net sales for the quarter were $722.1 million, up 10% from net sales of $657.2 million in the first quarter of 2016. Net sales from our reportable segments for the quarter were $689.0 million, an increase of 18% from net sales of $583.3 million in the first quarter of 2016. |
• | Earnings per share were $0.45 (on a diluted basis), a decrease from first quarter 2016 results of $1.87 per diluted share from continuing operations. |
• | Cash provided by operating activities was $82.6 million in the first quarter, a decrease from $172.7 million in the first quarter 2016. |
Three Months Ended March 31, | Percentage Change | |||||||||
2017 | 2016 | 2017 vs. 2016 | ||||||||
(In thousands, except percentages and per share amounts) | ||||||||||
NET SALES | $ | 722,063 | $ | 657,211 | 10 | % | ||||
Cost of goods sold | 466,975 | 414,677 | 13 | % | ||||||
GROSS PROFIT | 255,088 | 242,534 | 5 | % | ||||||
GROSS PROFIT MARGIN | 35.3 | % | 36.9 | % | ||||||
Selling, general and administrative expenses | 108,001 | 82,631 | 31 | % | ||||||
Research and development expenses | 24,323 | 19,872 | 22 | % | ||||||
Gain on sales of businesses, net | — | (121,324 | ) | (100 | )% | |||||
Acquisition and integration related costs | — | 18,558 | (100 | )% | ||||||
OPERATING PROFIT | 122,764 | 242,797 | (49 | )% | ||||||
OPERATING PROFIT MARGIN | 17.0 | % | 36.9 | % | ||||||
Interest and financing expenses | (68,513 | ) | (15,114 | ) | 353 | % | ||||
Other (expenses) income, net | (794 | ) | 47 | * | ||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN NET INCOME OF UNCONSOLIDATED INVESTMENTS | 53,457 | 227,730 | (77 | )% | ||||||
Income tax expense | 11,971 | 25,485 | (53 | )% | ||||||
Effective tax rate | 22.4 | % | 11.2 | % | ||||||
INCOME FROM CONTINUING OPERATIONS BEFORE EQUITY IN NET INCOME OF UNCONSOLIDATED INVESTMENTS | 41,486 | 202,245 | (79 | )% | ||||||
Equity in net income of unconsolidated investments (net of tax) | 21,171 | 15,991 | 32 | % | ||||||
NET INCOME FROM CONTINUING OPERATIONS | 62,657 | 218,236 | (71 | )% | ||||||
Income from discontinued operations (net of tax) | — | 17,312 | (100 | )% | ||||||
NET INCOME | 62,657 | 235,548 | (73 | )% | ||||||
Net income attributable to noncontrolling interests | (11,444 | ) | (7,362 | ) | 55 | % | ||||
NET INCOME ATTRIBUTABLE TO ALBEMARLE CORPORATION | $ | 51,213 | $ | 228,186 | (78 | )% | ||||
NET INCOME FROM CONTINUING OPERATIONS AS A PERCENTAGE OF NET SALES | 8.7 | % | 33.2 | % | ||||||
Basic earnings per share: | ||||||||||
Continuing operations | $ | 0.46 | $ | 1.88 | (76 | )% | ||||
Discontinued operations | — | 0.15 | (100 | )% | ||||||
$ | 0.46 | $ | 2.03 | (77 | )% | |||||
Diluted earnings per share: | ||||||||||
Continuing operations | $ | 0.45 | $ | 1.87 | (76 | )% | ||||
Discontinued operations | — | 0.15 | (100 | )% | ||||||
$ | 0.45 | $ | 2.02 | (78 | )% |
Three Months Ended March 31, | Percentage Change | |||||||||||||||
2017 | % | 2016 | % | 2017 vs. 2016 | ||||||||||||
(In thousands, except percentages) | ||||||||||||||||
Net sales: | ||||||||||||||||
Lithium and Advanced Materials | $ | 284,375 | 39.4 | % | $ | 216,173 | 32.9 | % | 32 | % | ||||||
Bromine Specialties | 219,191 | 30.4 | % | 196,553 | 29.9 | % | 12 | % | ||||||||
Refining Solutions | 185,412 | 25.7 | % | 170,579 | 26.0 | % | 9 | % | ||||||||
All Other | 32,419 | 4.4 | % | 72,089 | 10.9 | % | (55 | )% | ||||||||
Corporate | 666 | 0.1 | % | 1,817 | 0.3 | % | (63 | )% | ||||||||
Total net sales | $ | 722,063 | 100.0 | % | $ | 657,211 | 100.0 | % | 10 | % | ||||||
Adjusted EBITDA: | ||||||||||||||||
Lithium and Advanced Materials | $ | 120,022 | 56.8 | % | $ | 86,474 | 45.0 | % | 39 | % | ||||||
Bromine Specialties | 68,488 | 32.4 | % | 61,608 | 32.1 | % | 11 | % | ||||||||
Refining Solutions | 49,579 | 23.5 | % | 55,074 | 28.7 | % | (10 | )% | ||||||||
All Other | 5,156 | 2.4 | % | 8,464 | 4.4 | % | (39 | )% | ||||||||
Corporate | (31,869 | ) | (15.1 | )% | (19,587 | ) | (10.2 | )% | 63 | % | ||||||
Total adjusted EBITDA | $ | 211,376 | 100.0 | % | $ | 192,033 | 100.0 | % | 10 | % |
Lithium and Advanced Materials | Bromine Specialties | Refining Solutions | Reportable Segments Total | All Other | Corporate | Consolidated Total | |||||||||||||||||||||
Three months ended March 31, 2017 | |||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | 94,106 | $ | 58,694 | $ | 40,474 | $ | 193,274 | $ | 3,246 | $ | (145,307 | ) | $ | 51,213 | ||||||||||||
Depreciation and amortization | 22,743 | 9,794 | 9,105 | 41,642 | 1,910 | 1,518 | 45,070 | ||||||||||||||||||||
Utilization of inventory markup(a) | 10,606 | — | — | 10,606 | — | — | 10,606 | ||||||||||||||||||||
Restructuring and other(b) | — | — | — | — | — | 12,905 | 12,905 | ||||||||||||||||||||
Gain on acquisition(c) | (7,433 | ) | — | — | (7,433 | ) | — | — | (7,433 | ) | |||||||||||||||||
Acquisition and integration related costs(d) | — | — | — | — | — | 14,281 | 14,281 | ||||||||||||||||||||
Interest and financing expenses(e) | — | — | — | — | — | 68,513 | 68,513 | ||||||||||||||||||||
Income tax expense | — | — | — | — | — | 11,971 | 11,971 | ||||||||||||||||||||
Non-operating pension and OPEB items | — | — | — | — | — | (1,063 | ) | (1,063 | ) | ||||||||||||||||||
Other(f) | — | — | — | — | — | 5,313 | 5,313 | ||||||||||||||||||||
Adjusted EBITDA | $ | 120,022 | $ | 68,488 | $ | 49,579 | $ | 238,089 | $ | 5,156 | $ | (31,869 | ) | $ | 211,376 | ||||||||||||
Three months ended March 31, 2016 | |||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | 63,327 | $ | 51,853 | $ | 46,314 | $ | 161,494 | $ | 130,709 | $ | (64,017 | ) | $ | 228,186 | ||||||||||||
Depreciation and amortization | 23,147 | 9,755 | 8,760 | 41,662 | 612 | 1,335 | 43,609 | ||||||||||||||||||||
(Gain) loss on sales of businesses, net(g) | — | — | — | — | (122,857 | ) | 1,533 | (121,324 | ) | ||||||||||||||||||
Acquisition and integration related costs(h) | — | — | — | — | — | 18,558 | 18,558 | ||||||||||||||||||||
Interest and financing expenses | — | — | — | — | — | 15,114 | 15,114 | ||||||||||||||||||||
Income tax expense | — | — | — | — | — | 25,485 | 25,485 | ||||||||||||||||||||
Income from discontinued operations (net of tax) | — | — | — | — | — | (17,312 | ) | (17,312 | ) | ||||||||||||||||||
Non-operating pension and OPEB items | — | — | — | — | — | (283 | ) | (283 | ) | ||||||||||||||||||
Adjusted EBITDA | $ | 86,474 | $ | 61,608 | $ | 55,074 | $ | 203,156 | $ | 8,464 | $ | (19,587 | ) | $ | 192,033 |
(a) | In connection with the acquisition of Jiangli New Materials, the Company valued inventory purchased from Jiangli New Materials at fair value, which resulted in a markup of the underlying net book value of the inventory totaling approximately $23.0 million. The inventory markup is being expensed over the estimated remaining selling period. For the three-month period ended March 31, 2017, $10.6 million was included in Cost of goods sold related to the utilization of the inventory markup. |
(b) | During the first quarter of 2017, we initiated action to reduce costs at several locations, primarily at our Lithium site in Germany. Based on the restructuring plans, we have recorded expenses of $2.9 million in Cost of goods sold, $4.2 million in Selling, general and administrative expenses and $5.8 million in Research and development expenses, primarily related to severance, expected to be incurred. The unpaid balance is recorded in Accrued expenses at March 31, 2017, with the expectation that the majority of this plan will be completed by the end of 2017. |
(c) | Gain recorded in Other (expenses) income, net related to the acquisition of the remaining 50% interest in Salmag. See Item 1 Financial Statements – Note 2, “Acquisitions,” for additional information. |
(d) | Acquisition and integration related costs of $8.9 million and $5.4 million were included in Cost of goods sold and Selling, general and administrative expenses, respectively, on our consolidated statements of income for the three-month period ended March 31, 2017 primarily resulting from the Jiangli New Materials acquisition, including unusual compensation related costs negotiated specifically as a result of this acquisition that are outside of the Company’s normal compensation arrangements. |
(e) | Included in Interest and financing expenses is a loss on early extinguishment of debt of $52.8 million. See Item 1 Financial Statements – Note 10, “Long-term Debt,” for additional information. |
(f) | Included in Other (expenses) income, net are $3.2 million of asset retirement obligation charges related to the revision of an estimate at a site formerly owned by Albemarle and a loss of $2.1 million associated with the previous disposal of a business. |
(g) | See “Gain on Sales of Businesses, Net” on page 28 for a description of these items. |
(h) | See “Acquisition and Integration Related Costs” on page 28 for a description of these items. |
Issue Month/Year | Principal (in millions) | Interest Rate | Interest Payment Dates | Maturity Date | |||||
December 2014 | €393.0 | 1.875% | December 8 | December 8, 2021 | |||||
November 2014 | $425.0 | 4.15% | June 1 | December 1 | December 1, 2024 | ||||
November 2014 | $350.0 | 5.45% | June 1 | December 1 | December 1, 2044 | ||||
December 2010 | $175.3 | 4.50% | June 15 | December 15 | December 15, 2020 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Period | Total Number of Shares Repurchased | Average Price Paid Per Share | Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs(a) | Maximum Number of Shares that May Yet Be Repurchased Under the Plans or Programs | |||||||||
January 1, 2017 to January 31, 2017 | — | $ | — | — | 15,000,000 | ||||||||
February 1, 2017 to February 28, 2017 | — | — | — | 15,000,000 | |||||||||
March 1, 2017 to March 31, 2017(b) | 1,948,178 | 102.66 | 1,948,178 | 13,051,822 | |||||||||
Total | 1,948,178 | $ | 102.66 | 1,948,178 | 13,051,822 |
(a) | Our stock repurchase plan, which was authorized by our Board of Directors, became effective on October 25, 2000 and included ten million shares. Since then, the Company has regularly repurchased shares under the stock repurchase plan, resulting in the Board of Directors periodically authorizing additional shares for repurchase under the plan. On November 3, 2016, our Board of Directors authorized another increase in the number of shares, pursuant to which the Company is now permitted to repurchase up to a maximum of fifteen million shares under the plan, including those shares previously authorized, but not yet repurchased. The stock repurchase plan will expire when we have repurchased all shares authorized for repurchase thereunder, unless the stock repurchase plan is earlier terminated by action of our Board of Directors or further shares are authorized for repurchase. |
(b) | In the first quarter of 2017, we paid $250 million under an ASR Agreement, receiving and retiring an initial delivery of 1,948,178 shares. The Average Price Paid Per Share was calculated using the closing price per share of our common stock the date the ASR Agreement was signed. See Note 7, “Earnings Per Share,” to the condensed consolidated financial statements included in this report. |
Item 6. | Exhibits. |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a). | ||
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a). | ||
32.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350. | ||
32.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350. | ||
101 | Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended March 31, 2017, furnished in XBRL (eXtensible Business Reporting Language)). |
ALBEMARLE CORPORATION | |||||
(Registrant) | |||||
Date: | May 3, 2017 | By: | /S/ SCOTT A. TOZIER | ||
Scott A. Tozier | |||||
Executive Vice President and Chief Financial Officer | |||||
(principal financial officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Albemarle Corporation for the period ended March 31, 2017; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | May 3, 2017 |
/s/ LUTHER C. KISSAM IV |
Luther C. Kissam IV |
Chairman, President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Albemarle Corporation for the period ended March 31, 2017; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | May 3, 2017 |
/s/ SCOTT A. TOZIER |
Scott A. Tozier |
Executive Vice President and Chief Financial Officer |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ LUTHER C. KISSAM IV |
Luther C. Kissam IV |
Chairman, President and Chief Executive Officer |
May 3, 2017 |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ SCOTT A. TOZIER |
Scott A. Tozier |
Executive Vice President and Chief Financial Officer |
May 3, 2017 |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Apr. 26, 2017 |
|
Document And Entity Information [Abstract] [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ALB | |
Entity Registrant Name | ALBEMARLE CORP | |
Entity Central Index Key | 0000915913 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 110,752,288 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 62,657 | $ 235,548 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation | 79,055 | 98,906 |
Pension and postretirement benefits | (7) | 1 |
Net investment hedge | (13,685) | (9,524) |
Interest rate swap | 529 | 525 |
Total other comprehensive income, net of tax | 65,892 | 89,908 |
Comprehensive income | 128,549 | 325,456 |
Comprehensive income attributable to noncontrolling interests | (11,905) | (7,645) |
Comprehensive income attributable to Albemarle Corporation | $ 116,644 | $ 317,811 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 15,403 | $ 15,312 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, issued | 110,752 | 112,524 |
Common stock, outstanding | 110,752 | 112,524 |
Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
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 March 31, 2017 and December 31, 2016, our consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of changes in equity and condensed consolidated statements of cash flows for the three-month periods ended March 31, 2017 and 2016. Income tax expense for the three-month period ended March 31, 2017 includes income tax expense of $5.1 million due to an adjustment in the Company's deferred tax liabilities for basis differences in Chilean fixed assets related to the three-month period ended September 30, 2016. The Company does not believe this adjustment is material to the consolidated financial statements for the three-month period ended March 31, 2017, the three- or nine-month periods ended September 30, 2016, or the year ended December 31, 2016. All other adjustments are of a normal and recurring nature. 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, 2016, which was filed with the Securities and Exchange Commission (“SEC”) on February 28, 2017. The December 31, 2016 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 period ended March 31, 2017 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. In addition, for the three-month period ended March 31, 2017, the Company began reporting its acquisition and integration related costs and restructuring and other costs in Cost of goods sold, Selling, general and administrative expenses and Research and development expenses. See Note 2, “Acquisitions,” and Note 12, “Segment Information,” for further details. As described further in Note 3, “Divestitures,” on December 14, 2016, the Company closed the sale of its Chemetall® Surface Treatment business to BASF SE. Financial results of this business have been presented as discontinued operations in the consolidated statements of income and excluded from segment results for the three-month period ended March 31, 2016. |
Acquisitions |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions: On December 31, 2016, we completed the acquisition of all equity interests in the lithium hydroxide and lithium carbonate conversion business of Jiangxi Jiangli New Materials Science and Technology Co. Ltd. (“Jiangli New Materials”) for a cash purchase price of approximately $145 million. This includes manufacturing assets located in both Jiangxi and Sichuan, China focused on the production of battery-grade lithium carbonate and lithium hydroxide. This acquisition will enable us to supply premium lithium salts to an expanded global customer base while solidifying our leading position in the lithium industry. The aggregate purchase price was allocated to the major categories of assets and liabilities acquired based upon their estimated fair values as of December 31, 2016, which were based, in part, upon outside preliminary appraisals for certain assets. The preliminary estimated fair values of the assets and liabilities acquired were primarily related to Property, plant and equipment of $29.0 million, Other intangibles of $32.0 million and Deferred tax liabilities of $3.9 million. In addition, the estimated fair value of net working capital acquired was $6.2 million, however, an equal liability was recorded in Accrued expenses, as it will be repaid to the previous owners of the acquired business. The excess of the purchase price over the preliminary estimated fair value of the net assets acquired was approximately $87.9 million and was recorded as goodwill. The allocation of the purchase price to the assets acquired and liabilities assumed, including the residual amount allocated to goodwill, is based upon preliminary information and is subject to change within the measurement period (up to one year from the acquisition date) as additional information concerning final asset and liability valuations is obtained. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the property, plant and equipment, other intangible assets, deferred income taxes, as well as various working capital accounts. The fair values of the assets acquired and liabilities assumed are based on management’s preliminary estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. While the Company believes that such preliminary estimates provide a reasonable basis for estimating the fair value of assets acquired and liabilities assumed, it will evaluate any necessary information prior to finalization of the amounts. During the measurement period, the Company will adjust assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date. During the three-month period ended March 31, 2017, the Company purchased inventory with a fair value of $37.0 million in connection with the Jiangli New Materials acquisition, $19.4 million of which was paid during the first quarter. The fair value included the markup of the underlying book value of $23.0 million. The inventory markup is being expensed over the estimated remaining selling period, with $10.6 million recorded in the three-month period ended March 31, 2017. Goodwill arising from the acquisition consists largely of the anticipated synergies and economies of scale from the combined assets and the overall strategic importance of the acquired assets to Albemarle. The goodwill attributable to the acquisition will not be amortizable or deductible for tax purposes. The weighted-average amortization periods for the other intangible assets acquired are 20 years for patents and technology, 18 years for customer lists and relationships and 3 years for other. The weighted-average amortization period for all definite-lived intangible assets acquired is 17 years. On February 1, 2017, the Company acquired the remaining 50% interest in the Sales de Magnesio Ltda. (“Salmag”) joint venture in Chile from SQM Salar S.A. for approximately $8.3 million, net of cash acquired. In connection with the acquisition, the Company recorded a gain of $7.4 million, calculated based on the difference between the purchase price and the book value of the investment in Other (expenses) income, net on the consolidated statements of income for the three-month period ended March 31, 2017. The calculation of the gain and the fair values of the assets acquired and liabilities assumed are based on management’s preliminary estimates and assumptions. While the Company believes that such preliminary estimates provide a reasonable basis for estimating the fair value of assets acquired and liabilities assumed, it will evaluate any necessary information prior to finalization of the amounts. Acquisition and integration related costs of $8.9 million and $5.4 million were included in Cost of goods sold and Selling, general and administrative expenses, respectively, on our consolidated statements of income for the three-month period ended March 31, 2017, primarily resulting from the Jiangli New Materials acquisition, including unusual compensation related costs negotiated specifically as a result of this acquisition that are outside of the Company’s normal compensation arrangements. Included in Acquisition and integration related costs on our consolidated statements of income for the the three-month period ended March 31, 2016 were $16.9 million of integration costs resulting from the acquisition of Rockwood Holdings, Inc. (mainly consisting of professional services and advisory fees, costs to achieve synergies, relocation costs, and other integration costs) and $1.7 million of costs in connection with other significant projects. |
Divestitures Divestitures |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestitures | Divestitures: Discontinued Operations On June 17, 2016, we entered into a definitive agreement to sell the Chemetall Surface Treatment business to BASF SE. On December 14, 2016, the Company closed the sale of this business and received proceeds of approximately $3.1 billion, net of purchase price adjustments. The sale of the Chemetall Surface Treatment business, a separate reportable segment, qualified for discontinued operations treatment because it represented a strategic shift that will have a major effect on the Company’s operations and financial results. As a result, the Company accounted for this business as discontinued operations in the consolidated statements of income and excluded the business from segment results for the three-month period ended March 31, 2016. The Company stopped recording depreciation and amortization expense on assets of the Chemetall Surface Treatment business as of the date this business qualified for discontinued operations treatment, in the second quarter of 2016. The major components of Income from discontinued operations (net of tax) for the three-month period ended March 31, 2016 were as follows (in thousands):
Depreciation and amortization and capital expenditures from discontinued operations for the three-month period ended March 31, 2016 were as follows (in thousands):
Other Divestitures On November 5, 2015, the Company signed a definitive agreement to sell its Tribotecc metal sulfides business to Treibacher Industrie AG. Included in the transaction were sites in Vienna and Arnoldstein, Austria, and Tribotecc’s proprietary sulfide synthesis process. On January 4, 2016, the Company closed the sale of this business, effective for the first day of business in 2016. We received net proceeds of approximately $137 million and recorded a gain of $11.5 million before income taxes in the first quarter of 2016 related to the sale of this business. On December 16, 2015, the Company signed a definitive agreement to sell its minerals-based flame retardants and specialty chemicals business to Huber Engineered Materials, a division of J.M. Huber Corporation. The transaction included Albemarle’s Martinswerk GmbH subsidiary and manufacturing facility located in Bergheim, Germany, and Albemarle’s 50% ownership interest in Magnifin Magnesiaprodukte GmbH, a joint-venture with Radex Heraklith Industriebeteiligung AG at Breitenau, Austria. On February 1, 2016, the Company closed the sale of these businesses. We received net proceeds of approximately $187 million and recorded a gain of $111.3 million before income taxes in the first quarter of 2016 related to the sale of these businesses. Also included in Gain on sales of businesses, net, for the first quarter of 2016 was a loss of $1.5 million on the sale of our wafer reclaim business. These businesses did not qualify for discontinued operations treatment because the Company’s management did not consider their sale as representing a strategic shift that had or will have a major effect on the Company’s operations and financial results. |
Goodwill and Other Intangibles |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangibles | Goodwill and Other Intangibles: The following table summarizes the changes in goodwill by reportable segment for the three months ended March 31, 2017 (in thousands):
The following table summarizes the changes in other intangibles and related accumulated amortization for the three months ended March 31, 2017 (in thousands):
|
Foreign Exchange |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Foreign Currency [Abstract] | |
Foreign Exchange | Foreign Exchange: Foreign exchange transaction losses were $4.9 million and $0.1 million for the three-month periods ended March 31, 2017 and 2016, respectively, and were included in Other (expenses) income, net, in our consolidated statements of income, with the unrealized portion included in Other, net, in our condensed consolidated statements of cash flows. |
Income Taxes |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: The effective income tax rate for the three-month period ended March 31, 2017 was 22.4%, compared to 11.2% for the three-month period ended March 31, 2016. 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 2017 and 2016 periods was primarily due to the impact of earnings from outside the U.S., and is 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. In addition, Income tax expense for the three-month period ended March 31, 2017 included a $5.1 million out-of-period adjustment as described in Note 1, "Basis of Presentation," partially offset by a $4.1 million reduction from the tax effects of share-based compensation awards. Our effective tax rate for the three-month period ended March 31, 2016 was driven down by a variety of factors, primarily low tax gains from the sale of the minerals-based flame retardant business, as well as a favorable mix of earnings in lower tax jurisdictions. |
Earnings Per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share from continuing operations for the three-month periods ended March 31, 2017 and 2016 are calculated as follows (in thousands, except per share amounts):
On February 23, 2017, the Company increased the regular quarterly dividend by 5% to $0.32 per share and declared a cash dividend of said amount for the first quarter of 2017, which was paid on April 3, 2017 to shareholders of record at the close of business as of March 15, 2017. Under our existing Board authorized share repurchase program, the Company entered into an accelerated share repurchase (“ASR”) agreement with a financial institution on March 1, 2017. Under the ASR agreement, in March 2017, the Company paid $250 million from available cash on hand and received and retired an initial delivery of 1,948,178 shares of our common stock with a fair market value of $200 million, which reduced the Company’s weighted average shares outstanding for purposes of calculating basic and diluted earnings per share for the three-month period ended March 31, 2017. The total number of shares to ultimately be delivered under the ASR agreement will be determined upon completion of the ASR agreement, which will be by the end of the second quarter of 2017, and will generally be based on the daily Rule 10b-18 volume-weighted average prices of the Company’s common stock over the term of the ASR agreement, less an agreed discount. The Company has determined that the ASR agreement meets the criteria to be accounted for as a forward contract indexed to its stock and is therefore being treated as an equity instrument. Although the ASR agreement can be settled, at the Company’s option, in cash or in shares of common stock, the Company intends to settle in shares of common stock. No more than 15,000,000 shares can be repurchased under the Company’s authorized share repurchase program. As of March 31, 2017, there were 13,051,822 remaining shares available for repurchase under the Company’s authorized share repurchase program. |
Inventories |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories: The following table provides a breakdown of inventories at March 31, 2017 and December 31, 2016 (in thousands):
|
Investments |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments: The Company holds a 49% equity interest in Windfield Holdings Pty. Ltd. (“Windfield”). With regard to the Company’s ownership in Windfield, the parties share risks and benefits disproportionate to their voting interests. As a result, the Company considers Windfield to be a variable interest entity (“VIE”). However, the Company does not consolidate Windfield as it is not the primary beneficiary. The carrying amount of our 49% equity interest in Windfield, which is our most significant VIE, was $318.8 million and $288.6 million at March 31, 2017 and December 31, 2016, respectively. The Company’s aggregate net investment in all other entities which it considers to be VIE’s for which the Company is not the primary beneficiary was $9.1 million and $8.8 million at March 31, 2017 and December 31, 2016, respectively. Our unconsolidated VIE’s are reported in Investments in 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. As part of the original Windfield joint venture agreement, Tianqi Lithium Corporation ("Tianqi") was granted an option to purchase from 20% to 30% of the equity interests in Rockwood Lithium GmbH, a wholly-owned German subsidiary of Albemarle, and its subsidiaries. In February 2017, Albemarle and Tianqi terminated the option agreement, and as a result, we will retain 100% of the ownership interest in Rockwood Lithium GmbH and its subsidiaries. Following the termination of the option agreement, the $13.1 million fair value of the option agreement originally recorded in Noncontrolling interests was reversed and recorded as an adjustment to Additional paid-in capital. |
Long-Term Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-Term Debt: Long-term debt at March 31, 2017 and December 31, 2016 consisted of the following (in thousands):
In the three-month period ended March 31, 2017, using a portion of the proceeds from the sale of the Chemetall Surface Treatment business, we repaid the 3.00% Senior notes in full, €307.0 million of the 1.875% Senior notes and $174.7 million of the 4.50% Senior notes, as well as related tender premiums of $45.2 million. As a result, during the three-month period ended March 31, 2017, we recorded a loss on early extinguishment of debt of $52.8 million in Interest and financing expenses on the consolidated statements of income, representing the tender premiums, fees, unamortized discounts and unamortized deferred financings costs from the redemption of these senior notes. Current portion of long-term debt at March 31, 2017 consisted of commercial paper notes with a weighted-average interest rate of approximately 1.54% and a weighted-average maturity of 29 days. 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 periods ended March 31, 2017 and 2016, losses of $13.7 million and $9.5 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. |
Commitments and Contingencies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies: Environmental We had the following activity in our recorded environmental liabilities for the three months ended March 31, 2017, as follows (in thousands):
Environmental remediation liabilities included discounted liabilities of $24.2 million and $22.8 million at March 31, 2017 and December 31, 2016, respectively, discounted at rates with a weighted-average of 3.6%, with the undiscounted amount totaling $62.1 million and $61.1 million at March 31, 2017 and December 31, 2016, 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, in excess of amounts already recorded, could be up to approximately $17 million before income taxes. We believe that any sum we may be required to pay in connection with environmental remediation matters in excess of the amounts recorded would likely occur over a period of time and would likely not have a material adverse effect upon our results of operations, financial condition or cash flows on a consolidated annual basis although any such sum could have a material adverse impact on our results of operations, financial condition or cash flows in a particular quarterly reporting period. Litigation We are involved from time to time in legal proceedings of types regarded as common in our business, including administrative or judicial proceedings seeking remediation under environmental laws, such as the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as CERCLA or Superfund, products liability, breach of contract liability and premises liability litigation. Where appropriate, we may establish financial reserves for such proceedings. We also maintain insurance to mitigate certain of such risks. Costs for legal services are generally expensed as incurred. Indemnities We are indemnified by third parties in connection with certain matters related to acquired and divested businesses. Although we believe that the financial condition of those parties who may have indemnification obligations to the Company is generally sound, in the event the Company seeks indemnity under any of these agreements or through other means, there can be no assurance that any party who may have obligations to indemnify us will adhere to their obligations and we may have to resort to legal action to enforce our rights under the indemnities. The Company may be subject to indemnity claims relating to properties or businesses it divested, including properties or businesses of acquired businesses that were divested prior to the completion of the acquisition. In the opinion of management, and based upon information currently available, the ultimate resolution of any indemnification obligations owed to the Company or by the Company is not expected to have a material effect on the Company’s financial condition, results of operations or cash flows. The Company had approximately $39.5 million and $38.2 million at March 31, 2017 and December 31, 2016, 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. |
Segment Information |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segments | Segment Information: Our three reportable segments include Lithium and Advanced Materials, Bromine Specialties and Refining Solutions. 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 structure aligns with the markets and customers we serve through each of the segments. The 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 comprises operating segments that did not fit into any of our core businesses. During the first quarter of 2016, we completed the sales of the metal sulfides business and the minerals-based flame retardants and specialty chemicals businesses. For additional information about these businesses, see Note 3, “Divestitures.” Following the sales of these businesses, the “All Other” category includes only the fine chemistry services business. The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the operating segments. Pension and OPEB service cost (which represents the benefits earned by active employees during the period) and amortization of prior service cost or benefit are allocated to the reportable segments, All Other, and Corporate, whereas the remaining components of pension and OPEB benefits cost or credit (“Non-operating pension and OPEB items”) are included in Corporate. Segment data includes intersegment transfers of raw materials at cost and allocations for certain corporate costs. The Company’s chief operating decision maker uses earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain non-recurring or unusual items such as acquisition and integration related costs, utilization of inventory markup, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, non-operating pension and OPEB items and other significant non-recurring items (“adjusted EBITDA”), in a balanced manner and on a segment basis to assess the ongoing performance of the Company’s business segments and to allocate resources. 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 (loss) 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.
See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income (loss) attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands):
|
Pension Plans and Other Postretirement Benefits |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits: The components of pension and postretirement benefits cost (credit) from continuing operations for the three-month periods ended March 31, 2017 and 2016 were as follows (in thousands):
During the three-month periods ended March 31, 2017 and 2016, we made contributions of $2.4 million to our qualified and nonqualified pension plans for continuing operations. Contributions to discontinued operations qualified and nonqualified pension plans were $1.0 million for the three-month period ended March 31, 2016. We paid $0.5 million and $0.8 million in premiums to the U.S. postretirement benefit plan during the three-month periods ended March 31, 2017 and 2016, respectively. Multiemployer Plan Our contributions to the Pensionskasse Dynamit Nobel Versicherungsverein auf Gegenseitigkeit, Troisdorf (“DN Pensionskasse”) multiemployer plan for continuing operations were €0.2 million (approximately $0.2 million and $0.3 million) during the three-month periods ended March 31, 2017 and 2016, respectively. Contributions for discontinued operations were €0.2 million (approximately $0.2 million) during the three-month period ended March 31, 2016. |
Fair Value of Financial Instruments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 senior 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.
Foreign Currency Forward Contracts—we enter into foreign currency forward contracts in connection with our risk management strategies 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 foreign currency forward contracts are estimated based on current settlement values. At March 31, 2017 and December 31, 2016, we had outstanding foreign currency forward contracts with notional values totaling $285.9 million and $251.6 million, respectively. Our foreign currency forward contracts outstanding at March 31, 2017 and December 31, 2016 were not designated as hedging instruments under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging. At March 31, 2017, less than $0.1 million was included in Other accounts receivable associated with the fair value of our foreign currency forward contracts, and at December 31, 2016, $0.2 million was included in Accrued expenses associated with the fair value of our foreign currency forward contracts. Gains and losses on foreign currency forward contracts are recognized in Other (expenses) income, net; further, fluctuations in the value of these contracts are generally expected to be offset by changes in the value of the underlying exposures being hedged, which are also reported in Other (expenses) income, net. For the three-month periods ended March 31, 2017 and 2016, we recognized gains of $4.5 million and $5.8 million, respectively, in Other (expenses) income, net, in our consolidated statements of income related to the change in the fair value of our foreign currency forward contracts. Also, for the three-month periods ended March 31, 2017 and 2016, we recorded gains of $4.5 million and $5.8 million, respectively, related to the change in the fair value of our foreign currency forward contracts, and net cash receipts of $4.3 million and $5.1 million, respectively, in Other, net, in our condensed consolidated statements of cash flows. 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 |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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. Transfers between levels of the fair value hierarchy are deemed to have occurred on the date of the event or change in circumstance that caused the transfer. There were no transfers between Levels 1 and 2 during the three-month period ended March 31, 2017. The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 (in thousands):
|
Accumulated Other Comprehensive (Loss) Income |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
The amount of income tax (expense) benefit allocated to each component of Other comprehensive income (loss) for the three-month periods ended March 31, 2017 and 2016 is provided in the following tables (in thousands):
|
Related Party Transactions |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions: Our condensed consolidated financial statements include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands):
|
Recently Issued Accounting Pronouncements |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued accounting guidance designed to enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that revenue recognized from a transaction or event that arises from a contract with a customer should reflect the consideration to which an entity expects to be entitled in exchange for goods or services provided. To achieve that core principle the new guidance sets forth a five-step revenue recognition model that will need to be applied consistently to all contracts with customers, except those that are within the scope of other topics in the ASC. Also required are new disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. The new disclosures include qualitative and quantitative information about contracts with customers, significant judgments made in applying the revenue guidance, and assets recognized related to the costs to obtain or fulfill a contract. In March 2016 and April 2016, the FASB issued amendments to this new guidance that provides clarification about principal versus agent considerations, identification of performance obligations and accounting for the licensing of intellectual property. In May 2016, the FASB issued an amendment to the guidance that provides clarification about collectibility, noncash consideration, presentation of sales tax, and transition. In December 2016, the FASB issued an amendment to the guidance that provides narrow-scope improvements and practical expedient regarding collectibility, presentation of sales tax collected from customers, non-cash considerations, contract modifications at transition, completed contracts at transition and other technical corrections. These new requirements become effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2016. We expect to adopt the new standard in the first quarter of 2018 using the modified retrospective method. We have made significant progress in evaluating our existing contracts and accounting policies to determine the impact this standard will have on the condensed consolidated financial statements and related disclosures. In July 2015, the FASB issued accounting guidance that requires inventory to be measured at the lower of cost and net realizable value. The scope of this guidance excludes inventory measured using the last-in first-out method or the retail inventory method. This new requirement became effective on January 1, 2017 and did not have a significant impact on our condensed consolidated financial statements. In February 2016, the FASB issued accounting guidance that requires assets and liabilities arising from leases to be recorded on the balance sheet. Additional disclosures are required regarding the amount, timing, and uncertainty of cash flows from leases. This new guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and is to be applied using a modified retrospective approach. Early adoption is permitted. The impact of this new requirement on our financial statements is being assessed and is not yet known. In March 2016, the FASB issued accounting guidance that simplifies several aspects of the accounting for share-based payment awards. Among other things, this guidance requires all tax effects related to share-based payment awards to be recognized as income tax expense or benefit on the income statement, thus eliminating all additional paid-in capital pools. An entity should recognize excess tax benefits regardless of whether the benefit reduces income taxes payable in the current period. For interim reporting purposes, excess tax benefits and tax deficiencies should be accounted for as discrete items in the reporting period in which they occur. Additionally, this new guidance requires all tax related cash flows resulting from share-based payments to be presented as an operating activity on the statement of cash flows rather than as a financing activity. This guidance became effective on January 1, 2017. The impact of recognizing excess tax benefits in the income statement resulted in a $4.1 million reduction in Income tax expense for the three-month period ended March 31, 2017. The remaining aspects of adopting this guidance did not have a material impact on our condensed consolidated financial statements. In August 2016, the FASB issued accounting guidance which clarifies the proper presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The new guidance addresses cash flow issues including, but not limited to, debt prepayment or debt extinguishment costs and distributions received from equity method investments. As allowed by the provisions of this new guidance, we early-adopted this new guidance in the first quarter of 2017. The adoption of this new guidance did not have a significant impact on our condensed consolidated financial statements. In November 2016, the FASB issued accounting guidance that requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning and end of period total amounts shown on the statement of cash flows. This guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied on a retrospective basis. Early adoption is permitted. We do not expect this guidance to have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to clarify the definition of a business for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied on a prospective basis. Early adoption is permitted. We currently do not expect this guidance to have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a reporting unit to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit has been acquired in a business combination. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. This guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is to be applied on a prospective basis. Early adoption is permitted for goodwill impairment tests performed after January 1, 2017. We do not expect this guidance to have a significant impact on our financial statements. In March 2017, the FASB issued accounting guidance that changes the presentation of net periodic pension and postretirement benefit cost (“net benefit cost”) in the income statement. This new guidance requires service cost to be presented as part of operating income (expense) and all other components of net benefit cost are to be shown outside of operations. This guidance will be effective for periods beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied on a retrospective basis. Early adoption is permitted as of the beginning of an annual period for which an entity’s financial statements have not been issued or made available for issuance. We do not expect this guidance to have a significant impact on our financial statements. |
Recently Issued Accounting Pronouncements (Policies) |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued accounting guidance designed to enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that revenue recognized from a transaction or event that arises from a contract with a customer should reflect the consideration to which an entity expects to be entitled in exchange for goods or services provided. To achieve that core principle the new guidance sets forth a five-step revenue recognition model that will need to be applied consistently to all contracts with customers, except those that are within the scope of other topics in the ASC. Also required are new disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. The new disclosures include qualitative and quantitative information about contracts with customers, significant judgments made in applying the revenue guidance, and assets recognized related to the costs to obtain or fulfill a contract. In March 2016 and April 2016, the FASB issued amendments to this new guidance that provides clarification about principal versus agent considerations, identification of performance obligations and accounting for the licensing of intellectual property. In May 2016, the FASB issued an amendment to the guidance that provides clarification about collectibility, noncash consideration, presentation of sales tax, and transition. In December 2016, the FASB issued an amendment to the guidance that provides narrow-scope improvements and practical expedient regarding collectibility, presentation of sales tax collected from customers, non-cash considerations, contract modifications at transition, completed contracts at transition and other technical corrections. These new requirements become effective for annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted for annual and interim reporting periods beginning after December 15, 2016. We expect to adopt the new standard in the first quarter of 2018 using the modified retrospective method. We have made significant progress in evaluating our existing contracts and accounting policies to determine the impact this standard will have on the condensed consolidated financial statements and related disclosures. In July 2015, the FASB issued accounting guidance that requires inventory to be measured at the lower of cost and net realizable value. The scope of this guidance excludes inventory measured using the last-in first-out method or the retail inventory method. This new requirement became effective on January 1, 2017 and did not have a significant impact on our condensed consolidated financial statements. In February 2016, the FASB issued accounting guidance that requires assets and liabilities arising from leases to be recorded on the balance sheet. Additional disclosures are required regarding the amount, timing, and uncertainty of cash flows from leases. This new guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and is to be applied using a modified retrospective approach. Early adoption is permitted. The impact of this new requirement on our financial statements is being assessed and is not yet known. In March 2016, the FASB issued accounting guidance that simplifies several aspects of the accounting for share-based payment awards. Among other things, this guidance requires all tax effects related to share-based payment awards to be recognized as income tax expense or benefit on the income statement, thus eliminating all additional paid-in capital pools. An entity should recognize excess tax benefits regardless of whether the benefit reduces income taxes payable in the current period. For interim reporting purposes, excess tax benefits and tax deficiencies should be accounted for as discrete items in the reporting period in which they occur. Additionally, this new guidance requires all tax related cash flows resulting from share-based payments to be presented as an operating activity on the statement of cash flows rather than as a financing activity. This guidance became effective on January 1, 2017. The impact of recognizing excess tax benefits in the income statement resulted in a $4.1 million reduction in Income tax expense for the three-month period ended March 31, 2017. The remaining aspects of adopting this guidance did not have a material impact on our condensed consolidated financial statements. In August 2016, the FASB issued accounting guidance which clarifies the proper presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The new guidance addresses cash flow issues including, but not limited to, debt prepayment or debt extinguishment costs and distributions received from equity method investments. As allowed by the provisions of this new guidance, we early-adopted this new guidance in the first quarter of 2017. The adoption of this new guidance did not have a significant impact on our condensed consolidated financial statements. In November 2016, the FASB issued accounting guidance that requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning and end of period total amounts shown on the statement of cash flows. This guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied on a retrospective basis. Early adoption is permitted. We do not expect this guidance to have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to clarify the definition of a business for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied on a prospective basis. Early adoption is permitted. We currently do not expect this guidance to have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a reporting unit to calculate the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit has been acquired in a business combination. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. This guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and is to be applied on a prospective basis. Early adoption is permitted for goodwill impairment tests performed after January 1, 2017. We do not expect this guidance to have a significant impact on our financial statements. In March 2017, the FASB issued accounting guidance that changes the presentation of net periodic pension and postretirement benefit cost (“net benefit cost”) in the income statement. This new guidance requires service cost to be presented as part of operating income (expense) and all other components of net benefit cost are to be shown outside of operations. This guidance will be effective for periods beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied on a retrospective basis. Early adoption is permitted as of the beginning of an annual period for which an entity’s financial statements have not been issued or made available for issuance. We do not expect this guidance to have a significant impact on our financial statements. |
Divestitures Divestitures (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of discontinued operations | The major components of Income from discontinued operations (net of tax) for the three-month period ended March 31, 2016 were as follows (in thousands):
Depreciation and amortization and capital expenditures from discontinued operations for the three-month period ended March 31, 2016 were as follows (in thousands):
|
Goodwill and Other Intangibles (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Goodwill | The following table summarizes the changes in goodwill by reportable segment for the three months ended March 31, 2017 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Intangibles | The following table summarizes the changes in other intangibles and related accumulated amortization for the three months ended March 31, 2017 (in thousands):
|
Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Basic and Diluted Earning Per Share | Basic and diluted earnings per share from continuing operations for the three-month periods ended March 31, 2017 and 2016 are calculated as follows (in thousands, except per share amounts):
|
Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown of Inventories | The following table provides a breakdown of inventories at March 31, 2017 and December 31, 2016 (in thousands):
|
Long-Term Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-term debt at March 31, 2017 and December 31, 2016 consisted of the following (in thousands):
|
Commitments and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Activity in Recorded Environmental Liabilities | We had the following activity in our recorded environmental liabilities for the three months ended March 31, 2017, as follows (in thousands):
|
Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segments Summarized Financial Information |
See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income (loss) attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands):
|
Pension Plans and Other Postretirement Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic and Foreign Pension and Postretirement Defined Benefit Plans | The components of pension and postretirement benefits cost (credit) from continuing operations for the three-month periods ended March 31, 2017 and 2016 were as follows (in thousands):
|
Fair Value of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
Fair Value Measurement (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 (in thousands):
|
Accumulated Other Comprehensive (Loss) Income (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 periods ended March 31, 2017 and 2016 is provided in the following tables (in thousands):
|
Related Party Transactions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | Our condensed consolidated financial statements include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands):
|
Basis of Presentation Basis of Presentation - Additional Information (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other tax expense | $ 5.1 |
Divestitures Divestitures- Discontinued Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations (net of tax) | $ 0 | $ 17,312 | ||
Chemetall Surface Treatment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 208,187 | |||
Cost of goods sold | 113,323 | |||
Operating expenses, net | 62,853 | |||
Interest and financing expenses | [1] | 10,137 | ||
Other income, net | (938) | |||
Income before income taxes | 22,812 | |||
Income tax expense | 5,500 | |||
Income from discontinued operations (net of tax) | 17,312 | |||
Depreciation and amortization | 16,943 | |||
Capital expenditures | $ 5,747 | |||
|
Goodwill and Other Intangibles Other Intangibles (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Asset Value, Beginning of Period | $ 461,685 | ||||||
Acquisitions | [1] | 47,189 | |||||
Foreign currency translation adjustments and other | 12,892 | ||||||
Gross Asset Value, End of Period | 521,766 | ||||||
Accumulated Amortization, Beginning of Period | (107,121) | ||||||
Amortization | (5,740) | ||||||
Foreign currency translation adjustments and other | 1,452 | ||||||
Accumulated Amortization, End of Period | (111,409) | ||||||
Net Book Value | 410,357 | $ 354,564 | |||||
Customer lists and relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Asset Value, Beginning of Period | 387,893 | ||||||
Acquisitions | [1] | 1,717 | |||||
Foreign currency translation adjustments and other | 10,340 | ||||||
Gross Asset Value, End of Period | 399,950 | ||||||
Accumulated Amortization, Beginning of Period | (49,165) | ||||||
Amortization | (4,801) | ||||||
Foreign currency translation adjustments and other | (1,164) | ||||||
Accumulated Amortization, End of Period | (55,130) | ||||||
Net Book Value | 344,820 | 338,728 | |||||
Trade names and trademarks | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Asset Value, Beginning of Period | [2] | 16,514 | |||||
Acquisitions | [1] | 0 | |||||
Foreign currency translation adjustments and other | 264 | ||||||
Gross Asset Value, End of Period | [2] | 16,778 | |||||
Accumulated Amortization, Beginning of Period | [2] | (7,952) | |||||
Amortization | 0 | ||||||
Foreign currency translation adjustments and other | (94) | ||||||
Accumulated Amortization, End of Period | [2] | (8,046) | |||||
Net Book Value | [2] | 8,732 | 8,562 | ||||
Patents and technology | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Asset Value, Beginning of Period | 38,434 | ||||||
Acquisitions | [1] | 25,555 | |||||
Foreign currency translation adjustments and other | 514 | ||||||
Gross Asset Value, End of Period | 64,503 | ||||||
Accumulated Amortization, Beginning of Period | (31,683) | ||||||
Amortization | (413) | ||||||
Foreign currency translation adjustments and other | (503) | ||||||
Accumulated Amortization, End of Period | (32,599) | ||||||
Net Book Value | 31,904 | 6,751 | |||||
Other | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross Asset Value, Beginning of Period | 18,844 | ||||||
Acquisitions | [1] | 19,917 | |||||
Foreign currency translation adjustments and other | 1,774 | ||||||
Gross Asset Value, End of Period | 40,535 | ||||||
Accumulated Amortization, Beginning of Period | (18,321) | ||||||
Amortization | (526) | ||||||
Foreign currency translation adjustments and other | 3,213 | ||||||
Accumulated Amortization, End of Period | (15,634) | ||||||
Net Book Value | $ 24,901 | $ 523 | |||||
|
Foreign Exchange - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Foreign Currency [Abstract] | ||
Net foreign exchange transaction losses | $ (4.9) | $ (0.1) |
Income Taxes - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 22.40% | 11.20% |
Other tax expense | $ 5.1 | |
Excess tax benefits | $ 4.1 |
Earnings Per Share Calculation of Basic and Diluted Earnings Per Share From Continuing Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Basic earnings per share from continuing operations | ||
Net income from continuing operations | $ 62,657 | $ 218,236 |
Net income from continuing operations attributable to noncontrolling interests | (11,444) | (7,362) |
Net income from continuing operations attributable to Albemarle Corporation | $ 51,213 | $ 210,874 |
Weighted-average common shares for basic earnings per share (in shares) | 111,986 | 112,260 |
Basic earnings per share from continuing operations (in dollars per share) | $ 0.46 | $ 1.88 |
Diluted earnings per share from continuing operations | ||
Net income from continuing operations | $ 62,657 | $ 218,236 |
Net income from continuing operations attributable to noncontrolling interests | (11,444) | (7,362) |
Net income from continuing operations attributable to Albemarle Corporation | $ 51,213 | $ 210,874 |
Weighted-average common shares for basic earnings per share (in shares) | 111,986 | 112,260 |
Incremental shares under stock compensation plans (in shares) | 1,303 | 510 |
Weighted-average common shares outstanding - diluted (in shares) | 113,289 | 112,770 |
Diluted earnings per share from continuing operations (in dollars per share) | $ 0.45 | $ 1.87 |
Earnings Per Share - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Feb. 23, 2017 |
|
Earnings Per Share Disclosure [Line Items] | ||||
Increase in dividend rate, percentage | 5.00% | |||
Cash dividend, amount per share (in dollars per share) | $ 0.32 | |||
Payment for repurchase of common stock | $ 250,000 | $ 0 | ||
Number of shares authorized to be repurchased (in shares) | 15,000,000 | 15,000,000 | ||
Shares available for repurchase (in shares) | 13,051,822 | 13,051,822 | ||
Accelerated Share Repurchase Agreement | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Payment for repurchase of common stock | $ 250,000 | |||
Initial Delivery | Accelerated Share Repurchase Agreement | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Repurchase of common stock shares (in shares) | 1,948,178 | |||
Fair Market Value | Accelerated Share Repurchase Agreement | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Shares repurchased | $ 200,000 |
Inventories Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
||
---|---|---|---|---|
Inventory Disclosure [Abstract] | ||||
Finished goods | $ 345,892 | $ 289,102 | ||
Raw materials and work in process | [1] | 120,759 | 109,706 | |
Stores, supplies and other | 52,285 | 51,455 | ||
Total inventories | $ 518,936 | $ 450,263 | ||
|
Inventories Inventories - Additional Information (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Lithium | ||
Inventory [Line Items] | ||
Work in process related to Lithium | $ 50.1 | $ 47.1 |
Investments - Additional Information (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Feb. 28, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Schedule of Investments [Line Items] | |||
Termination of Tianqi option agreement | $ 13,100 | $ 0 | |
Windfield Holdings | |||
Schedule of Investments [Line Items] | |||
Equity method investment, ownership percentage | 49.00% | ||
Carrying value of unconsolidated investment | $ 318,800 | $ 288,600 | |
Other variable interest entities | |||
Schedule of Investments [Line Items] | |||
Carrying value of unconsolidated investment | $ 9,100 | $ 8,800 | |
Rockwood Lithium GmbH | |||
Schedule of Investments [Line Items] | |||
Ownership Percentage | 100.00% | ||
Minimum | Rockwood Lithium GmbH | |||
Schedule of Investments [Line Items] | |||
Ownership Percentage | 20.00% | ||
Maximum | Rockwood Lithium GmbH | |||
Schedule of Investments [Line Items] | |||
Ownership Percentage | 30.00% |
Long-Term Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,712,886 | $ 2,369,262 |
Current portion of long-term debt | 314,500 | 247,544 |
Long-term debt | 1,398,386 | 2,121,718 |
Senior Notes | 1.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 418,471 | 719,617 |
Senior Notes | 3.00% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 0 | 248,714 |
Senior Notes | 4.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 421,262 | 421,141 |
Senior Notes | 4.50% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 174,098 | 347,620 |
Senior Notes | 5.45% Senior Notes | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 345,726 | 345,687 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 314,500 | 247,503 |
Variable-rate foreign bank loans | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 38,829 | 38,939 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 0 | $ 41 |
Long-Term Debt - Additional Information (Details) $ in Thousands, € in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017
EUR (€)
|
Mar. 31, 2017
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2016 |
|
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 751,209 | $ 331,595 | ||
Payments of debt premium | 45,200 | |||
Loss on early extinguishment of debt | 52,801 | 0 | ||
Net investment hedge, loss | $ (13,685) | $ (9,524) | ||
3.00% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 3.00% | 3.00% | 3.00% | |
1.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 1.875% | 1.875% | 1.875% | |
4.50% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 4.50% | 4.50% | 4.50% | |
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 1.54% | 1.54% | ||
Debt instrument maturity period | 29 days | 29 days | ||
Senior Notes | 3.00% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 250,000 | |||
Senior Notes | 1.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | € | € 307.0 | |||
Senior Notes | 4.50% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 174,700 |
Long-Term Debt Interest Rates (Details) $ in Thousands, € in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017
EUR (€)
|
Mar. 31, 2017
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 751,209 | $ 331,595 | ||
1.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized discount and debt issuance costs | $ 4,305 | $ 7,823 | ||
Debt instrument, interest rate | 1.875% | 1.875% | ||
3.00% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized discount and debt issuance costs | $ 0 | $ 1,286 | ||
Debt instrument, interest rate | 3.00% | 3.00% | ||
4.15% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized discount and debt issuance costs | $ 3,737 | $ 3,859 | ||
Debt instrument, interest rate | 4.15% | 4.15% | ||
4.50% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized discount and debt issuance costs | $ 1,116 | $ 2,380 | ||
Debt instrument, interest rate | 4.50% | 4.50% | ||
5.45% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized discount and debt issuance costs | $ 4,274 | $ 4,313 | ||
Debt instrument, interest rate | 5.45% | 5.45% | ||
Senior Notes | 1.875% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | € | € 307.0 | |||
Senior Notes | 3.00% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 250,000 | |||
Senior Notes | 4.50% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repayments of long-term debt | $ 174,700 |
Commitments and Contingencies Activity in Recorded Environmental Liabilities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2017 |
|
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 34,919 | |
Expenditures | (303) | |
Accretion of discount | 183 | |
Foreign currency translation adjustments and other | 640 | |
Balance at end of period | $ 34,919 | $ 35,439 |
Less amounts reported in Accrued expenses | 2,345 | |
Amounts reported in Other noncurrent liabilities | $ 33,094 |
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Environmental remediation liabilities - discounted | $ 24.2 | $ 22.8 |
Accrual for environmental loss contingencies - weighted-average discount rate | 3.60% | |
Environmental remediation liabilities - undiscounted | $ 62.1 | 61.1 |
Potential revision on future environmental remediation costs before tax | 17.0 | |
Tax indemnification liability | $ 39.5 | $ 38.2 |
Segment Information - Additional Information (Details) |
3 Months Ended |
---|---|
Mar. 31, 2017
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information Summarized Financial Information by Reportable Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | $ 722,063 | $ 657,211 | ||||||||||||||||
Adjusted EBITDA | (211,376) | (192,033) | ||||||||||||||||
Net income attributable to Albemarle Corporation | (51,213) | (228,186) | ||||||||||||||||
Depreciation and amortization | 45,070 | 60,552 | ||||||||||||||||
Gain on acquisition | (7,433) | 0 | ||||||||||||||||
(Gain) loss on sales of businesses, net | 0 | (121,324) | ||||||||||||||||
Acquisition and integration related costs | 0 | 18,558 | ||||||||||||||||
Interest and financing expenses | 68,513 | 15,114 | ||||||||||||||||
Income tax expense | 11,971 | 25,485 | ||||||||||||||||
Income from discontinued operations (net of tax) | 0 | (17,312) | ||||||||||||||||
All Other | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | 32,419 | 72,089 | ||||||||||||||||
Adjusted EBITDA | (5,156) | (8,464) | ||||||||||||||||
Reportable Segments | Lithium and Advanced Materials | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | 284,375 | 216,173 | ||||||||||||||||
Adjusted EBITDA | (120,022) | (86,474) | ||||||||||||||||
Reportable Segments | Bromine Specialties | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | 219,191 | 196,553 | ||||||||||||||||
Adjusted EBITDA | (68,488) | (61,608) | ||||||||||||||||
Reportable Segments | Refining Solutions | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | 185,412 | 170,579 | ||||||||||||||||
Adjusted EBITDA | (49,579) | (55,074) | ||||||||||||||||
Corporate | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | 666 | 1,817 | ||||||||||||||||
Adjusted EBITDA | 31,869 | 19,587 | ||||||||||||||||
Continuing Operations | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Adjusted EBITDA | 211,376 | 192,033 | ||||||||||||||||
Net income attributable to Albemarle Corporation | 51,213 | 228,186 | ||||||||||||||||
Depreciation and amortization | 45,070 | 43,609 | ||||||||||||||||
Utilization of inventory markup | [1] | 10,606 | ||||||||||||||||
Restructuring and other, net | [2] | 12,905 | ||||||||||||||||
Gain on acquisition | [3] | (7,433) | ||||||||||||||||
(Gain) loss on sales of businesses, net | [4] | (121,324) | ||||||||||||||||
Acquisition and integration related costs | [5] | 14,281 | 18,558 | |||||||||||||||
Interest and financing expenses | 68,513 | [6] | 15,114 | |||||||||||||||
Income tax expense | 11,971 | 25,485 | ||||||||||||||||
Income from discontinued operations (net of tax) | (17,312) | |||||||||||||||||
Non-operating pension and OPEB items | (1,063) | (283) | ||||||||||||||||
Other | [7] | 5,313 | ||||||||||||||||
Continuing Operations | All Other | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Adjusted EBITDA | 5,156 | 8,464 | ||||||||||||||||
Net income attributable to Albemarle Corporation | 3,246 | 130,709 | ||||||||||||||||
Depreciation and amortization | 1,910 | 612 | ||||||||||||||||
Utilization of inventory markup | [1] | 0 | ||||||||||||||||
Restructuring and other, net | [2] | 0 | ||||||||||||||||
Gain on acquisition | [3] | 0 | ||||||||||||||||
(Gain) loss on sales of businesses, net | [4] | (122,857) | ||||||||||||||||
Acquisition and integration related costs | [5] | 0 | 0 | |||||||||||||||
Interest and financing expenses | 0 | [6] | 0 | |||||||||||||||
Income tax expense | 0 | 0 | ||||||||||||||||
Income from discontinued operations (net of tax) | 0 | |||||||||||||||||
Non-operating pension and OPEB items | 0 | 0 | ||||||||||||||||
Other | [7] | 0 | ||||||||||||||||
Continuing Operations | Reportable Segments | Lithium and Advanced Materials | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Adjusted EBITDA | 120,022 | 86,474 | ||||||||||||||||
Net income attributable to Albemarle Corporation | 94,106 | 63,327 | ||||||||||||||||
Depreciation and amortization | 22,743 | 23,147 | ||||||||||||||||
Utilization of inventory markup | [1] | 10,606 | ||||||||||||||||
Restructuring and other, net | [2] | 0 | ||||||||||||||||
Gain on acquisition | [3] | (7,433) | ||||||||||||||||
(Gain) loss on sales of businesses, net | [4] | 0 | ||||||||||||||||
Acquisition and integration related costs | [5] | 0 | 0 | |||||||||||||||
Interest and financing expenses | 0 | [6] | 0 | |||||||||||||||
Income tax expense | 0 | 0 | ||||||||||||||||
Income from discontinued operations (net of tax) | 0 | |||||||||||||||||
Non-operating pension and OPEB items | 0 | 0 | ||||||||||||||||
Other | [7] | 0 | ||||||||||||||||
Continuing Operations | Reportable Segments | Bromine Specialties | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Adjusted EBITDA | 68,488 | 61,608 | ||||||||||||||||
Net income attributable to Albemarle Corporation | 58,694 | 51,853 | ||||||||||||||||
Depreciation and amortization | 9,794 | 9,755 | ||||||||||||||||
Utilization of inventory markup | [1] | 0 | ||||||||||||||||
Restructuring and other, net | [2] | 0 | ||||||||||||||||
Gain on acquisition | [3] | 0 | ||||||||||||||||
(Gain) loss on sales of businesses, net | [4] | 0 | ||||||||||||||||
Acquisition and integration related costs | [5] | 0 | 0 | |||||||||||||||
Interest and financing expenses | 0 | [6] | 0 | |||||||||||||||
Income tax expense | 0 | 0 | ||||||||||||||||
Income from discontinued operations (net of tax) | 0 | |||||||||||||||||
Non-operating pension and OPEB items | 0 | 0 | ||||||||||||||||
Other | [7] | 0 | ||||||||||||||||
Continuing Operations | Reportable Segments | Refining Solutions | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Adjusted EBITDA | 49,579 | 55,074 | ||||||||||||||||
Net income attributable to Albemarle Corporation | 40,474 | 46,314 | ||||||||||||||||
Depreciation and amortization | 9,105 | 8,760 | ||||||||||||||||
Utilization of inventory markup | [1] | 0 | ||||||||||||||||
Restructuring and other, net | [2] | 0 | ||||||||||||||||
Gain on acquisition | [3] | 0 | ||||||||||||||||
(Gain) loss on sales of businesses, net | [4] | 0 | ||||||||||||||||
Acquisition and integration related costs | [5] | 0 | 0 | |||||||||||||||
Interest and financing expenses | 0 | [6] | 0 | |||||||||||||||
Income tax expense | 0 | 0 | ||||||||||||||||
Income from discontinued operations (net of tax) | 0 | |||||||||||||||||
Non-operating pension and OPEB items | 0 | 0 | ||||||||||||||||
Other | [7] | 0 | ||||||||||||||||
Continuing Operations | Reportable Segments | Reportable Segments Total | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Adjusted EBITDA | 238,089 | 203,156 | ||||||||||||||||
Net income attributable to Albemarle Corporation | 193,274 | 161,494 | ||||||||||||||||
Depreciation and amortization | 41,642 | 41,662 | ||||||||||||||||
Utilization of inventory markup | [1] | 10,606 | ||||||||||||||||
Restructuring and other, net | [2] | 0 | ||||||||||||||||
Gain on acquisition | [3] | (7,433) | ||||||||||||||||
(Gain) loss on sales of businesses, net | [4] | 0 | ||||||||||||||||
Acquisition and integration related costs | [5] | 0 | 0 | |||||||||||||||
Interest and financing expenses | 0 | [6] | 0 | |||||||||||||||
Income tax expense | 0 | 0 | ||||||||||||||||
Income from discontinued operations (net of tax) | 0 | |||||||||||||||||
Non-operating pension and OPEB items | 0 | 0 | ||||||||||||||||
Other | [7] | 0 | ||||||||||||||||
Continuing Operations | Corporate | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Adjusted EBITDA | (31,869) | (19,587) | ||||||||||||||||
Net income attributable to Albemarle Corporation | (145,307) | (64,017) | ||||||||||||||||
Depreciation and amortization | 1,518 | 1,335 | ||||||||||||||||
Utilization of inventory markup | [1] | 0 | ||||||||||||||||
Restructuring and other, net | [2] | 12,905 | ||||||||||||||||
Gain on acquisition | [3] | 0 | ||||||||||||||||
(Gain) loss on sales of businesses, net | [4] | 1,533 | ||||||||||||||||
Acquisition and integration related costs | [5] | 14,281 | 18,558 | |||||||||||||||
Interest and financing expenses | 68,513 | [6] | 15,114 | |||||||||||||||
Income tax expense | 11,971 | 25,485 | ||||||||||||||||
Income from discontinued operations (net of tax) | (17,312) | |||||||||||||||||
Non-operating pension and OPEB items | (1,063) | $ (283) | ||||||||||||||||
Other | [7] | $ 5,313 | ||||||||||||||||
|
Segment Information Summarized Financial Information by Reportable Segments (Footnote) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Feb. 01, 2017 |
|
Segment Reporting Information [Line Items] | |||
Loss on extinguishment of debt | $ 52,801 | $ 0 | |
Jiangxi Jiangli New Materials Science and Technology Co. Ltd. | |||
Segment Reporting Information [Line Items] | |||
Inventory markup | 23,000 | ||
Sales de Magnesio Ltda. | |||
Segment Reporting Information [Line Items] | |||
Percentage of Equity Interests Acquired | 50.00% | ||
Cost of goods sold | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other, net | 2,900 | ||
Cost of goods sold | Jiangxi Jiangli New Materials Science and Technology Co. Ltd. | |||
Segment Reporting Information [Line Items] | |||
Utilization of inventory markup | 10,600 | ||
Selling, general and administrative expenses | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other, net | 4,200 | ||
Research and development expenses | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other, net | 5,800 | ||
Other (expenses) income, net | |||
Segment Reporting Information [Line Items] | |||
Asset retirement obligation charges | 3,200 | ||
Loss on sale of properties | $ 2,100 |
Pension Plans and Other Postretirement Benefits Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total net pension benefits (credit) cost | $ (26) | $ 798 | [1] | ||
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 1,003 | 1,048 | |||
Interest cost | 8,288 | 9,366 | |||
Expected return on assets | (9,908) | (10,173) | |||
Actuarial gain | 0 | (50) | |||
Amortization of prior service benefit | 27 | 28 | |||
Total net pension benefits (credit) cost | (590) | 219 | |||
Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 31 | 29 | |||
Interest cost | 585 | 621 | |||
Expected return on assets | (28) | (47) | |||
Amortization of prior service benefit | (24) | (24) | |||
Total net pension benefits (credit) cost | $ 564 | $ 579 | |||
|
Pension Plans and Other Postretirement Benefits Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Footnote) (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Compensation and Retirement Disclosure [Abstract] | |
Net pension and postretirement benefits cost | $ 0.6 |
Pension Plans and Other Postretirement Benefits Pension and Postretirement Plan Contributions (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Other postretirement benefits payments | $ 0.5 | $ 0.8 |
Chemetall Surface Treatment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension contributions | 1.0 | |
Continuing Operations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension contributions | $ 2.4 | $ 2.4 |
Pension Plans and Other Postretirement Benefits Multiemployer Plan (Details) € in Millions, $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017
EUR (€)
|
Mar. 31, 2017
USD ($)
|
Mar. 31, 2016
EUR (€)
|
Mar. 31, 2016
USD ($)
|
|
Chemetall Surface Treatment | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer plan, period contributions | € 0.2 | $ 0.2 | ||
Continuing Operations | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer plan, period contributions | € 0.2 | $ 0.2 | € 0.2 | $ 0.3 |
Fair Value of Financial Instruments Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Total long-term debt, excluding debt issuance costs | $ 1,721,455 | $ 2,381,370 |
Total long-term debt, fair value, excluding debt issuance costs | $ 1,807,576 | $ 2,472,813 |
Fair Value of Financial Instruments Additional Information (Details) - Forward contracts - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Derivative, notional amount | $ 285.9 | $ 251.6 | |
Other accounts receivable | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts, assets | 0.1 | ||
Accrued expenses | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value foreign currency forward contracts, liabilities | $ 0.2 | ||
Other (expenses) income, net | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Recognized gains of foreign currency forward contracts | 4.5 | $ 5.8 | |
Other, net | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Change in the fair value of foreign currency forward contracts | 4.5 | 5.8 | |
Cash receipts | $ 4.3 | $ 5.1 |
Fair Value Measurement Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis (Details) - USD ($) |
Mar. 31, 2017 |
Dec. 31, 2016 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Transfers between levels 1 and 2 | $ 0 | ||||||||||
Investments under executive deferred compensation plan | [1] | 22,417,000 | $ 22,037,000 | ||||||||
Private equity securities | [2] | 36,000 | 35,000 | ||||||||
Private equity securities measured at net asset value | [2],[3] | 5,492,000 | 5,498,000 | ||||||||
Foreign currency forward contracts, assets | [4] | 7,000 | |||||||||
Obligations under executive deferred compensation plan | [1] | 22,417,000 | 22,037,000 | ||||||||
Foreign currency forward contracts, liabilities | [4] | 182,000 | |||||||||
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 | [1] | 22,417,000 | 22,037,000 | ||||||||
Private equity securities | [2] | 36,000 | 35,000 | ||||||||
Private equity securities measured at net asset value | [2],[3] | 0 | 0 | ||||||||
Foreign currency forward contracts, assets | [4] | 0 | |||||||||
Obligations under executive deferred compensation plan | [1] | 22,417,000 | 22,037,000 | ||||||||
Foreign currency forward contracts, liabilities | [4] | 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 | [1] | 0 | 0 | ||||||||
Private equity securities | [2] | 0 | 0 | ||||||||
Private equity securities measured at net asset value | [2],[3] | 0 | 0 | ||||||||
Foreign currency forward contracts, assets | [4] | 7,000 | |||||||||
Obligations under executive deferred compensation plan | [1] | 0 | 0 | ||||||||
Foreign currency forward contracts, liabilities | [4] | 182,000 | |||||||||
Unobservable Inputs (Level 3) | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Investments under executive deferred compensation plan | [1] | 0 | 0 | ||||||||
Private equity securities | [2] | 0 | 0 | ||||||||
Private equity securities measured at net asset value | [2],[3] | 0 | 0 | ||||||||
Foreign currency forward contracts, assets | [4] | 0 | |||||||||
Obligations under executive deferred compensation plan | [1] | $ 0 | 0 | ||||||||
Foreign currency forward contracts, liabilities | [4] | $ 0 | |||||||||
|
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 | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Beginning Balance | $ 3,942,604 | $ 3,401,313 | |||||
Other comprehensive income (loss), before reclassifications | 65,370 | 89,382 | |||||
Amounts reclassified from accumulated other comprehensive loss | 522 | 526 | |||||
Total other comprehensive income, net of tax | 65,892 | 89,908 | |||||
Other comprehensive income attributable to noncontrolling interests | (461) | (283) | |||||
Ending Balance | 3,783,972 | 3,694,871 | |||||
Foreign Currency Translation | |||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Beginning Balance | (484,121) | (463,914) | |||||
Other comprehensive income (loss), before reclassifications | 79,055 | 98,906 | |||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |||||
Total other comprehensive income, net of tax | 79,055 | 98,906 | |||||
Other comprehensive income attributable to noncontrolling interests | (461) | (283) | |||||
Ending Balance | (405,527) | (365,291) | |||||
Pension and Postretirement Benefits | |||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Beginning Balance | 76 | (758) | |||||
Other comprehensive income (loss), before reclassifications | 0 | 0 | |||||
Amounts reclassified from accumulated other comprehensive loss | [1] | (7) | 1 | ||||
Total other comprehensive income, net of tax | (7) | 1 | |||||
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | |||||
Ending Balance | 69 | (757) | |||||
Net Investment Hedge | |||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Beginning Balance | 88,378 | 62,245 | |||||
Other comprehensive income (loss), before reclassifications | (13,685) | (9,524) | |||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |||||
Total other comprehensive income, net of tax | (13,685) | (9,524) | |||||
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | |||||
Ending Balance | 74,693 | 52,721 | |||||
Interest Rate Swap | |||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Beginning Balance | (16,745) | (18,861) | |||||
Other comprehensive income (loss), before reclassifications | 0 | 0 | |||||
Amounts reclassified from accumulated other comprehensive loss | [2] | 529 | 525 | ||||
Total other comprehensive income, net of tax | 529 | 525 | |||||
Other comprehensive income attributable to noncontrolling interests | 0 | 0 | |||||
Ending Balance | (16,216) | (18,336) | |||||
Accumulated Other Comprehensive (Loss) Income | |||||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Beginning Balance | (412,412) | (421,288) | |||||
Total other comprehensive income, net of tax | 65,431 | 89,625 | |||||
Ending Balance | $ (346,981) | $ (331,663) | |||||
|
Accumulated Other Comprehensive (Loss) Income Amount of Income Tax (Expense) Benefit Allocated to Component of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Equity [Abstract] | ||
Foreign Currency Translation, Other comprehensive income (loss), before tax | $ 80,141 | $ 99,277 |
Foreign Currency Translation, Income tax (expense) benefit | (1,086) | (371) |
Foreign Currency Translation, Other comprehensive income (loss), net of tax | 79,055 | 98,906 |
Pension and Postretirement Benefits, Other comprehensive income (loss), before tax | (6) | 4 |
Pension and Postretirement Benefits, Income tax (expense) benefit | (1) | (3) |
Pension and Postretirement Benefits, Other comprehensive income (loss), net of tax | (7) | 1 |
Net investment hedge, Other comprehensive income (loss), before tax | (21,580) | (15,121) |
Net investment hedge, Income tax (expense) benefit | 7,895 | 5,597 |
Net investment hedge, Other comprehensive income (loss), net of tax | (13,685) | (9,524) |
Interest rate swap, Other comprehensive income (loss), before tax | 834 | 834 |
Interest rate swap, Income tax benefit (expense) benefit | (305) | (309) |
Interest rate swap, Other comprehensive income (loss), net of tax | $ 529 | $ 525 |
Related Party Transactions (Details) - Unconsolidated Affiliates - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Related Party Transaction [Line Items] | ||
Sales to unconsolidated affiliates | $ 7,189 | $ 6,174 |
Purchases from unconsolidated affiliates | $ 40,570 | $ 35,621 |
Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
Accounting Changes and Error Corrections [Abstract] | |
Excess tax benefits | $ 4.1 |
=>W;
MHKM\K7,U#@JXH]29C^/+J>^F_U)K^_3V=>W#JG@=RYDEFXL$;R3X4;&5"A^O
MDB+5?S6!J@F
M0,I A#)^3YQT3AF R_,;^U.L'6NY< 1OX2E6]S>J"D@IKWTC^;X3-,]>PI
MF8K_"E>0&!Z48([22!=74O;.&S6QH!3%7\==Z+@/X\U^/\'6 >D$2&? (>9A
M8Z*H_)%[7F36#,2.O>]X>.+-,<7>E,$96Q'O4+Q#[[78'&XS=@U$4\QIC$F7
M,7,$0_8Y1;J6XI3^!T_7X=M5A=L(W[Y3>%@GV*T2["+![AW!W8<25V+ND@])
MV**G"FP3I\F1TO0Z3O+".P_L?1K?Y%_X..W?N&V$=N1B/+YL[']MC >4DMS@
M"+7XP69#0NW#\1;/=ARST?"FFWX0F[]Q\1=02P,$% @ C8VC2C9E9-^T
M 0 T@, !D !X;"]W;W)K :5]*1 NN4RP7SAQ7(J0+)!H # <9.B^-8@!P(
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M#,Z?73?_ U!+ P04 " "-C:-* 47I>LD" )"@ &0 'AL+W=O M19ER1
M.-,DB0,&$Y1H,X/K9A9.V ]H_T%R@S"T X'/$8:[LPIG82K&PKBXB/$$PPE*
MM*>!,O7$.@2T#R&=+PS21L1PAC #Z'W!,G<;Y)U26II\X9T1]V#.3)=&(7?:/G+SW/0'A[ZA53T<
MBH++R6SU%U!+ P04 " "-C:-*8*0*;$D# "H#@ &0 'AL+W=O<4
MR5J*8_(!GJS#TU6%:82G_RC
]%>.+DQ+$W97#&5L0[3-ZA]U8DR3%CMR T8\X3
MAJ\Q"X*A^A*";X4X\W=TODW?;V:XC_3]FLX/VP+IID :!=+_EO@>P_G]/T'8
MJJ<:;!.GR9'2#%V,PDQ
M2E0NK:3LG4<]J814M'@==VG2/HPWA\-$6R?PB"KZ[S]@M"DV8\XCA"\QV1K"@/H?@:R'.
M_#\Z7Z?O5C/<)?IN&?UX7!?8KPKLD\#^GQ(?WI6XAGD?A"UZJL$V:9H<*;$W
M:9(7WGE@'WEZD[_P<=J_"MM(X\@5?7C9U/\:T4-(97,71J@-'VPV%-0^'A_"
MV8YC-AH>N^D'L?D;%W\ 4$L#!!0 ( (V-HTHYJH7=Q0$ #<$ 9
M>&PO=V]R:W-H965T
=J*&[^!^=&?C+3:K
ME%)#:R6VQ$"5T;O-\;0+^ CX*6&PBS,)E5P07X+Q4&8T"0F!@L(%!>&W*]R#
M4D'(I_%[TJ1SR$!>&=!_:&QS=YAX_3_B!L+5M'3L;CR\;^5\9XP%0V%SA"#7ZPV5!0
M^7#\AF<[CMEH>---/XC-WSC_!U!+ P04 " "-C:-*@W9_4[,! #2 P
M&0 'AL+W=O
MYT9)Y_''B?KGF(;8'K^IKVSQNIAG)OE2Y+^SC=K/_8GO;?B6'7+U)$Y?N"LH
M]CU7_3=^Y+F&FTQTC+7(I?WVU@>I1.%4="H%>VV>66F?)Z?_1L,)Q!'(F0#1
MNP3J"'0L(7*$:"PA=H1X+"%QA.2"$#3-LMV_9XHM9K4X>75S@"IFSBG<)GI_
MUV;1;J?]36^ U*O'!04Z"XY&R&'N&@SI8*(N9HEAXB[F'L,D7*R9HQ<3R:3N+,,$%*"I K4#4$H#DHM2'!I-:3&DQX449?00-T[90
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MO;YEGB
L.F,1P2TYLP3X(N)M.'LX\^P%CB.
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M+D'.*^"*6+!0=FO6#?RC6ML76[4
M'=R>>;)/
<)M7^ O>,5_ DFLX>Y&M0-FNUB@YEF K+5(X%&8M.N Y ;B
MRGJ=W=/H05B W>8[V\/:_/" '4FYU__9>I[WG?.F1>YX2CXCH9<^C3P_-KA
MY(/0T'>=X#[!V+,\;1/8%J75:*;&[F>N
6X&P=.[KV]..&OH74Z.)M#2B3TWY4
MP&)?WF?AV\2U"EEJ-933Z'<\[+(\U%0 -3U8V+F83[M4!KNM%\XOVSK;ACN#
M M& $>YEA^SC@G?K>FWB7<7CH]8+!)^[]+!Q[AZ6>?8Y7?+ZJ$\7<3[/MACO
M!.OZ"?1@