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 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Page Number(s) | ||||||||
8-26 | ||||||||
27-46 | ||||||||
EXHIBITS |
Item 1. | Financial Statements (Unaudited). |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Research and development expenses | |||||||||||||||||||||||
Operating profit | |||||||||||||||||||||||
Interest and financing expenses | ( | ( | ( | ( | |||||||||||||||||||
Other expenses, net | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes and equity in net income of unconsolidated investments | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Income before equity in net income of unconsolidated investments | |||||||||||||||||||||||
Equity in net income of unconsolidated investments (net of tax) | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Net income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Net income attributable to Albemarle Corporation | $ | $ | $ | $ | |||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average common shares outstanding – basic | |||||||||||||||||||||||
Weighted-average common shares outstanding – diluted |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation | ( | ( | |||||||||||||||||||||
Pension and postretirement benefits | ( | ||||||||||||||||||||||
Net investment hedge | ( | ( | |||||||||||||||||||||
Cash flow hedge | ( | ||||||||||||||||||||||
Interest rate swap | |||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||
Comprehensive income | |||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive income attributable to Albemarle Corporation | $ | $ | $ | $ |
September 30, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade accounts receivable, less allowance for doubtful accounts (2020 – $ | |||||||||||
Other accounts receivable | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, at cost | |||||||||||
Less accumulated depreciation and amortization | |||||||||||
Net property, plant and equipment | |||||||||||
Investments | |||||||||||
Other assets | |||||||||||
Goodwill | |||||||||||
Other intangibles, net of amortization | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities And Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Current portion of long-term debt | |||||||||||
Dividends payable | |||||||||||
Income taxes payable | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Postretirement benefits | |||||||||||
Pension benefits | |||||||||||
Other noncurrent liabilities | |||||||||||
Deferred income taxes | |||||||||||
Commitments and contingencies (Note 9) | |||||||||||
Equity: | |||||||||||
Albemarle Corporation shareholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total Albemarle Corporation shareholders’ equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
(In Thousands, Except Share Data) | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total Albemarle Shareholders’ Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amounts | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | |||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for withholding taxes associated with common stock issuances | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $ | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | |||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for withholding taxes associated with common stock issuances | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $ | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for withholding taxes associated with common stock issuances | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $ | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Increase in ownership interest of noncontrolling interest | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for withholding taxes associated with common stock issuances | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | ( | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash and cash equivalents at beginning of year | $ | $ | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | |||||||||||
Adjustments to reconcile net income to cash flows from operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Gain on sale of property | ( | ||||||||||
Stock-based compensation and other | |||||||||||
Equity in net income of unconsolidated investments (net of tax) | ( | ( | |||||||||
Dividends received from unconsolidated investments and nonmarketable securities | |||||||||||
Pension and postretirement (benefit) expense | ( | ||||||||||
Pension and postretirement contributions | ( | ( | |||||||||
Unrealized gain on investments in marketable securities | ( | ( | |||||||||
Deferred income taxes | |||||||||||
Working capital changes | ( | ( | |||||||||
Other, net | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions, net of cash acquired | ( | ||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from sale of property and equipment | |||||||||||
Sales of marketable securities, net | |||||||||||
Investments in equity and other corporate investments | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Repayments of borrowings from credit agreements | ( | ||||||||||
Proceeds from borrowings of credit agreements | |||||||||||
Other borrowings, net | |||||||||||
Dividends paid to shareholders | ( | ( | |||||||||
Dividends paid to noncontrolling interests | ( | ( | |||||||||
Proceeds from exercise of stock options | |||||||||||
Withholding taxes paid on stock-based compensation award distributions | ( | ( | |||||||||
Debt financing costs | ( | ||||||||||
Other | ( | ||||||||||
Net cash provided by financing activities | |||||||||||
Net effect of foreign exchange on cash and cash equivalents | ( | ( | |||||||||
Increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at end of period | $ | $ |
Total purchase price: | |||||
Cash paid | $ | ||||
Fair value of | |||||
Purchase agreement completion adjustment and other adjustments | |||||
Total purchase price | $ | ||||
Net assets acquired: | |||||
Inventories | $ | ||||
Other current assets | |||||
Property, plant and equipment: | |||||
Land improvements | |||||
Buildings and improvements | |||||
Machinery and equipment | |||||
Mineral rights and reserves | |||||
Construction in progress | |||||
Current liabilities | ( | ||||
Long-term debt(a) | ( | ||||
Other noncurrent liabilities | ( | ||||
Total identifiable net assets | |||||
Goodwill | |||||
Total net assets acquired | $ |
Lithium | Bromine Specialties | Catalysts | All Other | Total | |||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Acquisitions(a) | ( | ( | |||||||||||||||||||||||||||
Foreign currency translation adjustments and other | |||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | $ |
Customer Lists and Relationships | Trade Names and Trademarks(a) | Patents and Technology | Other | Total | |||||||||||||||||||||||||
Gross Asset Value | |||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Foreign currency translation adjustments and other | ( | ||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Accumulated Amortization | |||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Amortization | ( | ( | ( | ( | |||||||||||||||||||||||||
Foreign currency translation adjustments and other | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Balance at September 30, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Net Book Value at December 31, 2019 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Net Book Value at September 30, 2020 | $ | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Basic earnings per share | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income attributable to Albemarle Corporation | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average common shares for basic earnings per share | |||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income attributable to Albemarle Corporation | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average common shares for basic earnings per share | |||||||||||||||||||||||
Incremental shares under stock compensation plans | |||||||||||||||||||||||
Weighted-average common shares for diluted earnings per share | |||||||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ |
September 30, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
Finished goods | $ | $ | |||||||||
Raw materials and work in process(a) | |||||||||||
Stores, supplies and other | |||||||||||
Total | $ | $ |
September 30, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
$ | $ | ||||||||||
Floating rate notes, net of unamortized debt issuance costs of $ | |||||||||||
Credit facilities | |||||||||||
Commercial paper notes | |||||||||||
Variable-rate foreign bank loans | |||||||||||
Finance lease obligations | |||||||||||
Total long-term debt | |||||||||||
Less amounts due within one year | |||||||||||
Long-term debt, less current portion | $ | $ |
Beginning balance at December 31, 2019 | $ | ||||
Expenditures | ( | ||||
Accretion of discount | |||||
Additions and changes in estimates | |||||
Foreign currency translation adjustments and other | |||||
Ending balance at September 30, 2020 | |||||
Less amounts reported in Accrued expenses | |||||
Amounts reported in Other noncurrent liabilities | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of right of use assets | |||||||||||||||||||||||
Interest on lease liabilities | |||||||||||||||||||||||
Total finance lease cost | |||||||||||||||||||||||
Short-term lease cost | |||||||||||||||||||||||
Variable lease cost | |||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Operating cash flows from finance leases | |||||||||||
Financing cash flows from finance leases | |||||||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||
Operating leases | |||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
Operating leases: | |||||||||||
Other assets | $ | $ | |||||||||
Accrued expenses | |||||||||||
Other noncurrent liabilities | |||||||||||
Total operating lease liabilities | |||||||||||
Finance leases: | |||||||||||
Net property, plant and equipment | |||||||||||
Current portion of long-term debt(a) | |||||||||||
Long-term debt | |||||||||||
Total finance lease liabilities | |||||||||||
Weighted average remaining lease term (in years): | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted average discount rate (%): | |||||||||||
Operating leases | % | % | |||||||||
Finance leases | % | % |
Operating Leases | Finance Leases | ||||||||||
Remainder of 2020 | $ | $ | |||||||||
2021 | |||||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
Thereafter | |||||||||||
Total lease payments | |||||||||||
Less imputed interest | |||||||||||
Total | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||
Lithium | $ | $ | $ | $ | |||||||||||||||||||
Bromine Specialties | |||||||||||||||||||||||
Catalysts | |||||||||||||||||||||||
All Other | |||||||||||||||||||||||
Total net sales | $ | $ | $ | $ | |||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||
Lithium | $ | $ | $ | $ | |||||||||||||||||||
Bromine Specialties | |||||||||||||||||||||||
Catalysts | |||||||||||||||||||||||
All Other | |||||||||||||||||||||||
Corporate | ( | ( | ( | ( | |||||||||||||||||||
Total adjusted EBITDA | $ | $ | $ | $ |
Lithium | Bromine Specialties | Catalysts | Reportable Segments Total | All Other | Corporate | Consolidated Total | |||||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||
Restructuring and other(a) | |||||||||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(b) | |||||||||||||||||||||||||||||||||||||||||
Interest and financing expenses | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other(c) | |||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Three months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(b) | |||||||||||||||||||||||||||||||||||||||||
Interest and financing expenses | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other(d) | |||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||
Restructuring and other(a) | |||||||||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(b) | |||||||||||||||||||||||||||||||||||||||||
Interest and financing expenses | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other(c) | |||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||
Restructuring and other(a) | |||||||||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(b) | |||||||||||||||||||||||||||||||||||||||||
Gain on sale of property(e) | ( | ( | |||||||||||||||||||||||||||||||||||||||
Interest and financing expenses | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other(d) | |||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Pension Benefits Cost (Credit): | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of prior service benefit | ( | ||||||||||||||||||||||
Total net pension benefits (credit) cost | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Postretirement Benefits Cost: | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Total net postretirement benefits cost | $ | $ | $ | $ | |||||||||||||||||||
Total net pension and postretirement benefits (credit) cost | $ | ( | $ | $ | ( | $ |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Recorded Amount | Fair Value | Recorded Amount | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Long-term debt | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||
Designated as hedging instruments(a) | $ | $ | $ | $ | |||||||||||||||||||
Not Designated as hedging instruments(b) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Designated as hedging instruments | |||||||||||||||||||||||
Gains (losses) recognized in Other comprehensive income | $ | $ | $ | ( | $ | ||||||||||||||||||
Not designated as hedging instruments | |||||||||||||||||||||||
Gains (losses) recognized in Other expenses, net(a) | $ | $ | ( | $ | ( | $ | ( |
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 |
September 30, 2020 | Quoted Prices in Active Markets for Identical Items (Level 1) | Quoted Prices in Active Markets for Similar Items (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investments under executive deferred compensation plan(a) | $ | $ | $ | $ | |||||||||||||||||||
Private equity securities(b) | $ | $ | $ | $ | |||||||||||||||||||
Private equity securities measured at net asset value(b)(c) | $ | $ | — | $ | — | $ | — | ||||||||||||||||
Foreign currency forward contracts(d) | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Obligations under executive deferred compensation plan(a) | $ | $ | $ | $ | |||||||||||||||||||
Foreign currency forward contracts(d) | $ | $ | $ | $ |
December 31, 2019 | Quoted Prices in Active Markets for Identical Items (Level 1) | Quoted Prices in Active Markets for Similar Items (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investments under executive deferred compensation plan(a) | $ | $ | $ | $ | |||||||||||||||||||
Private equity securities(b) | $ | $ | $ | $ | |||||||||||||||||||
Private equity securities measured at net asset value(b)(c) | $ | $ | — | $ | — | $ | — | ||||||||||||||||
Foreign currency forward contracts(d) | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Obligations under executive deferred compensation plan(a) | $ | $ | $ | $ | |||||||||||||||||||
Foreign currency forward contracts(d) | $ | $ | $ | $ |
Foreign Currency Translation | Pension and Post-Retirement Benefits(a) | Net Investment Hedge | Cash Flow Hedge(b) | Interest Rate Swap(c) | Total | ||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive income attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Three months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | ( | ( | |||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other comprehensive loss attributable to noncontrolling interests | |||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | ( | $ | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other comprehensive income attributable to noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | ( | ( | |||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | |||||||||||||||||||||||||||||||||
Other comprehensive loss attributable to noncontrolling interests | |||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( |
Foreign Currency Translation | Pension and Postretirement Benefits | Net Investment Hedge | Cash Flow Hedge | Interest Rate Swap | |||||||||||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||||||||||||||
Other comprehensive income (loss), before tax | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Income tax (expense) benefit | ( | ( | |||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Three months ended September 30, 2019 | |||||||||||||||||||||||||||||
Other comprehensive (loss) income, before tax | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||
Income tax expense | ( | ( | ( | ||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||
Other comprehensive income (loss), before tax | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
Income tax (expense) benefit | ( | ( | ( | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||
Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||
Other comprehensive (loss) income, before tax | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||
Income tax expense | ( | ( | ( | ( | |||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | $ | ( | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Sales to unconsolidated affiliates | $ | $ | $ | $ | |||||||||||||||||||
Purchases from unconsolidated affiliates(a) | $ | $ | $ | $ |
September 30, 2020 | December 31, 2019 | ||||||||||
Receivables from unconsolidated affiliates | $ | $ | |||||||||
Payables to unconsolidated affiliates | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Supplemental non-cash disclosure related to investing activities: | |||||||||||
Capital expenditures included in Accounts payable | $ | $ |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 746,868 | $ | 879,747 | $ | (132,879) | (15) | % | |||||||||||||||
▪$68.5 million of unfavorable pricing from each of our businesses ▪$68.3 million of lower sales volume in each of our reportable segments, partially offset by FCS ▪$3.7 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Gross profit | $ | 254,056 | $ | 309,867 | $ | (55,811) | (18) | % | |||||||||||||||
Gross profit margin | 34.0 | % | 35.2 | % | |||||||||||||||||||
▪Unfavorable pricing from each of our businesses and lower sales volume in each of our reportable segments, partially offset by FCS ▪Favorable currency exchange impacts resulting from the weaker U.S. Dollar against various currencies ▪$7.0 million out-of-period non-cash expense recorded in the third quarter of 2019 in Cost of goods sold due to an adjustment of lithium carbonate inventory values in the second quarter of 2019 |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Selling, general and administrative expenses | $ | 96,092 | $ | 108,135 | $ | (12,043) | (11) | % | |||||||||||||||
Percentage of Net sales | 12.9 | % | 12.3 | % | |||||||||||||||||||
▪Productivity improvements and a reduction in professional fees and other administrative costs, including those resulting from our previously announced cost savings initiative. ▪$3.8 million of a net expense primarily relating to the increase of environmental reserves at at non-operating businesses we have previously divested ▪$2.3 million increase in severance expense as part of business reorganization plans ▪$1.8 million increase in acquisition and integration related costs for various significant projects |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Research and development expenses | $ | 13,532 | $ | 15,585 | $ | (2,053) | (13) | % | |||||||||||||||
Percentage of Net sales | 1.8 | % | 1.8 | % | |||||||||||||||||||
▪Decreased research and development spend primarily in Catalyts |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Interest and financing expenses | $ | (19,227) | $ | (11,108) | $ | (8,119) | 73 | % | |||||||||||||||
▪Increased debt balance in 2020, primarily related to the funding of the Wodgina Project acquisition and credit facility draws in 2020 ▪The increase was partially offset by higher capitalized interest from continued capital expenditures in 2020 |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Other expenses, net | $ | (3,661) | $ | (11,316) | $ | 7,655 | (68) | % | |||||||||||||||
▪$2.4 million increase in non-operating pension and OPEB gains resulting from lower interest expenses and increased estimated return on assets ▪$3.6 million decrease in foreign exchange losses ▪$3.1 million of unrecoverable vendor costs outside the operation of the business related to the construction of the future Kemerton production facility in 2019 |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Income tax expense | $ | 30,653 | $ | 25,341 | $ | 5,312 | 21 | % | |||||||||||||||
Effective income tax rate | 25.2 | % | 15.5 | % | |||||||||||||||||||
▪Change in geographic mix of earnings, 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 ▪2020 includes discrete tax expenses for foreign uncertain tax positions and foreign return to accrual adjustments |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Equity in net income of unconsolidated investments | $ | 26,154 | $ | 33,236 | $ | (7,082) | (21) | % | |||||||||||||||
▪Lower earnings from our Lithium segment joint venture, Windfield Holdings Pty Ltd (“Talison”), primarily driven by lower sales volume, partially offset by foreign currency gains of $5.7 million |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Net income attributable to noncontrolling interests | $ | (18,744) | $ | (16,548) | $ | (2,196) | 13 | % | |||||||||||||||
▪Increase in consolidated income related to our JBC joint venture from higher sales volume |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Net income attributable to Albemarle Corporation | $ | 98,301 | $ | 155,070 | $ | (56,769) | (37) | % | |||||||||||||||
Percentage of Net sales | 13.2 | % | 17.6 | % | |||||||||||||||||||
Basic earnings per share | $ | 0.92 | $ | 1.46 | $ | (0.54) | (37) | % | |||||||||||||||
Diluted earnings per share | $ | 0.92 | $ | 1.46 | $ | (0.54) | (37) | % | |||||||||||||||
▪Decrease primarily due to unfavorable pricing from each of our businesses and lower sales volume in each of our reportable segments, partially offset by FCS ▪Increased interest expense from higher debt balances in 2020 ▪Lower equity in net income of unconsolidated investments from the Talison joint venture ▪Increased effective tax rate ▪Productivity improvements and a reduction in professional fees and other administrative costs, including those resulting from our previously announced cost savings initiative |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Other comprehensive income (loss), net of tax | $ | 32,731 | $ | (86,688) | $ | 119,419 | (138) | % | |||||||||||||||
▪Foreign currency translation | $ | 37,489 | $ | (100,069) | $ | 137,558 | (137) | % | |||||||||||||||
▪2020 included favorable movements in the Euro of approximately $26 million, the Chinese Renminbi of approximately $11 million and a net favorable variance in various other currencies totaling approximately $3 million, partially offset by unfavorable movements in the Brazilian Real of approximately $2 million ▪2019 included unfavorable movements in the Euro of approximately $83 million, the Chinese Renminbi of approximately $8 million, the Brazilian Real of approximately $7 million and a net unfavorable variance in various other currencies totaling approximately $2 million | |||||||||||||||||||||||
▪Cash flow hedge | $ | 6,993 | $ | — | $ | 6,993 | |||||||||||||||||
▪Net investment hedge | $ | (12,408) | $ | 12,745 | $ | (25,153) | (197) | % |
Three Months Ended September 30, | Percentage Change | ||||||||||||||||||||||||||||
2020 | % | 2019 | % | 2020 vs 2019 | |||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||
Lithium | $ | 265,646 | 35.6 | % | $ | 330,386 | 37.6 | % | (20) | % | |||||||||||||||||||
Bromine Specialties | 237,193 | 31.8 | % | 256,267 | 29.1 | % | (7) | % | |||||||||||||||||||||
Catalysts | 197,919 | 26.4 | % | 261,346 | 29.7 | % | (24) | % | |||||||||||||||||||||
All Other | 46,110 | 6.2 | % | 31,748 | 3.6 | % | 45 | % | |||||||||||||||||||||
Total net sales | $ | 746,868 | 100.0 | % | $ | 879,747 | 100.0 | % | (15) | % | |||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||||||
Lithium | $ | 97,789 | 45.3 | % | $ | 127,459 | 50.1 | % | (23) | % | |||||||||||||||||||
Bromine Specialties | 79,448 | 36.8 | % | 88,814 | 34.9 | % | (11) | % | |||||||||||||||||||||
Catalysts | 37,834 | 17.5 | % | 66,944 | 26.3 | % | (43) | % | |||||||||||||||||||||
All Other | 24,985 | 11.5 | % | 10,448 | 4.1 | % | 139 | % | |||||||||||||||||||||
Corporate | (24,001) | (11.1) | % | (39,314) | (15.4) | % | 39 | % | |||||||||||||||||||||
Total adjusted EBITDA | $ | 216,055 | 100.0 | % | $ | 254,351 | 100.0 | % | (15) | % |
Lithium | Bromine Specialties | Catalysts | Reportable Segments Total | All Other | Corporate | Consolidated Total | |||||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | 69,102 | $ | 66,548 | $ | 25,176 | $ | 160,826 | $ | 22,798 | $ | (85,323) | $ | 98,301 | |||||||||||||||||||||||||||
Depreciation and amortization | 28,687 | 12,900 | 12,658 | 54,245 | 2,187 | 2,247 | 58,679 | ||||||||||||||||||||||||||||||||||
Restructuring and other(a) | — | — | — | — | — | 2,251 | 2,251 | ||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(b) | — | — | — | — | — | 5,928 | 5,928 | ||||||||||||||||||||||||||||||||||
Interest and financing expenses | — | — | — | — | — | 19,227 | 19,227 | ||||||||||||||||||||||||||||||||||
Income tax expense | — | — | — | — | — | 30,653 | 30,653 | ||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | — | — | — | — | — | (2,901) | (2,901) | ||||||||||||||||||||||||||||||||||
Other(c) | — | — | — | — | — | 3,917 | 3,917 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 97,789 | $ | 79,448 | $ | 37,834 | $ | 215,071 | $ | 24,985 | $ | (24,001) | $ | 216,055 | |||||||||||||||||||||||||||
Three months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | 102,136 | $ | 75,224 | $ | 54,345 | $ | 231,705 | $ | 8,305 | $ | (84,940) | $ | 155,070 | |||||||||||||||||||||||||||
Depreciation and amortization | 25,212 | 12,448 | 12,599 | 50,259 | 2,143 | 2,085 | 54,487 | ||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(b) | — | — | — | — | — | 4,114 | 4,114 | ||||||||||||||||||||||||||||||||||
Interest and financing expenses | — | — | — | — | — | 11,108 | 11,108 | ||||||||||||||||||||||||||||||||||
Income tax expense | — | — | — | — | — | 25,341 | 25,341 | ||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | — | — | — | — | — | (551) | (551) | ||||||||||||||||||||||||||||||||||
Other(d) | 111 | 1,142 | — | 1,253 | — | 3,529 | 4,782 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 127,459 | $ | 88,814 | $ | 66,944 | $ | 283,217 | $ | 10,448 | $ | (39,314) | $ | 254,351 |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 265,646 | $ | 330,386 | $ | (64,740) | (20) | % | |||||||||||||||
▪$54.9 million of unfavorable pricing impacts, primarily in battery- and tech-grade carbonate and hydroxide due to lower contract pricing reflecting 2020 price adjustments agreed to with customers ▪$10.5 million in lower sales volume, primarily in battery-grade carbonate and hydroxide | |||||||||||||||||||||||
Adjusted EBITDA | $ | 97,789 | $ | 127,459 | $ | (29,670) | (23) | % | |||||||||||||||
▪Unfavorable pricing impacts and lower sales volume ▪Lower equity in net income of unconsolidated investments from the Talison joint venture ▪Partially offset by productivity improvements and a reduction in professional fees and other administrative costs, including those resulting from the Company’s previously announced cost savings initiative ▪$1.5 million of favorable currency translation resulting from a weaker Chilean Peso ▪$7.0 million out-of-period non-cash expense recorded in the third quarter of 2019 in Cost of goods sold due to an adjustment of lithium carbonate inventory values in the second quarter of 2019 |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 237,193 | $ | 256,267 | $ | (19,074) | (7) | % | |||||||||||||||
▪$15.0 million of lower sales volume related to lower demand resulting from the COVID-19 pandemic ▪$5.9 million of unfavorable pricing impacts, primarily in the flame retardants division ▪$1.4 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies | |||||||||||||||||||||||
Adjusted EBITDA | $ | 79,448 | $ | 88,814 | $ | (9,366) | (11) | % | |||||||||||||||
▪Lower sales volume and unfavorable pricing impacts ▪Partially offset by productivity improvements and a reduction in professional fees and other administrative costs, including those resulting from the Company’s previously announced cost savings initiative |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 197,919 | $ | 261,346 | $ | (63,427) | (24) | % | |||||||||||||||
▪$61.5 million of lower sales volume, primarily from lower fuel demand due to stay at home orders and travel restrictions worldwide related to the COVID-19 pandemic ▪$3.5 million of unfavorable pricing impacts, primarily in FCC ▪$1.5 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies | |||||||||||||||||||||||
Adjusted EBITDA | $ | 37,834 | $ | 66,944 | $ | (29,110) | (43) | % | |||||||||||||||
▪Lower sales volume resulting from lower fuel demand ▪Partially offset by productivity improvements and a reduction in professional fees and other administrative costs, including those resulting from the Company’s previously announced cost savings initiative |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 46,110 | $ | 31,748 | $ | 14,362 | 45 | % | |||||||||||||||
▪Higher sales volume in our FCS business | |||||||||||||||||||||||
Adjusted EBITDA | $ | 24,985 | $ | 10,448 | $ | 14,537 | 139 | % | |||||||||||||||
▪Higher sales volume in our FCS business |
In thousands | Q3 2020 | Q3 2019 | $ Change | % Change | |||||||||||||||||||
Adjusted EBITDA | $ | (24,001) | $ | (39,314) | $ | 15,313 | 39 | % | |||||||||||||||
▪$15.3 million of favorable currency exchange impacts, including $6 million of foreign currency gains from our Talison joint venture |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 2,249,762 | $ | 2,596,863 | $ | (347,101) | (13) | % | |||||||||||||||
▪$204.8 million of lower sales volume from each of our reportable segments, partially offset by FCS ▪$140.1 million of unfavorable pricing primarily driven by Lithium ▪$2.2 million of unfavorable currency translation resulting from the stronger U.S. Dollar against various currencies |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Gross profit | $ | 729,433 | $ | 919,267 | $ | (189,834) | (21) | % | |||||||||||||||
Gross profit margin | 32.4 | % | 35.4 | % | |||||||||||||||||||
▪Lower sales volume from each of our reportable segments and unfavorable pricing impacts primarily driven by Lithium ▪Unfavorable currency exchange impacts resulting from the stronger U.S. Dollar against various currencies |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Selling, general and administrative expenses | $ | 304,918 | $ | 348,205 | $ | (43,287) | (12) | % | |||||||||||||||
Percentage of Net sales | 13.6 | % | 13.4 | % | |||||||||||||||||||
▪Productivity improvements and a reduction in professional fees and other administrative costs, including those resulting from the Company’s previously announced cost savings initiative ▪$5.1 million increase in severance expense as part of a business reorganization plan ▪$3.8 million of a net expense primarily relating to the increase of environmental reserves at non-operating businesses we have previously divested. |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Research and development expenses | $ | 43,839 | $ | 44,024 | $ | (185) | — | % | |||||||||||||||
Percentage of Net sales | 1.9 | % | 1.7 | % | |||||||||||||||||||
▪Research and development spend in line with prior year |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Interest and financing expenses | $ | (53,964) | $ | (35,295) | $ | (18,669) | 53 | % | |||||||||||||||
▪Increased debt balance in 2020, primarily related to the funding of the Wodgina Project acquisition and credit facility draws in 2020 ▪The increase was partially offset by higher capitalized interest from continued capital expenditures in 2020 |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Other expenses, net | $ | (1,620) | $ | (7,090) | $ | 5,470 | (77) | % | |||||||||||||||
▪$11.1 million gain related to the sale of land in Pasadena, Texas in 2019 ▪$11.4 million decrease in foreign exchange losses ▪$6.9 million increase in non-operating pension and OPEB gains resulting from lower interest expenses and increased estimated return on assets |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Income tax expense | $ | 64,526 | $ | 93,266 | $ | (28,740) | (31) | % | |||||||||||||||
Effective income tax rate | 19.8 | % | 19.2 | % | |||||||||||||||||||
▪Change in geographic mix of earnings, mainly attributable to our share of the income of our JBC joint venture, a Free Zones company under the law of the Hashemite Kingdom of Jordan ▪2020 includes discrete tax expenses for foreign uncertain tax positions and foreign return to accrual adjustments, partially offset by excess tax benefits realized from stock-based compensation arrangements |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Equity in net income of unconsolidated investments | $ | 83,872 | $ | 106,727 | $ | (22,855) | (21) | % | |||||||||||||||
▪Lower earnings from our Lithium segment joint venture, Talison, primarily driven by lower sales volume |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Net income attributable to noncontrolling interests | $ | (53,309) | $ | (55,277) | $ | 1,968 | (4) | % | |||||||||||||||
▪Decrease in consolidated income related to our JBC joint venture from lower sales volume |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Net income attributable to Albemarle Corporation | $ | 291,129 | $ | 442,837 | $ | (151,708) | (34) | % | |||||||||||||||
Percentage of Net sales | 12.9 | % | 17.1 | % | |||||||||||||||||||
Basic earnings per share | $ | 2.74 | $ | 4.18 | $ | (1.44) | (34) | % | |||||||||||||||
Diluted earnings per share | $ | 2.73 | $ | 4.16 | $ | (1.43) | (34) | % | |||||||||||||||
▪Decrease primarily due to decreased sales volume in each of our reportable segments and unfavorable price impacts in Lithium ▪Increased interest expense from higher debt balances in 2020 ▪Lower equity in net income of unconsolidated investments from the Talison joint venture ▪Productivity improvements and a reduction in professional fees and other administrative costs, including those resulting from our previously announced cost savings initiative |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Other comprehensive (loss) income, net of tax | $ | (2,585) | $ | (85,437) | $ | 82,852 | (97) | % | |||||||||||||||
▪Foreign currency translation | $ | 18,350 | $ | (100,380) | $ | 118,730 | (118) | % | |||||||||||||||
▪2020 included favorable movements in the Euro of approximately $30 million, the Chinese Renminbi of approximately $8 million and the Japanese Yen and Taiwanese Dollar of approximately $3 million each, partially offset by unfavorable movements in the Brazilian Real of approximately $23 million ▪2019 included unfavorable movements in the Euro of approximately $85 million, the Chinese Renminbi of approximately $9 million, the Brazilian Real of approximately $6 million and the Korean Won of approximately $3 million, partially offset by a net favorable variance in other currencies totaling approximately $2 million | |||||||||||||||||||||||
▪Cash flow hedge | $ | (6,822) | $ | — | $ | (6,822) | |||||||||||||||||
▪Net investment hedge | $ | (16,083) | $ | 13,012 | $ | (29,095) | (224) | % |
Nine Months Ended September 30, | Percentage Change | ||||||||||||||||||||||||||||
2020 | % | 2019 | % | 2020 vs. 2019 | |||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||
Lithium | $ | 786,186 | 34.9 | % | $ | 947,030 | 36.5 | % | (17) | % | |||||||||||||||||||
Bromine Specialties | 701,564 | 31.2 | % | 760,752 | 29.3 | % | (8) | % | |||||||||||||||||||||
Catalysts | 602,179 | 26.8 | % | 779,295 | 30.0 | % | (23) | % | |||||||||||||||||||||
All Other | 159,833 | 7.1 | % | 109,786 | 4.2 | % | 46 | % | |||||||||||||||||||||
Total net sales | $ | 2,249,762 | 100.0 | % | $ | 2,596,863 | 100.0 | % | (13) | % | |||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||||||
Lithium | $ | 270,962 | 45.3 | % | $ | 384,854 | 51.9 | % | (30) | % | |||||||||||||||||||
Bromine Specialties | 235,751 | 39.5 | % | 248,743 | 33.5 | % | (5) | % | |||||||||||||||||||||
Catalysts | 108,081 | 18.1 | % | 193,890 | 26.1 | % | (44) | % | |||||||||||||||||||||
All Other | 66,407 | 11.1 | % | 28,931 | 3.9 | % | 130 | % | |||||||||||||||||||||
Corporate | (83,588) | (14.0) | % | (114,300) | (15.4) | % | 27 | % | |||||||||||||||||||||
Total adjusted EBITDA | $ | 597,613 | 100.0 | % | $ | 742,118 | 100.0 | % | (19) | % |
Lithium | Bromine Specialties | Catalysts | Reportable Segments Total | All Other | Corporate | Consolidated Total | |||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | 188,380 | $ | 198,905 | $ | 70,770 | $ | 458,055 | $ | 60,069 | $ | (226,995) | $ | 291,129 | |||||||||||||||||||||||||||
Depreciation and amortization | 82,582 | 36,846 | 37,311 | 156,739 | 6,338 | 7,137 | 170,214 | ||||||||||||||||||||||||||||||||||
Restructuring and other(a) | — | — | — | — | — | 10,831 | 10,831 | ||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(b) | — | — | — | — | — | 14,349 | 14,349 | ||||||||||||||||||||||||||||||||||
Interest and financing expenses | — | — | — | — | — | 53,964 | 53,964 | ||||||||||||||||||||||||||||||||||
Income tax expense | — | — | — | — | — | 64,526 | 64,526 | ||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | — | — | — | — | — | (8,704) | (8,704) | ||||||||||||||||||||||||||||||||||
Other(c) | — | — | — | — | — | 1,304 | 1,304 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 270,962 | $ | 235,751 | $ | 108,081 | $ | 614,794 | $ | 66,407 | $ | (83,588) | $ | 597,613 | |||||||||||||||||||||||||||
Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | 312,609 | $ | 212,320 | $ | 156,328 | $ | 681,257 | $ | 22,629 | $ | (261,049) | $ | 442,837 | |||||||||||||||||||||||||||
Depreciation and amortization | 71,669 | 35,281 | 37,562 | 144,512 | 6,302 | 5,904 | 156,718 | ||||||||||||||||||||||||||||||||||
Restructuring and other(a) | — | — | — | — | — | 5,290 | 5,290 | ||||||||||||||||||||||||||||||||||
Acquisition and integration related costs(b) | — | — | — | — | — | 14,388 | 14,388 | ||||||||||||||||||||||||||||||||||
Gain on sale of property(d) | — | — | — | — | — | (11,079) | (11,079) | ||||||||||||||||||||||||||||||||||
Interest and financing expenses | — | — | — | — | — | 35,295 | 35,295 | ||||||||||||||||||||||||||||||||||
Income tax expense | — | — | — | — | — | 93,266 | 93,266 | ||||||||||||||||||||||||||||||||||
Non-operating pension and OPEB items | — | — | — | — | — | (1,810) | (1,810) | ||||||||||||||||||||||||||||||||||
Other(e) | 576 | 1,142 | — | 1,718 | — | 5,495 | 7,213 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 384,854 | $ | 248,743 | $ | 193,890 | $ | 827,487 | $ | 28,931 | $ | (114,300) | $ | 742,118 |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 786,186 | $ | 947,030 | $ | (160,844) | (17) | % | |||||||||||||||
▪$124.5 million of unfavorable pricing impacts, primarily in battery- and tech-grade carbonate and hydroxide due to lower contract pricing reflecting 2020 price adjustments agreed to with customers ▪$30.7 million in lower sales volume, primarily in battery-grade carbonate due to higher inventory levels at certain customers and current economic conditions, partially offset by higher battery- and tech-grade hydroxide sales volume ▪$5.5 million of unfavorable currency translation resulting from the stronger U.S. Dollar against various currencies | |||||||||||||||||||||||
Adjusted EBITDA | $ | 270,962 | $ | 384,854 | $ | (113,892) | (30) | % | |||||||||||||||
▪Unfavorable pricing impacts and lower sales volume ▪Lower equity in net income of unconsolidated investments from the Talison joint venture ▪Partially offset by productivity improvements and a reduction in professional fees and other administrative costs, including those resulting from the Company’s previously announced cost savings initiative ▪$7.7 million of favorable currency translation resulting from a weaker Chilean Peso |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 701,564 | $ | 760,752 | $ | (59,188) | (8) | % | |||||||||||||||
▪$63.5 million of lower sales volume related to lower demand resulting from the COVID-19 pandemic ▪$3.2 million of favorable pricing impacts in each bromine division ▪$1.0 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies | |||||||||||||||||||||||
Adjusted EBITDA | $ | 235,751 | $ | 248,743 | $ | (12,992) | (5) | % | |||||||||||||||
▪Lower sales volume, partially offset by favorable pricing impacts and product mix ▪Partially offset by productivity improvements and a reduction in professional fees and other administrative costs, including those resulting from the Company’s previously announced cost savings initiative |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 602,179 | $ | 779,295 | $ | (177,116) | (23) | % | |||||||||||||||
▪$167.9 million of lower sales volume, primarily from lower fuel demand due to stay at home orders and travel restrictions worldwide related to COVID-19 pandemic ▪$11.6 million of unfavorable pricing impacts, primarily in FCC ▪$2.2 million of favorable currency translation resulting from the weaker U.S. Dollar against various currencies | |||||||||||||||||||||||
Adjusted EBITDA | $ | 108,081 | $ | 193,890 | $ | (85,809) | (44) | % | |||||||||||||||
▪Lower sales volume resulting from lower fuel demand and unfavorable pricing impacts ▪Increased freight costs ▪Partially offset by productivity improvements and a reduction in professional fees and other administrative costs, including those resulting from the Company’s previously announced cost savings initiative |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Net sales | $ | 159,833 | $ | 109,786 | $ | 50,047 | 46 | % | |||||||||||||||
▪Higher sales volume in our FCS business | |||||||||||||||||||||||
Adjusted EBITDA | $ | 66,407 | $ | 28,931 | $ | 37,476 | 130 | % | |||||||||||||||
▪Higher sales volume in our FCS business |
In thousands | YTD 2020 | YTD 2019 | $ Change | % Change | |||||||||||||||||||
Adjusted EBITDA | $ | (83,588) | $ | (114,300) | $ | 30,712 | 27 | % | |||||||||||||||
▪Lower professional fees and other administrative costs resulting from our previously announced cost savings initiative ▪$17.9 million of favorable currency translation, including $5 million of foreign currency gains from our Talison joint venture |
Issue Month/Year | Principal (in millions) | Interest Rate | Interest Payment Dates | Maturity Date | |||||||||||||||||||||||||
November 2019 | €500.0 | 1.125% | November 25 | November 25, 2025 | |||||||||||||||||||||||||
November 2019 | €500.0 | 1.625% | November 25 | November 25, 2028 | |||||||||||||||||||||||||
November 2019(a) | $300.0 | 3.45% | May 15 and November 15 | November 15, 2029 | |||||||||||||||||||||||||
November 2019(b) | $200.0 | Floating Rate | February 15, May 15, August 15 and November 15 | November 15, 2022 | |||||||||||||||||||||||||
December 2014(a) | €393.0 | 1.875% | December 8 | December 8, 2021 | |||||||||||||||||||||||||
November 2014(a) | $425.0 | 4.15% | June 1 and December 1 | December 1, 2024 | |||||||||||||||||||||||||
November 2014(a) | $350.0 | 5.45% | June 1 and December 1 | December 1, 2044 |
$ in thousands | Nine Months Ended September 30, 2020 | Year Ended December 31, 2019 | |||||||||
Net sales(a) | $ | 1,211,300 | $ | 1,847,927 | |||||||
Gross profit | 275,862 | 488,248 | |||||||||
Loss before income taxes and equity in net income of unconsolidated investments(b) | (132,992) | (94,118) | |||||||||
Net loss attributable to the Guarantor and the Issuer | (110,089) | (134,289) |
$ in thousands | September 30, 2020 | December 31, 2019 | |||||||||
Current assets(a) | $ | 1,069,888 | $ | 865,228 | |||||||
Net property, plant and equipment | 2,566,615 | 2,357,193 | |||||||||
Other non-current assets | 286,737 | 303,851 | |||||||||
Current liabilities(b) | $ | 1,641,587 | $ | 1,130,484 | |||||||
Long-term debt | 1,776,956 | 1,754,099 | |||||||||
Other non-current liabilities(c) | 7,296,482 | 7,186,392 |
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. |
Item 6. | Exhibits. |
101 | Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended September 30, 2020, furnished in XBRL (eXtensible Business Reporting Language)). |
* | Included with this filing. |
ALBEMARLE CORPORATION | |||||||||||||||||
(Registrant) | |||||||||||||||||
Date: | November 4, 2020 | By: | /S/ SCOTT A. TOZIER | ||||||||||||||
Scott A. Tozier | |||||||||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||||||||
(principal financial officer) |
Date: | November 4, 2020 |
/s/ J. KENT MASTERS | ||
J. Kent Masters | ||
Chairman, President and Chief Executive Officer |
Date: | November 4, 2020 |
/s/ SCOTT A. TOZIER | ||
Scott A. Tozier | ||
Executive Vice President and Chief Financial Officer |
/s/ J. KENT MASTERS | ||
J. Kent Masters | ||
Chairman, President and Chief Executive Officer | ||
November 4, 2020 |
/s/ SCOTT A. TOZIER | ||
Scott A. Tozier | ||
Executive Vice President and Chief Financial Officer | ||
November 4, 2020 |
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Statement [Abstract] | ||||
Net sales | $ 746,868 | $ 879,747 | $ 2,249,762 | $ 2,596,863 |
Cost of goods sold | 492,812 | 569,880 | 1,520,329 | 1,677,596 |
Gross profit | 254,056 | 309,867 | 729,433 | 919,267 |
Selling, general and administrative expenses | 96,092 | 108,135 | 304,918 | 348,205 |
Research and development expenses | 13,532 | 15,585 | 43,839 | 44,024 |
Operating profit | 144,432 | 186,147 | 380,676 | 527,038 |
Interest and financing expenses | (19,227) | (11,108) | (53,964) | (35,295) |
Other expenses, net | (3,661) | (11,316) | (1,620) | (7,090) |
Income before income taxes and equity in net income of unconsolidated investments | 121,544 | 163,723 | 325,092 | 484,653 |
Income tax expense | 30,653 | 25,341 | 64,526 | 93,266 |
Income before equity in net income of unconsolidated investments | 90,891 | 138,382 | 260,566 | 391,387 |
Equity in net income of unconsolidated investments (net of tax) | 26,154 | 33,236 | 83,872 | 106,727 |
Net income | 117,045 | 171,618 | 344,438 | 498,114 |
Net income attributable to noncontrolling interests | (18,744) | (16,548) | (53,309) | (55,277) |
Net income attributable to Albemarle Corporation | $ 98,301 | $ 155,070 | $ 291,129 | $ 442,837 |
Basic earnings per share (in dollars per share) | $ 0.92 | $ 1.46 | $ 2.74 | $ 4.18 |
Diluted earnings per share (in dollars per share) | $ 0.92 | $ 1.46 | $ 2.73 | $ 4.16 |
Weighted-average common shares outstanding - basic (in shares) | 106,386 | 105,999 | 106,314 | 105,920 |
Weighted-average common shares outstanding - diluted (in shares) | 106,873 | 106,299 | 106,640 | 106,324 |
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 117,045 | $ 171,618 | $ 344,438 | $ 498,114 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | 37,489 | (100,069) | 18,350 | (100,380) |
Pension and postretirement benefits | 10 | (5) | 27 | 8 |
Net investment hedge | (12,408) | 12,745 | (16,083) | 13,012 |
Cash flow hedge | 6,993 | 0 | (6,822) | 0 |
Interest rate swap | 647 | 641 | 1,943 | 1,923 |
Total other comprehensive income (loss), net of tax | 32,731 | (86,688) | (2,585) | (85,437) |
Comprehensive income | 149,776 | 84,930 | 341,853 | 412,677 |
Comprehensive income attributable to noncontrolling interests | (18,811) | (16,426) | (53,456) | (55,135) |
Comprehensive income attributable to Albemarle Corporation | $ 130,965 | $ 68,504 | $ 288,397 | $ 357,542 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,154 | $ 3,711 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 106,457 | 106,040 |
Common stock, outstanding (in shares) | 106,457 | 106,040 |
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Financial Position [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.385 | $ 0.3675 | $ 1.155 | $ 1.1025 |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements of Albemarle Corporation and our wholly-owned, majority-owned and controlled subsidiaries (collectively, “Albemarle,” “we,” “us,” “our” or “the Company”) contain all adjustments necessary for a fair statement, in all material respects, of our condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019, our consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of changes in equity for the three-month and nine-month periods ended September 30, 2020 and 2019 and our condensed consolidated statements of cash flows for the nine-month periods ended September 30, 2020 and 2019. Cost of goods sold for the three-month period ended September 30, 2019 includes expense of $7.0 million due to the correction of an out-of-period error regarding carbonate inventory values related to the three-month period ended June 30, 2019. The Company does not believe this adjustment is material to the consolidated financial statements for the three- or nine-month periods ended September 30, 2019, or the three- or six-month periods ended June 30, 2019. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the Securities and Exchange Commission (“SEC”) on February 26, 2020. The December 31, 2019 condensed consolidated balance sheet data herein was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The results of operations for the three-month and nine-month periods ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made to the accompanying condensed consolidated financial statements and the notes thereto to conform to the current presentation. The current novel coronavirus (“COVID-19”) pandemic is having an impact on overall global economic conditions. While we have not seen a material impact to our operations to date, the ultimate impact on our business will depend on the length and severity of the outbreak throughout the world. The Company has taken, and plans to continue to take, certain measures to maintain financial flexibility, including delaying certain capital expenditure projects and accelerating our cost savings initiative, while still protecting our employees and customers. In addition, on May 11, 2020, the Company amended its revolving, unsecured credit agreement dated as of June 21, 2018, as amended on August 14, 2019 (the “2018 Credit Agreement”) and unsecured credit facility entered into on August 14, 2019 (the “2019 Credit Facility”) (together “the Credit Agreements”) to modify its financial covenant based on the Company’s current expectations. As of September 30, 2020, the Company is in compliance with its financial covenant under its Credit Agreements and expects to be in compliance with its financial covenant for at least one year from the issuance of these interim financial statements. If conditions caused by the COVID-19 pandemic worsen and the Company’s earnings and cash flow from operations do not start to recover as contemplated in the Company's current plans, the Company may not be able to maintain compliance with its amended financial covenant and could have a material adverse effect on the Company. See Note 8, “Long-Term Debt,” for further discussion of covenant amendment. In addition, as of September 30, 2020, we assessed other accounting estimates based on forecasted financial information, including, but not limited to, our allowance for credit losses, the carrying value of our goodwill, intangible assets, and other long-lived assets. At this time we cannot predict the ultimate financial impact of the COVID-19 pandemic on our business, and to what extent economic and operating conditions recover on a sustainable basis globally. Accordingly, if the impact is more severe or longer in duration than we have assumed, such impact could potentially result in impairments and increases in credit allowances.
|
Acquisitions |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions: On October 31, 2019 (the “Acquisition Closing Date”), we completed the previously announced acquisition of a 60% interest in Mineral Resources Limited’s (“MRL”) Wodgina hard rock lithium mine project (“Wodgina Project”) for a total purchase price of approximately $1.3 billion. The purchase price is comprised of $820 million in cash and the transfer of 40% interest in certain lithium hydroxide conversion assets being built by Albemarle in Kemerton, Western Australia, valued at $480 million. The cash consideration was initially funded by the 2019 Credit Facility entered into on August 14, 2019. In addition, during the first nine months of 2020, we paid $22.6 million of agreed upon purchase price adjustments. The stamp duty levied on the assets purchased of $61.5 million, originally recorded as an expense during the year ended December 31, 2019, was paid in the second quarter of 2020 and is included in Change in working capital on the condensed consolidated statement of cash flows. In addition, we have formed an unincorporated joint venture with MRL, MARBL, for the exploration, development, mining, processing and production of lithium and other minerals from the Wodgina Project and for the operation of the Kemerton assets. We are entitled to a pro rata portion of 60% of all minerals (other than iron ore and tantalum) recovered from the tenements and produced by the joint venture. The joint venture is unincorporated with each investor holding an undivided interest in each asset and proportionately liable for each liability; therefore, our proportionate share of assets, liabilities, revenue and expenses are included in the appropriate classifications in the consolidated financial statements. As part of this acquisition, MARBL Lithium Operations Pty. Ltd. (the “Manager”), an incorporated joint venture, has been formed to manage the Wodgina Project. We consolidate our 60% ownership interest in the Manager in our consolidated financial statements. This acquisition provides access to a high-quality hard rock lithium source, further diversifying our global lithium resource base, and strengthens our position by increasing capacity to support future market demand. In connection with the acquisition, we idled production of the Wodgina spodumene mine until demand supports bringing the mine back to production. The results of our 60% ownership interest in MARBL are reported within the Lithium segment. Included in Net income attributable to Albemarle Corporation for the three-month and nine-month periods ended September 30, 2020 is a loss of approximately $4.7 million and $14.6 million, respectively, attributable to the joint venture. There were no net sales attributable to the joint venture during this period. Included in Selling, general and administrative expenses (“SG&A”) on our consolidated statements of income for the three-month and nine-month periods ended September 30, 2020 and 2019 is $0.2 million and $1.0 million, respectively, and $1.3 million and $4.4 million, respectively, of costs directly related to this acquisition, primarily consisting of professional services and advisory fees. Pro forma financial information of the combined entities for periods prior to the acquisition is not presented due to the immaterial impact of the Net Sales and Net Income of the Wodgina Project on our consolidated statements of income. Preliminary Purchase Price Allocation The aggregate purchase price noted above was allocated to the major categories of assets and liabilities acquired based upon their estimated fair values at the Acquisition Closing Date, which were based, in part, upon third-party appraisals for certain assets. The excess of the purchase price over the preliminary estimated fair value of the net assets acquired was approximately $18.8 million and was recorded as Goodwill. The following table summarizes the consideration paid for the joint venture and the amounts of the assets acquired and liabilities assumed as of the acquisition date, which have been allocated on a preliminary basis (in thousands):
(a) Represents 60% ownership interest in finance lease acquired. See Note 10, “Leases,” for further information on the Company’s leases. The allocation of the purchase price to the assets acquired and liabilities assumed, including the residual amount allocated to Goodwill, is based upon preliminary information and is subject to change within the measurement-period (up to one year from the acquisition date) as additional information concerning final asset and liability valuations is obtained. Significant changes in our purchase price allocation since our initial preliminary estimates reported in the fourth quarter of 2019 were primarily related to an increase in the estimated fair values of mineral rights and reserves, which resulted in a decrease to recognized goodwill of approximately $13.0 million. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the fair value of Mineral rights and reserves and Goodwill. The fair value of the assets acquired and liabilities assumed were based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. The fair value of the mineral reserves of $1,025.9 million was determined using an excess earnings approach, which requires management to estimate future cash flows, net of capital investments in the specific operation. Management’s cash flow projections involved the use of significant estimates and assumptions with respect to the expected production of the mine over the estimated time period, sales prices, shipment volumes, and expected profit margins. The present value of the projected net cash flows represents the preliminary fair value assigned to mineral reserves. The discount rate is a significant assumption used in the valuation model. If the actual results differ from the estimates and judgments used in these fair values, the amounts recorded in the consolidated financial statements could be subject to possible impairment. Goodwill arising from the acquisition consists largely of anticipated synergies and economies of scale from the combined companies and overall strategic importance of the acquired businesses to Albemarle. The goodwill attributable to the acquisition will not be amortizable or deductible for tax purposes.
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Goodwill and Other Intangibles |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangibles | Goodwill and Other Intangibles: The following table summarizes the changes in goodwill by reportable segment for the nine months ended September 30, 2020 (in thousands):
(a) Represents preliminary purchase price adjustments for the Wodgina Project acquisition. See Note 2, “Acquisitions” for additional information. The following table summarizes the changes in other intangibles and related accumulated amortization for the nine months ended September 30, 2020 (in thousands):
(a) Net Book Value includes only indefinite-lived intangible assets.
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Income Taxes |
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Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes:The effective income tax rate for the three-month and nine-month periods ended September 30, 2020 was 25.2% and 19.8%, respectively, compared to 15.5% and 19.2% for the three-month and nine-month periods ended September 30, 2019, respectively. The Company’s effective income tax rate fluctuates based on, among other factors, its level and location of income. The difference between the U.S. federal statutory income tax rate and our effective income tax rate for the three-month and nine-month periods ended September 30, 2020 was impacted by a variety of factors, primarily stemming from the location in which income was earned. For the three-month and nine-month periods ended September 30, 2020, this was mainly attributable to our share of the income of our Jordan Bromine Company Limited (“JBC”) joint venture, a Free Zones company under the laws of the Hashemite Kingdom of Jordan. The three-month and nine-month periods ended September 30, 2020 also include discrete tax expenses recorded for foreign uncertain tax positions and foreign return to accrual adjustments. The difference between the U.S. federal statutory income tax rate and our effective income tax rate for the three-month and nine-month periods ended September 30, 2019 was impacted by a variety of factors, primarily stemming from the location in which income was earned. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share: Basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2020 and 2019 are calculated as follows (in thousands, except per share amounts):
At September 30, 2020, there were 45,706 common stock equivalents not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. On February 28, 2020, the Company increased the regular quarterly dividend by 5% to $0.385 per share. On July 14, 2020, the Company declared a cash dividend of $0.385, which was paid on October 1, 2020 to shareholders of record at the close of business as of September 18, 2020. On October 27, 2020, the Company declared a cash dividend of $0.385 per share, which is payable on January 4, 2021 to shareholders of record at the close of business as of December 11, 2020.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories: The following table provides a breakdown of inventories at September 30, 2020 and December 31, 2019 (in thousands):
(a)Included $124.3 million and $109.3 million at September 30, 2020 and December 31, 2019, respectively, of work in process in our Lithium segment.
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Investments |
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Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments:The Company holds a 49% equity interest in Windfield Holdings Pty. Ltd. (“Windfield”), where the ownership parties share risks and benefits disproportionate to their voting interests. As a result, the Company considers Windfield to be a variable interest entity (“VIE”), however this investment is not consolidated as the Company is not the primary beneficiary. The carrying amount of our 49% equity interest in Windfield, which is our most significant VIE, was $428.4 million and $397.2 million at September 30, 2020 and December 31, 2019, respectively. The Company’s aggregate net investment in all other entities which it considers to be VIEs for which the Company is not the primary beneficiary was $7.1 million and $7.6 million at September 30, 2020 and December 31, 2019, respectively. Our unconsolidated VIEs are reported in Investments on the condensed consolidated balance sheets. The Company does not guarantee debt for, or have other financial support obligations to, these entities, and its maximum exposure to loss in connection with its continuing involvement with these entities is limited to the carrying value of the investments. |
Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-Term Debt: Long-term debt at September 30, 2020 and December 31, 2019 consisted of the following (in thousands):
Current portion of long-term debt at September 30, 2020 includes commercial paper notes with a weighted-average interest rate of approximately 0.55% and a weighted-average maturity of 46 days. In the first quarter of 2020, the Company borrowed $250.0 million under the 2018 Credit Agreement to repay short-term commercial paper notes and for other general corporate purposes. This amount was repaid in the third quarter of 2020 using short-term commercial paper notes. In April 2020, the Company borrowed the Euro equivalent of $200.0 million under the 2019 Credit Facility to be used for general corporate purposes. The applicable interest rate for the amount borrowed was 1.375%. The carrying value of our 1.875% Euro-denominated senior notes has been designated as an effective hedge of our net investment in certain foreign subsidiaries where the Euro serves as the functional currency, and gains or losses on the revaluation of these senior notes to our reporting currency are recorded in accumulated other comprehensive loss. During the three-month and nine-month periods ended September 30, 2020, losses of $12.4 million and $16.1 million (net of income taxes), respectively, and during the three-month and nine-month periods ended September 30, 2019, gains of $12.7 million and $13.0 million (net of income taxes), respectively, were recorded in accumulated other comprehensive loss in connection with the revaluation of these senior notes to our reporting currency. As a result of the uncertainty of the overall financial impact of the COVID-19 pandemic, the Company amended the Credit Agreements on May 11, 2020 to modify its financial covenant based on the Company’s current expectations. The amendment effects changes to certain provisions of the Credit Agreements, including: (a) conversion of the consolidated funded debt to consolidated EBITDA ratio to a consolidated net funded debt to consolidated EBITDA ratio; (b) carving-out third party sales of accounts receivables from the Securitization Transaction definition; (c) setting the consolidated net funded debt to consolidated EBITDA ratio to 4.00:1 for the fiscal quarter ending June 30, 2020, 4.50:1 for the fiscal quarters through September 30, 2021, 4.00:1 for the fiscal quarter ending December 31, 2021, and 3.50:1 for fiscal quarters thereafter; and (d) reducing the priority debt basket to 24% of Consolidated Net Tangible Assets, as defined in the Credit Agreements, through and including December 31, 2021. As part of this amendment, the Company agreed to pay a 10 basis point fee on the consenting lenders commitments under the Credit Agreements. If conditions caused by the COVID-19 pandemic worsen and the Company’s earnings and cash flow from operations do not start to recover as contemplated in the Company's current plans, the Company may not be able to maintain compliance with its amended financial covenants and it will require the Company to seek additional amendments to the Credit Agreements. If the Company is not able to obtain such necessary additional amendments, this would lead to an event of default and its lenders could require the Company to repay its outstanding debt. In that situation, the Company may not be able to raise sufficient debt or equity capital, or divest assets, to refinance or repay the lenders. As of September 30, 2020, the Company was in compliance with its debt covenant under the Credit Agreements.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies: Environmental We had the following activity in our recorded environmental liabilities for the nine months ended September 30, 2020 (in thousands):
Environmental remediation liabilities included discounted liabilities of $38.7 million and $35.6 million at September 30, 2020 and December 31, 2019, respectively, discounted at rates with a weighted-average of 3.5% and 3.7%, respectively, with the undiscounted amount totaling $72.9 million and $69.2 million at September 30, 2020 and December 31, 2019, respectively. For certain locations where the Company is operating groundwater monitoring and/or remediation systems, prior owners or insurers have assumed all or most of the responsibility. The amounts recorded represent our future remediation and other anticipated environmental liabilities. These liabilities typically arise during the normal course of our operational and environmental management activities or at the time of acquisition of the site, and are based on internal analysis as well as input from outside consultants. As evaluations proceed at each relevant site, changes in risk assessment practices, remediation techniques and regulatory requirements can occur, therefore such liability estimates may be adjusted accordingly. The timing and duration of remediation activities at these sites will be determined when evaluations are completed. Although it is difficult to quantify the potential financial impact of these remediation liabilities, management estimates (based on the latest available information) that there is a reasonable possibility that future environmental remediation costs associated with our past operations, could be an additional $10 million to $30 million before income taxes, in excess of amounts already recorded. The variability of this range is primarily driven by possible environmental remediation activity at a formerly owned site where we indemnify the buyer through a set cutoff date in 2024. We believe that any sum we may be required to pay in connection with environmental remediation matters in excess of the amounts recorded would likely occur over a period of time and would likely not have a material adverse effect upon our results of operations, financial condition or cash flows on a consolidated annual basis although any such sum could have a material adverse impact on our results of operations, financial condition or cash flows in a particular quarterly reporting period. Litigation We are involved from time to time in legal proceedings of types regarded as common in our business, including administrative or judicial proceedings seeking remediation under environmental laws, such as the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as CERCLA or Superfund, products liability, breach of contract liability and premises liability litigation. Where appropriate, we may establish financial reserves for such proceedings. We also maintain insurance to mitigate certain of such risks. Costs for legal services are generally expensed as incurred. As previously reported in 2018, following receipt of information regarding potential improper payments being made by third party sales representatives of our Refining Solutions business, within our Catalysts segment, we promptly retained outside counsel and forensic accountants to investigate potential violations of the Company’s Code of Conduct, the Foreign Corrupt Practices Act and other potentially applicable laws. Based on this internal investigation, we have voluntarily self-reported potential issues relating to the use of third party sales representatives in our Refining Solutions business, within our Catalysts segment, to the U.S. Department of Justice (“DOJ”), SEC, and the Dutch Public Prosecutor (“DPP”), and are cooperating with the DOJ, SEC, and DPP in their review of these matters. In connection with our internal investigation, we have implemented, and are continuing to implement, appropriate remedial measures. At this time, we are unable to predict the duration, scope, result or related costs associated with any investigations by the DOJ, SEC, or DPP. We are unable to predict what, if any, action may be taken by the DOJ, SEC, or DPP, or what penalties or remedial actions they may seek to impose. Any determination that our operations or activities are not in compliance with existing laws or regulations could result in the imposition of fines, penalties, disgorgement, equitable relief, or other losses. We do not believe, however, that any fines, penalties, disgorgement, equitable relief or other losses would have a material adverse effect on our financial condition or liquidity. Indemnities We are indemnified by third parties in connection with certain matters related to acquired and divested businesses. Although we believe that the financial condition of those parties who may have indemnification obligations to the Company is generally sound, in the event the Company seeks indemnity under any of these agreements or through other means, there can be no assurance that any party who may have obligations to indemnify us will adhere to their obligations and we may have to resort to legal action to enforce our rights under the indemnities. The Company may be subject to indemnity claims relating to properties or businesses it divested, including properties or businesses of acquired businesses that were divested prior to the completion of the acquisition. In the opinion of management, and based upon information currently available, the ultimate resolution of any indemnification obligations owed to the Company or by the Company is not expected to have a material effect on the Company’s financial condition, results of operations or cash flows. The Company had approximately $27.1 million and $31.0 million at September 30, 2020 and December 31, 2019, respectively, recorded in Other noncurrent liabilities, related to the indemnification of certain income and non-income tax liabilities associated with the Chemetall Surface Treatment entities sold. Other We have contracts with certain of our customers, which serve as guarantees on product delivery and performance according to customer specifications that can cover both shipments on an individual basis as well as blanket coverage of multiple shipments under certain customer supply contracts. The financial coverage provided by these guarantees is typically based on a percentage of net sales value.
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Leases |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases: We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides details of our lease contracts for the three-month and nine-month periods ended September 30, 2020 and 2019 (in thousands):
Supplemental cash flow information related to our lease contracts for the nine-month periods ended September 30, 2020 and 2019 is as follows (in thousands):
Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at September 30, 2020 and December 31, 2019 is as follows (in thousands, except as noted):
(a) Balance includes accrued interest of finance lease. Maturities of lease liabilities as of September 30, 2020 were as follows (in thousands):
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Leases | Leases: We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides details of our lease contracts for the three-month and nine-month periods ended September 30, 2020 and 2019 (in thousands):
Supplemental cash flow information related to our lease contracts for the nine-month periods ended September 30, 2020 and 2019 is as follows (in thousands):
Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at September 30, 2020 and December 31, 2019 is as follows (in thousands, except as noted):
(a) Balance includes accrued interest of finance lease. Maturities of lease liabilities as of September 30, 2020 were as follows (in thousands):
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Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information: Our three reportable segments include: (1) Lithium; (2) Bromine Specialties; and (3) Catalysts. Each segment has a dedicated team of sales, research and development, process engineering, manufacturing and sourcing, and business strategy personnel and has full accountability for improving execution through greater asset and market focus, agility and responsiveness. This business structure aligns with the markets and customers we serve through each of the segments. This structure also facilitates the continued standardization of business processes across the organization, and is consistent with the manner in which information is presently used internally by the Company’s chief operating decision maker to evaluate performance and make resource allocation decisions. Summarized financial information concerning our reportable segments is shown in the following tables. The “All Other” category includes only the fine chemistry services business that does not fit into any of our core businesses. The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the operating segments. Pension and OPEB service cost (which represents the benefits earned by active employees during the period) and amortization of prior service cost or benefit are allocated to the reportable segments, All Other, and Corporate, whereas the remaining components of pension and OPEB benefits cost or credit (“Non-operating pension and OPEB items”) are included in Corporate. Segment data includes inter-segment transfers of raw materials at cost and allocations for certain corporate costs. The Company’s chief operating decision maker uses adjusted EBITDA (as defined below) to assess the ongoing performance of the Company’s business segments and to allocate resources. The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain non-recurring or unusual items in a balanced manner and on a segment basis. These non-recurring or unusual items may include acquisition and integration related costs, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, non-operating pension and OPEB items and other significant non-recurring items. In addition, management uses adjusted EBITDA for business planning purposes and as a significant component in the calculation of performance-based compensation for management and other employees. The Company has reported adjusted EBITDA because management believes it provides transparency to investors and enables period-to-period comparability of financial performance. Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, U.S. GAAP. Adjusted EBITDA should not be considered as an alternative to Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP, or any other financial measure reported in accordance with U.S. GAAP.
See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands):
(a)In 2020, we recorded severance expenses as part of business reorganization plans, impacting each of our businesses and Corporate, primarily in the U.S., Germany and with our Jordanian joint venture partner. During the three months ended September 30, 2020, we recorded severance expenses of $2.3 million in SG&A. During the nine months ended September 30, 2020, we recorded expenses of $0.7 million in Cost of goods sold, $10.4 million in SG&A and a $0.3 million gain in Net income attributable to noncontrolling interests for the portion of severance expense allocated to our Jordanian joint venture partner. The balance of unpaid severance is recorded in Accrued expenses and is expected to primarily be paid through 2021. During the nine months ended September 30, 2019, severance expenses of $5.3 million, respectively, were recorded in SG&A as part of a business reorganization plan primarily in Catalysts, Lithium and Corporate. (b)Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in SG&A. (c)Included amounts for the three months ended September 30, 2020 recorded in: ▪SG&A - $3.8 million of a net expense primarily relating to the increase of environmental reserves at non-operating businesses we have previously divested. ▪Other expenses, net - $0.2 million loss resulting from the settlement of a historical legal matter of an acquired company. Included amounts for the nine months ended September 30, 2020 recorded in: •SG&A - $3.8 million of a net expense primarily relating to the increase of environmental reserves at non-operating businesses we have previously divested. ▪Other expenses, net - $2.5 million net gain resulting from the settlement of legal matters related to a business sold or a site in the process of being sold, and $0.8 million net gain primarily relating to the sale of idle properties in Germany, partially offset by a $0.8 million loss resulting from the adjustment of indemnifications related to previously disposed businesses. (d) Included amounts for the three months ended September 30, 2019 recorded in: ▪Cost of goods sold - $0.1 million related to non-routine labor and compensation related costs in Chile that were outside normal compensation arrangements. ▪SG&A - $1.1 million of a write-off of uncollectable accounts receivable from a terminated distributor in the Bromine Specialties segment. ▪Other expenses, net - $3.1 million of unrecoverable vendor costs outside the operations of the business related to the construction of the future Kemerton production facility, as well as a net loss of $0.4 million primarily resulting from the settlement of legal matters related to previously disposed businesses or recorded in purchase accounting. Included amounts for the nine months ended September 30, 2019 recorded in: ▪Cost of goods sold - $0.6 million related to non-routine labor and compensation related costs in Chile that were outside normal compensation arrangements. ▪SG&A - $1.0 million of shortfall contributions for our multiemployer plan financial improvement plan and $1.1 million of a write-off of uncollectable accounts receivable from a terminated distributor in the Bromine Specialities segment. ▪Other expenses, net - $3.1 million of unrecoverable vendor costs outside the operations of the business related to the construction of the future Kemerton production facility, a net loss of $0.4 million primarily resulting from the settlement of legal matters related to previously disposed businesses or recorded in purchase accounting, and $0.9 million of a net loss primarily resulting from the revision of indemnifications and other liabilities related to previously disposed businesses. (e) Gain recorded in Other expenses, net related to the sale of land in Pasadena, Texas not used as part of our operations.
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Pension Plans and Other Postretirement Benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits: The components of pension and postretirement benefits cost (credit) for the three-month and nine-month periods ended September 30, 2020 and 2019 were as follows (in thousands):
All components of net benefit cost (credit), other than service cost, are included in Other expenses, net on the consolidated statements of income. During the three-month and nine-month periods ended September 30, 2020, we made contributions of $2.7 million and $7.9 million, respectively, to our qualified and nonqualified pension plans. During the three-month and nine-month periods ended September 30, 2019, we made contributions of $2.1 million and $8.6 million, respectively, to our qualified and nonqualified pension plans. We paid $0.9 million and $2.5 million in premiums to the U.S. postretirement benefit plan during the three-month and nine-month periods ended September 30, 2020, respectively. During the three-month and nine-month periods ended September 30, 2019, we paid $0.8 million and $2.1 million, respectively, in premiums to the U.S. postretirement benefit plan.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments: In assessing the fair value of financial instruments, we use methods and assumptions that are based on market conditions and other risk factors existing at the time of assessment. Fair value information for our financial instruments is as follows: Long-Term Debt—the fair values of our notes are estimated using Level 1 inputs and account for the difference between the recorded amount and fair value of our long-term debt. The carrying value of our remaining long-term debt reported in the accompanying condensed consolidated balance sheets approximates fair value as substantially all of such debt bears interest based on prevailing variable market rates currently available in the countries in which we have borrowings.
Foreign Currency Forward Contracts—During the fourth quarter of 2019, we entered into a foreign currency forward contract, with a notional value of 727.9 million Australian Dollars to hedge the cash flow exposure of non-functional currency purchases during the construction of the Kemerton plant in Australia. This derivative financial instrument is used to manage risk and is not used for trading or other speculative purposes. This foreign currency forward contract has been designated as a hedging instrument under ASC 815, Derivatives and Hedging. At September 30, 2020 and December 31, 2019, we had outstanding designated foreign currency forward contracts with notional values totaling the equivalent of $187.3 million and $481.2 million, respectively. We also enter into foreign currency forward contracts in connection with our risk management strategies that have not been designated as hedging instruments under ASC 815, Derivatives and Hedging, in an attempt to minimize the financial impact of changes in foreign currency exchange rates. These derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. The fair values of our non-designated foreign currency forward contracts are estimated based on current settlement values. At September 30, 2020 and December 31, 2019, we had outstanding non-designated foreign currency forward contracts with notional values totaling $658.1 million and $1.15 billion, respectively, hedging our exposure to various currencies including the Euro, Chinese Renminbi, Chilean Peso and Australian Dollar. The following table summarizes the fair value of our foreign currency forward contracts included in the condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019 (in thousands):
(a) Included $2.5 million in Other current assets and $0.3 million in Other assets at September 30, 2020 and $3.7 million in Other current assets and $1.7 million in Other assets at December 31, 2019. (b) Included $1.1 million in Other current assets and $1.8 million in Accrued expenses at September 30, 2020 and $2.0 million in Other current assets and $3.6 million in Accrued expenses at December 31, 2019. The following table summarizes the net gains (losses) recognized for our foreign currency forward contracts during the three-month and nine-month periods ended September 30, 2020 and 2019 (in thousands):
(a) Fluctuations in the value of our foreign currency forward contracts not designated as hedging instruments are generally expected to be offset by changes in the value of the underlying exposures being hedged, which are also reported in Other expenses, net. In addition, for the nine-month periods ended September 30, 2020 and 2019, we recorded net cash settlements of $15.7 million and $25.5 million, respectively, in Other, net, in our condensed consolidated statements of cash flows. As of September 30, 2020, there are no unrealized gains or losses related to the cash flow hedge expected to be reclassified to earnings in the next twelve months. The counterparties to our foreign currency forward contracts are major financial institutions with which we generally have other financial relationships. We are exposed to credit loss in the event of nonperformance by these counterparties. However, we do not anticipate nonperformance by the counterparties.
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Fair Value Measurement |
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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. The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 (in thousands):
(a)We maintain an Executive Deferred Compensation Plan (“EDCP”) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1. (b)Primarily consists of private equity securities classified as available-for-sale and are reported in Investments in the condensed consolidated balance sheets. The changes in fair value are reported in Other expenses, net, in our consolidated statements of income. (c)Holdings in certain private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. (d)As a result of our global operating and financing activities, we are exposed to market risks from changes in foreign currency exchange rates, which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from foreign currency exchange rate fluctuations through the use of foreign currency forward contracts. The foreign currency forward contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2. See Note 13, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts.
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Accumulated Other Comprehensive (Loss) Income |
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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):
(a)The pre-tax portion of amounts reclassified from accumulated other comprehensive loss consists of amortization of prior service benefit, which is a component of pension and postretirement benefits cost (credit). See Note 12, “Pension Plans and Other Postretirement Benefits,” for additional information. (b)We entered into a foreign currency forward contract, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging. See Note 13, “Fair Value of Financial Instruments,” for additional information. (c)The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense. The amount of income tax (expense) benefit allocated to each component of Other comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2020 and 2019 is provided in the following tables (in thousands):
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Related Party Transactions |
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Related Party Transactions | Related Party Transactions: Our consolidated statements of income include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands):
(a)Purchases from unconsolidated affiliates primarily relate to purchases from our Windfield joint venture. Our condensed consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands):
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Information | Supplemental Cash Flow Information: Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands):
As part of the purchase price paid for the acquisition of a 60% interest in MRL’s Wodgina Project, the Company transferred $131.9 million of its construction in progress of the designated Kemerton assets during the nine months ended September 30, 2020, representing MRL’s 40% interest in the assets. Since the acquisition, we have transferred $296.6 million of construction in progress to MRL through September 30, 2020. The cash outflow for these assets is recorded in Capital expenditures within Cash flows from investing activities on the condensed consolidated statements of cash flows. The Company expects to transfer a total of approximately $480 million over the construction of these assets, as defined in the purchase agreement. See Note 2, “Acquisitions,” for further details.
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Recently Issued Accounting Pronouncements |
9 Months Ended |
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Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (“FASB”) issued accounting guidance that, among other things, changes the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of the financial asset. Additional disclosures are required regarding an entity’s assumptions, models and methods for estimating the expected credit loss. This guidance became effective on January 1, 2020 and did not have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill 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 became effective on January 1, 2020 and did not have a significant impact on our financial statements.
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Recently Issued Accounting Pronouncements (Policies) |
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Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | In June 2016, the Financial Accounting Standards Board (“FASB”) issued accounting guidance that, among other things, changes the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of the financial asset. Additional disclosures are required regarding an entity’s assumptions, models and methods for estimating the expected credit loss. This guidance became effective on January 1, 2020 and did not have a significant impact on our financial statements. In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill 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 became effective on January 1, 2020 and did not have a significant impact on our financial statements.
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Acquisitions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mineral Resources Limited Wodgina Project | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions | The following table summarizes the consideration paid for the joint venture and the amounts of the assets acquired and liabilities assumed as of the acquisition date, which have been allocated on a preliminary basis (in thousands):
(a) Represents 60% ownership interest in finance lease acquired. See Note 10, “Leases,” for further information on the Company’s leases.
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Goodwill and Other Intangibles (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Goodwill | The following table summarizes the changes in goodwill by reportable segment for the nine months ended September 30, 2020 (in thousands):
(a) Represents preliminary purchase price adjustments for the Wodgina Project acquisition. See Note 2, “Acquisitions” for additional information.
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Other Intangibles | The following table summarizes the changes in other intangibles and related accumulated amortization for the nine months ended September 30, 2020 (in thousands):
(a) Net Book Value includes only indefinite-lived intangible assets.
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Basic and Diluted Earning Per Share | Basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2020 and 2019 are calculated as follows (in thousands, except per share amounts):
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Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown of Inventories | The following table provides a breakdown of inventories at September 30, 2020 and December 31, 2019 (in thousands):
(a)Included $124.3 million and $109.3 million at September 30, 2020 and December 31, 2019, respectively, of work in process in our Lithium segment.
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Long-Term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-term debt at September 30, 2020 and December 31, 2019 consisted of the following (in thousands):
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Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Recorded Environmental Liabilities | We had the following activity in our recorded environmental liabilities for the nine months ended September 30, 2020 (in thousands):
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The following table provides details of our lease contracts for the three-month and nine-month periods ended September 30, 2020 and 2019 (in thousands):
Supplemental cash flow information related to our lease contracts for the nine-month periods ended September 30, 2020 and 2019 is as follows (in thousands):
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Supplemental Balance Sheet Information related to Leases | Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at September 30, 2020 and December 31, 2019 is as follows (in thousands, except as noted):
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Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2020 were as follows (in thousands):
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Finance Lease, Liability, Maturity | Maturities of lease liabilities as of September 30, 2020 were as follows (in thousands):
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segments Summarized Financial Information |
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Pension Plans and Other Postretirement Benefits (Tables) |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Domestic and Foreign Pension and Postretirement Defined Benefit Plans | The components of pension and postretirement benefits cost (credit) for the three-month and nine-month periods ended September 30, 2020 and 2019 were as follows (in thousands):
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Fair Value of Financial Instruments (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Long-Term Debt | The carrying value of our remaining long-term debt reported in the accompanying condensed consolidated balance sheets approximates fair value as substantially all of such debt bears interest based on prevailing variable market rates currently available in the countries in which we have borrowings.
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair value of our foreign currency forward contracts included in the condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019 (in thousands):
(a) Included $2.5 million in Other current assets and $0.3 million in Other assets at September 30, 2020 and $3.7 million in Other current assets and $1.7 million in Other assets at December 31, 2019. (b) Included $1.1 million in Other current assets and $1.8 million in Accrued expenses at September 30, 2020 and $2.0 million in Other current assets and $3.6 million in Accrued expenses at December 31, 2019.
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Derivative Instruments, Losses | The following table summarizes the net gains (losses) recognized for our foreign currency forward contracts during the three-month and nine-month periods ended September 30, 2020 and 2019 (in thousands):
(a) Fluctuations in the value of our foreign currency forward contracts not designated as hedging instruments are generally expected to be offset by changes in the value of the underlying exposures being hedged, which are also reported in Other expenses, net.
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Fair Value Measurement (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 (in thousands):
(a)We maintain an Executive Deferred Compensation Plan (“EDCP”) that was adopted in 2001 and subsequently amended. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1. (b)Primarily consists of private equity securities classified as available-for-sale and are reported in Investments in the condensed consolidated balance sheets. The changes in fair value are reported in Other expenses, net, in our consolidated statements of income. (c)Holdings in certain private equity securities are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. (d)As a result of our global operating and financing activities, we are exposed to market risks from changes in foreign currency exchange rates, which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from foreign currency exchange rate fluctuations through the use of foreign currency forward contracts. The foreign currency forward contracts are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2. See Note 13, “Fair Value of Financial Instruments,” for further details about our foreign currency forward contracts.
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Accumulated Other Comprehensive (Loss) Income (Tables) |
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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):
(a)The pre-tax portion of amounts reclassified from accumulated other comprehensive loss consists of amortization of prior service benefit, which is a component of pension and postretirement benefits cost (credit). See Note 12, “Pension Plans and Other Postretirement Benefits,” for additional information. (b)We entered into a foreign currency forward contract, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging. See Note 13, “Fair Value of Financial Instruments,” for additional information. (c)The pre-tax portion of amounts reclassified from accumulated other comprehensive loss is included in interest expense.
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Amount of Income Tax (Expense) Benefit Allocated to Component Of Other Comprehensive Income (Loss) | The amount of income tax (expense) benefit allocated to each component of Other comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2020 and 2019 is provided in the following tables (in thousands):
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Related Party Transactions (Tables) |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | Our consolidated statements of income include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands):
(a)Purchases from unconsolidated affiliates primarily relate to purchases from our Windfield joint venture. Our condensed consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands):
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Supplemental Cash Flow Information (Tables) |
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Supplemental Cash Flow Information | Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands):
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Basis of Presentation (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of goods sold | $ 492,812 | $ 569,880 | $ 1,520,329 | $ 1,677,596 |
Income before income taxes and equity in net income of unconsolidated investments | $ 121,544 | 163,723 | $ 325,092 | $ 484,653 |
Out-of-period adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of goods sold | $ 7,000 |
Income Taxes (Details) |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Other Tax Expense (Benefit) [Line Items] | ||||
Effective income tax rate | 25.20% | 15.50% | 19.80% | 19.20% |
Earnings Per Share - Additional Information (Details) - $ / shares |
9 Months Ended | |||
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Sep. 30, 2020 |
Oct. 27, 2020 |
Jul. 14, 2020 |
Feb. 28, 2020 |
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Earnings Per Share Disclosure [Line Items] | ||||
Increase in dividend rate, percentage | 5.00% | |||
Cash dividend, amount per share (in dollars per share) | $ 0.385 | $ 0.385 | ||
Subsequent Event | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Cash dividend, amount per share (in dollars per share) | $ 0.385 | |||
Common Stock | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 45,706 |
Inventories - Breakdown of inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 525,071 | $ 495,639 |
Raw materials and work in process | 228,637 | 205,781 |
Stores, supplies and other | 74,372 | 67,564 |
Total inventories | $ 828,080 | $ 768,984 |
Inventories - Additional Information (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Lithium | ||
Inventory [Line Items] | ||
Work in process related to Lithium | $ 124.3 | $ 109.3 |
Investments (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Windfield Holdings | ||
Schedule of Investments [Line Items] | ||
Equity method investment, ownership percentage | 49.00% | |
Carrying value of unconsolidated investment | $ 428.4 | $ 397.2 |
Other variable interest entities | ||
Schedule of Investments [Line Items] | ||
Carrying value of unconsolidated investment | $ 7.1 | $ 7.6 |
Commitments and Contingencies - Activity in Recorded Environmental Liabilities (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
|
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 42,592 | |
Expenditures | (2,560) | |
Accretion of discount | 652 | |
Accrual for Environmental Loss Contingencies, Period Increase (Decrease) | 3,857 | |
Foreign currency translation adjustments and other | 805 | |
Balance at end of period | $ 42,592 | $ 45,346 |
Less amounts reported in Accrued expenses | 9,654 | |
Amounts reported in Other noncurrent liabilities | $ 35,692 |
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Loss Contingencies [Line Items] | ||
Environmental remediation liabilities - discounted | $ 38.7 | $ 35.6 |
Accrual for environmental loss contingencies - weighted-average discount rate | 3.50% | 3.70% |
Environmental remediation liabilities - undiscounted | $ 72.9 | $ 69.2 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Potential revision on future environmental remediation costs before tax | 10.0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Potential revision on future environmental remediation costs before tax | 30.0 | |
Other noncurrent liabilities | ||
Loss Contingencies [Line Items] | ||
Tax Indemnification Liability | $ 27.1 | $ 31.0 |
Leases - Additional Information (Details) |
Sep. 30, 2020 |
---|---|
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 50 years |
Real estate | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 1 year |
Real estate | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 30 years |
Non-real estate | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 2 years |
Non-real estate | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term of contract | 15 years |
Leases - Leases Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 8,085 | $ 7,939 | $ 25,298 | $ 25,741 |
Amortization of right of use assets | 126 | 157 | 433 | 471 |
Interest on lease liabilities | 697 | 31 | 1,977 | 96 |
Total finance lease cost | 823 | 188 | 2,410 | 567 |
Short-term lease cost | 3,427 | 2,587 | 9,824 | 6,422 |
Variable lease cost | 2,312 | 1,541 | 6,344 | 4,059 |
Total lease cost | $ 14,647 | $ 12,255 | $ 43,876 | $ 36,789 |
Leases - Leases Cash Flow (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 28,074 | $ 22,486 |
Operating cash flows from finance leases | 1,156 | 96 |
Financing cash flows from finance leases | 513 | 509 |
Right-of-use asset obtained in exchange for operating leases | $ 19,743 | $ 21,578 |
Leases - Leases Balance Sheet (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Leases [Abstract] | ||
Other assets | $ 132,777 | $ 133,864 |
Accrued expenses | 18,013 | 23,137 |
Other noncurrent liabilities | 116,394 | 114,686 |
Total operating lease liabilities | 134,407 | 137,823 |
Net property, plant and equipment | 58,962 | 59,494 |
Current portion of long-term debt(a) | 1,412 | 636 |
Long-term debt | 58,576 | 58,888 |
Total finance lease liabilities | $ 59,988 | $ 59,524 |
Weighted average remaining lease term, operating leases | 16 years 4 months 24 days | 11 years 4 months 24 days |
Weighted average remaining lease term, finance leases | 27 years 8 months 12 days | 28 years 3 months 18 days |
Weighted average discount rate, operating leases, percent | 4.06% | 3.84% |
Weighted average discount rate, finance leases, percent | 4.56% | 4.56% |
Leases - Leases Maturity Table (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Operating Leases | ||
Remainder of 2020 | $ 7,414 | |
2021 | 19,663 | |
2022 | 15,477 | |
2023 | 13,708 | |
2024 | 12,369 | |
Thereafter | 149,025 | |
Total lease payments | 217,656 | |
Less imputed interest | 83,249 | |
Total operating lease liabilities | 134,407 | $ 137,823 |
Finance Leases | ||
Remainder of 2020 | 541 | |
2021 | 2,165 | |
2022 | 4,444 | |
2023 | 4,444 | |
2024 | 4,444 | |
Thereafter | 94,361 | |
Total lease payments | 110,399 | |
Less imputed interest | 50,411 | |
Total finance lease liabilities | $ 59,988 | $ 59,524 |
Segment Information - Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Pension Plans and Other Postretirement Benefits - Domestic and Foreign Pension and Postretirement Defined Benefit Plans (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Total net pension and postretirement benefits (credit) cost | $ (1,663) | $ 586 | $ (4,975) | $ 1,641 |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1,202 | 1,118 | 3,623 | 3,371 |
Interest cost | 6,696 | 8,314 | 20,049 | 24,854 |
Expected return on assets | (10,065) | (9,414) | (30,156) | (28,311) |
Amortization of prior service benefit | 9 | (5) | 27 | 7 |
Total net pension and postretirement benefits (credit) cost | (2,158) | 13 | (6,457) | (79) |
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 27 | 24 | 79 | 73 |
Interest cost | 468 | 549 | 1,403 | 1,647 |
Total net pension and postretirement benefits (credit) cost | $ 495 | $ 573 | $ 1,482 | $ 1,720 |
Pension Plans and Other Postretirement Benefits - Pension and Postretirement Plan Contributions (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Retirement Benefits [Abstract] | ||||
Employer contributions | $ 2.7 | $ 2.1 | $ 7.9 | $ 8.6 |
Payment for other postretirement benefits | $ 0.9 | $ 0.8 | $ 2.5 | $ 2.1 |
Fair Value of Financial Instruments - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Total long-term debt, excluding debt issuance costs | $ 3,560,816 | $ 3,069,417 |
Total long-term debt, fair value, excluding debt issuance costs | $ 3,649,323 | $ 3,173,341 |
Related Party Transactions (Details) - Unconsolidated Affiliates - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Related Party Transaction [Line Items] | |||||
Sales to unconsolidated affiliates | $ 4,863 | $ 4,465 | $ 17,361 | $ 14,128 | |
Purchases from unconsolidated affiliates | 10,742 | $ 41,304 | 142,366 | $ 160,420 | |
Receivables from unconsolidated affiliates | 2,765 | 2,765 | $ 7,163 | ||
Payables to unconsolidated affiliates | $ 7,263 | $ 7,263 | $ 35,502 |
Supplemental Cash Flow Information - Schedule of supplemental information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Supplemental Cash Flow Information [Abstract] | ||
Capital expenditures included in Accounts payable | $ 167,393 | $ 174,510 |
Supplemental Cash Flow Information - Additional Information (Details) - USD ($) $ in Thousands |
8 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 31, 2019 |
Jun. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Cash Flow Supplemental Disclosures [Line Items] | ||||
Capital expenditures | $ 621,371 | $ 608,456 | ||
Tax Cuts Jobs Act Of 2017, Transition Tax For Accumulated Foreign Earnings, Liability, Current | 30,400 | $ 14,400 | ||
Mineral Resources Limited Wodgina Project | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Ownership percentage | 60.00% | |||
Consideration transferred | $ 1,300,000 | 1,322,566 | ||
Lithium Hydroxide Conversion Assets | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Ownership percentage | 40.00% | |||
Lithium Hydroxide Conversion Assets | Mineral Resources Limited Wodgina Project | ||||
Cash Flow Supplemental Disclosures [Line Items] | ||||
Capital expenditures | $ 296,600 | 131,900 | ||
Consideration transferred | $ 480,000 |
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