v3.22.4
Segment and Geographic Area Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment and Geographic Area Information Segment and Geographic Area Information:During 2022, the Company’s three reportable segments included: (1) Lithium; (2) Bromine; and (3) Catalysts. Each segment had a dedicated team of sales, research and development, process engineering, manufacturing and sourcing, and business strategy personnel and had full accountability for improving execution through greater asset and market focus, agility and responsiveness. This business structure aligned with the markets and customers we serve through each of the segments. This structure also facilitated the continued standardization of business processes across the organization, and was 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 included only the FCS business that did not fit into any of the Company’s core businesses. On June 1, 2021, the Company completed the sale of the FCS business. See Note 3, “Divestitures,” for additional information. Amounts in the “All Other” category represent activity in this business until divested on June 1, 2021.
The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the operating segments. Pension and other post-employment benefit (“OPEB”) service cost (which represents the benefits earned by active employees during the period) and amortization of prior service cost or benefit are allocated to the reportable segments, 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 and financing expenses, income tax expenses, depreciation and amortization, as adjusted on a consistent basis for certain non-operating, non-recurring or unusual items in a balanced manner and on a segment basis. These non-operating, non-recurring or unusual items may include acquisition and integration related costs, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, certain litigation and arbitration costs and charges, non-operating pension and OPEB items and other significant non-recurring items. In addition, management uses adjusted EBITDA for business and enterprise planning purposes and as a significant component in the calculation of performance-based compensation for management and other employees. The Company has reported adjusted EBITDA because management believes it provides transparency to investors and enables period-to-period comparability of financial performance. Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, U.S. GAAP. Adjusted EBITDA should not be considered as an alternative to Net income (loss) attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP, or any other financial measure reported in accordance with U.S. GAAP.
Year Ended December 31,
202220212020
(In thousands)
Net sales:
Lithium$5,008,850 $1,363,284 $1,144,778 
Bromine1,411,682 1,128,343 964,962 
Catalysts899,572 761,235 797,914 
All Other— 75,095 221,255 
Total net sales$7,320,104 $3,327,957 $3,128,909 
Adjusted EBITDA:
Lithium$3,102,662 $479,538 $393,093 
Bromine456,916 360,682 323,605 
Catalysts28,732 106,941 130,134 
All Other— 29,858 84,821 
Corporate(112,453)(106,045)(112,915)
Total adjusted EBITDA$3,475,857 $870,974 $818,738 
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):
LithiumBromineCatalystsAll OtherCorporateConsolidated Total
2022
Net income (loss) attributable to Albemarle Corporation$2,903,076 $402,820 $(27,104)$— $(588,976)$2,689,816 
Depreciation and amortization189,347 54,096 51,417 — 5,981 300,841 
Loss on sale of interest in properties(a)
8,400 — — — — 8,400 
Acquisition and integration related costs(b)
— — — — 16,259 16,259 
Interest and financing expenses(c)
— — — — 122,973 122,973 
Income tax expense— — — — 390,588 390,588 
Non-operating pension and OPEB items— — — — (57,032)(57,032)
Other(d)
1,839 — 4,419 — (2,246)4,012 
Adjusted EBITDA$3,102,662 $456,916 $28,732 $— $(112,453)$3,475,857 
2021
Net income (loss) attributable to Albemarle Corporation$192,244 $309,501 $55,353 $27,988 $(461,414)$123,672 
Depreciation and amortization138,772 51,181 51,588 1,870 10,589 254,000 
Restructuring and other(e)
— — — — 3,027 3,027 
Loss (gain) on sale of business/interest in properties, net(f)
132,400 — — — (428,371)(295,971)
Acquisition and integration related costs(b)
— — — — 12,670 12,670 
Interest and financing expenses(c)
— — — — 61,476 61,476 
Income tax expense— — — — 29,446 29,446 
Non-operating pension and OPEB items— — — — (78,814)(78,814)
Legal accrual(g)
— — — — 657,412 657,412 
Albemarle Foundation contribution(h)
— — — — 20,000 20,000 
Indemnification adjustments(i)
— — — — 39,381 39,381 
Other(j)
16,122 — — — 28,553 44,675 
Adjusted EBITDA$479,538 $360,682 $106,941 $29,858 $(106,045)$870,974 
2020
Net income (loss) attributable to Albemarle Corporation$277,711 $274,495 $80,149 $76,323 $(332,914)$375,764 
Depreciation and amortization112,854 50,310 49,985 8,498 10,337 231,984 
Restructuring and other(e)
— — — — 19,597 19,597 
Acquisition and integration related costs(b)
— — — — 17,263 17,263 
Interest and financing expenses— — — — 73,116 73,116 
Income tax expense— — — — 54,425 54,425 
Non-operating pension and OPEB items— — — — 40,668 40,668 
Other(k)
2,528 (1,200)— — 4,593 5,921 
Adjusted EBITDA$393,093 $323,605 $130,134 $84,821 $(112,915)$818,738 
(a)Expense recorded as a result of revised estimates of the obligation to construct certain lithium hydroxide conversion assets in Kemerton, Western Australia, due to cost overruns from supply chain, labor and COVID-19 pandemic related issues. The corresponding obligation was recorded in Accrued liabilities to be transferred to Mineral Resources Limited (“MRL”), which maintains a 40% ownership interest in these Kemerton assets.
(b)See Note 2, “Acquisitions,” for additional information.
(c)Included in Interest and financing expenses is a loss on early extinguishment of debt of $19.2 million and $29.0 million for the years ended December 31, 2022 and 2021, respectively. See Note 14, “Long-term Debt,” for additional information. In addition, Interest and financing expenses for the year ended December 31, 2022 includes the correction of an out of period error of $17.5 million related to the overstatement of capitalized interest in prior periods. See Note 1, “Summary of Significant Accounting Policies,” for further details.
(d)Included amounts for the year ended December 31, 2022 recorded in:
•Cost of goods sold - $2.7 million of expense related to one-time retention payments for certain employees during the Catalysts strategic review and business unit realignment, and $0.5 million related to the settlement of a legal matter resulting from a prior acquisition.
•SG&A - $4.3 million primarily related to facility closure expenses of offices in Germany, $2.8 million of charges for environmental reserves at sites not part of our operations, $2.8 million of shortfall contributions for our multiemployer plan financial improvement plan, $1.9 million of expense related to one-time retention payments for certain employees during the Catalysts strategic review, partially offset by $4.3 million of gains from the sale of legacy properties not part of our operations.
•Other income (expenses), net - $4.3 million net gain related to the fair value adjustment of equity securities in a public company, a $3.0 million gain from the reversal of a liability related to a previous divestiture, a $2.0 million gain relating to the adjustment of an environmental reserve at non-operating businesses we previously divested and a $0.6 million gain related to a settlement received from a legal matter in a prior period, partially offset by a $3.2 million loss resulting from the adjustment of indemnification related to previously disposed businesses.
(e)In 2021, we recorded facility closure related to offices in Germany, and severance expenses in Germany and Belgium, in SG&A. During the year ended December 31, 2020, we recorded severance expenses as part of business reorganization plans, impacting each of our businesses and Corporate, primarily in the U.S., Belgium, Germany and with our Jordanian joint venture partner. We recorded expenses of $0.7 million in Cost of goods sold, $19.2 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.
(f)Includes a $428.4 million gain related to the FCS divestiture recorded during the year ended December 31, 2021. See Note 3, “Divestitures,” for additional information on this gain. In addition, includes a $132.4 million expense related to anticipated cost overruns for MRL’s 40% interest in lithium hydroxide conversion assets being built in Kemerton. See Note 2, “Acquisitions,” for additional information.
(g)Loss recorded in Other income (expenses), net for the year ended December 31, 2021 related to the settlement of an arbitration ruling for a prior legal matter. See Note 17, “Commitments and Contingencies,” for further details.
(h)Included in SG&A is a charitable contribution, using a portion of the proceeds received from the FCS divestiture, to the Albemarle Foundation, a non-profit organization that sponsors grants, health and social projects, educational initiatives, disaster relief, matching gift programs, scholarships and other charitable initiatives in locations where the Company’s employees live and the Company operates. This contribution is in addition to the normal annual contribution made to the Albemarle Foundation by the Company, and is significant in size and nature in that it is intended to provide more long-term benefits in these communities.
(i)Included in Other income (expenses), net to revise an indemnification estimate for an ongoing tax-related matter of a previously disposed business in Germany. A corresponding discrete tax benefit of $27.9 million was recorded in Income tax expense during the same period, netting to an expected cash obligation of approximately $11.5 million.
(j)Included amounts for the year ended December 31, 2021 recorded in:
•Cost of goods sold - $10.5 million of expense related to a legal matter as part of a prior acquisition in our Lithium business.
•SG&A - $11.5 million of legal fees related to a legacy Rockwood legal matter noted above, $9.8 million of expenses primarily related to non-routine labor and compensation related costs that are outside normal compensation arrangements, a $4.0 million loss resulting from the sale of property, plant and equipment and $3.8 million of charges for environmental reserves at a sites not part of our operations.
•Other income (expenses), net - $4.8 million of net expenses primarily related to asset retirement obligation charges to update of an estimate at a site formerly owned by Albemarle.
(k)Included amounts for the year ended December 31, 2020 recorded in:
•Cost of goods sold - $1.3 million of expense related to a legal matter as part of a prior acquisition in our Lithium business.
•SG&A - $3.1 million of shortfall contributions for our multiemployer plan financial improvement plan and $3.8 million of a net expense primarily relating to the increase of environmental reserves at non-operating businesses we have previously divested.
•Other income (expenses), net - $7.2 million gain related to the sale of our ownership percentage in the SOCC joint venture, $3.6 million of a net gain primarily relating to the sale of intangible assets in our Bromine business and property in Germany not used as part of our operations and a $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, partially offset by $9.6 million of losses resulting from the adjustment of indemnifications related to previously disposed businesses and $1.2 million of expenses related to other costs outside of our regular operations.

December 31,
202220212020
(In thousands)
Identifiable assets:
Lithium(a)
$10,795,997 $7,676,259 $7,134,229 
Bromine1,072,535 939,808 867,648 
Catalysts1,214,482 1,149,592 1,066,089 
All Other— — 136,659 
Corporate2,373,508 1,208,459 1,246,321 
Total identifiable assets$15,456,522 $10,974,118 $10,450,946 
(a)Increase in Lithium identifiable assets each year primarily due to capital expenditures for growth and capacity increases, and the impact of increased lithium pricing on working capital balances.
Year Ended December 31,
202220212020
(In thousands)
Depreciation and amortization:
Lithium$189,347 $138,772 $112,854 
Bromine54,096 51,181 50,310 
Catalysts51,417 51,588 49,985 
All Other— 1,870 8,498 
Corporate5,981 10,589 10,337 
Total depreciation and amortization$300,841 $254,000 $231,984 
Capital expenditures:
Lithium$1,010,661 $813,128 $720,563 
Bromine153,407 70,711 57,486 
Catalysts66,319 49,312 44,448 
All Other— 2,339 6,792 
Corporate31,259 18,177 21,188 
Total capital expenditures$1,261,646 $953,667 $850,477 

Year Ended December 31,
202220212020
(In thousands)
Net Sales(a):
United States$888,612 $730,738 $743,834 
Foreign(b)
6,431,492 2,597,219 2,385,075 
Total$7,320,104 $3,327,957 $3,128,909 
(a)Net sales are attributed to countries based upon shipments to final destination.
(b)In 2022, net sales to China, South Korea and Japan represented 33%, 22% and 15%, respectively, of total net sales. In 2021, net sales to China, Japan and South Korea represented 18%, 14% and 11%, respectively, of total net sales. In 2020, net sales to South Korea, China and Japan represented 14%, 14%, and 13%, respectively, of total net sales.
During 2022, the only customer that represented more than 10% of the Company’s consolidated net sales was Umicore N.V. and its affiliates.
As of December 31,
202220212020
(In thousands)
Long-Lived Assets(a):
United States$1,371,347 $1,040,252 $1,007,793 
Australia3,253,069 2,736,590 2,362,377 
Chile2,057,270 1,923,821 1,814,658 
China438,090 139,537 122,749 
Jordan267,612 262,392 256,640 
Netherlands167,264 177,405 181,206 
Germany77,845 80,956 90,174 
France52,894 49,740 45,505 
Brazil31,855 29,474 24,393 
Other foreign countries77,747 62,667 66,273 
Total$7,794,993 $6,502,834 $5,971,768 
(a)    Long-lived assets are comprised of the Company’s Property, plant and equipment and joint ventures included in Investments.