Summarized Financial Information by Reportable Segments | | | | | | | | | | | | | | | Year Ended December 31, | | 2016 | | 2015 | | 2014 | | (In thousands) | Net sales: | | | | | | Lithium and Advanced Materials | $ | 968,216 |
| | $ | 834,590 |
| | $ | 312,788 |
| Bromine Specialties | 792,425 |
| | 775,729 |
| | 808,857 |
| Refining Solutions | 732,137 |
| | 729,261 |
| | 852,139 |
| All Other | 180,988 |
| | 471,434 |
| | 471,764 |
| Corporate | 3,437 |
| | 15,415 |
| | — |
| Total net sales | $ | 2,677,203 |
| | $ | 2,826,429 |
| | $ | 2,445,548 |
| | | | | | | Adjusted EBITDA: | | | | | | Lithium and Advanced Materials | $ | 363,360 |
| | $ | 312,867 |
| | $ | 81,596 |
| Bromine Specialties | 226,926 |
| | 222,653 |
| | 224,976 |
| Refining Solutions | 238,963 |
| | 197,595 |
| | 256,485 |
| All Other | 14,772 |
| | 53,993 |
| | 73,973 |
| Corporate | (85,804 | ) | | (31,108 | ) | | (74,875 | ) | Total adjusted EBITDA | $ | 758,217 |
| | $ | 756,000 |
| | $ | 562,155 |
|
See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, to Net income (loss) attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Lithium and Advanced Materials | | Bromine Specialties | | Refining Solutions | | Reportable Segments Total | | All Other | | Corporate | | Consolidated Total | 2016 | | | | | | | | | | | | | | Net income (loss) attributable to Albemarle Corporation | $ | 261,394 |
| | $ | 187,364 |
| | $ | 202,874 |
| | $ | 651,632 |
| | $ | 131,301 |
| | $ | (139,258 | ) | | $ | 643,675 |
| Depreciation and amortization | 101,966 |
| | 39,562 |
| | 36,089 |
| | 177,617 |
| | 7,302 |
| | 6,056 |
| | 190,975 |
| (Gain) loss on sales of businesses, net(a) | — |
| | — |
| | — |
| | — |
| | (123,831 | ) | | 1,533 |
| | (122,298 | ) | Acquisition and integration related costs(b) | — |
| | — |
| | — |
| | — |
| | — |
| | 57,384 |
| | 57,384 |
| Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 65,181 |
| | 65,181 |
| Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 96,263 |
| | 96,263 |
| Income from discontinued operations (net of tax) | — |
| | — |
| | — |
| | — |
| | — |
| | (202,131 | ) | | (202,131 | ) | Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | 25,589 |
| | 25,589 |
| Other(c) | — |
| | — |
| | — |
| | — |
| | — |
| | 3,579 |
| | 3,579 |
| Adjusted EBITDA | $ | 363,360 |
| | $ | 226,926 |
| | $ | 238,963 |
| | $ | 829,249 |
| | $ | 14,772 |
| | $ | (85,804 | ) | | $ | 758,217 |
| 2015 | | | | | | | | | | | | | | Net income (loss) attributable to Albemarle Corporation | $ | 148,821 |
| | $ | 186,474 |
| | $ | 161,585 |
| | $ | 496,880 |
| | $ | 32,781 |
| | $ | (194,755 | ) | | $ | 334,906 |
| Depreciation and amortization | 84,069 |
| | 36,179 |
| | 34,039 |
| | 154,287 |
| | 18,183 |
| | 8,703 |
| | 181,173 |
| Utilization of inventory markup(d) | 79,977 |
| | — |
| | — |
| | 79,977 |
| | 3,029 |
| | — |
| | 83,006 |
| Restructuring and other, net(e) | — |
| | — |
| | — |
| | — |
| | — |
| | (6,804 | ) | | (6,804 | ) | Acquisition and integration related costs(b) | — |
| | — |
| | — |
| | — |
| | — |
| | 132,299 |
| | 132,299 |
| Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 81,650 |
| | 81,650 |
| Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 11,134 |
| | 11,134 |
| Income from discontinued operations (net of tax) | — |
| | — |
| | — |
| | — |
| | — |
| | (32,476 | ) | | (32,476 | ) | Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | (35,300 | ) | | (35,300 | ) | Other(f) | — |
| | — |
| | 1,971 |
| | 1,971 |
| | — |
| | 4,441 |
| | 6,412 |
| Adjusted EBITDA | $ | 312,867 |
| | $ | 222,653 |
| | $ | 197,595 |
| | $ | 733,115 |
| | $ | 53,993 |
| | $ | (31,108 | ) | | $ | 756,000 |
| 2014 | | | | | | | | | | | | | | Net income (loss) attributable to Albemarle Corporation | $ | 65,806 |
| | $ | 189,059 |
| | $ | 223,815 |
| | $ | 478,680 |
| | $ | 60,495 |
| | $ | (405,859 | ) | | $ | 133,316 |
| Depreciation and amortization | 15,790 |
| | 35,917 |
| | 32,670 |
| | 84,377 |
| | 13,478 |
| | 2,552 |
| | 100,407 |
| Restructuring and other, net(e) | — |
| | — |
| | — |
| | — |
| | — |
| | 25,947 |
| | 25,947 |
| Acquisition and integration related costs(b) | — |
| | — |
| | — |
| | — |
| | — |
| | 30,158 |
| | 30,158 |
| Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 41,358 |
| | 41,358 |
| Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 18,484 |
| | 18,484 |
| Loss from discontinued operations (net of tax) | — |
| | — |
| | — |
| | — |
| | — |
| | 69,531 |
| | 69,531 |
| Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | 125,462 |
| | 125,462 |
| Other(f) | — |
| | — |
| | — |
| | — |
| | — |
| | 17,492 |
| | 17,492 |
| Adjusted EBITDA | $ | 81,596 |
| | $ | 224,976 |
| | $ | 256,485 |
| | $ | 563,057 |
| | $ | 73,973 |
| | $ | (74,875 | ) | | $ | 562,155 |
|
| | (a) | See Note 3, “Divestitures,” for additional information. |
| | (b) | See Note 2, “Acquisitions,” for additional information. |
| | (c) | Includes amounts recorded in (1) Research and development expenses related to the write-off of fixed assets of $1.4 million; (2) Selling, general and administrative expenses related to the net loss on the sales of properties of $0.9 million and (3) Other income (expenses), net related to environmental charges related to a site formerly owned by Albemarle of $2.4 million, partially offset by a gain related to a previously disposed of site in China of $1.1 million. |
| | (d) | In connection with the acquisition of Rockwood, the Company valued Rockwood’s existing inventory at fair value as of the Acquisition Closing Date, which resulted in a markup of the underlying net book value of the inventory totaling approximately $103.4 million. The inventory markup was expensed over the estimated remaining selling period. For the year ended December 31, 2015, $55.9 million was included in Cost of goods sold, and Equity in net income of unconsolidated investments was reduced by $27.1 million related to the utilization of the inventory markup. |
| | (e) | See Note 21, “Restructuring and Other,” for additional information. |
| | (f) | For the year ended December 31, 2015, Refining Solutions includes an impairment charge of approximately $2.0 million related to our unconsolidated investment in Fábrica Carioca de Catalisadores SA. For the years ended December 31, 2015 and 2014, Corporate includes approximately $4.4 million and $17.5 million, respectively, of financing-related fees expensed in connection with the acquisition of Rockwood. |
| | | | | | | | | | | | | | As of December 31, | | 2016 | | 2015 | | 2014 | | | | (In thousands) | | | Identifiable assets: | | | | | | Lithium and Advanced Materials | $ | 3,809,883 |
| | $ | 3,658,669 |
| | $ | 351,175 |
| Bromine Specialties | 724,218 |
| | 699,929 |
| | 734,071 |
| Refining Solutions | 913,923 |
| | 937,445 |
| | 1,100,361 |
| Discontinued Operations | — |
| | 3,208,902 |
| | — |
| All Other | 130,595 |
| | 517,695 |
| | 268,555 |
| Corporate(a) | 2,582,588 |
| | 575,314 |
| | 2,748,275 |
| Total identifiable assets | $ | 8,161,207 |
| | $ | 9,597,954 |
| | $ | 5,202,437 |
| Goodwill: | | | | | | Lithium and Advanced Materials | $ | 1,348,261 |
| | $ | 1,267,505 |
| | $ | 21,697 |
| Bromine Specialties | 20,319 |
| | 20,319 |
| | 20,319 |
| Refining Solutions | 164,866 |
| | 172,728 |
| | 192,657 |
| All Other | 6,586 |
| | — |
| | 8,589 |
| Total goodwill | $ | 1,540,032 |
| | $ | 1,460,552 |
| | $ | 243,262 |
|
| | (a) | As of December 31, 2016, Corporate included the net proceeds received from the sale of the Chemetall Surface Treatment business completed on December 14, 2016, less the repayment of the term loans and commercial paper using those proceeds. As of December 31, 2014, Corporate included net proceeds received from the issuance of the 2014 Senior Notes, which, together with borrowings from our Commercial Paper Notes, August 2014 Term Loan Agreement and Cash Bridge Facility, were used to finance the cash portion of the Merger Consideration, pay related fees and expenses and repay our senior notes which matured on February 1, 2015. See Note 2, “Acquisitions,” Note 3, “Divestitures,” and Note 14, “Long-Term Debt” for additional details about these transactions. |
| | | | | | | | | | | | | | Year Ended December 31, | | 2016 | | 2015 | | 2014 | | | | (In thousands) | | | Depreciation and amortization: | | | | | | Lithium and Advanced Materials | $ | 101,966 |
| | $ | 84,069 |
| | $ | 15,790 |
| Bromine Specialties | 39,562 |
| | 36,179 |
| | 35,917 |
| Refining Solutions | 36,089 |
| | 34,039 |
| | 32,670 |
| Discontinued Operations | 35,194 |
| | 78,903 |
| | 3,165 |
| All Other | 7,302 |
| | 18,183 |
| | 13,478 |
| Corporate | 6,056 |
| | 8,703 |
| | 2,552 |
| Total depreciation and amortization | $ | 226,169 |
| | $ | 260,076 |
| | $ | 103,572 |
| Capital expenditures: | | | | | | Lithium and Advanced Materials | $ | 91,967 |
| | $ | 104,344 |
| | $ | 12,888 |
| Bromine Specialties | 46,414 |
| | 54,994 |
| | 39,392 |
| Refining Solutions | 27,546 |
| | 28,836 |
| | 49,219 |
| Discontinued Operations | 19,281 |
| | 23,738 |
| | — |
| All Other | 9,251 |
| | 13,054 |
| | 9,053 |
| Corporate | 2,195 |
| | 2,683 |
| | 24 |
| Total capital expenditures | $ | 196,654 |
| | $ | 227,649 |
| | $ | 110,576 |
|
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