Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Albemarle Corp., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Federal	33,230)	11,722)	(140)	21,258)	(2,712)
State	4,965)	694)	(193)	5,453)	6,793)
Foreign	259,054)	55,530)	56,734)	47,056)	91,581)
Current income tax expense	297,249)	67,946)	56,401)	73,767)	95,662)
Federal	84,054)	(38,413)	4,564)	13,255)	15,573)
State	(3,511)	(5,544)	(2,893)	(7,369)	1,614)
Foreign	12,796)	5,457)	(3,647)	8,508)	31,977)
Deferred income tax expense (benefit)	93,339)	(38,500)	(1,976)	14,394)	49,164)
Income tax expense	390,588)	29,446)	54,425)	88,161)	144,826)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Current income tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Albemarle Corp. current income tax expense increased from 2020 to 2021 and from 2021 to 2022.
Deferred income tax expense (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Albemarle Corp. deferred income tax expense (benefit) decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Albemarle Corp. income tax expense decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Albemarle Corp., effective income tax rate (EITR) reconciliation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
U.S. federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State taxes, net of federal tax benefit	0.00%	-3.50%	0.30%	-0.50%	0.90%
Change in valuation allowance	-3.90%	33.70%	1.90%	1.90%	0.70%
Impact of foreign earnings, net	-0.10%	-40.50%	-8.40%	-3.70%	-0.30%
Global intangible low tax inclusion	0.30%	12.30%	1.90%	1.80%	0.80%
Foreign-derived intangible income	-3.00%	0.00%	0.00%	0.00%	0.00%
Change in U.S. federal statutory rate	0.00%	0.00%	0.00%	0.00%	0.10%
Transition tax on deferred foreign earnings	0.00%	0.00%	0.00%	0.00%	-5.30%
Section 162(m) limitation	0.30%	4.50%	0.50%	0.30%	0.00%
Subpart F income	0.20%	4.80%	1.30%	0.60%	0.90%
Stock-based compensation	-0.30%	-7.20%	-1.00%	-0.60%	-0.70%
Depletion	-0.20%	-2.90%	-0.90%	-0.70%	-0.60%
U.S. federal return to provision	-0.40%	-1.70%	-0.90%	-0.40%	0.00%
Revaluation of unrecognized tax benefits/reserve requirements	2.30%	3.00%	-0.40%	-2.70%	0.00%
Other items, net	-0.10%	-1.50%	-0.70%	-1.30%	0.70%
Effective income tax rate	16.10%	22.00%	14.60%	15.70%	18.20%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Albemarle Corp. effective income tax rate increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Albemarle Corp., components of deferred tax assets and liabilities

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accrued employee benefits	20,060)	18,374)	21,878)	17,462)	18,462)
Operating loss carryovers	1,157,841)	1,295,925)	1,321,942)	1,134,410)	1,210,377)
Pensions	26,229)	48,720)	78,683)	64,230)	61,308)
Tax credit carryovers	3,750)	2,448)	1,582)	1,497)	1,270)
Other	122,333)	212,882)	57,370)	64,955)	35,895)
Gross deferred tax assets	1,330,213)	1,578,349)	1,481,455)	1,282,554)	1,327,312)
Valuation allowance	(1,087,505)	(1,276,305)	(1,326,204)	(1,148,268)	(1,213,750)
Deferred tax assets	242,708)	302,044)	155,251)	134,286)	113,562)
Depreciation	(446,942)	(411,336)	(348,700)	(349,264)	(337,503)
Intangibles	(84,690)	(83,182)	(91,645)	(88,934)	(88,871)
Hedge of net investment of foreign subsidiary	—)	—)	(13,514)	(23,498)	(21,854)
Other	(145,412)	(142,008)	(75,927)	(55,173)	(31,287)
Deferred tax liabilities	(677,044)	(636,526)	(529,786)	(516,869)	(479,515)
Net deferred tax assets (liabilities)	(434,336)	(334,482)	(374,535)	(382,583)	(365,953)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Albemarle Corp. gross deferred tax assets increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Albemarle Corp. deferred tax assets increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Albemarle Corp. net deferred tax assets (liabilities) increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Albemarle Corp., deferred tax assets and liabilities, classification

US$ in thousands

		Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
	Noncurrent deferred tax assets	46,434)	18,797)	20,317)	15,275)	17,029)
	Noncurrent deferred tax liabilities	480,770)	353,279)	394,852)	397,858)	382,982)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
Noncurrent deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Albemarle Corp. noncurrent deferred tax assets decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Noncurrent deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Albemarle Corp. noncurrent deferred tax liabilities decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Albemarle Corp., adjustments to financial statements

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	15,456,522)	10,974,118)	10,450,946)	9,860,863)	7,581,674)
Less: Noncurrent deferred tax assets, net	46,434)	18,797)	20,317)	15,275)	17,029)
Total assets (adjusted)	15,410,088)	10,955,321)	10,430,629)	9,845,588)	7,564,645)
Adjustment to Total Liabilities
Total liabilities (as reported)	7,265,675)	5,168,511)	5,982,352)	5,767,283)	3,822,566)
Less: Noncurrent deferred tax liabilities, net	480,770)	353,279)	394,852)	397,858)	382,982)
Total liabilities (adjusted)	6,784,905)	4,815,232)	5,587,500)	5,369,425)	3,439,584)
Adjustment to Total Albemarle Corporation Shareholders’ Equity
Total Albemarle Corporation shareholders’ equity (as reported)	7,982,627)	5,625,266)	4,268,227)	3,932,250)	3,585,321)
Less: Net deferred tax assets (liabilities)	(434,336)	(334,482)	(374,535)	(382,583)	(365,953)
Total Albemarle Corporation shareholders’ equity (adjusted)	8,416,963)	5,959,748)	4,642,762)	4,314,833)	3,951,274)
Adjustment to Net Income Attributable To Albemarle Corporation
Net income attributable to Albemarle Corporation (as reported)	2,689,816)	123,672)	375,764)	533,228)	693,562)
Add: Deferred income tax expense (benefit)	93,339)	(38,500)	(1,976)	14,394)	49,164)
Net income attributable to Albemarle Corporation (adjusted)	2,783,155)	85,172)	373,788)	547,622)	742,726)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Albemarle Corp., Financial Data: Reported vs. Adjusted

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Albemarle Corp., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net Profit Margin
Reported net profit margin	36.75%	3.72%	12.01%	14.86%	20.55%
Adjusted net profit margin	38.02%	2.56%	11.95%	15.26%	22.01%
Total Asset Turnover
Reported total asset turnover	0.47	0.30	0.30	0.36	0.45
Adjusted total asset turnover	0.48	0.30	0.30	0.36	0.45
Financial Leverage
Reported financial leverage	1.94	1.95	2.45	2.51	2.11
Adjusted financial leverage	1.83	1.84	2.25	2.28	1.91
Return on Equity (ROE)
Reported ROE	33.70%	2.20%	8.80%	13.56%	19.34%
Adjusted ROE	33.07%	1.43%	8.05%	12.69%	18.80%
Return on Assets (ROA)
Reported ROA	17.40%	1.13%	3.60%	5.41%	9.15%
Adjusted ROA	18.06%	0.78%	3.58%	5.56%	9.82%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Albemarle Corp. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Albemarle Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Albemarle Corp. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Albemarle Corp. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Albemarle Corp. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Albemarle Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Albemarle Corporation	2,689,816)	123,672)	375,764)	533,228)	693,562)
Net sales	7,320,104)	3,327,957)	3,128,909)	3,589,427)	3,374,950)
Profitability Ratio
Net profit margin¹	36.75%	3.72%	12.01%	14.86%	20.55%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Albemarle Corporation	2,783,155)	85,172)	373,788)	547,622)	742,726)
Net sales	7,320,104)	3,327,957)	3,128,909)	3,589,427)	3,374,950)
Profitability Ratio
Adjusted net profit margin²	38.02%	2.56%	11.95%	15.26%	22.01%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Net profit margin = 100 × Net income attributable to Albemarle Corporation ÷ Net sales
= 100 × 2,689,816 ÷ 7,320,104 = 36.75%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Albemarle Corporation ÷ Net sales
= 100 × 2,783,155 ÷ 7,320,104 = 38.02%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Albemarle Corp. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net sales	7,320,104)	3,327,957)	3,128,909)	3,589,427)	3,374,950)
Total assets	15,456,522)	10,974,118)	10,450,946)	9,860,863)	7,581,674)
Activity Ratio
Total asset turnover¹	0.47	0.30	0.30	0.36	0.45
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net sales	7,320,104)	3,327,957)	3,128,909)	3,589,427)	3,374,950)
Adjusted total assets	15,410,088)	10,955,321)	10,430,629)	9,845,588)	7,564,645)
Activity Ratio
Adjusted total asset turnover²	0.48	0.30	0.30	0.36	0.45

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 7,320,104 ÷ 15,456,522 = 0.47

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 7,320,104 ÷ 15,410,088 = 0.48

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Albemarle Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	15,456,522)	10,974,118)	10,450,946)	9,860,863)	7,581,674)
Total Albemarle Corporation shareholders’ equity	7,982,627)	5,625,266)	4,268,227)	3,932,250)	3,585,321)
Solvency Ratio
Financial leverage¹	1.94	1.95	2.45	2.51	2.11
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	15,410,088)	10,955,321)	10,430,629)	9,845,588)	7,564,645)
Adjusted total Albemarle Corporation shareholders’ equity	8,416,963)	5,959,748)	4,642,762)	4,314,833)	3,951,274)
Solvency Ratio
Adjusted financial leverage²	1.83	1.84	2.25	2.28	1.91

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ Financial leverage = Total assets ÷ Total Albemarle Corporation shareholders’ equity
= 15,456,522 ÷ 7,982,627 = 1.94

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Albemarle Corporation shareholders’ equity
= 15,410,088 ÷ 8,416,963 = 1.83

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Albemarle Corp. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Albemarle Corporation	2,689,816)	123,672)	375,764)	533,228)	693,562)
Total Albemarle Corporation shareholders’ equity	7,982,627)	5,625,266)	4,268,227)	3,932,250)	3,585,321)
Profitability Ratio
ROE¹	33.70%	2.20%	8.80%	13.56%	19.34%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Albemarle Corporation	2,783,155)	85,172)	373,788)	547,622)	742,726)
Adjusted total Albemarle Corporation shareholders’ equity	8,416,963)	5,959,748)	4,642,762)	4,314,833)	3,951,274)
Profitability Ratio
Adjusted ROE²	33.07%	1.43%	8.05%	12.69%	18.80%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROE = 100 × Net income attributable to Albemarle Corporation ÷ Total Albemarle Corporation shareholders’ equity
= 100 × 2,689,816 ÷ 7,982,627 = 33.70%

² Adjusted ROE = 100 × Adjusted net income attributable to Albemarle Corporation ÷ Adjusted total Albemarle Corporation shareholders’ equity
= 100 × 2,783,155 ÷ 8,416,963 = 33.07%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Albemarle Corp. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Albemarle Corporation	2,689,816)	123,672)	375,764)	533,228)	693,562)
Total assets	15,456,522)	10,974,118)	10,450,946)	9,860,863)	7,581,674)
Profitability Ratio
ROA¹	17.40%	1.13%	3.60%	5.41%	9.15%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Albemarle Corporation	2,783,155)	85,172)	373,788)	547,622)	742,726)
Adjusted total assets	15,410,088)	10,955,321)	10,430,629)	9,845,588)	7,564,645)
Profitability Ratio
Adjusted ROA²	18.06%	0.78%	3.58%	5.56%	9.82%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

¹ ROA = 100 × Net income attributable to Albemarle Corporation ÷ Total assets
= 100 × 2,689,816 ÷ 15,456,522 = 17.40%

² Adjusted ROA = 100 × Adjusted net income attributable to Albemarle Corporation ÷ Adjusted total assets
= 100 × 2,783,155 ÷ 15,410,088 = 18.06%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Albemarle Corp. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Albemarle Corp. (NYSE:ALB)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Albemarle Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Albemarle Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)