Name: Albemarle Corp. (NYSE:ALB) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Albemarle Corp., consolidated statement of comprehensive income

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	2,815,131)	199,942)	446,615)	604,357)	739,139)
Foreign currency translation and other	(171,295)	(74,385)	99,832)	(61,399)	(150,396)
Net investment hedge	—)	5,110)	(34,185)	8,441)	25,786)
Cash flow hedge	(4,399)	174)	1,602)	4,847)	—)
Interest rate swap	7,399)	2,623)	2,601)	2,591)	(585)
Other comprehensive income (loss), net of tax	(168,295)	(66,478)	69,850)	(45,520)	(125,195)
Comprehensive income	2,646,836)	133,464)	516,465)	558,837)	613,944)
Comprehensive income attributable to noncontrolling interests	(125,232)	(76,110)	(71,098)	(70,662)	(45,396)
Comprehensive income attributable to Albemarle Corporation	2,521,604)	57,354)	445,367)	488,175)	568,548)

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).

The financial performance from 2018 to 2022 is characterized by a period of steady contraction in profitability followed by a substantial surge in the final year. Net income exhibited a consistent downward trajectory between 2018 and 2021, falling from US$ 739.1 million to a low of US$ 199.9 million, before experiencing a sharp increase to US$ 2.8 billion in 2022.

Net Income and Comprehensive Income Volatility: A significant shift in earnings is observed. After a three-year decline, the 2022 fiscal year represents a dramatic pivot, with net income increasing by approximately 1,300% over 2021 levels. This surge directly propelled the comprehensive income attributable to Albemarle Corporation to US$ 2.5 billion, reversing the diminishing trend seen from 2018 to 2021.
Other Comprehensive Income (OCI) Drivers: Other comprehensive income demonstrates high volatility and is primarily driven by foreign currency translation. Negative translation adjustments were recorded in four of the five years, with the most significant loss occurring in 2022 at US$ 171.3 million. These currency-related losses frequently acted as a drag on the total comprehensive income, particularly in 2018 and 2022.
Hedging and Derivative Performance: The impact of net investment and cash flow hedges remained relatively marginal compared to net income. However, interest rate swaps showed a consistent positive trend, moving from a loss of US$ 585 thousand in 2018 to a gain of US$ 7.4 million in 2022, indicating a steady improvement in the valuation of these specific instruments.
Noncontrolling Interests Analysis: Comprehensive income attributable to noncontrolling interests remained consistently negative throughout the analyzed period. The magnitude of these negative values increased over time, expanding from US$ 45.4 million in 2018 to US$ 125.2 million in 2022, representing a growing negative attribution to noncontrolling interests.

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