Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Albemarle Corp., balance sheet: goodwill and intangible assets

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Goodwill	1,617,627)	1,597,627)	1,665,520)	1,578,785)	1,567,169)
Customer lists and relationships	412,670)	428,379)	448,748)	422,462)	428,372)
Trade names and trademarks	13,161)	17,883)	18,710)	18,087)	18,453)
Patents and technology	46,399)	57,313)	58,096)	55,020)	55,801)
Other	35,186)	36,705)	39,864)	41,282)	43,708)
Other intangibles, gross asset value	507,416)	540,280)	565,418)	536,851)	546,334)
Accumulated amortization	(219,546)	(231,333)	(216,313)	(182,229)	(160,191)
Other intangibles, net book value	287,870)	308,947)	349,105)	354,622)	386,143)
Goodwill and other intangibles	1,905,497)	1,906,574)	2,014,625)	1,933,407)	1,953,312)

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
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Albemarle Corp. goodwill decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
Other intangibles, net book value	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Albemarle Corp. other intangibles, net book value decreased from 2020 to 2021 and from 2021 to 2022.
Goodwill and other intangibles	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Albemarle Corp. goodwill and other intangibles decreased from 2020 to 2021 and from 2021 to 2022.

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: Goodwill	1,617,627)	1,597,627)	1,665,520)	1,578,785)	1,567,169)
Total assets (adjusted)	13,838,895)	9,376,491)	8,785,426)	8,282,078)	6,014,505)
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: Goodwill	1,617,627)	1,597,627)	1,665,520)	1,578,785)	1,567,169)
Total Albemarle Corporation shareholders’ equity (adjusted)	6,365,000)	4,027,639)	2,602,707)	2,353,465)	2,018,152)

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
Total Asset Turnover
Reported total asset turnover	0.47	0.30	0.30	0.36	0.45
Adjusted total asset turnover	0.53	0.35	0.36	0.43	0.56
Financial Leverage
Reported financial leverage	1.94	1.95	2.45	2.51	2.11
Adjusted financial leverage	2.17	2.33	3.38	3.52	2.98
Return on Equity (ROE)
Reported ROE	33.70%	2.20%	8.80%	13.56%	19.34%
Adjusted ROE	42.26%	3.07%	14.44%	22.66%	34.37%
Return on Assets (ROA)
Reported ROA	17.40%	1.13%	3.60%	5.41%	9.15%
Adjusted ROA	19.44%	1.32%	4.28%	6.44%	11.53%

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 total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Albemarle Corp. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
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 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 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 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 Goodwill
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	13,838,895)	9,376,491)	8,785,426)	8,282,078)	6,014,505)
Activity Ratio
Adjusted total asset turnover²	0.53	0.35	0.36	0.43	0.56

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 ÷ 13,838,895 = 0.53

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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 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)
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 Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	13,838,895)	9,376,491)	8,785,426)	8,282,078)	6,014,505)
Adjusted total Albemarle Corporation shareholders’ equity	6,365,000)	4,027,639)	2,602,707)	2,353,465)	2,018,152)
Solvency Ratio
Adjusted financial leverage²	2.17	2.33	3.38	3.52	2.98

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
= 13,838,895 ÷ 6,365,000 = 2.17

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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 Goodwill
Selected Financial Data (US$ in thousands)
Net income attributable to Albemarle Corporation	2,689,816)	123,672)	375,764)	533,228)	693,562)
Adjusted total Albemarle Corporation shareholders’ equity	6,365,000)	4,027,639)	2,602,707)	2,353,465)	2,018,152)
Profitability Ratio
Adjusted ROE²	42.26%	3.07%	14.44%	22.66%	34.37%

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 × Net income attributable to Albemarle Corporation ÷ Adjusted total Albemarle Corporation shareholders’ equity
= 100 × 2,689,816 ÷ 6,365,000 = 42.26%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as 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 Goodwill
Selected Financial Data (US$ in thousands)
Net income attributable to Albemarle Corporation	2,689,816)	123,672)	375,764)	533,228)	693,562)
Adjusted total assets	13,838,895)	9,376,491)	8,785,426)	8,282,078)	6,014,505)
Profitability Ratio
Adjusted ROA²	19.44%	1.32%	4.28%	6.44%	11.53%

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 × Net income attributable to Albemarle Corporation ÷ Adjusted total assets
= 100 × 2,689,816 ÷ 13,838,895 = 19.44%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as 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 Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Albemarle Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Albemarle Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)