Proceeds from Legal Settlements

[Table of Contents](#ibf86fcdc129f446cb1f3b45cc16d49fe_7)ALBEMARLE CORPORATION AND SUBSIDIARIESNotes to the Condensed Consolidated Financial Statements(Unaudited)See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net (loss) income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP (in thousands):

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|  | Lithium |  | Bromine |  | Catalysts |  | Reportable Segments Total |  | All Other |  | Corporate |  | Consolidated Total |
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| Three months ended March 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net income (loss) attributable to Albemarle Corporation | $ | 261,689  |  |  | $ | 116,561  |  |  | $ | 3,989  |  |  | $ | 382,239  |  |  | $ | —  |  |  | $ | (128,856) |  |  | $ | 253,383  |  |
| Depreciation and amortization | 38,526  |  |  | 12,673  |  |  | 12,921  |  |  | 64,120  |  |  | —  |  |  | 2,454  |  |  | 66,574  |  |
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| Loss on sale of interest in properties(a) | 8,400  |  |  | —  |  |  | —  |  |  | 8,400  |  |  | —  |  |  | —  |  |  | 8,400  |  |
| Acquisition and integration related costs(b) | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 1,724  |  |  | 1,724  |  |
| Interest and financing expenses(c) | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 27,834  |  |  | 27,834  |  |
| Income tax expense | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 80,530  |  |  | 80,530  |  |
| Non-operating pension and OPEB items | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | (5,280) |  |  | (5,280) |  |
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| Other(d) | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | (1,235) |  |  | (1,235) |  |
| Adjusted EBITDA | $ | 308,615  |  |  | $ | 129,234  |  |  | $ | 16,910  |  |  | $ | 454,759  |  |  | $ | —  |  |  | $ | (22,829) |  |  | $ | 431,930  |  |
| Three months ended March 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net income (loss) attributable to Albemarle Corporation | $ | 74,630  |  |  | $ | 82,113  |  |  | $ | 12,916  |  |  | $ | 169,659  |  |  | $ | 20,016  |  |  | $ | (93,998) |  |  | $ | 95,677  |  |
| Depreciation and amortization | 31,806  |  |  | 12,527  |  |  | 12,511  |  |  | 56,844  |  |  | 1,463  |  |  | 3,953  |  |  | 62,260  |  |
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| Acquisition and integration related costs(b) | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 2,162  |  |  | 2,162  |  |
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| Interest and financing expenses(e) | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 43,882  |  |  | 43,882  |  |
| Income tax expense | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 22,107  |  |  | 22,107  |  |
| Non-operating pension and OPEB items | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | (5,465) |  |  | (5,465) |  |
| Other(f) | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 9,431  |  |  | 9,431  |  |
| Adjusted EBITDA | $ | 106,436  |  |  | $ | 94,640  |  |  | $ | 25,427  |  |  | $ | 226,503  |  |  | $ | 21,479  |  |  | $ | (17,928) |  |  | $ | 230,054  |  |

(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 anticipated 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)Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in Selling, general and administrative expenses (“SG&A”).(c)Included in Interest and financing expenses is 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, “Basis of Presentation,” for further details.(d)Included amounts for the three months ended March 31, 2022 recorded in:•SG&A - $4.3 million of gains from the sale of legacy properties not part of our operations, partially offset by $2.8 million of charges for environmental reserves at sites not part of our operations and $0.7 million of facility closure expenses related to offices in Germany.•Other income, net - $0.6 million gain related to a settlement received from a legal matter in a prior period. (e)Included in Interest and financing expenses is a loss on early extinguishment of debt of $27.8 million for the three months ended March 31, 2021. See Note 9, “Long-Term Debt,” for additional information.(f)Included amounts for the three months ended March 31, 2021 recorded in:▪SG&A - $5.5 million of expenses primarily related to non-routine labor and compensation related costs that are outside normal compensation arrangements.▪Other income, net - $3.9 million of expenses primarily related to asset retirement obligation charges to update of an estimate at a site formerly owned by Albemarle.  
  
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