Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Document period end date | Sep. 30, 2016 |
Amendment flag | false |
Document Fiscal Year Focus | 2,016 |
Document Period Focus | Q3 |
Current fiscal year end date | --12-31 |
Entity central index key | 81,362 |
Entity current reporting status | Yes |
Entity filer category | Large Accelerated Filer |
Entity registrant name | Quaker Chemical Corporation |
Entity voluntary filers | No |
Entity well known seasoned issuer | Yes |
Entity common stock shares outstanding | 13,257,066 |
Trading Symbol | KWR |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Net Sales | $ 190,428 | $ 189,224 | $ 555,420 | $ 554,280 |
Cost of goods sold | 119,649 | 117,895 | 345,531 | 346,006 |
Gross profit | 70,779 | 71,329 | 209,889 | 208,274 |
Selling, general and administrative expenses | 49,440 | 52,601 | 147,223 | 150,237 |
Operating income | 21,339 | 18,728 | 62,666 | 58,037 |
Other income (expense), net | 514 | 185 | 1,491 | (97) |
Interest Expense | (758) | (697) | (2,226) | (1,891) |
Interest Income | 551 | 422 | 1,444 | 1,117 |
Income Before Taxes and Equity in Net Income of Associated Companies | 21,646 | 18,638 | 63,375 | 57,166 |
Taxes on income before equity in net income of associated companies | 6,121 | 4,541 | 19,664 | 15,624 |
Income before equity in net income of associated companies | 15,525 | 14,097 | 43,711 | 41,542 |
Equity in net income (loss) of associated companies | 826 | 738 | 1,389 | (688) |
Net Income | 16,351 | 14,835 | 45,100 | 40,854 |
Less: Net income attributable to noncontrolling interest | 343 | 464 | 1,131 | 1,067 |
Net Income Attributable to Quaker Chemical Corporation | $ 16,008 | $ 14,371 | $ 43,969 | $ 39,787 |
Per share data: | ||||
Basic Earnings Per Common Share | $ 1.21 | $ 1.08 | $ 3.32 | $ 2.99 |
Diluted Earnings per Common Share | 1.21 | 1.08 | 3.32 | 2.98 |
Dividends Declared | $ 0.345 | $ 0.32 | $ 1.01 | $ 0.94 |
Condensed Consolidated Stateme3
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 16,351 | $ 14,835 | $ 45,100 | $ 40,854 |
Currency Translation Adjustments | (715) | (11,380) | (1,074) | (19,995) |
Defined Benefit Retirement Plans | 460 | 706 | 1,641 | 3,133 |
Unrealized Gain (loss) on Available-for-Sale Securities | 195 | (687) | 808 | (958) |
Other Comprehensive (loss) income | (60) | (11,361) | 1,375 | (17,820) |
Comprehensive Income | 16,291 | 3,474 | 46,475 | 23,034 |
Less: Comprehensive Income Attributable to Noncontrolling Interest | (520) | (97) | (1,217) | (606) |
Comprehensive Income Attributable to Quaker Chemical Corporation | $ 15,771 | $ 3,377 | $ 45,258 | $ 22,428 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 99,024 | $ 81,053 |
Accounts receivable, net | 193,805 | 188,297 |
Inventories | ||
Raw materials and supplies | 38,427 | 36,876 |
Work-in-process and finished goods | 41,233 | 38,223 |
Prepaid expenses and other current assets | 21,624 | 21,404 |
Total current assets | 394,113 | 365,853 |
Property, plant and equipment, at cost | 236,874 | 231,164 |
Less accumulated depreciation | (153,009) | (143,545) |
Net property, plant and equipment | 83,865 | 87,619 |
Goodwill | 79,324 | 79,111 |
Other intangible assets, net | 69,789 | 73,287 |
Investments in associated companies | 23,448 | 20,354 |
Non-current deferred tax assets | 17,621 | 23,468 |
Other assets | 29,311 | 32,218 |
Total assets | 697,471 | 681,910 |
Current liabilities | ||
Short-term borrowings and current portion of long-term debt | 730 | 662 |
Accounts and other payables | 78,579 | 71,543 |
Accrued compensation | 17,687 | 19,166 |
Accrued restructuring | 2,233 | 6,303 |
Other current liabilities | 25,532 | 26,881 |
Total current liabilities | 124,761 | 124,555 |
Long-term debt | 75,607 | 81,439 |
Non-current deferred tax liabilities | 11,776 | 11,400 |
Other non-current liabilities | 71,629 | 83,273 |
Total liabilities | 283,773 | 300,667 |
Equity | ||
Common stock $1 par value; authorized 30,000,000 shares; issued and outstanding 2016 - 13,257,066 shares; 2015 - 13,288,113 shares | 13,257 | 13,288 |
Capital in excess of par value | 111,453 | 106,333 |
Retained earnings | 351,560 | 326,740 |
Accumulated Other Comprehensive Loss | (72,027) | (73,316) |
Total Quaker shareholders' equity | 404,243 | 373,045 |
Noncontrolling interest | 9,455 | 8,198 |
Total equity | 413,698 | 381,243 |
Total liabilities and equity | $ 697,471 | $ 681,910 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheet (Parentheticals) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Common Stock Par Value | $ 1 | $ 1 |
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Common Stock, Shares, Issued | 13,257,066 | 13,288,113 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net Income | $ 45,100 | $ 40,854 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 9,469 | 9,229 |
Amortization | 5,319 | 4,998 |
Equity in undistributed (earnings) losses of associated companies, net of dividends | (1,314) | 1,362 |
Deferred compensation and other, net | 3,083 | (551) |
Stock-based compensation | 4,942 | 4,500 |
Loss (gain) on disposal of property, plant and equipment and other assets | 44 | (95) |
Insurance settlement realized | (809) | (549) |
Pension And Other Postretirement Benefit Expense | 0 | 2,204 |
Pension and other postretirement benefits contributions | (3,373) | 0 |
(Decrease) increase in cash from changes in current assets and current liabilities, net of acquisitions: | ||
Accounts receivable | (5,926) | (4,039) |
Inventories | (3,741) | (1,028) |
Prepaid expenses and other current assets | (868) | (3,545) |
Accounts payable and accrued liabilities | 5,245 | (2,521) |
Change in restructuring liabilities | (4,194) | 0 |
Net cash provided by operating activities | 52,977 | 50,819 |
Cash flows from investing activities | ||
Investments in property, plant and equipment | (6,311) | (6,115) |
Payments related to acquisitions, net of cash acquired | (3,244) | (23,990) |
Proceeds from disposition of assets | 54 | 130 |
Insurance settlement interest earned | 24 | 28 |
Change in restricted cash, net | 785 | 521 |
Net cash used in investing activities | (8,692) | (29,426) |
Cash flows from financing activities | ||
Proceeds from long-term debt | 0 | 30,668 |
Repayment of long-term debt | (6,842) | (304) |
Dividends paid | (13,052) | (12,257) |
Stock options exercised, other | 64 | 947 |
Payments for repurchase of common stock | (5,859) | (4,989) |
Excess tax benefit related to stock option exercises, cash flow | 167 | 400 |
Net cash (used in) provided by financing activities | (25,522) | 14,465 |
Effect of exchange rate changes on cash | (792) | (4,434) |
Net increase in cash and cash equivalents | 17,971 | 31,424 |
Cash and cash equivalents at beginning of period | 81,053 | 64,731 |
Cash and cash equivalents at end of period | $ 99,024 | $ 96,155 |
Condensed Financial Information
Condensed Financial Information | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 – Condensed Financial Information The condensed consolidated financial statements included herein are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial reporting and the United States Securities and Exchange Commission (“SEC”) regulations. Certai n information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the financial statements reflect al l adjustments (consisting only of normal recurring adjustments, except certain material adjustments, as discussed below) which are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods. The results for the nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the Company’s Annual Report filed on Form 10-K for the yea r ended December 31, 2015 . During the first quarter of 2016, the Company revised its Condensed Consolidated Balance Sheet for December 31, 2015, reducing non-current deferred tax assets and non-current deferred tax liabilities by $3.6 million each , to correct for offsetting deferred tax balances within related taxing jurisdictions. The Company considers such revision to be immaterial and the revision had no impact on reported equity, net income or net cash provided by operating activities. Venez uela’s economy has been considered hyper inflationary under U.S. GAAP since 2010, at which time the Company’s Venezuela equity affiliate, Kelko Quaker Chemical, S.A. (“Kelko Venezuela”), changed its functional currency from the bolivar f uerte (“BsF”) to th e U.S. d ollar. Accordingly, all gains and losses resulting from the remeasurement of Kelko Venezuela’s monetary assets and liabilities to published exchange rates are required to be recorded directly to the Condensed Con solidated Statement of Income. As of December 31, 2014, there were three legally available exchange rates in Venezuela, the CADIVI (or the official rate, 6.3 BsF per U.S. d ollar), the SICAD I and the SICAD II. Kelko Venezuela had access to the CADIVI for imported goods, had not been invit ed to participate in any SICAD I auctions and had limited access to the SICAD II mechanism. Accordingly, the Company measured its equity investment and other related assets with Kelko Venezuela at the CADIVI exchange rate at December 31, 2014. During the first quarter of 2015, the Venezuela government announced changes to its foreign exchange co ntrols. There continued to be three e xchange mechanisms, however, they consist ed of the CADIVI, a combined SICAD I and SICAD II auction mechanism (the “SICAD”) an d a newly created, marginal currency system (the “SIMADI”). In light of the first quarter of 2015 changes to Venezuela’s foreign exchange controls and the on-going economic challenges in Venezuela, the Company re-assessed Kelko Venezuela’s access to U.S. d ollars, the impact on the operations of Kelko Venezuela, and the impact on the Company’s equity investment and other related assets , which resulted in revaluing i ts equity investment in Kelko Venezuela and other related assets to the SIMADI exchange rate of approximately 193 BsF per U.S. d ollar as of March 31, 2015 . This resulted in a charge of $2.8 million, or $0.21 per diluted share, recorde d in the first quarter of 2015. As of December 31, 2015, the Company’s equity investment in Kelko Venezuela was $0.2 million, valued at the SIMADI exchange rate, which was approximately 198 BsF per U.S. dollar. During the first quarte r of 2016, the Venezuela government announced further changes to its foreign exchange controls, including eliminating the CADIVI, SICAD and SIMADI exchange rate mechanisms and replacing them with a new dual foreign exchange rate system, which consists of a protected “DIPRO” exchange rate, with a rate fixed at 10 Bsf per U.S. dollar and, also, a floating supplementary market exchange rate known as the “DICOM.” The DIPRO rate is only available for payment of certain imports of essential goods in the food and health sectors while the DICOM governs all other transactions not covered by the DIPRO. In light of these changes to the foreign exchange controls during the first quarter of 2016, the Company again re-assessed Kelko Venezuela’s access to U.S. dollars, t he impact on the operations of Kelko Venezuela, and the impact on the Company’s equity investment and other related assets. The Company did not believe it had access to the DIPRO and, therefore, believed the DICOM to be the exchange rate system available to Kelko Venezuela. As of March 31, 2016 , the published rate for the DICOM was approximately 273 BsF per U.S. dollar, which resulted in a currency conversion charge of $ 0.1 million, or $0.01 per diluted share in the first quarter of 2016 . As of September 30, 2016 , the Company’s equity investment in Kelko Venezuela was $0.1 million, valued at the DICOM exchange rate of approximately 658 BsF per U.S. dollar . As part of the Company’s chemical management services, certain third-party product sales to customers are managed by the Company. Where the Company acts as a principal, revenue is recognized on a gross reporting basis at the selling price negotiated with customers. Where the Company acts as an agent, such revenue is recorded using net reporting of service revenue , at the amount of the administrative fee earned by the Company for ordering the goods. Third-party products transferred under arrangements res ulting in net reporting totaled $10.7 million and $32.8 million for the three and nine months ended September 30, 2016 , respectively. Comparatively, third-party products transferred under arrangements resulting in net reporting totaled $12.1 mi llion and $36.2 million for the three and nine months ended September 30, 2015 , respectively. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Note 2 – Recently Issued Accounting Standards The Financial Accounting Standards Board ("FASB") issued an accounting standard update in August 2016 to standardize how certain transactions are classified in the statement of cash flows. Specific t ransactions covered by the accounting standard update include debt prepayment or debt extinguish ment costs, settlement of zero- coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of ins urance claims, proceeds from the settlement of corporate and bank owned life insurance policies, distributions received from equity method investments and beneficial interest in securitization transactions. The guidance within this accounting standard upd ate is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company has not early adopted and is currently evaluating the potential impact of this guidance and an appropriate implementation strategy. The FASB issued an accounting standard update in March 2016 involving several aspects of the accounting for s hare-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, use of a forfeiture rate, and classification on the statement of cash flows. The guidance within this accounting standard upd ate is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted, however, if early adoption is elected, all amendments in the update must be adopted in the same period. When adopted, application of the guida nce will vary based on each aspect of the update , including adoption under retrospective, modified retrospective or prospective approaches . The Company has not early adopted and is currently evaluating the potential impact of this guidance and an appropri ate implementation strategy. The FASB issued an accounting standard update in February 2016 regarding the accounting and disclosure for leases. Specifically, the update will require entities that lease assets to recognize the assets and liabilities for the rights and obligations created by those leases on the balance sheet , in most instances . The guidance within this accounting standard update is effective for annual and interim periods beginning after December 15, 2018, and should be applied on a modif ied retrospective basis for the reporting periods presented. Early adoption is permitted. The Company has not early adopted and is currently evaluating t he potential impact of this guidance and an appropriate implementation strategy. The FASB issued an a ccounting standard update in November 2015 regarding the classification of deferred taxes on the balance sheet. The update requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on th e balance sheet. The update does not change the existing requirement that only permits offsetting within a jurisdiction. The guidance within this accounting standard update is effective for annual and interim periods beginning after December 15, 2016, an d may be applied either prospectively, for all deferred tax assets and liabilities, or retrospectively. Early adoption is permitted. The Company has not early adopted and is considering an appropriate implementation strategy. Adoption of the guidance wi ll not have an impact on the Company’s earnings or cash flow but will result in a balance sheet reclassification between current and long-term assets and liabilities. The FASB issued an accounting standard update in July 2015 regarding simplifying the measurement of inventory. The guidance is applicable for entities that measure inventory using the FIFO or average cost methods. Specifically, the update requires that inventory be measured at lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments in this update are effective for fiscal years beginning after December 15, 2016, including inte rim periods within those fiscal years. This guidance should be applied prospectively with early adoption permitted. During the first quarter of 2016, the Company elected to early adopt this guidance without a material impact. The FASB issued an accountin g standard update in May 2015 regarding the required disclosures for entities that elect to measure the fair value of certain investments using the net asset value per share (or its equivalent) practical expedient in accordance with the fair value measurem ent authoritative guidance. The update removes the requirement to categorize within the fair value hierarchy, and also limits the requirement to make certain other disclosures, for all such investments. The amendments in this update are effective for fis cal years beginning after December 15, 2015, and interim periods within those fiscal years, and should be applied on a retrospective basis for the periods presented. Early adoption was permitted. During the first quarter of 2016, the Company adopted this guidance without a material impact. The FASB issued an accounting standard update in April 2015 regarding the presentation of debt issuance costs on the balance sheet. The update requires capitalized debt issuance costs be presented on the balance sheet as a reduction to debt, rather than recorded as a separate asset. The amendments in this update are effective for annual and interim periods beginning after December 15, 2015 and should be applied on a retrospective basis for the periods presented. Early adoption was permitted. Also, in June 2015, the SEC staff announced that the guidance within this accounting standard update was not applicable to revolving debt arrangements or credit facilit ies. During the first quarter of 2016, the Company adopted thi s guidance without a material impact. The FASB issued an accounting standard update in May 2014 regarding the accounting for and disclosure of revenue recognition. Specifically, the update outlined a single comprehensive model for entities to use in accou nting for revenue arising from contracts with customers, which will be common to both U.S. GAAP and International Financial Reporting Standards (“IFRS”). The guidance was effective for annual and interim periods beginning after December 15, 2016, and allowed for full retrospective adoption of prior period data or a modified retrospective adoption. Early adoption was not permitted. In August 2015, the FASB issued an accounting standard update to delay the effective date of the new revenue standard by one year, or, in other words, to be effective for annual and interim periods beginning after December 15, 2017. Entities will be permitted to adopt the new revenue standard early but not befor e the original effective date. In March 2016, the FASB issued an accounting standard update to clarify the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued an accounting standard update to clarify the identification of performance obligations and the licensing impleme ntation guidance, while retaining the related principles for those areas. In May 2016, the FASB issued an accounting standard update to clarify guidance in certain areas and add some practical expedients to the guidance. The amendments in these 2016 upda tes do not change the core principle of the previously issued guidance in May 2014. As of September 30, 2016, the Company has begun its preliminary assessment for the implementation of this new revenue recognition guidance. Given this assessment is in its ea rly stages, the Company is still assessing materiality and evaluating the potential impact of this guidance and an appropriate implementation strategy. |
Restructuring and Related Activ
Restructuring and Related Activities | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring And Related Activities Disclosure [TextBlock] | Note 3 – Restructuring and Related Activities In response to continued weak economic conditions and market declines in many regions, Quaker’s management approved a global restructuring plan (the “2015 Program”) in the fourth quarter of 2015 to reduce its operating costs. The 2015 Program includes the re-organization of certain commercial functions, the consolidation of certain distribution, laboratory and administrative offices, and other related severance charges. In addition to these actions, the C ompany made a decision to make available-for-sale certain technology of one of its existing businesses, which also resulted in employee severance and $0.3 million of intangible assets being reclassified to other current assets as of December 31, 2015. Dur ing the nine months ended September 30, 2016 , there has been no further update and the intangible assets continue to be available for sale and included in other current assets. The 2015 Program includes provisions for the reduction of total headcount of approximately 65 employees globally. Employee separation benefits varied depending on local regulations within certain foreign countries and included severance and other benefits. The Company still expects to substantially complete all of the initiatives under the 2015 Program in 2016 and expects settlement of these charges to occur primarily in 2016 as well. The Company has not incurred additional restructuring expenses in connection with the 2015 Program during the first nine months of 2016 , and at thi s time the Company does n ot expect material additional restructuring expenses beyond customary and routine adjustments to initial estimates for employee separation benefits. Restructuring activity recognized in each reportable operating segment in connection with the 2015 Program is as fo llows: North South America EMEA Asia/Pacific America Total Accrued restructuring as of December 31, 2015 $ 1,867 $ 4,265 $ 135 $ 36 $ 6,303 Cash payments (1,318) (2,700) (137) (39) (4,194) Currency translation adjustments — 119 2 3 124 Accrued restructuring as of September 30, 2016 $ 549 $ 1,684 $ — $ — $ 2,233 |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting Measurement Disclosures [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 4 – Business Segments The Company’s reportable operating segments are organized by geography as follows: (i) North America, (ii) Europe, Middle East and Africa (“EMEA”), (iii) Asia/Pacific and (iv) South America. Operating earnings, excluding indirect operating expenses, for the Company’s reportable operating segments is comprised of revenues less costs of goods sold and selling, general and administrative expenses (“ SG&A ”) directly related to the resp ective region ’s product sales. The indirect ope rating expenses consist of SG&A not directly attributable to the product sales of each respective report able operating segment. Other items not specifically identified with the Company’s reportable operating segments inc lude interest expense, interest income, license fees from non-co nsolidated affiliates, amortization expense and other income (expense) . The following table presents information about the performance of the Company’s reportable operating segments for the three and nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net sales North America $ 86,126 $ 90,010 $ 251,586 $ 258,977 EMEA 49,825 45,989 150,582 130,345 Asia/Pacific 45,892 46,067 130,555 138,913 South America 8,585 7,158 22,697 26,045 Total net sales $ 190,428 $ 189,224 $ 555,420 $ 554,280 Operating earnings, excluding indirect operating expenses North America $ 20,324 $ 21,893 $ 59,078 $ 59,938 EMEA 8,295 7,106 25,251 20,538 Asia/Pacific 11,737 11,250 33,865 33,874 South America 680 261 703 2,270 Total operating earnings, excluding indirect operating expenses 41,036 40,510 118,897 116,620 Indirect operating expenses (17,967) (20,031) (50,912) (53,585) Amortization expense (1,730) (1,751) (5,319) (4,998) Consolidated operating income 21,339 18,728 62,666 58,037 Other income (expense), net 514 185 1,491 (97) Interest expense (758) (697) (2,226) (1,891) Interest income 551 422 1,444 1,117 Consolidated income before taxes and equity in net income of associated companies $ 21,646 $ 18,638 $ 63,375 $ 57,166 Inter-segment revenue s for the three and nine months ended September 30, 2016 were $2.5 million and $6.3 million for North America, $5.3 million and $13.2 million for EMEA, $0.1 million and $0.5 million for Asia/Pacific and $0 and less than $0.1 million for South America, respectively . Inter-segment revenue s for the three and nine months ended September 30, 2015 were $2.3 million and $6.9 million for North America, $5.2 million and $14.6 million for EMEA, $0.3 million and $0.5 million for Asia/Pacific and $0 and less than $0.1 million for South America, respectively . However, all inter-segment transactions have been eliminated from each reportable operating segment’s net sales and earnings for al l periods presented above. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Share Based Compensation [Abstract] | |
Disclosure Of Compensation Related Costs Share Based Payments [Text Block] | Note 5 – Stock-Based Compensation The Company recognized the following stock -based compensation expense in SG&A in its Condensed Consolidated Stateme nts of Income for the three and nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Stock options $ 215 $ 164 $ 632 $ 548 Nonvested stock awards and restricted stock units 773 668 2,366 2,179 Employee stock purchase plan 21 19 64 56 Non-elective and elective 401(k) matching contribution in stock 473 449 1,749 1,624 Director stock ownership plan 37 31 131 93 Total stock-based compensation expense $ 1,519 $ 1,331 $ 4,942 $ 4,500 The Company’s estimated taxes payable as of September 30, 2016 and 2015 , respectively, were sufficient to fully recognize $0.2 million and $0.4 million of excess tax benefits related to stock option exercises as cash inflows from financing activities in its Condensed Consoli dated Statements of Cash Flows, for the nine months ended September 30, 2016 and 2015 , respectively. During the first quarter of 2016, the Company granted stock options under its LTIP plan that are subject only to time vesting over a three-year period. For the purposes of determining the fair value of stock option awards, the Company uses the Black-Scholes option pricing model and the assumptions set forth in the table below: 2016 Number of options granted 67,444 Dividend yield 1.49 % Expected volatility 28.39 % Risk-free interest rate 1.08 % Expected term (years) 4.0 The fair value of these options is amortized on a straight-l in e basis over the vesting period. As of September 30, 2016 , unrecognized compensation expense related to options granted was $1.3 million, to be recognized over a weighted average remaining period of 2.0 years. There were no stock options granted in the second or third quarters of 2016. During the first nine months of 2016, the Company gra nted 28,471 nonvested restricted shares and 2,041 nonvested restricted stock units under its LTIP plan that are subject only to time vesting, generally over a three-year period. The fair value of these awards is based on the trading price of the Company’s common stock on the date of grant. The C ompany adjusts the grant date fair value of these awards for expected forfeitures based on historical experience. As of September 30, 2016 , unrecognized compensation expense related t o the nonvested shares was $3.4 million, to be recognized o ver a weighted average remaining period of 1.6 years, and unrecognized compensation expense related to nonvested restricted stock units was $0.2 million, to be recognized over a weighted average remaining period of 1.9 years. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 9 Months Ended |
Sep. 30, 2016 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Pension And Other Postretirement Benefits Disclosure [Text Block] | Note 6 – Pension and Other Postretirement Benefits The components of net periodic benefit cost for the three and nine months ended September 30, 2016 and 2015 are as follows: Three Months Ended September 30, Nine Months Ended September 30, Other Other Postretirement Postretirement Pension Benefits Benefits Pension Benefits Benefits 2016 2015 2016 2015 2016 2015 2016 2015 Service cost $ 672 $ 763 $ — $ 1 $ 2,025 $ 2,297 $ 8 $ 12 Interest cost 1,111 1,256 28 47 3,344 3,772 106 146 Expected return on plan assets (1,329) (1,367) — — (4,027) (4,165) — — Actuarial loss (gain) amortization 769 862 (30) 12 2,389 2,620 — 64 Prior service cost amortization (25) (25) — — (76) (76) — — Net periodic benefit cost $ 1,198 $ 1,489 $ (2) $ 60 $ 3,655 $ 4,448 $ 114 $ 222 As of December 31, 2015, the Company elected to use a split discount rate (spot-rate approach) for the U.S. plans and certain foreign plans , which includes the method used to estimate the service and interest components of net periodic benefit cost for pension and other postretirement benefits beginning in the first quarter of 2016 . This change resulted in a decrease in the service and interest components for pension cost in the three and nine months ended September 30, 2016 compared to the three and nine months ended September 30, 2015 . Historically, the Company estimated service and interest cost components utilizing a single weighted-average discount rate derived from a specific yield curve used to measure the benefit obligation at t he beginning of the period. Under the spot-rate approach, service and interest cost components have been estimated based on the application of the spot rates on a given yield curve at each future year to each plan's projected cash flows to measure the b enefit obligation at the beginning of the period. The Company made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows and the corresponding spot yield curve rat es. This change has been acc ounted for as a change in accounting estimate and , accordingly , accounted for prospectively. Employer Contributions The Company previously disclosed in its financial statements for the year ended December 31, 2015 , that it expected to make minimum cash contributions of $7.5 million to its pension plans and $0.5 million to its other postretirement benefit plan s in 2016 . As of September 30, 2016 , $6.6 million and $0.4 million of contributions have been made to the Company’s pension plans and its postretirement benefit plans, respectively. |
Other Income (Expense)
Other Income (Expense) | 9 Months Ended |
Sep. 30, 2016 | |
Other Income And Expenses [Abstract] | |
Other Income And Other Expense Disclosure [Text Block] | Note 7 – Other Income (Expense), Net The components of other income (expense), net for the three and nine months ended September 30, 2016 and 2015 are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Income from third party license fees $ 264 $ 161 $ 713 $ 619 Foreign exchange gains (losses), net 149 (79) 463 (978) Gain on fixed asset disposals, net 3 21 7 76 Non-income tax refunds and other related credits 72 72 133 141 Other non-operating income 54 53 265 179 Other non-operating expense (28) (43) (90) (134) Total other income (expense), net $ 514 $ 185 $ 1,491 $ (97) |
Income Taxes and Uncertain Tax
Income Taxes and Uncertain Tax Positions | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 8 – Income Taxes and Uncertain Income Tax Positions The Company’s effective tax rate for the nine months ended September 30, 2016 was 31.0% compared to 27.3% for the nine months ended September 30, 2015 . The increase in the effective tax rate was primarily due to the Company recording earnings in one of its subsidiaries at a statutory tax rate of 25% during the nine months ended September 30, 2016 , while it awaits recertification of a concessionary 15% tax rate, which wa s available to the Company during the nine months ended September 30, 2015 . As of September 30, 2016 , the Company’s cumulative liability for gross unrecognized tax benefits was $7.1 million . A s of December 31, 2015 , the Comp any’s cumulative liability for gross unrecognized tax benefits was $11.0 million. In both the nine months ended September 30, 2016 and 2015 , the Company recognized a decrease of $1.5 million in its cumulative liability for gross unrecognized tax benefits due to the expiration of the applicable statutes of limitations for certain tax years. During the nine months ended September 30, 2016 , the Company recognized a decrease of $3.6 million in its cumulativ e liability for gross unrecognized tax benefits due to settlements with tax authorities. There were no similar settlements during the nine months ended September 30, 2015 . The Company continues to recognize interest and penalties associated with un certain tax positions as a component of taxes on income before equity in net income of associated companies in its Condensed Consolidated Statements of Income. The Comp any recognized ($0.7) million and ($0.6) million for interest and ($0.1) million and $0.2 million for penalties in its Condensed Consolidated Statement s of Income for the three and nine months ended September 30, 2016 , respectively. The Company recognized ($0.1) million and ($0.2) million for interest and less than ($0.1) million and $0.2 million for penalties in its Condensed Consolidated Statement s of Income during the three and nine months ended September 30, 2015 , respectively . As of September 30, 2016 , the Company had accrued $0.9 million for cumulative interest and $2.1 million for cumulative penalties in its Condensed Consolidated Balance Sheets , compared to $1.5 million for cumulative interest and $1.9 million for cumulative penal ties accrued at December 31, 2015 . The Company estimates that during the year ending December 31, 2016 it will reduce its cumulative liability for gross unrecognized tax benefits by approximately $2.0 million due to the exp iration of the statute of limitations with regard to certain tax positions. This estimated reduction in the cumulative liability for unrecognized tax benefits does not consider any increase in liability for unrecognized tax benefits with regard to existin g tax positions or any increase in cumulative liability for unrecognized tax benefits with regard to new tax positions for the year ending December 31, 2016 . The Company and its subsidiaries are subject to U.S. Federal income tax, as well as the income tax of various state and foreign tax jurisdictions. Tax years that remain subject to examination by major tax jurisdictions include Brazil from 2000, Italy from 2007, France from 2008, the Netherlands and the United Kingdom from 2010 , Spain and Chi na from 2012, the United States from 2013 , and various domestic state tax jurisdictions from 1993. In the fourth quarter of 2015, the D utch tax authorities assessed the Company’s subsidiary, Quaker Chemical B.V., for additional income taxes related to the 2011 tax year and Quaker Chemical B.V. filed a protest of such assessment. During the third quarter of 2016 the Company settled with the Dutch tax authorities for matters related to transfer pricing issues for 2011, 2012, 2013, 2014, and 2015, with no cha nge to the income tax returns as filed. In the first quarter of 2016, the French tax authorities gave notice that they were auditing the Company’s subsidiary Quaker Chemical S.A, and subsequently, during the second quarter of 2016, gave notice that they closed the audit with no additional tax assessed. Also, t he Italian tax authorities have assessed additional tax due from the Company’s subsidiary , Quaker Italia S.r.l., relating to the tax years 2007, 2008, 2009 and 2010. I n the first quarter of 2016, t he Italian tax authorities delivered an audit report to Quaker Italia S.r.l. for the tax years 2011, 2012 and 2013 alleging additional tax due. As of September 30, 2016 , the Company believes it has adequate reserve s, where merited, for uncertain tax positions with respect to all of these audits . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 9 – Earnings Per Share The following table summarizes earnings per share calculations for the three and nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Basic earnings per common share Net income attributable to Quaker Chemical Corporation $ 16,008 $ 14,371 $ 43,969 $ 39,787 Less: income allocated to participating securities (130) (121) (373) (351) Net income available to common shareholders $ 15,878 $ 14,250 $ 43,596 $ 39,436 Basic weighted average common shares outstanding 13,143,884 13,209,119 13,128,996 13,206,122 Basic earnings per common share $ 1.21 $ 1.08 $ 3.32 $ 2.99 Diluted earnings per common share Net income attributable to Quaker Chemical Corporation $ 16,008 $ 14,371 $ 43,969 $ 39,787 Less: income allocated to participating securities (130) (121) (373) (350) Net income available to common shareholders $ 15,878 $ 14,250 $ 43,596 $ 39,437 Basic weighted average common shares outstanding 13,143,884 13,209,119 13,128,996 13,206,122 Effect of dilutive securities 29,960 13,333 18,829 16,181 Diluted weighted average common shares outstanding 13,173,844 13,222,452 13,147,825 13,222,303 Diluted earnings per common share $ 1.21 $ 1.08 $ 3.32 $ 2.98 The following aggregate numbers of stock options and restricted stock units are not included in the diluted earnings per share calculation since the effect would have been anti-dilutive: 0 and 3,465 for the three and nine months ended September 30, 2016 , respectively , and 7,903 and 6,460 for the three and nine months ended September 30, 2015 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets Disclosure [Text Block] | Note 10 – Goodwill and Other Intangible Assets The Company completes its annual impairment test as of the end of the third quarter of each year, or more frequently if triggering events indicate a possible impairment in one or more of its reporting units. The Company continually evaluates financial performance, economic conditions and other relevant developments in assessing if an interim period impairment test for one or more of its reporting units is necessary. The Company completed its annual im pairment assessment as of the end of the third quarter of 2016 and no impairment charge was warranted. The estimated fair value of each of the Company’s reporting units substantially exceeded its carrying value, with no reporting unit at risk for failing step one of the goodwill impairment test. In addition, the Company has recorded no impairment charges in its past. C hanges in the carrying amount of goodwill for the nine months ended September 30, 2016 were as follow s : North South America EMEA Asia/Pacific America Total Balance as of December 31, 2015 $ 42,443 $ 19,280 $ 15,244 $ 2,144 $ 79,111 Goodwill additions (reductions) 98 (114) — — (16) Currency translation adjustments (166) 137 (162) 420 229 Balance as of September 30, 2016 $ 42,375 $ 19,303 $ 15,082 $ 2,564 $ 79,324 Gross carrying amounts and accumulated amortization for definite-lived intangible assets as of September 30, 2016 and December 31, 2015 were as follows: Gross Carrying Accumulated Amount Amortization 2016 2015 2016 2015 Customer lists and rights to sell $ 68,463 $ 67,435 $ 19,110 $ 15,806 Trademarks and patents 23,823 23,147 6,978 5,538 Formulations and product technology 5,808 5,808 4,221 4,082 Other 5,986 5,788 5,082 4,565 Total definite-lived intangible assets $ 104,080 $ 102,178 $ 35,391 $ 29,991 The Compan y recorded $1.7 million and $5.3 million of amortization expense for the three and nine months ended September 30, 2016 , respectively. Comparatively, the Company recorded $1.8 million and $5.0 million of amortization expense for the three and nine months ended September 30, 2015 , respectively. Estimated annual aggregate amortization expense for the current year and subsequent five years is as follows: For the year ended December 31, 2016 $ 6,995 For the year ended December 31, 2017 6,670 For the year ended December 31, 2018 6,449 For the year ended December 31, 2019 6,347 For the year ended December 31, 2020 6,068 For the year ended December 31, 2021 5,686 The Company has two indefinite-lived intangible assets totaling $1.1 million for trademarks at September 30, 2016 and December 31, 2015 . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt [Abstract] | |
Debt Disclosure [Text Block] | Note 11 – Debt The Company’s primary credit facility is a $300.0 million syndicated multicurrency credit agreement with a group of lenders, which matures in June 2018. The maximum amount available under this credit fa cility can be increased to $400.0 million at the Company’s option if the lenders agree and the Company satisfies certain conditions. Borrowings under this credit facility generally bear interest at a base rate or LIBOR rate plus a margin. Access to this credit facility is dependen t on meeting certain financial and other covenants, but primarily depends on the Company’s consolidated leverage ratio calculation, which cannot exceed 3.50 to 1. As of September 30, 2016 and December 31, 2015 , the Company’s consolidated le verage ratio was below 1. 0 to 1, and the Company was also in compl iance with all of its other covenants. A s of September 30, 2016 and December 31, 2015 , the Company had $57.5 million and $62.9 million outstanding , respectively, unde r its credit facilit ies . The Company’s other debt obligations were primarily industrial development bonds and municipality-related loans as of September 30, 2016 and December 31, 2015 . |
Equity and Noncontrolling Inter
Equity and Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders Equity [Abstract] | |
Stockholders Equity Note Disclosure [Text Block] | Note 12 – Equity In May 2015, the Company’s Board of Directors authorized a share repurchase program for the repurchase of up to $100.0 million of Quaker Chemical Corporation common stock (the “2015 Share Repurchase Program”). The 2015 Share Repurchase Program has no expiration date. The 2015 Share Repurchase Program provides a framework of conditions under which management can repurchase shares of the Company’s common stock. The Company currently intends to repurchase shar es to at least offset the dilutive impact of shares issued each year as part of its employee benefit and share based compensation plans, and could repurchase more if the Company considers the share price to be at a level that offers an advantageous return for its shareholders. The purchases may be made in the open market or in private and negotiated transactions and will be in accordance with applicable laws, rules and regulations. In connection with the 2015 Share Repurchase Program, the remaining unuti lized 1995 and 2005 Board of Directors authorized share repurchase programs were terminated. In connection with the 2015 Share Repurchase Program, the Company acquired 83,879 shares of common stock for $ 5.9 million, during the nine mont hs ended September 30, 2016 , and 59,110 shares of common stock for $ 5.0 million during the nine months ended September 30, 2015 . The Company has elected not to hold treasury shares, and, therefore, has retired the shares as t hey are repurchased. It is the Company’s accounting policy to record the excess paid over par value as a reduction in retained earnings for all shares repurchased. The following table s present the changes in equity , net of tax, for the three and nine months ended September 30, 2016 and 2015 : Accumulated Capital in Other Common Excess of Retained Comprehensive Noncontrolling Stock Par Value Earnings Loss Interest Total Balance at June 30, 2016 $ 13,250 $ 109,751 $ 340,127 $ (71,790) $ 8,895 $ 400,233 Net income — — 16,008 — 343 16,351 Amounts reported in other comprehensive (loss) income — — — (237) 177 (60) Dividends ($0.345 per share) — — (4,575) — — (4,575) Acquisition of noncontrolling interest — — — — 40 40 Share issuance and equity-based compensation plans 7 1,671 — — — 1,678 Excess tax benefit from stock option exercises — 31 — — — 31 Balance at September 30, 2016 $ 13,257 $ 111,453 $ 351,560 $ (72,027) $ 9,455 $ 413,698 Balance at June 30, 2015 $ 13,337 $ 103,082 $ 315,060 $ (60,771) $ 7,818 $ 378,526 Net income — — 14,371 — 464 14,835 Amounts reported in other comprehensive loss — — — (10,994) (367) (11,361) Repurchases of common stock (40) — (3,319) — — (3,359) Dividends ($0.32 per share) — — (4,256) — — (4,256) Share issuance and equity-based compensation plans 9 1,735 — — — 1,744 Excess tax benefit from stock option exercises — 22 — — — 22 Balance at September 30, 2015 $ 13,306 $ 104,839 $ 321,856 $ (71,765) $ 7,915 $ 376,151 Accumulated Capital in Other Common Excess of Retained Comprehensive Noncontrolling Stock Par Value Earnings Loss Interest Total Balance at December 31, 2015 $ 13,288 $ 106,333 $ 326,740 $ (73,316) $ 8,198 $ 381,243 Net income — — 43,969 — 1,131 45,100 Amounts reported in other comprehensive income — — — 1,289 86 1,375 Repurchases of common stock (84) — (5,775) — — (5,859) Dividends ($1.01 per share) — — (13,374) — — (13,374) Acquisition of noncontrolling interest — — — — 40 40 Share issuance and equity-based compensation plans 53 4,953 — — — 5,006 Excess tax benefit from stock option exercises — 167 — — — 167 Balance at September 30, 2016 $ 13,257 $ 111,453 $ 351,560 $ (72,027) $ 9,455 $ 413,698 Balance at December 31, 2014 $ 13,301 $ 99,056 $ 299,524 $ (54,406) $ 7,660 $ 365,135 Net income — — 39,787 — 1,067 40,854 Amounts reported in other comprehensive loss — — — (17,359) (461) (17,820) Repurchases of common stock (59) — (4,930) — — (4,989) Dividends ($0.94 per share) — — (12,525) — — (12,525) Disposition of noncontrolling interest — — — — (351) (351) Share issuance and equity-based compensation plans 64 5,383 — — — 5,447 Excess tax benefit from stock option exercises — 400 — — — 400 Balance at September 30, 2015 $ 13,306 $ 104,839 $ 321,856 $ (71,765) $ 7,915 $ 376,151 The following tables show the reclassifications from and resulting balances of accumulated other comprehensive loss (“AOCI”) for the three and nine months ended September 30, 2016 and 2015 : Unrealized Currency Defined Gain (Loss) in Translation Benefit Available-for- Adjustments Pension Plans Sale Securities Total Balance at June 30, 2016 $ (38,812) $ (34,070) $ 1,092 $ (71,790) Other comprehensive (loss) income before reclassifications (892) 3 575 (314) Amounts reclassified from AOCI — 713 (280) 433 Current period other comprehensive (loss) income (892) 716 295 119 Related tax amounts — (256) (100) (356) Net current period other comprehensive (loss) income (892) 460 195 (237) Balance at September 30, 2016 $ (39,704) $ (33,610) $ 1,287 $ (72,027) Balance at June 30, 2015 $ (22,833) $ (39,124) $ 1,186 $ (60,771) Other comprehensive (loss) income before reclassifications (11,013) 170 (861) (11,704) Amounts reclassified from AOCI — 849 (179) 670 Current period other comprehensive (loss) income (11,013) 1,019 (1,040) (11,034) Related tax amounts — (313) 353 40 Net current period other comprehensive (loss) income (11,013) 706 (687) (10,994) Balance at September 30, 2015 $ (33,846) $ (38,418) $ 499 $ (71,765) Unrealized Currency Defined Gain (Loss) in Translation Benefit Available-for- Adjustments Pension Plans Sale Securities Total Balance at December 31, 2015 $ (38,544) $ (35,251) $ 479 $ (73,316) Other comprehensive (loss) income before reclassifications (1,160) 116 1,087 43 Amounts reclassified from AOCI — 2,313 136 2,449 Current period other comprehensive (loss) income (1,160) 2,429 1,223 2,492 Related tax amounts — (788) (415) (1,203) Net current period other comprehensive (loss) income (1,160) 1,641 808 1,289 Balance at September 30, 2016 $ (39,704) $ (33,610) $ 1,287 $ (72,027) Balance at December 31, 2014 $ (14,312) $ (41,551) $ 1,457 $ (54,406) Other comprehensive (loss) income before reclassifications (19,534) 1,821 (956) (18,669) Amounts reclassified from AOCI — 2,608 (495) 2,113 Current period other comprehensive (loss) income (19,534) 4,429 (1,451) (16,556) Related tax amounts — (1,296) 493 (803) Net current period other comprehensive (loss) income (19,534) 3,133 (958) (17,359) Balance at September 30, 2015 $ (33,846) $ (38,418) $ 499 $ (71,765) Approximately 70% and 30% of the amounts reclassified from accumulated other comprehensive loss to the Condensed Consolidated Statement s of Income for defined benefit retirement plans during the three and nine months ended September 30, 2016 and 2015 were recorded in SG&A and cost of goods sold, respectively. See Note 6 of Notes to Condensed Consolidated Financial Statements for further information. All reclassifications related to unrealized gain (loss) in available-for -sale securities relate to the Company’s equity interest in a captive insurance company and are recorded in equity in net income of associated companies. The amounts reported in other comprehensive income for non-controlling interest are related to curren cy translation adjustments. |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note 13 – Business Acquisitions In May 2016, the Company acquired a business that is associated with dust control products for the mining industry for its North America reportable operating segment for $ 1 .9 million. The acquisition provides a strategic opportunity to expand Quaker’s technology and product portfolio offering in the mining industry. The Company allocated $1.7 million of the purchase price to intangible assets, comprised of trademarks and form ulations, to be amortized over 15 years; a non-competition agreement, to be amortized over 5 years; and customer relationships, to be amortized over 15 years. In addition, the Company recorded $0.1 million of goodwill, related to expected value not alloca ted to other acquired assets, all of which will be tax deductible. The remaining purchase price of approximately $0.1 million was allocated to the acquisition date fair value of inventory acquired. As of September 30, 2016, the allocation of the purchase pri ce for the 2016 acquisition has not been finalized and the one-year measurement period has not ended. Adjustments may be necessary as a result of the Company’s assessment of additional information related to the fair value of assets acquired and liabiliti es assumed. In July 2015, the Company acquired Verkol, S.A. (“Verkol”), a leading specialty grease and other lubricants manufacturer based in northern Spain, included in its EMEA reportable operating segment, for 37.7 million EUR, or approximately $41.4 mi llion. This includes a post-closing adjustment of 1.3 million EUR, or approximately $1.4 million that was accrued as of December 31, 2015 and paid during the first quarter of 2016. The purchase included cash acquired of 14.1 million EUR, or approximately $15.4 million, and assumed long-term debt of 2.2 million EUR, or approximately $2.4 million. During the first six months of 2016, the Company identified and recorded certain adjustments to the allocation of the purchase price for the Verkol acquisition. These adjustments were the result of the Company assessing additional information related to assets acquired during the one-year measurement period following the acquisition. As of June 30, 2016, the allocation of the purchase price for the Verkol acquisition was finalized. The following table presents the final allocation of the purchase price of the assets acquired and liabilities assumed for the Verkol acquisition: Verkol Acquisition Current assets (includes cash acquired) $ 31,151 Property, plant and equipment 7,941 Intangibles Customer lists and rights to sell 6,146 Trademarks and patents 5,378 Other intangibles 219 Goodwill 5,051 Other long-term assets 158 Total assets purchased 56,044 Current liabilities (6,720) Long-term debt (2,400) Other long-term liabilities (5,531) Total liabilities assumed (14,651) Gross cash paid for acquisition $ 41,393 Less: cash acquired 15,423 Net cash paid for acquisition $ 25,970 In November 2014, the Company acquired Binol AB , a leading bio-lubricants producer primarily serving the Nordic region, included in it EMEA reportable operating segment, for 136.5 million SEK, or approximately $18.5 million, which is net of 4.4 million SEK, or approximately $0.5 million, received by the Company as part of a post-closing adjustment in the first quarter of 2015. The results of operations of the acquired businesses and assets are included in the Condensed Consolidated Statements of Income from their respective acquisition dates. Transaction expenses associated with these acquisitions are included in SG&A in the Company’s Condensed Consolidated Statements of Income. Certain pro forma and other information is not presented, as the o perations of the acquired businesses are not material to the overall operations of the Company for the periods presented. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 14 – Fair Value Measurements The Company has valued its company-owned life insurance policies at fair value. These assets are subject to fair value measurement as follows: Fair Value Measurements at September 30, 2016 Total Using Fair Value Hierarchy Assets Fair Value Level 1 Level 2 Level 3 Company-owned life insurance $ 1,394 $ — $ 1,394 $ — Total $ 1,394 $ — $ 1,394 $ — Fair Value Measurements at December 31, 2015 Total Using Fair Value Hierarchy Assets Fair Value Level 1 Level 2 Level 3 Company-owned life insurance $ 1,336 $ — $ 1,336 $ — Total $ 1,336 $ — $ 1,336 $ — The fair values of Company-owned life insurance assets are based on quotes for like instruments with similar credit ratings and terms. The Company did not hold any Level 3 investments as of September 30, 2016 or December 31, 2015 , respectively, so related disclosures have not been included. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments And Contingencies Disclosure [Text Block] | Note 15 – Commitments and Contingencies In 1992, the Company identified certain soil and groundwater contamination at AC Products, Inc. (“ACP”), a wholly owned subsidiary. In voluntary coordination with the Santa Ana California Regional Water Quality Board (“SACRWQB”), ACP has been remediating the contamination, the principal contaminant of which is perchloroethylene (“PERC”). In 2004, the Orange County Water District (“OCWD”) filed a civil complaint against ACP and other parties seeking to recover c ompensatory and other damages related to the investigation and remediation of the contamination in the groundwater. Pursuant to a settlement agreement with OCWD, ACP agreed, among other things, to operate two groundwater treatment systems to hydraulically contain groundwater contamination emanating from ACP’s site until the concentrations of PERC released by ACP fell below the current Federal maximum contaminant level for four consecutive quarterly sampling events. In February 2014, ACP ceased operation a t one of its two groundwater treatment systems, as it had met the above condition for closure. Based on the most recent modeling, it is estimated that the remaining system will operate for another three months to twenty-seven months . As of September 30, 2016 , the Company believes that the range of potential-known liabilities associated with the balance of the ACP water remediation program is approximately $0.1 million to $0.8 million , for which the Company has sufficient reser ves. The low and high ends of the range are based on the length of operation of the treatment system as determined by groundwater modeling. Costs of operation include the operation and maintenance of the extraction well, groundwater monitoring and program managem ent. The Company believes that it has made adequate accruals for costs associated with other environmental problems of which it is aware , although there can be no assurance regarding the outcome of other unrelated environmental matters . The Company accru ed a pproximately $0.2 million and $0.3 million at September 30, 2016 and December 31, 2015 , respectively, to provide for such anticipated future environmental assessments and remediation costs. An inactive subsidiary of the C ompany that was acquired in 1978 sold certain products containing asbestos, primarily on an installed basis, and is among the defendants in numerous lawsuits alleging injury due to exposure to asbestos. The subsidiary discontinued operations in 1991 and h as no remaining assets other than the proceeds received from insurance settlements. To date, the overwhelming majority of these claims have been disposed of without payment and there have been no adverse judgments against the subsidiary. Based on a conti nued analysis of the existing and anticipated future claims against this subsidiary, it is currently projected that the subsidiary’s total liability over the next 50 years for these claims is less than $3.0 million (excluding costs of defense). Alth ough the Company has also been named as a defendant in certain of these cases, no claims have been actively pursued against the Company, and the Company has not contributed to the defense or settlement of any of these cases pursued against the subsidiary. These cases were handled by the subsidiary’s primary and excess insurers who had agreed in 1997 to pay all defense costs and be responsible for all damages assessed against the subsidiary arising out of existing and future asbestos claims up to the aggreg ate limits of their policies. A significant portion of this primary insurance coverage was provided by an insurer that is insolvent, and the other primary insurers asserted that the aggregate limits of their policies have been exhausted. The subsidiary c hallenged the applicability of these limits to the claims being brought against the subsidiary. In response, two of the three carriers entered into separate settlement and release agreements with the subsidiary in 2005 and 2007 for $15 .0 million and $20 .0 million , respectively. The proceeds of both settlements are restricted and can only be used to pay claims and costs of defense associated with the subsidiary’s asbestos litigation. In 2007, the subsidiary and the remaining primary insurance carrier ente red into a Claim Handling and Funding Agreement, under which the carrier is paying 27% of defense and indemnity costs incurred by or on behalf of the subsidiary in connection with asbestos bodily injury claims. The agreement continues until terminated and can only be terminated by either party by providing a minimum of two years prior written notice. As of September 30, 2016 , no notice of termination has been given under this agreement. At the end of the term of the agreement, the subsidiary may cho ose to again pursue its claim against this insurer regarding the application of the policy limits . The Company believes that, if the coverage issues under the primary policies with the remaining carrier are resolved adversely to the subsidiary and all set tlement proceeds were used, the subsidiary may have limited additional coverage from a state guarantee fund established following the insolvency of one of the subsidiary’s primary insurers. Nevertheless, liabilities in respect of claims may exceed the ass ets and coverage available to the subsidiary. If the subsidiary’s assets and insurance coverage were to be exhausted, claimants of the subsidiary could actively pursue claims against the Company because of the parent-subsidiary relationship. The Company does not believe that such claims would have merit or that the Company would be held to have liability for any unsatisfied obligations of the subsidiary as a result of such claims. After evaluating the nature of the claims filed against the subsidiary and the small number of such claims that have resulted in any payment, the potential availability of additional insurance coverage at the subsidiary level, the additional availability of the Company’s own insurance and the Company’s strong defenses to claims that it should be held responsible for the subsidiary’s obligations because of the parent-subsidiary relationship, the Company believes it is not probable that the Company will incur losses. The Company has been successful to date having claims naming it dismissed during initial proceedings. Since the Company may be in this early stage of litigation for some time, it is not possible to estimate additional losses or range of loss, if any. As initially disclosed in 2010, one of the Company’s subsidiaries ma y have paid certain value-added-taxes (“VAT”) incorrectly and, in certain cases, may not have collected sufficient VAT from certain customers. The VAT rules and regulations at issue are complex, vary among the jurisdictions and can be contradictory, in pa rticular as to how they relate to the subsidiary’s products and to sales between jurisdictions. Since its inception, the subsidiary had been consistent in its VAT collection and remittance practices and had never been contacted by any tax authority relati ve to VAT. The subsidiary later determined that for certain products, a portion of the VAT was incorrectly paid an d that the total VAT due exceeded the amount originally collected and remitted by the subsidiary. In response, the subsidiary modified its V AT invoicing and payment procedures to eliminat e or mitigate future exposure. In 2010, three jurisdictions contacted the subsidiary and, since then, the subsidiary has either participated in an amnesty program or entered into a settlement whereby it paid a reduced portion of the amounts owed in resolution of those jurisdictions’ claims. In 2013, an additional jurisdiction issued an assessment against the subsidiary for certain tax years. During the fourth quarter of 2015, the subsidiary participated in an amnesty program whereby it paid a reduced portion of the amounts owed in resolution of the jurisdictions’ claims. As a result, the Company had no remaining accruals for these or any other related tax assessments at September 30, 2016 or December 31, 2015. In analyzing the subsidiary’s exposure, it is difficult to estimate both the probability and the amount of any potential liabilities due to a number of factors, including: the decrease in exposure over time due to applicable statutes of limitations and actions taken by the subsidiary, the joint liability of customers and suppliers for a portion of the VAT, the availability of a VAT refund for VAT incorrectly paid through an administrative process, any amounts which may have been or will be paid by cu stomers, as well as the timing and structure of any tax amnesties or settlements. In addition, interest and penalties on any VAT due can be a multiple of the base tax. The subsidiary may contest any tax assessment administratively and/or judicially for a n extended period of time, but may ultimately resolve its disputes through participation in tax amnesty programs, which are a common practice for settling tax disputes in the jurisdictions in question and which have historically occurred on a regular basis , resulting in significant reductions of interest and penalties. Also, the timing of payments and refunds of VAT may not be contemporaneous, and, if additional VAT is owed, it may not be fully recoverable from customers. As of September 30, 2016, the Com pany believes there is one potentially impacted jurisdiction remaining, and if the jurisdiction were to initiate audits and issue assessments, the remaining exposure, net of refunds, could be from $0 to $1.4 million, assuming the co ntinued availability of future amnesty programs or settlements to reduce the interest and penalties. If there are future assessments but no such future amnesty programs or settlements, the potential exposure could be higher. The Company is party to other litigation which management currently believes will not have a material adverse effect on the Company’s results of operations, cash flows or financial condition. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis Of Accounting Policy [Policy Text Block] | The condensed consolidated financial statements included herein are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial reporting and the United States Securities and Exchange Commission (“SEC”) regulations. Certai n information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the financial statements reflect al l adjustments (consisting only of normal recurring adjustments, except certain material adjustments, as discussed below) which are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods. The results for the nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the Company’s Annual Report filed on Form 10-K for the yea r ended December 31, 2015 . |
Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure [Policy Text Block] | As part of the Company’s chemical management services, certain third-party product sales to customers are managed by the Company. Where the Company acts as a principal, revenue is recognized on a gross reporting basis at the selling price negotiated with customers. Where the Company acts as an agent, such revenue is recorded using net reporting of service revenue , at the amount of the administrative fee earned by the Company for ordering the goods. |
Goodwill And Intangible Assets, Goodwill, Policy [Policy Text Block] | The Company completes its annual impairment test as of the end of the third quarter of each year, or more frequently if triggering events indicate a possible impairment in one or more of its reporting units. The Company continually evaluates financial performance, economic conditions and other relevant developments in assessing if an interim period impairment test for one or more of its reporting units is necessary. |
Restructuring Activities (Table
Restructuring Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | North South America EMEA Asia/Pacific America Total Accrued restructuring as of December 31, 2015 $ 1,867 $ 4,265 $ 135 $ 36 $ 6,303 Cash payments (1,318) (2,700) (137) (39) (4,194) Currency translation adjustments — 119 2 3 124 Accrued restructuring as of September 30, 2016 $ 549 $ 1,684 $ — $ — $ 2,233 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting Measurement Disclosures [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net sales North America $ 86,126 $ 90,010 $ 251,586 $ 258,977 EMEA 49,825 45,989 150,582 130,345 Asia/Pacific 45,892 46,067 130,555 138,913 South America 8,585 7,158 22,697 26,045 Total net sales $ 190,428 $ 189,224 $ 555,420 $ 554,280 Operating earnings, excluding indirect operating expenses North America $ 20,324 $ 21,893 $ 59,078 $ 59,938 EMEA 8,295 7,106 25,251 20,538 Asia/Pacific 11,737 11,250 33,865 33,874 South America 680 261 703 2,270 Total operating earnings, excluding indirect operating expenses 41,036 40,510 118,897 116,620 Indirect operating expenses (17,967) (20,031) (50,912) (53,585) Amortization expense (1,730) (1,751) (5,319) (4,998) Consolidated operating income 21,339 18,728 62,666 58,037 Other income (expense), net 514 185 1,491 (97) Interest expense (758) (697) (2,226) (1,891) Interest income 551 422 1,444 1,117 Consolidated income before taxes and equity in net income of associated companies $ 21,646 $ 18,638 $ 63,375 $ 57,166 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Share Based Compensation [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Stock options $ 215 $ 164 $ 632 $ 548 Nonvested stock awards and restricted stock units 773 668 2,366 2,179 Employee stock purchase plan 21 19 64 56 Non-elective and elective 401(k) matching contribution in stock 473 449 1,749 1,624 Director stock ownership plan 37 31 131 93 Total stock-based compensation expense $ 1,519 $ 1,331 $ 4,942 $ 4,500 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2016 Number of options granted 67,444 Dividend yield 1.49 % Expected volatility 28.39 % Risk-free interest rate 1.08 % Expected term (years) 4.0 |
Pension and Postretirement Be26
Pension and Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, Other Other Postretirement Postretirement Pension Benefits Benefits Pension Benefits Benefits 2016 2015 2016 2015 2016 2015 2016 2015 Service cost $ 672 $ 763 $ — $ 1 $ 2,025 $ 2,297 $ 8 $ 12 Interest cost 1,111 1,256 28 47 3,344 3,772 106 146 Expected return on plan assets (1,329) (1,367) — — (4,027) (4,165) — — Actuarial loss (gain) amortization 769 862 (30) 12 2,389 2,620 — 64 Prior service cost amortization (25) (25) — — (76) (76) — — Net periodic benefit cost $ 1,198 $ 1,489 $ (2) $ 60 $ 3,655 $ 4,448 $ 114 $ 222 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Income And Expenses [Abstract] | |
Schedule Of Other Nonoperating Income (Expense) [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Income from third party license fees $ 264 $ 161 $ 713 $ 619 Foreign exchange gains (losses), net 149 (79) 463 (978) Gain on fixed asset disposals, net 3 21 7 76 Non-income tax refunds and other related credits 72 72 133 141 Other non-operating income 54 53 265 179 Other non-operating expense (28) (43) (90) (134) Total other income (expense), net $ 514 $ 185 $ 1,491 $ (97) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Basic earnings per common share Net income attributable to Quaker Chemical Corporation $ 16,008 $ 14,371 $ 43,969 $ 39,787 Less: income allocated to participating securities (130) (121) (373) (351) Net income available to common shareholders $ 15,878 $ 14,250 $ 43,596 $ 39,436 Basic weighted average common shares outstanding 13,143,884 13,209,119 13,128,996 13,206,122 Basic earnings per common share $ 1.21 $ 1.08 $ 3.32 $ 2.99 Diluted earnings per common share Net income attributable to Quaker Chemical Corporation $ 16,008 $ 14,371 $ 43,969 $ 39,787 Less: income allocated to participating securities (130) (121) (373) (350) Net income available to common shareholders $ 15,878 $ 14,250 $ 43,596 $ 39,437 Basic weighted average common shares outstanding 13,143,884 13,209,119 13,128,996 13,206,122 Effect of dilutive securities 29,960 13,333 18,829 16,181 Diluted weighted average common shares outstanding 13,173,844 13,222,452 13,147,825 13,222,303 Diluted earnings per common share $ 1.21 $ 1.08 $ 3.32 $ 2.98 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | North South America EMEA Asia/Pacific America Total Balance as of December 31, 2015 $ 42,443 $ 19,280 $ 15,244 $ 2,144 $ 79,111 Goodwill additions (reductions) 98 (114) — — (16) Currency translation adjustments (166) 137 (162) 420 229 Balance as of September 30, 2016 $ 42,375 $ 19,303 $ 15,082 $ 2,564 $ 79,324 |
Schedule Of Finite Lived Intangible Assets [Table Text Block] | Gross Carrying Accumulated Amount Amortization 2016 2015 2016 2015 Customer lists and rights to sell $ 68,463 $ 67,435 $ 19,110 $ 15,806 Trademarks and patents 23,823 23,147 6,978 5,538 Formulations and product technology 5,808 5,808 4,221 4,082 Other 5,986 5,788 5,082 4,565 Total definite-lived intangible assets $ 104,080 $ 102,178 $ 35,391 $ 29,991 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense [TableText Block] | For the year ended December 31, 2016 $ 6,995 For the year ended December 31, 2017 6,670 For the year ended December 31, 2018 6,449 For the year ended December 31, 2019 6,347 For the year ended December 31, 2020 6,068 For the year ended December 31, 2021 5,686 |
Equity and Noncontrolling Int30
Equity and Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders Equity [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | Accumulated Capital in Other Common Excess of Retained Comprehensive Noncontrolling Stock Par Value Earnings Loss Interest Total Balance at June 30, 2016 $ 13,250 $ 109,751 $ 340,127 $ (71,790) $ 8,895 $ 400,233 Net income — — 16,008 — 343 16,351 Amounts reported in other comprehensive (loss) income — — — (237) 177 (60) Dividends ($0.345 per share) — — (4,575) — — (4,575) Acquisition of noncontrolling interest — — — — 40 40 Share issuance and equity-based compensation plans 7 1,671 — — — 1,678 Excess tax benefit from stock option exercises — 31 — — — 31 Balance at September 30, 2016 $ 13,257 $ 111,453 $ 351,560 $ (72,027) $ 9,455 $ 413,698 Balance at June 30, 2015 $ 13,337 $ 103,082 $ 315,060 $ (60,771) $ 7,818 $ 378,526 Net income — — 14,371 — 464 14,835 Amounts reported in other comprehensive loss — — — (10,994) (367) (11,361) Repurchases of common stock (40) — (3,319) — — (3,359) Dividends ($0.32 per share) — — (4,256) — — (4,256) Share issuance and equity-based compensation plans 9 1,735 — — — 1,744 Excess tax benefit from stock option exercises — 22 — — — 22 Balance at September 30, 2015 $ 13,306 $ 104,839 $ 321,856 $ (71,765) $ 7,915 $ 376,151 Accumulated Capital in Other Common Excess of Retained Comprehensive Noncontrolling Stock Par Value Earnings Loss Interest Total Balance at December 31, 2015 $ 13,288 $ 106,333 $ 326,740 $ (73,316) $ 8,198 $ 381,243 Net income — — 43,969 — 1,131 45,100 Amounts reported in other comprehensive income — — — 1,289 86 1,375 Repurchases of common stock (84) — (5,775) — — (5,859) Dividends ($1.01 per share) — — (13,374) — — (13,374) Acquisition of noncontrolling interest — — — — 40 40 Share issuance and equity-based compensation plans 53 4,953 — — — 5,006 Excess tax benefit from stock option exercises — 167 — — — 167 Balance at September 30, 2016 $ 13,257 $ 111,453 $ 351,560 $ (72,027) $ 9,455 $ 413,698 Balance at December 31, 2014 $ 13,301 $ 99,056 $ 299,524 $ (54,406) $ 7,660 $ 365,135 Net income — — 39,787 — 1,067 40,854 Amounts reported in other comprehensive loss — — — (17,359) (461) (17,820) Repurchases of common stock (59) — (4,930) — — (4,989) Dividends ($0.94 per share) — — (12,525) — — (12,525) Disposition of noncontrolling interest — — — — (351) (351) Share issuance and equity-based compensation plans 64 5,383 — — — 5,447 Excess tax benefit from stock option exercises — 400 — — — 400 Balance at September 30, 2015 $ 13,306 $ 104,839 $ 321,856 $ (71,765) $ 7,915 $ 376,151 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Unrealized Currency Defined Gain (Loss) in Translation Benefit Available-for- Adjustments Pension Plans Sale Securities Total Balance at June 30, 2016 $ (38,812) $ (34,070) $ 1,092 $ (71,790) Other comprehensive (loss) income before reclassifications (892) 3 575 (314) Amounts reclassified from AOCI — 713 (280) 433 Current period other comprehensive (loss) income (892) 716 295 119 Related tax amounts — (256) (100) (356) Net current period other comprehensive (loss) income (892) 460 195 (237) Balance at September 30, 2016 $ (39,704) $ (33,610) $ 1,287 $ (72,027) Balance at June 30, 2015 $ (22,833) $ (39,124) $ 1,186 $ (60,771) Other comprehensive (loss) income before reclassifications (11,013) 170 (861) (11,704) Amounts reclassified from AOCI — 849 (179) 670 Current period other comprehensive (loss) income (11,013) 1,019 (1,040) (11,034) Related tax amounts — (313) 353 40 Net current period other comprehensive (loss) income (11,013) 706 (687) (10,994) Balance at September 30, 2015 $ (33,846) $ (38,418) $ 499 $ (71,765) Unrealized Currency Defined Gain (Loss) in Translation Benefit Available-for- Adjustments Pension Plans Sale Securities Total Balance at December 31, 2015 $ (38,544) $ (35,251) $ 479 $ (73,316) Other comprehensive (loss) income before reclassifications (1,160) 116 1,087 43 Amounts reclassified from AOCI — 2,313 136 2,449 Current period other comprehensive (loss) income (1,160) 2,429 1,223 2,492 Related tax amounts — (788) (415) (1,203) Net current period other comprehensive (loss) income (1,160) 1,641 808 1,289 Balance at September 30, 2016 $ (39,704) $ (33,610) $ 1,287 $ (72,027) Balance at December 31, 2014 $ (14,312) $ (41,551) $ 1,457 $ (54,406) Other comprehensive (loss) income before reclassifications (19,534) 1,821 (956) (18,669) Amounts reclassified from AOCI — 2,608 (495) 2,113 Current period other comprehensive (loss) income (19,534) 4,429 (1,451) (16,556) Related tax amounts — (1,296) 493 (803) Net current period other comprehensive (loss) income (19,534) 3,133 (958) (17,359) Balance at September 30, 2015 $ (33,846) $ (38,418) $ 499 $ (71,765) |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Verkol Acquisition Current assets (includes cash acquired) $ 31,151 Property, plant and equipment 7,941 Intangibles Customer lists and rights to sell 6,146 Trademarks and patents 5,378 Other intangibles 219 Goodwill 5,051 Other long-term assets 158 Total assets purchased 56,044 Current liabilities (6,720) Long-term debt (2,400) Other long-term liabilities (5,531) Total liabilities assumed (14,651) Gross cash paid for acquisition $ 41,393 Less: cash acquired 15,423 Net cash paid for acquisition $ 25,970 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at September 30, 2016 Total Using Fair Value Hierarchy Assets Fair Value Level 1 Level 2 Level 3 Company-owned life insurance $ 1,394 $ — $ 1,394 $ — Total $ 1,394 $ — $ 1,394 $ — Fair Value Measurements at December 31, 2015 Total Using Fair Value Hierarchy Assets Fair Value Level 1 Level 2 Level 3 Company-owned life insurance $ 1,336 $ — $ 1,336 $ — Total $ 1,336 $ — $ 1,336 $ — |
Condensed Financial Informati33
Condensed Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment | $ 23,448 | $ 23,448 | $ 20,354 | ||||
Prior Period Reclassification Adjustment | $ 3,600 | ||||||
Revenue Recognized Under Net Reporting Arrangements | 10,700 | $ 12,100 | 32,800 | $ 36,200 | |||
Kelko (Venezuela) [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Effect Of Currency Conversion, Amount | $ 100 | $ 2,800 | |||||
Effect Of Currency Conversion, Per Diluted Share | $ 0.01 | $ 0.21 | |||||
Equity Method Investment | $ 100 | $ 100 | $ 200 |
Condensed Financial Informati34
Condensed Financial Information - Foreign currency (Details) - VEF / $ | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
CADIVI [Member] | |||||
Schedule of Foreign Currency [Line Items] | |||||
Venezuela Currency exchange rate | 6.3 | ||||
SIMADI [Member] | |||||
Schedule of Foreign Currency [Line Items] | |||||
Venezuela Currency exchange rate | 198 | 193 | |||
DIPRO [Member] | |||||
Schedule of Foreign Currency [Line Items] | |||||
Venezuela Currency exchange rate | 10 | ||||
DICOM [Member] | |||||
Schedule of Foreign Currency [Line Items] | |||||
Venezuela Currency exchange rate | 658 | 273 |
Restructuring Activities - Narr
Restructuring Activities - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Restructuring And Related Activities [Abstract] | ||
Intangible Assets Reclassified as Held for Sale | $ 0.3 | $ 0.3 |
Restructuring And Related Cost Description | The 2015 Program includes provisions for the reduction of total headcount of approximately 65 employees globally. Employee separation benefits varied depending on local regulations within certain foreign countries and included severance and other benefits. The Company still expects to substantially complete all of the initiatives under the 2015 Program in 2016 and expects settlement of these charges to occur primarily in 2016 as well. |
Restructuring Activities (Detai
Restructuring Activities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrued Restructuring, Beginning Balance | $ 6,303 |
Cash Payments | (4,194) |
Currency Translation Adjustments | 124 |
Accrued Restructuring, Ending Balance | 2,233 |
North America [Member] | |
Restructuring Reserve [Roll Forward] | |
Accrued Restructuring, Beginning Balance | 1,867 |
Cash Payments | (1,318) |
Currency Translation Adjustments | 0 |
Accrued Restructuring, Ending Balance | 549 |
EMEA [Member] | |
Restructuring Reserve [Roll Forward] | |
Accrued Restructuring, Beginning Balance | 4,265 |
Cash Payments | (2,700) |
Currency Translation Adjustments | 119 |
Accrued Restructuring, Ending Balance | 1,684 |
Asia Pacific [Member] | |
Restructuring Reserve [Roll Forward] | |
Accrued Restructuring, Beginning Balance | 135 |
Cash Payments | (137) |
Currency Translation Adjustments | 2 |
Accrued Restructuring, Ending Balance | 0 |
South America [Member] | |
Restructuring Reserve [Roll Forward] | |
Accrued Restructuring, Beginning Balance | 36 |
Cash Payments | (39) |
Currency Translation Adjustments | 3 |
Accrued Restructuring, Ending Balance | $ 0 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 190,428 | $ 189,224 | $ 555,420 | $ 554,280 |
Operating Earnings, Excluding Indirect Operating Expenses | 41,036 | 40,510 | 118,897 | 116,620 |
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Indirect Operating Expenses | (17,967) | (20,031) | (50,912) | (53,585) |
Amortization | (1,730) | (1,751) | (5,319) | (4,998) |
Operating income | 21,339 | 18,728 | 62,666 | 58,037 |
Other income (expense), net | 514 | 185 | 1,491 | (97) |
Interest Expense | (758) | (697) | (2,226) | (1,891) |
Interest Income | 551 | 422 | 1,444 | 1,117 |
Income Before Taxes and Equity in Net Income of Associated Companies | 21,646 | 18,638 | 63,375 | 57,166 |
North America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 86,126 | 90,010 | 251,586 | 258,977 |
Operating Earnings, Excluding Indirect Operating Expenses | 20,324 | 21,893 | 59,078 | 59,938 |
North America [Member] | Intersegment Sales Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 2,500 | 2,300 | 6,300 | 6,900 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 49,825 | 45,989 | 150,582 | 130,345 |
Operating Earnings, Excluding Indirect Operating Expenses | 8,295 | 7,106 | 25,251 | 20,538 |
EMEA [Member] | Intersegment Sales Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 5,300 | 5,200 | 13,200 | 14,600 |
Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 45,892 | 46,067 | 130,555 | 138,913 |
Operating Earnings, Excluding Indirect Operating Expenses | 11,737 | 11,250 | 33,865 | 33,874 |
Asia Pacific [Member] | Intersegment Sales Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 100 | 300 | 500 | 500 |
South America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 8,585 | 7,158 | 22,697 | 26,045 |
Operating Earnings, Excluding Indirect Operating Expenses | 680 | 261 | 703 | 2,270 |
South America [Member] | Intersegment Sales Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 0 | $ 0 | $ 100 | $ 100 |
Stock Based Compensation - Expe
Stock Based Compensation - Expense Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 1,519 | $ 1,331 | $ 4,942 | $ 4,500 |
Stock Options Compensation Expense [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 215 | 164 | 632 | 548 |
Nonvested Stock Awards and Restricted Stock Unit Compensation Expense [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 773 | 668 | 2,366 | 2,179 |
Employee Stock Purchase Plan Compensation Expense [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 21 | 19 | 64 | 56 |
401 (k) Matching Stock Contribution Plan Compensation Expense [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 473 | 449 | 1,749 | 1,624 |
Directors Stock Ownership Plan Compensation Expense [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 37 | $ 31 | $ 131 | $ 93 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation [Abstract] | |||||
Option Award Vesting Period | 3 years | ||||
Share Based Compensation [Line Items] | |||||
Share-based Compensation Expense in Period, Stock Option Awards | $ 1,519 | $ 1,331 | $ 4,942 | $ 4,500 | |
Stock Options [Member] | |||||
Share Based Compensation [Line Items] | |||||
Unrecognized Share-Based Compensation Expense, Stock Option Awards | 1,300 | $ 1,300 | |||
Weighted Average Remaining Life, Nonvested Stock Awards | 2 years | ||||
Restricted Stock LTIP Plan [Member] | |||||
Share Based Compensation [Line Items] | |||||
Unrecognized Share-based Compensation Expense, Nonvested Stock Award | 3,400 | $ 3,400 | |||
Weighted Average Remaining Life, Nonvested Stock Awards | 1 year 7 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 28,471 | ||||
Restricted Stock Units (RSUs) LTIP Plan [Member] | |||||
Share Based Compensation [Line Items] | |||||
Unrecognized Share-based Compensation Expense, Nonvested Stock Award | $ 200 | $ 200 | |||
Weighted Average Remaining Life, Nonvested Stock Awards | 1 year 11 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,041 |
Stock Based Compensation - Exce
Stock Based Compensation - Excess Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation [Abstract] | ||||
Excess Tax Benefit From Stock Option Exercises | $ 31 | $ 22 | $ 167 | $ 400 |
Excess tax benefit related to stock option exercises, cash flow | $ 167 | $ 400 |
Stock Based Compensation - Opti
Stock Based Compensation - Options Grant (Details) | 3 Months Ended |
Mar. 31, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted | 67,444 |
Dividend Yield | 1.49% |
Expected Volatility | 28.39% |
Risk-free Interest Rate | 1.08% |
Expected Term (Years) | 4 years |
Pension and Postretirement Be42
Pension and Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | $ 672 | $ 763 | $ 2,025 | $ 2,297 |
Defined Benefit Plan, Interest Cost | 1,111 | 1,256 | 3,344 | 3,772 |
Defined Benefit Plan, Expected Return on Plan Assets | (1,329) | (1,367) | (4,027) | (4,165) |
Defined Benefit Plan, Amortization of Losses | 769 | 862 | 2,389 | 2,620 |
Defined Benefit Plan, Amortization of Prior Service Cost | (25) | (25) | (76) | (76) |
Defined Benefit Plan, Net Periodic Benefit Cost | 1,198 | 1,489 | 3,655 | 4,448 |
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 7,500 | |||
Defined Benefit Plan, Contributions by Employer | 6,600 | |||
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 0 | 1 | 8 | 12 |
Defined Benefit Plan, Interest Cost | 28 | 47 | 106 | 146 |
Defined Benefit Plan, Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Amortization of Losses | (30) | 12 | 0 | 64 |
Defined Benefit Plan, Amortization of Prior Service Cost | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | $ (2) | $ 60 | 114 | $ 222 |
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 500 | |||
Defined Benefit Plan, Contributions by Employer | $ 400 |
Other Income (Expense) - (Detai
Other Income (Expense) - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Income And Expenses [Abstract] | ||||
Income From Third Party License Fees | $ 264 | $ 161 | $ 713 | $ 619 |
Foreign Exchange Gains (Losses), Net | 149 | (79) | 463 | (978) |
(Loss) gain on Fixed Asset Disposals, Net | 3 | 21 | 7 | 76 |
Non-Income Tax Refunds and Other Related Credits | 72 | 72 | 133 | 141 |
Other Nonoperating Income | 54 | 53 | 265 | 179 |
Other Nonoperating Expense | (28) | (43) | (90) | (134) |
Other Income (Expense), Net | $ 514 | $ 185 | $ 1,491 | $ (97) |
Income Taxes and Uncertain Ta44
Income Taxes and Uncertain Tax Positions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Effective Income Tax Rate, Continuing Operations | 31.00% | 27.30% | |||
Unrecognized Tax Benefits | $ 7.1 | $ 7.1 | $ 11 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 0.9 | 0.9 | 1.5 | ||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 2.1 | 2.1 | $ 1.9 | ||
Unrecognized Tax Benefits, Income Tax Penalties Expense | 0.2 | $ 0.2 | |||
Unrecognized Tax Benefits Interest Income On Income Taxes | (0.7) | $ (0.1) | (0.6) | (0.2) | |
Unrecognized Tax Benefits Tax Penalties Income | (0.1) | $ (0.1) | |||
Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities | 3.6 | ||||
Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations | $ 1.5 | $ 1.5 | |||
Income Tax Examination [Line Items] | |||||
Statutory Tax Rate | 25.00% | 15.00% | |||
Year End December 31, 2016 [Member] | |||||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | |||||
Decrease In Unrecognized Tax Benefits Is Reasonably Possible | $ 2 | $ 2 | |||
Internal Revenue Service (IRS) [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,013 | ||||
Foreign Tax Authority [Member] | The Netherlands [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,010 | ||||
Income Tax Examination Description | In the fourth quarter of 2015, the Dutch tax authorities assessed the Company’s subsidiary, Quaker Chemical B.V., for additional income taxes related to the 2011 tax year and Quaker Chemical B.V. filed a protest of such assessment. During the third quarter of 2016 the Company settled with the Dutch tax authorities for matters related to transfer pricing issues for 2011, 2012, 2013, 2014, and 2015, with no change to the income tax returns as filed. | ||||
Foreign Tax Authority [Member] | United Kingdom [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,010 | ||||
Foreign Tax Authority [Member] | Brazil [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,000 | ||||
Foreign Tax Authority [Member] | Spain [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,012 | ||||
Foreign Tax Authority [Member] | China [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,012 | ||||
Foreign Tax Authority [Member] | Italy [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,007 | ||||
Income Tax Examination Description | Also, the Italian tax authorities have assessed additional tax due from the Company’s subsidiary, Quaker Italia S.r.l., relating to the tax years 2007, 2008, 2009 and 2010. In the first quarter of 2016, the Italian tax authorities delivered an audit report to Quaker Italia S.r.l. for the tax years 2011, 2012 and 2013 alleging additional tax due. | ||||
Foreign Tax Authority [Member] | France [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,008 | ||||
Income Tax Examination Description | In the first quarter of 2016, the French tax authorities gave notice that they were auditing the Company’s subsidiary Quaker Chemical S.A, and subsequently, during the second quarter of 2016, gave notice that they closed the audit with no additional tax assessed. | ||||
State and Local Jurisdiction [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 1,993 |
Earnings Per Share - Basic (Det
Earnings Per Share - Basic (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net Income Attributable to Quaker Chemical Corporation | $ 16,008 | $ 14,371 | $ 43,969 | $ 39,787 |
Less: Income Allocated to Participating Securities | (130) | (121) | (373) | (351) |
Net Income Available to Common Shareholders | $ 15,878 | $ 14,250 | $ 43,596 | $ 39,436 |
Basic Weighted Average Common Shares Outstanding | 13,143,884 | 13,209,119 | 13,128,996 | 13,206,122 |
Basic Earnings Per Common Share | $ 1.21 | $ 1.08 | $ 3.32 | $ 2.99 |
Earnings Per Share - Diluted (D
Earnings Per Share - Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net Income Attributable to Quaker Chemical Corporation | $ 16,008 | $ 14,371 | $ 43,969 | $ 39,787 |
Less: Income Allocated to Participating Securities | (130) | (121) | (373) | (350) |
Net Income Available to Common Shareholders | $ 15,878 | $ 14,250 | $ 43,596 | $ 39,437 |
Basic Weighted Average Common Shares Outstanding | 13,143,884 | 13,209,119 | 13,128,996 | 13,206,122 |
Effect of Dilutive Securities | 29,960 | 13,333 | 18,829 | 16,181 |
Diluted Weighted Average Common Shares Outstanding | 13,173,844 | 13,222,452 | 13,147,825 | 13,222,303 |
Diluted Earnings per Common Share | $ 1.21 | $ 1.08 | $ 3.32 | $ 2.98 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 7,903 | 3,465 | 6,460 |
Goodwill Assets (Details)
Goodwill Assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 79,111 |
Goodwill reductions | (16) |
Goodwill, Translation Adjustments | 229 |
Goodwill, Ending Balance | 79,324 |
North America [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 42,443 |
Goodwill additions | 98 |
Goodwill, Translation Adjustments | (166) |
Goodwill, Ending Balance | 42,375 |
EMEA [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 19,280 |
Goodwill reductions | (114) |
Goodwill, Translation Adjustments | 137 |
Goodwill, Ending Balance | 19,303 |
Asia Pacific [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 15,244 |
Goodwill additions | 0 |
Goodwill, Translation Adjustments | (162) |
Goodwill, Ending Balance | 15,082 |
South America [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 2,144 |
Goodwill additions | 0 |
Goodwill, Translation Adjustments | 420 |
Goodwill, Ending Balance | $ 2,564 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Finite-Lived Customer Lists, Gross | $ 68,463 | $ 67,435 |
Finite-Lived Trademarks, Gross | 23,823 | 23,147 |
Formulations And Product Technology | 5,808 | 5,808 |
Other Finite-Lived Intangible Assets, Gross | 5,986 | 5,788 |
Total | 104,080 | 102,178 |
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 35,391 | 29,991 |
Customer Lists [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 19,110 | 15,806 |
Trademarks [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 6,978 | 5,538 |
Formulations And Product Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 4,221 | 4,082 |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 5,082 | $ 4,565 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization | $ 1,730 | $ 1,751 | $ 5,319 | $ 4,998 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
For the year ended December 31, 2016 | $ 6,995 |
For the year ended December 31, 2017 | 6,670 |
For the year ended December 31, 2018 | 6,449 |
For the year ended December 31, 2019 | 6,347 |
For the year ended December 31, 2020 | 6,068 |
For the year ended December 31, 2021 | $ 5,686 |
Intangible Assets - Finite Live
Intangible Assets - Finite Lived (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Indefinite-Lived Trademarks | $ 1.1 | $ 1.1 |
Debt - Narrative (Details)
Debt - Narrative (Details) - Line of Credit [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Line of Credit Facility Current Borrowing Capacity | $ 300 | |
Line of Credit Facility Maximum Borrowing Capacity | $ 400 | |
Line Of Credit Maturity Date | Jun. 14, 2018 | |
Line of Credit Facility, Covenant Terms | Access to this credit facility is dependent on meeting certain financial and other covenants, but primarily depends on the Company’s consolidated leverage ratio calculation, which cannot exceed 3.50 to 1. | |
Line of Credit Facility, Covenant Compliance | As of September 30, 2016 and December 31, 2015, the Company’s consolidated leverage ratio was below 1.0 to 1, and the Company was also in compliance with all of its other covenants. | |
Line of Credit Facility, Amount Outstanding | $ 57.5 | $ 62.9 |
Equity and Noncontrolling Int54
Equity and Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Beginning Balance | $ 400,233 | $ 378,526 | $ 381,243 | $ 365,135 |
Net Income | 16,351 | 14,835 | 45,100 | 40,854 |
Amounts reported in other comprehensive income (loss) | (60) | (11,361) | 1,375 | (17,820) |
Repurchases of common stock | 0 | (3,359) | (5,859) | (4,989) |
Dividends, Common Stock | (4,575) | (4,256) | (13,374) | (12,525) |
Acquisition of Noncontrolling Interest | 40 | 0 | 40 | 0 |
Disposition of Noncontrolling Interest | 0 | 0 | 0 | (351) |
Share Issuance and Equity-Based Compensation Plans | 1,678 | 1,744 | 5,006 | 5,447 |
Excess Tax Benefit From Stock Option Exercises | 31 | 22 | 167 | 400 |
Ending Balance | 413,698 | 376,151 | 413,698 | 376,151 |
Common Stock [Member] | ||||
Beginning Balance | 13,250 | 13,337 | 13,288 | 13,301 |
Net Income | 0 | 0 | 0 | 0 |
Amounts reported in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Repurchases of common stock | 0 | (40) | (84) | (59) |
Dividends, Common Stock | 0 | 0 | 0 | 0 |
Disposition of Noncontrolling Interest | 0 | 0 | 0 | 0 |
Share Issuance and Equity-Based Compensation Plans | 7 | 9 | 53 | 64 |
Excess Tax Benefit From Stock Option Exercises | 0 | 0 | 0 | 0 |
Ending Balance | 13,257 | 13,306 | 13,257 | 13,306 |
Additional Paid-in Capital [Member] | ||||
Beginning Balance | 109,751 | 103,082 | 106,333 | 99,056 |
Net Income | 0 | 0 | 0 | 0 |
Amounts reported in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 | 0 |
Dividends, Common Stock | 0 | 0 | 0 | 0 |
Disposition of Noncontrolling Interest | 0 | 0 | 0 | 0 |
Share Issuance and Equity-Based Compensation Plans | 1,671 | 1,735 | 4,953 | 5,383 |
Excess Tax Benefit From Stock Option Exercises | 31 | 22 | 167 | 400 |
Ending Balance | 111,453 | 104,839 | 111,453 | 104,839 |
Retained Earnings [Member] | ||||
Beginning Balance | 340,127 | 315,060 | 326,740 | 299,524 |
Net Income | 16,008 | 14,371 | 43,969 | 39,787 |
Amounts reported in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Repurchases of common stock | 0 | (3,319) | (5,775) | (4,930) |
Dividends, Common Stock | (4,575) | (4,256) | (13,374) | (12,525) |
Disposition of Noncontrolling Interest | 0 | 0 | 0 | 0 |
Share Issuance and Equity-Based Compensation Plans | 0 | 0 | 0 | 0 |
Excess Tax Benefit From Stock Option Exercises | 0 | 0 | 0 | 0 |
Ending Balance | 351,560 | 321,856 | 351,560 | 321,856 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Beginning Balance | (71,790) | (60,771) | (73,316) | (54,406) |
Net Income | 0 | 0 | 0 | 0 |
Amounts reported in other comprehensive income (loss) | (237) | (10,994) | 1,289 | (17,359) |
Repurchases of common stock | 0 | 0 | 0 | 0 |
Dividends, Common Stock | 0 | 0 | 0 | 0 |
Disposition of Noncontrolling Interest | 0 | 0 | 0 | 0 |
Share Issuance and Equity-Based Compensation Plans | 0 | 0 | 0 | 0 |
Excess Tax Benefit From Stock Option Exercises | 0 | 0 | 0 | 0 |
Ending Balance | (72,027) | (71,765) | (72,027) | (71,765) |
Noncontrolling Interest [Member] | ||||
Beginning Balance | 8,895 | 7,818 | 8,198 | 7,660 |
Net Income | 343 | 464 | 1,131 | 1,067 |
Amounts reported in other comprehensive income (loss) | 177 | (367) | 86 | (461) |
Repurchases of common stock | 0 | 0 | 0 | 0 |
Dividends, Common Stock | 0 | 0 | 0 | 0 |
Acquisition of Noncontrolling Interest | 40 | 0 | 40 | 0 |
Disposition of Noncontrolling Interest | 0 | 0 | 0 | (351) |
Share Issuance and Equity-Based Compensation Plans | 0 | 0 | 0 | 0 |
Excess Tax Benefit From Stock Option Exercises | 0 | 0 | 0 | 0 |
Ending Balance | $ 9,455 | $ 7,915 | $ 9,455 | $ 7,915 |
Equity and Noncontrolling Int55
Equity and Noncontrolling Interest - Parentheticals (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stockholders Equity [Abstract] | ||||
Dividends Declared | $ 0.345 | $ 0.32 | $ 1.01 | $ 0.94 |
Equity and Noncontrolling Int56
Equity and Noncontrolling Interest - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Loss, Balance at Beginning of Period | $ (71,790) | $ (60,771) | $ (73,316) | $ (54,406) |
Other Comprehensive Income (Loss) Before Reclassifications | (314) | (11,704) | 43 | (18,669) |
Amounts Reclassified from AOCI | 433 | 670 | 2,449 | 2,113 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 119 | (11,034) | 2,492 | (16,556) |
Related Tax Amounts | (356) | 40 | (1,203) | (803) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (237) | (10,994) | 1,289 | (17,359) |
Accumulated Other Comprehensive Loss, Balance at End of Period | (72,027) | (71,765) | (72,027) | (71,765) |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Loss, Balance at Beginning of Period | (38,812) | (22,833) | (38,544) | (14,312) |
Other Comprehensive Income (Loss) Before Reclassifications | (892) | (11,013) | (1,160) | (19,534) |
Amounts Reclassified from AOCI | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (892) | (11,013) | (1,160) | (19,534) |
Related Tax Amounts | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (892) | (11,013) | (1,160) | (19,534) |
Accumulated Other Comprehensive Loss, Balance at End of Period | (39,704) | (33,846) | (39,704) | (33,846) |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Loss, Balance at Beginning of Period | (34,070) | (39,124) | (35,251) | (41,551) |
Other Comprehensive Income (Loss) Before Reclassifications | 3 | 170 | 116 | 1,821 |
Amounts Reclassified from AOCI | 713 | 849 | 2,313 | 2,608 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 716 | 1,019 | 2,429 | 4,429 |
Related Tax Amounts | (256) | (313) | (788) | (1,296) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 460 | 706 | 1,641 | 3,133 |
Accumulated Other Comprehensive Loss, Balance at End of Period | (33,610) | (38,418) | (33,610) | (38,418) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Loss, Balance at Beginning of Period | 1,092 | 1,186 | 479 | 1,457 |
Other Comprehensive Income (Loss) Before Reclassifications | 575 | (861) | 1,087 | (956) |
Amounts Reclassified from AOCI | (280) | (179) | 136 | (495) |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 295 | (1,040) | 1,223 | (1,451) |
Related Tax Amounts | (100) | 353 | (415) | 493 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 195 | (687) | 808 | (958) |
Accumulated Other Comprehensive Loss, Balance at End of Period | $ 1,287 | $ 499 | $ 1,287 | $ 499 |
Equity and Noncontrolling Int57
Equity and Noncontrolling Interest - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Equity Class Of Treasury Stock [Line Items] | ||||
Shares Repurchased And Retired During Period | 83,879 | 59,110 | ||
Payments For Repurchase Of Common Stock | $ 5,859 | $ 4,989 | ||
2015 Share Repurchase Program [Member] | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Share Repurchase Program Authorized Amount | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 |
Cost of Goods Sold [Member] | ||||
Concentration Risk [Line Items] | ||||
Reclassification Percentage | 30.00% | 30.00% | 30.00% | 30.00% |
Operating Expenses [Member] | ||||
Concentration Risk [Line Items] | ||||
Reclassification Percentage | 70.00% | 70.00% | 70.00% | 70.00% |
Business Acquisitions - Table (
Business Acquisitions - Table (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Finite-Lived Customer Lists, Gross | $ 68,463 | $ 67,435 |
Finite-Lived Trademarks, Gross | 23,823 | 23,147 |
Other Finite-Lived Intangible Assets, Gross | 5,986 | 5,788 |
Goodwill | 79,324 | $ 79,111 |
Verkol [Member] | ||
Business Acquisition [Line Items] | ||
Current Assets (includes cash acquired) | 31,151 | |
Property, Plant & Equipment | 7,941 | |
Finite-Lived Customer Lists, Gross | 6,146 | |
Finite-Lived Trademarks, Gross | 5,378 | |
Other Finite-Lived Intangible Assets, Gross | 219 | |
Goodwill | 5,051 | |
Other Long-term Assets | 158 | |
Total Assets Purchased | 56,044 | |
Current Liabilities | (6,720) | |
Long-Term Debt | (2,400) | |
Other Long-Term Liabilities | (5,531) | |
Total Liabilities Assumed | (14,651) | |
Business Acquisition, Cost of Acquired Entity, Purchase Price, Gross | 41,393 | |
Cash Acquired | 15,423 | |
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 25,970 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) $ in Thousands, € in Millions, SEK in Millions | 3 Months Ended | 9 Months Ended | ||||||||||
Jun. 30, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Sep. 30, 2015EUR (€) | Sep. 30, 2015USD ($) | Mar. 31, 2015SEK | Mar. 31, 2015USD ($) | Dec. 31, 2014SEK | Dec. 31, 2014USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | |
Business Acquisition [Line Items] | ||||||||||||
Cash Paid for Acquisitions | $ 3,244 | $ 23,990 | ||||||||||
Goodwill | $ 79,111 | $ 79,324 | ||||||||||
Binol [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash Paid for Acquisitions | SEK 136.5 | $ 18,500 | ||||||||||
Post Closing Adjustment | SEK 4.4 | $ 500 | ||||||||||
Verkol [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash Paid for Acquisitions | € 37.7 | $ 41,400 | ||||||||||
Long-Term Debt | 2.2 | $ 2,400 | ||||||||||
Post Closing Adjustment | € 1.3 | $ 1,400 | ||||||||||
Cash Acquired | € 14.1 | $ 15,400 | ||||||||||
Mining North America [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash Paid for Acquisitions | $ 1,900 | |||||||||||
Inventory | 100 | |||||||||||
Goodwill | 100 | |||||||||||
Intangibles | $ 1,700 | |||||||||||
Mining North America [Member] | Customer Relationships [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible Assets, Amortizable Life | 15 years | |||||||||||
Mining North America [Member] | Noncompete Agreements [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible Assets, Amortizable Life | 5 years | |||||||||||
Mining North America [Member] | Trademarks [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Intangible Assets, Amortizable Life | 15 years |
Fair Value Measurements - Asset
Fair Value Measurements - Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Company Owned Life Insurance | $ 1,394 | $ 1,336 |
Assets, Fair Value Disclosure | 1,394 | 1,336 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Company Owned Life Insurance | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Company Owned Life Insurance | 1,394 | 1,336 |
Assets, Fair Value Disclosure | 1,394 | 1,336 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Company Owned Life Insurance | 0 | 0 |
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual At Carrying Value | $ 0.2 | $ 0.3 |
ACP [Member] | ||
Loss Contingencies [Line Items] | ||
P-2 Well Operation Range Estimate | three months to twenty-seven months | |
ACP [Member] | Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 0.8 | |
ACP [Member] | Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 0.1 | |
SB Decking [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 3 | |
Loss Contingency, Settlement Agreement, Terms | In response, two of the three carriers entered into separate settlement and release agreements with the subsidiary in 2005 and 2007 for $15.0 million and $20.0 million, respectively. The proceeds of both settlements are restricted and can only be used to pay claims and costs of defense associated with the subsidiary’s asbestos litigation. In 2007, the subsidiary and the remaining primary insurance carrier entered into a Claim Handling and Funding Agreement, under which the carrier is paying 27% of defense and indemnity costs incurred by or on behalf of the subsidiary in connection with asbestos bodily injury claims. The agreement continues until terminated and can only be terminated by either party by providing a minimum of two years prior written notice. As of September 30, 2016, no notice of termination has been given under this agreement. At the end of the term of the agreement, the subsidiary may choose to again pursue its claim against this insurer regarding the application of the policy limits. | |
VAT Assessment [Member] | Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 1.4 | |
VAT Assessment [Member] | Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 0 |