Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Document period end date | Jun. 30, 2018 |
Amendment flag | false |
Document Fiscal Year Focus | 2,018 |
Document Period Focus | Q2 |
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 | 13,330,845 |
Trading Symbol | KWR |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net Sales | $ 221,962 | $ 201,183 | $ 434,017 | $ 396,092 |
Cost of goods sold | 141,025 | 129,348 | 277,633 | 253,370 |
Gross profit | 80,937 | 71,835 | 156,384 | 142,722 |
Selling, general and administrative expenses | 54,083 | 49,594 | 104,090 | 97,648 |
Combination-related expenses | 4,291 | 4,338 | 9,500 | 13,413 |
Operating income | 22,563 | 17,903 | 42,794 | 31,661 |
Other income (expense), net | 261 | (1,571) | (108) | (1,676) |
Interest Expense | 1,602 | 780 | 3,294 | 1,436 |
Interest Income | 571 | 540 | 1,060 | 1,063 |
Income before taxes and equity in net income of associated companies | 21,793 | 16,092 | 40,452 | 29,612 |
Taxes on income before equity in net income of associated companies | 3,668 | 4,224 | 9,224 | 11,089 |
Income before equity in net income of associated companies | 18,125 | 11,868 | 31,228 | 18,523 |
Equity in net income of associated companies | 1,245 | 473 | 929 | 1,432 |
Net Income | 19,370 | 12,341 | 32,157 | 19,955 |
Less: Net income attributable to noncontrolling interest | 124 | 435 | 179 | 1,057 |
Net Income Attributable to Quaker Chemical Corporation | $ 19,246 | $ 11,906 | $ 31,978 | $ 18,898 |
Per share data: | ||||
Basic Earnings Per Common Share | $ 1.44 | $ 0.9 | $ 2.4 | $ 1.42 |
Diluted Earnings per Common Share | 1.44 | 0.89 | 2.4 | 1.42 |
Dividends Declared | $ 0.37 | $ 0.355 | $ 0.725 | $ 0.7 |
Condensed Consolidated Stateme3
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 19,370 | $ 12,341 | $ 32,157 | $ 19,955 |
Currency Translation Adjustments | (17,111) | 7,316 | (10,252) | 12,764 |
Defined Benefit Retirement Plans | 1,496 | 1,791 | 1,580 | 2,109 |
Unrealized (loss) gain on Available-for-Sale Securities | (169) | (33) | (655) | 167 |
Other Comprehensive income (loss) | (15,784) | 9,074 | (9,327) | 15,040 |
Comprehensive Income | 3,586 | 21,415 | 22,830 | 34,995 |
Less: comprehensive income attributable to noncontrolling interest | (47) | 486 | 103 | 1,628 |
Comprehensive Income Attributable to Quaker Chemical Corporation | $ 3,633 | $ 20,929 | $ 22,727 | $ 33,367 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 90,220 | $ 89,879 |
Accounts receivable, net | 213,548 | 208,358 |
Inventories | ||
Raw materials and supplies | 48,247 | 44,439 |
Work-in-process and finished goods | 47,683 | 42,782 |
Prepaid expenses and other current assets | 22,225 | 21,128 |
Total current assets | 421,923 | 406,586 |
Property, plant and equipment, at cost | 255,342 | 255,990 |
Less accumulated depreciation | (171,975) | (169,286) |
Net property, plant and equipment | 83,367 | 86,704 |
Goodwill | 84,230 | 86,034 |
Other intangible assets, net | 67,650 | 71,603 |
Investments in associated companies | 21,778 | 25,690 |
Non-current deferred tax assets | 12,602 | 15,661 |
Other assets | 32,075 | 30,049 |
Total assets | 723,625 | 722,327 |
Current liabilities | ||
Short-term borrowings and current portion of long-term debt | 5,689 | 5,736 |
Accounts and other payables | 96,815 | 97,732 |
Accrued compensation | 17,648 | 22,846 |
Other current liabilities | 31,556 | 29,384 |
Total current liabilities | 151,708 | 155,698 |
Long-term debt | 58,397 | 61,068 |
Non-current deferred tax liabilities | 8,302 | 9,653 |
Other non-current liabilities | 82,541 | 87,044 |
Total liabilities | 300,948 | 313,463 |
Equity | ||
Common stock $1 par value; authorized 30,000,000 shares; issued and outstanding 2018 - 13,330,845 shares; 2017 - 13,307,976 shares | 13,331 | 13,308 |
Capital in excess of par value | 94,984 | 93,528 |
Retained earnings | 387,498 | 365,182 |
Accumulated Other Comprehensive Loss | (74,351) | (65,100) |
Total Quaker shareholders' equity | 421,462 | 406,918 |
Noncontrolling interest | 1,215 | 1,946 |
Total equity | 422,677 | 408,864 |
Total liabilities and equity | $ 723,625 | $ 722,327 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheet (Parentheticals) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
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 | 13,330,845 | 13,307,976 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Net Income | $ 32,157 | $ 19,955 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 6,330 | 6,333 |
Amortization | 3,698 | 3,604 |
Equity in undistributed earnings of associated companies, net of dividends | 3,352 | (1,301) |
Deferred compensation and other, net | 177 | 268 |
Share-based compensation | 1,975 | 2,245 |
(Gain) loss on disposal of property, plant and equipment and other assets | (599) | (28) |
Insurance settlement realized | (481) | (446) |
Combination-related expenses, net of payments | (1,445) | 3,306 |
Pension and other postretirement benefits contributions | 2,341 | 439 |
Restructuring and adjustments | 0 | |
Increase (decrease) in cash from changes in current assets and current liabilities, net of acquisitions: | ||
Accounts receivable | (10,873) | 790 |
Inventories | (11,301) | (7,881) |
Prepaid expenses and other current assets | (2,323) | (4,686) |
Accounts payable and accrued liabilities | 1,407 | (213) |
Change in restructuring liabilities | 0 | (675) |
Net cash provided by operating activities | 19,733 | 20,832 |
Cash flows from investing activities | ||
Investments in property, plant and equipment | (5,622) | (5,242) |
Payments related to acquisitions, net of cash acquired | (500) | (5,363) |
Proceeds from disposition of assets | 668 | 43 |
Insurance settlement interest earned | 47 | 21 |
Net cash used in investing activities | (5,407) | (10,541) |
Cash flows from financing activities | ||
Proceeds from long-term debt | 0 | 6,753 |
Repayment of long-term debt | (287) | (373) |
Dividends paid | (9,453) | (9,167) |
Stock options exercised, other | (496) | (941) |
Distributions to noncontrolling affiliate shareholders | (834) | 0 |
Net cash used in financing activities | (11,070) | (3,728) |
Effect of exchange rate changes on cash | (3,346) | 3,015 |
Net (decrease) increase in cash and cash equivalents | (90) | 9,578 |
Cash, Cash Equivalents and Restricted Cash at the beginning of the period | 111,050 | 110,701 |
Cash, Cash Equivalents and Restricted Cash at the end of the period | $ 110,960 | $ 120,279 |
Condensed Financial Information
Condensed Financial Information | 6 Months Ended |
Jun. 30, 2018 | |
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. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted p ursuant to such rules and regulations. In the opinion of management, the financial statements reflect all 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 three and six months ended June 30, 2018 , respectively, are not necessarily indicative of the results to be expected for the fu ll year. These financial statements should be read in conjunction with the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2017 . During the first quarter of 2018, the Company adopted guidance regarding the accounting f or and disclosure of net sales and revenue recognition. The Company’s adoption, using the modified retrospective adoption approach, resulted in certain adjustments to its Condensed Consolidated Balance Sheet as of December 31, 2017. In addition, during t he first quarter of 2018, the Company adopted an a ccounting standard update requiring that the statement of cash flows explain both the change in total cash and cash equivalents and also the amounts generally described as restricted cash or restricted cash equivalents . The guidance in this accounting standard update was required to be applied retrospectively which resulted in certain adjustments to the Company’s Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2017. See Not e 3 of Notes to Condensed Consolidated Financial Statements. Venezuela’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”), c hanged its functional currency from the bolivar fuerte (“ BsF ”) to the U.S. dollar. 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 recor ded directly to the Condensed Consolidated Statements of Income. The current Venezuelan exchange rate system is a dual exchange rate system, which consists of a protected DIPRO exchange rate, with a rate fixed at 10 BsF per U.S. dollars and, also, a float ing exchange rate known as the DICOM. The Company does not believe it has access to the DIPRO and, therefore, believes the DICOM to be the exchange rate system available to Kelko Venezuela. Due to ongoing economic and political instability in Venezuela, the DICOM BsF per U.S. dollar exchange rate significantly decline d during both the first six months of 2018 and 2017. This ongoing devaluation of the DICOM BsF per U.S. dollar resulted in the Company recording a currency conversion charge of less than $0.1 million and $0.2 million in the three and six months ended June 30, 2018 , respectively, and $0.3 million in both the three and six months ended June 30, 2017, to remeasure its equity investment in Kelko Venezuela to the current DICOM BsF per U.S. doll ar exchange rate. These currency conversion charges were recorded through equity in net income of associated companies in the Company’s Condensed Consolidated Statement s of Income for each period. A s of June 30, 2018 , the Company’s equity inves tment in Kelko Venezuela was less than $0.1 million, valued at the current DICOM exchange rate of approximately 96,000 BsF per U.S. dollar. Based on various indices or index c ompilations currently being used to monitor inflation in Argentina as well as rec ent economic instability, effective July 1, 2018, Argentina’s economy is now considered hyper- inflationary under U.S. GAAP. This determination had no impact on the Company’s results of operations as of and for the three and six months ended June 30, 2018, but the Company does anticipate making the necessary functional currency changes for its Argentina affiliate, Quaker Chemical S.A., during the third quarter of 2018. |
Houghton Combination
Houghton Combination | 6 Months Ended |
Jun. 30, 2018 | |
Business Combination Separately Recognized Transaction [Abstract] | |
Business Combination Separately Recognized Transactions Table Text Block | Note 2 – Houghton Combination On April 4, 2017, Quaker entered into a share purchase agreement with Gulf Houghton Lubricants, Ltd. to purchase the entire issued and outstanding share capital of Houghton International, Inc. (“Houghton”) (herein referred to as “the Combination”). The shares will be bought for aggregate purchase consideration consisting of: (i) $172.5 million in cash; (ii) a number of shares of common stock, $1.00 par value per share, of the Company comprising 24.5% of the common stock outstanding upon the closing of the Combination; and (iii) the Company’s assumption of Houghton’s net indebtedness as of the closing of the Combination, which was approximately $690 million at signing. At closing, the total aggregate purchase consid eration is dependent on the Company’s stock price and the level of Houghton’s indebtedness. The Company secured $1.15 billion in commitments from Bank of America Merrill Lynch and Deutsche Bank to fund the Combination and to provide additional liquidity, a nd has since replaced these commitments with a syndicated bank agreement (“the New Credit Facility”) with a group of lenders for $1.15 billion. The New Credit Facility is contingent upon and will not be effective until the closing of the Combination. T he Company anticipates extending the bank commitment for the New Credit Facility through December 15, 2018 during the third quarter of 2018 . The New Credit Facility is comprised of a $400.0 million multicurrency revolver, a $600.0 million USD term loan and a $150.0 million EUR equival ent term loan, each with a five-year term from the date the New Credit Facility becomes effective. The maximum amount available under the New Credit Facility can be increased by $200.0 million at the Company’s option if the lenders agree and the Company s atisfies certain conditions. Borrowings under the New Credit Facility will bear interest at a base rate or LIBOR rate plus a margin. The Company currently estimates the annual floating rate cost will be in the 3.50% to 3.75% range based on current market interest rates. The New Credit Facility w ill be subject to certain financial and other covenants, including covenants that the Company’s consolidated net debt to adjusted EBITDA ratio cannot initially exceed 4.25 to 1 and the Company’s consolidated adjus ted EBITDA to interest expense ratio cannot be less than 3.0 to 1. Both the USD and EUR equivalent term loans will have quarterly principal amortization during their respective five-year terms, with 5% amortization of the principal balance due in years 1 and 2, 7.5% in year 3, and 10% in years 4 and 5, with the remaining principal amounts due at maturity. Until closing, the Company will incur certain interest costs paid to maintain the bank commitment (“ticking fees”), which began to accrue on September 2 9, 2017 and bear an interest rate of 0.30% per annum. The Company received regulatory approval for the Combination from China and Australia in 2017. In addition, at a shareholder meeting held during the third quarter of 2017, the Company’s shareholders ap proved the issuance of the new shares of the Company’s common stock at closing of the Combination. Currently, the closing of the Combination is contingent upon customary closing conditions and the remaining regulatory approvals in the United States and Eu rope. The Company continues to be in productive discussions with the European Commission and Federal Trade Commission regarding the Combination as well as potential buyers for the product lines to be divested and intends to present a remedy that meets the needs of both regulatory authorities in the third quarter of 2018. Based on the information available to date, the Company expects to receive approval from the regulatory authorities and close the Combination in the fourth quarter of 2018. The Company in curred total costs of $4.5 million and $10.6 million during the three and six months ended June 30, 2018, and $4.3 million and $13.4 million during the three and six months ended June 30, 2017, respectively, related to the Combination. These costs include d legal, environmental, financial, and other advisory and consultant costs related to due diligence, regulatory and shareholder approvals and integration planning associated with the Combination , as well as ticking fees and a gain on the sale of an availab le-for-sale asset specifically during the three and six months ended June 30, 2018 . As of June 30, 2018 and December 31, 2017 , the Company had current liabilities related to the Combination of $4.0 million and $5.5 million, respectively, p rimarily recorded within other current liabilities on its Condensed Consolidated Balance Sheets. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Note 3 – Recently Issued Accounting Standards The Financial Accounting Standards Board (“FASB”) issued an accounting standard update in June 2018 to simplify the accounting for share-based payment transactions with non-employees of the Company. The guidance within this accounting standard update generally requires that share - based payment transactions for acquiring goods or services from non - employees of the Company be accounted for under the same guidance and model as all other share-based payment t ransactions, including employees of the Company. The guidance within this accounting standard update is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company elected to early adopt the guida nce within this accounting standard updated in the second quarter of 2018 with no impact to its financial statements. The FASB issued an accounting standard update in February 2018 that allows a reclassification from accumulated other comprehensive incom e (“AOCI”) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act enacted in December 2017. The guidance within this accounting standard update is effective for annual and interim periods beginning after December 15, 2018, and should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. Early adoption is permitted. The Company has not early adopted the guidance and is currently evaluating its implementation. The FASB issued an accounting standard update in January 2017 to clarify the definition of a business with the objective of adding guidance to assist companies with evaluati ng whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this accounting standard update provide a more robust framework to use in determining when a set of assets and activities is a busine ss. The guidance within this accounting standard update is effective for annual and interim periods beginning after December 15, 2017. Early adoption was permitted in limited circumstances, and the amendments in this accounting standard update should be applied prospectively, with no disclosures required at transition. The Company adopted the guidance in the first quarter of 2018, as required, with no impact to its financial statements. The FASB issued an accounting standard update in November 2016 requi ring that the statement of cash flows explain both the change in the total cash and cash equivalents, and also the amounts generally described as restricted cash or restricted cash equivalents. This will require amounts generally described as restricted cash or restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning and ending amounts shown on the statement of cash flows. The guidance within this accounting standard update is effective for annual and interim periods beginning after December 15, 2017. Early adoption was permitted and the guidance requires application using a retrospective transition method to each period presented when adopted. The Company adopted the guidance in the first quarter of 2018, a s required. Adoption of the guidance did not have an impact on the Company’s earnings or balance sheet but did result in changes to certain disclosures within the statement of cash flows, including cash flows from investing activities and total cash, cash equivalents and restricted cash. See Note 12 of Notes to Condensed Consolidated Financial Statements. The FASB issued an accounting standard update in October 2016 to improve the accounting for the income tax consequences of intra-entity transfers of a ssets other than inventory. The provisions in this update will allow an entity to recognize current and deferred income taxes of an intra-entity transfer of an asset other than inventory when the transfer occurs rather than when the asset has been sold to an outside party. The guidance within this accounting standard update is effective for annual and interim periods beginning after December 15, 2017. Early adoption was permitted and the guidance requires application on a modified retrospective basis thr ough a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted the guidance in the first quarter of 2018, as required, with no impact to its financial statements. The FASB issued an acc ounting standard update in August 2016 to standardize how certain transactions are classified in the statement of cash flows. Specific transactions covered by the accounting standard update include debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance 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 update is effective for annual and interim periods beginning after December 15, 2017. Early adoption was permitted, provi ded that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company adopted the guidance in the first quarter of 2018 as required, with no impact to its financial statemen ts. 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 modified retrospective basis for the reporting periods presented. Early adoption is permitted, but the Company has not early adopted. As of June 30, 2018, the Company has begun its impact assessment and implementation planning, including taking an inventory of its outstanding leases gl obally, establishing a cross functional project team and evaluating software solutions that could potentially assist in facilitating the end-to-end leasing process, including adoption of this lease accounting guidance. While the Company’s implementation of th is guidance is in its early stages, the Company anticipates adoption of this guidance to have an impact on its balance sheet as it expects the majority of its operating leases will be recorded on its balance sheet by establishing right of use assets and as sociated lease liabilities. 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 accounting for revenue arising from contracts with customers, which will be common to both U.S. GAAP and International Financial Reporting Standards. The guidance was effective for annual and interim periods beginning after December 15, 2016, and allowed for full retros pective 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 were permitted to adopt the new revenue standard early but not before the original effective date. During 2016 and 2017, the FASB issued a series of account ing standard updates to clarify and expand on the implementation guidance, including principal versus agent considerations, identification of performance obligations, licensing, other technical corrections and adding certain practical expedients. The amen dments in these 2016 and 2017 updates did not change the core principles of the guidance previously issued in May 2014. As part of the Company’s impact assessment for the implementation of the new revenue recognition guidance, the Company reviewed its hist orical accounting policies and practices to identify potential differences with the requirements of the new revenue recognition standard as it related to the Company’s contracts and sales arrangements. In addition, the impact assessment and work performe d included global and cross functional interviews and questionnaires, sales agreement and other sales document reviews, as well as technical considerations for the Company’s future transactional accounting, financial reporting and disclosure requirements. The Company has also begun a preliminary assessment of how the new revenue recognition guidance may impact Houghton, as it pertains to the pending Combination. The Company adopted the guidance in the first quarter of 2018 as required, electing to use a m odified retrospective adoption approach applied to those contracts which were not completed as of January 1, 2018. Comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. In a ddition, the Company elected to apply certain of the permitted practical expedients within the revenue recognition guidance and make certain accounting policy elections including those related to significant financing components, sales taxes and shipping a nd handling activities. Adoption of the revenue recognition guidance did not have a material impact on the Company’s reported earnings or cash flows, however, adoption did increase the amount and level of disclosures concerning the Company’s net sales and did result in one adjustment to the Company’s balance sheet. As a result of the Company’s impact assessment and adoption using the modified retrospective adoption approach, the Company recorded an adjustment to its Condensed Consolidated Balance Sheet as of December 31, 2017 to adjust the Company’s estimate of variable consideration relating to customers’ expected rights to return product. This adjustment resulted in an increase to other current liabilities of $1.0 million, an increase to non-current defe rred tax assets of $0.2 million and a decrease to retained earnings of $0.8 million. There were no other impacts recorded as a result of adopting the revenue recognition guidance. The impact of adoption of the new revenue recognition guidance was immater ial for the three and six months ended June 30, 2018 and the Company expects the impact to be immaterial on an ongoing basis. See Note 4 of Notes to Condensed Consolidated Financial Statements. |
Net Sales and Revenue Recogniti
Net Sales and Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue From Contract With Customer [Text Block] | Note 4 – Net Sales and Revenue Recognition Business Description The Company develops, produces, and markets a broad range of formulated chemical specialty products and offers chemical management services (“CMS”) for various heavy industrial and manufacturing applications in a global portfolio throughout its four regions: North America, Europe, Middle East and Africa (“EMEA”), Asia/Pacific and South America. The major product lines in the Company’s global portfolio include: (i) rolling lubricants (used by manufacturers of steel in the hot and cold rolling of steel and by manufacturers of aluminum in the hot rolling of aluminum); (ii) machining and grinding compounds (used by metalworking customers in cutting, shaping, and grinding metal parts whic h require special treatment to enable them to tolerate the manufacturing process, achieve closer tolerance, and improve tool life); (iii) corrosion preventives (used by steel and metalworking customers to protect metal during manufacture, storage, and ship ment); (iv) hydraulic fluids (used by steel, metalworking, and other customers to operate hydraulic equipment); (v) specialty greases (used in automotive and aerospace production processes and applications, the manufacturing of steel, and various other app lications); and (vi) metal finishing compounds (used to prepare metal surfaces for special treatments such as galvanizing and tin plating and to prepare metal for further processing). A substantial portion of the Company’s sales worldwide are made directly through its own employees and its CMS programs, with the balance being handled through distributors and agents. The Company’s employees visit the plants of customers regularly, work on site, and, through training and experience, identify production needs which can be resolved or alleviated either by adapting the Company’s existing products or by applying new formulations developed in its laboratories. The chemical specialty industry comprises many companies of similar size as well as companies larger and smaller than Quaker. The offerings of many of the Company’s competitors differ from those of Quaker; some offer a broad portfolio of fluids, including general lubricants, while others have a more specialized product range. All competitors provide differ ent levels of technical services to individual customers. Competition in the industry is based primarily on the ability to provide products that meet the needs of the customer, render technical services and laboratory assistance to the customer and, to a l esser extent, on price. As part of the Company’s CMS, certain third-party product sales to customers are managed by the Company. Where the Company acts as a principal, revenues are recognized on a gross reporting basis at the selling price negotiated with its customers. Where the Company acts as an agent, revenue is recognized on a net reporting basis at the amount of the administrative fee earned by the Company for ordering the goods. In determining whether the Company is acting as a principal or an age nt in each arrangement, the Company considers whether it is primarily responsible for fulfilling the promise to provide the specified good, has inventory risk before the specified good has been transferred to the customer and has discretion in establishing the prices for the specified goods. Third-party products transferred under arrangements resulting in net reporting totaled $12.5 million and $24.1 million for the three and six months ended June 30 , 2018 , respectively, and $11.4 million and $21.8 million for the three and six months ended June 30, 2017, respectively. A significant portion of the Company’s revenues are realized from the sale of process fluids and services to manufacturers of steel, automobiles, aircraft, appliances, and durable goods, and, therefore, the Company is subject to the same business cycles as those experienced by these manufacturers and their customers. The Company’s financial performance is generally correlated to the volume of global production within the industries it serves, rather than discretely related to financial performance of such industries. Furthermore, steel customers typically have limited manufacturing locations compared to other metalworking customers and generally use higher volumes of products at a single locat ion. As previously disclosed in its Annual Report filed on Form 10-K for the year ended December 31, 2017, during 2017 the Company’s five largest customers (each composed of multiple subsidiaries or divisions with semiautonomous purchasing authority) acco unted for approximately 18% of consolidated net sales, with its largest customer accounting for approximately 8% of consolidated net sales. Revenue Recognition Model The Company applies the FASB’s guidance on revenue recognition which requires the Company to recognize revenue in an amount that reflects the consideration to which the Company expects to be entitled in exchange for goods or services transferred to its customers. To do this, the Company applies the five-step model in the FASB’s guidanc e, which requires the Company to: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contrac t; and (v) recognize revenue when, or as, the Company satisfies a performance obligation. The Company identifies a contract with a customer when a sales agreement indicates approval and commitment of the parties; identifies the rights of the parties; ident ifies the payment terms; has commercial substance; and it is probable that the Company will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. In most instances, the Compa ny’s contract with a customer is the customer’s purchase order. For certain customers, the Company may also enter into a sales agreement which outlines a framework of terms and conditions which apply to all future and subsequent purchase orders for that c ustomer. In these situations, the Company’s contract with the customer is both the sales agreement as well as the specific customer purchase order. Because the Company’s contract with a customer is typically for a single transaction or customer purchase order, the duration of the contract is almost always one year or less. As a result, the Company has elected to apply certain practical expedients and omit certain disclosures of remaining performance obligations for contracts which have an initial term of one year or less as permitted by the FASB. The Company identifies a performance obligation in a contract for each promised good or service that is separately identifiable from other promises in the contract and for which the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer. The Company determines the transaction price as the amount of consideration it expects to be entitled to in exchange for fulfilling the performa nce obligations, including the effects of any variable consideration, significant financing elements, amounts payable to the customer or noncash consideration. For any contracts that have more than one performance obligation, the Company allocates the tra nsaction price to each performance obligation in an amount that depicts the amount of consideration to which the Company expects to be entitled in exchange for satisfying each performance obligation. In accordance with the last step of the FASB’s guidance, the Company recognizes revenue when, or as, it satisfies the performance obligation in a contract by transferring control of a promised good or service to the customer. The Company recognizes revenue over time whenever the customer simultaneously receive s and consumes the benefits provided by the Company’s performance; the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or the Company’s performance does not create an asset with an alternat ive use to the entity, and the entity has an enforceable right to payment, including a profit margin, for performance completed to date. For performance obligations not satisfied over time, the Company determines the point in time at which a customer obta ins control of a promised asset and the Company satisfies a performance obligation by considering when the Company has a right to payment for the asset; the customer has legal title to the asset; the Company has transferred physical possession of the asset ; the customer has the significant risks and rewards of ownership of the asset; or the customer has accepted the asset. The Company typically satisfies its performance obligations and recognizes revenue at a point in time for product sales, generally when products are shipped or delivered to the customer, depending on the terms underlying each arrangement. In circumstances where the Company’s products are on consignment, revenue is generally recognized upon usage or consumption by the customer. For any CM S or other services provided by the Company to the customer, the Company typically satisfies its performance obligations and recognizes revenue over time, as the promised services are performed. The Company uses input methods to recognize revenue over tim e related to these services, including labor costs and time incurred. The Company believes that these input methods represent the most indicative measure of the CMS or other service work performed by the Company. Other Considerations The Company does not have standard payment terms for all customers globally, however the Company’s general payment terms require customers to pay for products or services provided after the performance obligation is satisfied. The Company does not have significant financing a rrangements with its customers. The Company does not have significant amounts of variable consideration in its contracts with customers and where applicable, the Company’s estimates of variable consideration are not constrained. The Company records certa in third-party license fees in other income (expense), net, in its Condensed Consolidated Statement of Income, which generally include sales-based royalties in exchange for the license of intellectual property. These license fees are recognized in accorda nce with their agreed-upon terms and when performance obligations are satisfied, which is generally when the third party has a subsequent sale. Practical Expedients and Accounting Policy Elections The Company has made certain accounting policy elections and elected to use certain practical expedients as permitted by the FASB in applying the guidance on revenue recognition. It is the Company’s policy to not adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. In addition, it is the Company’s polic y to expense costs to obtain a contract as incurred when the expected period of benefit, and therefore the amortization period, is one year or less. It is also the Company’s accounting policy to exclude from the measurement of the transaction price all ta xes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer, including sales, use, value added, excise and various other taxes. Lastly, the Comp any has elected to account for shipping and handling activities that occur after the customer has obtained control of a good as a fulfilment cost rather than an additional promised service. Contract Assets and Liabilities The Company recognizes a contract asset or receivable on its Condensed Consolidated Balance Sheet when the Company performs a service or transfers a good in advance of receiving consideration. A receivable is the Company’s right to consideration that is unconditional and only the passage of time is required before payment of that consideration is due. A contract asset is the Company’s right to consideration in exchange for goods or services that the Company has transferred to a customer. The Company had no contract assets recorded on its Condensed Consolidated Balance Sheets as of June 30 , 2018 or December 31, 2017. A contract liability is recognized when the Company receives consideration, or if it has the unconditional right to receive consideration, in advance of performance. A contra ct liability is the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration, or a specified amount of consideration is due, from the customer. The Company’s contract liabilities primarily represent deferred revenue recorded for customer payments received by the Company prior to the Company satisfying the associated performance obligation. Deferred revenues are presented within other current liabilities in the Company’s Condensed Consolidated Balanc e Sheets. Th e Company had approximately $ 1.6 million and $1.5 million of deferred revenue as of June 30 , 2018 and December 31, 2017, respectively. During the three and six months ended June 30, 2018 the Company satisfied the associated performance obligation s and recognized revenue of $ 1.3 million and $2.8 million, respectively, related to advance customer payments previously received. Disaggregated Revenue The Company sells its various industrial process fluids, its chemical specialties and its technical expertise as a global product portfolio. The Company generally manages and evaluates its performance by geography first, and then by customer industry, rather than by individual product lines. The Compa ny has provided annual net sales information for its product lines greater than 10% in its previously filed Form 10-K for the year ended December 31, 2017, and those annual percentages are generally consistent with the current year ’s net sales by product l ine. Also, net sales of each of the Company’s major product lines are generally spread throughout all four of the Company’s regions, and in most cases, are relatively proportionate to the level of total sales in each region. The following disaggregates the Company’s net sales by region, customer industry, and timing of revenue recognized for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 North South Consolidated America EMEA Asia/Pacific America Total Net sales $ 97,392 $ 60,166 $ 55,348 $ 9,056 $ 221,962 Customer Industries Primary metals $ 35,453 $ 26,187 $ 35,040 $ 5,035 $ 101,715 Metalworking 46,646 29,762 19,328 3,865 99,601 Coatings and other 15,293 4,217 980 156 20,646 $ 97,392 $ 60,166 $ 55,348 $ 9,056 $ 221,962 Timing of Revenue Recognized Product sales at a point in time $ 94,562 $ 60,110 $ 53,017 $ 8,987 $ 216,676 Services transferred over time 2,830 56 2,331 69 5,286 $ 97,392 $ 60,166 $ 55,348 $ 9,056 $ 221,962 Six Months Ended June 30, 2018 North South Consolidated America EMEA Asia/Pacific America Total Net sales $ 189,212 $ 122,221 $ 104,125 $ 18,459 $ 434,017 Customer Industries Primary metals $ 76,726 $ 53,504 $ 65,918 $ 10,334 $ 206,482 Metalworking 83,520 60,923 36,901 7,648 188,992 Coatings and other 28,966 7,794 1,306 477 38,543 $ 189,212 $ 122,221 $ 104,125 $ 18,459 $ 434,017 Timing of Revenue Recognized Product sales at a point in time $ 183,548 $ 122,109 $ 99,865 $ 18,306 $ 423,828 Services transferred over time 5,664 112 4,260 153 10,189 $ 189,212 $ 122,221 $ 104,125 $ 18,459 $ 434,017 |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting Measurement Disclosures [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 5 – Business Segments The Company’s reportable operating segments are organized by geography as follows: (i) North America, (ii) 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 cost of goods sold (“ COGS”) 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 re spective report able operating segment. Other items not specifically identified with the Company’s reportable operating segments include interest expense, interest income, license fees from non-co nsolidated affiliates, amortization expense and other income (expense), net . The following table presents information about the performance of the Company’s reportable operating segments for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Net sales North America $ 97,392 $ 90,331 $ 189,212 $ 177,672 EMEA 60,166 54,507 122,221 108,434 Asia/Pacific 55,348 47,724 104,125 92,874 South America 9,056 8,621 18,459 17,112 Total net sales $ 221,962 $ 201,183 $ 434,017 $ 396,092 Operating earnings, excluding indirect operating expenses North America $ 23,237 $ 19,621 $ 43,602 $ 40,258 EMEA 9,096 8,217 19,389 17,463 Asia/Pacific 14,621 11,812 26,763 22,055 South America 1,114 1,064 1,749 1,861 Total operating earnings, excluding indirect operating expenses 48,068 40,714 91,503 81,637 Combination-related expenses (4,291) (4,338) (9,500) (13,413) Indirect operating expenses (19,369) (16,642) (35,511) (32,959) Amortization expense (1,845) (1,831) (3,698) (3,604) Consolidated operating income 22,563 17,903 42,794 31,661 Other income (expense), net 261 (1,571) (108) (1,676) Interest expense (1,602) (780) (3,294) (1,436) Interest income 571 540 1,060 1,063 Consolidated income before taxes and equity in net income of associated companies $ 21,793 $ 16,092 $ 40,452 $ 29,612 Inter-segment revenue s for the three and six months ended June 30, 2018 were $1.8 million and $4.8 million for North America, $5.4 million and $11.0 million for EMEA, $0.1 million and $0.4 million for Asia/Pacific , respectively, and less than $0.1 million for South America in both periods . Inter-segment revenue s for the three and six months ended June 30, 2017 were $2.5 million and $4.6 million for North America, $5.0 million and $9.8 million for EMEA, less than $0.1 million and $0.1 million for Asia/Pacific , respectively, and less than $0.1 million for South America in both periods . However, all inter-segment transactions have been eliminated from each reportable operating seg ment’s net sales and earnings for all periods presented above. |
Restructuring and Related Activ
Restructuring and Related Activities | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring And Related Activities Disclosure [TextBlock] | Note 6 – Restructuring and Related Activities As previously disclosed in its Annual Report filed on Form 10-K for the year ended December 31, 2017, in the fourth quarter of 2015 Quaker’s management approved a global restructuring plan (the “2015 Program”) to reduce its operating costs. The 2015 Program included provisions for the reduction of total headcount of approximately 65 employees globally. The Company completed all of the remaining initiatives under the 2015 Program during the first half of 2017 and does not expect to incur further restructuring charges under this program. Restructuring activity recognized by reportable operating segment in connection with the 2015 Program during the six months ended June 30, 2017 is as follows: North America EMEA Total Accrued restructuring as of December 31, 2016 $ 196 $ 474 $ 670 Restructuring charges and adjustments (126) 126 — Cash payments (70) (605) (675) Currency translation adjustments — 5 5 Accrued restructuring as of June 30, 2017 $ — $ — $ — There were no accrued restructuring liabilities as of December 31, 2017 and no associated cash payments or other restructuring activity during the six months ended June 30, 2018. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Share Based Compensation [Abstract] | |
Disclosure Of Compensation Related Costs Share Based Payments [Text Block] | Note 7 – Share -Based Compensation The Company recognized the following share -based compensation expense in SG&A in its Condensed Consolidated Stateme nts of Income for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Stock options $ 266 $ 244 $ 518 $ 471 Nonvested stock awards and restricted stock units 576 795 1,351 1,597 Employee stock purchase plan 22 21 44 44 Non-elective and elective 401(k) matching contribution in stock — — — 64 Director stock ownership plan 28 32 62 69 Total share-based compensation expense $ 892 $ 1,092 $ 1,975 $ 2,245 During the first quarter of 2018 , the Company granted stock options under its long-term incentive plan (“ LTIP ”) 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 use d the Black-Scholes option pricing model and the assumptions set forth in the table below: Number of options granted 35,842 Dividend yield 1.37 % Expected volatility 24.73 % Risk-free interest rate 2.54 % Expected term (years) 4.0 The fair value of these options is amortized on a straight-line basis over the vesting period. As of June 30, 2018 , unrecognized compensation expense related to options granted was $1.8 million, to be recognized over a weighted average remaining period of 2.1 years. There were no stock options granted in the second quarter of 2018. During the first six months of 2018, the Company granted 15,544 nonvested restricted shares and 1,480 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 Company adjusts the grant date fair value of these a wards for expected forfeitures based on historical experience. As of June 30, 2018 , unrecognized compensation expense related to the nonvested shares was $3.1 million, to be recognized over a weighted average remaining period of 1.9 years, and unrecognized compensation expense related to nonvested restricted stock units was $0.3 million, to be recognized over a weighted average remaining period of 2.2 years. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 6 Months Ended |
Jun. 30, 2018 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Pension And Other Postretirement Benefits Disclosure [Text Block] | Note 8 – Pension and Other Postretirement Benefits The components of net periodic benefit cost for the three and six months ended June 30, 2018 and 2017 are as follows: Three Months Ended June 30, Six Months Ended June 30, Other Other Postretirement Postretirement Pension Benefits Benefits Pension Benefits Benefits 2018 2017 2018 2017 2018 2017 2018 2017 Service cost $ 960 $ 871 $ 3 $ 1 $ 1,948 $ 1,789 $ 5 $ 4 Interest cost 1,032 1,003 33 39 2,081 2,011 66 72 Expected return on plan assets (1,274) (1,255) — — (2,564) (2,581) — — Settlement charge — 1,860 — — — 1,860 — — Actuarial loss amortization 793 792 14 22 1,593 1,661 29 27 Prior service cost amortization (29) (25) — — (60) (48) — — Net periodic benefit cost $ 1,482 $ 3,246 $ 50 $ 62 $ 2,998 $ 4,692 $ 100 $ 103 During the second quarter of 2017, the Company’s U.S. pension plan offered a cash settlement to its vested terminated participants which allowed them to receive the value of their pension benefits as a single lump sum payment. As payments from the U.S. pension plan for this cash- out offering exceeded the service and interest cost components of the U.S. pension plan expense for 2017, the Company recorded a settlement charge of approximately $1.9 million . This settlement charge represents the immediate recognition into expense of a portion of the unrecognized loss within AOCI on the balance sheet in proportion to the share of the projected benefit obligation that was settled by these payments. The gross pension benefit obligatio n was reduced by approximately $4.0 million as a result of these payments . The settlement charge was recognized through other expense , net, on the Company’s Condensed C onsolidated S tatement of Income for the three and six months ended June 30, 2017. Emplo yer Contributions The Company previously disclosed in its financial statements for the year ended December 31, 2017 , that it expected to make minimum cash contributions of $9.9 million to its pension plans and $0.4 million to its other postretireme nt benefit plans in 2018 . As of June 30, 2018 , $4.9 million and $0.2 million of contributions have been made to the Company’s pension plans and its postretirement benefit plans, respectively. |
Other Income (Expense)
Other Income (Expense) | 6 Months Ended |
Jun. 30, 2018 | |
Other Income And Expenses [Abstract] | |
Other Income And Other Expense Disclosure [Text Block] | Note 9 – Other Income ( Expense) , Net The components of other income ( expense) , net, for the three and six months ended June 30, 2018 and 2017 are as follows: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Income from third party license fees $ 189 $ 202 $ 439 $ 471 Foreign exchange (losses) gains, net (493) 249 (722) 35 Gain on fixed asset disposals, net 547 13 599 28 Non-income tax refunds and other related credits 505 324 541 618 Pension and postretirement benefit costs, non-service components (569) (2,436) (1,145) (3,002) Other non-operating income 102 110 259 241 Other non-operating expense (20) (33) (79) (67) Total other income (expense), net $ 261 $ (1,571) $ (108) $ (1,676) Gain on fixed asset disposals, net, during the three and six months ended June 30, 2018 includes a $0.6 million gain on the sale of an available-for-sale asset. |
Income Taxes and Uncertain Tax
Income Taxes and Uncertain Tax Positions | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 10 – Income Taxes and Uncertain Income Tax Positions The Company’s effective tax rate for the three and six months ended June 30, 2018 were 16.8% and 22.8% , respectively, compared to 26.2% and 37.4% , respectively, for the three and six months ended June 30, 2017 . The Company’s effective tax rates for each of the periods presented include the impact of certain non-deductible costs related to the pending Houghton Combination. The Company’s effective tax rate for the three and six m onths ended June 30, 2018 includes a $1. 2 million tax adjustment to decrease the Company’s initial fourth quarter of 2017 estimate of the one-time deemed repatriation of undistributed earnings (“Transition Tax”) as part of the Tax Cuts and Jobs Act (“U.S. Tax Reform”), described below. In addition to these items, the Company’s current year effective tax rate benefited from the decrease in the U.S. statutory tax rate from 35% in the prior year to 21% in the current year as a result of U.S. Tax Reform. Durin g the three and six months ended June 30, 2018 , the Company recorded a $1.2 million tax adjustment to decrease its initial estimate of the Transition Tax on previously untaxed accumulated and current earnings and profits of certain of the Company’s foreign sub sidiaries. The adjustment was specifically related to the Company’s initial estimate of the U.S. state tax impact of the Transition Tax based on guidance recently issued during the second quarter of 2018 by various state taxing authorities. The Company h as not to date made any other significant changes to its initial assessments made during the fourth quarter of 2017. As previously disclosed in its Annual Report filed on Form 10-K for the year ended December 31, 2017, the U.S. government enacted comprehen sive tax legislation commonly referred to as U.S. Tax Reform on December 22, 2017. U.S. Tax Reform includes multiple changes to the U.S. tax code with varying effects on the Company’s results for the six months ended June 30, 2018. The SEC staff issued g uidance on accounting for the tax effects of U.S. Tax Reform and provided a one-year measurement period for companies to complete the accounting. Companies are required to reflect the income tax effects of those aspects of U.S. Tax Reform for which the ac counting is complete. To the extent that a company’s accounting for certain income tax effects of U.S. Tax Reform are incomplete but the company is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. The Company has made reasonable interpretations and assumptions with regard to various uncertainties and ambiguities in the application of certain provisions of U.S. Tax Reform. The Company is continuing to evaluate all of the provisions of U.S. Tax Ref orm and expects to finalize its assessment during the one-year measurement period provided by the SEC to complete the a ccounting for U.S. Tax Reform. It is possible that the Internal Revenue Service or the U.S. Department of the Treasury could issue subsequent guidance or take positions on audit that differ from the Company’s in terpretations and assumptions. As of June 30, 2018 , the Company’s cumulative liability for gross unrecognized tax benefits was $7.2 million. As of December 31, 2017 , the Company’s cumulative liability for gross unrecognized tax benefits was $6.8 million. The Company continues to recognize interest and penalties associated with uncertain tax positions as a component of taxes on income befo re equity in net income of associated companies in its Condensed Consolidated Statements of Income. The Company recognized an expense for interest of less than $0.1 million and $0.1 million and an expense for penalties of $0.1 million and $0.2 million for the three and six months ended June 30, 2018 . Comparatively, the Company recognized an expense of $0.1 million and a credit of $0.1 million for interest, and an expense of $0.1 million and $0.1 milli on for penalties for the three and six months ended June 30, 2017 , respectively. As of June 30, 2018 , the Company had accrued $0.7 million for cumulative interest and $1.2 million for cumulative penalties in its Condensed Consolidated Balance Sheets, compared to $0.6 million for cumulative interest and $1.0 million for cumulative penalties accrued at December 31, 2017 . During the six months ended June 30, 2018 and 2017 , the Company recognized a decrease of $0.3 million and $0.4 million, respectively, in its cumulative liability for gross unrecognized tax benefits due to the expiration of the applicable statutes of limitations for ce rtain tax years. The Company estimates that during the year ending December 31, 2018 it will reduce its cumulative liability for gross unrecognized tax benefits by approximately $1.0 to $1.1 million due to the expiration of the st atute 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 existing tax positions o r any increase in cumulative liability for unrecognized tax benefits with regard to new tax positions for the year ending December 31, 2018 . The Company and its subsidiaries are subject to U.S. Federal income tax, as well as the income tax of var ious state and foreign tax jurisdictions. Tax years that remain subject to examination by major tax jurisdi ctions include Brazil from 2000; Italy from 2007 ; the Netherlands and the United Kingdom from 2012 ; Spain, China and Mexico from 2013 ; India from its fiscal year beginning April 1, 2013 and ending March 31, 2014; the United States from 2014 , and various domestic state tax jurisdictions from 2008. As previously reported, the Italian tax authorities have assessed additional tax due from the Company’s su bsidiary, Quaker Italia S.r.l ., relating to the tax years 2007 through 2013. During the second quarter of 2018, the Italian tax authorities assessed additional tax due from Quaker Italia, S.r.l ., relating to the tax years 2014 and 2015. The Company has f iled a request for settlement for these additional assessments. If settlement discussions are not successful, the Company will file for competent authority relief from these assessments under the Mutual Agreement Procedures of the Organization for Economi c Co-Operation and Development , consistent with the Company’s previous filings for 2008 through 2013. As of June 30, 2018 , the Company bel ieves it has adequate reserves for uncertain tax positions with respect to these and all other audits. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 11 – Earnings Per Share The following table summarizes earnings per share calculations for the three and six months ended June 30, 2018 and 2017 : Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Basic earnings per common share Net income attributable to Quaker Chemical Corporation $ 19,246 $ 11,906 $ 31,978 $ 18,898 Less: income allocated to participating securities (83) (82) (147) (145) Net income available to common shareholders $ 19,163 $ 11,824 $ 31,831 $ 18,753 Basic weighted average common shares outstanding 13,267,504 13,195,053 13,256,327 13,185,627 Basic earnings per common share $ 1.44 $ 0.90 $ 2.40 $ 1.42 Diluted earnings per common share Net income attributable to Quaker Chemical Corporation $ 19,246 $ 11,906 $ 31,978 $ 18,898 Less: income allocated to participating securities (83) (82) (147) (145) Net income available to common shareholders $ 19,163 $ 11,824 $ 31,831 $ 18,753 Basic weighted average common shares outstanding 13,267,504 13,195,053 13,256,327 13,185,627 Effect of dilutive securities 29,884 45,226 31,619 45,310 Diluted weighted average common shares outstanding 13,297,388 13,240,279 13,287,946 13,230,937 Diluted earnings per common share $ 1.44 $ 0.89 $ 2.40 $ 1.42 Certain stock options and restricted stock units are not included in the diluted earnings per share calculation since the effect would have been anti-dilutive. The calculated amount of anti-diluted shares not included were 6,189 and 4,546 for the three and six months ended June 30, 2018, respectively, and 5,278 and 4,894 for the three and six months ended June 30, 2017, respectively. |
Restricted Cash
Restricted Cash | 6 Months Ended |
Jun. 30, 2018 | |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | |
Cash And Cash Equivalents Disclosure [Text Block] | Note 12 – Restricted Cash The Company has restricted cash recorded in other assets related to proceeds from an inactive subsidiary of the Company which previously executed separate settlement and release agreements with two of its insurance carriers for an original total value of $35.0 million. 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 . Due to the restricted nature of the proceeds, a corre sponding deferred credit was established in other non-current liabilities for an equal and offsetting amount, and will remain until the restrictions lapse or the funds are exhausted via payments of claims and costs of defense. The following table provides a reconciliation of cash, cash equivalents and restricted cash as of June 30, 2018 and 2017 and December 31, 2017 and 2016: June 30, December 31, 2018 2017 2017 2016 Cash and cash equivalents $ 90,220 $ 98,821 $ 89,879 $ 88,818 Restricted cash included in other assets 20,740 21,458 21,171 21,883 Cash, cash equivalents and restricted cash $ 110,960 $ 120,279 $ 111,050 $ 110,701 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets Disclosure [Text Block] | Note 13 – Goodwill and Other Intangible Assets The Company completes its annual impairment test during the fourth 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. T he Company has recorded no impairment charges in its past. C hanges in the carrying amount of goodwill for the six months ended June 30, 2018 were as follow s : North South America EMEA Asia/Pacific America Total Balance as of December 31, 2017 $ 47,571 $ 20,504 $ 15,456 $ 2,503 $ 86,034 Currency translation adjustments (166) (837) (418) (383) (1,804) Balance as of June 30, 2018 $ 47,405 $ 19,667 $ 15,038 $ 2,120 $ 84,230 Gross carrying amounts and accumulated amortization for definite-lived intangible assets as of June 30, 2018 and December 31, 2017 were as follows: Gross Carrying Accumulated Amount Amortization 2018 2017 2018 2017 Customer lists and rights to sell $ 75,351 $ 76,581 $ 27,414 $ 25,394 Trademarks, formulations and product technology 33,538 33,025 15,359 14,309 Other 5,990 6,114 5,556 5,514 Total definite-lived intangible assets $ 114,879 $ 115,720 $ 48,329 $ 45,217 The Company recorded $1.8 million and $3.7 million of amortization expense for the three and six months ended June 30, 2018 , respectively. Comparatively, the Company recorded $1.8 million and $3.6 million of amortization expense for the three and six months ended June 30, 2017 , respectively. Estimated annual aggregate amortization expense for the current year and subsequent five years is as follows: For the year ended December 31, 2018 $ 7,416 For the year ended December 31, 2019 7,212 For the year ended December 31, 2020 6,928 For the year ended December 31, 2021 6,564 For the year ended December 31, 2022 6,406 For the year ended December 31, 2023 6,184 The Company has two indefinite-lived intangible assets totaling $1.1 million for trademarks as of June 30, 2018 and December 31, 2017 . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt [Abstract] | |
Debt Disclosure [Text Block] | Note 14 – Debt The Company’s primary credit facility (“the Credit Facility”) is a $300.0 million syndicated multicurrency credit agreement with a group of lenders. The Credit Facility was amended and restated to extend the maturity date from June 2019 to October 2019 in the second quarter of 2018, and the Company anticipates further extending the Credit Facility maturity date through December 15, 2019 during the third quarter of 2018. The maximum amount available under the Credit Facility can be i ncreased to $400.0 million at the Company’s option if the lenders agree and the Company satisfies certain conditions. Borrowings under the Credit Facility generally bear interest at a base rate or LIBOR rate plus a margin. The Credit Facility has certain financial and other covenants, with the key financial covenant requiring that the Company’s consolidated net debt to adjusted EBITDA ratio cannot exceed 3.50 to 1. As of June 30, 2018, and December 31, 2017, the Company’s net debt to adjusted EBITDA rati o was below 1.0 to 1, and the Company was also in compliance with all of its other covenants. As of June 30, 2018, and December 31, 2017, the Company had total credit facility borrowings of $46.2 million and $48.5 million, primarily under the Credit Facility. The Company’s other debt obligations were primarily industrial development bonds and municipality-related loans as of June 30, 2018 and December 31, 2017, which includes a $5.0 million industrial development bond that matures in December 2018. This bond is included within the caption Short-term borrowings and current portion of long-term debt on the Company’s Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017. The Company expects to repay the amount due for this bond at its maturity. |
Equity and Noncontrolling Inter
Equity and Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders Equity [Abstract] | |
Stockholders Equity Note Disclosure [Text Block] | Note 15 – Equity The following table s present the changes in equity , net of tax, for the three and six months ended June 30, 2018 and 2017 : Accumulated Capital in Other Common Excess of Retained Comprehensive Noncontrolling Stock Par Value Earnings Loss Interest Total Balance at March 31, 2018 $ 13,323 $ 93,731 $ 373,185 $ (58,738) $ 1,262 $ 422,763 Net income — — 19,246 — 124 19,370 Amounts reported in other comprehensive loss — — — (15,613) (171) (15,784) Dividends ($0.37 per share) — — (4,933) — — (4,933) Share issuance and equity-based compensation plans 8 1,253 — — — 1,261 Balance at June 30, 2018 $ 13,331 $ 94,984 $ 387,498 $ (74,351) $ 1,215 $ 422,677 Balance at March 31, 2017 $ 13,291 $ 112,838 $ 366,819 $ (81,961) $ 10,988 $ 421,975 Net income — — 11,906 — 435 12,341 Amounts reported in other comprehensive income — — — 9,023 51 9,074 Dividends ($0.355 per share) — — (4,724) — — (4,724) Share issuance and equity-based compensation plans 19 909 — — — 928 Balance at June 30, 2017 $ 13,310 $ 113,747 $ 374,001 $ (72,938) $ 11,474 $ 439,594 Accumulated Capital in Other Common Excess of Retained Comprehensive Noncontrolling Stock Par Value Earnings Loss Interest Total Balance at December 31, 2017 $ 13,308 $ 93,528 $ 365,182 $ (65,100) $ 1,946 $ 408,864 Net income — — 31,978 — 179 32,157 Amounts reported in other comprehensive loss — — — (9,251) (76) (9,327) Dividends ($0.725 per share) — — (9,662) — — (9,662) Distributions to noncontrolling affiliate — — — — (834) (834) Share issuance and equity-based compensation plans 23 1,456 — — — 1,479 Balance at June 30, 2018 $ 13,331 $ 94,984 $ 387,498 $ (74,351) $ 1,215 $ 422,677 Balance at December 31, 2016 $ 13,278 $ 112,475 $ 364,414 $ (87,407) $ 9,846 $ 412,606 Net income — — 18,898 — 1,057 19,955 Amounts reported in other comprehensive income — — — 14,469 571 15,040 Dividends ($0.70 per share) — — (9,311) — — (9,311) Share issuance and equity-based compensation plans 32 1,272 — — — 1,304 Balance at June 30, 2017 $ 13,310 $ 113,747 $ 374,001 $ (72,938) $ 11,474 $ 439,594 The following tables show the reclassifications from and resulting balances of AOCI for the three and six months ended June 30, 2018 and 2017 : Unrealized Currency Defined Gain (Loss) in Translation Benefit Available-for- Adjustments Pension Plans Sale Securities Total Balance at March 31, 2018 $ (25,129) $ (34,009) $ 400 $ (58,738) Other comprehensive (loss) income before reclassifications (16,940) 1,161 (895) (16,674) Amounts reclassified from AOCI — 779 681 1,460 Current period other comprehensive (loss) income (16,940) 1,940 (214) (15,214) Related tax amounts — (444) 45 (399) Net current period other comprehensive (loss) income (16,940) 1,496 (169) (15,613) Balance at June 30, 2018 $ (42,069) $ (32,513) $ 231 $ (74,351) Balance at March 31, 2017 $ (47,327) $ (35,850) $ 1,216 $ (81,961) Other comprehensive income before reclassifications 7,265 268 225 7,758 Amounts reclassified from AOCI — 2,650 (275) 2,375 Current period other comprehensive income (loss) 7,265 2,918 (50) 10,133 Related tax amounts — (1,127) 17 (1,110) Net current period other comprehensive income (loss) 7,265 1,791 (33) 9,023 Balance at June 30, 2017 $ (40,062) $ (34,059) $ 1,183 $ (72,938) Unrealized Currency Defined Gain (Loss) in Translation Benefit Available-for- Adjustments Pension Plans Sale Securities Total Balance at December 31, 2017 $ (31,893) $ (34,093) $ 886 $ (65,100) Other comprehensive (loss) income before reclassifications (10,176) 464 (1,338) (11,050) Amounts reclassified from AOCI — 1,562 509 2,071 Current period other comprehensive (loss) income (10,176) 2,026 (829) (8,979) Related tax amounts — (446) 174 (272) Net current period other comprehensive (loss) income (10,176) 1,580 (655) (9,251) Balance at June 30, 2018 $ (42,069) $ (32,513) $ 231 $ (74,351) Balance at December 31, 2016 $ (52,255) $ (36,168) $ 1,016 $ (87,407) Other comprehensive income (loss) before reclassifications 12,193 (73) 890 13,010 Amounts reclassified from AOCI — 3,500 (635) 2,865 Current period other comprehensive income 12,193 3,427 255 15,875 Related tax amounts — (1,318) (88) (1,406) Net current period other comprehensive income 12,193 2,109 167 14,469 Balance at June 30, 2017 $ (40,062) $ (34,059) $ 1,183 $ (72,938) Approximately 75% and 25 % of the amounts reclassified from AOCI to the Condensed Consolidated Statement s of Income for defined benefit retirement plans during the three and six months ended June 30, 2018 and 2017 were recorded in SG&A and COGS , respectively. See Note 8 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 currency translation adjustments. |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note 16 – Business Acquisitions In March 2018, the Company purchased certain formulations and product technology for the mining industry for its North America reportable operating segment for $1.0 million. The Company allocated the entire purchase price to intangible assets representing formulations and product technology, to be amortized over 10 years. In accordance with the terms of the agreement, $0.5 million of the purchase price was paid at signing, with the remaining $0.5 million of the purch ase price expected to be paid within the next 12 months and recorded as an other current liability on the Company’s Condensed Consolidated Balance Sheet as of June 30, 2018. In December 2017, the Company acquired the remaining 45% ownership interest in its India affiliate, Quaker Chemical India Private Limited, for 2,025.0 million INR or approximately $31.8 million. In May 2017, the Company acquired assets associated with a business that markets, sells and manufactures certain metalworking fluids for its N orth America reportable operating segment for 7.3 million CAD or approximately $5.4 million. In November 2016, the Company acquired Lubricor Inc. and its affiliated entities (“Lubricor”), a metalworking fluids manufacturer headquartered in Waterloo, Onta rio, for its North America reportable operating segment for 16.0 million CAD or approximately $12.0 million. During the first quarter of 2017, the Company identified and recorded an adjustment to the allocation of the purchase price for the Lubricor acqu isition. The adjustment was the result of finalizing a post-closing settlement based on the Company’s assessment of additional information related to assets acquired and liabilities assumed. As of December 31, 2017, the allocation of the purchase price for all of the Company’s 2016 and 2017 acquisitions were finalized. The results of operations of the acquired businesses and assets are included in the Condensed Consolidated Statements of Income from their respective acquisition dates. Trans action 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 are not presented, as the operations of the acquired businesses are not material to the overall operations of the Company for the periods presented. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 17 – 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 June 30, 2018 Total Using Fair Value Hierarchy Assets Fair Value Level 1 Level 2 Level 3 Company-owned life insurance $ 1,591 $ — $ 1,591 $ — Total $ 1,591 $ — $ 1,591 $ — Fair Value Measurements at December 31, 2017 Total Using Fair Value Hierarchy Assets Fair Value Level 1 Level 2 Level 3 Company-owned life insurance $ 1,594 $ — $ 1,594 $ — Total $ 1,594 $ — $ 1,594 $ — 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 June 30, 2018 or December 31, 2017 , respectively, so related disclosures have not been included. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments And Contingencies Disclosure [Text Block] | Note 18 – Commitments and Contingencies The Company previously disclosed in its Annual Report filed on Form 10-K for the year ended December 31, 2017 that AC Products, Inc. (“ACP”), a wholly owned subsidiary, has been operating a groundwater treatment system to hydraulically contain groundwater contamination emanating from ACP’s site, the principal contaminant of which is perchloroethylene (“PERC”). A s of June 30, 2018 , ACP believes it is close to meeting the conditions for closure of the groundwater treatment system, but continues to operate this system while in discussions with the relevant authorities. As of June 30, 2018 , the C ompany believes that the range of potential-known liabilities associated with the balance of the ACP water remediation program is approximately $0.1 million to $1.0 million. The low and high ends of the range are based on the length of opera tion 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 management. The Company previously disclosed in its Annual Report file d on Form 10-K for the year ended December 31, 2017 that an inactive subsidiary of the Company that was acquired in 1978 sold certain products containing asbestos, primarily on an installed basis, and is among the defendants in numerous lawsuits alleging i njury due to exposure to asbestos. During the three and six months ended June 30, 2018, there have been no significant changes to the facts or circumstances of this matter previously disclosed, aside from on-going claims and routine payments associated wi th this litigation. Based on a continued 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 approximately $1.9 million (excluding costs of defense). The Company believes, although there can be no assurance regarding the outcome of other unrelated environmental matters, that it has made adequate accruals for costs associated with other environmental problems of which it is aware. A pproximately $0.2 million was accrued at June 30, 2018 and December 31, 2017 , respectively, to provide for such anticipated future environmental assessments and remediation costs. The Company is party to other litigati on 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) | 6 Months Ended |
Jun. 30, 2018 | |
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. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted p ursuant to such rules and regulations. In the opinion of management, the financial statements reflect all 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 three and six months ended June 30, 2018 , respectively, are not necessarily indicative of the results to be expected for the fu ll year. These financial statements should be read in conjunction with the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2017 . |
Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure [Policy Text Block] | As part of the Company’s CMS, certain third-party product sales to customers are managed by the Company. Where the Company acts as a principal, revenues are recognized on a gross reporting basis at the selling price negotiated with its customers. Where the Company acts as an agent, revenue is recognized on a net reporting basis at the amount of the administrative fee earned by the Company for ordering the goods. |
Revenue Recognition [Policy Text Block] | The Company applies the FASB’s guidance on revenue recognition which requires the Company to recognize revenue in an amount that reflects the consideration to which the Company expects to be entitled in exchange for goods or services transferred to its customers. To do this, the Company applies the five-step model in the FASB’s guidanc e, which requires the Company to: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contrac t; and (v) recognize revenue when, or as, the Company satisfies a performance obligation. |
Revenue Recognition Deferred Revenue [Policy Text Block] | A contract liability is recognized when the Company receives consideration, or if it has the unconditional right to receive consideration, in advance of performance. A contra ct liability is the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration, or a specified amount of consideration is due, from the customer. The Company’s contract liabilities primarily represent deferred revenue recorded for customer payments received by the Company prior to the Company satisfying the associated performance obligation. Deferred revenues are presented within other current liabilities in the Company’s Condensed Consolidated Balanc e Sheets. |
Goodwill And Intangible Assets, Goodwill, Policy [Policy Text Block] | The Company completes its annual impairment test during the fourth 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. |
Net Sales and Revenue Recogni26
Net Sales and Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disaggregation Of Revenue [Abstract] | |
Disaggregation Of Revenue [Table Text Block] | Three Months Ended June 30, 2018 North South Consolidated America EMEA Asia/Pacific America Total Net sales $ 97,392 $ 60,166 $ 55,348 $ 9,056 $ 221,962 Customer Industries Primary metals $ 35,453 $ 26,187 $ 35,040 $ 5,035 $ 101,715 Metalworking 46,646 29,762 19,328 3,865 99,601 Coatings and other 15,293 4,217 980 156 20,646 $ 97,392 $ 60,166 $ 55,348 $ 9,056 $ 221,962 Timing of Revenue Recognized Product sales at a point in time $ 94,562 $ 60,110 $ 53,017 $ 8,987 $ 216,676 Services transferred over time 2,830 56 2,331 69 5,286 $ 97,392 $ 60,166 $ 55,348 $ 9,056 $ 221,962 Six Months Ended June 30, 2018 North South Consolidated America EMEA Asia/Pacific America Total Net sales $ 189,212 $ 122,221 $ 104,125 $ 18,459 $ 434,017 Customer Industries Primary metals $ 76,726 $ 53,504 $ 65,918 $ 10,334 $ 206,482 Metalworking 83,520 60,923 36,901 7,648 188,992 Coatings and other 28,966 7,794 1,306 477 38,543 $ 189,212 $ 122,221 $ 104,125 $ 18,459 $ 434,017 Timing of Revenue Recognized Product sales at a point in time $ 183,548 $ 122,109 $ 99,865 $ 18,306 $ 423,828 Services transferred over time 5,664 112 4,260 153 10,189 $ 189,212 $ 122,221 $ 104,125 $ 18,459 $ 434,017 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting Measurement Disclosures [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Net sales North America $ 97,392 $ 90,331 $ 189,212 $ 177,672 EMEA 60,166 54,507 122,221 108,434 Asia/Pacific 55,348 47,724 104,125 92,874 South America 9,056 8,621 18,459 17,112 Total net sales $ 221,962 $ 201,183 $ 434,017 $ 396,092 Operating earnings, excluding indirect operating expenses North America $ 23,237 $ 19,621 $ 43,602 $ 40,258 EMEA 9,096 8,217 19,389 17,463 Asia/Pacific 14,621 11,812 26,763 22,055 South America 1,114 1,064 1,749 1,861 Total operating earnings, excluding indirect operating expenses 48,068 40,714 91,503 81,637 Combination-related expenses (4,291) (4,338) (9,500) (13,413) Indirect operating expenses (19,369) (16,642) (35,511) (32,959) Amortization expense (1,845) (1,831) (3,698) (3,604) Consolidated operating income 22,563 17,903 42,794 31,661 Other income (expense), net 261 (1,571) (108) (1,676) Interest expense (1,602) (780) (3,294) (1,436) Interest income 571 540 1,060 1,063 Consolidated income before taxes and equity in net income of associated companies $ 21,793 $ 16,092 $ 40,452 $ 29,612 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | North America EMEA Total Accrued restructuring as of December 31, 2016 $ 196 $ 474 $ 670 Restructuring charges and adjustments (126) 126 — Cash payments (70) (605) (675) Currency translation adjustments — 5 5 Accrued restructuring as of June 30, 2017 $ — $ — $ — |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Six Months Ended June 30, June 30, 2018 2017 2018 2017 Stock options $ 266 $ 244 $ 518 $ 471 Nonvested stock awards and restricted stock units 576 795 1,351 1,597 Employee stock purchase plan 22 21 44 44 Non-elective and elective 401(k) matching contribution in stock — — — 64 Director stock ownership plan 28 32 62 69 Total share-based compensation expense $ 892 $ 1,092 $ 1,975 $ 2,245 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Number of options granted 35,842 Dividend yield 1.37 % Expected volatility 24.73 % Risk-free interest rate 2.54 % Expected term (years) 4.0 |
Pension and Postretirement Be30
Pension and Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, Other Other Postretirement Postretirement Pension Benefits Benefits Pension Benefits Benefits 2018 2017 2018 2017 2018 2017 2018 2017 Service cost $ 960 $ 871 $ 3 $ 1 $ 1,948 $ 1,789 $ 5 $ 4 Interest cost 1,032 1,003 33 39 2,081 2,011 66 72 Expected return on plan assets (1,274) (1,255) — — (2,564) (2,581) — — Settlement charge — 1,860 — — — 1,860 — — Actuarial loss amortization 793 792 14 22 1,593 1,661 29 27 Prior service cost amortization (29) (25) — — (60) (48) — — Net periodic benefit cost $ 1,482 $ 3,246 $ 50 $ 62 $ 2,998 $ 4,692 $ 100 $ 103 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Income And Expenses [Abstract] | |
Schedule Of Other Nonoperating Income (Expense) [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Income from third party license fees $ 189 $ 202 $ 439 $ 471 Foreign exchange (losses) gains, net (493) 249 (722) 35 Gain on fixed asset disposals, net 547 13 599 28 Non-income tax refunds and other related credits 505 324 541 618 Pension and postretirement benefit costs, non-service components (569) (2,436) (1,145) (3,002) Other non-operating income 102 110 259 241 Other non-operating expense (20) (33) (79) (67) Total other income (expense), net $ 261 $ (1,571) $ (108) $ (1,676) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Basic earnings per common share Net income attributable to Quaker Chemical Corporation $ 19,246 $ 11,906 $ 31,978 $ 18,898 Less: income allocated to participating securities (83) (82) (147) (145) Net income available to common shareholders $ 19,163 $ 11,824 $ 31,831 $ 18,753 Basic weighted average common shares outstanding 13,267,504 13,195,053 13,256,327 13,185,627 Basic earnings per common share $ 1.44 $ 0.90 $ 2.40 $ 1.42 Diluted earnings per common share Net income attributable to Quaker Chemical Corporation $ 19,246 $ 11,906 $ 31,978 $ 18,898 Less: income allocated to participating securities (83) (82) (147) (145) Net income available to common shareholders $ 19,163 $ 11,824 $ 31,831 $ 18,753 Basic weighted average common shares outstanding 13,267,504 13,195,053 13,256,327 13,185,627 Effect of dilutive securities 29,884 45,226 31,619 45,310 Diluted weighted average common shares outstanding 13,297,388 13,240,279 13,287,946 13,230,937 Diluted earnings per common share $ 1.44 $ 0.89 $ 2.40 $ 1.42 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | |
Schedule Of Cash And Cash Equivalents [Table Text Block] | June 30, December 31, 2018 2017 2017 2016 Cash and cash equivalents $ 90,220 $ 98,821 $ 89,879 $ 88,818 Restricted cash included in other assets 20,740 21,458 21,171 21,883 Cash, cash equivalents and restricted cash $ 110,960 $ 120,279 $ 111,050 $ 110,701 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 $ 47,571 $ 20,504 $ 15,456 $ 2,503 $ 86,034 Currency translation adjustments (166) (837) (418) (383) (1,804) Balance as of June 30, 2018 $ 47,405 $ 19,667 $ 15,038 $ 2,120 $ 84,230 |
Schedule Of Finite Lived Intangible Assets [Table Text Block] | Gross Carrying Accumulated Amount Amortization 2018 2017 2018 2017 Customer lists and rights to sell $ 75,351 $ 76,581 $ 27,414 $ 25,394 Trademarks, formulations and product technology 33,538 33,025 15,359 14,309 Other 5,990 6,114 5,556 5,514 Total definite-lived intangible assets $ 114,879 $ 115,720 $ 48,329 $ 45,217 |
Schedule of Finite Lived Intangible Assets Future Amortization Expense [TableText Block] | For the year ended December 31, 2018 $ 7,416 For the year ended December 31, 2019 7,212 For the year ended December 31, 2020 6,928 For the year ended December 31, 2021 6,564 For the year ended December 31, 2022 6,406 For the year ended December 31, 2023 6,184 |
Equity and Noncontrolling Int35
Equity and Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 March 31, 2018 $ 13,323 $ 93,731 $ 373,185 $ (58,738) $ 1,262 $ 422,763 Net income — — 19,246 — 124 19,370 Amounts reported in other comprehensive loss — — — (15,613) (171) (15,784) Dividends ($0.37 per share) — — (4,933) — — (4,933) Share issuance and equity-based compensation plans 8 1,253 — — — 1,261 Balance at June 30, 2018 $ 13,331 $ 94,984 $ 387,498 $ (74,351) $ 1,215 $ 422,677 Balance at March 31, 2017 $ 13,291 $ 112,838 $ 366,819 $ (81,961) $ 10,988 $ 421,975 Net income — — 11,906 — 435 12,341 Amounts reported in other comprehensive income — — — 9,023 51 9,074 Dividends ($0.355 per share) — — (4,724) — — (4,724) Share issuance and equity-based compensation plans 19 909 — — — 928 Balance at June 30, 2017 $ 13,310 $ 113,747 $ 374,001 $ (72,938) $ 11,474 $ 439,594 Accumulated Capital in Other Common Excess of Retained Comprehensive Noncontrolling Stock Par Value Earnings Loss Interest Total Balance at December 31, 2017 $ 13,308 $ 93,528 $ 365,182 $ (65,100) $ 1,946 $ 408,864 Net income — — 31,978 — 179 32,157 Amounts reported in other comprehensive loss — — — (9,251) (76) (9,327) Dividends ($0.725 per share) — — (9,662) — — (9,662) Distributions to noncontrolling affiliate — — — — (834) (834) Share issuance and equity-based compensation plans 23 1,456 — — — 1,479 Balance at June 30, 2018 $ 13,331 $ 94,984 $ 387,498 $ (74,351) $ 1,215 $ 422,677 Balance at December 31, 2016 $ 13,278 $ 112,475 $ 364,414 $ (87,407) $ 9,846 $ 412,606 Net income — — 18,898 — 1,057 19,955 Amounts reported in other comprehensive income — — — 14,469 571 15,040 Dividends ($0.70 per share) — — (9,311) — — (9,311) Share issuance and equity-based compensation plans 32 1,272 — — — 1,304 Balance at June 30, 2017 $ 13,310 $ 113,747 $ 374,001 $ (72,938) $ 11,474 $ 439,594 |
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 March 31, 2018 $ (25,129) $ (34,009) $ 400 $ (58,738) Other comprehensive (loss) income before reclassifications (16,940) 1,161 (895) (16,674) Amounts reclassified from AOCI — 779 681 1,460 Current period other comprehensive (loss) income (16,940) 1,940 (214) (15,214) Related tax amounts — (444) 45 (399) Net current period other comprehensive (loss) income (16,940) 1,496 (169) (15,613) Balance at June 30, 2018 $ (42,069) $ (32,513) $ 231 $ (74,351) Balance at March 31, 2017 $ (47,327) $ (35,850) $ 1,216 $ (81,961) Other comprehensive income before reclassifications 7,265 268 225 7,758 Amounts reclassified from AOCI — 2,650 (275) 2,375 Current period other comprehensive income (loss) 7,265 2,918 (50) 10,133 Related tax amounts — (1,127) 17 (1,110) Net current period other comprehensive income (loss) 7,265 1,791 (33) 9,023 Balance at June 30, 2017 $ (40,062) $ (34,059) $ 1,183 $ (72,938) Unrealized Currency Defined Gain (Loss) in Translation Benefit Available-for- Adjustments Pension Plans Sale Securities Total Balance at December 31, 2017 $ (31,893) $ (34,093) $ 886 $ (65,100) Other comprehensive (loss) income before reclassifications (10,176) 464 (1,338) (11,050) Amounts reclassified from AOCI — 1,562 509 2,071 Current period other comprehensive (loss) income (10,176) 2,026 (829) (8,979) Related tax amounts — (446) 174 (272) Net current period other comprehensive (loss) income (10,176) 1,580 (655) (9,251) Balance at June 30, 2018 $ (42,069) $ (32,513) $ 231 $ (74,351) Balance at December 31, 2016 $ (52,255) $ (36,168) $ 1,016 $ (87,407) Other comprehensive income (loss) before reclassifications 12,193 (73) 890 13,010 Amounts reclassified from AOCI — 3,500 (635) 2,865 Current period other comprehensive income 12,193 3,427 255 15,875 Related tax amounts — (1,318) (88) (1,406) Net current period other comprehensive income 12,193 2,109 167 14,469 Balance at June 30, 2017 $ (40,062) $ (34,059) $ 1,183 $ (72,938) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at June 30, 2018 Total Using Fair Value Hierarchy Assets Fair Value Level 1 Level 2 Level 3 Company-owned life insurance $ 1,591 $ — $ 1,591 $ — Total $ 1,591 $ — $ 1,591 $ — Fair Value Measurements at December 31, 2017 Total Using Fair Value Hierarchy Assets Fair Value Level 1 Level 2 Level 3 Company-owned life insurance $ 1,594 $ — $ 1,594 $ — Total $ 1,594 $ — $ 1,594 $ — |
Condensed Financial Informati37
Condensed Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment | $ 21,778 | $ 21,778 | $ 25,690 | ||
Kelko (Venezuela) [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Effect Of Currency Conversion, Amount | 100 | $ 300 | 200 | $ 300 | |
Equity Method Investment | $ 100 | $ 100 |
Condensed Financial Informati38
Condensed Financial Information - Foreign currency (Details) | Jun. 30, 2018 / $ |
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 | 96,000 |
Houghton Combination (Details)
Houghton Combination (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Business Combination Separately Recognized Transactions [Line Items] | |||||
BusinessCombinationSeparatelyRecognizedTransactionsDescription | On April 4, 2017, Quaker entered into a share purchase agreement with Gulf Houghton Lubricants, Ltd. to purchase the entire issued and outstanding share capital of Houghton International, Inc. (“Houghton”) (herein referred to as “the Combination”). The shares will be bought for aggregate purchase consideration consisting of: (i) $172.5 million in cash; (ii) a number of shares of common stock, $1.00 par value per share, of the Company comprising 24.5% of the common stock outstanding upon the closing of the Combination; and (iii) the Company’s assumption of Houghton’s net indebtedness as of the closing of the Combination, which was approximately $690 million at signing. At closing, the total aggregate purchase consideration is dependent on the Company’s stock price and the level of Houghton’s indebtedness. The Company secured $1.15 billion in commitments from Bank of America Merrill Lynch and Deutsche Bank to fund the Combination and to provide additional liquidity, and has since replaced these commitments with a syndicated bank agreement (“the New Credit Facility”) with a group of lenders for $1.15 billion. The New Credit Facility is contingent upon and will not be effective until the closing of the Combination. The Company anticipates extending the bank commitment for the New Credit Facility through December 15, 2018 during the third quarter of 2018. The New Credit Facility is comprised of a $400.0 million multicurrency revolver, a $600.0 million USD term loan and a $150.0 million EUR equivalent term loan, each with a five-year term from the date the New Credit Facility becomes effective. The maximum amount available under the New Credit Facility can be increased by $200.0 million at the Company’s option if the lenders agree and the Company satisfies certain conditions. Borrowings under the New Credit Facility will bear interest at a base rate or LIBOR rate plus a margin. The Company currently estimates the annual floating rate cost will be in the 3.50% to 3.75% range based on current market interest rates. The New Credit Facility will be subject to certain financial and other covenants, including covenants that the Company’s consolidated net debt to adjusted EBITDA ratio cannot initially exceed 4.25 to 1 and the Company’s consolidated adjusted EBITDA to interest expense ratio cannot be less than 3.0 to 1. Both the USD and EUR equivalent term loans will have quarterly principal amortization during their respective five-year terms, with 5% amortization of the principal balance due in years 1 and 2, 7.5% in year 3, and 10% in years 4 and 5, with the remaining principal amounts due at maturity. Until closing, the Company will incur certain interest costs paid to maintain the bank commitment (“ticking fees”), which began to accrue on September 29, 2017 and bear an interest rate of 0.30% per annum. | ||||
Business Combination Transaction-Related Expenses | $ 4.5 | $ 4.3 | $ 10.6 | $ 13.4 | |
Business Combination Liabilities | $ 4 | $ 4 | $ 5.5 |
Net Sales and Revenue Recogni40
Net Sales and Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Revenues [Abstract] | |||||
Net Reporting Amount | $ 12.5 | $ 11.4 | $ 24.1 | $ 21.8 | |
Deferred Revenue | 1.6 | 1.6 | $ 1.5 | ||
Deferred Revenue Revenue Recognized 1 | $ 1.3 | $ 2.8 | |||
Top Five Customers Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 18.00% | ||||
Top Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 8.00% |
Net Sales and Revenue Recogni41
Net Sales and Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Product Information [Line Items] | ||||
Net Sales | $ 221,962 | $ 201,183 | $ 434,017 | $ 396,092 |
North America [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 97,392 | 90,331 | 189,212 | 177,672 |
EMEA [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 60,166 | 54,507 | 122,221 | 108,434 |
Asia Pacific [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 55,348 | 47,724 | 104,125 | 92,874 |
South America [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 9,056 | $ 8,621 | 18,459 | $ 17,112 |
Transferred At Point In Time [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 216,676 | 423,828 | ||
Transferred At Point In Time [Member] | North America [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 94,562 | 183,548 | ||
Transferred At Point In Time [Member] | EMEA [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 60,110 | 122,109 | ||
Transferred At Point In Time [Member] | Asia Pacific [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 53,017 | 99,865 | ||
Transferred At Point In Time [Member] | South America [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 8,987 | 18,306 | ||
Transferred Over Time [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 5,286 | 10,189 | ||
Transferred Over Time [Member] | North America [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 2,830 | 5,664 | ||
Transferred Over Time [Member] | EMEA [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 56 | 112 | ||
Transferred Over Time [Member] | Asia Pacific [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 2,331 | 4,260 | ||
Transferred Over Time [Member] | South America [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 69 | 153 | ||
Primary Metals [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 101,715 | 206,482 | ||
Primary Metals [Member] | North America [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 35,453 | 76,726 | ||
Primary Metals [Member] | EMEA [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 26,187 | 53,504 | ||
Primary Metals [Member] | Asia Pacific [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 35,040 | 65,918 | ||
Primary Metals [Member] | South America [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 5,035 | 10,334 | ||
Metalworking [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 99,601 | 188,992 | ||
Metalworking [Member] | North America [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 46,646 | 83,520 | ||
Metalworking [Member] | EMEA [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 29,762 | 60,923 | ||
Metalworking [Member] | Asia Pacific [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 19,328 | 36,901 | ||
Metalworking [Member] | South America [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 3,865 | 7,648 | ||
Coatings and Other [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 20,646 | 38,543 | ||
Coatings and Other [Member] | North America [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 15,293 | 28,966 | ||
Coatings and Other [Member] | EMEA [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 4,217 | 7,794 | ||
Coatings and Other [Member] | Asia Pacific [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | 980 | 1,306 | ||
Coatings and Other [Member] | South America [Member] | ||||
Product Information [Line Items] | ||||
Net Sales | $ 156 | $ 477 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 221,962 | $ 201,183 | $ 434,017 | $ 396,092 |
Operating Earnings, Excluding Indirect Operating Expenses | 48,068 | 40,714 | 91,503 | 81,637 |
Reconciliation from Segment Totals to Consolidated [Abstract] | ||||
Combination-related expenses | (4,291) | (4,338) | (9,500) | (13,413) |
Indirect Operating Expenses | (19,369) | (16,642) | (35,511) | (32,959) |
Amortization | (1,845) | (1,831) | (3,698) | (3,604) |
Operating income | 22,563 | 17,903 | 42,794 | 31,661 |
Other income (expense), net | 261 | (1,571) | (108) | (1,676) |
Interest Expense | (1,602) | (780) | (3,294) | (1,436) |
Interest Income | 571 | 540 | 1,060 | 1,063 |
Income Before Taxes and Equity in Net Income of Associated Companies | 21,793 | 16,092 | 40,452 | 29,612 |
North America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 97,392 | 90,331 | 189,212 | 177,672 |
Operating Earnings, Excluding Indirect Operating Expenses | 23,237 | 19,621 | 43,602 | 40,258 |
North America [Member] | Intersegment Sales Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,800 | 2,500 | 4,800 | 4,600 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 60,166 | 54,507 | 122,221 | 108,434 |
Operating Earnings, Excluding Indirect Operating Expenses | 9,096 | 8,217 | 19,389 | 17,463 |
EMEA [Member] | Intersegment Sales Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 5,400 | 5,000 | 11,000 | 9,800 |
Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 55,348 | 47,724 | 104,125 | 92,874 |
Operating Earnings, Excluding Indirect Operating Expenses | 14,621 | 11,812 | 26,763 | 22,055 |
Asia Pacific [Member] | Intersegment Sales Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 100 | 100 | 400 | 100 |
South America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 9,056 | 8,621 | 18,459 | 17,112 |
Operating Earnings, Excluding Indirect Operating Expenses | 1,114 | 1,064 | 1,749 | 1,861 |
South America [Member] | Intersegment Sales Elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 100 | $ 100 | $ 100 | $ 100 |
Restructuring Activities (Detai
Restructuring Activities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrued Restructuring, Beginning Balance | $ 670 |
Restructuring and adjustments | 0 |
Cash Payments | (675) |
Currency Translation Adjustments | 5 |
Accrued Restructuring, Ending Balance | 0 |
North America [Member] | |
Restructuring Reserve [Roll Forward] | |
Accrued Restructuring, Beginning Balance | 196 |
Restructuring and adjustments | (126) |
Cash Payments | (70) |
Currency Translation Adjustments | 0 |
Accrued Restructuring, Ending Balance | 0 |
EMEA [Member] | |
Restructuring Reserve [Roll Forward] | |
Accrued Restructuring, Beginning Balance | 474 |
Restructuring and adjustments | 126 |
Cash Payments | (605) |
Currency Translation Adjustments | 5 |
Accrued Restructuring, Ending Balance | $ 0 |
Share-Based Compensation - Expe
Share-Based Compensation - Expense Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 892 | $ 1,092 | $ 1,975 | $ 2,245 |
Stock Options Compensation Expense [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 266 | 244 | 518 | 471 |
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 | 576 | 795 | 1,351 | 1,597 |
Employee Stock Purchase Plan Compensation Expense [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 22 | 21 | 44 | 44 |
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 | 0 | 0 | 0 | 64 |
Directors Stock Ownership Plan Compensation Expense [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 28 | $ 32 | $ 62 | $ 69 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation [Abstract] | ||||
Option Award Vesting Period | 3 years | |||
Share Based Compensation [Line Items] | ||||
Share-based Compensation Expense in Period, Stock Option Awards | $ 892 | $ 1,092 | $ 1,975 | $ 2,245 |
Stock Options [Member] | ||||
Share Based Compensation [Line Items] | ||||
Unrecognized Share-Based Compensation Expense, Stock Option Awards | 1,800 | $ 1,800 | ||
Weighted Average Remaining Life, Nonvested Stock Awards | 2 years 1 month | |||
Restricted Stock LTIP Plan [Member] | ||||
Share Based Compensation [Line Items] | ||||
Unrecognized Share-based Compensation Expense, Nonvested Stock Award | 3,100 | $ 3,100 | ||
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 | 15,544 | |||
Restricted Stock Units (RSUs) LTIP Plan [Member] | ||||
Share Based Compensation [Line Items] | ||||
Unrecognized Share-based Compensation Expense, Nonvested Stock Award | $ 300 | $ 300 | ||
Weighted Average Remaining Life, Nonvested Stock Awards | 2 years 2 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,480 |
Share-Based Compensation - Opti
Share-Based Compensation - Options Grant (Details) | 6 Months Ended |
Jun. 30, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Granted | 35,842 |
Dividend Yield | 1.37% |
Expected Volatility | 24.73% |
Risk-free Interest Rate | 2.54% |
Expected Term (Years) | 4 years |
Pension and Postretirement Be47
Pension and Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Description Of Settlements And Curtailments | During the second quarter of 2017, the Company’s U.S. pension plan offered a cash settlement to its vested terminated participants which allowed them to receive the value of their pension benefits as a single lump sum payment. As payments from the U.S. pension plan for this cash-out offering exceeded the service and interest cost components of the U.S. pension plan expense for 2017, the Company recorded a settlement charge of approximately $1.9 million. This settlement charge represents the immediate recognition into expense of a portion of the unrecognized loss within AOCI on the balance sheet in proportion to the share of the projected benefit obligation that was settled by these payments. | |||
Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | $ 960 | $ 871 | $ 1,948 | $ 1,789 |
Defined Benefit Plan, Interest Cost | 1,032 | 1,003 | 2,081 | 2,011 |
Defined Benefit Plan, Expected Return on Plan Assets | (1,274) | (1,255) | (2,564) | (2,581) |
Defined Benefit Plan, Settlement Charge | 0 | 1,860 | 0 | 1,860 |
Defined Benefit Plan, Amortization of Losses | 793 | 792 | 1,593 | 1,661 |
Defined Benefit Plan, Amortization of Prior Service Cost | (29) | (25) | (60) | (48) |
Defined Benefit Plan, Net Periodic Benefit Cost | 1,482 | 3,246 | 2,998 | 4,692 |
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 9,900 | 9,900 | ||
Defined Benefit Plan, Contributions by Employer | 4,900 | |||
Defined Benefit Plan Effect Of Settlements And Curtailments On Accumulated Benefit Obligation | 4,000 | |||
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 3 | 1 | 5 | 4 |
Defined Benefit Plan, Interest Cost | 33 | 39 | 66 | 72 |
Defined Benefit Plan, Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Settlement Charge | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Amortization of Losses | 14 | 22 | 29 | 27 |
Defined Benefit Plan, Amortization of Prior Service Cost | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | 50 | $ 62 | 100 | $ 103 |
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | $ 400 | 400 | ||
Defined Benefit Plan, Contributions by Employer | $ 200 |
Other Income (Expense) - (Detai
Other Income (Expense) - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Income And Expenses [Abstract] | ||||
Income From Third Party License Fees | $ 189 | $ 202 | $ 439 | $ 471 |
Foreign Exchange (Losses) Gains, Net | (493) | 249 | (722) | 35 |
Gain (loss) on Fixed Asset Disposals, Net | 547 | 13 | 599 | 28 |
Non-Income Tax Refunds and Other Related Credits | 505 | 324 | 541 | 618 |
Pension and Post Retirement Benefit Costs Non-service Components | (569) | (2,436) | (1,145) | (3,002) |
Other Nonoperating Income | 102 | 110 | 259 | 241 |
Other Nonoperating Expense | (20) | (33) | (79) | (67) |
Total Other (Expense) Income, Net | $ 261 | $ (1,571) | $ (108) | $ (1,676) |
Property Plant And Equipment Additional Disclosures | Gain on fixed asset disposals, net, during the three and six months ended June 30, 2018 includes a $0.6 million gain on the sale of an available-for-sale asset. |
Income Taxes and Uncertain Ta49
Income Taxes and Uncertain Tax Positions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Effective Income Tax Rate, Continuing Operations | 16.80% | 26.20% | 22.80% | 37.40% | |
Unrecognized Tax Benefits | $ 7.2 | $ 7.2 | $ 6.8 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 0.1 | $ 0.1 | 0.1 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 0.7 | 0.7 | 0.6 | ||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 1.2 | 1.2 | $ 1 | ||
Unrecognized Tax Benefits, Income Tax Penalties Expense | 0.1 | 0.1 | 0.2 | $ 0.1 | |
Unrecognized Tax Benefits Interest Income On Income Taxes | 0.1 | ||||
Tax Adjustments, Settlements, and Unusual Provisions | 1.2 | 1.2 | |||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | |||||
Decrease In Unrecognized Tax Benefits Is Reasonably Possible | 0.3 | $ 0.4 | $ 0.3 | $ 0.4 | |
Income Tax Examination [Line Items] | |||||
Statutory Tax Rate | 21.00% | 35.00% | |||
Us Tax Reform Act | As previously disclosed in its Annual Report filed on Form 10-K for the year ended December 31, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as U.S. Tax Reform on December 22, 2017. U.S. Tax Reform includes multiple changes to the U.S. tax code with varying effects on the Company’s results for the six months ended June 30, 2018. The SEC staff issued guidance on accounting for the tax effects of U.S. Tax Reform and provided a one-year measurement period for companies to complete the accounting. Companies are required to reflect the income tax effects of those aspects of U.S. Tax Reform for which the accounting is complete. To the extent that a company’s accounting for certain income tax effects of U.S. Tax Reform are incomplete but the company is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. The Company has made reasonable interpretations and assumptions with regard to various uncertainties and ambiguities in the application of certain provisions of U.S. Tax Reform. The Company is continuing to evaluate all of the provisions of U.S. Tax Reform and expects to finalize its assessment during the one-year measurement period provided by the SEC to complete the accounting for U.S. Tax Reform. It is possible that the Internal Revenue Service or the U.S. Department of the Treasury could issue subsequent guidance or take positions on audit that differ from the Company’s interpretations and assumptions. | ||||
Italy [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Description | As previously reported, 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 through 2013. During the second quarter of 2018, the Italian tax authorities assessed additional tax due from Quaker Italia, S.r.l., relating to the tax years 2014 and 2015. The Company has filed a request for settlement for these additional assessments. If settlement discussions are not successful, the Company will file for competent authority relief from these assessments under the Mutual Agreement Procedures of the Organization for Economic Co-Operation and Development, consistent with the Company’s previous filings for 2008 through 2013. | ||||
Maximum [Member] | Year End December 31, 2018 [Member] | |||||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | |||||
Decrease In Unrecognized Tax Benefits Is Reasonably Possible | 1.1 | $ 1.1 | |||
Minimum [Member] | Year End December 31, 2018 [Member] | |||||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | |||||
Decrease In Unrecognized Tax Benefits Is Reasonably Possible | $ 1 | $ 1 | |||
Internal Revenue Service (IRS) [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,014 | ||||
Foreign Tax Authority [Member] | The Netherlands [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,012 | ||||
Foreign Tax Authority [Member] | United Kingdom [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,012 | ||||
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 | 2,013 | ||||
Foreign Tax Authority [Member] | China [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,013 | ||||
Foreign Tax Authority [Member] | Italy [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,007 | ||||
Foreign Tax Authority [Member] | India [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,014 | ||||
Foreign Tax Authority [Member] | Mexico [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,013 | ||||
State and Local Jurisdiction [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Examination Year Under Examination | 2,008 |
Earnings Per Share - Basic (Det
Earnings Per Share - Basic (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net Income Attributable to Quaker Chemical Corporation | $ 19,246 | $ 11,906 | $ 31,978 | $ 18,898 |
Less: Income Allocated to Participating Securities | (83) | (82) | (147) | (145) |
Net Income Available to Common Shareholders | $ 19,163 | $ 11,824 | $ 31,831 | $ 18,753 |
Basic Weighted Average Common Shares Outstanding | 13,267,504 | 13,195,053 | 13,256,327 | 13,185,627 |
Basic Earnings Per Common Share | $ 1.44 | $ 0.9 | $ 2.4 | $ 1.42 |
Earnings Per Share - Diluted (D
Earnings Per Share - Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net Income Attributable to Quaker Chemical Corporation | $ 19,246 | $ 11,906 | $ 31,978 | $ 18,898 |
Less: Income Allocated to Participating Securities | (83) | (82) | (147) | (145) |
Net Income Available to Common Shareholders | $ 19,163 | $ 11,824 | $ 31,831 | $ 18,753 |
Basic Weighted Average Common Shares Outstanding | 13,267,504 | 13,195,053 | 13,256,327 | 13,185,627 |
Effect of Dilutive Securities | 29,884 | 45,226 | 31,619 | 45,310 |
Diluted Weighted Average Common Shares Outstanding | 13,297,388 | 13,240,279 | 13,287,946 | 13,230,937 |
Diluted Earnings per Common Share | $ 1.44 | $ 0.89 | $ 2.4 | $ 1.42 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Shares (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,189 | 5,728 | 4,546 | 4,894 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 90,220 | $ 89,879 | $ 98,821 | $ 88,818 |
Restricted Cash | 20,740 | 21,171 | 21,458 | 21,883 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents | $ 110,960 | $ 111,050 | $ 120,279 | $ 110,701 |
Goodwill Assets (Details)
Goodwill Assets (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 86,034 |
Goodwill, Translation Adjustments | (1,804) |
Goodwill, Ending Balance | 84,230 |
North America [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 47,571 |
Goodwill, Translation Adjustments | (166) |
Goodwill, Ending Balance | 47,405 |
EMEA [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 20,504 |
Goodwill, Translation Adjustments | (837) |
Goodwill, Ending Balance | 19,667 |
Asia Pacific [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 15,456 |
Goodwill, Translation Adjustments | (418) |
Goodwill, Ending Balance | 15,038 |
South America [Member] | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 2,503 |
Goodwill, Translation Adjustments | (383) |
Goodwill, Ending Balance | $ 2,120 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Customer Lists And Rights To Sell | $ 75,351 | $ 76,581 |
Trademarks, Formulations And Product Technology | 33,538 | 33,025 |
Other Finite-Lived Intangible Assets, Gross | 5,990 | 6,114 |
Total | 114,879 | 115,720 |
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 48,329 | 45,217 |
Customer Lists And Rights To Sell | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 27,414 | 25,394 |
Trademarks [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 15,359 | 14,309 |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 5,556 | $ 5,514 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization | $ 1,845 | $ 1,831 | $ 3,698 | $ 3,604 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
For the year ended December 31, 2018 | $ 7,416 |
For the year ended December 31, 2019 | 7,212 |
For the year ended December 31, 2020 | 6,928 |
For the year ended December 31, 2021 | 6,564 |
For the year ended December 31, 2022 | 6,406 |
For the year ended December 31, 2023 | $ 6,184 |
Intangible Assets - Finite Live
Intangible Assets - Finite Lived (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Indefinite-Lived Trademarks | $ 1.1 | $ 1.1 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility Current Borrowing Capacity | $ 300 | |
Line of Credit Facility Maximum Borrowing Capacity | $ 400 | |
Debt Instrument Maturity Date Description | The Credit Facility was amended and restated to extend the maturity date from June 2019 to October 2019 in the second quarter of 2018, and the Company anticipates further extending the Credit Facility maturity date through December 15, 2019 during the third quarter of 2018. | |
Line of Credit Facility, Covenant Terms | The Credit Facility has certain financial and other covenants, with the key financial covenant requiring that the Company’s consolidated net debt to adjusted EBITDA ratio cannot exceed 3.50 to 1. | |
Line of Credit Facility, Covenant Compliance | As of June 30, 2018, and December 31, 2017, the Company’s net debt to adjusted EBITDA 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 | $ 46.2 | $ 48.5 |
Industrial Development Bond Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Industrial Development Revenue Bond | $ 5 | $ 5 |
Equity and Noncontrolling Int60
Equity and Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Beginning Balance | $ 422,763 | $ 421,975 | $ 408,864 | $ 412,606 |
Net Income | 19,370 | 12,341 | 32,157 | 19,955 |
Amounts reported in other comprehensive income (loss) | (15,784) | 9,074 | (9,327) | 15,040 |
Dividends, Common Stock | (4,933) | (4,724) | (9,662) | (9,311) |
Distributions to Noncontrolling Affiliate Shareholders | (834) | |||
Share Issuance and Equity-Based Compensation Plans | 1,261 | 928 | 1,479 | 1,304 |
Ending Balance | 422,677 | 439,594 | 422,677 | 439,594 |
Common Stock [Member] | ||||
Beginning Balance | 13,323 | 13,291 | 13,308 | 13,278 |
Net Income | 0 | 0 | 0 | 0 |
Amounts reported in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Dividends, Common Stock | 0 | 0 | 0 | 0 |
Distributions to Noncontrolling Affiliate Shareholders | 0 | |||
Share Issuance and Equity-Based Compensation Plans | 8 | 19 | 23 | 32 |
Ending Balance | 13,331 | 13,310 | 13,331 | 13,310 |
Additional Paid-in Capital [Member] | ||||
Beginning Balance | 93,731 | 112,838 | 93,528 | 112,475 |
Net Income | 0 | 0 | 0 | 0 |
Amounts reported in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Dividends, Common Stock | 0 | 0 | 0 | 0 |
Distributions to Noncontrolling Affiliate Shareholders | 0 | |||
Share Issuance and Equity-Based Compensation Plans | 1,253 | 909 | 1,456 | 1,272 |
Ending Balance | 94,984 | 113,747 | 94,984 | 113,747 |
Retained Earnings [Member] | ||||
Beginning Balance | 373,185 | 366,819 | 365,182 | 364,414 |
Net Income | 19,246 | 11,906 | 31,978 | 18,898 |
Amounts reported in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Dividends, Common Stock | (4,933) | (4,724) | (9,662) | (9,311) |
Distributions to Noncontrolling Affiliate Shareholders | 0 | |||
Share Issuance and Equity-Based Compensation Plans | 0 | 0 | 0 | 0 |
Ending Balance | 387,498 | 374,001 | 387,498 | 374,001 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Beginning Balance | (58,738) | (81,961) | (65,100) | (87,407) |
Net Income | 0 | 0 | 0 | 0 |
Amounts reported in other comprehensive income (loss) | (15,613) | 9,023 | (9,251) | 14,469 |
Dividends, Common Stock | 0 | 0 | 0 | 0 |
Distributions to Noncontrolling Affiliate Shareholders | 0 | |||
Share Issuance and Equity-Based Compensation Plans | 0 | 0 | 0 | 0 |
Ending Balance | (74,351) | (72,938) | (74,351) | (72,938) |
Noncontrolling Interest [Member] | ||||
Beginning Balance | 1,262 | 10,988 | 1,946 | 9,846 |
Net Income | 124 | 435 | 179 | 1,057 |
Amounts reported in other comprehensive income (loss) | (171) | 51 | (76) | 571 |
Dividends, Common Stock | 0 | 0 | 0 | 0 |
Distributions to Noncontrolling Affiliate Shareholders | (834) | |||
Share Issuance and Equity-Based Compensation Plans | 0 | 0 | 0 | 0 |
Ending Balance | $ 1,215 | $ 11,474 | $ 1,215 | $ 11,474 |
Equity and Noncontrolling Int61
Equity and Noncontrolling Interest - Parentheticals (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stockholders Equity [Abstract] | ||||
Dividends Declared | $ 0.37 | $ 0.355 | $ 0.725 | $ 0.7 |
Equity and Noncontrolling Int62
Equity and Noncontrolling Interest - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Loss, Balance at Beginning of Period | $ (58,738) | $ (81,961) | $ (65,100) | $ (87,407) |
Other Comprehensive Income (Loss) Before Reclassifications | (16,674) | 7,758 | (11,050) | 13,010 |
Amounts Reclassified from AOCI | 1,460 | 2,375 | 2,071 | 2,865 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (15,214) | 10,133 | (8,979) | 15,875 |
Related Tax Amounts | (399) | (1,110) | (272) | (1,406) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (15,613) | 9,023 | (9,251) | 14,469 |
Accumulated Other Comprehensive Loss, Balance at End of Period | (74,351) | (72,938) | (74,351) | (72,938) |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Loss, Balance at Beginning of Period | (25,129) | (47,327) | (31,893) | (52,255) |
Other Comprehensive Income (Loss) Before Reclassifications | (16,940) | 7,265 | (10,176) | 12,193 |
Amounts Reclassified from AOCI | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (16,940) | 7,265 | (10,176) | 12,193 |
Related Tax Amounts | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (16,940) | 7,265 | (10,176) | 12,193 |
Accumulated Other Comprehensive Loss, Balance at End of Period | (42,069) | (40,062) | (42,069) | (40,062) |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Loss, Balance at Beginning of Period | (34,009) | (35,850) | (34,093) | (36,168) |
Other Comprehensive Income (Loss) Before Reclassifications | 1,161 | 268 | 464 | (73) |
Amounts Reclassified from AOCI | 779 | 2,650 | 1,562 | 3,500 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 1,940 | 2,918 | 2,026 | 3,427 |
Related Tax Amounts | (444) | (1,127) | (446) | (1,318) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 1,496 | 1,791 | 1,580 | 2,109 |
Accumulated Other Comprehensive Loss, Balance at End of Period | (32,513) | (34,059) | (32,513) | (34,059) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Loss, Balance at Beginning of Period | 400 | 1,216 | 886 | 1,016 |
Other Comprehensive Income (Loss) Before Reclassifications | (895) | 225 | (1,338) | 890 |
Amounts Reclassified from AOCI | 681 | (275) | 509 | (635) |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (214) | (50) | (829) | 255 |
Related Tax Amounts | 45 | 17 | 174 | (88) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (169) | (33) | (655) | 167 |
Accumulated Other Comprehensive Loss, Balance at End of Period | $ 231 | $ 1,183 | $ 231 | $ 1,183 |
Equity and Noncontrolling Int63
Equity and Noncontrolling Interest - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cost of Goods Sold [Member] | ||||
Concentration Risk [Line Items] | ||||
Reclassification Percentage | 25.00% | 25.00% | 25.00% | 25.00% |
Operating Expenses [Member] | ||||
Concentration Risk [Line Items] | ||||
Reclassification Percentage | 75.00% | 75.00% | 75.00% | 75.00% |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) $ in Thousands, ₨ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Mar. 31, 2018USD ($) | Dec. 31, 2017INR (₨) | Dec. 31, 2017USD ($) | Jun. 30, 2017CAD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016CAD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Business Acquisition [Line Items] | |||||||||
Cash Paid for Acquisitions | $ 500 | $ 5,363 | |||||||
Goodwill | $ 86,034 | 84,230 | |||||||
Other current liabilities | 29,384 | $ 31,556 | |||||||
Mining North America [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash Paid for Acquisitions | $ 500 | ||||||||
Other current liabilities | 500 | ||||||||
Mining North America [Member] | Trademarks Formulations and Product Technology [Member} | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangibles | $ 1,000 | ||||||||
Intangible Assets, Amortizable Life | 10 years | ||||||||
Lubricor [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash Paid for Acquisitions | $ 16 | $ 12,000 | |||||||
Metalworking North America [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash Paid for Acquisitions | $ 7.3 | $ 5,400 | |||||||
India [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash Paid for Acquisitions | ₨ 2,025 | $ 31,800 | |||||||
Minority Interest Ownership Percentage | 45.00% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Company Owned Life Insurance | $ 1,591 | $ 1,594 |
Assets, Fair Value Disclosure | 1,591 | 1,594 |
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 | 1,591 | 1,594 |
Assets, Fair Value Disclosure | 1,591 | 1,594 |
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 | Jun. 30, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual At Carrying Value | $ 0.2 | $ 0.2 |
ACP [Member] | Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 1 | |
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 | $ 1.9 |