Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-12019 | |
Entity Registrant Name | QUAKER CHEMICAL CORPORATION | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-0993790 | |
Entity Address, Address Line One | 901 E. Hector Street | |
Entity Address, City or Town | Conshohocken | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19428 – 2380 | |
City Area Code | 610 | |
Local Phone Number | 832-4000 | |
Title of 12(b) Security | Common Stock, $1 par value | |
Trading Symbol | KWR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,984,916 | |
Entity central index key | 0000081362 | |
Current fiscal year end date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Period Focus | Q3 | |
Amendment flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 490,612 | $ 492,218 | $ 1,486,204 | $ 1,458,777 |
Cost of goods sold (excluding amortization expense - See Note 13) | 307,265 | 331,469 | 951,716 | 1,002,393 |
Gross profit | 183,347 | 160,749 | 534,488 | 456,384 |
Selling, general and administrative expenses | 122,810 | 115,456 | 362,212 | 343,081 |
Restructuring and related charges (credits), net | 1,019 | (1,423) | 6,034 | (604) |
Combination, integration and other acquisition-related expenses | 0 | 2,107 | 0 | 7,992 |
Operating income | 59,518 | 44,609 | 166,242 | 105,915 |
Other (expense) income, net | (2,713) | 85 | (8,558) | (10,520) |
Interest expense, net | (12,781) | (8,389) | (38,744) | (20,228) |
Income before taxes and equity in net income of associated companies | 44,024 | 36,305 | 118,940 | 75,167 |
Taxes on income before equity in net income of associated companies | 13,593 | 10,185 | 36,956 | 14,425 |
Income before equity in net income of associated companies | 30,431 | 26,120 | 81,984 | 60,742 |
Equity in net income (loss) of associated companies | 3,279 | (212) | 10,660 | (642) |
Net income | 33,710 | 25,908 | 92,644 | 60,100 |
Less: Net income attributable to noncontrolling interest | 40 | 41 | 94 | 74 |
Net income attributable to Quaker Chemical Corporation | $ 33,670 | $ 25,867 | $ 92,550 | $ 60,026 |
Per share data: | ||||
Net income attributable to Quaker Chemical Corporation common shareholders – basic (in dollars per share) | $ 1.87 | $ 1.44 | $ 5.15 | $ 3.35 |
Net income attributable to Quaker Chemical Corporation common shareholders – diluted (in dollars per share) | 1.87 | 1.44 | 5.14 | 3.35 |
Dividends declared (in dollars per share) | $ 0.455 | $ 0.435 | $ 1.325 | $ 1.265 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 33,710 | $ 25,908 | $ 92,644 | $ 60,100 |
Other comprehensive (loss) income, net of tax | ||||
Currency translation adjustments | (25,504) | (71,986) | (24,116) | (155,284) |
Defined benefit retirement plans | 281 | 497 | 852 | 2,400 |
Current period change in fair value of derivatives | 1,241 | (140) | 5,804 | 1,535 |
Unrealized (loss) gain on available-for-sale securities | (637) | (818) | 938 | (2,385) |
Other comprehensive loss | (24,619) | (72,447) | (16,522) | (153,734) |
Comprehensive income (loss) | 9,091 | (46,539) | 76,122 | (93,634) |
Less: Comprehensive loss attributable to noncontrolling interest | (36) | (3) | (55) | (5) |
Comprehensive income (loss) attributable to Quaker Chemical Corporation | $ 9,055 | $ (46,542) | $ 76,067 | $ (93,639) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 198,358 | $ 180,963 |
Accounts receivable, net | 446,459 | 472,888 |
Inventories | ||
Raw materials and supplies | 129,204 | 151,105 |
Work-in-process and finished goods | 121,566 | 133,743 |
Prepaid expenses and other current assets | 70,724 | 55,438 |
Total current assets | 966,311 | 994,137 |
Property, plant and equipment, at cost | 431,565 | 428,190 |
Less: Accumulated depreciation | (235,125) | (229,595) |
Property, plant and equipment, net | 196,440 | 198,595 |
Right of use lease assets | 38,595 | 43,766 |
Goodwill | 504,457 | 515,008 |
Other intangible assets, net | 890,464 | 942,925 |
Investments in associated companies | 92,965 | 88,234 |
Deferred tax assets | 9,569 | 11,218 |
Other non-current assets | 33,705 | 27,739 |
Total assets | 2,732,506 | 2,821,622 |
Current liabilities | ||
Short-term borrowings and current portion of long-term debt | 19,246 | 19,245 |
Accounts payable | 190,067 | 193,983 |
Dividends payable | 8,190 | 7,808 |
Accrued compensation | 43,641 | 39,834 |
Accrued restructuring | 3,590 | 5,483 |
Accrued pension and postretirement benefits | 1,574 | 1,560 |
Other accrued liabilities | 85,799 | 86,873 |
Total current liabilities | 352,107 | 354,786 |
Long-term debt | 804,973 | 933,561 |
Long-term lease liabilities | 22,163 | 26,967 |
Deferred tax liabilities | 151,606 | 160,294 |
Non-current accrued pension and postretirement benefits | 27,344 | 28,765 |
Other non-current liabilities | 33,212 | 38,664 |
Total liabilities | 1,391,405 | 1,543,037 |
Commitments and contingencies (Note 18) | ||
Equity | ||
Common stock $1 par value; authorized 30,000,000 shares; issued and outstanding September 30, 2023 – 18,000,855 shares; December 31, 2022 – 17,950,264 shares | 18,001 | 17,950 |
Capital in excess of par value | 938,473 | 928,288 |
Retained earnings | 538,628 | 469,920 |
Accumulated other comprehensive loss | (154,724) | (138,240) |
Total Quaker shareholders’ equity | 1,340,378 | 1,277,918 |
Noncontrolling interest | 723 | 667 |
Total equity | 1,341,101 | 1,278,585 |
Total liabilities and equity | $ 2,732,506 | $ 2,821,622 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 18,000,855 | 17,950,264 |
Common stock, shares outstanding (in shares) | 18,000,855 | 17,950,264 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 92,644 | $ 60,100 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Amortization of debt issuance costs | 1,059 | 2,589 |
Depreciation and amortization | 61,434 | 60,692 |
Equity in undistributed earnings of associated companies, net of dividends | (7,486) | 3,612 |
Deferred compensation, deferred taxes and other, net | (515) | (8,844) |
Share-based compensation | 11,189 | 8,635 |
Loss on extinguishment of debt | 0 | 5,246 |
Combination and other acquisition-related expenses, net of payments | 0 | (4,265) |
Restructuring and related charges (credits), net | 6,034 | (604) |
Pension and other postretirement benefits | (2,000) | (6,556) |
Increase (decrease) in cash from changes in current assets and current liabilities, net of acquisitions: | ||
Accounts receivable | 22,133 | (65,256) |
Inventories | 30,607 | (72,386) |
Prepaid expenses and other current assets | (9,771) | (11,081) |
Change in restructuring liabilities | (7,914) | (1,234) |
Accounts payable and accrued liabilities | 2,046 | 3,059 |
Net cash provided by (used in) operating activities | 199,460 | (26,293) |
Cash flows from investing activities | ||
Investments in property, plant and equipment | (25,794) | (20,230) |
Payments related to acquisitions, net of cash acquired | 0 | (9,421) |
Proceeds from disposition of assets | 0 | 65 |
Net cash used in investing activities | (25,794) | (29,586) |
Cash flows from financing activities | ||
Payments of long-term debt | (14,075) | (668,500) |
Proceeds from long-term debt | 0 | 750,000 |
Payments on revolving credit facilities, net | (112,835) | (10,418) |
Borrowings on other debt, net | 797 | 2,131 |
Financing-related debt issuance costs | 0 | (3,734) |
Dividends paid | (23,459) | (22,302) |
Other stock related activity | (953) | (616) |
Net cash (used in) provided by financing activities | (150,525) | 46,561 |
Effect of foreign exchange rate changes on cash | (5,746) | (16,967) |
Net increase (decrease) in cash and cash equivalents | 17,395 | (26,285) |
Cash and cash equivalents at the beginning of the period | 180,963 | 165,176 |
Cash and cash equivalents at the end of the period | $ 198,358 | $ 138,891 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest |
Beginning balance at Dec. 31, 2021 | $ 1,387,922 | $ 17,897 | $ 917,053 | $ 516,334 | $ (63,990) | $ 628 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 19,821 | 19,816 | 5 | |||
Amounts reported in other comprehensive (loss) income | (6,270) | (6,271) | 1 | |||
Dividends declared | (7,434) | (7,434) | ||||
Share issuance and equity-based compensation plans | 1,661 | 15 | 1,646 | |||
Ending balance at Mar. 31, 2022 | 1,395,700 | 17,912 | 918,699 | 528,716 | (70,261) | 634 |
Beginning balance at Dec. 31, 2021 | 1,387,922 | 17,897 | 917,053 | 516,334 | (63,990) | 628 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 60,100 | |||||
Amounts reported in other comprehensive (loss) income | (153,734) | |||||
Ending balance at Sep. 30, 2022 | 1,279,630 | 17,931 | 925,037 | 553,685 | (217,655) | 632 |
Beginning balance at Mar. 31, 2022 | 1,395,700 | 17,912 | 918,699 | 528,716 | (70,261) | 634 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 14,371 | 14,343 | 28 | |||
Amounts reported in other comprehensive (loss) income | (75,018) | (74,985) | (33) | |||
Dividends declared | (7,438) | (7,438) | ||||
Share issuance and equity-based compensation plans | 2,951 | 8 | 2,943 | |||
Ending balance at Jun. 30, 2022 | 1,330,566 | 17,920 | 921,642 | 535,621 | (145,246) | 629 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 25,908 | 25,867 | 41 | |||
Amounts reported in other comprehensive (loss) income | (72,447) | (72,409) | (38) | |||
Dividends declared | (7,803) | (7,803) | ||||
Share issuance and equity-based compensation plans | 3,406 | 11 | 3,395 | |||
Ending balance at Sep. 30, 2022 | 1,279,630 | 17,931 | 925,037 | 553,685 | (217,655) | 632 |
Beginning balance at Dec. 31, 2022 | 1,278,585 | 17,950 | 928,288 | 469,920 | (138,240) | 667 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 29,541 | 29,534 | 7 | |||
Amounts reported in other comprehensive (loss) income | 15,066 | 15,063 | 3 | |||
Dividends declared | (7,822) | (7,822) | ||||
Share issuance and equity-based compensation plans | 1,418 | 32 | 1,386 | |||
Ending balance at Mar. 31, 2023 | 1,316,788 | 17,982 | 929,674 | 491,632 | (123,177) | 677 |
Beginning balance at Dec. 31, 2022 | 1,278,585 | 17,950 | 928,288 | 469,920 | (138,240) | 667 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 92,644 | |||||
Amounts reported in other comprehensive (loss) income | (16,522) | |||||
Ending balance at Sep. 30, 2023 | 1,341,101 | 18,001 | 938,473 | 538,628 | (154,724) | 723 |
Beginning balance at Mar. 31, 2023 | 1,316,788 | 17,982 | 929,674 | 491,632 | (123,177) | 677 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 29,393 | 29,346 | 47 | |||
Amounts reported in other comprehensive (loss) income | (6,969) | (6,931) | (38) | |||
Dividends declared | (7,830) | (7,830) | ||||
Share issuance and equity-based compensation plans | 5,284 | 17 | 5,267 | |||
Ending balance at Jun. 30, 2023 | 1,336,666 | 17,999 | 934,941 | 513,148 | (130,108) | 686 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 33,710 | 33,670 | 40 | |||
Amounts reported in other comprehensive (loss) income | (24,619) | (24,616) | (3) | |||
Dividends declared | (8,190) | (8,190) | ||||
Share issuance and equity-based compensation plans | 3,534 | 2 | 3,532 | |||
Ending balance at Sep. 30, 2023 | $ 1,341,101 | $ 18,001 | $ 938,473 | $ 538,628 | $ (154,724) | $ 723 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Dividends declared (in dollars per share) | $ 0.455 | $ 0.435 | $ 0.435 | $ 0.435 | $ 0.415 | $ 0.415 | $ 1.325 | $ 1.265 |
Basis of Presentation and Descr
Basis of Presentation and Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Description of Business | Basis of Presentation and Description of Business As used in these Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for the period ended September 30, 2023 (the “Report”), the terms “Quaker Houghton,” the “Company,” “we,” and “our” refer to Quaker Chemical Corporation (doing business as Quaker Houghton), its subsidiaries, and associated companies, unless the context otherwise requires. The “Combination” refers to the legacy Quaker combination with Houghton International, Inc. (“Houghton”). Basis of Presentation 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 pursuant to such rules and regulations. In the opinion of management, the financial statements reflect all adjustments consisting only of normal recurring adjustments, which are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods. The results for the nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”). During the first quarter of 2023, the Company reorganized its executive management team to align with its new business structure. The Company’s new structure includes three reportable segments: (i) Americas; (ii) Europe, Middle East and Africa (“EMEA”); and (iii) Asia/Pacific. Prior to the Company’s reorganization, the Company’s historical reportable segments were: (i) Americas; (ii) EMEA; (iii) Asia/Pacific; and (iv) Global Specialty Businesses. Prior period information has been recast to align with the Company’s business structure as of January 1, 2023, including reportable segments and customer industry disaggregation. As a result of the Company’s new organizational structure effective January 1, 2023, the Company reallocated goodwill previously held by the former Global Specialty Businesses segment to the remaining business segments as of January 1, 2023. However, the Company did not recast the carrying amount of goodwill for the year ended December 31, 2022. See Notes 4, 5, and 13 of Notes to Condensed Consolidated Financial Statements. Description of Business The Company was organized in 1918 and incorporated as a Pennsylvania business corporation in 1930. Quaker Houghton is the global leader in industrial process fluids. With a presence around the world, including operations in over 25 countries, the Company’s customers include thousands of the world’s most advanced and specialized steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. Quaker Houghton develops, produces, and markets a broad range of formulated chemical specialty products and offers chemical management services, which the Company refers to as “Fluidcare TM ”, for various heavy industrial and manufacturing applications. Hyper-inflationary economies Argentina’s and Türkiye’s economies were considered hyper-inflationary under U.S. GAAP effective July 1, 2018 and April 1, 2022, respectively. As of, and for the three and nine months ended September 30, 2023, the Company's Argentine and Turkish subsidiaries represented a combined 1% and 2% of the Company’s consolidated total assets and net sales, respectively. During the three and nine months ended September 30, 2023, the Company recorded $1.2 million and $2.9 million of remeasurement losses associated with the applicable currency conversions, respectively. Comparatively, during the three and nine months ended September 30, 2022, the Company recorded $1.0 million and $1.2 million of remeasurement losses associated with the applicable currency conversions, respectively. These losses were recorded within foreign exchange losses, net, which is a component of Other (expense) income, net, in the Company’s Condensed Consolidated Statements of Operations. |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions | Business Acquisitions Previous Acquisitions In October 2022, the Company acquired a business that provides pickling and rinsing products and services, which is part of the EMEA reportable segment, for approximately 3.5 million EUR or approximately $3.5 million. This acquisition, along with the Company’s January 2022 acquisition in the Americas (described below), which had similar specializations and product offerings in pickling inhibitor technologies, strengthens Quaker Houghton’s position in pickling inhibitors and additives, enabling the Company to better support and optimize production processes for customers across the metals industry. As of September 30, 2023, the allocation of the purchase of this acquisition has been finalized. In January 2022, the Company acquired a business that provides pickling inhibitor technologies, drawing lubricants and stamping oil, and various other lubrication, rust preventative, and cleaner applications, which is part of the Americas reportable segment, for approximately $8.0 million. This business broadens the Company’s product offerings within its existing metals and metalworking business in the Americas region. During the third quarter of 2022 the Company finalized post-closing adjustments that resulted in the Company paying less than $0.1 million of additional purchase consideration. Also in January 2022, the Company acquired a business related to the sealing and impregnation of metal castings for the automotive sector, as well as impregnation resin and impregnation systems for metal parts, which is part of the EMEA reportable segment, for approximately 1.2 million EUR or approximately $1.4 million. This business broadens its product offerings and service capabilities within its existing impregnation business. The allocation of the purchase prices of both of these January 2022 acquisitions have been finalized. In November 2021, the Company acquired Baron Industries, a privately held company that provides vacuum impregnation services of castings, powder metals and electrical components for its Americas reportable segment for $11.0 million, including an initial cash payment of $7.1 million, subject to post-closing adjustments, as well as certain earn-out provisions that are payable at various times from 2022 through 2025. The earn-out provisions could total a maximum of $4.5 million. As of September 30, 2023, the Company has remaining earn-out liabilities recorded on its Condensed Consolidated Balance Sheet of $1.1 million. Additionally, during the third quarter of 2022 the Company finalized post-closing adjustments that resulted in the Company receiving a payment of less than $0.1 million. In December 2020, the Company acquired Coral Chemical Company, LLC (“Coral”), a privately held U.S.-based provider of metal finishing fluid solutions. Subsequent to the acquisition, the Company and the sellers of Coral (the “Sellers”) have worked to finalize certain post-closing adjustments. During the second quarter of 2022, after failing to reach resolution, the Sellers filed suit asserting certain amounts owed related to tax attributes of the acquisition. During the first nine months of 2023, there have been no material changes to the facts and circumstances of the claim asserted by the Sellers, and the Company continues to believe the potential range of exposure for this claim is $0 to $1.5 million. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards There have been no recently issued accounting standards that will have a material impact on the Company’s condensed consolidated financial statements and related footnote disclosures. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Business Segments | Business Segments The Company has three reportable segments: (i) Americas; (ii) EMEA; and (iii) Asia/Pacific. The three segments are composed of the net sales and operations in each respective region. All prior period information has been recast to reflect the Company’s new reportable segments. See Note 1 of Notes to Condensed Consolidated Financial Statements. Segment operating earnings for each of the Company’s reportable segments are comprised of the segment’s net sales less directly related Cost of goods sold (“COGS”) and Selling, general and administrative expenses (“SG&A”). Operating expenses not directly attributable to the net sales of each respective segment, such as certain corporate and administrative costs, Combination, integration and other acquisition-related expenses, and Restructuring and related charges (credits), net, are not included in segment operating earnings. Other items not specifically identified with the Company’s reportable segments include Interest expense, net and Other (expense) income, net. The following table presents information about the performance of the Company’s reportable segments: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net sales Americas $ 245,899 $ 254,678 $ 750,531 $ 702,580 EMEA 139,620 134,386 435,602 426,739 Asia/Pacific 105,093 103,154 300,071 329,458 Total net sales $ 490,612 $ 492,218 $ 1,486,204 $ 1,458,777 Segment operating earnings Americas $ 69,148 $ 66,749 $ 204,280 $ 164,065 EMEA 27,922 15,479 81,076 58,803 Asia/Pacific 30,963 26,723 86,604 76,146 Total segment operating earnings 128,033 108,951 371,960 299,014 Combination, integration and other acquisition-related expenses — (2,107) — (7,992) Restructuring and related (charges) credits, net (1,019) 1,423 (6,034) 604 Non-operating and administrative expenses (52,280) (47,852) (154,001) (139,894) Depreciation of corporate assets and amortization (15,216) (15,806) (45,683) (45,817) Operating income 59,518 44,609 166,242 105,915 Other (expense) income, net (2,713) 85 (8,558) (10,520) Interest expense, net (12,781) (8,389) (38,744) (20,228) Income before taxes and equity in net income of associated companies $ 44,024 $ 36,305 $ 118,940 $ 75,167 The following table summarizes inter-segment revenues. All inter-segment transactions have been eliminated from each reportable segment’s net sales and earnings for all periods presented in the above tables. Three Months Ended Nine Months Ended 2023 2022 2023 2022 Americas $ 1,772 $ 2,702 $ 6,778 $ 9,200 EMEA 5,161 9,448 18,718 37,259 Asia/Pacific 793 327 1,329 739 |
Net Sales and Revenue Recogniti
Net Sales and Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales and Revenue Recognition | Net Sales and Revenue Recognition Arrangements Resulting in Net Reporting As part of the Company’s Fluidcare TM business, certain third-party product sales to customers are managed by the Company. The Company transferred third-party products under arrangements recognized on a net reporting basis of $21.6 million and $63.2 million for the three and nine months ended September 30, 2023, respectively, and $21.4 million and $61.7 million for the three and nine months ended September 30, 2022, respectively. Customer Concentration A significant portion of the Company’s revenues are realized from the sale of process fluids and services to manufacturers of steel, aluminum, automobiles, aerospace, industrial and agricultural equipment, and durable goods. As previously disclosed in the Company’s 2022 Form 10-K, the Company’s five largest customers combined (each composed of multiple subsidiaries or divisions with semiautonomous purchasing authority) accounted for approximately 11% of consolidated net sales, with its largest customer accounting for approximately 3% of consolidated net sales. Contract Assets and Liabilities The Company had no material contract assets recorded on its Condensed Consolidated Balance Sheets as of September 30, 2023 or December 31, 2022. The Company had approximately $2.8 million and $5.7 million of deferred revenue as of September 30, 2023 and December 31, 2022, respectively. For the nine months ended September 30, 2023, the Company satisfied all of the associated performance obligations and recognized into revenue the advance payments received and recorded as of December 31, 2022. Disaggregated Revenue The Company sells its various industrial process fluids, its specialty chemicals and its technical expertise as a global product portfolio. The Company generally manages and evaluates its performance by reportable segment first, and then by customer industries. Net sales of each of the Company’s major product lines are generally spread throughout all three of the Company’s geographic regions, and in most cases, are approximately proportionate to the level of total sales in each region. The following tables disaggregate the Company’s net sales by geographic region, customer industries, and timing of revenue recognized. Prior period information has been recast to reflect the Company’s current period customer industry disaggregation. See Note 1 of Notes to Condensed Consolidated Financial Statements. Three Months Ended September 30, 2023 Americas EMEA Asia/Pacific Consolidated Customer Industries Metals $ 67,957 $ 32,630 $ 49,320 $ 149,907 Metalworking and other 177,942 106,990 55,773 340,705 $ 245,899 $ 139,620 $ 105,093 $ 490,612 Timing of Revenue Recognized Product sales at a point in time $ 235,209 $ 128,586 $ 102,305 $ 466,100 Services transferred over time 10,690 11,034 2,788 24,512 $ 245,899 $ 139,620 $ 105,093 $ 490,612 Nine Months Ended September 30, 2023 Americas EMEA Asia/Pacific Consolidated Customer Industries Metals $ 204,834 $ 104,376 $ 144,109 $ 453,319 Metalworking and other 545,697 331,226 155,962 1,032,885 $ 750,531 $ 435,602 $ 300,071 $ 1,486,204 Timing of Revenue Recognized Product sales at a point in time $ 718,187 $ 402,508 $ 291,740 $ 1,412,435 Services transferred over time 32,344 33,094 8,331 73,769 $ 750,531 $ 435,602 $ 300,071 $ 1,486,204 Three Months Ended September 30, 2022 Americas EMEA Asia/Pacific Consolidated Customer Industries Metals $ 67,943 $ 32,748 $ 51,341 $ 152,032 Metalworking and other 186,735 101,638 51,813 340,186 $ 254,678 $ 134,386 $ 103,154 $ 492,218 Timing of Revenue Recognized Product sales at a point in time $ 243,699 $ 124,566 $ 99,929 $ 468,194 Services transferred over time 10,979 9,820 3,225 24,024 $ 254,678 $ 134,386 $ 103,154 $ 492,218 Nine Months Ended September 30, 2022 Americas EMEA Asia/Pacific Consolidated Customer Industries Metals $ 185,784 $ 107,163 $ 163,239 $ 456,186 Metalworking and other 516,796 319,576 166,219 1,002,591 $ 702,580 $ 426,739 $ 329,458 $ 1,458,777 Timing of Revenue Recognized Product sales at a point in time $ 669,945 $ 396,944 $ 321,031 $ 1,387,920 Services transferred over time 32,635 29,795 8,427 70,857 $ 702,580 $ 426,739 $ 329,458 $ 1,458,777 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for certain facilities, vehicles and machinery and equipment with remaining lease terms up to 8 years. Operating lease expense is recognized on a straight-line basis over the lease term. In addition, the Company has certain land use leases with remaining lease terms up to 92 years. The Company had no material variable lease costs, sublease income, or finance leases for the three and nine months ended September 30, 2023 and 2022. The components of the Company’s lease expense are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Operating lease expense $ 3,886 $ 3,664 $ 11,532 $ 10,592 Short-term lease expense 193 201 587 625 Supplemental cash flow information related to the Company’s leases is as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,917 $ 3,768 $ 11,547 $ 10,575 Non-cash lease liabilities activity: Leased assets obtained in exchange for new operating lease liabilities 2,910 2,599 6,566 10,672 Supplemental balance sheet information related to the Company’s leases is as follows: September 30, December 31, Right of use lease assets $ 38,595 $ 43,766 Other current liabilities 12,113 12,024 Long-term lease liabilities 22,163 26,967 Total operating lease liabilities $ 34,276 $ 38,991 Weighted average remaining lease term (years) 4.82 5.10 Weighted average discount rate 4.67 % 4.36 % Maturities of operating lease liabilities were as follows: September 30, For the remainder of 2023 $ 3,691 For the year ended December 31, 2024 12,589 For the year ended December 31, 2025 8,417 For the year ended December 31, 2026 6,286 For the year ended December 31, 2027 3,051 For the year ended December 31, 2028 and beyond 5,614 Total lease payments 39,648 Less: imputed interest (5,372) Present value of lease liabilities $ 34,276 |
Restructuring and Related Activ
Restructuring and Related Activities | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities | Restructuring and Related Activities In the third quarter of 2019, the Company’s management approved a global restructuring plan (the “QH Program”) as part of its initial plan to realize certain cost synergies associated with the Combination. As of December 31, 2022, the Company substantially completed all of the initiatives under the QH Program with only an immaterial amount of remaining severance still to be paid, which has been paid as of September 30, 2023. In the fourth quarter of 2022, the Company’s management initiated a global cost and optimization program to improve its cost structure and drive a more profitable and productive organization. As of September 30, 2023, the program included restructuring and associated severance costs to reduce headcount by approximately 100 positions globally. These headcount reductions began in the fourth quarter of 2022 and are expected to continue throughout 2023. The exact timing to complete all actions and final costs associated will depend on a number of factors that are subject to change. Employee separation benefits vary depending on local regulations within certain foreign countries and include severance and other benefits. Restructuring costs include severance costs to reduce headcount, including customary and routine adjustments to initial estimates for employee separation costs, as well as costs to close certain facilities under the QH Program. These costs are recorded in Restructuring and related charges in the Company’s Consolidated Statements of Operations. As described in Note 4 of Notes to Consolidated Financial Statements, Restructuring and related charges are not included in the Company’s calculation of reportable segments’ measure of operating earnings and therefore these costs are not reviewed by or recorded to reportable segments. In connection with the plans for closure of certain manufacturing and non-manufacturing facilities, the Company has made available for sale certain facilities and property. During the three months ended September 30, 2023, the Company classified certain properties with aggregate book value of approximately $6.9 million as held-for-sale that are recorded in Prepaid expenses and other current assets on the Company’s Condensed Consolidated Balance Sheets. The Company expects to complete the sale of these properties over the next 12 months. Changes in the Company’s accruals for its restructuring programs are as follows: Restructuring Programs Accrued restructuring as of December 31, 2022 $ 5,483 Restructuring and related charges, net 6,034 Cash payments (7,914) Currency translation adjustments (13) Accrued restructuring as of September 30, 2023 $ 3,590 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company recognized the following share-based compensation expense in its Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Stock options $ 203 $ 533 $ 837 $ 1,269 Non-vested stock awards and restricted stock units 2,429 1,783 7,192 4,998 Director stock ownership plan 30 9 56 53 Performance stock units 1,113 875 3,104 2,314 Total share-based compensation expense $ 3,775 $ 3,200 $ 11,189 $ 8,634 Share-based compensation expense is recorded in SG&A, except for $0.1 million and $0.2 million for the three and nine months ended September 30, 2022, respectively, recorded within Combination, integration and other acquisition-related expenses. Stock Options As of September 30, 2023, unrecognized compensation expense related to unvested stock options was $0.5 million, to be recognized over a weighted average remaining period of 0.9 years. Restricted Stock Awards and Restricted Stock Units During the nine months ended September 30, 2023, the Company granted 38,894 non-vested restricted shares and 6,675 non-vested restricted stock units under its long-term incentive plan (“LTIP”) , which are subject to time-based vesting, generally over one The fair value of these grants is based on the last sale price of the Company’s common stock on the date of grant. As of September 30, 2023, unrecognized compensation expense related to the non-vested restricted shares was $8.0 million, to be recognized over a weighted average remaining period of 1.4 years, and unrecognized compensation expense related to non-vested restricted stock units was $1.6 million, to be recognized over a weighted average remaining period of 1.5 years. Performance Stock Units As a component of its LTIP, the Company grants performance-based stock unit awards (“PSUs”), which will be settled in a certain number of shares subject to market-based or performance-based and time-based vesting conditions. The number of fully vested shares that may ultimately be issued as settlement for each award may range from 0% up to 200% of the target award, subject to the achievement of the Company’s market-based total shareholder return (“TSR”) metric relative to the performance of the Company’s peer group, the S&P Midcap 400 Materials group, and separately the achievement of a performance-based return on invested capital (“ROIC”) measure. The service period required for the PSUs is generally three years and the measurement period of the market-based and performance objectives is generally from January 1 of the year of grant through December 31 of the year prior to issuance of the shares. Compensation expense for PSUs is measured based on the grant date fair value and is recognized on a straight-line vesting method basis over the applicable vesting period. The fair value of PSUs granted with a ROIC condition is based on the trading price of the Company’s common stock on the date of grant. PSUs granted with a relative TSR condition are valued using a Monte Carlo simulation on the date of grant. The grant-date fair value of the PSUs valued using a Monte Carlo simulation, which included the following assumptions set forth in the table below: 2023 Number of PSUs granted 16,861 Risk-free interest rate 3.85% Dividend yield 0.96% Expected term (years) 3.0 Based on the conditions of the PSUs and performance to date for each of the outstanding PSU awards as of September 30, 2023, the Company estimates that it will issue 25,613 fully vested shares as of the applicable settlement date for such outstanding PSUs awards. As of September 30, 2023, there was approximately $8.0 million of total unrecognized compensation cost related to PSUs, which the Company expects to recognize over a weighted-average period of 2.2 years. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits, Description [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The components of net periodic benefit cost (income) are as follows: Three Months Ended September 30, Nine Months Ended September 30, Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits 2023 2022 2023 2022 2023 2022 2023 2022 Service cost $ 109 $ 166 $ — $ 1 $ 320 $ 520 $ — $ 1 Interest cost 2,487 1,272 14 8 7,452 3,949 51 19 Expected return on plan assets (2,033) (1,942) — — (6,056) (6,038) — — Actuarial loss (gain) amortization 103 238 (36) (23) 308 743 (95) (70) Prior service cost (income) amortization 18 3 (4) (8) 26 8 (12) (17) Net periodic benefit cost (income) $ 684 $ (263) $ (26) $ (22) $ 2,050 $ (818) $ (56) $ (67) In July 2023, one of the Company’s pension plans in the U.K. liquidated approximately $50 million of its invested assets and subsequently funded and entered into an insurance annuity contract, which will provide for the pension plan’s defined benefit obligations to participants. Employer Contributions As of September 30, 2023, $3.4 million and $0.1 million of contributions have been made to the Company’s U.S. and foreign pension plans and its other postretirement benefit plans, respectively. Taking into consideration current minimum cash contribution requirements, the Company currently expects to make full year cash contributions of approximately $5.2 million to its U.S. and foreign pension plans and approximately $0.2 million to its other postretirement benefit plans in 2023. |
Other (expense) income, net
Other (expense) income, net | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other (expense) income, net | Other (expense) income, net The components of Other (expense) income, net are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Income from third party license fees $ 245 $ 253 $ 891 $ 906 Foreign exchange losses, net (2,498) (1,928) (10,049) (5,859) (Loss) gain on disposals of property, plant, equipment and other assets, net (25) 48 (91) 33 Non-income tax refunds and other related credits (expense) 91 122 1,339 (1,617) Pension and postretirement benefit (costs) income, non-service components (549) 452 (1,674) 1,406 Facility remediation recoveries, net — 1,104 1,014 1,104 Loss on extinguishment of debt — — — (6,763) Other non-operating income, net 23 34 12 270 Total other (expense) income, net $ (2,713) $ 85 $ (8,558) $ (10,520) Non-income tax refunds and other related credits (expense) during the nine months ended September 30, 2023 and nine months ended September 30, 2022 include adjustments to a Combination-related indemnification asset associated with the settlement of certain income tax audits for tax periods prior to August 1, 2019. See Note 11 of Notes to Condensed Consolidated Financial Statements. Facility remediation recoveries, net, during the nine months ended September 30, 2023 and the three and nine months ended September 30, 2022, reflect gains recorded on the payments received from insurers related to previously incurred costs from the remediation and restoration of property damage incurred during the three months ended September 30, 2021. See Note 18 of Notes to the Condensed Consolidated Financial Statements. Loss on extinguishment of debt during the nine months ended September 30, 2022, represents a write-off of certain previously unamortized deferred financing costs as well as a portion of third party and creditor debt issuance costs incurred to execute an amendment to the Company’s primary credit facility. See Note 14 of Notes to Condensed Consolidated Financial Statements. |
Income Taxes and Uncertain Inco
Income Taxes and Uncertain Income Tax Positions | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes and Uncertain Income Tax Positions | Income Taxes and Uncertain Income Tax PositionsThe Company’s effective tax rates for the three and nine months ended September 30, 2023 were 30.9% and 31.1%, respectively, compared to 28.1% and 19.2% for the three and nine months ended September 30, 2022, respectively. The Company’s effective tax rate for the three months ended September 30, 2023 was primarily impacted by foreign tax inclusions, withholding taxes, return to provision adjustments, the impact of U.S. Department of Treasury guidance on the usage of foreign tax credits, and the mix of earnings. The effective tax rate for the first nine months of 2023 was further impacted by various other items including changes to the valuation allowance for and the usage of foreign tax credits due to an enacted law change in Brazil, and share-based compensation. Comparatively, the prior year effective tax rates were largely impacted by foreign tax inclusions, changes in the valuation allowance for foreign tax credits, the impact of audit settlements, a reduction in reserves for uncertain tax positions, withholding taxes, and the impact of forecasted earnings and the mix of such earnings. In addition, the Company’s effective tax rates for three and nine months ended September 30, 2022 were impacted by the Company recording earnings of one of its subsidiaries at a statutory tax rate of 25% while the recertification of its concessionary 15% tax rate was pending receipt.As previously reported, Houghton Italia, S.r.l was involved in a corporate income tax audit with the Italian tax authorities covering tax years 2014 through 2018. The Company settled all years 2014 through 2018 for $3.7 million and, accordingly, released all reserves relating to this audit for the settled tax years during the first quarter of 2022. The settlement is to be paid via installments through 2026 and, through September 30, 2023, the Company has paid $1.5 million of such installments. Having received approximately $1.2 million from escrow during the quarter, the Company has a remaining indemnification receivable of $3.2 million in connection with its claim against the former owners of Houghton for any pre-Combination tax liabilities arising from this matter, as well as other audit settlements and tax matters. In the first quarter of 2023, the Company was notified by the Spanish tax authorities of audits to commence for several of its legal entities operating in Spain and spanning tax years 2018 through 2021. In addition, in July 2023, the Company was notified by the Italian tax authorities of an audit to commence for one of the Company’s Italian subsidiaries for tax year 2019. Both of these audit proceedings are ongoing and the Company has been providing documentation in response to all of their inquiries. The Company has not established any reserves for these matters at this time. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table summarizes earnings per share calculations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Basic earnings per common share Net income attributable to Quaker Chemical Corporation $ 33,670 $ 25,867 $ 92,550 $ 60,026 Less: income allocated to participating securities (164) (115) (464) (250) Net income available to common shareholders $ 33,506 $ 25,752 $ 92,086 $ 59,776 Basic weighted average common shares outstanding 17,908,754 17,847,305 17,889,444 17,835,976 Basic earnings per common share $ 1.87 $ 1.44 $ 5.15 $ 3.35 Diluted earnings per common share Net income attributable to Quaker Chemical Corporation $ 33,670 $ 25,867 $ 92,550 $ 60,026 Less: income allocated to participating securities (164) (115) (464) (250) Net income available to common shareholders $ 33,506 $ 25,752 $ 92,086 $ 59,776 Basic weighted average common shares outstanding 17,908,754 17,847,305 17,889,444 17,835,976 Effect of dilutive securities 12,520 12,566 16,709 15,465 Diluted weighted average common shares outstanding 17,921,274 17,859,871 17,906,153 17,851,441 Diluted earnings per common share $ 1.87 $ 1.44 $ 5.14 $ 3.35 Certain stock options, restricted stock units, and PSUs are not included in the diluted earnings per share calculation when the effect would have been anti-dilutive. The calculated amount of anti-diluted shares not included were 11,598 and 10,453 for the three and nine months ended September 30, 2023, respectively, and 25,896 and 24,618 for the three and nine months ended September 30, 2022, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company completes its annual goodwill and indefinite-lived intangible asset impairment test during the fourth quarter of each year, or more frequently if triggering events indicate a possible impairment. The Company continually evaluates financial performance, economic conditions and other recent developments, including rising interest rates and the cost of capital among other factor s, in assessing if a triggering event indicates that the carrying values of goodwill, indefinite-lived, or long-lived assets are impaired. The Company concluded that during the third quarter the ongoing financial, economic or geopolitical conditions did not represent a triggering event. In connection with the Company’s reorganization and the associated change in reportable segments and reporting units during the first quarter of 2023, the Company performed the required impairment assessments directly before and immediately after the change in reporting units and concluded that it was not more likely than not that the fair values of any of the Company’s previous or new reporting units were less than their respective carrying amounts. Changes in the carrying amount of goodwill were as follows. Prior period information has been recast to reflect the Company’s current period reportable segments. See Note 1 of Notes to Condensed Consolidated Financial Statements. Americas EMEA Asia/Pacific Global Total Balance as of December 31, 2022 $ 215,899 $ 34,567 $ 150,375 $ 114,167 $ 515,008 Reallocation of reporting units 63,697 31,711 18,759 (114,167) — Balance as of January 1, 2023 279,596 66,278 169,134 — 515,008 Currency translation adjustments 2,561 (805) (12,307) — (10,551) Balance as of September 30, 2023 $ 282,157 $ 65,473 $ 156,827 $ — $ 504,457 Gross carrying amounts and accumulated amortization for definite-lived intangible assets were as follows: Gross Carrying Accumulated Net Book Value September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Customer lists and rights to sell $ 824,893 $ 831,600 $ 226,956 $ 191,286 $ 597,937 $ 640,314 Trademarks, formulations and product technology 157,362 158,564 52,534 46,281 104,828 112,283 Other 5,854 7,576 5,734 6,390 120 1,186 Total definite-lived intangible assets $ 988,109 $ 997,740 $ 285,224 $ 243,957 $ 702,885 $ 753,783 The Company amortizes definite-lived intangible assets on a straight-line basis over their useful lives. The Company recorded amortization expense as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Amortization expense $ 14,529 $ 14,102 $ 43,734 $ 43,343 Estimated annual aggregate amortization expense for the current year and subsequent five years and beyond is as follows: For the remainder of 2023 $ 13,455 For the year ended December 31, 2024 56,630 For the year ended December 31, 2025 55,942 For the year ended December 31, 2026 55,650 For the year ended December 31, 2027 55,309 As of September 30, 2023 and December 31, 2022, the Company had indefinite-lived intangible assets for trademarks and tradenames totaling $187.6 million and $189.1 million, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth the components of the Company’s debt: As of September 30, 2023 As of December 31, 2022 Interest Outstanding Interest Outstanding Credit Facilities: Revolver 6.0% $ 82,838 5.2% $ 195,673 U.S. Term Loan 6.7% 585,000 5.7% 596,250 Euro Term Loan 5.0% 146,918 3.1% 151,572 Industrial development bonds 5.3% 10,000 5.3% 10,000 Bank lines of credit and other debt obligations Various 1,120 Various 1,303 Total debt $ 825,876 $ 954,798 Less: debt issuance costs (1,657) (1,992) Less: short-term and current portion of long-term debts (19,246) (19,245) Total long-term debt $ 804,973 $ 933,561 As of September 30, 2023, the Company was in compliance with all of the Credit Facility covenants. See Note 20 of Notes to Consolidated Financial Statements in the Company’s 2022 Form 10-K. The weighted average variable interest rates incurred on the outstanding borrowings under the Credit Facility during the three and nine months ended September 30, 2023 were approximately 6.4% and 6.1%, respectively. As of September 30, 2023, the interest rate on the outstanding borrowings under the Credit Facility was approximately 6.3%. As part of the Credit Facility, in addition to paying interest on outstanding principal, the Company is also required to pay an annual commitment fee ranging from 0.150% to 0.275% related to unutilized commitments under the Revolver, depending on the Company’s consolidated net leverage ratio. The Company had unused capacity under the Revolver of approximately $414 million, which is net of bank letters of credit of approximately $3 million, as of September 30, 2023. In order to manage the Company’s exposure to variable interest rate risk associated with the Credit Facility, in the first quarter of 2023, the Company entered into $300.0 million notional amounts of three year interest rate swaps to convert a portion of the Company’s variable rate borrowings to an average fixed rate of 3.64% plus an applicable margin as provided in the Credit Facility based on the Company’s consolidated net leverage ratio. As of September 30, 2023, the aggregate interest rate on the swaps, including the fixed base rate plus the applicable margin, was 5.3%. See Note 17 of Notes to Condensed Consolidated Financial Statements. In connection with executing the original credit facility in 2019 and the amended Credit Facility during the second quarter of 2022, the Company capitalized an aggregate of $2.2 million of certain third-party and creditor debt issuance costs. Approximately $0.7 million of the capitalized costs were attributed to the Euro Term Loan and U.S. Term Loan. These costs were recorded as a direct offset of Long-term debt on the Condensed Consolidated Balance Sheet. Approximately $1.5 million of the capitalized costs were attributed to the Revolver and recorded within Other assets on the Condensed Consolidated Balance Sheet. These capitalized costs will collectively be amortized into Interest expense over the five year term of the Credit Facility. As of September 30, 2023, the Company had $1.7 million of debt issuance costs recorded as an offset of Long-term debt on the Condensed Consolidated Balance Sheet and $3.6 million of debt issuance costs recorded within Other assets on the Condensed Consolidated Balance Sheet. Comparatively, as of December 31, 2022, the Company had $2.0 million of debt issuance costs recorded as an offset of Long-term debt on the Condensed Consolidated Balance Sheet and $4.3 million of debt issuance costs recorded within Other assets on the Condensed Consolidated Balance Sheet. Industrial development bonds As of September 30, 2023 and December 31, 2022, the Company had fixed rate, industrial development authority bonds totaling $10.0 million in principal amount due in 2028. These bonds have similar covenants to the Credit Facility noted above. Bank lines of credit and other debt obligations The Company has certain unsecured bank lines of credit and discounting facilities in certain foreign subsidiaries, which are not collateralized. The Company’s other debt obligations primarily consist of certain domestic and foreign low interest rate or interest-free municipality-related loans, local credit facilities of certain foreign subsidiaries, and capital lease obligations. Total unused capacity under these arrangements as of September 30, 2023 was approximately $34 million. In addition to the bank letters of credit described in the “Credit facilities” subsection above, the Company’s other off-balance sheet arrangements include certain financial and other guarantees. The Company’s total bank letters of credit and guarantees outstanding as of September 30, 2023 were approximately $5 million. Interest expense, net The Company incurred the following debt related expenses included within Interest expense, net, in the Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest expense $ 12,598 $ 9,465 $ 40,863 $ 20,339 Amortization of debt issuance costs 353 353 1,059 2,589 Total $ 12,951 $ 9,818 $ 41,922 $ 22,928 Based on the variable interest rates associated with the Credit Facility, as of September 30, 2023 and as of December 31, 2022, the amounts at which the Company’s total debt were recorded are not materially different from their fair market value. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following tables show the reclassifications from and resulting balances of accumulated other comprehensive income (“AOCI”): Currency Defined Unrealized Derivative Total Balance at June 30, 2023 $ (130,738) $ (4,024) $ 91 $ 4,563 $ (130,108) Other comprehensive (loss) income before Reclassifications (25,501) 304 (802) 1,612 (24,387) Amounts reclassified from AOCI — 71 (4) 67 Related tax amounts — (94) 169 (371) (296) Balance at September 30, 2023 $ (156,239) $ (3,743) $ (546) $ 5,804 $ (154,724) Balance at June 30, 2022 $ (133,110) $ (11,269) $ (1,170) $ 303 $ (145,246) Other comprehensive (loss) income before Reclassifications (71,948) 453 (1,006) (182) (72,683) Amounts reclassified from AOCI — 210 (30) — 180 Related tax amounts — (166) 218 42 94 Balance at September 30, 2022 $ (205,058) $ (10,772) $ (1,988) $ 163 $ (217,655) Currency Defined Unrealized Derivative Total Balance as of December 31, 2022 $ (132,161) $ (4,595) $ (1,484) $ — $ (138,240) Other comprehensive income (loss) before reclassifications (24,078) 915 640 7,538 (14,985) Amounts reclassified from AOCI — 225 547 772 Related tax amounts — (288) (249) (1,734) (2,271) Balance as of September 30, 2023 $ (156,239) $ (3,743) $ (546) $ 5,804 $ (154,724) Balance as of December 31, 2021 $ (49,843) $ (13,172) $ 397 $ (1,372) $ (63,990) Other comprehensive (loss) income before reclassifications (155,215) 2,535 (3,326) 1,993 (154,013) Amounts reclassified from AOCI — 657 306 — 963 Related tax amounts — (792) 635 (458) (615) Balance as of September 30, 2022 $ (205,058) $ (10,772) $ (1,988) $ 163 $ (217,655) All reclassifications related to unrealized (loss) gain 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 noncontrolling interest are related to currency translation adjustments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company has valued its company-owned life insurance policies at fair value. During June 2023, the Company surrendered and liquidated $1.9 million of these life insurance policies. The fair values of Company-owned life insurance assets are based on quotes for like instruments with similar credit ratings and terms. These assets are subject to fair value measurement as follows: Total Fair Value Measurements as of September 30, 2023 Assets Level 1 Level 2 Level 3 Company-owned life insurance $ 285 $ — $ 285 $ — Total $ 285 $ — $ 285 $ — Total Fair Value Measurements as of December 31, 2022 Assets Level 1 Level 2 Level 3 Company-owned life insurance $ 2,114 $ — $ 2,114 $ — Total $ 2,114 $ — $ 2,114 $ — |
Hedging Activities
Hedging Activities | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Activities | Hedging ActivitiesThe Company’s ongoing business operations expose it to various risks, including fluctuating foreign exchange rates and interest rate risk. To manage these risks, the Company periodically enters into derivative financial instruments, such as foreign exchange forward contracts and interest rate swap agreements. The Company does not hold or enter into financial instruments for trading or speculative purposes. Foreign Exchange Forward Contracts A significant portion of the Company’s revenues and earnings are generated by its foreign operations. These foreign operations also represent a significant portion of the Company’s assets and liabilities. Generally, all of these foreign operations use the local currency as their functional currency and many have operations in currencies other than their functional currency, which creates foreign exchange risk. The Company uses foreign exchange forward contracts to economically hedge the impact of the variability in exchange rates on certain assets and/or liabilities denominated in certain foreign currencies. These forward contracts are marked-to-market at each reporting date. Changes in the fair value of the underlying instrument and settlements are recognized in earnings in Other (expense) income, net. The fair value of the forward contract is determined from sources independent of the Company, including the financial institutions which are party to the derivative instruments. All open foreign exchange forward contracts as of September 30, 2023 were entered into as hedges against the U.S. dollar. As of September 30, 2023, the Company had open foreign exchange forward contracts with a notional U.S. dollar value of the following: Currency September 30, Mexican Peso $ 41,900 Japanese Yen 4,500 $ 46,400 Open foreign exchange forward contracts as of September 30, 2023 had maturities occurring over a period of one month. Interest Rate Swaps In order to manage the Company’s exposure to variable interest rate risk associated with the Credit Facility, such as the Secured Overnight Financing Rate (“SOFR”), in the first quarter of 2023, the Company entered into $300.0 million notional amounts of three year interest rate swaps to convert a portion of the Company’s variable rate borrowings into a fixed rate obligation. See Note 14 of Notes to Condensed Consolidated Financial Statements. These interest rate swaps are designated as cash flow hedges and, as such, the contracts are marked-to-market at each reporting date and any unrealized gains or losses are included in AOCI to the extent effective and reclassified to interest expense in the period during which the transaction affects earnings or it becomes probable that the forecasted transaction will not occur. Interest rate swaps are entered into with a limited number of counterparties within several tranches, each of which allows for net settlement of all contracts through a single payment to participating counterparties in a single currency in the event of a default on or termination of any one contract. As such, in accordance with the Company’s accounting policy, these derivative instruments are recorded on a net basis within the Condensed Consolidated Balance Sheets. The balance sheet classification and fair values of the Company’s derivative instruments, which are Level 2 measurements, are as follows: Fair Value Condensed Consolidated September 30, December 31, Derivatives designated as cash flow hedges: Interest rate swaps Other non-current Assets $ 7,538 $ — Foreign currency forward contracts Other current liabilities (564) $ — $ 6,974 $ — The following table presents the net unrealized (gain) loss deferred to AOCI: September 30, December 31, Derivatives designated as cash flow hedges: Interest rate swaps AOCI $ 5,804 $ — The following table presents the net gain (loss) reclassified from AOCI to earnings: Location and Amount of Gain (Loss) Recognized in Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest rate swaps Interest expense, net $ 1,198 $ 134 $ 2,259 $ (882) Foreign exchange forward contracts Other (expense) income, net (29) — 2,107 — $ 1,169 $ 134 $ 4,366 $ (882) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe Company previously disclosed in its 2022 Form 10-K that two of the Company’s locations suffered property damage as a result of flooding and electrical fire, respectively. The Company maintains property and flood insurance for all of its locations globally. During the three and nine months ended September 30, 2023, there have been no significant changes to the facts or circumstances of this previously disclosed matter, other than ongoing work with the Company’s insurance adjuster and insurance carrier regarding the insurance claims submitted. Through September 30, 2023, the Company has received cumulative payments from its insurers of $5.9 million associated with these events. During the nine months ended September 30, 2023, the Company recognized a gain on insurance recoveries of $1.0 million. See Note 10 of Notes to the Condensed Consolidated Financial Statements.As previously disclosed in its 2022 Form 10-K, the Company is party to certain environmental matters and other litigation. See Note 26 of Notes to Consolidated Financial Statements in the Company’s 2022 Form 10-K. During the three and nine months ended September 30, 2023, there have been no significant changes to the facts or circumstances of any of the previously disclosed matters. In addition, during the three and nine months ended September 30, 2023, there are no new environmental matters or litigation that the Company believes will have a material adverse effect on the Company’s results of operations, cash flows, or financial condition. Although there can be no assurance regarding the outcome of any of the ongoing environmental matters or litigation the Company is party to, the Company believes that it has made adequate accruals for costs and liabilities associated with environmental matters or provisions for ongoing litigation for which it is aware. The Company has accrued approximately $6 million as of both September 30, 2023 and December 31, 2022, respectively, for these ongoing matters. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income attributable to Quaker Chemical Corporation | $ 33,670 | $ 25,867 | $ 92,550 | $ 60,026 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Jeewat Bijlani [Member] | |
Trading Arrangements, by Individual | |
Name | Jeewat Bijlani |
Title | Executive Vice President, Chief Strategy Officer |
Adoption Date | August 31, 2023 |
Arrangement Duration | 243 days |
Mr. Bijlani's Trading Arrangement, Common Stock [Member] | Jeewat Bijlani [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 2,900 |
Mr. Bijlani's Trading Arrangement, Stock Options [Member] | Jeewat Bijlani [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 6,338 |
Basis of Presentation and Des_2
Basis of Presentation and Description of Business (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation 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 pursuant to such rules and regulations. In the opinion of management, the financial statements reflect all adjustments consisting only of normal recurring adjustments, which are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods. The results for the nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”). During the first quarter of 2023, the Company reorganized its executive management team to align with its new business structure. The Company’s new structure includes three reportable segments: (i) Americas; (ii) Europe, Middle East and Africa (“EMEA”); and (iii) Asia/Pacific. Prior to the Company’s reorganization, the Company’s historical reportable segments were: (i) Americas; (ii) EMEA; (iii) Asia/Pacific; and (iv) Global Specialty Businesses. Prior period information has been recast to align with the Company’s business structure as of January 1, 2023, including reportable segments and customer industry disaggregation. As a result of the Company’s new organizational structure effective January 1, 2023, the Company reallocated goodwill previously held by the former Global Specialty Businesses segment to the remaining business segments as of January 1, 2023. However, the Company did not recast the carrying amount of goodwill for the year ended December 31, 2022. See Notes 4, 5, and 13 of Notes to Condensed Consolidated Financial Statements. |
Hyper-inflationary economies | Hyper-inflationary economies Argentina’s and Türkiye’s economies were considered hyper-inflationary under U.S. GAAP effective July 1, 2018 and April 1, 2022, respectively. As of, and for the three and nine months ended September 30, 2023, the Company's Argentine and Turkish subsidiaries represented a combined 1% and 2% of the Company’s consolidated total assets and net sales, respectively. During the three and nine months ended September 30, 2023, the Company recorded $1.2 million and $2.9 million of remeasurement losses associated with the applicable currency conversions, respectively. Comparatively, during the three and nine months ended September 30, 2022, the Company recorded $1.0 million and $1.2 million of remeasurement losses associated with the applicable currency conversions, respectively. These losses were recorded within foreign exchange losses, net, which is a component of Other (expense) income, net, in the Company’s Condensed Consolidated Statements of Operations. |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents information about the performance of the Company’s reportable segments: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net sales Americas $ 245,899 $ 254,678 $ 750,531 $ 702,580 EMEA 139,620 134,386 435,602 426,739 Asia/Pacific 105,093 103,154 300,071 329,458 Total net sales $ 490,612 $ 492,218 $ 1,486,204 $ 1,458,777 Segment operating earnings Americas $ 69,148 $ 66,749 $ 204,280 $ 164,065 EMEA 27,922 15,479 81,076 58,803 Asia/Pacific 30,963 26,723 86,604 76,146 Total segment operating earnings 128,033 108,951 371,960 299,014 Combination, integration and other acquisition-related expenses — (2,107) — (7,992) Restructuring and related (charges) credits, net (1,019) 1,423 (6,034) 604 Non-operating and administrative expenses (52,280) (47,852) (154,001) (139,894) Depreciation of corporate assets and amortization (15,216) (15,806) (45,683) (45,817) Operating income 59,518 44,609 166,242 105,915 Other (expense) income, net (2,713) 85 (8,558) (10,520) Interest expense, net (12,781) (8,389) (38,744) (20,228) Income before taxes and equity in net income of associated companies $ 44,024 $ 36,305 $ 118,940 $ 75,167 The following table summarizes inter-segment revenues. All inter-segment transactions have been eliminated from each reportable segment’s net sales and earnings for all periods presented in the above tables. Three Months Ended Nine Months Ended 2023 2022 2023 2022 Americas $ 1,772 $ 2,702 $ 6,778 $ 9,200 EMEA 5,161 9,448 18,718 37,259 Asia/Pacific 793 327 1,329 739 |
Net Sales and Revenue Recogni_2
Net Sales and Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables disaggregate the Company’s net sales by geographic region, customer industries, and timing of revenue recognized. Prior period information has been recast to reflect the Company’s current period customer industry disaggregation. See Note 1 of Notes to Condensed Consolidated Financial Statements. Three Months Ended September 30, 2023 Americas EMEA Asia/Pacific Consolidated Customer Industries Metals $ 67,957 $ 32,630 $ 49,320 $ 149,907 Metalworking and other 177,942 106,990 55,773 340,705 $ 245,899 $ 139,620 $ 105,093 $ 490,612 Timing of Revenue Recognized Product sales at a point in time $ 235,209 $ 128,586 $ 102,305 $ 466,100 Services transferred over time 10,690 11,034 2,788 24,512 $ 245,899 $ 139,620 $ 105,093 $ 490,612 Nine Months Ended September 30, 2023 Americas EMEA Asia/Pacific Consolidated Customer Industries Metals $ 204,834 $ 104,376 $ 144,109 $ 453,319 Metalworking and other 545,697 331,226 155,962 1,032,885 $ 750,531 $ 435,602 $ 300,071 $ 1,486,204 Timing of Revenue Recognized Product sales at a point in time $ 718,187 $ 402,508 $ 291,740 $ 1,412,435 Services transferred over time 32,344 33,094 8,331 73,769 $ 750,531 $ 435,602 $ 300,071 $ 1,486,204 Three Months Ended September 30, 2022 Americas EMEA Asia/Pacific Consolidated Customer Industries Metals $ 67,943 $ 32,748 $ 51,341 $ 152,032 Metalworking and other 186,735 101,638 51,813 340,186 $ 254,678 $ 134,386 $ 103,154 $ 492,218 Timing of Revenue Recognized Product sales at a point in time $ 243,699 $ 124,566 $ 99,929 $ 468,194 Services transferred over time 10,979 9,820 3,225 24,024 $ 254,678 $ 134,386 $ 103,154 $ 492,218 Nine Months Ended September 30, 2022 Americas EMEA Asia/Pacific Consolidated Customer Industries Metals $ 185,784 $ 107,163 $ 163,239 $ 456,186 Metalworking and other 516,796 319,576 166,219 1,002,591 $ 702,580 $ 426,739 $ 329,458 $ 1,458,777 Timing of Revenue Recognized Product sales at a point in time $ 669,945 $ 396,944 $ 321,031 $ 1,387,920 Services transferred over time 32,635 29,795 8,427 70,857 $ 702,580 $ 426,739 $ 329,458 $ 1,458,777 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease, Cost | The components of the Company’s lease expense are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Operating lease expense $ 3,886 $ 3,664 $ 11,532 $ 10,592 Short-term lease expense 193 201 587 625 Supplemental cash flow information related to the Company’s leases is as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,917 $ 3,768 $ 11,547 $ 10,575 Non-cash lease liabilities activity: Leased assets obtained in exchange for new operating lease liabilities 2,910 2,599 6,566 10,672 Supplemental balance sheet information related to the Company’s leases is as follows: September 30, December 31, Right of use lease assets $ 38,595 $ 43,766 Other current liabilities 12,113 12,024 Long-term lease liabilities 22,163 26,967 Total operating lease liabilities $ 34,276 $ 38,991 Weighted average remaining lease term (years) 4.82 5.10 Weighted average discount rate 4.67 % 4.36 % |
Schedule of Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities were as follows: September 30, For the remainder of 2023 $ 3,691 For the year ended December 31, 2024 12,589 For the year ended December 31, 2025 8,417 For the year ended December 31, 2026 6,286 For the year ended December 31, 2027 3,051 For the year ended December 31, 2028 and beyond 5,614 Total lease payments 39,648 Less: imputed interest (5,372) Present value of lease liabilities $ 34,276 |
Restructuring and Related Act_2
Restructuring and Related Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | Changes in the Company’s accruals for its restructuring programs are as follows: Restructuring Programs Accrued restructuring as of December 31, 2022 $ 5,483 Restructuring and related charges, net 6,034 Cash payments (7,914) Currency translation adjustments (13) Accrued restructuring as of September 30, 2023 $ 3,590 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Payment Arrangement, Cost by Plan | The Company recognized the following share-based compensation expense in its Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Stock options $ 203 $ 533 $ 837 $ 1,269 Non-vested stock awards and restricted stock units 2,429 1,783 7,192 4,998 Director stock ownership plan 30 9 56 53 Performance stock units 1,113 875 3,104 2,314 Total share-based compensation expense $ 3,775 $ 3,200 $ 11,189 $ 8,634 |
Schedule Of Monte Carlo Option Pricing Model And The Assumptions | The grant-date fair value of the PSUs valued using a Monte Carlo simulation, which included the following assumptions set forth in the table below: 2023 Number of PSUs granted 16,861 Risk-free interest rate 3.85% Dividend yield 0.96% Expected term (years) 3.0 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits, Description [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost (income) are as follows: Three Months Ended September 30, Nine Months Ended September 30, Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits 2023 2022 2023 2022 2023 2022 2023 2022 Service cost $ 109 $ 166 $ — $ 1 $ 320 $ 520 $ — $ 1 Interest cost 2,487 1,272 14 8 7,452 3,949 51 19 Expected return on plan assets (2,033) (1,942) — — (6,056) (6,038) — — Actuarial loss (gain) amortization 103 238 (36) (23) 308 743 (95) (70) Prior service cost (income) amortization 18 3 (4) (8) 26 8 (12) (17) Net periodic benefit cost (income) $ 684 $ (263) $ (26) $ (22) $ 2,050 $ (818) $ (56) $ (67) |
Other (expense) income, net (Ta
Other (expense) income, net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating (Expense) Income | The components of Other (expense) income, net are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Income from third party license fees $ 245 $ 253 $ 891 $ 906 Foreign exchange losses, net (2,498) (1,928) (10,049) (5,859) (Loss) gain on disposals of property, plant, equipment and other assets, net (25) 48 (91) 33 Non-income tax refunds and other related credits (expense) 91 122 1,339 (1,617) Pension and postretirement benefit (costs) income, non-service components (549) 452 (1,674) 1,406 Facility remediation recoveries, net — 1,104 1,014 1,104 Loss on extinguishment of debt — — — (6,763) Other non-operating income, net 23 34 12 270 Total other (expense) income, net $ (2,713) $ 85 $ (8,558) $ (10,520) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes earnings per share calculations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Basic earnings per common share Net income attributable to Quaker Chemical Corporation $ 33,670 $ 25,867 $ 92,550 $ 60,026 Less: income allocated to participating securities (164) (115) (464) (250) Net income available to common shareholders $ 33,506 $ 25,752 $ 92,086 $ 59,776 Basic weighted average common shares outstanding 17,908,754 17,847,305 17,889,444 17,835,976 Basic earnings per common share $ 1.87 $ 1.44 $ 5.15 $ 3.35 Diluted earnings per common share Net income attributable to Quaker Chemical Corporation $ 33,670 $ 25,867 $ 92,550 $ 60,026 Less: income allocated to participating securities (164) (115) (464) (250) Net income available to common shareholders $ 33,506 $ 25,752 $ 92,086 $ 59,776 Basic weighted average common shares outstanding 17,908,754 17,847,305 17,889,444 17,835,976 Effect of dilutive securities 12,520 12,566 16,709 15,465 Diluted weighted average common shares outstanding 17,921,274 17,859,871 17,906,153 17,851,441 Diluted earnings per common share $ 1.87 $ 1.44 $ 5.14 $ 3.35 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill were as follows. Prior period information has been recast to reflect the Company’s current period reportable segments. See Note 1 of Notes to Condensed Consolidated Financial Statements. Americas EMEA Asia/Pacific Global Total Balance as of December 31, 2022 $ 215,899 $ 34,567 $ 150,375 $ 114,167 $ 515,008 Reallocation of reporting units 63,697 31,711 18,759 (114,167) — Balance as of January 1, 2023 279,596 66,278 169,134 — 515,008 Currency translation adjustments 2,561 (805) (12,307) — (10,551) Balance as of September 30, 2023 $ 282,157 $ 65,473 $ 156,827 $ — $ 504,457 |
Schedule of Finite-Lived Intangible Assets | Gross carrying amounts and accumulated amortization for definite-lived intangible assets were as follows: Gross Carrying Accumulated Net Book Value September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Customer lists and rights to sell $ 824,893 $ 831,600 $ 226,956 $ 191,286 $ 597,937 $ 640,314 Trademarks, formulations and product technology 157,362 158,564 52,534 46,281 104,828 112,283 Other 5,854 7,576 5,734 6,390 120 1,186 Total definite-lived intangible assets $ 988,109 $ 997,740 $ 285,224 $ 243,957 $ 702,885 $ 753,783 |
Schedule of Finite-lived Intangible Assets Amortization Expense | The Company recorded amortization expense as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Amortization expense $ 14,529 $ 14,102 $ 43,734 $ 43,343 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated annual aggregate amortization expense for the current year and subsequent five years and beyond is as follows: For the remainder of 2023 $ 13,455 For the year ended December 31, 2024 56,630 For the year ended December 31, 2025 55,942 For the year ended December 31, 2026 55,650 For the year ended December 31, 2027 55,309 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table sets forth the components of the Company’s debt: As of September 30, 2023 As of December 31, 2022 Interest Outstanding Interest Outstanding Credit Facilities: Revolver 6.0% $ 82,838 5.2% $ 195,673 U.S. Term Loan 6.7% 585,000 5.7% 596,250 Euro Term Loan 5.0% 146,918 3.1% 151,572 Industrial development bonds 5.3% 10,000 5.3% 10,000 Bank lines of credit and other debt obligations Various 1,120 Various 1,303 Total debt $ 825,876 $ 954,798 Less: debt issuance costs (1,657) (1,992) Less: short-term and current portion of long-term debts (19,246) (19,245) Total long-term debt $ 804,973 $ 933,561 |
Schedule of Interest Income and Interest Expense Disclosure | The Company incurred the following debt related expenses included within Interest expense, net, in the Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest expense $ 12,598 $ 9,465 $ 40,863 $ 20,339 Amortization of debt issuance costs 353 353 1,059 2,589 Total $ 12,951 $ 9,818 $ 41,922 $ 22,928 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables show the reclassifications from and resulting balances of accumulated other comprehensive income (“AOCI”): Currency Defined Unrealized Derivative Total Balance at June 30, 2023 $ (130,738) $ (4,024) $ 91 $ 4,563 $ (130,108) Other comprehensive (loss) income before Reclassifications (25,501) 304 (802) 1,612 (24,387) Amounts reclassified from AOCI — 71 (4) 67 Related tax amounts — (94) 169 (371) (296) Balance at September 30, 2023 $ (156,239) $ (3,743) $ (546) $ 5,804 $ (154,724) Balance at June 30, 2022 $ (133,110) $ (11,269) $ (1,170) $ 303 $ (145,246) Other comprehensive (loss) income before Reclassifications (71,948) 453 (1,006) (182) (72,683) Amounts reclassified from AOCI — 210 (30) — 180 Related tax amounts — (166) 218 42 94 Balance at September 30, 2022 $ (205,058) $ (10,772) $ (1,988) $ 163 $ (217,655) Currency Defined Unrealized Derivative Total Balance as of December 31, 2022 $ (132,161) $ (4,595) $ (1,484) $ — $ (138,240) Other comprehensive income (loss) before reclassifications (24,078) 915 640 7,538 (14,985) Amounts reclassified from AOCI — 225 547 772 Related tax amounts — (288) (249) (1,734) (2,271) Balance as of September 30, 2023 $ (156,239) $ (3,743) $ (546) $ 5,804 $ (154,724) Balance as of December 31, 2021 $ (49,843) $ (13,172) $ 397 $ (1,372) $ (63,990) Other comprehensive (loss) income before reclassifications (155,215) 2,535 (3,326) 1,993 (154,013) Amounts reclassified from AOCI — 657 306 — 963 Related tax amounts — (792) 635 (458) (615) Balance as of September 30, 2022 $ (205,058) $ (10,772) $ (1,988) $ 163 $ (217,655) |
Fair Value Measurements - (Tabl
Fair Value Measurements - (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Subject to Fair Value Measurements | These assets are subject to fair value measurement as follows: Total Fair Value Measurements as of September 30, 2023 Assets Level 1 Level 2 Level 3 Company-owned life insurance $ 285 $ — $ 285 $ — Total $ 285 $ — $ 285 $ — Total Fair Value Measurements as of December 31, 2022 Assets Level 1 Level 2 Level 3 Company-owned life insurance $ 2,114 $ — $ 2,114 $ — Total $ 2,114 $ — $ 2,114 $ — |
Hedging Activities (Tables)
Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of September 30, 2023, the Company had open foreign exchange forward contracts with a notional U.S. dollar value of the following: Currency September 30, Mexican Peso $ 41,900 Japanese Yen 4,500 $ 46,400 |
Schedule of Balance Sheet Classification and Fair Values of Derivative Instruments | The balance sheet classification and fair values of the Company’s derivative instruments, which are Level 2 measurements, are as follows: Fair Value Condensed Consolidated September 30, December 31, Derivatives designated as cash flow hedges: Interest rate swaps Other non-current Assets $ 7,538 $ — Foreign currency forward contracts Other current liabilities (564) $ — $ 6,974 $ — The following table presents the net unrealized (gain) loss deferred to AOCI: September 30, December 31, Derivatives designated as cash flow hedges: Interest rate swaps AOCI $ 5,804 $ — The following table presents the net gain (loss) reclassified from AOCI to earnings: Location and Amount of Gain (Loss) Recognized in Three Months Ended Nine Months Ended 2023 2022 2023 2022 Interest rate swaps Interest expense, net $ 1,198 $ 134 $ 2,259 $ (882) Foreign exchange forward contracts Other (expense) income, net (29) — 2,107 — $ 1,169 $ 134 $ 4,366 $ (882) |
Basis of Presentation and Des_3
Basis of Presentation and Description of Business (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) country | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment country | Sep. 30, 2022 USD ($) | |
Number of reportable segments | segment | 3 | |||
Number of countries in which entity operates | country | 25 | 25 | ||
Argentina | Argentine and Turkish Subsidiaries | ||||
Currency conversion impacts of hyper-inflationary accounting | $ 1.2 | $ 2.9 | ||
Argentina | Argentine and Turkish Subsidiaries | Assets Total | Geographic Concentration Risk | ||||
Concentration risk (as a percent) | 1% | 1% | ||
Argentina | Argentine and Turkish Subsidiaries | Sales Revenue Net | Geographic Concentration Risk | ||||
Concentration risk (as a percent) | 2% | 2% | ||
Argentina | ARGENTINA | ||||
Currency conversion impacts of hyper-inflationary accounting | $ 1 | $ 1.2 |
Business Acquisitions - (Detail
Business Acquisitions - (Details) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||||
Oct. 31, 2022 EUR (€) | Oct. 31, 2022 USD ($) | Jan. 31, 2022 EUR (€) | Jan. 31, 2022 USD ($) | Nov. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | |||||||
Cash transferred to Houghton shareholders | $ 7.1 | ||||||
Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Earnouts | 4.5 | ||||||
Assets Related To Sealing And Impregnation Of Metal Castings | |||||||
Business Acquisition [Line Items] | |||||||
Asset acquisition, consideration transferred | € 1.2 | $ 1.4 | |||||
Business Related to Pickling and Rinsing Products and Services | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | € 3.5 | $ 3.5 | |||||
Business Related To Pickling Inhibitor Technologies | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 8 | ||||||
Purchase accounting adjustments | $ 0.1 | ||||||
Baron Industries | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 11 | ||||||
Earnouts | $ 1.1 | ||||||
Post closing adjustment including earnouts | $ 0.1 | ||||||
Coral Chemical Company (Coral) | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Loss contingency, estimate of possible loss | 1.5 | ||||||
Coral Chemical Company (Coral) | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Loss contingency, estimate of possible loss | $ 0 |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Number of reportable segments | 3 |
Business Segments - Performance
Business Segments - Performance of Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 490,612 | $ 492,218 | $ 1,486,204 | $ 1,458,777 |
Combination, integration and other acquisition-related expenses | 0 | (2,107) | 0 | (7,992) |
Restructuring and related (charges) credits, net | (1,019) | 1,423 | (6,034) | 604 |
Non-operating and administrative expenses | (52,280) | (47,852) | (154,001) | (139,894) |
Depreciation of corporate assets and amortization | (15,216) | (15,806) | (45,683) | (45,817) |
Operating income | 59,518 | 44,609 | 166,242 | 105,915 |
Other (expense) income, net | (2,713) | 85 | (8,558) | (10,520) |
Interest expense, net | (12,781) | (8,389) | (38,744) | (20,228) |
Income before taxes and equity in net income of associated companies | 44,024 | 36,305 | 118,940 | 75,167 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 490,612 | 492,218 | 1,486,204 | 1,458,777 |
Segment operating earnings | 128,033 | 108,951 | 371,960 | 299,014 |
Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 245,899 | 254,678 | 750,531 | 702,580 |
Segment operating earnings | 69,148 | 66,749 | 204,280 | 164,065 |
Operating Segments | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 139,620 | 134,386 | 435,602 | 426,739 |
Segment operating earnings | 27,922 | 15,479 | 81,076 | 58,803 |
Operating Segments | Asia/Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 105,093 | 103,154 | 300,071 | 329,458 |
Segment operating earnings | 30,963 | 26,723 | 86,604 | 76,146 |
Intersegment Sales Elimination | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,772 | 2,702 | 6,778 | 9,200 |
Intersegment Sales Elimination | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 5,161 | 9,448 | 18,718 | 37,259 |
Intersegment Sales Elimination | Asia/Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 793 | $ 327 | $ 1,329 | $ 739 |
Net Sales and Revenue Recogni_3
Net Sales and Revenue Recognition - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Concentration Risk [Line Items] | |||||
Revenue recognized under net reporting arrangements | $ 21.6 | $ 21.4 | $ 63.2 | $ 61.7 | |
Deferred revenue | $ 2.8 | $ 2.8 | $ 5.7 | ||
Number of reportable segments | segment | 3 | ||||
Top Five Customers | Sales Revenue Net | Customer Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (as a percent) | 11% | ||||
Largest Customers | Sales Revenue Net | Customer Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (as a percent) | 3% |
Net Sales and Revenue Recogni_4
Net Sales and Revenue Recognition - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Product Information [Line Items] | ||||
Net sales | $ 490,612 | $ 492,218 | $ 1,486,204 | $ 1,458,777 |
Operating Segments | ||||
Product Information [Line Items] | ||||
Net sales | 490,612 | 492,218 | 1,486,204 | 1,458,777 |
Operating Segments | Product sales at a point in time | ||||
Product Information [Line Items] | ||||
Net sales | 466,100 | 468,194 | 1,412,435 | 1,387,920 |
Operating Segments | Services transferred over time | ||||
Product Information [Line Items] | ||||
Net sales | 24,512 | 24,024 | 73,769 | 70,857 |
Operating Segments | Americas | ||||
Product Information [Line Items] | ||||
Net sales | 245,899 | 254,678 | 750,531 | 702,580 |
Operating Segments | Americas | Product sales at a point in time | ||||
Product Information [Line Items] | ||||
Net sales | 235,209 | 243,699 | 718,187 | 669,945 |
Operating Segments | Americas | Services transferred over time | ||||
Product Information [Line Items] | ||||
Net sales | 10,690 | 10,979 | 32,344 | 32,635 |
Operating Segments | EMEA | ||||
Product Information [Line Items] | ||||
Net sales | 139,620 | 134,386 | 435,602 | 426,739 |
Operating Segments | EMEA | Product sales at a point in time | ||||
Product Information [Line Items] | ||||
Net sales | 128,586 | 124,566 | 402,508 | 396,944 |
Operating Segments | EMEA | Services transferred over time | ||||
Product Information [Line Items] | ||||
Net sales | 11,034 | 9,820 | 33,094 | 29,795 |
Operating Segments | Asia/Pacific | ||||
Product Information [Line Items] | ||||
Net sales | 105,093 | 103,154 | 300,071 | 329,458 |
Operating Segments | Asia/Pacific | Product sales at a point in time | ||||
Product Information [Line Items] | ||||
Net sales | 102,305 | 99,929 | 291,740 | 321,031 |
Operating Segments | Asia/Pacific | Services transferred over time | ||||
Product Information [Line Items] | ||||
Net sales | 2,788 | 3,225 | 8,331 | 8,427 |
Operating Segments | Metals | ||||
Product Information [Line Items] | ||||
Net sales | 149,907 | 152,032 | 453,319 | 456,186 |
Operating Segments | Metals | Americas | ||||
Product Information [Line Items] | ||||
Net sales | 67,957 | 67,943 | 204,834 | 185,784 |
Operating Segments | Metals | EMEA | ||||
Product Information [Line Items] | ||||
Net sales | 32,630 | 32,748 | 104,376 | 107,163 |
Operating Segments | Metals | Asia/Pacific | ||||
Product Information [Line Items] | ||||
Net sales | 49,320 | 51,341 | 144,109 | 163,239 |
Operating Segments | Metalworking and other | ||||
Product Information [Line Items] | ||||
Net sales | 340,705 | 340,186 | 1,032,885 | 1,002,591 |
Operating Segments | Metalworking and other | Americas | ||||
Product Information [Line Items] | ||||
Net sales | 177,942 | 186,735 | 545,697 | 516,796 |
Operating Segments | Metalworking and other | EMEA | ||||
Product Information [Line Items] | ||||
Net sales | 106,990 | 101,638 | 331,226 | 319,576 |
Operating Segments | Metalworking and other | Asia/Pacific | ||||
Product Information [Line Items] | ||||
Net sales | $ 55,773 | $ 51,813 | $ 155,962 | $ 166,219 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Variable lease cost | $ 0 | $ 0 | $ 0 | $ 0 |
Sublease income | $ 0 | $ 0 | $ 0 | $ 0 |
Facilities Vehicles and Machinery and Equipment | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms (in years) | 8 years | 8 years | ||
Land | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining lease terms (in years) | 92 years | 92 years |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Lease, Cost [Abstract] | |||||
Operating lease expense | $ 3,886 | $ 3,664 | $ 11,532 | $ 10,592 | |
Short-term lease expense | 193 | 201 | 587 | 625 | |
Supplemental cash flow information related to leases | |||||
Operating cash flows from operating leases | 3,917 | 3,768 | 11,547 | 10,575 | |
Leased assets obtained in exchange for new operating lease liabilities | 2,910 | $ 2,599 | 6,566 | $ 10,672 | |
Supplemental balance sheet information | |||||
Right of use lease assets | 38,595 | 38,595 | $ 43,766 | ||
Other current liabilities | 12,113 | 12,113 | 12,024 | ||
Long-term lease liabilities | 22,163 | 22,163 | 26,967 | ||
Total operating lease liabilities | $ 34,276 | $ 34,276 | $ 38,991 | ||
Weighted average remaining lease term (years) | 4 years 9 months 25 days | 4 years 9 months 25 days | 5 years 1 month 6 days | ||
Weighted average discount rate | 4.67% | 4.67% | 4.36% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
For the remainder of 2023 | $ 3,691 | |
For the year ended December 31, 2024 | 12,589 | |
For the year ended December 31, 2025 | 8,417 | |
For the year ended December 31, 2026 | 6,286 | |
For the year ended December 31, 2027 | 3,051 | |
For the year ended December 31, 2028 and beyond | 5,614 | |
Total lease payments | 39,648 | |
Less: imputed interest | (5,372) | |
Present value of lease liabilities | $ 34,276 | $ 38,991 |
Restructuring and Related Act_3
Restructuring and Related Activities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) position | Sep. 30, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Number of positions eliminated | position | 100 | |||
Real estate, held-for-sale | $ 6,900 | $ 6,900 | ||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and related charges, net | 1,019 | $ (1,423) | 6,034 | $ (604) |
Restructuring Programs | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued restructuring, beginning balance | 5,483 | |||
Restructuring and related charges, net | 6,034 | |||
Cash payments | (7,914) | |||
Currency translation adjustments | (13) | |||
Accrued restructuring, ending balance | $ 3,590 | $ 3,590 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 3,775 | $ 3,200 | $ 11,189 | $ 8,634 |
Stock options | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 203 | 533 | 837 | 1,269 |
Non-vested stock awards and restricted stock units | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 2,429 | 1,783 | 7,192 | 4,998 |
Director stock ownership plan | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 30 | 9 | 56 | 53 |
Performance stock units | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 1,113 | $ 875 | $ 3,104 | $ 2,314 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 3,775 | $ 3,200 | $ 11,189 | $ 8,634 |
Combination And Other Acquisition-Related | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 100 | 200 | ||
Share-Based Payment Arrangement, Option | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Unrecognized compensation expense, options | 500 | $ 500 | ||
Weighted average remaining life, nonvested stock awards (in years) | 10 months 24 days | |||
Restricted Stock | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Weighted average remaining life, nonvested stock awards (in years) | 1 year 4 months 24 days | |||
Nonvested stock awards granted (in shares) | 38,894 | |||
Unrecognized share-based compensation expense, nonvested stock award | 8,000 | $ 8,000 | ||
Restricted Stock | Minimum | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Option award vesting period (in years) | 1 year | |||
Restricted Stock | Maximum | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Option award vesting period (in years) | 3 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Weighted average remaining life, nonvested stock awards (in years) | 1 year 6 months | |||
Nonvested stock awards granted (in shares) | 6,675 | |||
Unrecognized share-based compensation expense, nonvested stock award | 1,600 | $ 1,600 | ||
Performance Stock Units | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 1,113 | $ 875 | 3,104 | $ 2,314 |
Unrecognized compensation expense, options | $ 8,000 | $ 8,000 | ||
Weighted average remaining life, nonvested stock awards (in years) | 2 years 2 months 12 days | |||
Vesting shares target lower (as a percent) | 0% | |||
Vesting shares target upper (as a percent) | 200% | |||
Estimated future PSUs issued (in shares) | 25,613 | 25,613 | ||
Performance Stock Units | Maximum | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Option award vesting period (in years) | 3 years |
Share-Based Compensation - Mont
Share-Based Compensation - Monte Carlo Simulation on Grant Date (Details) - Performance Stock Units | 9 Months Ended |
Sep. 30, 2023 shares | |
2023 Grants | |
Number of PSUs granted (in shares) | 16,861 |
Risk-free interest rate | 3.85% |
Dividend yield | 0.96% |
Expected term (years) | 3 years |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pension Benefits | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 109 | $ 166 | $ 320 | $ 520 |
Interest cost | 2,487 | 1,272 | 7,452 | 3,949 |
Expected return on plan assets | (2,033) | (1,942) | (6,056) | (6,038) |
Actuarial loss (gain) amortization | 103 | 238 | 308 | 743 |
Prior service cost (income) amortization | 18 | 3 | 26 | 8 |
Net periodic benefit cost (income) | 684 | (263) | 2,050 | (818) |
Other Postretirement Benefits | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 0 | 1 | 0 | 1 |
Interest cost | 14 | 8 | 51 | 19 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Actuarial loss (gain) amortization | (36) | (23) | (95) | (70) |
Prior service cost (income) amortization | (4) | (8) | (12) | (17) |
Net periodic benefit cost (income) | $ (26) | $ (22) | $ (56) | $ (67) |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Jul. 31, 2023 | Sep. 30, 2023 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, plan assets, liquidated assets | $ 50 | |
Employer contributions | $ 3.4 | |
Expected future employer contributions, remainder of fiscal year | 5.2 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 0.1 | |
Expected future employer contributions, remainder of fiscal year | $ 0.2 |
Other (expense) income, net (De
Other (expense) income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Income from third party license fees | $ 245 | $ 253 | $ 891 | $ 906 |
Foreign exchange losses, net | (2,498) | (1,928) | (10,049) | (5,859) |
(Loss) gain on disposals of property, plant, equipment and other assets, net | (25) | 48 | (91) | 33 |
Non-income tax refunds and other related credits (expense) | 91 | 122 | 1,339 | (1,617) |
Pension and postretirement benefit (costs) income, non-service components | (549) | 452 | (1,674) | 1,406 |
Facility remediation recoveries, net | 0 | 1,104 | 1,014 | 1,104 |
Loss on extinguishment of debt | 0 | 0 | 0 | (6,763) |
Other non-operating income, net | 23 | 34 | 12 | 270 |
Total other (expense) income, net | $ (2,713) | $ 85 | $ (8,558) | $ (10,520) |
Income Taxes and Uncertain In_2
Income Taxes and Uncertain Income Tax Positions - (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Income Tax Examination [Line Items] | |||||
Effective tax rate (as a percent) | 30.90% | 28.10% | 31.10% | 19.20% | |
Italy | Houghton | Foreign Tax Authority | |||||
Income Tax Examination [Line Items] | |||||
Tax settlement final amount due to tax authorities | $ 3.7 | ||||
Cumulative payments for tax settlements | $ 1.5 | $ 1.5 | |||
Amount received from an escrow | $ 1.2 | ||||
Unrecognized tax benefits, period increase | $ 3.2 |
Earnings Per Share - Basic (Det
Earnings Per Share - Basic (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Quaker Chemical Corporation | $ 33,670 | $ 25,867 | $ 92,550 | $ 60,026 |
Less: income allocated to participating securities | (164) | (115) | (464) | (250) |
Net income available to common shareholders | $ 33,506 | $ 25,752 | $ 92,086 | $ 59,776 |
Basic weighted average common shares outstanding (in shares) | 17,908,754 | 17,847,305 | 17,889,444 | 17,835,976 |
Basic earnings per common share (in dollars per share) | $ 1.87 | $ 1.44 | $ 5.15 | $ 3.35 |
Earnings Per Share - Diluted (D
Earnings Per Share - Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Quaker Chemical Corporation | $ 33,670 | $ 25,867 | $ 92,550 | $ 60,026 |
Less: income allocated to participating securities | (164) | (115) | (464) | (250) |
Net income available to common shareholders | $ 33,506 | $ 25,752 | $ 92,086 | $ 59,776 |
Basic weighted average common shares outstanding (in shares) | 17,908,754 | 17,847,305 | 17,889,444 | 17,835,976 |
Effect of dilutive securities (in shares) | 12,520 | 12,566 | 16,709 | 15,465 |
Diluted weighted average common shares outstanding (in shares) | 17,921,274 | 17,859,871 | 17,906,153 | 17,851,441 |
Diluted earnings per common share (in dollars per share) | $ 1.87 | $ 1.44 | $ 5.14 | $ 3.35 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Antidilutive shares (in share) | 11,598 | 25,896 | 10,453 | 24,618 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2023 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 515,008 | |
Currency translation adjustments | (10,551) | |
Ending balance | $ 515,008 | 504,457 |
Previously Reported | ||
Goodwill [Roll Forward] | ||
Beginning balance | 515,008 | |
Ending balance | 515,008 | |
Reallocation of Reporting Units | ||
Goodwill [Roll Forward] | ||
Reallocation of reporting units | 0 | |
Operating Segments | Advanced solutions | ||
Goodwill [Roll Forward] | ||
Beginning balance | 0 | |
Currency translation adjustments | 0 | |
Ending balance | 0 | 0 |
Operating Segments | Americas | ||
Goodwill [Roll Forward] | ||
Beginning balance | 279,596 | |
Currency translation adjustments | 2,561 | |
Ending balance | 279,596 | 282,157 |
Operating Segments | EMEA | ||
Goodwill [Roll Forward] | ||
Beginning balance | 66,278 | |
Currency translation adjustments | (805) | |
Ending balance | 66,278 | 65,473 |
Operating Segments | Asia/Pacific | ||
Goodwill [Roll Forward] | ||
Beginning balance | 169,134 | |
Currency translation adjustments | (12,307) | |
Ending balance | 169,134 | 156,827 |
Operating Segments | Previously Reported | Advanced solutions | ||
Goodwill [Roll Forward] | ||
Beginning balance | 114,167 | |
Ending balance | 114,167 | |
Operating Segments | Previously Reported | Americas | ||
Goodwill [Roll Forward] | ||
Beginning balance | 215,899 | |
Ending balance | 215,899 | |
Operating Segments | Previously Reported | EMEA | ||
Goodwill [Roll Forward] | ||
Beginning balance | 34,567 | |
Ending balance | 34,567 | |
Operating Segments | Previously Reported | Asia/Pacific | ||
Goodwill [Roll Forward] | ||
Beginning balance | $ 150,375 | |
Ending balance | 150,375 | |
Operating Segments | Reallocation of Reporting Units | Advanced solutions | ||
Goodwill [Roll Forward] | ||
Reallocation of reporting units | (114,167) | |
Operating Segments | Reallocation of Reporting Units | Americas | ||
Goodwill [Roll Forward] | ||
Reallocation of reporting units | 63,697 | |
Operating Segments | Reallocation of Reporting Units | EMEA | ||
Goodwill [Roll Forward] | ||
Reallocation of reporting units | 31,711 | |
Operating Segments | Reallocation of Reporting Units | Asia/Pacific | ||
Goodwill [Roll Forward] | ||
Reallocation of reporting units | $ 18,759 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Gross Carrying Amounts and Accumulated Amortization for Definite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 988,109 | $ 997,740 |
Accumulated Amortization | 285,224 | 243,957 |
Net Book Value | 702,885 | 753,783 |
Customer lists and rights to sell | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 824,893 | 831,600 |
Accumulated Amortization | 226,956 | 191,286 |
Net Book Value | 597,937 | 640,314 |
Trademarks, formulations and product technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 157,362 | 158,564 |
Accumulated Amortization | 52,534 | 46,281 |
Net Book Value | 104,828 | 112,283 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,854 | 7,576 |
Accumulated Amortization | 5,734 | 6,390 |
Net Book Value | $ 120 | $ 1,186 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 14,529 | $ 14,102 | $ 43,734 | $ 43,343 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Intangible Assets - Future Amortization (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
For the remainder of 2023 | $ 13,455 |
For the year ended December 31, 2024 | 56,630 |
For the year ended December 31, 2025 | 55,942 |
For the year ended December 31, 2026 | 55,650 |
For the year ended December 31, 2027 | $ 55,309 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Indefinite Lived (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite lived intangible assets | $ 187.6 | |
Houghton Combination | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived trademarks | $ 189.1 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 825,876 | $ 954,798 |
Less: debt issuance costs | (1,657) | (1,992) |
Less: short-term and current portion of long-term debts | (19,246) | (19,245) |
Long-term debt | $ 804,973 | $ 933,561 |
Revolver | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6% | 5.20% |
Outstanding Balance | $ 82,838 | $ 195,673 |
U.S. Term Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.70% | 5.70% |
Outstanding Balance | $ 585,000 | $ 596,250 |
Euro Term Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5% | 3.10% |
Outstanding Balance | $ 146,918 | $ 151,572 |
Industrial development bonds | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.30% | 5.30% |
Outstanding Balance | $ 10,000 | $ 10,000 |
Bank lines of credit and other debt obligations | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 1,120 | $ 1,303 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Interest rate swaps | |||||
Debt Instrument [Line Items] | |||||
Derivative liability, notional amount | $ 300,000,000 | ||||
Derivative term (in years) | 3 years | ||||
Derivative, fixed interest rate (as a percent) | 3.64% | ||||
Derivative variable interest rate (as a percent) | 5.30% | 5.30% | |||
Other Assets | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 3,600,000 | $ 3,600,000 | $ 4,300,000 | ||
Euro Term Loan | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 150,000,000 | ||||
Debt issuance costs | 700,000 | ||||
U.S. Term Loan | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 600,000,000 | ||||
Debt issuance costs | 700,000 | ||||
Revolver | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 500,000,000 | ||||
Credit faclity as percentage of consolidated EBITDA (as a percent) | 100% | ||||
Borrowings outstanding | 414,000,000 | 414,000,000 | |||
Letters of credit outstanding amount | 3,000,000 | 3,000,000 | |||
Debt issuance costs | $ 1,700,000 | $ 1,700,000 | 2,000,000 | ||
Revolver | Other Assets | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 1,500,000 | ||||
Amended Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum increase in borrowing capacity | 300,000,000 | ||||
Debt issuance costs | $ 2,200,000 | ||||
Long-term debt term (in years) | 5 years | ||||
Amended Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage (as a percent) | 0.275% | ||||
Amended Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage (as a percent) | 0.15% | ||||
Original Credit Facility and the Amended Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, weighted average interest rate, over time (as a percent) | 6.40% | 6.10% | |||
Original Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt interest rate (as a percent) | 6.30% | 6.30% | |||
Corporate Bond Securities | |||||
Debt Instrument [Line Items] | |||||
Industrial development revenue bond | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||
Bank lines of credit and other debt obligations | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding amount | 5,000,000 | 5,000,000 | |||
Remaining borrowing capacity | $ 34,000,000 | $ 34,000,000 |
Debt - Debt Related Expenses In
Debt - Debt Related Expenses Included within Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt related expenses included within Interest expense: | ||||
Interest expense | $ 12,598 | $ 9,465 | $ 40,863 | $ 20,339 |
Amortization of debt issuance costs | 353 | 353 | 1,059 | 2,589 |
Total | $ 12,951 | $ 9,818 | $ 41,922 | $ 22,928 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - AOCI Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ (138,240) | |||
Other comprehensive (loss) income before Reclassifications | $ (24,387) | $ (72,683) | (14,985) | $ (154,013) |
Amounts reclassified from AOCI | 67 | 180 | 772 | 963 |
Related tax amounts | (296) | 94 | (2,271) | (615) |
Ending Balance | (154,724) | (154,724) | ||
Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (130,738) | (133,110) | (132,161) | (49,843) |
Other comprehensive (loss) income before Reclassifications | (25,501) | (71,948) | (24,078) | (155,215) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Related tax amounts | 0 | 0 | 0 | 0 |
Ending Balance | (156,239) | (205,058) | (156,239) | (205,058) |
Defined Benefit Pension Plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (4,024) | (11,269) | (4,595) | (13,172) |
Other comprehensive (loss) income before Reclassifications | 304 | 453 | 915 | 2,535 |
Amounts reclassified from AOCI | 71 | 210 | 225 | 657 |
Related tax amounts | (94) | (166) | (288) | (792) |
Ending Balance | (3,743) | (10,772) | (3,743) | (10,772) |
Unrealized (Loss) Gain in Available-for- Sale Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 91 | (1,170) | (1,484) | 397 |
Other comprehensive (loss) income before Reclassifications | (802) | (1,006) | 640 | (3,326) |
Amounts reclassified from AOCI | (4) | (30) | 547 | 306 |
Related tax amounts | 169 | 218 | (249) | 635 |
Ending Balance | (546) | (1,988) | (546) | (1,988) |
Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 4,563 | 303 | 0 | (1,372) |
Other comprehensive (loss) income before Reclassifications | 1,612 | (182) | 7,538 | 1,993 |
Amounts reclassified from AOCI | 0 | 0 | ||
Related tax amounts | (371) | 42 | (1,734) | (458) |
Ending Balance | 5,804 | 163 | 5,804 | 163 |
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (130,108) | (145,246) | (138,240) | (63,990) |
Ending Balance | $ (154,724) | $ (217,655) | $ (154,724) | $ (217,655) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 1 Months Ended |
Jun. 30, 2023 USD ($) | |
Fair Value Disclosures [Abstract] | |
Surrendered and liquidated life insurance policies | $ 1.9 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Subject to Fair Value Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Company-owned life insurance | $ 285 | $ 2,114 |
Total | 285 | 2,114 |
Level 1 | ||
Assets | ||
Company-owned life insurance | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets | ||
Company-owned life insurance | 285 | 2,114 |
Total | 285 | 2,114 |
Level 3 | ||
Assets | ||
Company-owned life insurance | 0 | 0 |
Total | $ 0 | $ 0 |
Hedging Activities - Notional A
Hedging Activities - Notional Amounts of Net Foreign Exchange Hedge Positions (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Derivative [Line Items] | |
Notional amount | $ 46,400 |
Mexican Peso | |
Derivative [Line Items] | |
Notional amount | 41,900 |
Japanese Yen | |
Derivative [Line Items] | |
Notional amount | $ 4,500 |
Hedging Activities - Narrative
Hedging Activities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2023 | Sep. 30, 2023 | |
Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Derivative term (in years) | 1 month | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative term (in years) | 3 years | |
Derivative liability, notional amount | $ 300 |
Hedging Activities - Balance Sh
Hedging Activities - Balance Sheet Classification and Fair Values (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Fair Value | $ 6,974 | $ 0 | ||||
Net gain (loss) reclassified from AOCI to earnings | $ 1,169 | $ 134 | 4,366 | $ (882) | ||
Interest expense, net | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gain (loss) reclassified from AOCI to earnings | 1,198 | 134 | 2,259 | (882) | ||
Other (expense) income, net | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gain (loss) reclassified from AOCI to earnings | $ (29) | $ 0 | 2,107 | $ 0 | ||
Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net unrealized loss deferred to AOCI | 5,804 | 0 | ||||
Other non-current Assets | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Fair Value | 7,538 | $ 0 | ||||
Other current liabilities | Foreign currency forward contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Fair Value | $ 0 | $ (564) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) location | |
Loss Contingencies [Line Items] | |||||
Facility remediation recoveries, net | $ 0 | $ 1,104 | $ 1,014 | $ 1,104 | |
Insurance Claims | |||||
Loss Contingencies [Line Items] | |||||
Number of locations that suffered property damage | location | 2 | ||||
Proceeds from insurance settlement | 5,900 | ||||
Facility remediation recoveries, net | 1,000 | ||||
Houghton Environmental Matters | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 6,000 | $ 6,000 | $ 6,000 |