x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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A Pennsylvania Corporation
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No. 23-0993790
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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One Quaker Park, 901 E. Hector Street,
Conshohocken, Pennsylvania
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19428-2380
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each Exchange on which registered
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|||
Common Stock, $1.00 par value
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New York Stock Exchange
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Large accelerated filer ¨
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Accelerated filer x
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Non-accelerated filer ¨
(Do not check if smaller reporting company)
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Smaller reporting company ¨
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2012
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2011
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2010
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|||||||||
Rolling Lubricants
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20.7
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%
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22.0
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%
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21.2
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%
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|||||
Machining and grinding compounds
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17.6
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%
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18.8
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%
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20.3
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%
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|||||
Hydraulic fluids
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13.5
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%
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12.9
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%
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13.7
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%
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|||||
Corrosion preventives
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12.4
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%
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11.5
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%
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11.5
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%
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·
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Metalworking process chemicals — generally includes industrial process fluids for various heavy industrial and manufacturing applications.
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·
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Coatings — generally includes temporary and permanent coatings for metal and concrete products and chemical milling maskants.
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·
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Other chemical products—other various chemical products.
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•
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statements relating to our business strategy;
|
•
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our current and future results and plans; and
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•
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statements that include the words “may,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan” or similar expressions.
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•
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successfully execute the integration or consolidation of the acquired operations into existing businesses,
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•
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develop or modify the financial reporting and information systems of the acquired entity to ensure overall financial integrity and adequacy of internal control procedures,
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•
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identify and take advantage of cost reduction opportunities, and
|
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•
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further penetrate existing markets with the product capabilities acquired.
|
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•
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changes in economic conditions from country to country, similar to the recent instability in certain European economies,
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•
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changes in a country’s political condition, such as the current political unrest in the Middle East,
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•
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trade protection measures,
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||
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•
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longer payment cycles,
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|
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•
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licensing and other legal requirements,
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•
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restrictions on the repatriation of our assets, including cash,
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|
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•
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the difficulties of staffing and managing dispersed international operations,
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|
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•
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less protective foreign intellectual property laws,
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•
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legal systems that may be less developed and predictable than those in the United States, and
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•
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local tax issues.
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Item 1B.
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Unresolved Staff Comments.
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Item 4.
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Mine Safety Disclosures.
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Name, Age, and Present
Position with the Company
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Business Experience During Past Five
Years and Period Served as an Officer
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Michael F. Barry, 54
Chairman of the Board, Chief Executive Officer
and President and Director
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|
Mr. Barry, who has been employed by the Company since 1998, has served as Chairman of the Board since May 13, 2009, in addition to his position as Chief Executive Officer and President held since October 2008. He served as Senior Vice President and Managing Director – North America from January 2006 to October 2008. He served as Senior Vice President and Global Industry Leader – Metalworking and Coatings from July 2005 through December 2005. He served as Vice President and Global Industry Leader – Industrial Metalworking and Coatings from January 2004 through June 2005 and Vice President and Chief Financial Officer from 1998 to August 2004.
|
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Margaret M. Loebl, 53
Vice President, Chief Financial Officer
and Treasurer
|
|
Ms. Loebl joined the Company on June 29, 2012 as Vice President, Chief Financial Officer and Treasurer. Prior to joining the Company, Ms. Loebl, from August 2011 to December 2011, provided senior executive-level financial consulting services in Paris, France, for Constellium, a leader in the manufacturing of high-quality aluminum products and solutions. Prior to joining Constellium, she served from October 2008 through December 2010 as Corporate Vice President, Chief Financial Officer and Treasurer of TechTeam Global, Inc., a provider of information technology and business process outsourcing services. Ms. Loebl served as an Executive in Residence at the University of Illinois in support of the University’s Finance Academy from August 2007 to December 2008. From November 2002 through August 2007, Ms. Loebl served as Group Vice President, Finance at Archer Daniels Midland Company, a leading agricultural processor.
|
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D. Jeffry Benoliel, 54
Vice President – Global Metalworking and Fluid
Power and Corporate Secretary
|
|
Mr. Benoliel, who has been employed by the Company since 1995, has served as Vice-President – Global Metalworking and Fluid Power and Corporate Secretary since June 2011 and until March 15, 2012 also held the position of General Counsel. He served as Vice President-Global Strategy, General Counsel and Corporate Secretary from October 2008 until June 2011 and as Vice President, Secretary and General Counsel from 2001 through September 2008.
|
|
Joseph A. Berquist, 41
Vice President and Managing
Director – North America
|
Mr. Berquist, who has been employed by the Company since 1997, has served as Vice President and Managing Director – North America since April 2010. He served as Senior Director, North America Commercial from October 2008 through March 2010 and as Industry Business Director - Metalworking/Fluid Power from July 2006 through September 2008.
|
||
Ronald S. Ettinger, 60
Vice President – Human Resources
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Mr. Ettinger, who has been employed by the Company since 2002, has served as Vice President-Human Resources since December 2011. He served as Director-Global Human Resources from August 2005 to November 2011.
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Name, Age, and Present
Position with the Company
|
|
Business Experience During Past Five
Years and Period Served as an Officer
|
|
George H. Hill, 38
Global Controller
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Mr. Hill, who has been employed by the Company since 2002, has served in his current position since April 2007.
|
||
Dieter Laininger, 50
Vice President and Managing
Director – South America
and Global Primary Metals
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Mr. Laininger, who has been employed by the Company since 1991, was appointed Vice President and Managing Director – South America, effective January 16, 2013, in addition to his position as Vice President-Global Primary Metals, to which he was appointed effective June 2011. He served as Industry Business Manager for Steel and Metalworking – EMEA from March 2001 through July 2011.
|
||
Joseph F. Matrange, 71
Vice President – Global Coatings
|
Mr. Matrange, who has been employed by the Company since 2001, has served as Vice President – Global Coatings since October 2008. He has also served as President of AC Products, Inc., a California subsidiary, since October 2000, and Epmar Corporation, a California subsidiary, since April 2002.
|
||
Jan F. Nieman, 52
Vice President and Managing
Director – Asia/Pacific
|
|
Mr. Nieman, who has been employed by the Company since 1992, has served in his current position since February 2005.
|
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Wilbert Platzer, 51
Vice President and Managing
Director – Europe
|
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Mr. Platzer, who has been employed by the Company since 1995, has served in his current position since January 2006.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|
Price Range
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Dividends
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Dividends
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||||||||||||||||||||||
2012
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2011
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Declared
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Paid
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|||||||||||||||||||||
High
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Low
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High
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Low
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2012
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2011
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2012
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2011
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|||||||||||||||||
First quarter
|
$ | 48.15 | $ | 35.82 | $ | 44.39 | $ | 35.00 | $ | 0.24 | $ | 0.235 | $ | 0.24 | $ | 0.235 | ||||||||
Second quarter
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46.59 | 37.86 | 46.02 | 38.57 | 0.245 | 0.24 | 0.24 | 0.235 | ||||||||||||||||
Third quarter
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50.55 | 40.21 | 44.98 | 25.31 | 0.245 | 0.24 | 0.245 | 0.24 | ||||||||||||||||
Fourth quarter
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54.00 | 45.07 | 40.87 | 24.11 | 0.245 | 0.24 | 0.245 | 0.24 |
Issuer Purchases of Equity Securities
|
|||||||
(c)
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(d)
|
||||||
Total Number of
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Maximum Number
|
||||||
(a)
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(b)
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Shares Purchased
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of Shares that May
|
||||
Total Number
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Average
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as part of Publicly
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Yet Be Purchased
|
||||
of Shares
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Price Paid
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Announced Plans
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Under the Plans
|
||||
Period
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Purchased (1)
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per Share (2)
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or Programs (3)
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or Programs (3)
|
|||
October 1 - October 31
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—
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$
|
—
|
—
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252,600
|
||
November 1 - November 30
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5,378
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51.38
|
—
|
252,600
|
|||
December 1 - December 31
|
—
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—
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—
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252,600
|
|||
Total
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5,378
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$
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51.38
|
—
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252,600
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(1)
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All of the 5,378 shares acquired by the Company during the period covered by this report were acquired from employees upon their surrender of previously owned shares in payment of the exercise price of employee stock options or, also, for the payment of taxes related to the exercise of employee stock options.
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(2)
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The price paid per share, in each case, represents either a) the average of the high and low price of the Company’s common stock on the date of exercise; or b) the closing price of the Company’s common stock on date of exercise, in each case as specified by the plan pursuant to which the applicable option was granted.
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(3)
|
On February 15, 1995, the Board of Directors of the Company authorized a share repurchase program authorizing the repurchase of up to 500,000 shares of Quaker common stock, and, on January 26, 2005, the Board authorized the repurchase of up to an additional 225,000 shares. Under the 1995 action of the Board, 27,600 shares may yet be purchased. Under the 2005 action of the Board, none of the shares authorized has been purchased and, accordingly, all of those shares may yet be purchased. Neither of the share repurchase authorizations has an expiration date.
|
12/31/2007
|
12/31/2008
|
12/31/2009
|
12/31/2010
|
12/31/2011
|
12/31/2012
|
|||||||||||||||||||
Quaker
|
$ | 100.00 | $ | 77.75 | $ | 103.92 | $ | 216.94 | $ | 207.40 | $ | 293.34 | ||||||||||||
SmallCap Index
|
100.00 | 68.93 | 86.55 | 109.32 | 110.43 | 128.46 | ||||||||||||||||||
Specialty Chemicals Index
|
100.00 | 62.81 | 98.39 | 121.63 | 113.69 | 146.36 | ||||||||||||||||||
Materials Group Index
|
100.00 | 52.15 | 77.28 | 91.40 | 83.85 | 105.06 |
Year Ended December 31,
|
||||||||||||||||||||
2012 (2)
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2011 (3)
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2010 (4)
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2009 (5)
|
2008 (6)
|
||||||||||||||||
(re-cast)
|
(re-cast)
|
(re-cast)
|
(re-cast)
|
|||||||||||||||||
Summary of Operations (1):
|
||||||||||||||||||||
Net sales
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$ | 708,226 | $ | 683,231 | $ | 544,063 | $ | 451,490 | $ | 581,641 | ||||||||||
Income before taxes and equity in net income of associated companies
|
62,948 | 59,377 | 46,213 | 23,692 | 16,629 | |||||||||||||||
Net income attribuatable to Quaker Chemical Corporation
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47,405 | 45,892 | 32,120 | 16,058 | 9,833 | |||||||||||||||
Per share:
|
||||||||||||||||||||
Net income attributable to Quaker Chemical Corporation
|
||||||||||||||||||||
Common Shareholders - basic
|
$ | 3.64 | $ | 3.71 | $ | 2.85 | $ | 1.46 | $ | 0.93 | ||||||||||
Net income attributable to Quaker Chemical Corporation
|
||||||||||||||||||||
Common Shareholders - diluted
|
$ | 3.63 | $ | 3.66 | $ | 2.80 | $ | 1.45 | $ | 0.93 | ||||||||||
Dividends declared
|
0.975 | 0.955 | 0.935 | 0.92 | 0.92 | |||||||||||||||
Dividends paid
|
0.97 | 0.95 | 0.93 | 0.92 | 0.905 | |||||||||||||||
Financial Position
|
||||||||||||||||||||
Working capital
|
$ | 170,018 | $ | 152,900 | $ | 114,291 | $ | 98,994 | $ | 116,962 | ||||||||||
Total assets
|
536,634 | 511,152 | 452,868 | 398,183 | 387,957 | |||||||||||||||
Long-term debt
|
30,000 | 46,701 | 73,855 | 63,685 | 84,236 | |||||||||||||||
Total equity
|
289,676 | 261,357 | 190,537 | 159,186 | 132,393 |
(1 | ) |
The selected financial data for the years 2008 through 2011 has been re-cast in order to retrospectively apply the equity method of accounting for the Company’s investment in Primex, a captive insurance company. For further information, see the Change in Accounting Method section included in Item 7 of this Report and Note 4 of Notes to Consolidated Financial Statements, included in Item 8 of this Report.
|
(2 | ) |
The results of operations for 2012 include an increase to other income of $1,737 related to a change in the fair value of a contingent consideration liability; an increase to other income of $1,033 related to a change in the fair value of an acquisition-related liability; and a $2,216 tax benefit from the derecognition of various uncertain tax positions due to the expiration of applicable statutes of limitations; partially offset by a pre-tax charge of $1,254 related to the bankruptcy of certain customers in the U.S.; a pre-tax charge of $609 related to CFO transition costs; and certain uncommon charges of $1,936, pre-tax, that largely consist of severance and related items and costs associated with the launch of the Company's new revitalized Brand.
|
(3 | ) |
The results of operations for 2011 include an increase to other income of $2,718 related to the revaluation of the Company’s previously held ownership interest in Tecniquimia Mexicana S.A de C.V. to its fair value; an increase to other income of $595 related to a change in the fair value of a contingent consideration liability; and a $1,972 tax benefit from the derecognition of various uncertain tax positions due to the expiration of applicable statutes of limitations.
|
(4 | ) |
The results of operations for 2010 include a pre-tax final charge of $1,317 related to the retirement of the Company’s former Chief Executive Officer in 2008; a net pre-tax charge of $4,132 related to a non-income tax contingency; a $322 charge related to a currency devaluation at the Company’s 50% owned affiliate in Venezuela; and a $564 charge related to an out-of-period adjustment at the Company’s 40% owned affiliate in Mexico; partially offset by a $2,441 tax benefit from the derecognition of various uncertain tax positions due to the expiration of applicable statutes of limitations and resolution of tax audits for certain tax years.
|
(5 | ) |
The results of operations for 2009 include a pre-tax charge for restructuring and related activities of $2,289; a pre-tax charge of $2,443 related to the retirement of the Company’s former Chief Executive Officer in 2008; partially offset by a gain of $1,193 on the disposition of land in Europe and a $583 tax benefit from the derecognition of various uncertain tax positions due to the expiration of applicable statutes of limitations and resolution of tax audits for certain tax years.
|
(6 | ) |
The results of operations for 2008 include a pre-tax charge for restructuring and related activities of $2,916; and a pre-tax charge of $3,505 for the incremental charges related to the retirement of the Company’s Chief Executive Officer; partially offset by a net arbitration award of $956 related to litigation with one of the former owners of the Company’s Italian subsidiary; a tax refund of $460 relating to the Company’s increased investment in China; and a $1,508 tax benefit from the derecognition of various uncertain tax positions due to the expiration of applicable statutes of limitations and resolution of tax audits for certain tax years.
|
Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
Consolidated Statement of Income
|
2011
|
2010
|
||||||
Equity in net income of associated companies
|
$ | 2,323 | $ | 313 | ||||
Net income attributable to Quaker Chemical Corporation
|
$ | 2,323 | $ | 313 | ||||
Net income attributable to Quaker Chemical Corporation Common Shareholders - Diluted
|
$ | 0.19 | $ | 0.03 | ||||
Consolidated Balance Sheet
|
||||||||
Investments in associated companies
|
$ | 6,131 | $ | 3,938 | ||||
Other assets
|
(500 | ) | (500 | ) | ||||
Total assets
|
$ | 5,631 | $ | 3,438 | ||||
Retained earnings
|
$ | 4,778 | $ | 2,455 | ||||
Accumulated other comprehensive loss
|
853 | 983 | ||||||
Total equity
|
$ | 5,631 | $ | 3,438 |
1/2 Percentage Point Increase
|
1/2 Percentage Point Decrease
|
||||||||||||||||||||
Foreign
|
Domestic
|
Total
|
Foreign
|
Domestic
|
Total
|
||||||||||||||||
(Dollars in millions)
|
|||||||||||||||||||||
Discount rate
|
$ | (0.5 | ) | $ | (0.1 | ) | $ | (0.6 | ) | $ | 0.5 | $ | 0.1 | $ | 0.6 | ||||||
Expected rate of return on plan assets
|
(0.3 | ) | (0.2 | ) | (0.5 | ) | 0.3 | 0.2 | 0.5 |
Payments due by period
|
||||||||||||||||||||||||||||
2018 and
|
||||||||||||||||||||||||||||
Contractual Obligations (Amounts in millions)
|
Total
|
2013
|
2014
|
2015
|
2016
|
2017
|
Beyond
|
|||||||||||||||||||||
Short-term debt
|
$ | 0.867 | $ | 0.867 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Long-term debt
|
40.917 | 1.680 | 13.633 | 1.277 | 1.241 | 1.230 | 21.856 | |||||||||||||||||||||
Capital lease obligations
|
0.660 | 0.291 | 0.147 | 0.099 | 0.065 | 0.058 | — | |||||||||||||||||||||
Non-cancelable operating leases
|
16.811 | 4.927 | 4.003 | 3.472 | 2.941 | 1.466 | 0.002 | |||||||||||||||||||||
Purchase obligations
|
8.459 | 7.193 | 1.266 | — | — | — | — | |||||||||||||||||||||
Pension and other postretirement plan
|
||||||||||||||||||||||||||||
contributions
|
7.329 | 7.329 | — | — | — | — | — | |||||||||||||||||||||
Contingent acquisition consideration
|
5.149 | — | 5.149 | — | — | — | — | |||||||||||||||||||||
Other long-term liabilities (See Note 19 of Notes
|
||||||||||||||||||||||||||||
to Consolidated Financial Statements)
|
5.034 | — | — | — | — | — | 5.034 | |||||||||||||||||||||
Total contractual cash obligations
|
$ | 85.226 | $ | 22.287 | $ | 24.198 | $ | 4.848 | $ | 4.247 | $ | 2.754 | $ | 26.892 |
|
•
|
statements relating to our business strategy;
|
|
|
•
|
our current and future results and plans; and
|
|
|
•
|
statements that include the words “may,” “could,” “should,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan” or similar expressions.
|
Item 8.
|
Financial Statements and Supplementary Data.
|
|
Page
|
|
Financial Statements:
|
|
|
|
26
|
|
|
27
|
|
28
|
||
|
29
|
|
|
30
|
|
|
31
|
|
32
|
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(re-cast)
|
(re-cast)
|
|||||||||||
(In thousands, except per share amounts)
|
||||||||||||
Net sales
|
$ | 708,226 | $ | 683,231 | $ | 544,063 | ||||||
Costs and expenses
|
||||||||||||
Cost of goods sold
|
469,515 | 460,581 | 351,274 | |||||||||
Selling, general and administrative expenses
|
175,487 | 164,738 | 139,209 | |||||||||
Non-income tax contingency charge
|
— | — | 4,132 | |||||||||
CEO transition costs
|
— | — | 1,317 | |||||||||
645,002 | 625,319 | 495,932 | ||||||||||
Operating income
|
63,224 | 57,912 | 48,131 | |||||||||
Other income, net
|
3,415 | 5,050 | 2,106 | |||||||||
Interest expense
|
(4,283 | ) | (4,666 | ) | (5,225 | ) | ||||||
Interest income
|
592 | 1,081 | 1,201 | |||||||||
Income before taxes and equity in net income of associated companies
|
62,948 | 59,377 | 46,213 | |||||||||
Taxes on income before equity in net income of associated companies
|
15,575 | 14,256 | 12,616 | |||||||||
Income before equity in net income of associated companies
|
47,373 | 45,121 | 33,597 | |||||||||
Equity in net income of associated companies
|
2,867 | 3,102 | 807 | |||||||||
Net income
|
50,240 | 48,223 | 34,404 | |||||||||
Less: Net income attributable to noncontrolling interest
|
2,835 | 2,331 | 2,284 | |||||||||
Net income attributable to Quaker Chemical Corporation
|
$ | 47,405 | $ | 45,892 | $ | 32,120 | ||||||
Earnings per common share data:
|
||||||||||||
Net income attributable to Quaker Chemical Corporation Common Shareholders – basic
|
$ | 3.64 | $ | 3.71 | $ | 2.85 | ||||||
Net income attributable to Quaker Chemical Corporation Common Shareholders – diluted
|
$ | 3.63 | $ | 3.66 | $ | 2.80 |
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(re-cast)
|
(re-cast)
|
|||||||||||
(In thousands)
|
||||||||||||
Net income
|
$ | 50,240 | $ | 48,223 | $ | 34,404 | ||||||
Other comprehensive loss, net of tax
|
||||||||||||
Currency translation adjustments
|
(2,111 | ) | (9,155 | ) | 805 | |||||||
Defined benefit retirement plans
|
||||||||||||
Net loss arising during the period, other
|
(13,980 | ) | (9,698 | ) | (6,267 | ) | ||||||
Amortization of actuarial loss
|
1,852 | 1,230 | 1,832 | |||||||||
Amortization of prior service cost
|
76 | 77 | 91 | |||||||||
Amortization of initial net asset
|
— | — | (3 | ) | ||||||||
Current period change in fair value of derivatives
|
272 | 395 | 708 | |||||||||
Unrealized gain (loss) on available-for-sale securities
|
866 | (138 | ) | 248 | ||||||||
Other comprehensive loss
|
(13,025 | ) | (17,289 | ) | (2,586 | ) | ||||||
Comprehensive income
|
37,215 | 30,934 | 31,818 | |||||||||
Less: comprehensive income attributable to noncontrolling interest
|
(2,698 | ) | (1,256 | ) | (2,761 | ) | ||||||
Comprehensive income attributable to Quaker Chemical Corporation
|
$ | 34,517 | $ | 29,678 | $ | 29,057 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
(re-cast)
|
||||||||
(In thousands, except par value
and share amounts)
|
||||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
32,547
|
$
|
16,909
|
||||
Accounts receivable, net
|
|
154,197
|
150,676
|
|||||
Inventories
|
|
72,471
|
74,758
|
|||||
Current deferred tax assets
|
|
6,401
|
6,338
|
|||||
Prepaid expenses and other current assets
|
|
12,194
|
10,868
|
|||||
Total current assets
|
|
277,810
|
|
|
259,549
|
|||
Property, plant and equipment, net
|
|
85,112
|
82,916
|
|||||
Goodwill
|
|
59,169
|
58,152
|
|||||
Other intangible assets, net
|
|
32,809
|
31,783
|
|||||
Investments in associated companies
|
|
16,603
|
14,073
|
|||||
Non-current deferred tax assets
|
|
30,673
|
29,823
|
|||||
Other assets
|
|
34,458
|
34,856
|
|||||
Total assets
|
$
|
536,634
|
|
$
|
511,152
|
|||
|
|
|
|
|||||
LIABILITIES AND EQUITY
|
|
|
|
|||||
Current liabilities
|
|
|
|
|||||
Short-term borrowings and current portion of long-term debt
|
$
|
1,468
|
|
$
|
636
|
|||
Accounts payable
|
|
67,586
|
|
|
65,026
|
|||
Dividends payable
|
3,208
|
3,099
|
||||||
Accrued compensation
|
|
16,842
|
|
|
16,987
|
|||
Accrued pension and postretirement benefits
|
2,188
|
2,038
|
||||||
Current deferred tax liabilities
|
253
|
238
|
||||||
Other current liabilities
|
|
16,247
|
|
|
18,625
|
|||
Total current liabilities
|
|
107,792
|
|
|
106,649
|
|||
Long-term debt
|
|
30,000
|
|
|
46,701
|
|||
Non-current deferred tax liabilities
|
6,383
|
7,094
|
||||||
Accrued pension and postretirement benefits
|
|
49,916
|
|
|
34,533
|
|||
Other non-current liabilities
|
|
52,867
|
|
|
54,818
|
|||
Total liabilities
|
|
246,958
|
|
|
249,795
|
|||
Equity
|
|
|
|
|||||
Common stock $1 par value; authorized 30,000,000 shares; issued and outstanding
|
|
|
|
|||||
2012 – 13,094,901 shares; 2011 – 12,911,508 shares
|
13,095
|
12,912
|
||||||
Capital in excess of par value
|
|
94,470
|
|
|
89,725
|
|||
Retained earnings
|
|
215,390
|
|
|
180,710
|
|||
Accumulated other comprehensive loss
|
|
(41,855)
|
|
(28,967)
|
||||
Total Quaker shareholders’ equity
|
|
281,100
|
|
|
254,380
|
|||
Noncontrolling interest
|
8,576
|
6,977
|
||||||
Total equity
|
289,676
|
261,357
|
||||||
Total liabilities and equity
|
$
|
536,634
|
|
$
|
511,152
|
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(re-cast)
|
(re-cast)
|
|||||||||||
(In thousands)
|
||||||||||||
Cash flows from operating activities
|
|
|
|
|||||||||
Net income
|
$ | 50,240 | $ | 48,223 | $ | 34,404 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation
|
12,252 | 11,455 | 9,867 | |||||||||
Amortization
|
3,106 | 2,338 | 988 | |||||||||
Equity in undistributed earnings of associated companies, net of dividends
|
(2,350 | ) | (2,365 | ) | (294 | ) | ||||||
Deferred income taxes
|
2,354 | 2,431 | 1,849 | |||||||||
Uncertain tax positions (non-deferred portion)
|
(1,407 | ) | 3,673 | (1,130 | ) | |||||||
Acquisition-related fair value adjustments
|
(1,909 | ) | (2,624 | ) | — | |||||||
Deferred compensation and other, net
|
(156 | ) | 566 | (628 | ) | |||||||
Stock-based compensation
|
3,807 | 3,513 | 3,096 | |||||||||
(Gain) loss on disposal of property, plant and equipment
|
(108 | ) | (86 | ) | 32 | |||||||
Insurance settlement realized
|
(1,391 | ) | (1,840 | ) | (1,640 | ) | ||||||
Pension and other postretirement benefits
|
(1,427 | ) | (4,239 | ) | (2,636 | ) | ||||||
Increase (decrease) in cash from changes in current assets and current liabilities, net of acquisitions:
|
||||||||||||
Accounts receivable
|
779 | (31,558 | ) | (4,469 | ) | |||||||
Inventories
|
3,228 | (9,281 | ) | (7,153 | ) | |||||||
Prepaid expenses and other current assets
|
504 | (2,505 | ) | (814 | ) | |||||||
Accounts payable and accrued liabilities
|
(2,562 | ) | 4,442 | 5,511 | ||||||||
Estimated taxes on income
|
(2,067 | ) | (2,477 | ) | 564 | |||||||
Net cash provided by operating activities
|
62,893 | 19,666 | 37,547 | |||||||||
Cash flows from investing activities
|
||||||||||||
Capital expenditures
|
(12,735 | ) | (12,117 | ) | (9,354 | ) | ||||||
Payments related to acquisitions, net of cash acquired
|
(5,635 | ) | (25,477 | ) | (35,909 | ) | ||||||
Proceeds from disposition of assets
|
245 | 393 | 229 | |||||||||
Insurance settlement received and interest earned
|
69 | 80 | 5,122 | |||||||||
Change in restricted cash, net
|
1,322 | 1,760 | (1,124 | ) | ||||||||
Net cash used in investing activities
|
(16,734 | ) | (35,361 | ) | (41,036 | ) | ||||||
Cash flows from financing activities
|
||||||||||||
Net decrease in short-term borrowings
|
(315 | ) | (254 | ) | (1,456 | ) | ||||||
Proceeds from long-term debt
|
— | — | 9,841 | |||||||||
Repayment of long-term debt
|
(17,632 | ) | (27,364 | ) | (636 | ) | ||||||
Dividends paid
|
(12,616 | ) | (11,586 | ) | (10,449 | ) | ||||||
Stock options exercised, other
|
(924 | ) | 1,105 | 5,500 | ||||||||
Excess tax benefit related to stock option exercises
|
2,045 | 109 | 2,558 | |||||||||
Proceeds from sale of common stock, net of related expenses
|
— | 48,143 | — | |||||||||
Distributions to noncontrolling shareholders
|
(1,099 | ) | (1,000 | ) | (1,021 | ) | ||||||
Net cash (used in) provided by financing activities
|
(30,541 | ) | 9,153 | 4,337 | ||||||||
Effect of exchange rate changes on cash
|
20 | (2,315 | ) | (133 | ) | |||||||
Net increase (decrease) in cash and cash equivalents
|
15,638 | (8,857 | ) | 715 | ||||||||
Cash and cash equivalents at beginning of period
|
16,909 | 25,766 | 25,051 | |||||||||
Cash and cash equivalents at end of period
|
$ | 32,547 | $ | 16,909 | $ | 25,766 | ||||||
Supplemental cash flow disclosures:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Income taxes
|
$ | 13,190 | $ | 9,110 | $ | 7,799 | ||||||
Interest
|
2,809 | 3,298 | 4,884 | |||||||||
Non-cash activities:
|
||||||||||||
Restricted insurance receivable (See also Note 18 of Notes to Consolidated Financial Statements)
|
$ | — | $ | — | $ | 5,000 | ||||||
Property, plant and equipment acquired by capital lease
|
— | — | 848 |
Accumulated
|
||||||||||||||||||||||||
Capital in
|
other
|
Non-
|
||||||||||||||||||||||
Common
|
excess of
|
Retained
|
comprehensive
|
controlling
|
||||||||||||||||||||
stock
|
par value
|
earnings
|
loss
|
interest
|
Total
|
|||||||||||||||||||
Balance at December 31, 2009 (re-cast)
|
$ | 11,086 | $ | 27,527 | $ | 125,282 | $ | (9,690 | ) | $ | 4,981 | $ | 159,186 | |||||||||||
Net income (re-cast)
|
— | — | 32,120 | — | 2,284 | 34,404 | ||||||||||||||||||
Currency translation adjustments
|
— | — | — | 328 | 477 | 805 | ||||||||||||||||||
Defined benefit retirement plans:
|
||||||||||||||||||||||||
Net loss arising during the period, other
|
— | — | — | (6,267 | ) | — | (6,267 | ) | ||||||||||||||||
Amortization of actuarial loss
|
— | — | — | 1,832 | — | 1,832 | ||||||||||||||||||
Amortization of prior service cost
|
— | — | — | 91 | — | 91 | ||||||||||||||||||
Amortization of initial net asset
|
— | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||
Current period changes in fair value of derivatives
|
— | — | — | 708 | — | 708 | ||||||||||||||||||
Unrealized gain on available-for-sale securities (re-cast)
|
— | — | — | 248 | — | 248 | ||||||||||||||||||
Dividends ($0.935 per share)
|
— | — | (10,600 | ) | — | — | (10,600 | ) | ||||||||||||||||
Dividends paid to noncontrolling interests
|
— | — | — | — | (1,021 | ) | (1,021 | ) | ||||||||||||||||
Shares issued upon exercise of stock options and other
|
297 | 4,965 | — | — | — | 5,262 | ||||||||||||||||||
Shares issued for employee stock purchase plan
|
10 | 228 | — | — | — | 238 | ||||||||||||||||||
Equity based compensation plans
|
99 | 2,997 | — | — | — | 3,096 | ||||||||||||||||||
Excess tax benefit from stock option exercises
|
— | 2,558 | — | — | — | 2,558 | ||||||||||||||||||
Balance at December 31, 2010 (re-cast)
|
11,492 | 38,275 | 146,802 | (12,753 | ) | 6,721 | 190,537 | |||||||||||||||||
Net income (re-cast)
|
— | — | 45,892 | — | 2,331 | 48,223 | ||||||||||||||||||
Currency translation adjustments
|
— | — | — | (8,080 | ) | (1,075 | ) | (9,155 | ) | |||||||||||||||
Defined benefit retirement plans:
|
||||||||||||||||||||||||
Net loss arising during the period, other
|
— | — | — | (9,698 | ) | — | (9,698 | ) | ||||||||||||||||
Amortization of actuarial loss
|
— | — | — | 1,230 | — | 1,230 | ||||||||||||||||||
Amortization of prior service cost
|
— | — | — | 77 | — | 77 | ||||||||||||||||||
Current period changes in fair value of derivatives
|
— | — | — | 395 | — | 395 | ||||||||||||||||||
Unrealized loss on available-for-sale securities (re-cast)
|
— | — | — | (138 | ) | — | (138 | ) | ||||||||||||||||
Dividends ($0.95 per share)
|
— | — | (11,984 | ) | — | — | (11,984 | ) | ||||||||||||||||
Dividends paid to noncontrolling interests
|
— | — | — | — | (1,000 | ) | (1,000 | ) | ||||||||||||||||
Stock offering, net of related expenses
|
1,265 | 46,878 | — | — | — | 48,143 | ||||||||||||||||||
Shares issued upon exercise of stock options and other
|
47 | 811 | — | — | — | 858 | ||||||||||||||||||
Shares issued for employee stock purchase plan
|
8 | 239 | — | — | — | 247 | ||||||||||||||||||
Equity based compensation plans
|
100 | 3,413 | — | — | — | 3,513 | ||||||||||||||||||
Excess tax benefit from stock option exercises
|
— | 109 | — | — | — | 109 | ||||||||||||||||||
Balance at December 31, 2011 (re-cast)
|
12,912 | 89,725 | 180,710 | (28,967 | ) | 6,977 | 261,357 | |||||||||||||||||
Net income
|
— | — | 47,405 | — | 2,835 | 50,240 | ||||||||||||||||||
Currency translation adjustments
|
— | — | — | (1,974 | ) | (137 | ) | (2,111 | ) | |||||||||||||||
Defined benefit retirement plans:
|
||||||||||||||||||||||||
Net loss arising during the period, other
|
— | — | — | (13,980 | ) | — | (13,980 | ) | ||||||||||||||||
Amortization of actuarial loss
|
— | — | — | 1,852 | — | 1,852 | ||||||||||||||||||
Amortization of prior service cost
|
— | — | — | 76 | — | 76 | ||||||||||||||||||
Current period changes in fair value of derivatives
|
— | — | — | 272 | — | 272 | ||||||||||||||||||
Unrealized gain on available-for-sale securities
|
— | — | — | 866 | — | 866 | ||||||||||||||||||
Dividends ($0.975 per share)
|
— | — | (12,725 | ) | — | — | (12,725 | ) | ||||||||||||||||
Dividends paid to noncontrolling interests
|
— | — | — | — | (1,099 | ) | (1,099 | ) | ||||||||||||||||
Shares issued upon exercise of stock options and other
|
102 | (1,296 | ) | — | — | — | (1,194 | ) | ||||||||||||||||
Shares issued for employee stock purchase plan
|
7 | 263 | — | — | — | 270 | ||||||||||||||||||
Equity based compensation plans
|
74 | 3,733 | — | — | — | 3,807 | ||||||||||||||||||
Excess tax benefit from stock option exercises
|
— | 2,045 | — | — | — | 2,045 | ||||||||||||||||||
Balance at December 31, 2012
|
$ | 13,095 | $ | 94,470 | $ | 215,390 | $ | (41,855 | ) | $ | 8,576 | $ | 289,676 |
•
|
Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
|
|
•
|
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
|
|
•
|
Level 3: Unobservable inputs that reflect the reporting entity's own assumptions.
|
•
|
Metalworking process chemicals—generally includes industrial process fluids for various heavy industrial and manufacturing applications.
|
|
•
|
Coatings—generally includes temporary and permanent coatings for metal and concrete products and chemical milling maskants.
|
|
•
|
Other chemical products—other various chemical products.
|
Fair Value Measurements at December 31, 2012
|
||||||||||||||||
Fair Value
|
Using Fair Value Hierarchy
|
|||||||||||||||
as of
|
||||||||||||||||
Assets
|
December 31, 2012
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Company-owned life insurance
|
$ | 1,653 | $ | — | $ | 1,653 | $ | — | ||||||||
Company-owned life insurance - Deferred compensation assets
|
437 | — | 437 | — | ||||||||||||
Other deferred compensation assets
|
||||||||||||||||
Large capitalization registered investment companies
|
62 | 62 | — | — | ||||||||||||
Mid capitalization registered investment companies
|
6 | 6 | — | — | ||||||||||||
Small capitalization registered investment companies
|
9 | 9 | — | — | ||||||||||||
International developed and emerging markets registered investment
|
||||||||||||||||
companies
|
37 | 37 | — | — | ||||||||||||
Fixed income registered investment companies
|
8 | 8 | — | — | ||||||||||||
Total
|
$ | 2,212 | $ | 122 | $ | 2,090 | $ | — |
Fair Value Measurements at December 31, 2012
|
||||||||||||||||
Fair Value
|
Using Fair Value Hierarchy
|
|||||||||||||||
as of
|
||||||||||||||||
Liabilities
|
December 31, 2012
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Deferred compensation liabilities
|
||||||||||||||||
Large capitalization registered investment companies
|
$ | 336 | $ | 336 | $ | — | $ | — | ||||||||
Mid capitalization registered investment companies
|
88 | 88 | — | — | ||||||||||||
Small capitalization registered investment companies
|
72 | 72 | — | — | ||||||||||||
International developed and emerging markets registered investment
|
||||||||||||||||
companies
|
187 | 187 | — | — | ||||||||||||
Fixed income registered investment companies
|
48 | 48 | — | — | ||||||||||||
Fixed general account
|
173 | — | 173 | — | ||||||||||||
Acquisition-related consideration
|
4,901 | — | — | 4,901 | ||||||||||||
Total
|
$ | 5,805 | $ | 731 | $ | 173 | $ | 4,901 |
Fair Value Measurements at December 31, 2011
|
||||||||||||||||
Fair Value
|
Using Fair Value Hierarchy
|
|||||||||||||||
as of
|
||||||||||||||||
Assets
|
December 31, 2011
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Company-owned life insurance
|
$ | 1,508 | $ | — | $ | 1,508 | $ | — | ||||||||
Company-owned life insurance - Deferred compensation assets
|
487 | — | 487 | — | ||||||||||||
Other deferred compensation assets
|
||||||||||||||||
Large capitalization registered investment companies
|
64 | 64 | — | — | ||||||||||||
Mid capitalization registered investment companies
|
4 | 4 | — | — | ||||||||||||
Small capitalization registered investment companies
|
7 | 7 | — | — | ||||||||||||
International developed and emerging markets registered investment
|
||||||||||||||||
companies
|
32 | 32 | — | — | ||||||||||||
Fixed income registered investment companies
|
8 | 8 | — | — | ||||||||||||
Total
|
$ | 2,110 | $ | 115 | $ | 1,995 | $ | — |
Fair Value Measurements at December 31, 2011
|
||||||||||||||||
Fair Value
|
Using Fair Value Hierarchy
|
|||||||||||||||
as of
|
||||||||||||||||
Liabilities
|
December 31, 2011
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Deferred compensation liabilities
|
||||||||||||||||
Large capitalization registered investment companies
|
$ | 318 | $ | 318 | $ | — | $ | — | ||||||||
Mid capitalization registered investment companies
|
83 | 83 | — | — | ||||||||||||
Small capitalization registered investment companies
|
68 | 68 | — | — | ||||||||||||
International developed and emerging markets registered investment
|
||||||||||||||||
companies
|
168 | 168 | — | — | ||||||||||||
Fixed income registered investment companies
|
50 | 50 | — | — | ||||||||||||
Fixed general account
|
177 | — | 177 | — | ||||||||||||
Interest rate derivatives
|
418 | — | 418 | — | ||||||||||||
Acquisition-related consideration
|
8,898 | — | — | 8,898 | ||||||||||||
Total
|
$ | 10,180 | $ | 687 | $ | 595 | $ | 8,898 |
Non-competition
|
||||||||||||||||||||||||
Earnout
|
Hold-back
|
Agreement
|
Hold-back
|
Hold-back
|
||||||||||||||||||||
Summit
|
Tecniquimia
|
Obligation
|
GW Smith
|
NP Coil Dexter
|
Total
|
|||||||||||||||||||
Balance at December 31, 2011
|
$ | 5,444 | $ | 1,877 | $ | 675 | $ | 902 | $ | — | $ | 8,898 | ||||||||||||
Acquisitions
|
— | — | — | — | 927 | 927 | ||||||||||||||||||
Interest accretion
|
790 | 123 | 42 | 98 | 71 | 1,124 | ||||||||||||||||||
Change in fair value estimate
|
(1,737 | ) | — | — | — | (1,033 | ) | (2,770 | ) | |||||||||||||||
Payments
|
— | (2,000 | ) | (313 | ) | (1,000 | ) | — | (3,313 | ) | ||||||||||||||
Currency exchange adjustment
|
— | — | — | — | 35 | 35 | ||||||||||||||||||
Balance at December 31, 2012
|
$ | 4,497 | $ | — | $ | 404 | $ | — | $ | — | $ | 4,901 |
Fair value at December 31, 2012
|
Valuation technique
|
Unobservable input
|
Input value
|
||||||
Summit earnout
|
4,497
|
Discounted cash flow
|
Discount rate
|
14.5%
|
|||||
Non-competition agreement obligation
|
404
|
Discounted cash flow
|
Discount rate
|
14.0%
|
Fair Value
|
|||||||||
Consolidated Balance Sheet
|
December 31, | ||||||||
Location
|
2012
|
2011
|
|||||||
Derivatives designated as cash flow hedges:
|
|||||||||
Interest rate swaps
|
Other current liabilities
|
$ | — | $ | 418 | ||||
$ | — | $ | 418 |
Cash Flow Hedges
|
||||||||||||
Interest Rate Swaps
|
||||||||||||
For the Years Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Amount of Gain Recognized in
|
||||||||||||
Accumulated OCI on Derivative (Effective Portion)
|
$ | 272 | $ | 395 | $ | 708 | ||||||
Amount and Location of Loss Reclassified from
|
||||||||||||
Accumulated OCI into Income (Effective Portion)
|
Interest Expense
|
$ | (392 | ) | $ | (660 | ) | $ | (1,590 | ) | ||
Amount and Location of Loss Recognized in Income on Derivative
|
||||||||||||
(Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
Other Income
|
$ | — | $ | — | $ | — |
Income Statement:
|
2011
|
2010
|
||||||
Equity in net income of associated companies
|
$ | 2,323 | $ | 313 | ||||
Net income attributable to Quaker Chemical Corporation
|
$ | 2,323 | $ | 313 | ||||
Net income attributable to Quaker Chemical Corporation Common Shareholders - Diluted
|
$ | 0.19 | $ | 0.03 | ||||
Balance Sheet:
|
||||||||
Investments in associated companies
|
$ | 6,131 | $ | 3,938 | ||||
Other assets
|
(500 | ) | (500 | ) | ||||
Total assets
|
$ | 5,631 | $ | 3,438 | ||||
Retained earnings
|
$ | 4,778 | $ | 2,455 | ||||
Accumulated other comprehensive loss
|
853 | 983 | ||||||
Total equity
|
$ | 5,631 | $ | 3,438 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
Current Assets
|
$ | 28,602 | $ | 32,998 | ||||
Noncurrent Assets
|
2,402 | 845 | ||||||
Current Liabilities
|
15,158 | 17,793 | ||||||
Noncurrent Liabilities
|
248 | 359 |
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Net Sales
|
$ | 55,963 | $ | 66,925 | $ | 65,592 | ||||||
Gross Margin
|
18,480 | 22,092 | 24,810 | |||||||||
Operating Income
|
4,224 | 4,769 | 5,211 | |||||||||
Net Income
|
2,118 | 1,696 | 1,071 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
Total Assets
|
$ | 130,816 | $ | 131,172 | ||||
Total Liabilities
|
97,754 | 104,310 |
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Revenue
|
$ | 8,473 | $ | 11,523 | $ | 3,317 | ||||||
Income Before Income Taxes
|
8,901 | 14,837 | 2,178 | |||||||||
Net Income
|
6,031 | 9,941 | 1,596 |
Exchange
|
||||||||||||||||||||
Charged
|
Rate
|
|||||||||||||||||||
Balance at
|
to Costs
|
Write-Offs
|
Changes
|
Balance
|
||||||||||||||||
Beginning
|
and
|
Charged to
|
And Other
|
at End
|
||||||||||||||||
of Period
|
Expenses
|
Allowance
|
Adjustments
|
of Period
|
||||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS
|
||||||||||||||||||||
Year ended December 31, 2012
|
$ | 4,569 | $ | 2,072 | $ | (737 | ) | $ | 495 | $ | 6,399 | |||||||||
Year ended December 31, 2011
|
$ | 4,278 | $ | 855 | $ | (607 | ) | $ | 43 | $ | 4,569 | |||||||||
Year ended December 31, 2010
|
$ | 4,002 | $ | 860 | $ | (538 | ) | $ | (46 | ) | $ | 4,278 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
Raw materials and supplies
|
$ | 40,417 | $ | 41,771 | ||||
Work in process and finished goods
|
32,054 | 32,987 | ||||||
$ | 72,471 | $ | 74,758 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
Non-income taxes
|
$ | 6,364 | $ | 5,683 | ||||
Present value of acquisition-related liabilities
|
— | 2,779 | ||||||
Professional fees
|
2,083 | 2,279 | ||||||
Selling expenses
|
2,205 | 1,858 | ||||||
Legal
|
1,018 | 1,420 | ||||||
Freight
|
1,120 | 1,212 | ||||||
Current portion of interest rate swaps
|
— | 418 | ||||||
Other
|
3,457 | 2,976 | ||||||
Total
|
$ | 16,247 | $ | 18,625 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
Land
|
$ | 8,346 | $ | 8,198 | ||||
Building and improvements
|
72,292 | 71,029 | ||||||
Machinery and equipment
|
134,754 | 130,939 | ||||||
Construction in progress
|
9,785 | 4,529 | ||||||
225,177 | 214,695 | |||||||
Less accumulated depreciation
|
(140,065 | ) | (131,779 | ) | ||||
$ | 85,112 | $ | 82,916 |
For the year ended December 31,
|
||||
2013
|
$ | 291 | ||
2014
|
147 | |||
2015
|
99 | |||
2016
|
65 | |||
2017
|
58 | |||
2018 and beyond
|
— | |||
Total net minimum lease payments
|
660 | |||
Less amount representing interest
|
(48 | ) | ||
Present value of net minimum lease payments
|
$ | 612 |
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Current:
|
||||||||||||
Federal
|
$ | 3,318 | $ | 3,485 | $ | 1,429 | ||||||
State
|
(69 | ) | 385 | 195 | ||||||||
Foreign
|
9,972 | 7,955 | 9,143 | |||||||||
13,221 | 11,825 | 10,767 | ||||||||||
Deferred:
|
||||||||||||
Federal
|
4,409 | 2,022 | 1,204 | |||||||||
State
|
(794 | ) | — | — | ||||||||
Foreign
|
(1,261 | ) | 409 | 645 | ||||||||
Total
|
$ | 15,575 | $ | 14,256 | $ | 12,616 |
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Domestic
|
$ | 26,520 | $ | 24,071 | $ | 9,482 | ||||||
Foreign
|
36,428 | 35,306 | 36,731 | |||||||||
Total
|
$ | 62,948 | $ | 59,377 | $ | 46,213 |
2012
|
2011
|
|||||||||||||||
Current
|
Non-current
|
Current
|
Non-current
|
|||||||||||||
Retirement benefits
|
$ | 614 | $ | 14,397 | $ | 808 | $ | 9,907 | ||||||||
Allowance for doubtful accounts
|
1,984 | — | 755 | — | ||||||||||||
Insurance and litigation reserves
|
580 | 260 | 683 | 424 | ||||||||||||
Postretirement benefits
|
— | 2,543 | — | 2,259 | ||||||||||||
Supplemental retirement benefits
|
— | 2,501 | 69 | 2,303 | ||||||||||||
Performance incentives
|
3,002 | 520 | 3,139 | 383 | ||||||||||||
Equity-based compensation
|
349 | 395 | 239 | 449 | ||||||||||||
Alternative minimum tax carryforward
|
— | — | — | 447 | ||||||||||||
Insurance settlement
|
10 | 9,425 | 26 | 9,698 | ||||||||||||
Operating loss carryforward
|
— | 9,425 | — | 3,010 | ||||||||||||
Uncertain tax positions
|
— | 7,700 | — | 7,911 | ||||||||||||
Interest rate swaps and other
|
679 | 1,039 | 786 | 216 | ||||||||||||
7,218 | 48,205 | 6,505 | 37,007 | |||||||||||||
Valuation allowance
|
(710 | ) | (7,148 | ) | — | (1,377 | ) | |||||||||
Total deferred income tax assets, net
|
$ | 6,508 | $ | 41,057 | $ | 6,505 | $ | 35,630 | ||||||||
Depreciation
|
— | 5,069 | — | 3,123 | ||||||||||||
Europe pension and other
|
— | 2,552 | — | 2,481 | ||||||||||||
Amortization and other
|
360 | 9,146 | 405 | 7,297 | ||||||||||||
Total deferred income tax liabilities
|
$ | 360 | $ | 16,767 | $ | 405 | $ | 12,901 |
Effect of
|
||||||||||||||||||||
Balance at
|
Additional
|
Allowance
|
Exchange
|
Balance
|
||||||||||||||||
Beginning
|
Valuation
|
Utilization
|
Rate
|
at End
|
||||||||||||||||
of Period
|
Allowance
|
and Other
|
Changes
|
of Period
|
||||||||||||||||
VALUATION ALLOWANCE
|
||||||||||||||||||||
Year ended December 31, 2012
|
$ | 1,377 | $ | 6,594 | $ | (34 | ) | $ | (79 | ) | $ | 7,858 | ||||||||
Year ended December 31, 2011
|
$ | 4,923 | $ | 348 | $ | (3,753 | ) | $ | (141 | ) | $ | 1,377 | ||||||||
Year ended December 31, 2010
|
$ | 5,666 | $ | 38 | $ | (769 | ) | $ | (12 | ) | $ | 4,923 |
2012
|
2011
|
|||||||
Current deferred tax assets
|
$ | 6,401 | $ | 6,338 | ||||
Non-current deferred tax assets
|
30,673 | 29,823 | ||||||
Current deferred tax liabilities
|
253 | 238 | ||||||
Non-current deferred tax liabilities
|
6,383 | 7,094 | ||||||
Net deferred tax asset
|
$ | 30,438 | $ | 28,829 |
2012
|
2011
|
2010
|
||||||||||
Income tax provision at the Federal statutory tax rate
|
$ | 22,032 | $ | 20,782 | $ | 16,175 | ||||||
Differences in tax rates on foreign earnings and
|
||||||||||||
remittances
|
(3,207 | ) | (3,692 | ) | (2,546 | ) | ||||||
Foreign dividends
|
815 | 735 | 15,645 | |||||||||
Excess foreign tax credit utilization
|
(2,237 | ) | (2,493 | ) | (15,198 | ) | ||||||
Research and development activities credit utilization
|
— | (1,348 | ) | — | ||||||||
Uncertain tax positions
|
(1,196 | ) | 701 | (1,130 | ) | |||||||
Domestic production activities deduction
|
(402 | ) | — | (932 | ) | |||||||
State income tax provisions, net
|
(45 | ) | 250 | 127 | ||||||||
Non-deductible entertainment and business meals
|
||||||||||||
expense
|
200 | 166 | 152 | |||||||||
Non-taxable gain on acquisition
|
— | (951 | ) | — | ||||||||
Miscellaneous items, net
|
(385 | ) | 106 | 323 | ||||||||
Taxes on income
|
$ | 15,575 | $ | 14,256 | $ | 12,616 |
2012
|
2011
|
2010
|
||||||||||
Unrecognized tax benefits at January 1
|
$ | 12,719 | $ | 10,464 | $ | 10,686 | ||||||
Increase in unrecognized tax benefits taken in prior periods
|
— | 1,597 | — | |||||||||
(Decrease) in unrecognized tax benefits taken in prior periods
|
(411 | ) | — | — | ||||||||
Increase in unrecognized tax benefits taken in current period
|
1,733 | 2,623 | 2,249 | |||||||||
(Decrease) in unrecognized tax benefits due to lapse of statute of limitations
|
(1,837 | ) | (1,578 | ) | (1,828 | ) | ||||||
Increase (decrease) due to foreign exchange rates
|
206 | (387 | ) | (643 | ) | |||||||
Unrecognized tax benefits at December 31
|
$ | 12,410 | $ | 12,719 | $ | 10,464 |
Other
|
||||||||||||||||||||||||||||||||
Pension Benefits
|
Postretirement Benefits
|
|||||||||||||||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||||||||||||||||||
Foreign
|
Domestic
|
Total
|
Foreign
|
Domestic
|
Total
|
Domestic
|
Domestic
|
|||||||||||||||||||||||||
Change in benefit obligation
|
||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year
|
$ | 61,581 | $ | 66,226 | $ | 127,807 | $ | 53,250 | $ | 63,125 | $ | 116,375 | $ | 7,202 | $ | 7,815 | ||||||||||||||||
Service cost
|
2,004 | 460 | 2,464 | 1,890 | 400 | 2,290 | 46 | 16 | ||||||||||||||||||||||||
Interest cost
|
3,020 | 2,803 | 5,823 | 3,037 | 3,145 | 6,182 | 283 | 331 | ||||||||||||||||||||||||
Employee contributions
|
101 | — | 101 | 104 | — | 104 | — | — | ||||||||||||||||||||||||
Benefits paid
|
(1,973 | ) | (4,668 | ) | (6,641 | ) | (1,734 | ) | (4,423 | ) | (6,157 | ) | (728 | ) | (793 | ) | ||||||||||||||||
Plan expenses and premiums paid
|
(331 | ) | (225 | ) | (556 | ) | (272 | ) | (200 | ) | (472 | ) | — | — | ||||||||||||||||||
Actuarial loss (gain)
|
14,874 | 5,811 | 20,685 | 4,799 | 4,179 | 8,978 | 514 | (167 | ) | |||||||||||||||||||||||
Translation difference and other
|
2,004 | — | 2,004 | 507 | — | 507 | — | — | ||||||||||||||||||||||||
Benefit obligation at end of year
|
$ | 81,280 | $ | 70,407 | $ | 151,687 | $ | 61,581 | $ | 66,226 | $ | 127,807 | $ | 7,317 | $ | 7,202 | ||||||||||||||||
Change in plan assets
|
||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of
|
||||||||||||||||||||||||||||||||
year
|
$ | 54,968 | $ | 43,470 | $ | 98,438 | $ | 52,873 | $ | 43,103 | $ | 95,976 | $ | — | $ | — | ||||||||||||||||
Actual return on plan assets
|
2,972 | 4,466 | 7,438 | 1,984 | 178 | 2,162 | — | — | ||||||||||||||||||||||||
Employer contributions
|
3,842 | 2,948 | 6,790 | 3,504 | 4,812 | 8,316 | 728 | 793 | ||||||||||||||||||||||||
Employee contributions
|
101 | — | 101 | 104 | — | 104 | — | — | ||||||||||||||||||||||||
Benefits paid
|
(1,973 | ) | (4,668 | ) | (6,641 | ) | (1,734 | ) | (4,423 | ) | (6,157 | ) | (728 | ) | (793 | ) | ||||||||||||||||
Plan expenses and premiums paid
|
(331 | ) | (225 | ) | (556 | ) | (272 | ) | (200 | ) | (472 | ) | — | — | ||||||||||||||||||
Translation difference
|
1,330 | — | 1,330 | (1,491 | ) | — | (1,491 | ) | — | — | ||||||||||||||||||||||
Fair value of plan assets at end of year
|
$ | 60,909 | $ | 45,991 | $ | 106,900 | $ | 54,968 | $ | 43,470 | $ | 98,438 | $ | — | $ | — | ||||||||||||||||
Net amount recognized
|
$ | (20,371 | ) | $ | (24,416 | ) | $ | (44,787 | ) | $ | (6,613 | ) | $ | (22,756 | ) | $ | (29,369 | ) | $ | (7,317 | ) | $ | (7,202 | ) | ||||||||
Amounts recognized in the balance sheet
|
||||||||||||||||||||||||||||||||
consist of:
|
||||||||||||||||||||||||||||||||
Current liabilities
|
$ | (892 | ) | $ | (577 | ) | $ | (1,469 | ) | $ | (706 | ) | $ | (585 | ) | $ | (1,291 | ) | $ | (719 | ) | $ | (747 | ) | ||||||||
Non-current liabilities
|
(19,479 | ) | (23,839 | ) | (43,318 | ) | (5,907 | ) | (22,171 | ) | (28,078 | ) | (6,598 | ) | (6,455 | ) | ||||||||||||||||
Net amount recognized
|
$ | (20,371 | ) | $ | (24,416 | ) | $ | (44,787 | ) | $ | (6,613 | ) | $ | (22,756 | ) | $ | (29,369 | ) | $ | (7,317 | ) | $ | (7,202 | ) | ||||||||
Amounts not yet reflected in net periodic
|
||||||||||||||||||||||||||||||||
benefit costs and included in
|
||||||||||||||||||||||||||||||||
accumulated other comprehensive
|
||||||||||||||||||||||||||||||||
loss:
|
||||||||||||||||||||||||||||||||
Prior service cost
|
$ | (62 | ) | $ | (460 | ) | $ | (522 | ) | $ | (90 | ) | $ | (542 | ) | $ | (632 | ) | $ | — | $ | — | ||||||||||
Accumulated loss
|
(29,227 | ) | (35,929 | ) | (65,156 | ) | (15,112 | ) | (33,160 | ) | (48,272 | ) | (2,107 | ) | (1,709 | ) | ||||||||||||||||
Accumulated other comprehensive
|
||||||||||||||||||||||||||||||||
loss (AOCI)
|
(29,289 | ) | (36,389 | ) | (65,678 | ) | (15,202 | ) | (33,702 | ) | (48,904 | ) | (2,107 | ) | (1,709 | ) | ||||||||||||||||
Cumulative employer contributions
|
||||||||||||||||||||||||||||||||
in excess of net period benefit cost
|
8,918 | 11,973 | 20,891 | 8,589 | 10,946 | 19,535 | (5,210 | ) | (5,493 | ) | ||||||||||||||||||||||
Net amount recognized
|
$ | (20,371 | ) | $ | (24,416 | ) | $ | (44,787 | ) | $ | (6,613 | ) | $ | (22,756 | ) | $ | (29,369 | ) | $ | (7,317 | ) | $ | (7,202 | ) |
2012
|
2011
|
|||||||||||||||||||||||
Foreign
|
Domestic
|
Total
|
Foreign
|
Domestic
|
Total
|
|||||||||||||||||||
Projected benefit obligation
|
$ | 81,280 | $ | 70,407 | $ | 151,687 | $ | 14,672 | $ | 66,226 | $ | 80,898 | ||||||||||||
Accumulated benefit obligation
|
75,885 | 69,951 | 145,836 | 13,630 | 65,820 | 79,450 | ||||||||||||||||||
Fair value of plan assets
|
60,909 | 45,991 | 106,900 | 8,172 | 43,470 | 51,642 |
2012
|
2011
|
|||||||||||||||||||||||
Foreign
|
Domestic
|
Total
|
Foreign
|
Domestic
|
Total
|
|||||||||||||||||||
Projected benefit obligation
|
$ | 81,280 | $ | 70,407 | $ | 151,687 | $ | 61,581 | $ | 66,226 | $ | 127,807 | ||||||||||||
Fair value of plan assets
|
60,909 | 45,991 | 106,900 | 54,968 | 43,470 | 98,438 |
2012
|
2011
|
|||||||||||||||||||||||
Foreign
|
Domestic
|
Total
|
Foreign
|
Domestic
|
Total
|
|||||||||||||||||||
Service cost
|
$ | 2,004 | $ | 460 | $ | 2,464 | $ | 1,890 | $ | 400 | $ | 2,290 | ||||||||||||
Interest cost
|
3,020 | 2,803 | 5,823 | 3,037 | 3,145 | 6,182 | ||||||||||||||||||
Expected return on plan assets
|
(1,995 | ) | (3,481 | ) | (5,476 | ) | (2,349 | ) | (3,592 | ) | (5,941 | ) | ||||||||||||
Other, amortization, net
|
620 | 2,139 | 2,759 | 265 | 1,636 | 1,901 | ||||||||||||||||||
Net periodic benefit cost
|
$ | 3,649 | $ | 1,921 | $ | 5,570 | $ | 2,843 | $ | 1,589 | $ | 4,432 |
2010
|
||||||||||||
Foreign
|
Domestic
|
Total
|
||||||||||
Service cost
|
$ | 1,606 | $ | 368 | $ | 1,974 | ||||||
Interest cost
|
2,587 | 3,385 | 5,972 | |||||||||
Expected return on plan assets
|
(2,135 | ) | (3,307 | ) | (5,442 | ) | ||||||
Settlement charge
|
— | 1,317 | 1,317 | |||||||||
Curtailment charge
|
— | 19 | 19 | |||||||||
Other, amortization, net
|
36 | 1,516 | 1,552 | |||||||||
Net periodic benefit cost
|
$ | 2,094 | $ | 3,298 | $ | 5,392 |
2012
|
2011
|
|||||||||||||||||||||||
Foreign
|
Domestic
|
Total
|
Foreign
|
Domestic
|
Total
|
|||||||||||||||||||
Net loss arising during the period
|
$ | 13,897 | $ | 4,826 | $ | 18,723 | $ | 5,164 | $ | 7,593 | $ | 12,757 | ||||||||||||
Recognition of amortization in net periodic
|
||||||||||||||||||||||||
benefit cost
|
||||||||||||||||||||||||
Prior service cost
|
(30 | ) | (82 | ) | (112 | ) | (32 | ) | (82 | ) | (114 | ) | ||||||||||||
Actuarial loss
|
(590 | ) | (2,057 | ) | (2,647 | ) | (234 | ) | (1,554 | ) | (1,788 | ) | ||||||||||||
Effect of exchange rates on amounts included in
|
||||||||||||||||||||||||
AOCI
|
809 | — | 809 | (793 | ) | — | (793 | ) | ||||||||||||||||
Total recognized in other comprehensive income
|
14,086 | 2,687 | 16,773 | 4,105 | 5,957 | 10,062 | ||||||||||||||||||
Total recognized in net periodic benefit cost and
|
||||||||||||||||||||||||
other comprehensive loss
|
$ | 17,735 | $ | 4,608 | $ | 22,343 | $ | 6,948 | $ | 7,546 | $ | 14,494 |
2010
|
||||||||||||
Foreign
|
Domestic
|
Total
|
||||||||||
Net loss arising during period
|
$ | 4,100 | $ | 3,204 | $ | 7,304 | ||||||
Recognition of amortization in net periodic benefit cost
|
||||||||||||
Transition asset
|
4 | — | 4 | |||||||||
Prior service cost
|
(30 | ) | (104 | ) | (134 | ) | ||||||
Actuarial loss
|
(10 | ) | (2,747 | ) | (2,757 | ) | ||||||
Effect of exchange rates on amounts included in AOCI
|
(259 | ) | — | (259 | ) | |||||||
Total recognized in other comprehensive loss
|
3,805 | 353 | 4,158 | |||||||||
Total recognized in net periodic benefit cost and other
|
||||||||||||
comprehensive loss
|
$ | 5,899 | $ | 3,651 | $ | 9,550 |
2012
|
2011
|
2010
|
||||||||||
Service cost
|
$ | 46 | $ | 16 | $ | 16 | ||||||
Interest cost and other
|
398 | 331 | 462 | |||||||||
Net periodic benefit costs
|
$ | 444 | $ | 347 | $ | 478 |
2012
|
2011
|
2010
|
||||||||||
Net loss (gain) arising during period
|
$ | 514 | $ | (167 | ) | $ | 747 | |||||
Amortization of actuarial loss in net periodic benefit costs
|
(116 | ) | (75 | ) | (62 | ) | ||||||
Total recognized in other comprehensive loss (income)
|
398 | (242 | ) | 685 | ||||||||
Total recognized in net periodic benefit cost and other
|
||||||||||||
comprehensive loss
|
$ | 842 | $ | 105 | $ | 1,163 |
Pension Plans
|
Other Postretirement
|
|||||||||||||||
Foreign
|
Domestic
|
Total
|
Benefits
|
|||||||||||||
Actuarial loss
|
$ | 1,474 | $ | 2,488 | $ | 3,962 | $ | 186 | ||||||||
Prior service cost
|
30 | 82 | 112 | — | ||||||||||||
$ | 1,504 | $ | 2,570 | $ | 4,074 | $ | 186 |
Other Postretirement
|
||||||||||||
Pension Benefits
|
Benefits
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||
U.S. Plans:
|
||||||||||||
Discount rate
|
3.52%
|
4.41%
|
3.20%
|
4.15%
|
||||||||
Rate of compensation increase
|
3.40%
|
3.40%
|
N/A
|
N/A
|
||||||||
Foreign Plans:
|
||||||||||||
Discount rate
|
3.94%
|
4.99%
|
N/A
|
N/A
|
||||||||
Rate of compensation increase
|
3.60%
|
3.58%
|
N/A
|
N/A
|
Other Postretirement
|
||||||||||||
Pension Benefits
|
Benefits
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||
U.S. Plans:
|
||||||||||||
Discount rate
|
4.41%
|
5.20%
|
4.15%
|
4.80%
|
||||||||
Expected long-term return on plan assets
|
8.25%
|
8.25%
|
N/A
|
N/A
|
||||||||
Rate of compensation increase
|
3.40%
|
3.40%
|
N/A
|
N/A
|
||||||||
Foreign Plans:
|
||||||||||||
Discount rate
|
4.99%
|
5.49%
|
N/A
|
N/A
|
||||||||
Expected long-term return on plan assets
|
3.51%
|
4.11%
|
N/A
|
N/A
|
||||||||
Rate of compensation increase
|
3.58%
|
3.66%
|
N/A
|
N/A
|
||||||||
2012
|
2011
|
||||
Health care cost trend rate for next year
|
7.30%
|
7.50%
|
|||
Rate to which the cost trend rate is assumed to decline
|
|||||
(the ultimate trend rate)
|
4.50%
|
4.50%
|
|||
Year that the rate reaches the ultimate trend rate
|
2027
|
2027
|
1% point
|
1% point
|
|||||||
Increase
|
Decrease
|
|||||||
Effect on total service and interest cost
|
$ | 29 | $ | (25 | ) | |||
Effect on postretirement benefit obligations
|
634 | (554 | ) |
Target
|
2012
|
2011
|
|||||||||
Asset Category
|
|||||||||||
U.S. Plans
|
|||||||||||
Equity securities
|
61%
|
58%
|
52%
|
||||||||
Debt securities
|
32%
|
40%
|
39%
|
||||||||
Other
|
7%
|
2%
|
9%
|
||||||||
Total
|
100%
|
100%
|
100%
|
||||||||
Foreign Plans
|
|||||||||||
Equity securities and other
|
18%
|
17%
|
17%
|
||||||||
Debt securities
|
82%
|
83%
|
83%
|
||||||||
Total
|
100%
|
100%
|
100%
|
Fair Value Measurements at December 31, 2012
|
||||||||||||||||
Fair Value as of
|
Using Fair Value Hierarchy
|
|||||||||||||||
U.S. Pension Assets
|
December 31, 2012
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Cash and cash equivalents
|
$ | 905 | $ | 905 | $ | — | $ | — | ||||||||
Large capitalization common stock
|
12,195 | 12,195 | — | — | ||||||||||||
Large capitalization registered investment companies
|
6,551 | 6,551 | — | — | ||||||||||||
Small capitalization common stock
|
539 | 539 | — | — | ||||||||||||
Small capitalization registered investment companies
|
1,910 | 1,910 | — | — | ||||||||||||
International developed and emerging markets registered
|
||||||||||||||||
investment companies
|
3,107 | 3,107 | — | — | ||||||||||||
International developed and emerging markets common stock
|
2,527 | 2,527 | — | — | ||||||||||||
Fixed income corporate securities
|
10,297 | 10,297 | — | — | ||||||||||||
Fixed income registered investment companies
|
6,483 | 6,483 | — | — | ||||||||||||
U.S. and foreign government fixed income securities
|
12 | 12 | — | — | ||||||||||||
Pooled separate accounts
|
1,465 | — | 1,465 | — | ||||||||||||
Total U.S. pension plan assets
|
$ | 45,991 | $ | 44,526 | $ | 1,465 | $ | — | ||||||||
Foreign Pension Assets
|
||||||||||||||||
Cash and cash equivalents
|
$ | 96 | $ | 96 | $ | — | $ | — | ||||||||
Insurance contract (underlying notional investments in
|
||||||||||||||||
debt and equity securities)
|
51,146 | — | — | 51,146 | ||||||||||||
Diversified equity securities - registered investment companies
|
5,072 | — | 5,072 | — | ||||||||||||
Fixed income registered investment companies
|
4,207 | — | 4,207 | — | ||||||||||||
Real estate registered investment companies
|
388 | — | — | 388 | ||||||||||||
Total foreign pension assets
|
$ | 60,909 | $ | 96 | $ | 9,279 | $ | 51,534 | ||||||||
Total pension assets at fair value
|
$ | 106,900 | $ | 44,622 | $ | 10,744 | $ | 51,534 |
Fair Value Measurements at December 31, 2011
|
||||||||||||||||
Fair Value as of
|
Using Fair Value Hierarchy
|
|||||||||||||||
U.S. Pension Assets
|
December 31, 2011
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Cash and cash equivalents
|
$ | 4,066 | $ | 4,066 | $ | — | $ | — | ||||||||
Large capitalization common stock
|
11,260 | 11,260 | — | — | ||||||||||||
Large capitalization registered investment companies
|
5,629 | 5,629 | — | — | ||||||||||||
Small capitalization common stock
|
389 | 389 | — | — | ||||||||||||
Small capitalization registered investment companies
|
1,641 | 1,641 | — | — | ||||||||||||
International developed and emerging markets registered
|
||||||||||||||||
investment companies
|
3,848 | 3,848 | — | — | ||||||||||||
Fixed income corporate securities
|
9,480 | 9,480 | — | — | ||||||||||||
Fixed income registered investment companies
|
5,743 | 5,743 | — | — | ||||||||||||
Pooled separate accounts
|
1,414 | — | 1,414 | — | ||||||||||||
Total U.S. pension plan assets
|
$ | 43,470 | $ | 42,056 | $ | 1,414 | $ | — | ||||||||
Foreign Pension Assets
|
||||||||||||||||
Cash and cash equivalents
|
$ | 203 | $ | 203 | $ | — | $ | — | ||||||||
Insurance contract (underlying notional investments in
|
||||||||||||||||
debt and equity securities)
|
46,797 | — | — | 46,797 | ||||||||||||
Diversified equity securities - registered investment companies
|
4,130 | — | 4,130 | — | ||||||||||||
Fixed income registered investment companies
|
3,475 | — | 3,475 | — | ||||||||||||
Real estate registered investment companies
|
363 | — | — | 363 | ||||||||||||
Total foreign pension assets
|
$ | 54,968 | $ | 203 | $ | 7,605 | $ | 47,160 | ||||||||
Total pension assets at fair value
|
$ | 98,438 | $ | 42,259 | $ | 9,019 | $ | 47,160 |
Insurance
|
Real Estate
|
|||||||||||
Contract
|
Fund
|
Total
|
||||||||||
Balance at December 31, 2010
|
$ | 45,334 | $ | 339 | $ | 45,673 | ||||||
Purchases
|
2,592 | — | 2,592 | |||||||||
Settlements
|
(1,376 | ) | — | (1,376 | ) | |||||||
Unrealized gains
|
1,738 | 24 | 1,762 | |||||||||
Currency translation adjustment
|
(1,491 | ) | — | (1,491 | ) | |||||||
Balance at December 31, 2011
|
46,797 | 363 | 47,160 | |||||||||
Purchases
|
2,997 | — | 2,997 | |||||||||
Settlements
|
(1,466 | ) | — | (1,466 | ) | |||||||
Unrealized gains
|
1,854 | 10 | 1,864 | |||||||||
Currency translation adjustment
|
964 | 15 | 979 | |||||||||
Balance at December 31, 2012
|
$ | 51,146 | $ | 388 | $ | 51,534 |
Other
|
||||||||||||||||
Pension Benefits
|
Postretirement
|
|||||||||||||||
Foreign
|
Domestic
|
Total
|
Benefits
|
|||||||||||||
2013
|
$ | 2,419 | $ | 4,885 | $ | 7,304 | $ | 719 | ||||||||
2014
|
2,248 | 4,780 | 7,028 | 697 | ||||||||||||
2015
|
1,767 | 4,442 | 6,209 | 634 | ||||||||||||
2016
|
2,265 | 4,468 | 6,733 | 611 | ||||||||||||
2017
|
2,224 | 4,311 | 6,535 | 594 | ||||||||||||
2018 and beyond
|
16,028 | 21,308 | 37,336 | 2,527 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
Industrial development authority monthly 5.60% fixed rate demand bond maturing 2018
|
$ | 5,000 | $ | 5,000 | ||||
Industrial development authority monthly 5.26% fixed rate demand bond maturing 2028
|
10,000 | 10,000 | ||||||
Credit facilities (1.96% weighted average borrowing rate at December 31, 2012)
|
12,200 | 28,500 | ||||||
Ohio Department of Development term loan (see below)
|
2,754 | 3,076 | ||||||
Other debt obligations (including capital leases)
|
1,514 | 761 | ||||||
31,468 | 47,337 | |||||||
Short-term debt
|
(867 | ) | — | |||||
Current portion of long-term debt
|
(601 | ) | (636 | ) | ||||
$ | 30,000 | $ | 46,701 |
2013
|
$ | 1,468 | ||
2014
|
12,667 | |||
2015
|
425 | |||
2016
|
398 | |||
2017
|
395 | |||
2018 and beyond
|
$ | 16,115 |
December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
Stock options
|
$ | 542 | $ | 482 | $ | 404 | ||||||
Nonvested stock awards and restricted stock units
|
1,504 | 1,430 | 1,096 | |||||||||
Employee stock purchase plan
|
48 | 44 | 42 | |||||||||
Non-elective and elective 401(k) matching contribution in stock
|
1,653 | 1,497 | 1,424 | |||||||||
Director stock ownership plan
|
60 | 60 | 130 | |||||||||
Total share-based compensation expense
|
$ | 3,807 | $ | 3,513 | $ | 3,096 |
2012
|
2011
|
|||||||||||
Weighted
|
Weighted
|
Weighted
|
Weighted
|
|||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||
Exercise
|
Remaining
|
Exercise
|
Remaining
|
|||||||||
Number of
|
Price
|
Contractual
|
Number of
|
Price
|
Contractual
|
|||||||
Shares
|
per Share
|
Term (years)
|
Shares
|
per Share
|
Term (years)
|
|||||||
Options outstanding at January 1,
|
253,342
|
$
|
16.43
|
303,444
|
$
|
14.19
|
||||||
Options granted
|
40,157
|
38.57
|
36,835
|
37.37
|
||||||||
Options exercised
|
(177,574)
|
11.87
|
(75,919)
|
18.02
|
||||||||
Options forfeited
|
(8,470)
|
29.32
|
(11,018)
|
13.67
|
||||||||
Options outstanding at December 31,
|
107,455
|
$
|
31.23
|
5.1
|
253,342
|
$
|
16.43
|
4.7
|
||||
Options exercisable at December 31,
|
17,360
|
$
|
28.81
|
4.4
|
98,239
|
$
|
11.83
|
4.3
|
Number
|
Weighted
|
Weighted
|
Number
|
Weighted
|
|||||||||
Outstanding
|
Average
|
Average
|
Exercisable
|
Average
|
|||||||||
Range of
|
at
|
Contractual
|
Exercise
|
at
|
Exercise
|
||||||||
Exercise Prices
|
12/31/2012
|
Life
|
Price
|
12/31/2012
|
Price
|
||||||||
$
|
—
|
-
|
$
|
10.00
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
||
$
|
10.01
|
-
|
$
|
20.00
|
38,139
|
4.0
|
18.85
|
8,073
|
18.97
|
||||
$
|
20.01
|
-
|
$
|
30.00
|
—
|
—
|
—
|
—
|
—
|
||||
$
|
30.01
|
-
|
$
|
40.00
|
67,124
|
5.7
|
37.77
|
9,287
|
37.37
|
||||
$
|
40.01
|
-
|
$
|
50.00
|
2,192
|
6.5
|
46.21
|
—
|
—
|
||||
107,455
|
5.1
|
31.23
|
17,360
|
28.81
|
June 30,
|
March 31,
|
Year Ended December 31,
|
|||||||||||||
2012
|
2012
|
2011
|
2010
|
2009
|
|||||||||||
Stock option awards
|
2,192
|
37,965
|
36,835
|
110,939
|
165,990
|
||||||||||
Dividend yield
|
2.69
|
%
|
3.09
|
%
|
5.00
|
%
|
5.10
|
%
|
3.90
|
%
|
|||||
Expected volatility
|
69.09
|
%
|
69.90
|
%
|
62.13
|
%
|
53.72
|
%
|
44.22
|
%
|
|||||
Risk-free interest rate
|
0.58
|
%
|
0.61
|
%
|
1.99
|
%
|
2.85
|
%
|
2.09
|
%
|
|||||
Expected term (years)
|
4.0
|
4.0
|
5.0
|
6.0
|
6.0
|
Year Ended December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
2012 Stock option awards
|
$ | 167 | $ | — | $ | — | ||||||
2011 Stock option awards
|
$ | 164 | $ | 139 | $ | — | ||||||
2010 Stock option awards
|
$ | 193 | $ | 224 | $ | 209 | ||||||
2009 Stock option awards
|
$ | 18 | $ | 113 | $ | 112 |
Weighted
|
|||||
Average Grant
|
|||||
Number of
|
Date Fair Value
|
||||
Shares
|
(per share)
|
||||
Nonvested awards, December 31, 2011
|
169,863
|
$
|
20.66
|
||
Granted
|
42,754
|
$
|
39.43
|
||
Vested
|
(83,019)
|
$
|
12.99
|
||
Forfeited
|
(6,654)
|
$
|
27.67
|
||
Nonvested awards, December 31, 2012
|
122,944
|
$
|
31.98
|
Weighted
|
|||||
Average Grant
|
|||||
Number of
|
Date Fair Value
|
||||
Units
|
(per unit)
|
||||
Nonvested awards, December 31, 2011
|
—
|
$
|
—
|
||
Granted
|
2,100
|
$
|
38.13
|
||
Vested
|
—
|
$
|
—
|
||
Forfeited
|
—
|
$
|
—
|
||
Nonvested awards, December 31, 2012
|
2,100
|
$
|
38.13
|
Weighted
|
|||||
Average Grant
|
|||||
Number of
|
Date Fair Value
|
||||
Shares
|
(per share)
|
||||
Nonvested awards, December 31, 2011
|
62,250
|
$
|
7.72
|
||
Granted
|
—
|
$
|
—
|
||
Vested
|
(59,850)
|
$
|
7.72
|
||
Forfeited
|
(2,400)
|
$
|
7.72
|
||
Nonvested awards, December 31, 2012
|
—
|
$
|
—
|
December 31,
|
||||||||||||
2012
|
2011
|
2010
|
||||||||||
(re-cast)
|
(re-cast)
|
|||||||||||
Basic earnings per common share
|
|
|
||||||||||
Net income attributable to Quaker Chemical Corporation
|
$ | 47,405 | $ | 45,892 | $ | 32,120 | ||||||
Less: income allocated to participating securities
|
(526 | ) | (825 | ) | (660 | ) | ||||||
Net income available to common shareholders
|
$ | 46,879 | $ | 45,067 | $ | 31,460 | ||||||
Basic weighted average common shares outstanding
|
12,871,703 | 12,159,958 | 11,039,410 | |||||||||
Basic earnings per common share
|
$ | 3.64 | $ | 3.71 | $ | 2.85 | ||||||
Diluted earnings per common share
|
||||||||||||
Net income attributable to Quaker Chemical Corporation
|
$ | 47,405 | $ | 45,892 | $ | 32,120 | ||||||
Less: income allocated to participating securities
|
(524 | ) | (817 | ) | (652 | ) | ||||||
Net income available to common shareholders
|
$ | 46,881 | $ | 45,075 | $ | 31,468 | ||||||
Basic weighted average common shares outstanding
|
12,871,703 | 12,159,958 | 11,039,410 | |||||||||
Effect of dilutive securities
|
58,798 | 158,215 | 202,551 | |||||||||
Diluted weighted average common shares outstanding
|
12,930,501 | 12,318,173 | 11,241,961 | |||||||||
Diluted earnings per common share
|
$ | 3.63 | $ | 3.66 | $ | 2.80 |
Metalworking
|
Other
|
|||||||||||||||
Process
|
Chemical
|
|||||||||||||||
Chemicals
|
Coatings
|
Products
|
Total
|
|||||||||||||
2012
|
|
|
|
|||||||||||||
Net sales
|
$ | 661,794 | $ | 42,763 | $ | 3,669 | $ | 708,226 | ||||||||
Operating income for reportable segments
|
116,013 | 10,654 | 304 | 126,971 | ||||||||||||
Depreciation
|
10,834 | 700 | 60 | 11,594 | ||||||||||||
Segment assets
|
514,513 | 21,406 | 715 | 536,634 | ||||||||||||
Expenditures for long-lived assets
|
12,291 | 444 | — | 12,735 | ||||||||||||
2011
|
||||||||||||||||
Net sales
|
$ | 641,325 | $ | 39,182 | $ | 2,724 | $ | 683,231 | ||||||||
Operating income for reportable segments
|
110,118 | 9,275 | 112 | 119,505 | ||||||||||||
Depreciation
|
10,222 | 624 | 43 | 10,889 | ||||||||||||
Segment assets (re-cast)
|
489,615 | 20,644 | 893 | 511,152 | ||||||||||||
Expenditures for long-lived assets
|
11,706 | 411 | — | 12,117 | ||||||||||||
2010
|
||||||||||||||||
Net sales
|
$ | 511,305 | $ | 30,999 | $ | 1,759 | $ | 544,063 | ||||||||
Operating income (loss) for reportable segments
|
98,427 | 7,093 | (77 | ) | 105,443 | |||||||||||
Depreciation
|
9,150 | 555 | 31 | 9,736 | ||||||||||||
Segment assets (re-cast)
|
433,821 | 18,201 | 846 | 452,868 | ||||||||||||
Expenditures for long-lived assets
|
8,983 | 370 | 1 | 9,354 |
2012
|
2011
|
2010
|
||||||||||
Total operating income for reportable segments
|
$ | 126,971 | $ | 119,505 | $ | 105,443 | ||||||
Non-income tax contingency charge
|
— | — | (4,132 | ) | ||||||||
CEO transition charges
|
— | — | (1,317 | ) | ||||||||
Non-operating charges
|
(59,983 | ) | (58,689 | ) | (50,744 | ) | ||||||
Depreciation of corporate assets and amortization
|
(3,764 | ) | (2,904 | ) | (1,119 | ) | ||||||
Consolidated operating income
|
63,224 | 57,912 | 48,131 | |||||||||
Interest expense
|
(4,283 | ) | (4,666 | ) | (5,225 | ) | ||||||
Interest income
|
592 | 1,081 | 1,201 | |||||||||
Other income, net
|
3,415 | 5,050 | 2,106 | |||||||||
Consolidated income before taxes and equity in net
|
||||||||||||
income of associated companies
|
$ | 62,948 | $ | 59,377 | $ | 46,213 |
2012
|
2011
|
2010
|
|||||||||
Net sales
|
|||||||||||
North America
|
$ | 310,127 | $ | 268,519 | $ | 190,623 | |||||
Europe
|
169,323 | 178,695 | 148,426 | ||||||||
Asia/Pacific
|
157,062 | 151,468 | 125,189 | ||||||||
South America
|
66,238 | 79,181 | 75,169 | ||||||||
South Africa
|
5,476 | 5,368 | 4,656 | ||||||||
Consolidated
|
$ | 708,226 | $ | 683,231 | $ | 544,063 |
2012 | 2011 | 2010 | |||||||||
(re-cast) | (re-cast) | ||||||||||
Long-lived assets
|
|||||||||||
North America
|
$ | 88,857 | $ | 90,800 | $ | 85,821 | |||||
Europe
|
22,299 | 19,215 | 24,793 | ||||||||
Asia/Pacific
|
19,720 | 15,225 | 14,099 | ||||||||
South America
|
5,276 | 6,577 | 6,998 | ||||||||
South Africa
|
21 | 28 | 41 | ||||||||
Consolidated
|
$ | 136,173 | $ | 131,845 | $ | 131,752 |
NP Coil Dexter | ||||
2012 Acquisitions
|
Industries, S.r.l. | |||
Current assets
|
$ | 5,536 | ||
Fixed assets
|
1,211 | |||
Intangibles
|
3,825 | |||
Goodwill
|
1,786 | |||
Other long-term assets
|
783 | |||
Total assets purchased
|
13,141 | |||
Short-term debt
|
(1,186 | ) | ||
Other current liabilities
|
(6,168 | ) | ||
Long-term debt
|
(854 | ) | ||
Other long-term liabilities
|
(1,258 | ) | ||
Present value of hold-back
|
(927 | ) | ||
Total liabilities assumed
|
(10,393 | ) | ||
Cash paid for an acquisition
|
$ | 2,748 |
Quaker
|
GW Smith
|
|||||||||
2011 Acquisitions
|
Tecniquimia
|
& Sons, Inc.
|
Total
|
|||||||
Current assets
|
$ | 8,946 | $ | 6,138 | $ | 15,084 | ||||
Fixed assets
|
4,308 | 2,869 | 7,177 | |||||||
Intangibles
|
3,556 | 6,260 | 9,816 | |||||||
Goodwill
|
6,773 | 1,120 | 7,893 | |||||||
Other long-term assets
|
1,355 | 1 | 1,356 | |||||||
Total assets purchased
|
24,938 | 16,388 | 41,326 | |||||||
Current liabilities
|
(2,224 | ) | (1,001 | ) | (3,225 | ) | ||||
Long-term liabilities
|
(6,869 | ) | — | (6,869 | ) | |||||
Present value of hold-back
|
(1,754 | ) | (869 | ) | (2,623 | ) | ||||
Total liabilities assumed
|
(10,847 | ) | (1,870 | ) | (12,717 | ) | ||||
Additional minimum pension liability
|
987 | — | 987 | |||||||
Total equity assumed
|
987 | — | 987 | |||||||
Fair value of previously held equity interest
|
(4,578 | ) | — | (4,578 | ) | |||||
Cash paid for acquisitions
|
$ | 10,500 | $ | 14,518 | $ | 25,018 |
Metalworking
|
||||||||||||
Process
|
||||||||||||
Chemicals
|
Coatings
|
Total
|
||||||||||
Balance as of December 31, 2010
|
$ | 44,677 | $ | 8,081 | $ | 52,758 | ||||||
Goodwill additions
|
8,229 | — | 8,229 | |||||||||
Currency translation adjustments and other
|
(2,835 | ) | — | (2,835 | ) | |||||||
Balance as of December 31, 2011
|
$ | 50,071 | $ | 8,081 | $ | 58,152 | ||||||
Goodwill additions
|
1,786 | — | 1,786 | |||||||||
Currency translation adjustments and other
|
(769 | ) | — | (769 | ) | |||||||
Balance as of December 31, 2012
|
$ | 51,088 | $ | 8,081 | $ | 59,169 |
Gross Carrying
|
Accumulated
|
|||||||||||||||
Amount
|
Amortization
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Amortized intangible assets
|
|
|
|
|
||||||||||||
Customer lists and rights to sell
|
$ | 32,356 | $ | 30,435 | $ | 8,192 | $ | 6,386 | ||||||||
Trademarks and patents
|
6,760 | 4,685 | 2,548 | 1,991 | ||||||||||||
Formulations and product technology
|
5,278 | 5,278 | 3,423 | 3,090 | ||||||||||||
Other
|
5,467 | 5,309 | 3,989 | 3,557 | ||||||||||||
Total
|
$ | 49,861 | $ | 45,707 | $ | 18,152 | $ | 15,024 |
For the year ended December 31, 2013
|
$ | 3,167 | ||
For the year ended December 31, 2014
|
$ | 2,938 | ||
For the year ended December 31, 2015
|
$ | 2,938 | ||
For the year ended December 31, 2016
|
$ | 2,464 | ||
For the year ended December 31, 2017
|
$ | 2,016 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
(re-cast)
|
||||||||
Restricted insurance settlement
|
$ | 26,398 | $ | 27,720 | ||||
Deferred compensation assets
|
915 | 945 | ||||||
Supplemental retirement income program
|
1,653 | 1,508 | ||||||
Uncertain tax positions
|
3,058 | 1,842 | ||||||
Other
|
2,434 | 2,841 | ||||||
Total
|
$ | 34,458 | $ | 34,856 |
December 31,
|
||||||||
2012
|
2011
|
|||||||
Restricted insurance settlement
|
$ | 26,398 | $ | 27,720 | ||||
Uncertain tax positions (includes interest and penalties)
|
16,328 | 16,285 | ||||||
Environmental reserves
|
456 | 934 | ||||||
Acquisition-related consideration
|
4,651 | 5,869 | ||||||
Other (primarily deferred and long-term compensation)
|
5,034 | 4,010 | ||||||
Total
|
$ | 52,867 | $ | 54,818 |
2013
|
$ | 4,927 | ||
2014
|
$ | 4,003 | ||
2015
|
$ | 3,472 | ||
2016
|
$ | 2,941 | ||
2017
|
$ | 1,466 | ||
2018 and beyond
|
$ | 2 |
First (1)
|
Second (2)
|
Third (3)
|
Fourth (4)
|
|||||||||
2012
|
(re-cast)
|
(re-cast)
|
(re-cast)
|
|||||||||
Net sales
|
$ | 177,638 | $ | 176,797 | $ | 180,923 | $ | 172,868 | ||||
Gross profit
|
59,795 | 60,636 | 59,126 | 59,154 | ||||||||
Operating income
|
16,702 | 16,983 | 15,863 | 13,676 | ||||||||
Net income attributable to Quaker Chemical Corporation
|
12,365 | 11,108 | 10,925 | 13,007 | ||||||||
Net income attributable to Quaker Chemical Corporation
|
||||||||||||
Common Shareholders - Basic
|
$ | 0.96 | $ | 0.86 | $ | 0.84 | $ | 0.99 | ||||
Net income attributable to Quaker Chemical Corporation
|
||||||||||||
Common Shareholders - Diluted
|
$ | 0.95 | $ | 0.85 | $ | 0.83 | $ | 0.99 | ||||
First (1)
|
Second (2)
|
Third (3)
|
Fourth (4)
|
|||||||||
2011
|
(re-cast)
|
(re-cast)
|
(re-cast)
|
(re-cast)
|
||||||||
Net sales
|
$ | 159,865 | $ | 167,792 | $ | 182,313 | $ | 173,261 | ||||
Gross profit
|
52,734 | 53,766 | 59,486 | 56,664 | ||||||||
Operating income
|
14,100 | 14,941 | 17,504 | 11,367 | ||||||||
Net income attributable to Quaker Chemical Corporation
|
11,026 | 10,554 | 13,942 | 10,370 | ||||||||
Net income attributable to Quaker Chemical Corporation
|
||||||||||||
Common Shareholders - Basic
|
$ | 0.96 | $ | 0.86 | $ | 1.09 | $ | 0.80 | ||||
Net income attributable to Quaker Chemical Corporation
|
||||||||||||
Common Shareholders - Diluted
|
$ | 0.94 | $ | 0.85 | $ | 1.07 | $ | 0.80 |
(1)
|
Net income attributable to Quaker Chemical Corporation includes tax benefits of approximately $0.12 and $0.11 per diluted share in the first quarters of 2012 and 2011, respectively, resulting from the derecognition of several uncertain tax positions due to the expiration of applicable statutes of limitation.
|
(2)
|
Net income attributable to Quaker Chemical Corporation includes charges of approximately $0.06 per diluted share in the second quarter of 2012 due to certain customer bankruptcies in the U.S. and approximately $0.03 per diluted share related to CFO transition costs.
|
(3)
|
Net income attributable to Quaker Chemical Corporation includes tax benefits of approximately $0.03 per diluted share in both the third quarters of 2012 and 2011 resulting from the derecognition of several uncertain tax positions due to the expiration of applicable statutes of limitation. Net income attributable to Quaker Chemical Corporation also includes certain uncommon charges of $0.05 per diluted share largely consisting of severance and other related costs and costs associated with the launch of the Company's new revitalized Brand. Net income attributable to Quaker Chemical Corporation in the third quarter of 2011 includes earnings per diluted share of $0.22 representing the revaluation of the Company’s previously held ownership interest in its Mexican equity affiliate to its fair value related to the purchase of the remaining ownership interest in this affiliate.
|
(4)
|
Net income attributable to Quaker Chemical Corporation includes tax benefits of approximately $0.02 per diluted common share in both the fourth quarters of 2012 and 2011 resulting from the derecognition of several uncertain tax positions due to the expiration of applicable statutes of limitation. Net income attributable to Quaker Chemical Corporation also includes earnings per diluted share of $0.09 and $0.03 in the fourth quarters of 2012 and 2011, respectively, related to changes in the fair value of a contingent consideration liability during each respective period. In addition, net income attributable to Quaker Chemical Corporation for the fourth quarter of 2012 includes earnings per diluted share of $0.08 related to a separate change in the fair value of an acquisition-related liability. Net income attributable to Quaker Chemical Corporation for the fourth quarter of 2012 also includes certain uncommon charges of $0.06 per diluted share largely consisting of severance and other related costs and costs associated with the launch of the Company's new revitalized Brand.
|
Three Months Ended
|
||||||||||||
Condensed Consolidated Statement of Income
|
March 31, 2012
|
June 30, 2012
|
September 30, 2012
|
|||||||||
Equity in net income of associated companies
|
$ | 419 | $ | 568 | $ | 439 | ||||||
Net income attributable to Quaker Chemical Corporation
|
$ | 419 | $ | 568 | $ | 439 | ||||||
Net income attributable to Quaker Chemical Corporation Common Shareholders - Diluted
|
$ | 0.04 | $ | 0.04 | $ | 0.03 | ||||||
Condensed Consolidated Balance Sheet
|
March 31, 2012
|
June 30, 2012
|
September 30, 2012
|
|||||||||
Investments in associated companies
|
$ | 7,620 | $ | 7,819 | $ | 8,685 | ||||||
Other assets
|
(500 | ) | (500 | ) | (500 | ) | ||||||
Total assets
|
$ | 7,120 | $ | 7,319 | $ | 8,185 | ||||||
Retained earnings
|
$ | 5,197 | $ | 5,765 | $ | 6,204 | ||||||
Accumulated other comprehensive loss
|
1,923 | 1,554 | 1,981 | |||||||||
Total equity
|
$ | 7,120 | $ | 7,319 | $ | 8,185 | ||||||
Three Months Ended
|
||||||||||||
Condensed Consolidated Statement of Income
|
March 31, 2011
|
June 30, 2011
|
September 30, 2011
|
December 31, 2011
|
||||||||
Equity in net income of associated companies
|
$ | 426 | $ | 713 | $ | 584 | $ | 600 | ||||
Net income attributable to Quaker Chemical Corporation
|
$ | 426 | $ | 713 | $ | 584 | $ | 600 | ||||
Net income attributable to Quaker Chemical Corporation Common Shareholders - Diluted
|
$ | 0.03 | $ | 0.06 | $ | 0.04 | $ | 0.05 | ||||
Condensed Consolidated Balance Sheet
|
March 31, 2011
|
June 30, 2011
|
September 30, 2011
|
December 31, 2011
|
||||||||
Investments in associated companies
|
$ | 4,486 | $ | 5,248 | $ | 4,919 | $ | 6,131 | ||||
Other assets
|
(500 | ) | (500 | ) | (500 | ) | (500 | ) | ||||
Total assets
|
$ | 3,986 | $ | 4,748 | $ | 4,419 | $ | 5,631 | ||||
Retained earnings
|
$ | 2,881 | $ | 3,594 | $ | 4,178 | $ | 4,778 | ||||
Accumulated other comprehensive loss
|
1,105 | 1,154 | 241 | 853 | ||||||||
Total equity
|
$ | 3,986 | $ | 4,748 | $ | 4,419 | $ | 5,631 |
Item 9.
|
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.
|
Item 9B.
|
Other Information.
|
Item 11.
|
Executive Compensation.
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
|
Equity Compensation Plan Information | |||||||||||
Number of securities
|
|||||||||||
Number of securities
|
remaining available for
|
||||||||||
to be issued upon
|
Weighted-average
|
future issuance under
|
|||||||||
exercise of
|
exercise price of
|
equity compensation plans
|
|||||||||
outstanding options,
|
outstanding options,
|
(excluding securities
|
|||||||||
Plan Category
|
warrants and rights
|
warrants and rights
|
reflected in column (a))
|
||||||||
(a)
|
(b)
|
(c)
|
|||||||||
Equity compensation plans approved
|
|||||||||||
by security holders
|
107,455 | $ | 31.23 | 869,352 | (1 | ) | |||||
Equity compensation plans not approved
|
|||||||||||
by security holders
|
— | — | — | ||||||||
Total
|
107,455 | $ | 31.23 | 869,352 |
(1)
|
As of December 31, 2012, 304,900 of these shares were available for issuance as restricted stock awards under the Company’s 2001 Global Annual Incentive Plan, 44,160 shares were available for issuance upon the exercise of stock options and/or as restricted stock awards under the Company’s 2006 Long-Term Performance Incentive Plan, 494,694 shares were available for issuance upon the exercise of stock options and/or as restricted stock awards under the Company’s 2011 Long-Term Performance Incentive Plan, and 25,598 shares were available for issuance under the 2003 Director Stock Ownership Plan.
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence.
|
Item 14.
|
Principal Accountant Fees and Services.
|
Item 15.
|
Exhibits and Financial Statement Schedules.
|
1.
|
Financial Statements and Supplementary Data.
|
|
Page
|
|
Financial Statements:
|
|
|
|
27
|
|
|
28
|
|
29
|
||
|
30
|
|
|
31
|
|
|
32
|
|
|
33
|
2.
|
Financial Statement Schedules
|
3(i) — |
Amended and Restated Articles of Incorporation dated July 16, 1990. Incorporated by reference to Exhibit 3(a) as filed by Registrant with Form 10-K for the year 1996.
|
||
3(ii) —
|
By-laws (as amended effective October 4, 2008). Incorporated by reference to Exhibit 10.1 as filed by Registrant with Form 10-Q for the quarter ended September 30, 2008.
|
||
10.1 — |
Deferred Compensation Plan as adopted by the Registrant dated December 17, 1999, effective July 1, 1997. Incorporated by reference to Exhibit 10(ff) as filed by Registrant with Form 10-K for the year 1999.*
|
||
10.2 — |
Supplemental Retirement Income Program adopted by the Registrant on November 6, 1984, as amended November 8, 1989. Incorporated by reference to Exhibit 10(gg) as filed by Registrant with Form 10-K for the year 1999.*
|
||
10.3 — |
2001 Global Annual Incentive Plan as approved May 9, 2001, effective January 1, 2001. Incorporated by reference to Exhibit 10(hh) as filed by Registrant with Form 10-K for the year 2001.*
|
||
10.4 — |
2003 Director Stock Ownership Plan as approved May 14, 2003. Incorporated by reference to Exhibit 10(ww) as filed by the Registrant with Form 10-K for the year 2003.*
|
||
10.5 — |
Credit Agreement between Registrant and Bank of America, N.A. and ABN AMRO Bank, N.V. and Banc of America Securities, in the amount of $100,000,000, dated October 14, 2005. Incorporated by reference to Exhibit 10(jjj) as filed by the Registrant with Form 10-Q for the quarter ended September 30, 2005.
|
||
10.6 — |
Settlement Agreement and Release between Registrant, an inactive subsidiary of the Registrant, and Hartford Accident and Indemnity Company dated December 12, 2005. Incorporated by reference to Exhibit 10(nnn) as filed by the Registrant with Form 10-K for the year 2005.
|
||
10.7 — |
Amendment to Registrant’s Deferred Compensation Plan for key officers dated December 20, 2005. Incorporated by reference to Exhibit 10 as filed by Registrant with Form 8-K filed on December 22, 2005.*
|
||
10.8 — |
2001 Global Annual Incentive Plan, as amended and restated. Incorporated by reference to Appendix D to the Registrant’s definitive proxy statement filed on March 31, 2006.*
|
10.9 — |
2006 Long-Term Performance Incentive Plan. Incorporated by reference to Appendix E to the Registrant’s definitive proxy statement filed on March 31, 2006.*
|
||
10.10 — |
Form of Stock Option Agreement provided for associates under the Registrant’s 2006 Long-Term Performance Incentive Plan. Incorporated by reference to Exhibit 10.3 as filed by Registrant with Form 8-K filed on May 12, 2006.*
|
||
10.11 — |
Form of Restricted Stock Award Agreement for executive officers and other employees under Registrant’s 2006 Long-Term Performance Incentive Plan. Incorporated by reference to Exhibit 10 as filed by Registrant with Form 8-K filed on June 27, 2006.*
|
||
10.12 — |
Employment Agreement by and between L. Willem Platzer and Quaker Chemical B.V., a Netherlands corporation and a subsidiary of Registrant, dated August 21, 2006. Incorporated by reference to Exhibit 10 as filed by the Registrant with Form 8-K filed on August 22, 2006.*
|
||
10.13 — |
First Amendment to Syndicated Multicurrency Credit Agreement between Registrant and Bank of America, N.A. and certain other financial institutions dated October 6, 2006. Incorporated by reference to Exhibit 10.30 as filed by the Registrant with Form 10-K for the year ended 2008.
|
||
10.14 — |
2006 Long-Term Performance Incentive Plan (amended and restated effective November 8, 2006). Incorporated by reference to Exhibit 10(www) as filed by the Registrant with Form 10-K for the year ended 2006.*
|
||
10.15 — |
Financing Agreement by and among Montgomery County Industrial Development Authority and Registrant and Brown Brothers Harriman & Co. dated February 1, 2007. Incorporated by reference to Exhibit 10(yyy) as filed by the Registrant with Form 10-K for the year ended 2006.
|
||
10.16 — |
Settlement Agreement and Release between Registrant, an inactive subsidiary of Registrant and Federal Insurance Company dated March 26, 2007. Incorporated by reference to Exhibit 10(zzz) as filed by the Registrant with Form 10-Q for the quarter ended March 31, 2007.
|
||
10.17 — |
Change in Control Agreement by and between Registrant and L. Willem Platzer dated April 2, 2007, effective January 1, 2007. Incorporated by reference to Exhibit 10(aaaa) as filed by the Registrant with Form 10-Q for the quarter ended March 31, 2007.*
|
||
10.18 — |
Change in Control Agreement by and between Registrant and Jan F. Nieman dated June 27, 2007, effective January 1, 2007. Incorporated by reference to Exhibit 10 (cccc) as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2007.*
|
||
10.19 — |
Memorandum of Employment dated June 28, 2007 between Registrant and Mark A. Featherstone, effective April 9, 2007. Incorporated by reference to Exhibit 10 as filed by the Registrant with Form 8-K filed on July 2, 2007.*
|
||
10.20 — |
Amendment No.1 to the Registrant’s Director Stock Ownership Plan (as amended March 7, 2007) approved on July 25, 2007. Incorporated by reference to Exhibit 10.37 as filed by the Registrant with Form 10-K for the year ended 2008.*
|
||
10.21 — |
Second Amendment to Syndicated Multicurrency Credit Agreement between Registrant and Bank of America, N.A. and certain other financial institutions dated August 13, 2007. Incorporated by reference to Exhibit 10(eeee) as filed by the Registrant with Form 10-Q for the quarter ended September 30, 2007.
|
||
10.22 — |
Claim Handling and Funding Agreement between SB Decking, Inc., an inactive subsidiary of Registrant, and Employers Insurance Company of Wausau dated September 25, 2007. Incorporated by reference to Exhibit 10(ffff) as filed by the Registrant with Form 10-Q for the quarter ended September 30, 2007.
|
||
10.23 — |
Settlement Agreement and Mutual Release entered into between AC Products, Inc., wholly owned subsidiary of Registrant, and Orange County Water District, effective November 8, 2007. Incorporated by reference to Exhibit 10.47 as filed by the Registrant with Form 10-K for the year ended 2007.
|
10.24 — |
Financing Agreement by and among Butler County Port Authority and Registrant and Brown Brothers Harriman & Co. dated May 15, 2008. Incorporated by reference to Exhibit 10.1 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2008.
|
||
10.25 — |
Engineering, Procurement and Construction Contract by and between Registrant and FMC Technologies, Inc., effective May 14, 2008. Incorporated by reference to Exhibit 10.2 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2008.
|
||
10.26 — |
Employment, Transition and Consulting Agreement by and between Registrant and Ronald J. Naples dated May 22, 2008, effective May 7, 2008. Incorporated by reference to Exhibit 10.3 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2008. *
|
||
10.27 — |
Employment Agreeement by and between Registrant and Michael F. Barry dated July 1, 2008. Incorporated by reference to Exhibit 10.5 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2008. *
|
||
10.28 — |
Change in Control Agreement by and between Registrant and Michael F. Barry dated July 1, 2008. Incorporated by reference to Exhibit 10.6 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2008. *
|
||
10.29 — |
Butler County Port Authority Industrial Development Revenue Bond dated May 15, 2008. Incorporated by reference to Exhibit 10.7 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2008.
|
||
10.30 — |
Expatriate Agreement by and between Jan F. Nieman and Quaker Chemical Limited (Hong Kong) and Quaker Chemical B.V., both subsidiaries of Registrant, dated June 3, 2003, effective August 1, 2003 and Amended Expatriate Agreement by and between Jan F. Nieman and Quaker Chemical (China) Co. Ltd., Quaker Chemical Limited (Hong Kong) and Quaker Chemical B.V., all subsidiaries of Registrant, dated July 27, 2008, effective August 1, 2008. Incorporated by reference to Exhibit 10.37 as filed by the Registrant with Form 10-K for the year ended December 31, 2009.*
|
||
10.31 — |
Memorandum of Employment by and between Registrant and Joseph F. Matrange dated September 30, 2008. Incorporated by reference to Exhibit 10.48 as filed by the Registrant with Form 10-K for the year ended 2008. *
|
||
10.32 — |
Memorandum of Employment by and between Registrant and D. Jeffry Benoliel dated October 1, 2008. Incorporated by reference to Exhibit 10.49 as filed by the Registrant with Form 10-K for the year ended 2008. *
|
||
10.33 — |
Amendment to Memorandum of Employment by and between Mark A. Featherstone and Registrant dated November 19, 2008, effective January 1, 2008. Incorporated by reference to Exhibit 10.52 as filed by the Registrant with Form 10-K for the year ended 2008. *
|
||
10.34 — |
Change in Control Agreement by and between Registrant and Mark A. Featherstone dated November 19, 2008, effective January 1, 2008. Incorporated by reference to Exhibit 10.53 as filed by the Registrant with Form 10-K for the year ended 2008. *
|
||
10.35 — |
Change in Control Agreement by and between Registrant and D. Jeffry Benoliel dated November 19, 2008, effective January 1, 2008. Incorporated by reference to Exhibit 10.54 as filed by the Registrant with Form 10-K for the year ended 2008. *
|
||
10.36 — |
Change in Control Agreement by and between Registrant and Joseph F. Matrange dated November 19, 2008, effective October 1, 2008. Incorporated by reference to Exhibit 10.55 as filed by the Registrant with Form 10-K for the year ended 2008. *
|
||
10.37 — |
Change in Control Agreement by and between Registrant and Ronald S. Ettinger dated November 19, 2008, effective October 1, 2008. Incorporated by reference to Exhibit 10.56 as filed by the Registrant with Form 10-K for the year ended 2008. *
|
||
10.38 — |
Change in Control Agreement by and between Registrant and George H. Hill dated November 19, 2008, effective October 1, 2008. Incorporated by reference to Exhibit 10.57 as filed by the Registrant with Form 10-K for the year ended 2008. *
|
10.39 — |
Supplemental Retirement Income Program (as amended and restated effective January 1, 2008), approved November 19, 2008. Incorporated by reference to Exhibit 10.58 as filed by the Registrant with Form 10-K for the year ended 2008. *
|
||
10.40 — |
Amendment No. 1 to the 2001 Global Annual Incentive Plan (as amended and restated effective January 1, 2006), approved November 19, 2008. Incorporated by reference to Exhibit 10.60 as filed by the Registrant with Form 10-K for the year ended 2008. *
|
||
10.41 — |
Amendment No. 1 to the 2006 Long-Term Performance Incentive Plan (as amended and restated effective November 8, 2006), approved November 19, 2008. Incorporated by reference to Exhibit 10.61 as filed by the Registrant with Form 10-K for the year ended 2008. *
|
||
10.42 — |
Third Amendment to Syndicated Multicurrency Credit Agreement between Registrant and Bank of America, N.A. and certain other financial institutions dated February 13, 2009, effective February 17, 2009. Incorporated by reference to Exhibit 10.62 as filed by the Registrant with Form 10-K for the year ended 2008.
|
||
10.43 — |
Amendment No. 2 to the Quaker Chemical Corporation 2003 Director Stock Ownership Plan (As Amended March 7, 2007). Incorporated by reference to Exhibit 10.1 as filed by the Registrant with Form 10-Q for the quarter ended March 31, 2009. *
|
||
10.44 — |
Amended Expatriate Agreement by and between Jan F. Nieman and Quaker Chemical (China) Ltd., Quaker Chemical Limited (Hong Kong) and Quaker Chemical B.V., all subsidiaries of Registrant, dated April 6, 2010, Effective March 1, 2010. Incorporated by reference to Exhibit 10.1 as filed by the Registrant with Form 10-Q for the quarter ended March 31, 2010. *
|
||
10.45 — |
Employment Agreement by and between Registrant and Joseph Berquist dated April 1, 2010. Incorporated by reference to Exhibit 10.2 as filed by the Registrant with Form 10-Q for the quarter ended March 31, 2010. *
|
||
10.46 — |
Change in Control Agreement by and between Registrant and Joseph Berquist dated April 1, 2010. Incorporated by reference to Exhibit 10.3 as filed by the Registrant with Form 10-Q for the quarter ended March 31, 2010. *
|
||
10.47 — |
Fourth Amendment to Syndicated Multicurrency Credit Agreement between Registrant and Bank of America, N.A. and certain other financial institutions dated June 21, 2010. Incorporated by reference to Exhibit 10.1 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2010.
|
||
10.48 — |
Stock Purchase Agreement by and among Registrant, Summit Lubricants Inc., Ronald Krol, Brian Caputi, Dale M. Perry and Anthony Musilli, dated December 31, 2010. Incorporated by reference to Exhibit 10.54 as filed by the Registrant with Form 10-K for the year ended 2010.
|
||
10.49 — |
Amendment No. 3 to the Quaker Chemical Corporation 2003 Director Stock Ownership Plan (As Amended January 26, 2011). Incorporated by reference to Exhibit 10.55 as filed by the Registrant with Form 10-K for the year ended 2010.*
|
||
10.50 — |
Employment Agreement by and between Carlos Claro and Quaker Chemical Industria e Comercio Ltda., a Brazilian corporation and a subsidiary of the Registrant, dated January 5, 2011. Incorporated by reference to Exhibit 10.56 as filed by the Registrant with Form 10-K for the year ended 2010.*
|
||
10.51 — |
Employment Agreement by and between Dieter Laininger and Quaker Chemical B.V., a subsidiary of the registrant, dated June 1, 2011, effective June 15, 2011. Incorporated by reference to Exhibit 10.1 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2011. *
|
||
10.52 — |
Change in Control Agreement by and between Registrant and Dieter Laininger dated May 31, 2011, effective June 15, 2011. Incorporated by reference to Exhibit 10.1 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2011. *
|
||
10.53 — |
Global Annual and Incentive Plan (as amended and restated effective May 11, 2011). Incorporated by reference to Appendix B to the Registrant’s definitive proxy statement filed on March 31, 2011. *
|
||
10.54 — |
2011 Long-Term Performance Incentive Plan. Incorporated by reference to Appendix C to the Registrant’s definitive proxy statement filed on March 31, 2011. *
|
10.55 — |
Form of Restricted Stock Unit Agreement for executive officers and other employees under Registrant’s 2011 Long-Term Performance Incentive Plan. Incorporated by reference to Exhibit 10.1 as filed by the Registrant with Form 10-Q for the quarter ended March 31, 2012.*
|
||
10.56 — |
Memorandum of Employment by and between Registrant and Margaret M. Loebl, dated May 22, 2012, effective June 29, 2012. Incorporated by reference to Exhibit 10.1 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2012.*
|
||
10.57 — |
Change in Control Agreement by and between Registrant and Margaret M. Loebl, dated May 22, 2012, effective June 29, 2012. Incorporated by reference to Exhibit 10.2 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2012.*
|
||
10.58 — |
Amendment to Employment Agreement by and between Jan Nieman and Quaker Chemical Limited (Hong Kong) and Quaker Chemical, B.V., both subsidiaries of Registrant, dated August 2, 2012. Incorporated by reference to Exhibit 10.1 as filed by the Registrant with Form 10-Q for the quarter ended September 30, 2012.*
|
||
10.59 — | |||
21 — | |||
23 — | |||
31.1 — | |||
31.2 — | |||
32.1 — | |||
32.2 — |
101.INS —
|
XBRL Instance Document **
|
101.SCH —
|
XBRL Extension Schema Document **
|
101.CAL — |
XBRL Calculation Linkbase Document **
|
101.DEF — |
XBRL Definition Linkbase Document **
|
101.LAB — | XBRL Label Linkbase Document ** |
|
|
101.PRE —
|
XBRL Presentation Linkbase Document **
|
*
|
This exhibit is a management contract or compensation plan or arrangement required to be filed as an exhibit to this Report.
|
**
|
Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these Sections.
|
QUAKER CHEMICAL CORPORATION
|
||
Registrant
|
||
By:
|
/s/ MICHAEL F. BARRY
|
|
Michael F. Barry
Chairman of the Board, Chief Executive Officer and President
|
||
Signatures
|
Capacity |
Date
|
|||||
/s/ MICHAEL F. BARRY
|
Principal Executive Officer and
|
March 6, 2013
|
|||||
Michael F. Barry
|
Director
|
||||||
Chairman of the Board, Chief Executive Officer and President
|
|||||||
/s/ MARGARET M. LOEBL
|
Principal Financial Officer
|
March 6, 2013
|
|||||
Margaret M. Loebl
|
|||||||
Vice President, Chief Financial Officer and Treasurer
|
|||||||
/s/ GEORGE H. HILL
|
Principal Accounting Officer
|
March 6, 2013
|
|||||
George H. Hill
|
|||||||
Global Controller
|
|||||||
/s/ JOSEPH B. ANDERSON, JR.
|
Director
|
March 6, 2013
|
|||||
Joseph B. Anderson, Jr
|
|||||||
/s/ PATRICIA C. BARRON
|
Director
|
March 6, 2013
|
|||||
Patricia C. Barron
|
|||||||
/s/ DONALD R. CALDWELL
|
Director
|
March 6, 2013
|
|||||
Donald R. Caldwell
|
|||||||
/s/ ROBERT E. CHAPPELL
|
Director
|
March 6, 2013
|
|||||
Robert E. Chappell
|
|||||||
/s/ WILLIAM R. COOK
|
Director
|
March 6, 2013
|
|||||
William R. Cook
|
|||||||
/s/ EDWIN J. DELATTRE
|
Director
|
March 6, 2013
|
|||||
Edwin J. Delattre
|
|||||||
/s/ MARK A. DOUGLAS
|
Director
|
March 6, 2013
|
|||||
Mark A. Douglas
|
|||||||
/s/ JEFFRY D. FRISBY
|
Director
|
March 6, 2013
|
|||||
Jeffry D. Frisby
|
|||||||
/s/ ROBERT H. ROCK
|
Director
|
March 6, 2013
|
|||||
Robert H. Rock
|
Pension Expenses:
|
|
All pensionable amounts will remain consistent with your current agreement effective June 1, 2011. As such you will continue to be eligible to the following contributions to your pension:
|
|
1. € 1,282.40 monthly or €15.388.80 annual to be included as part of your regular monthly compensation and adjusted annually as per the German legislation for COL; 2. €16,000 to be paid at the end October as a one time payment. Both these amounts will be converted to REALS using the January 15, 2013 exchange (FX) rate.
|
Transportation:
|
Medical Coverage:
|
/s/ Dieter Laininger
|
Quaker Chemical Industria e Comercio Ltda.
|
Dieter Laininger
|
By: /s/ Julio César Teixeira Cunha
|
Date: 16.01.2013
|
Date: 01/16/2013
|
Quaker Chemical B.V.
|
|
By: /s/ E. ten Duis
|
Acknowledged and approved
|
Date: 17-01-13
|
Quaker Chemical Corporation
|
By: /s/ Ronald S. Ettinger
|
|
Date: 1/16/2013
|
Percentage of
|
||||||||
voting securities
|
||||||||
owned directly or
|
||||||||
Name
|
Jurisdiction of Incorporation
|
indirectly by Quaker
|
||||||
*
|
Quaker Chemical Corporation
|
Delaware, U.S.A.
|
100%
|
|||||
+*
|
SB Decking, Inc. (formerly Selby, Battersby & Co.)
|
Delaware, U.S.A.
|
100%
|
|||||
*
|
AC Products, Inc.
|
California, U.S.A.
|
100%
|
|||||
*
|
Epmar Corporation
|
California, U.S.A.
|
100%
|
|||||
*
|
Summit Lubricants, Inc.
|
New York, U.S.A.
|
100%
|
|||||
*
|
G.W. Smith and Sons, Inc.
|
Ohio, U.S.A
|
100%
|
|||||
*
|
Tecniquimia Mexicana S.A. de C.V.
|
Mexico
|
100%
|
|||||
+*
|
Quaker Chemical Europe B.V.
|
Holland
|
100%
|
|||||
*
|
Quaker Chemical B.V.
|
Holland
|
100%
|
|||||
+*
|
KWR Holdings B.V.
|
Holland
|
100%
|
|||||
*
|
Quaker Chemical (China) Co. Ltd.
|
China
|
100%
|
|||||
+*
|
Quaker China Holdings B.V.
|
Holland
|
100%
|
|||||
*
|
Quaker Chemical Canada Limited
|
Ontario, Canada
|
100%
|
|||||
*
|
Quaker Chemical Hungary Ltd.
|
Hungary
|
100%
|
|||||
*
|
Quaker Chemical Limited
|
United Kingdom
|
100%
|
|||||
*
|
Quaker Chemical S.A.
|
France
|
100%
|
|||||
*
|
Quaker Chemical, S.A.
|
Spain
|
100%
|
|||||
+*
|
Quaker Denmark ApS
|
Denmark
|
100%
|
|||||
*
|
Quaker Chemical S.A.
|
Argentina
|
100%
|
|||||
+*
|
Quaker Chemical Participacoes, Ltda.
|
Brazil
|
100%
|
|||||
*
|
Quaker Chemical Limited
|
Hong Kong
|
100%
|
|||||
+*
|
Quaker Chemical Holdings South Africa (Pty) Limited
|
Republic of South Africa
|
100%
|
|||||
*
|
Quaker Italia, S.r.l.
|
Italy
|
100%
|
|||||
*
|
NP Coil Dexter Industries, S.r.l.
|
Italy
|
100%
|
|||||
+*
|
Quaker Australia Holdings Pty. Limited
|
Victoria, Australia
|
100%
|
|||||
*
|
Quaker Shanghai Trading Company Limited
|
China
|
100%
|
|||||
*
|
Q2 Technologies, LLC
|
Nevada, U.S.A.
|
70%
|
|||||
*
|
Quaker Chemical Industria e Comercio Ltda.
|
Brazil
|
100%
|
|||||
*
|
Quaker Chemical Operacoes, Ltda.
|
Brazil
|
100%
|
|||||
+*
|
KWR Lubrificantes Industriais Ltda.
|
Brazil
|
100%
|
|||||
*
|
Quaker Chemical India Limited
|
India
|
55%
|
|||||
*
|
Quaker Chemical (Australasia) Pty. Limited
|
New South Wales, Australia
|
51%
|
|||||
*
|
Quaker (Thailand) Ltd
|
Thailand
|
100%
|
|||||
*
|
Quaker Chemical South Africa (Pty.) Limited
|
Republic of South Africa
|
51%
|
|||||
*
|
Quaker Chemical Corporation Mexico, S.A. de C.V.
|
Mexico
|
100%
|
|||||
*
|
Quaker Chemical HR Mexico, S.A. de C.V.
|
Mexico
|
100%
|
|||||
**
|
Nippon Quaker Chemical, Ltd.
|
Japan
|
50%
|
|||||
**
|
Kelko Quaker Chemical, S.A.
|
Venezuela
|
50%
|
|||||
**
|
Kelko Quaker Chemical, S.A.
|
Panama
|
50%
|
|||||
**
|
Primex, Ltd.
|
Barbados
|
32%
|
|||||
+
|
A non-operating company.
|
|||||||
*
|
Included in the consolidated financial statements.
|
|||||||
**
|
Accounted for in the consolidated financial statements under the equity method.
|
1.
|
I have reviewed this annual report on Form 10-K of Quaker Chemical Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ MICHAEL F. BARRY
|
Michael F. Barry
|
Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of Quaker Chemical Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ MARGARET M. LOEBL
|
Margaret M. Loebl
|
Chief Financial Officer
|
/s/ MICHAEL F. BARRY
|
Michael F. Barry
|
Chief Executive Officer of Quaker Chemical Corporation
|
/s/ MARGARET M. LOEBL
|
Margaret M. Loebl
|
Chief Financial Officer of Quaker Chemical Corporation
|
,
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Pension and Other Post Retirement Benefits (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
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Pension and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] |
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Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] |
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Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] |
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Schedule of Net Benefit Costs [Table Text Block] |
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Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] |
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Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] |
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Schedule of Assumptions Used [Table Text Block] |
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Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] |
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Schedule of Allocation of Plan Assets [Table Text Block] |
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Schedule of Level Three Defined Benefit Plan Assets Roll Forward [Table Text Block] |
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Schedule of Expected Benefit Payments [Table Text Block] |
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Goodwill Assets (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2012
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Dec. 31, 2011
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Goodwill Roll Forward | ||
Goodwill, Beginning Balance | $ 58,152 | $ 52,758 |
Goodwill, Acquired During Period | 1,786 | 8,229 |
Goodwill, Translation Adjustments | (769) | (2,835) |
Goodwill, Ending Balance | 59,169 | 58,152 |
Metalworking Process Chemicals [Member]
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Goodwill Roll Forward | ||
Goodwill, Beginning Balance | 50,071 | 44,677 |
Goodwill, Acquired During Period | 1,786 | 8,229 |
Goodwill, Translation Adjustments | (769) | (2,835) |
Goodwill, Ending Balance | 51,088 | 50,071 |
Coatings [Member]
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Goodwill Roll Forward | ||
Goodwill, Beginning Balance | 8,081 | 8,081 |
Goodwill, Acquired During Period | 0 | 0 |
Goodwill, Translation Adjustments | 0 | 0 |
Goodwill, Ending Balance | $ 8,081 | $ 8,081 |
Committments and Contingencies (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Operating Lease Maturities [Table Text Block] |
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Quarterly Results - Unaudited - Narrative (Details) (USD $)
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3 Months Ended | ||||||
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Dec. 31, 2012
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Sep. 30, 2012
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Jun. 30, 2012
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Mar. 31, 2012
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Dec. 31, 2011
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Sep. 30, 2011
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Mar. 31, 2011
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Quarterly Results (unaudited) [Abstract] | |||||||
Effect Of Uncertain Tax Position Adjustments, Earnings Per Share Diluted | $ 0.02 | $ 0.03 | $ 0.12 | $ 0.02 | $ 0.03 | $ 0.11 | |
Effect Of Customer Bankrupcties, Earnings Per Share Diluted | $ 0.06 | ||||||
Effect Of CFO Transition Costs, Earnings Per Share Diluted | $ 0.03 | ||||||
Effect Of Revaluation Gain, Earnings Per Share Diluted | $ 0.22 | ||||||
Quarterly Results Information [Line Items] | |||||||
Effect of Uncommon Charges, Earnings Per Share Diluted | $ 0.06 | $ 0.05 | |||||
Summit [Member]
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Quarterly Results Information [Line Items] | |||||||
Effect of Fair Value Adjustment to a Contingent Consideration Liability, Earnings Per Share Diluted | $ 0.09 | $ 0.03 | |||||
NPCoil Dexter [Member]
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Quarterly Results Information [Line Items] | |||||||
Effect of Fair Value Adjustment to a Contingent Consideration Liability, Earnings Per Share Diluted | $ 0.08 |
Property, Plant and Equipment - Narrative (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
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Dec. 31, 2011
|
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Capital Leased Assets Gross | $ 1,275 | $ 1,297 |
Accumulated Depreciation, Leased Assets | $ 569 | $ 766 |
Income Taxes - Narrative (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
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Undistributed Earnings of Foreign Subsidiaries | $ 150,000 |
Domestic Country [Member]
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Deferred Tax Assets, Net | 13,907 |
Foreign Tax Authority [Member]
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Operating Loss Carryforwards | 12,553 |
Operating Loss Carryforwards, Valuation Allowance | 1,443 |
Foreign Tax Authority [Member] | Expiration In Year Two [Member]
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Operating Loss Carryforwards | 23 |
Foreign Tax Authority [Member] | Expiration In Year Three [Member]
|
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Operating Loss Carryforwards | 352 |
Foreign Tax Authority [Member] | Expiration In Year Four [Member]
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Operating Loss Carryforwards | 68 |
Foreign Tax Authority [Member] | Expiration In Year Five [Member]
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Operating Loss Carryforwards | 344 |
Foreign Tax Authority [Member] | Expiration In Year Six [Member]
|
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Operating Loss Carryforwards | 247 |
Foreign Tax Authority [Member] | Expiration In Year Seven [Member]
|
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Operating Loss Carryforwards | 291 |
Foreign Tax Authority [Member] | Expiration In Year Eight [Member]
|
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Operating Loss Carryforwards | 102 |
Foreign Tax Authority [Member] | Expiration In Year Nine [Member]
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Operating Loss Carryforwards | 245 |
Foreign Tax Authority [Member] | Expiration In Year Ten [Member]
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Operating Loss Carryforwards | 258 |
Foreign Tax Authority [Member] | Expiration In Eleven Years [Member]
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Operating Loss Carryforwards | $ 183 |
Earnings Per Share - Basic (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
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Dec. 31, 2012
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Sep. 30, 2012
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Jun. 30, 2012
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Mar. 31, 2012
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Dec. 31, 2011
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Sep. 30, 2011
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Jun. 30, 2011
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Mar. 31, 2011
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Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Quaker Chemical Corporation | $ 13,007 | $ 10,925 | $ 11,108 | $ 12,365 | $ 10,370 | $ 13,942 | $ 10,554 | $ 11,026 | $ 47,405 | $ 45,892 | $ 32,120 |
Less: Income Allocated to Participating Securities | (526) | (825) | (660) | ||||||||
Net income available to common shareholders | $ 46,879 | $ 45,067 | $ 31,460 | ||||||||
Basic weighted average common shares outstanding | 12,871,703 | 12,159,958 | 11,039,410 | ||||||||
Basic earnings per common share | $ 0.99 | $ 0.84 | $ 0.86 | $ 0.96 | $ 0.80 | $ 1.09 | $ 0.86 | $ 0.96 | $ 3.64 | $ 3.71 | $ 2.85 |
Other Assets (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets, Noncurrent [Table Text Block] |
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Investment in Associated Companies (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Investments in Associated Companies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] |
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Schedule of Equity Method Investments [Table Text Block] |
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Commitments and Contingencies - Narrative (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2007
ACP [Member]
|
Dec. 31, 2012
ACP [Member]
|
Dec. 31, 2012
SB Decking [Member]
|
Dec. 31, 2012
VAT, Total [Member]
|
Dec. 31, 2010
VAT, Total [Member]
|
Dec. 31, 2010
VAT Settlement One [Member]
|
Dec. 31, 2010
VAT Settlement Two [Member]
|
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Loss Contingencies [Line Items] | |||||||||
Gain (Loss) Related To Litigation Settlement | $ 2,000 | $ 4,132 | $ 3,901 | $ 231 | |||||
Loss Contingency Range Of Possible Loss Minimum | 700 | 0 | |||||||
Loss Contingency Range Of Possible Loss Maximum | 1,200 | 12,000 | |||||||
P-2 well operation range estimate | another one and one-half to three years | ||||||||
P-3 well operation range estimate | half a year | ||||||||
Unrelated Environmental Liability Accruals | 230 | 493 | |||||||
Loss Contingency, Estimate of Possible Loss | $ 3,300 | ||||||||
Loss Contingency, Settlement Agreement, Terms | Previously, an inactive subsidiary of the Company executed separate settlement and release agreements with two of its insurance carriers for $35,000, of which $26,398 remains. Part of the agreements were payable in four annual installments of $5,000, the final of which was received in the first quarter of 2010. The proceeds of both settlements are restricted and can only be used to pay claims and costs of defense associated with the subsidiary’s asbestos litigation. | In response, two of the three carriers entered into separate settlement and release agreements with the subsidiary in late 2005 and early 2007 for $15,000 and $20,000, respectively. The proceeds of both settlements are restricted and can only be used to pay claims and costs of defense associated with the subsidiary’s asbestos litigation. During the third quarter of 2007, the subsidiary and the remaining primary insurance carrier entered into a Claim Handling and Funding Agreement, under which the carrier will pay 27% of defense and indemnity costs incurred by or on behalf of the subsidiary in connection with asbestos bodily injury claims for a minimum of five years beginning July 1, 2007. The agreement continues until terminated and can only be terminated by either party by providing the other party with a minimum of two years prior written notice. As of December 31, 2012, no notice of termination has been given under this agreement. At the end of the term of the agreement, the subsidiary may choose to again pursue its claim against this insurer regarding the application of the policy limits. | |||||||
Percentage of potential exposure represented by one jurisdiction | 82.00% |
Income Taxes - Components of Expense and Earnings (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Current Income Tax Expense (Benefit) [Abstract] | |||
Federal | $ 3,318 | $ 3,485 | $ 1,429 |
State | (69) | 385 | 195 |
Foreign | 9,972 | 7,955 | 9,143 |
Current Income Tax Expense (Benefit), Total | 13,221 | 11,825 | 10,767 |
Deferred Income Tax Expense (Benefit) [Abstract] | |||
Federal | 4,409 | 2,022 | 1,204 |
State | (794) | 0 | 0 |
Foreign | (1,261) | 409 | 645 |
Income Tax Expense (Benefit), Total | 15,575 | 14,256 | 12,616 |
Components Of Earnings Before Taxes [Abstract] | |||
Domestic | 26,520 | 24,071 | 9,482 |
Foreign | 36,428 | 35,306 | 36,731 |
Income before taxes and equity in net income of associated companies | $ 62,948 | $ 59,377 | $ 46,213 |
Segments Geographic Information (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
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North America [Member]
|
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Revenues From External Customers And Long Lived Assets Line Items | |||
Revenues | $ 310,127 | $ 268,519 | $ 190,623 |
Long-Lived Assets | 88,857 | 90,800 | 85,821 |
Europe [Member]
|
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Revenues From External Customers And Long Lived Assets Line Items | |||
Revenues | 169,323 | 178,695 | 148,426 |
Long-Lived Assets | 22,299 | 19,215 | 24,793 |
Asia/Pacific [Member]
|
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Revenues From External Customers And Long Lived Assets Line Items | |||
Revenues | 157,062 | 151,468 | 125,189 |
Long-Lived Assets | 19,720 | 15,225 | 14,099 |
South America [Member]
|
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Revenues From External Customers And Long Lived Assets Line Items | |||
Revenues | 66,238 | 79,181 | 75,169 |
Long-Lived Assets | 5,276 | 6,577 | 6,998 |
South Africa [Member]
|
|||
Revenues From External Customers And Long Lived Assets Line Items | |||
Revenues | 5,476 | 5,368 | 4,656 |
Long-Lived Assets | 21 | 28 | 41 |
Total [Member]
|
|||
Revenues From External Customers And Long Lived Assets Line Items | |||
Revenues | 708,226 | 683,231 | 544,063 |
Long-Lived Assets | $ 136,173 | $ 131,845 | $ 131,752 |
Income Taxes - Net Deferred Balances (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Taxes on Income and Uncertain Tax Positions [Abstract] | ||
Current deferred tax assets | $ 6,401 | $ 6,338 |
Deferred Tax Assets Net Noncurrent | 30,673 | 29,823 |
Current deferred tax liabilities | 253 | 238 |
Non-current deferred tax liabilities | 6,383 | 7,094 |
Deferred Tax Assets, Net, Total | $ 30,438 | $ 28,829 |
Income Taxes - Rate Reconciliation (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Income Tax Provision at the Federal Statutory Tax Rate | $ 22,032 | $ 20,782 | $ 16,175 |
Differences in Tax Rates on Foreign Earnings and Remittances | (3,207) | (3,692) | (2,546) |
Foreign Dividends | 815 | 735 | 15,645 |
Excess Foreign Tax Credit Utilization | (2,237) | (2,493) | (15,198) |
Research and Development Activities Credit Utilization | 0 | (1,348) | 0 |
Uncertain Tax Positions | (1,196) | 701 | (1,130) |
Domestic Production Activities Deduction | (402) | 0 | (932) |
State Income Tax Provisions, Net | (45) | 250 | 127 |
Non-deductible Entertainment and Business Meals Expense | 200 | 166 | 152 |
Non-taxable Gain on Acquisition | 0 | (951) | 0 |
Miscellaneous Items, Net | (385) | 106 | 323 |
Income Tax Expense (Benefit), Total | $ 15,575 | $ 14,256 | $ 12,616 |
Property, Plant and Equipment - Capital Leases (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
---|---|
Capital Leases Future Minimum Payments Present Value Of Net Minimum Payments Abstract | |
Capital Leases Future Minimum Payments, Due Current | $ 291 |
Capital Leases Future Minimum Payments, Due In Two Years | 147 |
Capital Leases Future Minimum Payments, Due In Three Years | 99 |
Capital Leases Future Minimum Payments, Due In Four Years | 65 |
Capital Leases Future Minimum Payments, Due In Five Years | 58 |
Capital Leases Future Minimum Payments, Due Thereafter | 0 |
Capital Leases, Future Minimum Payments Due, Total | 660 |
Less: Amount Representing Interest | (48) |
Present Value of Net Minimum Lease Payments | $ 612 |
Goodwill and Intangible Assets
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Text Block] | Note 17 – Goodwill and Other Intangible Assets The Company completed its annual impairment assessment as of the end of the third quarter of 2012 and no impairment charge was warranted. The Company has recorded no impairment charges in the past. Changes in the carrying amount of goodwill for the years ended December 31, 2012 and December 31, 2011 were as follows:
Gross carrying amounts and accumulated amortization for definite-lived intangible assets as of December 31, 2012 and December 31, 2011 were as follows:
The Company recorded $3,106, $2,338 and $988 of amortization expense in 2012, 2011 and 2010, respectively. Estimated annual aggregate amortization expense for the subsequent five years is as follows:
The Company has two indefinite-lived intangible assets totaling $1,100 for trademarks at December 31, 2012 and December 31, 2011. |
Earnings Per Share (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
|
Income Taxes - Valuation Allowance Rollforward (Details) (Valuation Allowance of Deferred Tax Assets [Member], USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Valuation Allowance of Deferred Tax Assets [Member]
|
|||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances, Beginning Balance | $ 1,377 | $ 4,923 | $ 5,666 |
Additional Valuation Allowance | 6,594 | 348 | 38 |
Allowance Utilization and Other | (34) | (3,753) | (769) |
Effect of Exchange Rate Changes | (79) | (141) | (12) |
Valuation Allowance, Ending Balance | $ 7,858 | $ 1,377 | $ 4,923 |
Property, Plant and Equipment (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
|
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Leases, Capital [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] |
|
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] |
|
Significant Accounting Policies - Intangible Assets (Details)
|
12 Months Ended |
---|---|
Dec. 31, 2012
|
|
Maximum [Member]
|
|
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Minimum [Member]
|
|
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Other Current Liabilities (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Other Current Liabilities [Abstract] | ||
Non-income Taxes | $ 6,364 | $ 5,683 |
Present Value of Acquisition-related Liabilities | 0 | 2,779 |
Professional Fees | 2,083 | 2,279 |
Selling Expenses | 2,205 | 1,858 |
Legal | 1,018 | 1,420 |
Freight | 1,120 | 1,212 |
Current Portion of Interest Rate Swaps | 0 | 418 |
Other Accrued Liabilities, Current | 3,457 | 2,976 |
Accrued Liabilities, Current, Total | $ 16,247 | $ 18,625 |
Business Acquisitions - Narrative (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2011
|
Dec. 31, 2012
TQM [Member]
|
Dec. 31, 2011
TQM [Member]
|
Dec. 31, 2011
TQM [Member]
Customer Lists [Member]
|
Dec. 31, 2011
TQM [Member]
Trade Names [Member]
|
Dec. 31, 2012
GW Smith [Member]
|
Dec. 31, 2011
GW Smith [Member]
|
Dec. 31, 2011
GW Smith [Member]
Customer Lists [Member]
|
Dec. 31, 2011
GW Smith [Member]
Noncompete Agreements [Member]
|
Dec. 31, 2011
GW Smith [Member]
Trademarks [Member]
|
Dec. 31, 2011
GW Smith [Member]
Trade Names [Member]
|
Dec. 31, 2012
Summit [Member]
|
Dec. 31, 2011
Summit [Member]
|
Dec. 31, 2010
Summit [Member]
|
Dec. 31, 2010
Summit [Member]
Customer Lists [Member]
|
Dec. 31, 2010
Summit [Member]
Noncompete Agreements [Member]
|
Dec. 31, 2010
Summit [Member]
Other Intangible Assets [Member]
|
Dec. 31, 2012
NPCoil Dexter [Member]
|
Dec. 31, 2012
NPCoil Dexter [Member]
Customer Lists [Member]
|
Dec. 31, 2012
NPCoil Dexter [Member]
Customer Relationships [Member]
|
Dec. 31, 2012
NPCoil Dexter [Member]
Noncompete Agreements [Member]
|
Dec. 31, 2012
NPCoil Dexter [Member]
Trademarks [Member]
|
|
Business Acquisition [Line Items] | ||||||||||||||||||||||
Cash Paid for Acquisition | $ 25,018 | $ 10,500 | $ 14,518 | $ 29,116 | $ 2,748 | |||||||||||||||||
Short-term Debt | (1,186) | |||||||||||||||||||||
Long-term Debt | (854) | |||||||||||||||||||||
Goodwill | 7,893 | 6,773 | 1,120 | 3,423 | 1,786 | |||||||||||||||||
Intangibles | 9,816 | 3,556 | 6,260 | 17,100 | 3,825 | |||||||||||||||||
Intangible Assets, Amortizable Life | 20 years | 5 years | 16 years | 5 years | 5 years | 15 years | 20 years | 5 years | 15 years | 8 years | 4 years | 5 years | 10 years | |||||||||
Percentage of Voting Interests Acquired | 60.00% | |||||||||||||||||||||
Post Closing Adjustment | 717 | |||||||||||||||||||||
Contingent Consideration Paid | 2,000 | 1,000 | ||||||||||||||||||||
Gain on Revaluation of Existing Equity Interest in Step Purchase | 2,718 | |||||||||||||||||||||
Cash Acquired | 236 | 22 | 113 | |||||||||||||||||||
Change in Fair Value Estimate | $ 1,737 | $ 595 | $ 1,033 |
Investments in Associated Companies - Narrative (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2012
Nippon Quaker (Japan) [Member]
|
Dec. 31, 2013
Kelko (Venezuela) [Member]
|
Dec. 31, 2012
Kelko (Venezuela) [Member]
|
Dec. 31, 2012
Kelko (Panama) [Member]
|
Dec. 31, 2011
TQM (Mexico) [Member]
|
Dec. 31, 2013
Primex (Barbados) [Member]
|
Dec. 31, 2012
Primex (Barbados) [Member]
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Schedule Of Equity Method Investments Line Items | ||||||||||||||||||
Equity Method Investment Ownership Percentage | 50.00% | 50.00% | 50.00% | 32.00% | ||||||||||||||
Change in Accounting Principle, Description | In 1986, the market for general liability insurance became highly volatile and there was limited product liability insurance for chemical companies to purchase. In response, the Company joined together with fifteen other chemical companies, each putting forward $0.5 million as capital, to form a captive insurance company, Primex, Ltd. (“Primex”). Primex was incorporated in Barbados and operates under the provisions of the Exempt Insurance Act of 1983, and provides excess liability insurance coverage only to its shareholders who are in chemical and chemical related manufacturing industries. Primex utilizes leading service providers for insurance, actuarial, accounting and legal services. Since 1986, many of the original investors have exited Primex, either through acquisitions or divestitures. To date, companies that have ceased to purchase insurance from Primex have sold their share shares back to Primex. Each current shareholder has one representative on Primex’s board of directors, each having an equal vote on operational and financial matters. As a result of one of those shareholders exiting Primex in 2012, the Company reassessed its ability to significantly influence the operating and financial policies of Primex. Based on its ownership percentage and other factors, the Company determined that during 2012 the Company obtained the ability to significantly influence Primex and, as a result, needed to change its method of accounting for Primex from the cost method to the equity method. In accordance with the guidance of the FASB, the equity method of accounting must be applied on a retrospective basis, and all periods presented must be recast to reflect the change in the method of accounting. Consequently, the Company has recast its Consolidated Balance Sheet as of December 31, 2011, the Consolidated Statements of Income, Other Comprehensive Income and Cash Flows for the years ending December 31, 2010 and December 31, 2011 and the Consolidated Statement of Changes in Equity for the years ending December 31, 2009, December 31, 2010 and December 31, 2011 and the Notes to Consolidated Financial Statements. The change in the method of accounting results in an increase of previously reported net income and earnings per share for the years ending December 31, 2011 and December 31, 2010 of $2,323, or $0.19 per diluted share ,and $313, or $0.03 per diluted share, respectively. | |||||||||||||||||
Impact of Change in Accounting Method on Net Income | $ 439 | $ 568 | $ 419 | $ 600 | $ 584 | $ 713 | $ 426 | $ 2,323 | $ 313 | |||||||||
Impact of Change in Accounting Method on Earnings Per Share, Diluted | $ 0.03 | $ 0.04 | $ 0.04 | $ 0.05 | $ 0.04 | $ 0.06 | $ 0.03 | $ 0.19 | $ 0.03 | |||||||||
Percentage of Voting Interests Acquired | 60.00% | |||||||||||||||||
Inflationary Percentage | 100.00% | 100.00% | ||||||||||||||||
Effect Of Currency Devaluation Per Diluted Share | $ 0.03 | |||||||||||||||||
Description Of Foreign Currency Devaluation Effects | On February 9, 2013, the Venezuelan Government announced a further devaluation of the Bolivar Fuerte. Accordingly, the Company currently estimates that it will record a charge of approximately $0.03 per diluted share during the first quarter of 2013. | |||||||||||||||||
Immaterial Error Correction | During the fourth quarter of 2010, the Company identified errors in reserves for pension and certain other items at its Tecniquimia Mexicana, S.A. de C.V. affiliate. The affiliate adjusted for these items in the fourth quarter of 2010, which had the effect of reducing equity in net income of associated companies and net income by $564 in the fourth quarter and year-to-date periods of 2010. The Company believes this adjustment was not material to its Consolidated Financial Statements for the years ended December 31, 2007, December 31, 2008, December 31, 2009 or December 31, 2010 and, therefore, did not restate any prior period amounts. | |||||||||||||||||
Amount of Immaterial Misstatement | 564 | 564 | ||||||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 2,000 |
Other Non-Current Liabilities (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Other Liabilities Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets and Other Liabilities [Table Text Block] |
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Significant Accounting Policies
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12 Months Ended | ||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] | Note 1 – Significant Accounting Policies Principles of consolidation: All majority-owned subsidiaries are included in the Company's consolidated financial statements, with appropriate elimination of intercompany balances and transactions. Investments in associated companies (less than majority-owned and in which the Company has significant influence) are accounted for under the equity method. The Company's share of net income or losses in these investments in associated companies is included in the Consolidated Statement of Income. The Company periodically reviews these investments for impairments and, if necessary, would adjust these investments to their fair value when a decline in market value or other impairment indicators are deemed to be other than temporary. As described in Note 4 of Notes to Consolidated Financial Statements, during 2012 the Company acquired an increased ownership percentage in Primex, Ltd. (“Primex”), a captive insurance company. Due to the increased ownership percentage and other factors, the Company changed its method of accounting for its investment in Primex from the cost method to the equity method of accounting. As a result, the Company recast its Consolidated Balance Sheet as of December 31, 2011, the Consolidated Statements of Income, Other Comprehensive Income and Cash Flows for the years ending December 31, 2010 and December 31, 2011 and the Consolidated Statement of Changes in Equity for the years ending December 31, 2009, December 31, 2010 and December 31, 2011 and the Notes to Consolidated Financial Statements to reflect the change in method of accounting. See also Note 4 to Notes to Consolidated Financial Statements. The Financial Accounting Standards Board's (“FASB's”) guidance regarding the consolidation of certain Variable Interest Entities (“VIEs”) generally requires that assets, liabilities and results of the activities of a VIE be consolidated into the financial statements of the enterprise that is considered the primary beneficiary. The consolidated financial statements include the accounts of the Company and all of its subsidiaries in which a controlling interest is maintained and would include any VIEs if the Company was the primary beneficiary pursuant to the provisions of the applicable guidance. Translation of foreign currency: Assets and liabilities of non-U.S. subsidiaries and associated companies are translated into U.S. Dollars at the respective rates of exchange prevailing at the end of the year. Income and expense accounts are translated at average exchange rates prevailing during the year. Translation adjustments resulting from this process are recorded directly in equity as accumulated other comprehensive income (loss) and will be included as income or expense only upon sale or liquidation of the underlying investment. All non-U.S. subsidiaries use their local currency as their functional currency. Cash and cash equivalents: The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Inventories: Inventories are valued at the lower of cost or market value, and are valued using the first-in, first-out (“FIFO”) method. See also Note 6 of Notes to Consolidated Financial Statements. Long-lived assets: Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method on an individual asset basis over the following estimated useful lives: buildings and improvements, 10 to 45 years; and machinery and equipment, 1 to 15 years. The carrying value of long-lived assets is periodically evaluated whenever changes in circumstances or current events indicate the carrying amount of such assets may not be recoverable. An estimate of undiscounted cash flows produced by the asset, or the appropriate group of assets, is compared with the carrying value to determine whether impairment exists. If necessary, the Company recognizes an impairment loss for the difference between the carrying amount of the assets and their estimated fair value. Fair value is based on current and anticipated future undiscounted cash flows. Upon sale or other dispositions of long-lived assets, the applicable amounts of asset cost and accumulated depreciation are removed from the accounts and the net amount, less proceeds from disposals, is recorded in income. Expenditures for renewals or improvements that increase the estimated useful life or capacity of the assets are capitalized, whereas expenditures for repairs and maintenance are expensed when incurred. Capitalized software: The Company capitalizes certain costs incurred in connection with developing or obtaining software for internal use. In connection with the upgrade and implementations of the Company's global transaction and consolidation systems, approximately $2,395 and $2,800 of net costs were capitalized at December 31, 2012 and December 31, 2011, respectively. These costs are amortized over a period of three to five years once the assets are ready for their intended use. Goodwill and other intangible assets: The Company records goodwill, definite-lived intangible assets and indefinite-lived intangible assets at fair value at acquisition. Goodwill and indefinite-lived intangible assets are not amortized, but tested for impairment at least annually. These tests will be performed more frequently if triggering events indicate potential impairment. Definite-lived intangible assets are amortized over their estimated useful lives, generally for periods ranging from 5 to 20 years. The Company continually evaluates the reasonableness of the useful lives of these assets. See Note 17 of Notes to Consolidated Financial Statements. Revenue recognition: The Company recognizes revenue in accordance with the terms of the underlying agreements, when title and risk of loss have been transferred, when collectability is reasonably assured, and when pricing is fixed or determinable. This generally occurs when products are shipped to customers or, for consignment-type arrangements, upon usage by the customer and when services are performed. License fees and royalties are included in other income when recognized in accordance with their agreed-upon terms, when performance obligations are satisfied, when the amount is fixed or determinable, and when collectability is reasonably assured. As part of the Company's chemical management services, certain third-party product sales to customers are managed by the Company. Where the Company acts as a principal, revenues are recognized on a gross reporting basis at the selling price negotiated with customers. Where the Company acts as an agent, such revenue is recorded using net reporting as service revenue at the amount of the administrative fee earned by the Company for ordering the goods. Third-party products transferred under arrangements resulting in net reporting totaled $39,299, $50,893 and $56,528 for 2012, 2011 and 2010, respectively. Accounts receivable and allowance for doubtful accounts: Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses with its existing accounts receivable. Reserves for customers filing for bankruptcy protection are generally established at 75-100% of the amount owed at the filing date, dependent on the Company's evaluation of likely proceeds from the bankruptcy process. Large and/or financially distressed customers are generally reserved for on a specific review basis while a general reserve is established for other customers based on historical experience. The Company performs a formal review of its allowance for doubtful accounts quarterly. Account balances are charged off against the allowance when the Company feels it is probable the receivable will not be recovered. The Company does not have any off-balance-sheet credit exposure related to its customers. During 2012, the Company's five largest customers accounted for approximately 19% of its consolidated net sales with the largest customer (Arcelor-Mittal Group) accounting for approximately 9% of consolidated net sales. During 2012, the Company recorded charges of $1,254 to its allowance for doubtful accounts and selling, general and administrative expenses due to the bankruptcies of two U.S. customers. See Note 5 of Notes to Consolidated Financial Statements. Research and development costs: Research and development costs are expensed as incurred. Research and development expenses are included in selling, general and administrative expenses and were $19,993, $18,812 and $15,690 in 2012, 2011 and 2010, respectively. Concentration of credit risk: Financial instruments, which potentially subject the Company to a concentration of credit risk, principally consist of cash equivalents, short-term investments and trade receivables. The Company invests temporary and excess funds in money market securities and financial instruments having maturities typically within 90 days. The Company has not experienced losses from the aforementioned investments. Environmental liabilities and expenditures: Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. If there is a range of estimated liability and no amount in that range is considered more probable than another, then the Company records the lowest amount in the range in accordance with generally accepted accounting principles. Accrued liabilities are exclusive of claims against third parties and are not discounted. Environmental costs and remediation costs are capitalized if the costs extend the life, increase the capacity or improve safety or efficiency of the property from the date acquired or constructed, and/or mitigate or prevent contamination in the future. Asset retirement obligations: The Company follows the FASB's guidance regarding asset retirement obligations, which addresses the accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated retirement costs. Also, the Company follows the FASB's guidance for conditional asset retirement obligations (“CARO”), which relates to legal obligations to perform an asset retirement activity in which the timing and (or) method of settlement are conditional on a future event that may or may not be within the control of the entity. In accordance with this guidance, the Company records a liability when there is enough information regarding the timing of the CARO to perform a probability-weighted discounted cash flow analysis. See Note 9 of Notes to Consolidated Financial Statements. Pension and other postretirement benefits: The Company maintains various noncontributory retirement plans, the largest of which is in the U.S., covering substantially all of its employees in the U.S. and certain other countries. The plans of the Company's subsidiaries in The Netherlands, the United Kingdom and Mexico are subject to the provisions of FASB's guidance regarding employers' accounting for pension plans. The plans of the remaining non-U.S. subsidiaries are, for the most part, either fully insured or integrated with the local governments' plans and are not subject to the provisions of the guidance. The guidance requires that employers recognize on a prospective basis the funded status of their defined benefit pension and other postretirement plans on their consolidated balance sheet, and, also, recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit cost. The Company's U.S. pension plan year ends on November 30 and the measurement date is December 31. The measurement date for the Company's other postretirement benefits plan is December 31. See Note 11 of Notes to Consolidated Financial Statements. Comprehensive income (loss): The Company presents other comprehensive loss in its Statement of Comprehensive Income. The components of accumulated other comprehensive loss at December 31, 2012 include: accumulated foreign currency translation adjustments of $3,336, minimum pension liability of ($46,914), unrealized holding gains on available-for-sale securities of $1,723. The components of accumulated other comprehensive loss at December 31, 2011 include: accumulated foreign currency translation adjustments of $4,709, minimum pension liability of ($34,260), unrealized holding gains on available-for-sale securities of $857, and the fair value of derivative instruments of ($272). The items in other comprehensive loss in the Statement of Consolidated Comprehensive Income are net of tax benefits related to defined benefit retirement plans of $4,310, $2,223 and $1,342 for 2012, 2011 and 2010, respectively. Additionally, the items in other comprehensive loss in the Statement of Consolidated Comprehensive Income are net of tax benefits related to changes in the fair value of derivatives of $146, $213 and $381 for 2012, 2011 and 2010, respectively. Also, the items in other comprehensive loss in the Statement of Comprehensive Income are net of tax benefits (expense) related to changes in unrealized holding gains (losses) on available-for-sale securities of $446, ($71) and $128 for 2012, 2011 and 2010, respectively. Income taxes and uncertain tax positions: The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year and the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax bases of the Company's assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The FASB's guidance regarding accounting for uncertainty in income taxes prescribes the recognition threshold and measurement attributes for financial statement recognition and measurement of tax positions taken or expected to be taken on a tax return. The guidance further requires the determination of whether the benefits of tax positions will be more likely than not sustained upon audit based upon the technical merits of the tax position. For tax positions that are determined to be more likely than not sustained upon audit, a company recognizes the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement in the financial statements. For tax positions that are not determined to be more likely than not sustained upon audit, a company does not recognize any portion of the benefit in the financial statements. Additionally, the guidance provides for derecognition, classification, penalties and interest, accounting in interim periods, disclosure and transition. The guidance also requires that the amount of interest expense and income to be recognized related to uncertain tax positions be computed by applying the applicable statutory rate of interest to the difference between the tax position recognized, including timing differences, and the amount previously taken or expected to be taken in a tax return. The Company's continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. See Note 10 of Notes to Consolidated Financial Statements. Derivatives: The Company is exposed to the impact of changes in interest rates, foreign currency fluctuations, changes in commodity prices and credit risk. The Company does not use derivative instruments to mitigate the risks associated with foreign currency fluctuations, changes in commodity prices or credit risk, but has used derivative financial instruments primarily for purposes of hedging exposures to fluctuations in interest rates. The Company recognizes all derivatives on its balance sheet at fair value. For derivative instruments designated as cash flow hedges, the effective portion of any hedge is reported in Accumulated Other Comprehensive Income (Loss) until it is cleared to earnings during the same period in which the hedged item affects earnings. The Company uses no derivative instruments designated as fair value hedges. The Company does not enter into derivative contracts for trading or speculative purposes. See Note 3 of Notes to Consolidated Financial Statements. Fair value measurements: The Company utilizes the FASB's guidance regarding fair value measurements, which establishes a common definition for fair value to be applied to guidance requiring use of fair value, establishes a framework for measuring fair value and expands disclosure about such fair value measurements. Specifically, the guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:
Stock-based compensation: The Company applies the FASB's guidance regarding share-based payments, which requires the recognition of the fair value of stock compensation in net income. The Company elected the modified prospective method in adopting the guidance. Under this method, the provisions of the guidance apply to all awards granted or modified after the date of adoption. In addition, the unrecognized expense of awards not yet vested at the date of adoption is recognized in net income in the periods after the date of adoption using the same valuation method (e.g. Black-Scholes) and assumptions determined under the original provisions of the guidance as disclosed in the Company's previous filings. The Company has a long-term incentive program (“LTIP”) for key employees which provides for the granting of options to purchase stock at prices not less than market value on the date of the grant. Most options become exercisable between one and three years after the date of the grant for a period of time determined by the Company, but not to exceed seven years from the date of grant. Common stock awards issued under the LTIP program are subject only to time vesting over a three to five-year period. In addition, as part of the Company's Global Annual Incentive Plan (“GAIP”), nonvested shares may be issued to key employees, which generally vest over a two to five-year period. Based on historical experience, the Company has assumed a forfeiture rate of 13% on the nonvested stock. The Company will record additional expense if the actual forfeiture rate is lower than estimated, and will record a recovery of prior expense if the actual forfeiture is higher than estimated. See Note 13 of Notes to Consolidated Financial Statements. Earnings per share: The Company follows FASB's guidance regarding the calculation of earnings per share (“EPS”) for nonvested stock awards with rights to non-forfeitable dividends. The guidance requires nonvested stock awards with rights to non-forfeitable dividends to be included as part of the basic weighted average share calculation under the two-class method. See Note 14 of Notes to Consolidated Financial Statements. Segments: The Company organizes its segments by the nature of the product sold. The Company's reportable segments are as follows:
Segment data includes direct segment costs, as well as general operating costs. Any inter-segment transactions are immaterial for each period presented. See Note 15 of Notes to Consolidated Financial Statements. Recently issued accounting standards: The FASB updated its guidance in July 2012 regarding indefinite-lived intangible asset impairment testing. The updated guidance permits a Company to first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying value. If the Company determines that the fair value is more likely than not above its carrying value, no further impairment testing is required. However, if the Company concludes otherwise, then the first step of the traditional two-step impairment test is required to be performed. The guidance is effective for annual and interim fiscal periods beginning after September 15, 2012, with early adoption permitted if an entity's financial statements have not been issued as of the date of the entity's interim or annual impairment test. The Company elected to test its indefinite-lived intangible assets for impairment under the traditional two-step method during the current year but is currently evaluating the effect of this guidance for future applicability. The FASB updated its guidance in December 2011 regarding disclosures pertaining to the netting and offsetting of derivatives and financial instruments on an entity's Consolidated Balance Sheet. Disclosures required under the updated guidance include presenting gross amounts of assets and liabilities related to financial instruments that may have been historically offset on the Consolidated Balance Sheet. The guidance is effective for annual and interim fiscal periods beginning on or after January 1, 2013. The Company is currently evaluating the effect of this guidance. Reclassifications: During 2012, the Company adopted the FASB's guidance regarding presentation of comprehensive income. The guidance requires that comprehensive income be presented with the Consolidated Statement of Income or as a separate statement immediately following the Consolidated Statement of Income, and can no longer be presented as part of the Consolidated Statement of Changes in Equity. The Company adopted the guidance using the two statement approach. The guidance required retrospective application, so the prior periods' presentation of comprehensive income has been conformed to the current year presentation. In addition, certain other information has been reclassified to conform to the current year presentation. Accounting estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingencies at the date of the financial statements and the reported amounts of net sales and expenses during the reporting period. Actual results could differ from such estimates. |
Other Assets - Narrative (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
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Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Other Assets [Abstract] | |||
Loss Contingency, Settlement Agreement, Terms | Previously, an inactive subsidiary of the Company executed separate settlement and release agreements with two of its insurance carriers for $35,000, of which $26,398 remains. Part of the agreements were payable in four annual installments of $5,000, the final of which was received in the first quarter of 2010. The proceeds of both settlements are restricted and can only be used to pay claims and costs of defense associated with the subsidiary’s asbestos litigation. | ||
Interest Earned, Restricted Cash | $ 69 | $ 80 | |
Payments Made, Restricted Cash | $ (1,391) | $ (1,840) | $ (1,640) |
Investments in Associated Companies - Effect of Change in Accounting Principle (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||
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Sep. 30, 2012
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Jun. 30, 2012
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Mar. 31, 2012
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Dec. 31, 2011
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Sep. 30, 2011
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Jun. 30, 2011
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Mar. 31, 2011
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Dec. 31, 2011
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Dec. 31, 2010
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Income Statement [Abstract] | |||||||||
Effect of Change in Accounting Principle on Equity in Net Income of Associated Companies | $ 439 | $ 568 | $ 419 | $ 600 | $ 584 | $ 713 | $ 426 | $ 2,323 | $ 313 |
Impact of Change in Accounting Method on Net Income | 439 | 568 | 419 | 600 | 584 | 713 | 426 | 2,323 | 313 |
Impact of Change in Accounting Method on Earnings Per Share, Diluted | $ 0.03 | $ 0.04 | $ 0.04 | $ 0.05 | $ 0.04 | $ 0.06 | $ 0.03 | $ 0.19 | $ 0.03 |
Statement Of Financial Position [Abstract] | |||||||||
Effect of Change in Accounting Principle on Investments in Associated Companies | 8,685 | 7,819 | 7,620 | 6,131 | 4,919 | 5,248 | 4,486 | 6,131 | 3,938 |
Effect of Change in Accounting Principle on Other Assets | (500) | (500) | (500) | (500) | (500) | (500) | (500) | (500) | (500) |
Effect of Change in Accounting Principle on Total Assets | 8,185 | 7,319 | 7,120 | 5,631 | 4,419 | 4,748 | 3,986 | 5,631 | 3,438 |
Equity [Abstract] | |||||||||
Effect of Change in Accounting Principle on Retained Earnings | 6,204 | 5,765 | 5,197 | 4,778 | 4,178 | 3,594 | 2,881 | 4,778 | 2,455 |
Effect of Change in Accounting Principle on Accumulated Other Comprehensive Loss | 1,981 | 1,554 | 1,923 | 853 | 241 | 1,154 | 1,105 | 853 | 983 |
Effect of Change in Accounting Principle on Total Equity | $ 8,185 | $ 7,319 | $ 7,120 | $ 5,631 | $ 4,419 | $ 4,748 | $ 3,986 | $ 5,631 | $ 3,438 |