Investments in Associated Companies

12 Months Ended

Dec. 31, 2013

Investments in Associated Companies [Abstract]

Investments in Associated Companies [Text Block]

Note 12 – Investments in Associated Companies

As of December 31, 2013, the Company held a 50% investment in and had significant influence over Kelko Quaker Chemical, S.A.(Venezuela), Nippon Quaker Chemical, Ltd. (Japan) and Kelko Quaker Chemical S.A. (Panama) and held a 33% investment in and had significant influence over Primex, Ltd. (Barbados).

During the first quarter of 2013, the Company identified errors in Primex's estimated 2012 financial statements, which primarily related to a reinsurance contract held by Primex. The identified errors resulted in a cumulative $1,038 understatement of the Company's equity in net income from associated companies for the year ended December 31, 2012, which were corrected in the first quarter of 2013. See Note 2 of Notes to Consolidated Financial Statements for further information.

Venezuela's economy is considered to be hyper inflationary under generally accepted accounting principles in the United States. Accordingly, all gains and losses resulting from the remeasurement of the Company's Venezuelan equity affiliate (Kelko Quaker Chemical, S.A.) are required to be recorded directly to the Consolidated Statement of Income. In February2013, the Venezuelan Government announced a devaluation of the Bolivar Fuerte. Accordingly, the Company recorded a charge of approximately $357, or $0.03 per diluted share,in equity in net income of associated companies during the first quarter of 2013.

In 2011, the Company purchased the remaining 60% ownership interest in Tecniquimia Mexicana, S.A. de C.V., the Company's Mexican equity affiliate. As a result of the purchase, the Company only included six months of the affiliate's 2011 results in its investments in associated companies, with the remaining six months after acquisition being reflected as a wholly owned subsidiary in the Company's Consolidated Financial Statements.

The carrying amount of the Company's equity investments at December 31, 2013was $19,397, which included investments of$12,094 in Primex, Ltd. (Barbados), assigned to the Company's North American segment;$5,267, in Nippon Quaker Chemical, Ltd. (Japan),assigned to the Company's Asia/Pacific segment;$1,652 in Kelko Quaker Chemical, S.A. (Venezuela), assigned to the Company's South American segment; and $384, in Kelko Quaker Chemical, S.A. (Panama), assigned to the Company's South American segment.

Summarized financial information of Kelko Quaker Chemical, S.A.(Venezuela), Nippon Quaker Chemical, Ltd. (Japan) and Kelko Quaker Chemical S.A. (Panama), in the aggregate, is as follows:

		December 31,
		2013		2012
Current Assets	$	28,363	$	28,602
Noncurrent Assets		717		2,402
Current Liabilities		13,974		15,158
Noncurrent Liabilities		501		248

		Year Ended December 31,
		2013		2012		2011
Net Sales	$	47,226	$	55,963	$	66,925
Gross Margin		16,096		18,480		22,092
Income Before Income Taxes		3,687		3,170		3,788
Net Income		2,142		2,118		1,696

Summarized financial information of Primex, Ltd. is as follows:

		December 31,
		2013		2012
Total Assets	$	106,450	$	130,816
Total Liabilities		63,938		97,754

		Year Ended December 31,
		2013		2012		2011
Revenue	$	20,895	$	8,473	$	11,523
Income Before Income Taxes		25,625		8,901		14,837
Net Income		16,876		6,031		9,941

As noted above, the Company identified errors in Primex's estimated 2012 financial statementsduring the first quarter of 2013, which were corrected in the first quarter of 2013. The identified errors resulted in increases to Primex's revenue of $4,905, income before taxes of $5,240 and net income of $3,422, which are included in the 2013 summarized financial information forPrimex above.

During the first quarter of 2013, the Company received its first dividend distribution from Primex, Ltd. of approximately $2,000, which was accounted for as a reduction of the Company's investment balance in this associated company.