Investments in Associated Companies

12 Months Ended

Dec. 31, 2019

Investments in Associated Companies [Abstract]

Investments in Associated Companies [Text Block]

Note 17 – Investments in Associated Companies

As of December 31, 2019, the Company held a 50% investment in and had significant influence over Nippon Quaker Chemical, Ltd. (“Nippon Japan”) and Kelko Quaker Chemical, S.A. (“Kelko Panama”) and held a 33% investment in and had significant influence over Primex, Ltd. (“Primex”). In connection with the Combination, the Company acquired a 50% investment in Houghton Korea, which the Company also has significant influence over. See Note 2 of Notes to Consolidated Financial Statements.

The carrying amount of the Company’s equity investments as of December 31, 2019 was $93.8 million, which includes investments of $70.4 million in Houghton Korea; $16.2 million in Primex; $7.0 million in Nippon Japan; and $0.2 million in Kelko Panama.

The Company also has a 50% equity interest in Kelko Venezuela. Due to heightened foreign exchange controls, deteriorating economic circumstances and other restrictions in Venezuela, during 2018 the Company concluded that it no longer had significant influence over this affiliate. Prior to this determination, the Company historically accounted for this affiliate under the equity method. As of December 31, 2019 and 2018, the Company had no remaining carrying value for its investment in Kelko Venezuela.

The following table is a summary of equity income in associated companies by investment for the years ending December 31, 2019, 2018 and 2017:

		Year Ended December 31,
		2019		2018		2017
Houghton Korea	$	2,337	$	-	$	-
Nippon Japan		850		713		585
Kelko Panama		55		222		195
Kelko Venezuela		-		(138)		(42)
Primex		1,822		966		2,547
Total equity in net income of associated companies	$	5,064	$	1,763	$	3,285

As the Combination closed on August 1, 2019, the Company included five months of equity income from Houghton Korea in its December 31, 2019 Consolidated Statement of Income.