Quarterly Results - Unaudited

12 Months Ended

Dec. 31, 2019

Quarterly Results (unaudited) [Abstract]

Quarterly Results - Unaudited [Text Block]

Note 27 – Quarterly Results (unaudited)

			First		Second		Third		Fourth
			Quarter (1)		Quarter (2)		Quarter (3)		Quarter (4)
2019
	Net sales		$	211,210	$	205,869	$	325,130	$	391,294
	Gross profit			75,767		75,161		105,057		136,132
	Operating income (loss)			19,829		20,531		(14,502)		20,276
	Net income (loss) attributable to Quaker Chemical Corporation			13,844		15,591		(13,053)		15,240
	Net income (loss) attributable to Quaker Chemical Corporation
		Common Shareholders - Basic (5)	$	1.04	$	1.17	$	(0.80)	$	0.86
	Net income (loss) attributable to Quaker Chemical Corporation
		Common Shareholders - Diluted (5)	$	1.03	$	1.17	$	(0.80)	$	0.86
2018
	Net sales		$	212,055	$	221,962	$	222,022	$	211,481
	Gross profit			75,447		80,937		81,093		74,838
	Operating income			20,231		22,563		24,919		20,068
	Net income attributable to Quaker Chemical Corporation			12,732		19,246		19,690		7,805
	Net income attributable to Quaker Chemical Corporation
		Common Shareholders - Basic (5)	$	0.96	$	1.44	$	1.48	$	0.59
	Net income attributable to Quaker Chemical Corporation
		Common Shareholders - Diluted (5)	$	0.95	$	1.44	$	1.47	$	0.58

(1) Net income attributable to Quaker Chemical Corporation for both the first quarters of 2019 and 2018 includes: earnings of $0.3 million and a loss of $0.4 million, respectively, from the Company’s equity interest in a captive insurance company; total Houghton combination and other acquisition-related expenses of $5.4 million and $6.1 million, respectively; $0.9 million and $0.6 million, respectively of charges related to the non-service component of the Company’s pension and postretirement net periodic benefit cost; and currency conversion impacts related to hyper-inflationary accounting of $0.2 million in both the first quarters of 2019 and 2018.

(2) Net income attributable to Quaker Chemical Corporation for both the second quarters of 2019 and 2018 includes: earnings from the Company’s equity interest in a captive insurance company of $0.4 million and $1.0 million, respectively; total Houghton combination and other acquisition-related expenses of $5.5 million and $4.5 million, respectively; $0.9 million and $0.6 million, respectively, of charges related to the non-service component of the Company’s pension and postretirement net periodic benefit cost and currency conversion impacts related to hyper-inflationary accounting of income of less than $0.1 million and charges of less than $0.1 million, respectively. Net income attributable to Quaker Chemical Corporation for the second quarter of 2019 also includes a $0.4 million charge related to a one-time, uncommon, customer settlement associated with the prior sale of non-core equipment, while net income attributable to Quaker Chemical Corporation for the second quarter of 2018 includes a tax adjustment of $1.2 million related to U.S. Tax Reform.

(3) The third quarter of 2019 includes two months of Houghton’s operations as the Combination occurred on August 1, 2019. Net income (loss) attributable to Quaker Chemical Corporation for both the third quarters of 2019 and 2018 includes: earnings from the Company’s equity interest in a captive insurance company of $0.5 million and $0.4 million, respectively; total Houghton combination and other acquisition-related expenses of $15.1 million and $3.8 million, respectively; $0.5 million and $0.6 million, respectively, of charges related to the non-service component of the Company’s pension and postretirement net periodic benefit cost; currency conversion impacts of hyper-inflationary accounting of $0.7 million and $0.5 million, respectively; and tax benefits of $0.4 million and $1.1 million, respectively, related to U.S. Tax Reform. Net income (loss) attributable to Quaker Chemical Corporation for the third quarter of 2019 also includes $10.2 million related to an expense associated with selling inventory acquired in the Combination which was adjusted to fair value as a part of purchase accounting and $24.0 million of restructuring expense associated with the Company’s global restructuring program initiated as part of the Company’s plan to realize cost synergies associated with the Combination. Net income (loss) attributable to Quaker Chemical Corporation for the third quarter of 2018 also includes a $0.4 million foreign currency transaction gain related to the liquidation of an inactive legal entity.

(4) The fourth quarter of 2019 includes three months of Houghton’s operations and three months of Norman Hay’s operations as the Company closed the Combination on August 1, 2019 and acquired Norman Hay on October 1, 2019. Net income attributable to Quaker Chemical Corporation for both the fourth quarters of 2019 and 2018 includes: earnings of $0.6 million and a loss of $0.1 million, respectively, from the Company’s equity interest in a captive insurance company; total Houghton combination and other acquisition-related expenses of $12.2 million and $5.1 million, respectively; $0.5 million and $0.6 million, respectively, of charges related to the non-service component of the Company’s pension and postretirement net periodic benefit cost; other income of $0.1 million related to cash proceeds from an insolvent insurance carrier with respect to previously filed recovery claims by an inactive subsidiary of the Company in both periods; and currency conversion impacts related to hyper-inflationary accounting of a charge of $0.1 million and income of less than $0.1 million, respectively. Net income attributable to the fourth quarter of 2019 also includes: $2.6 million of restructuring expense associated with the Company’s global restructuring program initiated as part of the Company’s plan to realize cost synergies associated with the Combination; $1.1 million of costs associated with reserving for trade accounts receivable of certain customers who filed for bankruptcy protection; and $1.5 million related to an expense associated with selling inventory acquired with Norman Hay which was adjusted to fair value as a part of purchase accounting. Net income attributable to Quaker Chemical Corporation for both the fourth quarters of 2019 and 2018 also includes certain tax adjustments, including a deferred tax benefit on an intercompany intangible asset transfer of $5.3 million in the fourth quarter of 2019 and an $8.1 incremental tax charge related to U.S. Tax Reform in the fourth quarter of 2018.

(5) The Company’s calculation of income (loss) attributable to Quaker Chemical Corporation Common Shareholders Basic and Diluted for the third and fourth quarters of 2019 were impacted by the approximately 4.3 million share issuance in connection with closing the Combination, comprising approximately 24.5% of the common stock of the Company, as well as the variability of its reported earnings in those periods. Therefore, the per diluted share result for each of the four quarters of 2019, as reported on a standalone basis, does not sum to the full year per diluted share result for the year ended December 31, 2019. Whereas, for the year ended December 31, 2018, basic and diluted per share amounts of net income attributable to Quaker Chemical Corporation common shareholders for all four quarters above does not total to the full year amounts presented in the Company’s consolidated financial statements due to rounding.