2020 Q2 10-Q 19 taxonomy

 
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D. C. 20549 
 
FORM 
10-Q
 
☒
QUARTERLY 
REPORT PURSUANT TO SECTION 
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 
OF 1934 
For the quarterly period ended 
June 30, 2020
 
OR 
 
☐
TRANSITION REPORT PURSUANT TO 
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE 
ACT OF 1934 
For the transition period from 
to 
 
Commission file number 
001-12019
 
QUAKER CHEMICAL CORPORATION
 
(Exact name of Registrant as specified in its charter) 
 
Pennsylvania
 
23-0993790
(State or other jurisdiction of 
incorporation or organization) 
 
(I.R.S. Employer 
Identification No.) 
 
901 E. Hector Street
, 
Conshohocken
, 
Pennsylvania
 
19428 – 2380
(Address of principal executive offices) 
 
(Zip Code) 
Registrant’s telephone number, including area code: 
610
-
832-4000
 
Not Applicable 
Former name, former address and former fiscal year, 
if changed since last report. 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class 
Trading Symbol(s) 
Name of each exchange on which registered 
Common Stock, $1 par value
KWR
New York Stock Exchange
 
Indicate by check mark whether the Registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange 
Act of 1934 during the 
preceding 12 months (or for such shorter period that the registrant was required 
to file such reports), and (2) has been subject to such filing requirements 
for the past 90 
days. 
Yes
 
☒
 
No 
☐
 
Indicate by check mark whether the Registrant has submitted electronically, every Interactive Data File required 
to be submitted pursuant to Rule 405 of Regulation S-T 
(§232.405 of this chapter) during the preceding 12 months (or for such shorter 
period that the registrant was required to submit such files) . 
Yes
 
☒
 
No 
☐
 
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging 
growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” 
in Rule 12b-2 of 
the Exchange Act. 
 
Large accelerated filer
 
☒
Accelerated filer 
☐
 
Non-accelerated filer 
☐
 
Smaller reporting 
company 
☐
Emerging growth company 
☐
 
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period 
for complying with any new or revised 
financial accounting standards provided pursuant to Section 13(a) of the Exchange 
Act. 
☐
 
Indicate by check mark whether the Registrant is a shell company (as defined 
in Rule 12b-2 of the Exchange Act). 
Yes 
☐
 
No 
☒
 
Indicate the number of shares outstanding of each of the issuer’s classes of common 
stock, as of the latest practicable date. 
 
Number of Shares of Common Stock 
Outstanding on June 30, 2020 
 
17,799,606

 
 
 
1 
 
QUAKER CHEMICAL CORPORATION 
AND CONSOLIDATED 
SUBSIDIARIES 
 
 
 
 
 
 
 
 
Page 
PART 
I. 
 
FINANCIAL INFORMATION 
 
Item 1. 
Financial Statements (unaudited) 
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2020 and June 30, 2019
2 
Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three and Six Months Ended June 30, 2020 and June
30, 2019
3 
Condensed Consolidated Balance Sheets at June 30, 2020 and December 31, 2019
4 
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2020 and June 30, 2019 
5 
Notes to Condensed Consolidated Financial Statements
6 
Item 2. 
 
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
32 
Item 3. 
 
Quantitative and Qualitative Disclosures about Market Risk.
47 
Item 4. 
 
Controls and Procedures.
48 
PART 
II
. 
 
OTHER INFORMATION.
Item 1. 
Legal Proceedings.
49 
Item 1A. 
Risk Factors.
49 
Item 2. 
Unregistered Sales of Equity Securities and Use of Proceeds.
50 
Item 6. 
 
Exhibits.
52 
Signatures 
52 
 

 
2 
PART 
I 
FINANCIAL INFORMATION 
 
Item 1. 
Financial Statements (Unaudited). 
 
Quaker Chemical Corporation 
Condensed Consolidated Statements of Operations 
(Dollars in thousands, except per share data) 
 
Unaudited 
Three Months Ended 
Six Months Ended 
June 30, 
June 30, 
2020 
2019 
2020 
2019 
Net sales 
$ 
286,040
$ 
205,869
$ 
664,601
$ 
417,079
Cost of goods sold (
excluding amortization expense - See note 14
) 
 
188,654
 
130,708
 
433,364
 
266,151
Gross profit 
 
97,386
 
75,161
 
231,237
 
150,928
Selling, general and administrative expenses 
 
86,667
 
50,026
 
185,368
 
101,481
Indefinite-lived intangible asset impairment 
—
—
38,000
—
Restructuring and related charges 
486
—
2,202
—
Combination, integration and other acquisition-related 
expenses 
7,995
4,604
15,873
9,087
Operating income (loss) 
 
2,238
20,531
 
(10,206)
 
40,360
Other (expense) income, net 
 
(993)
 
43
 
(22,168)
 
(592)
Interest expense, net 
(6,811)
(733)
(15,272)
(1,509)
(Loss) income before taxes and equity in net income of 
associated companies 
 
(5,566)
 
19,841
 
(47,646)
 
38,259
Taxes on (loss) 
income before equity in net 
income of associated 
companies 
 
3,222
 
4,800
 
(9,848)
 
9,729
(Loss) income before equity in net income of associated 
companies 
 
(8,788)
 
15,041
 
(37,798)
 
28,530
Equity in net income of associated companies 
 
1,066
 
608
 
1,732
 
1,019
Net (loss) income 
(7,722)
15,649
(36,066)
29,549
Less: Net income attributable to noncontrolling interest 
13
58
50
114
Net (loss) income attributable to Quaker Chemical Corporation 
$ 
(7,735)
$ 
15,591
$ 
(36,116)
$ 
29,435
Per share data: 
 
Net (loss) income attributable to Quaker Chemical Corporation 
common shareholders – basic 
$ 
(0.43)
$ 
1.17
$ 
(2.03)
$ 
2.21
Net (loss) income attributable to Quaker Chemical Corporation 
common shareholders – diluted 
$ 
(0.43)
$ 
1.17
$ 
(2.03)
$ 
2.20
Dividends declared 
$ 
0.385
$ 
0.385
$ 
0.770
$ 
0.755
 
The accompanying notes are an integral part of these condensed consolidated financial statements.

 
3 
Quaker Chemical Corporation 
Condensed Consolidated Statements of Comprehensive (Loss) Income 
(Dollars in thousands) 
 
Unaudited 
Three Months Ended 
Six Months Ended 
June 30, 
June 30, 
2020 
2019 
2020 
2019 
Net (loss) income 
$ 
(7,722)
$ 
15,649
$ 
(36,066)
$ 
29,549
Other comprehensive income (loss), net of tax 
Currency translation adjustments 
10,551
(519)
(44,200)
(951)
Defined benefit retirement plans 
213
522
17,170
1,228
Current period change in fair value of derivatives 
(111)
—
(4,092)
—
Unrealized gain (loss) on available-for-sale securities 
1,608
307
(103)
1,580
Other comprehensive income (loss) 
12,261
310
(31,225)
1,857
Comprehensive income (loss) 
4,539
15,959
(67,291)
31,406
Less: Comprehensive (income) loss attributable to 
noncontrolling interest 
(14)
(82)
81
(137)
Comprehensive income (loss) attributable to Quaker Chemical 
Corporation 
$ 
4,525
$ 
15,877
$ 
(67,210)
$ 
31,269
 
The accompanying notes are an integral part of these condensed consolidated financial statements.

 
4 
Quaker Chemical Corporation 
Condensed Consolidated Balance Sheets 
(Dollars in thousands, except par value and share amounts) 
 
Unaudited 
June 30, 
December 31, 
2020 
2019 
ASSETS 
 
Current assets 
 
Cash and cash equivalents 
$ 
322,497
$ 
123,524
Accounts receivable, net 
 
300,027
 
375,982
Inventories 
 
Raw materials and supplies 
 
80,331
 
82,058
Work-in-process 
and finished goods 
 
93,536
 
92,892
Prepaid expenses and other current assets 
 
52,847
 
41,516
Total current 
assets 
 
849,238
 
715,972
Property, plant and 
equipment, at cost 
 
384,960
 
398,834
Less accumulated depreciation 
 
(196,547)
 
(185,365)
Property, plant and 
equipment, net 
 
188,413
 
213,469
Right of use lease assets 
40,517
42,905
Goodwill 
 
604,649
 
607,205
Other intangible assets, net 
 
1,044,516
 
1,121,765
Investments in associated companies 
 
87,865
 
93,822
Deferred tax assets 
 
12,362
 
14,745
Other non-current assets 
 
43,966
 
40,433
Total assets 
$ 
2,871,526
$ 
2,850,316
LIABILITIES AND EQUITY 
 
Current liabilities 
 
Short-term borrowings and current portion of long-term debt 
$ 
38,217
$ 
38,332
Accounts and other payables 
 
130,334
 
170,929
Accrued compensation 
 
22,689
 
45,620
Accrued restructuring 
10,432
18,043
Other current liabilities 
 
81,019
 
87,010
Total current 
liabilities 
 
282,691
 
359,934
Long-term debt 
 
1,070,306
 
882,437
Long-term lease liabilities 
28,908
31,273
Deferred tax liabilities 
 
196,669
 
211,094
Other non-current liabilities 
 
125,611
 
123,212
Total liabilities 
 
1,704,185
 
1,607,950
Commitments and contingencies (Note 19) 
Equity 
 
Common stock $
1
 
par value; authorized 
30,000,000
 
shares; issued and 
 
outstanding 2020 –
17,799,606
 
shares; 2019 – 
17,735,162
 
shares 
17,800
17,735
Capital in excess of par value 
 
896,108
 
888,218
Retained earnings 
 
362,265
 
412,979
Accumulated other comprehensive loss 
 
(109,264)
 
(78,170)
Total Quaker 
shareholders’ equity 
 
1,166,909
 
1,240,762
Noncontrolling interest 
432
1,604
Total equity 
1,167,341
1,242,366
Total liabilities and 
equity 
$ 
2,871,526
$ 
2,850,316
 
The accompanying notes are an integral part of these condensed consolidated financial statements.

 
5 
Quaker Chemical Corporation 
Condensed Consolidated Statements of Cash Flows 
(Dollars in thousands) 
 
Unaudited 
Six Months Ended 
June 30, 
2020 
2019 
Cash flows from operating activities 
 
Net (loss) income 
$ 
(36,066)
$ 
29,549
Adjustments to reconcile net income to net cash provided 
by operating activities: 
 
Amortization of debt issuance costs 
 
2,375
 
70
Depreciation and amortization 
 
42,079
 
9,702
Equity in undistributed earnings of associated companies, 
net of dividends 
 
3,219
 
1,658
Acquisition-related fair value adjustments related to inventory 
229
—
Deferred compensation, deferred taxes and other, 
net 
 
(22,033)
 
(7,141)
Share-based compensation 
 
7,673
 
1,672
Loss (gain) on disposal of property, 
plant, equipment and other assets 
 
81
 
(39)
Insurance settlement realized 
 
(542)
 
(306)
Indefinite-lived intangible asset impairment 
38,000
—
Combination and other acquisition-related expenses, net of 
payments 
1,860
399
Restructuring and related charges 
2,202
—
Pension and other postretirement benefits 
 
18,784
 
(21)
Increase (decrease) in cash from changes in current assets and current 
 
liabilities, net of acquisitions: 
Accounts receivable 
 
61,659
 
(7,893)
Inventories 
 
(3,689)
 
(257)
Prepaid expenses and other current assets 
 
(2,849)
 
(2,039)
Change in restructuring liabilities 
(9,592)
—
Accounts payable and accrued liabilities 
 
(58,728)
 
(2,945)
 
Net cash provided by operating activities 
 
44,662
 
22,409
Cash flows from investing activities 
 
Investments in property, 
plant and equipment 
 
(7,534)
 
(5,544)
Payments related to acquisitions, net of cash acquired 
 
(3,132)
 
(500)
Proceeds from disposition of assets 
11
70
Insurance settlement interest earned 
 
37
 
131
 
Net cash used in investing activities 
 
(10,618)
 
(5,843)
Cash flows from financing activities 
 
Payments of long-term debt 
(18,702)
—
Borrowings (repayments) on revolving credit facilities, net 
 
205,500
 
(24,034)
Repayments on other debt, net 
(684)
 
(6)
Dividends paid 
 
(13,662)
 
(9,868)
Stock options exercised, other 
 
(1,923)
 
(1,374)
Purchase of noncontrolling interest in affiliates 
(1,047)
—
Distributions to noncontrolling affiliate shareholders 
(751)
—
 
Net cash provided by (used in) financing activities 
 
168,731
 
(35,282)
 
Effect of foreign exchange rate changes on 
cash 
 
(4,575)
 
749
Net increase (decrease) in cash, cash equivalents and restricted 
cash 
 
198,200
 
(17,967)
Cash, cash equivalents and restricted cash at the beginning 
of the period 
 
143,555
 
124,425
Cash, cash equivalents and restricted cash at the end of 
the period 
$ 
341,755
$ 
106,458
 
The accompanying notes are an integral part of these condensed consolidated financial statements.

Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
(Dollars in thousands, except per share amounts, 
unless otherwise stated) 
(Unaudited) 
 
6 
Note 1 – Condensed Financial Information 
As used in these Notes to Condensed Consolidated 
Financial Statements, the terms “Quaker”, “Quaker Houghton”, 
the 
“Company”, “we”, and “our” refer to Quaker Chemical 
Corporation (doing business as Quaker Houghton), its subsidiaries, and 
associated companies, unless the context otherwise requires. 
As used in these Notes to Condensed Consolidated 
Financial Statements, 
the term Legacy Quaker refers to the Company prior 
to the closing of its combination with Houghton International, 
Inc. (“Houghton”) 
(herein referred to as the “Combination”). 
The condensed consolidated financial statements included herein 
are unaudited and have 
been prepared in accordance with generally accepted 
accounting principles in the United States (“U.S. GAAP”) for 
interim financial 
reporting and the United States Securities and Exchange Commission 
(“SEC”) regulations. 
Certain information and footnote 
disclosures normally included in financial statements prepared 
in accordance with U.S. GAAP have been condensed or 
omitted 
pursuant to such rules and regulations. 
In the opinion of management, the financial statements reflect all 
adjustments which are 
necessary for a fair statement of the financial position, 
results of operations and cash flows for the interim periods. 
The results for the 
three and six months ended June 30, 2020 are not necessarily 
indicative of the results to be expected for the full year. 
These financial 
statements should be read in conjunction with the Company’s 
Annual Report filed on Form 10-K for the year 
ended December 31, 
2019 (the “2019 Form 10-K”).
 
Hyper-inflationary economies 
Economies that have a cumulative three-year rate of inflation 
exceeding 
100
% are considered hyper-inflationary in accordance 
with U.S. GAAP. 
A legal entity that operates within an economy deemed 
to be hyper-inflationary is required to remeasure its 
monetary assets and liabilities to the applicable published 
exchange rates and record the associated gains or losses resulting 
from the 
remeasurement directly to the Condensed Consolidated 
Statements of Operations. 
Based on various indices or index compilations currently 
being used to monitor inflation in Argentina as well as 
recent economic 
instability, effective 
July 1, 2018, Argentina’s 
economy was considered hyper-inflationary under U.S. GAAP. 
As a result, the 
Company began applying hyper-inflationary accounting 
with respect to the Company's wholly owned Argentine 
subsidiary beginning 
July 1, 2018. 
In addition, Houghton has an Argentina subsidiary to 
which hyper-inflationary accounting also is applied. 
As of, and 
for the three and six months ended June 30, 2020 
and 2019, the Company's Argentine subsidiaries represented 
less than 
1
% of the 
Company’s consolidated 
total assets and net sales, respectively. 
During the three and six months ended June 30, 2020, the Company 
recorded less than $
0.1
 
million and $
0.1
 
million, respectively, 
of remeasurement losses associated with the applicable 
currency 
conversions related to Argentina. 
Comparatively, during 
the three and six months ended June 30, 2019, 
the Company recorded less 
than $
0.1
 
million of remeasurement gains and $
0.2
 
million of remeasurement losses associated with the applicable 
currency 
conversion related to Argentina. 
These losses were recorded within foreign exchange 
(losses) gains, net, which is a component of 
other (expense) income, net, in the Company’s 
Condensed Consolidated Statements of Operations.
Note 2 – Business Combinations 
Houghton 
On 
August 1, 2019
, the Company completed the Combination, whereby the Company 
acquired all of the issued and outstanding 
shares of 
Houghton
 
from Gulf Houghton Lubricants, Ltd. and certain other selling 
shareholders in exchange for a combination of cash 
and shares of the Company’s 
common stock in accordance with the Share Purchase Agreement, 
dated April 4, 2017. 
Houghton is a 
leading global provider of specialty chemicals and technical 
services for metalworking and other industrial applications. 
The 
Company believes that combining Quaker’s 
and Houghton’s products 
and service offerings will allow Quaker Houghton to 
better 
serve its customers in its various end markets. 
The Combination was subject to certain regulatory 
and shareholder approvals. 
At a shareholder meeting held during 2017, the 
Company’s shareholders 
approved the issuance of new shares of the Company’s 
common stock at closing of the Combination. 
Also 
in 2017, the Company received regulatory approvals for 
the Combination from China and Australia. 
The Company received 
regulatory approvals from the European Commission 
(“EC”) during the second quarter of 2019 and the U.S. Federal 
Trade 
Commission (“FTC”) in July 2019. 
The approvals from the FTC and the EC required the concurrent 
divestiture of certain steel and 
aluminum related product lines of Houghton, which 
were sold by Houghton on August 1, 2019 for approximately 
$
37
 
million in cash. 
The final remedy agreed with the EC and the FTC was consistent 
with the Company’s 
previous expectation that the total divested 
product lines would be approximately 
3
% of the combined company’s 
net sales.
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
7 
The following table summarizes the fair value of consideration 
transferred in the Combination:
 
Cash transferred to Houghton shareholders (a) 
$ 
170,829
Cash paid to extinguish Houghton debt obligations 
702,556
Fair value of common stock issued as consideration (b) 
789,080
Total fair value 
of consideration transferred 
$ 
1,662,465
(
a)
 
A portion is held in escrow by a third party, 
subject to indemnification rights that lapse upon the achievement 
of certain 
milestones. 
(b)
 
Amount was determined based on approximately 
4.3
 
million shares, comprising 
24.5
% of the common stock of the Company 
immediately after the closing, and the closing price per 
share of Quaker Chemical Corporation common stock 
of $
182.27
 
on 
August 1, 2019.
 
The Company accounted for the Combination under the 
acquisition method of accounting. 
This method requires the recording of 
acquired assets, including separately identifiable 
intangible assets, at their fair value on the acquisition 
date. 
Any excess of the 
purchase price over the estimated fair value of 
the identifiable net assets acquired is recorded as goodwill. 
The determination of the 
estimated fair value of assets acquired, 
including indefinite and definite-lived intangible assets, 
requires management’s 
judgment and 
often involves the use of significant estimates and assumptions 
, 
including assumptions with respect to future cash inflows and 
outflows, discount rates, customer attrition rates, royalty 
rates, asset lives and market multiples, among other items. 
Fair values were 
determined by management using a variety of methodolog 
ies and resources, including external independent valuation 
experts. 
The 
valuation methods included physical appraisals, discounted 
cash flow analyses, excess earnings, relief from 
royalty, and other 
appropriate valuation techniques to determine the fair value 
of assets acquired and liabilities assumed. 
The following table presents the current preliminary estimated 
fair values of Houghton net assets acquired:
 
Measurement 
August 1, 
Period 
August 1, 2019 
2019 (1) 
Adjustments 
(as adjusted) 
Cash and cash equivalents 
$ 
75,821
$ 
—
$ 
75,821
Accounts receivable, net 
178,922
—
178,922
Inventories, net 
95,193
—
95,193
Prepaid expenses and other assets 
10,652
314
10,966
Property, plant and 
equipment 
115,529
(66)
115,463
Right of use lease assets 
10,673
—
10,673
Investments in associated companies 
66,447
—
66,447
Other non-current assets 
4,710
1,553
6,263
Intangible assets 
1,028,400
—
1,028,400
Goodwill 
494,915
7,737
502,652
Total assets purchased 
2,081,262
9,538
2,090,800
Short-term borrowings, not refinanced at closing 
9,297
—
9,297
Accounts payable, accrued expenses and other accrued 
liabilities 
150,078
853
150,931
Deferred tax liabilities 
205,082
7,132
212,214
Long-term lease liabilities 
6,607
—
6,607
Other non-current liabilities 
47,733
1,553
49,286
Total liabilities assumed 
418,797
9,538
428,335
Total consideration 
paid for Houghton 
1,662,465
—
1,662,465
Less: cash acquired 
75,821
—
75,821
Less: fair value of common stock issued as consideration 
789,080
—
789,080
Net cash paid for Houghton 
$ 
797,564
$ 
-
$ 
797,564
(1)  As 
previously disclosed in the Company’s 
2019 Form 10-K.
 
As of June 30, 2020, the allocation of the purchase price 
for the Combination has not been finalized and the 
one-year
 
measurement period has not ended. 
While not currently expected, further adjustments may be necessary 
as a result of the Company’s 
on-going assessment of additional information related 
to the fair value of assets acquired and liabilities assumed. 
Houghton assets 
acquired and liabilities assumed have been assigned 
to each of the Company’s reportable 
segments on a specific identification or 
allocated basis, as applicable. 
Measurement period adjustments recorded during the first 
six months of 2020 related primarily to 
increasing the valuation allowances against the deferred 
tax assets associated with foreign tax credits acquired as part 
of the
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
8 
Combination as a result of additional information available 
used to update the Company’s 
initial estimates of expenses allocated to 
foreign source income and expected creditable foreign 
taxes. 
In addition, measurement period adjustments include the recognition 
of 
additional other non-current assets and other non-current 
liabilities based on additional information obtained regarding 
certain tax 
audits and associated rights to indemnification, and 
certain non-income tax liabilities payable upon closing of 
the Combination in 
certain countries. 
Combination, integration and other acquisition-related 
expenses have been and are expected to continue to be significant. 
The 
Company incurred total costs of approximately $
8.3
 
million and $
16.5
 
million for the three and six months ended June 30, 2020, 
respectively, primarily 
for professional fees related to Houghton integration 
activities. 
Comparatively, the Company 
incurred total 
costs of $
5.5
 
million and $
10.8
 
million during the three and six months ended June 30, 
2019, respectively, primarily 
for various 
professional fees and integration planning and regulatory 
approval. 
These costs also include $
0.3
 
million and $
0.8
 
million of 
accelerated depreciation charges during the three 
and six months ended June 30, 2020, respectively, 
and $
0.9
 
million and $
1.7
 
million 
of interest costs to maintain the bank commitment 
(“ticking fees”) for the Combination during the three and six months 
ended June 30, 
2019, 
respectively. 
The Company had current liabilities related to the Combination, 
integration and other acquisition-related activities 
of $
8.6
 
million and $
6.6
 
million as of June 30, 2020, and December 31, 2019, respectively, 
primarily recorded within other accrued 
liabilities on its Condensed Consolidated Balance Sheets.
 
Norman Hay 
On 
October 1, 2019
, the Company completed its acquisition of the operating divisions 
of 
Norman Hay plc
 
(“Norman Hay”), a 
private U.K. company that provides specialty chemicals, operating 
equipment, and services to industrial end markets. 
The acquisition 
adds new technologies in automotive, original equipment 
manufacturer (“OEM”), and aerospace, as well as engineering expertise 
which is expected to strengthen the Company’s 
existing equipment solutions platform. 
The acquired Norman Hay assets and 
liabilities were assigned to the Global Specialty Businesses reportable 
segment. 
The original purchase price was 
80.0
 
million GBP, 
on 
a cash-free and debt-free basis, subject to routine and customary 
post-closing adjustments related to working capital and net 
indebtedness levels.
 
The following table presents the preliminary estimated fair 
values of Norman Hay net assets acquired:
 
Measurement 
October 1, 
Period 
October 1, 2019 
2019 (1) 
Adjustments 
(as adjusted) 
Cash and cash equivalents 
$ 
18,981
$ 
—
$ 
18,981
Accounts receivable, net 
15,471
—
15,471
Inventories, net 
8,213
(49)
8,164
Prepaid expenses and other assets 
4,203
—
4,203
Property, plant and 
equipment 
14,981
—
14,981
Right of use lease assets 
10,608
—
10,608
Intangible assets 
51,088
—
51,088
Goodwill 
29,384
102
29,486
Total assets purchased 
152,929
53
152,982
Long-term debt included current portions 
485
—
485
Accounts payable, accrued expenses and other accrued liabilities 
13,488
(708)
12,780
Deferred tax liabilities 
12,746
927
13,673
Long-term lease liabilities 
8,594
—
8,594
Total liabilities assumed 
35,313
219
35,532
Total consideration 
paid for Norman Hay 
117,616
(166)
117,450
Less: estimated purchase price settlement (2) 
3,287
(3,287)
—
Less: cash acquired 
18,981
—
18,981
Net cash paid for Norman Hay 
$ 
95,348
$ 
3,121
$ 
98,469
(1)
 
As previously disclosed in the Company’s 
2019 Form 10-K. 
(2)
 
The Company finalized its post-closing adjustments for the 
Norman Hay acquisition and paid approximately 
2.5
 
million GBP 
during the first quarter of 2020 to settle such adjustments.
 
As of June 30, 2020, the allocation of the purchase price 
for Norman Hay has not been finalized and the 
one-year
 
measurement 
period has not ended. 
Further adjustments may be necessary as a result of the 
Company’s on-going assessment of 
additional 
information related to the fair value of assets acquired 
and liabilities assumed.
 

Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
9 
Other Acquisitions 
In May 2020, the Company acquired Tel 
Nordic ApS (“TEL”), a company that specializes in lubricants and engineering 
primarily 
in high pressure aluminum die casting for its Europe, 
Middle East and Africa (“EMEA”) reportable segment. 
Consideration paid was 
in the form of a convertible promissory note in the amount 
of 
20.0
 
million DKK, or approximately $
2.9
 
million, which was 
subsequently converted into shares of the Company’s 
common stock. 
An adjustment to the purchase price of approximately 
0.4
 
million DKK, or less than $
0.1
 
million, was made as a result of finalizing a post-closing 
settlement in the second quarter of 2020. 
The 
Company allocated approximately $
2.4
 
million of the purchase price to intangible assets to be amortized 
over 
17
 
years. 
In addition, 
the Company recorded approximately $
0.5
 
million of goodwill, related to expected value not allocated to 
other acquired assets, none 
of which will be tax deductible. 
The allocation of the purchase price of TEL has not been 
finalized and the 
one-year
 
measurement 
period has not ended. 
Further adjustments may be necessary as a result of the 
Company’s on-going assessment of 
additional 
information related to the fair value of assets acquired 
and liabilities assumed. 
In March 2020, the Company acquired the remaining 
49
% ownership interest in one of its South African affiliates, 
Quaker 
Chemical South Africa Limited (“QSA”) for 
16.7
 
million ZAR, or approximately $
1.0
 
million, from its joint venture partner PQ 
Holdings South Africa. 
QSA is a part of the Company’s 
EMEA reportable segment. 
As this acquisition was a change in an existing 
controlling ownership, the Company recorded $
0.7
 
million of excess purchase price over the carrying value of 
the non-controlling 
interest in Capital in excess of par value. 
In 2018 the Company purchased certain formulations and product 
technology for the mining 
industry for $
1.0
 
million, with $
0.5
 
million of the purchase price paid at signing and the remaining 
$
0.5
 
million of the purchase price 
paid during the first quarter of 2019.
 
Note 3 – Recently Issued Accounting Standards 
Recently Issued Accounting Standards 
Adopted 
The Financial Accounting Standards Board (“FASB”) 
issued Account Standards Update (“ASU”)
 
2020-04, 
Reference Rate 
Reform (Topic 
848): Facilitation of the Effects of Reference 
Rate Reform on Financial Reporting
 
in March 2020. 
The amendments 
provide temporary optional expedients and exceptions for 
applying GAAP to contract modifications, hedging relationships 
and other 
transactions to ease the potential accounting and financial 
reporting burden associated with transitioning away from 
reference rates 
that are expected to be discontinued, including the London 
Interbank Offered Rate (“LIBOR”). 
ASU 2020-04 is effective for the 
Company as of March 12, 2020 and generally can be 
applied through December 31, 2022. 
As of June 30, 2020, the expedients 
provided in ASU 2020-04 do not impact the Company; 
however, the Company will continue to 
monitor for potential impacts on its 
consolidated financial statements. 
The FASB issued 
ASU 2018-15
, Customer’s 
Accounting for Implementation Costs Incurred 
in a Cloud Computing Arrangement 
That 
Is a Service Contract
 
in August 2018 that clarifies the accounting for implementation 
costs incurred in a cloud computing 
arrangement under a service contract. 
This guidance generally aligns the requirements for capitalizing 
implementation costs incurred 
in a hosting arrangement under a service contract with the 
requirements for capitalizing implementation costs related 
to internal-use 
software. 
The guidance within this accounting standard update is effective 
for annual periods beginning after December 15, 2019 and 
should be applied either retrospectively or prospectively 
to all implementation costs incurred after the date of 
adoption. 
Early 
adoption was permitted. 
The Company adopted this standard on a prospective basis, effective 
January 1, 2020. 
There was no 
cumulative effect of adoption recorded within 
retained earnings on January 1, 2020. 
The FASB issued 
ASU 2018-14, 
Disclosure Framework — Changes to 
the Disclosure Requirements 
for Defined Benefit Plans
 
in 
August 2018 that modifies certain disclosure requirements 
for fair value measurements. 
The guidance removes certain disclosure 
requirements regarding transfers between levels of 
the fair value hierarchy as well as certain disclosures related 
to the valuation 
processes for certain fair value measurements. 
Further, the guidance added certain disclosure 
requirements including unrealized gains 
and losses and significant unobservable inputs used to 
develop certain fair value measurements. 
The guidance within this accounting 
standard update is effective for annual and 
interim periods beginning after December 15, 2019, and should 
be applied prospectively in 
the initial year of adoption or prospectively to all periods 
presented, depending on the amended disclosure requirement. 
Early 
adoption was permitted. 
The Company adopted this standard on a prospective basis, effective 
January 1, 2020. 
ASU 2018-14 
addresses disclosures only and will not have an impact 
on the Company’s consolidated 
financial statements. 
The FASB issued 
ASU 2016-13, 
Financial Instruments - Credit Losses (Topic 
326): Measurement of Credit 
Losses on Financial 
Instruments 
in June 2016 related to the accounting for and disclosure of 
credit losses. 
The FASB subsequently 
issued several 
additional accounting standard updates which amended 
and clarified the guidance, but did not materially change 
the guidance or its 
applicability to the Company. 
This accounting guidance introduces a new model for 
recognizing credit losses on financial 
instruments, including customer accounts receivable, 
based on an estimate of current expected credit losses. 
The guidance within this 
accounting standard update is effective for annual 
and interim periods beginning after December 15, 2019. 
Early adoption was 
permitted. 
The Company did not early adopt, but did adopt the guidance in 
this accounting standard update, including all applicable 

Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
10 
subsequent updates to this accounting guidance, as required 
, 
on a modified retrospective basis, effective January 
1, 2020. 
Adoption 
did not have a material impact to the Company’s 
financial statements as expected. 
However, as a result of this adoption, the Company 
recorded a cumulative effect of accounting change 
that resulted in an increase to its allowance for doubtful accounts 
of approximately 
$
1.1
 
million, a decrease to deferred tax liabilities of $
0.2
 
million and a decrease to retained earnings of $
0.9
 
million. 
In accordance with this guidance, the Company recognizes 
an allowance for credit losses reflecting the net amount expected to 
be 
collected from its financial assets, primarily trade accounts 
receivable. 
This allowance represents the portion of the receivable that the 
Company does not expect to collect over its contractual 
life, considering past events and reasonable and supportable forecasts of 
future 
economic conditions. 
The Company’s allowance for 
credit losses on its trade accounts receivable is based on 
specific collectability 
facts and circumstances for each outstanding receivable and 
customer, the aging of outstanding 
receivables and the associated 
collection risk the Company estimates for certain past due 
aging categories, and also, the general risk to all outstanding accounts 
receivable based on historical amounts determined to 
be uncollectible.
 
Recently Issued Accounting Standards 
Not Yet Adopted 
The FASB 
issued ASU 2020-01,
 
Investments – Equity Securities (Topic 
321), Investments – Equity Method and Joint Ventures 
(Topic 
323), and Derivatives and Hedging (Topic 
815) –Clarifying the Interactions between Topic 
321, Topic 
323, and Topic 
815
 
in 
January 2020 clarifying the interaction among the 
accounting standards related to equity securities, equity method investments, 
and 
certain derivatives. 
The new guidance, among other things, states that a company 
should consider observable transactions that require 
a company to either apply or discontinue the equity method 
of accounting, for the purposes of applying the fair value 
measurement 
alternative immediately before applying or upon discontinuing 
the equity method. 
The new guidance also addresses the measurement 
of certain purchased options and forward contracts used 
to acquire investments. 
The guidance within this accounting standard update 
is effective for annual and interim periods beginning 
after December 15, 2020 and is to be applied prospectively. 
Early adoption is 
permitted. 
The Company has not early adopted the guidance and is currently 
evaluating its implementation. 
The FASB issued 
ASU 2019-12
, Income Taxes 
(Topic 
740): Simplifying the Accounting for Income Taxes
 
in December 2019 to 
simplify the accounting for income taxes. 
The guidance within this accounting standard update removes 
certain exceptions, including 
the exception to the incremental approach for certain 
intra-period tax allocations, to the requirement to recognize or not 
recognize 
certain deferred tax liabilities for equity method investments 
and foreign subsidiaries, and to the general methodology 
for calculating 
income taxes in an interim period when a year-to-date 
loss exceeds the anticipated loss for the year. 
Further, the guidance simplifies 
the accounting related to franchise taxes, the step up in 
tax basis for goodwill, current and deferred tax expense, and codification 
improvements for income taxes related to employee 
stock ownership plans. 
The guidance is effective for annual and interim periods 
beginning after December 15, 2020. 
Early adoption is permitted. 
The Company has not early adopted the guidance and 
is currently 
evaluating its implementation. 
The FASB issued 
ASU 2018-13
, Fair Value 
Measurement (Topic 
820): 
Disclosure Framework – Changes to the 
Disclosure 
Requirements for Fair Value 
Measurement
 
in August 2018 that modifies certain disclosure requirement 
s 
for employers that sponsor 
defined benefit pension or other postretirement plans. 
The amendments in this accounting standard update remove 
disclosures that are 
no longer considered cost beneficial, clarify the specific 
requirements of certain disclosures, and add new disclosure requirements 
as 
relevant. 
The guidance within this accounting standard update is effective 
for annual periods beginning after December 15, 2020, and 
should be applied retrospectively to all periods presented. 
Early adoption is permitted. 
The Company has not early adopted the 
guidance and is currently evaluating its implementation.
 
Note 4 – Business Segments 
The Company’s operating 
segments, which are consistent with its reportable segments, 
reflect the structure of the Company’s 
internal organization, the method by which 
the Company’s resources are allocated 
and the manner by which the Company and the 
chief operating decision maker assess its performance. 
During the third quarter of 2019 and in connection with the Combination, 
the 
Company reorganized its executive management 
team to align with its new business structure, which reflects the 
method by which the 
chief operating decision maker of the Company assesses its performance 
and allocates its resources. 
The Company’s current 
reportable segment structure includes 
four
 
segments: (i) Americas; (ii) EMEA; (iii) Asia/Pacific; and (iv) 
Global Specialty Businesses. 
The three geographic segments are composed of 
the net sales and operations in each respective region, excluding 
net sales and 
operations managed globally by the Global Specialty 
Businesses segment, which includes the Company’s 
container, metal finishing, 
mining, offshore, specialty coatings, specialty grease 
and Norman Hay businesses. 
All prior period information for Legacy Quaker 
has been recast to reflect these four segments as the Company’s 
new reportable segments. 
Prior to the Company’s 
re-segmentation 
during the third quarter of 2019, the Company’s 
historical reportable segments were four geographic regions: (i) 
North America; (ii) 
EMEA; (iii) Asia/Pacific; and (iv) South America.
 
Though the Company changed its reportable segments in 
the third quarter of 2019, the calculation of the reportable segments’ 
measures of earnings remains otherwise generally 
consistent with past practices. 
Segment operating earnings for the Company’s 
reportable segments are comprised of net sales less cost of goods 
sold (“COGS”) and selling, general and administrative expenses 

 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
11 
(“SG&A”) directly related to the respective segment’s 
product sales. 
Operating expenses not directly attributable to the 
net sales of 
each respective segment are not included in segment 
operating earnings, such as certain corporate and administrative 
costs, 
Combination, integration and other acquisition-related 
expenses, and restructuring and related charges. 
Other items not specifically 
identified with the Company’s 
reportable segments include interest expense, net and 
other (expense) income, net. 
The following table presents information about the performance 
of the Company’s reportable segments 
for the three and six 
months ended June 30, 2020 and 2019:
 
Three Months Ended 
Six Months Ended 
June 30, 
June 30, 
2020 
2019 
2020 
2019 
Net sales 
 
Americas 
$ 
80,576
$ 
71,747
$ 
210,472
$ 
143,972
EMEA 
 
77,702
 
49,012
 
182,541
 
101,437
Asia/Pacific 
 
68,421
 
44,801
 
141,973
 
90,968
Global Specialty Businesses 
 
59,341
 
40,309
 
129,615
 
80,702
Total net sales 
$ 
286,040
$ 
205,869
$ 
664,601
$ 
417,079
Segment operating earnings 
Americas 
$ 
10,303
$ 
13,965
$ 
39,491
$ 
28,304
EMEA 
10,245
8,938
28,604
17,731
Asia/Pacific 
19,261
12,159
38,802
24,971
Global Specialty Businesses 
 
16,393
 
10,970
 
36,953
 
21,574
Total segment operating 
earnings 
 
56,202
 
46,032
 
143,850
 
92,580
Combination, integration and other acquisition-related 
expenses 
(7,995)
(4,604)
(15,873)
(9,087)
Restructuring and related charges 
(486)
—
(2,202)
—
Indefinite-lived intangible asset impairment 
—
—
(38,000)
—
Non-operating and administrative expenses 
(32,045)
(19,070)
(70,496)
(39,418)
Depreciation of corporate assets and amortization 
 
(13,438)
 
(1,827)
 
(27,485)
 
(3,715)
Operating income (loss) 
2,238
20,531
(10,206)
40,360
Other (expense) income, net 
(993)
43
(22,168)
(592)
Interest expense, net 
 
(6,811)
 
(733)
 
(15,272)
 
(1,509)
(Loss) income before taxes and equity in net income of 
associated companies 
$ 
(5,566)
$ 
19,841
$ 
(47,646)
$ 
38,259
Inter-segment revenues for the three and six months 
ended June 30, 2020 were $
2.4
 
million and $
5.3
 
million for Americas, $
5.3
 
million and $
10.8
 
million for EMEA, $
0.1
 
million and $
0.3
 
million for Asia/Pacific, and $
1.0
 
million and $
2.3
 
million for Global 
Specialty Businesses, respectively. 
Inter-segment revenues for the three and six months 
ended June 30, 2019 were $
1.3
 
million and 
$
2.7
 
million for Americas, $
4.8
 
million and $
10.1
 
million for EMEA, less than $
0.1
 
million and $
0.1
 
million for Asia/Pacific, and 
$
1.3
 
million and $
2.8
 
million for Global Specialty Businesses, respectively. 
However, all inter-segment 
transactions have been 
eliminated from each reportable segment’s 
net sales and earnings for all periods presented in the above 
tables.
 
Note 5 – Net Sales and Revenue Recognition 
Business Description 
The Company develops, produces, and markets a broad 
range of formulated chemical specialty products and offers 
chemical 
management services (“Fluidcare”) for various heavy 
industrial and manufacturing applications throughout its four 
segments. 
The 
Combination increased the Company’s 
addressable metalworking, metals and industrial end markets, including 
steel, aluminum, 
aerospace, defense, transportation-OEM, transportation 
-components, offshore sub-sea energy, 
architectural aluminum, construction, 
tube and pipe, can and container, 
mining, specialty coatings and specialty greases. 
The Combination also strengthened the product 
portfolio of the combined Company. 
The major product lines of Quaker Houghton include metal remo 
val fluids, cleaning fluids, 
corrosion inhibitors, metal drawing and forming fluids, die 
cast mold releases, heat treatment and quenchants, metal forging 
fluids, 
hydraulic fluids, specialty greases, offshore 
sub-sea energy control fluids, rolling lubricants, rod 
and wire drawing fluids and surface 
treatment chemicals.

Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
12 
A substantial portion of the Company’s 
sales worldwide are made directly through its own employees 
and its Fluidcare programs, 
with the balance being handled through distributors and 
agents. 
The Company’s employees typically 
visit the plants of customers 
regularly, work 
on site, and, through training and experience, identify production 
needs which can be resolved or otherwise addressed 
either by adapting the Company’s 
existing products or by applying new formulations developed 
in its laboratories. 
The specialty 
chemical industry comprises many companies similar in 
size to the Company, 
as well as companies larger and smaller than Quaker 
Houghton. 
The offerings of many of the Company’s 
competitors differ from those of Quaker Houghton; 
some offer a broad portfolio 
of fluids, including general lubricants, while others have 
a more specialized product range. 
All competitors provide different levels of 
technical services to individual customers. 
Competition in the industry is based primarily on the ability to 
provide products that meet 
the needs of the customer, render 
technical services and laboratory assistance to the customer and, 
to a lesser extent, on price. 
As part of the Company’s 
Fluidcare business, 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 
its customers. 
Where the Company acts as an agent, revenue is recognized on 
a net reporting basis at the amount of the administrative fee earned 
by 
the Company for ordering the goods.
 
In determining whether the Company is acting as a principal 
or an agent in each arrangement, 
the Company considers whether it is primarily responsible 
for the obligation to provide the specified good, has inventory 
risk before 
the specified good has been transferred to the customer 
and has discretion in establishing the prices for the specified 
goods. 
The 
Company transferred third-party products under arrangements 
recognized on a net reporting basis of $
6.2
 
million and $
18.7
 
million 
for the three and six months ended June 30, 2020, 
respectively, and $
10.4
 
million and $
20.8
 
million for the three and six months ended 
June 30, 2019, 
respectively. 
A significant portion of the Company’s 
revenues are realized from the sale of process fluids and services 
to manufacturers of 
steel, aluminum, automobiles, aircraft, industrial equipment, 
and durable goods, and, therefore, the Company is subject 
to the same 
business cycles as those experienced by these manufacturers and 
their customers. 
The Company’s financial performance 
is generally 
correlated to the volume of global production within the 
industries it serves, rather than discretely related to the financial performance 
of such industries. 
Furthermore, steel and aluminum customers typically have 
limited manufacturing locations compared to 
metalworking customers and generally use higher 
volumes of products at a single location. 
As previously disclosed in its 2019 Form 
10-K, during 
2019, the Company’s five 
largest customers (each composed of multiple subsidiaries or 
divisions with semiautonomous 
purchasing authority) accounted for approximately 
12
% of consolidated net sales, with its largest customer 
accounting for 
approximately 
6
% of consolidated net sales. 
Revenue Recognition Model 
The Company applies the FASB’s 
guidance on revenue recognition which requires the 
Company to recognize revenue in an 
amount that reflects the consideration to which the Company 
expects to be entitled in exchange for goods or services transferred 
to its 
customers. 
To do this, the Company 
applies the five-step model in the FASB’s 
guidance, which requires the Company to: (i) identify 
the contract with a customer; (ii) identify the performance 
obligations in the contract; (iii) determine the transaction price; 
(iv) allocate 
the transaction price to the performance obligations in the 
contract; and (v) recognize revenue when, or as, the Company 
satisfies a 
performance obligation.
 
The Company identifies a contract with a customer when a 
sales agreement indicates approval and commitment of the parties; 
identifies the rights of the parties; identifies the payment 
terms; has commercial substance; and it is probable 
that the Company will 
collect the consideration to which it will be entitled in 
exchange for the goods or services that will be transferred to 
the customer. 
In 
most instances, the Company’s 
contract with a customer is the customer’s 
purchase order. 
For certain customers, the Company may 
also enter into a sales agreement which outlines a 
framework of terms and conditions which apply to all future 
and subsequent 
purchase orders for that customer. 
In these situations, the Company’s 
contract with the customer is both the sales agreement as well as 
the specific customer purchase order. 
Because the Company’s contract 
with a customer is typically for a single transaction or 
customer purchase order, the duration 
of the contract is almost always one year or less. 
As a result, the Company has elected to apply 
certain practical expedients and omit certain disclosures of 
remaining performance obligations for contracts that have an 
initial term of 
one year or less as permitted by the FASB. 
The Company identifies a performance obligation in a 
contract for each promised good or service that is separately identifiable 
from other obligations in the contract and for which the 
customer can benefit from the good or service either on its own or together 
with other resources that are readily available to 
the customer. 
The Company determines the transaction price as the amount 
of 
consideration it expects to be entitled to in exchange 
for fulfilling the performance obligations, including the 
effects of any variable 
consideration, significant financing elements, amounts 
payable to the customer or noncash consideration. 
For any contracts that have 
more than one performance obligation, the Company 
allocates the transaction price to each performance obligation 
in an amount that 
depicts the amount of consideration to which the Company 
expects to be entitled in exchange for satisfying each performance 
obligation. 

Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
13 
In accordance with the last step of the FASB’s 
guidance, the Company recognizes revenue when, 
or as, it satisfies the 
performance obligation in a contract by transferring control 
of a promised good or providing the service to the customer. 
The 
Company recognizes revenue over time as the customer 
receives and consumes the benefits provided by the Company’s 
performance; 
the Company’s performance 
creates or enhances an asset that the customer controls as the 
asset is created or enhanced; or the 
Company’s performance 
does not create an asset with an alternative use to the entity, 
and the entity has an enforceable right to 
payment, including a profit margin, for performance 
completed to date. 
For performance obligations not satisfied over time, the 
Company determines the point in time at which a customer 
obtains control of an asset and the Company satisfies a perf 
ormance 
obligation by considering when the Company has a right 
to payment for the asset; the customer has legal title to the 
asset; the 
Company has transferred physical possession of the asset; the 
customer has the significant risks and rewards of ownership 
of the asset; 
or the customer has accepted the asset. 
The Company typically satisfies its performance obligations 
and recognizes revenue at a point in time for product 
sales, generally 
when products are shipped or delivered to the customer, 
depending on the terms underlying each arrangement. 
In circumstances 
where the Company’s 
products are on consignment, revenue is generally recognized 
upon usage or consumption by the customer. 
For 
any Fluidcare or other services provided by the Company 
to the customer, the Company typically satisfies its 
performance obligations 
and recognizes revenue over time, as the promised services 
are performed. 
The Company uses input methods to recognize revenue 
over time related to these services, including labor costs 
and time incurred. 
The Company believes that these input methods represent 
the most indicative measure of the Fluidcare or other service 
work performed by the Company. 
Other Considerations 
The Company does not have standard payment terms for 
all customers; 
however the Company’s general 
payment terms require 
customers to pay for products or services provided after 
the performance obligation is satisfied. 
The Company does not have 
significant financing arrangements with its customers. 
The Company does not have significant amounts of variable 
consideration in 
its contracts with customers and where applicable, 
the Company’s estimates of variable 
consideration are not constrained. 
The 
Company records certain third-party license fees in 
other (expense) income, net, in its Condensed Consolidated 
Statements of 
Operations, 
which generally include sales-based royalties in exchange for 
the license of intellectual property. 
These license fees are 
recognized in accordance with their agreed-upon 
terms and when performance obligations are satisfied, which 
is generally when the 
third party has a subsequent sale. 
Practical Expedients and Accounting Policy Elections 
The Company has made certain accounting policy 
elections and elected to use certain practical expedients as permitted 
by the 
FASB in applying 
the guidance on revenue recognition. 
It is the Company’s policy 
to not adjust the promised amount of 
consideration for the effects of a significant 
financing component as the Company expects, at contract 
inception, that the period 
between when the Company transfers a promised good or service 
to the customer and when the customer pays for that good 
or service 
will be one year or less. 
In addition, it is the Company’s 
policy to expense costs to obtain a contract as incurred 
when the expected 
period of benefit, and therefore the amortization period, 
is one year or less. 
It is also the Company’s accounting 
policy to exclude 
from the measurement of the transaction price all 
taxes assessed by a governmental authority that are both imposed 
on and concurrent 
with a specific revenue-producing transaction and 
collected by the entity from a customer, including 
sales, use, value added, excise 
and various other taxes. 
Lastly, the Company 
has elected to account for shipping and handling activities that occur 
after the customer 
has obtained control of a good as a fulfilment cost rather than 
an additional promised service.
 
Contract Assets and Liabilities 
The Company recognizes a contract asset or receivable 
on its Condensed Consolidated Balance Sheet when the Company 
provides a good or service in advance of receiving consideration. 
A receivable is the Company’s 
right to consideration that is 
unconditional and only the passage of time is required 
before payment of that consideration is due. 
A contract asset is the Company’s 
right to consideration in exchange for goods or services 
that the Company has transferred to a customer.
 
The Company had 
no
 
material contract assets recorded on its Condensed Consolidated 
Balance Sheets as of June 30, 2020 or December 31, 
2019. 
A contract liability is recognized when the Company 
receives consideration, or if it has the unconditional right 
to receive 
consideration, in advance of performance. 
A contract liability is the Company’s 
obligation to transfer goods or services to a customer 
for which the Company has received consideration, 
or a specified amount of consideration is due, from the customer. 
The Company’s 
contract liabilities primarily represent deferred revenue 
recorded for customer payments received by the Company 
prior to the 
Company satisfying the associated performance obligation. 
Deferred revenues are presented within other current liabilities 
in the 
Company’s Condensed 
Consolidated Balance Sheets.
 
The Company had approximately $
3.2
 
million and $
2.2
 
million of deferred 
revenue as of June 30, 2020 and December 31, 2019, 
respectively. 
During the six months ended June 30, 2020, 
the Company satisfied 
all of the associated performance obligations and recognized 
into revenue the advanced payments received and recorded 
as of 
December 31, 2019.
 

 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
14 
Disaggregated Revenue 
The Company sells its various industrial process fluids, 
its specialty chemicals and its technical expertise as a global 
product 
portfolio. 
The Company generally manages and evaluates its performance 
by segment first, and then by customer industry, 
rather than 
by individual product lines. 
The Company has provided annual net sales information by 
major product lines that represent 
approximately 10% or more of consolidated net sales in its 2019 
Form 10-K, and those annual percentages are generally consistent 
with the current quarter’s net sales by product 
line. 
Also, net sales of each of the Company’s 
major product lines are generally spread 
throughout all three of the Company’s 
geographic regions, and in most cases, approximately proportionate 
to the level of total sales in 
each region. 
The following tables disaggregate the Company’s 
net sales by segment, geographic region, customer industry, 
and timing of 
revenue recognized for the three and six months ended 
June 30, 2020 and 2019. 
The Company has made certain reclassifications of 
disaggregated customer industry disclosures for the 
three and six months ended June 30, 2020 to conform with 
the Company’s current 
period customer industry segmentation.
 
Three Months Ended June 30, 2020 
Consolidated 
Americas 
EMEA 
Asia/Pacific 
Total 
Customer Industries 
Metals 
$ 
32,687
$ 
24,924
$ 
35,416
$ 
93,027
Metalworking and other 
47,889
52,778
33,005
133,672
80,576
77,702
68,421
226,699
Global Specialty Businesses 
32,294
15,569
11,478
59,341
$ 
112,870
$ 
93,271
$ 
79,899
$ 
286,040
Timing of Revenue Recognized 
Product sales at a point in time 
$ 
108,644
$ 
87,995
$ 
78,195
$ 
274,834
Services transferred over time 
4,226
5,276
1,704
11,206
$ 
112,870
$ 
93,271
$ 
79,899
$ 
286,040
 
Three Months Ended June 30, 2019 
Consolidated 
Americas 
EMEA 
Asia/Pacific 
Total 
Customer Industries 
Metals 
$ 
39,506
$ 
24,485
$ 
28,391
$ 
92,382
Metalworking and other 
32,241
24,527
16,410
73,178
71,747
49,012
44,801
165,560
Global Specialty Businesses 
31,145
4,138
5,026
40,309
$ 
102,892
$ 
53,150
$ 
49,827
$ 
205,869
Timing of Revenue Recognized 
Product sales at a point in time 
$ 
100,053
$ 
53,098
$ 
48,406
$ 
201,557
Services transferred over time 
2,839
52
1,421
4,312
$ 
102,892
$ 
53,150
$ 
49,827
$ 
205,869

 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
15 
Six Months Ended June 30, 2020 
Consolidated 
Americas 
EMEA 
Asia/Pacific 
Total 
Customer Industries 
Metals 
$ 
79,360
$ 
54,812
$ 
77,005
$ 
211,177
Metalworking and other 
131,112
127,729
64,968
323,809
210,472
182,541
141,973
534,986
Global Specialty Businesses 
76,525
32,174
20,916
129,615
$ 
286,997
$ 
214,715
$ 
162,889
$ 
664,601
Timing of Revenue Recognized 
Product sales at a point in time 
$ 
277,446
$ 
206,418
$ 
159,351
$ 
643,215
Services transferred over time 
9,551
8,297
3,538
21,386
$ 
286,997
$ 
214,715
$ 
162,889
$ 
664,601
 
Six Months Ended June 30, 2019 
Consolidated 
Americas 
EMEA 
Asia/Pacific 
Total 
Customer Industries 
Metals 
$ 
80,431
$ 
49,201
$ 
57,604
$ 
187,236
Metalworking and other 
63,541
52,236
33,364
149,141
143,972
101,437
90,968
336,377
Global Specialty Businesses 
63,315
8,001
9,386
80,702
$ 
207,287
$ 
109,438
$ 
100,354
$ 
417,079
Timing of Revenue Recognized 
Product sales at a point in time 
$ 
201,600
$ 
109,332
$ 
97,057
$ 
407,989
Services transferred over time 
5,687
106
3,297
9,090
$ 
207,287
$ 
109,438
$ 
100,354
$ 
417,079
Note 6 – Leases 
The Company determines if an arrangement is a lease 
at its inception. 
This determination generally depends on whether the 
arrangement conveys the right to control the use of an 
identified fixed asset explicitly or implicitly for a period of 
time in exchange for 
consideration. 
Control of an underlying asset is conveyed if the Company 
obtains the rights to direct the use of, and obtains 
substantially all of the economic benefits from the use 
of, the underlying asset. 
Lease expense for variable leases and short-term 
leases is recognized when the obligation is incurred.
 
The Company has operating leases for certain facilities, vehicles 
and machinery and equipment with remaining lease terms up 
to 
11
 
years. 
In addition, the Company has certain land use leases with remaining 
lease terms up to 
95
 
years. 
The lease term for all of the 
Company’s leases includes 
the non-cancellable period of the lease plus any additional periods 
covered by an option to extend the lease 
that the Company is reasonably 
certain it will exercise. 
Operating leases are included in right of use lease assets, other current 
liabilities and long-term lease liabilities on the Condensed 
Consolidated Balance Sheet. 
Right of use lease assets and liabilities are 
recognized at each lease’s 
commencement date based on the present value of its lease payments 
over its respective lease term. 
The 
Company uses the stated borrowing rate for a lease when 
readily determinable. 
When a stated borrowing rate is not available in a 
lease agreement, the Company uses its incremental borrowing 
rate based on information available at the lease’s 
commencement date 
to determine the present value of its lease payments. 
In determining the incremental borrowing rate used to present 
value each of its 
leases, the Company considers certain information 
including fully secured borrowing rates readily available to the Company 
and its 
subsidiaries. 
The Company has immaterial finance leases, which are 
included in property, plant 
and equipment, current portion of 
long-term debt and long-term debt on the Condensed Consolidated 
Balance Sheet.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
16 
Operating lease expense is recognized on a straight-line 
basis over the lease term. 
Operating lease expense for the three and six 
months ended June 30, 2020 was $
3.5
 
million and $
6.9
 
million, respectively. 
Comparatively, operating 
lease expense for the three 
and six months ended June 30, 2019 was $
1.7
 
million and $
3.5
 
million, respectively. 
Short-term lease expense for the three and six 
months ended June 30, 2020 was $
0.4
 
million and $
0.9
 
million, respectively. 
Comparatively, short-term 
lease expense for the three 
and six months ended June 30, 2019 was $
0.2
 
million and $
0.3
 
million, respectively. 
The Company has 
no
 
material variable lease 
costs or sublease income for the three or six months ended 
June 30, 2020 and 2019. 
Cash paid for operating leases during the six months ended 
June 30, 2020 and 2019 was $
6.8
 
million and $
3.4
 
million, 
respectively. 
The Company recorded new right of use lease assets and associated lease liabilities 
of $
4.1
 
million during the six 
months ended June 30, 2020. 
Supplemental balance sheet information related to the Company’s 
leases is as follows:
 
June 30, 
December 31, 
2020 
2019 
Right of use lease assets 
$ 
40,517
$ 
42,905
Other current liabilities 
11,085
11,177
Long-term lease liabilities 
28,908
31,273
Total operating 
lease liabilities 
$ 
39,993
$ 
42,450
Weighted average 
remaining lease term (years) 
6.0
6.2
Weighted average 
discount rate 
4.21%
4.21%
Maturities of operating lease liabilities as of June 30, 
2020 were as follows:
 
June 30, 
2020 
For the remainder of 2020 
$ 
6,598
For the year ended December 31, 2021 
10,978
For the year ended December 31, 2022 
7,435
For the year ended December 31, 2023 
5,434
For the year ended December 31, 2024 
4,232
For the year ended December 31, 2025 and beyond 
11,356
Total lease payments 
46,033
Less: imputed interest 
(6,040)
Present value of lease liabilities 
$ 
39,993
Note 7 – Restructuring and Related Activities 
As previously disclosed in its 2019 Form 10-K, in the third quarter of 2019, the Company’s management approved a global 
restructuring plan (the “QH Program”) as part of its plan to realize certain cost synergies associated with the Combination.  The QH 
Program includes restructuring and associated severance costs to reduce total headcount by approximately 325 people globally and 
plans for the closure of certain manufacturing and non-manufacturing facilities.  The exact timing and total costs associated with the 
QH Program will depend on a number of factors and is subject to change; however, the Company currently expects reduction in 
headcount and site closures to continue to occur during 2020 and 2021 under the QH Program and estimates that total costs related to 
the QH Program will approximate one-times the anticipated cost synergies realized from the QH Program.  Employee separation 
benefits will vary depending on local regulations within certain foreign countries and will include severance and other benefits.
 
All costs incurred to date relate to severance costs to reduce 
headcount as well as costs to close certain facilities and are 
recorded 
in restructuring and related charges in the 
Company’s Condensed Statements 
of Operations. 
As described in Note 4 of Notes to 
Condensed Consolidated Financial Statements, restructuring 
and related charges are not included in 
the Company’s calculation of 
reportable segments’ measure of operating earnings 
and therefore these costs are not reviewed by or recorded to 
reportable segments.
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
17 
Activity in the Company’s 
accrual for restructuring under the QH Program for the six months ended 
June 30, 2020 is as follows:
 
QH Program 
Accrued restructuring as of December 31, 2019 
$ 
18,043
Restructuring and related charges 
2,202
Cash payments 
(9,592)
Currency translation adjustments 
 
(221)
Accrued restructuring as of June 30, 2020 
$ 
10,432
In connection with the plans for closure of certain 
manufacturing and non-manufacturing facilities, the Company 
made a decision 
to make available for sale certain facilities during the second 
quarter of 2020 resulting in the reclassification of approximately 
$
11.7
 
million of buildings and land to other current assets as of June 
30, 2020.
 
Note 8 – Share-Based Compensation 
The Company recognized the following share-based compensation 
expense in its Condensed Consolidated Statements of 
Operations for the three and six months ended June 30, 2020 
and 2019:
 
Three Months Ended 
Six Months Ended 
June 30, 
June 30, 
2020 
2019 
2020 
2019 
Stock options 
$ 
353
$ 
173
$ 
785
$ 
433
Non-vested restricted stock awards and restricted stock 
units 
1,259
440
2,523
1,138
Non-elective and elective 401(k) matching contribution in 
stock 
1,162
—
1,162
—
Employee stock purchase plan 
—
24
—
47
Director stock ownership plan 
54
23
94
54
Performance stock units 
280
—
280
—
Annual incentive plan 
(117)
—
2,829
—
Total share-based 
compensation expense 
$ 
2,991
$ 
660
$ 
7,673
$ 
1,672
Share-based compensation expense is recorded in SG&A, 
except for approximately $
0.3
 
million and $
0.8
 
million for the three 
and six months ended June 30, 2020, respectively, 
and less than $
0.1
 
million for the six months ended June 30, 2019, recorded within 
Combination, integration and other acquisition-related 
expenses. 
The increase in total share-based compensation expense for 
the six 
months ended June 30, 2020 includes performance stock 
units, annual incentive plan accruals, 
and non-elective and elective 401(k) 
matching contributions 
in stock as components 
of share-based compensation beginning in 2020, described 
further below. 
Stock Options
 
During the first quarter of 2020, the Company granted 
stock options under its long-term incentive plan (“LTIP”) 
that are subject 
only to time-based vesting over a 
three
-year period. 
For the purposes of determining the fair value of stock option 
awards, the 
Company used a Black-Scholes option pricing model and 
the assumptions set forth in the table below:
 
Number of options granted 
49,115
Dividend yield 
0.99
% 
Expected volatility 
31.57
% 
Risk-free interest rate 
0.36
% 
Expected term (years) 
4.0
The fair value of these options is amortized on a straight 
-line basis over the vesting period. 
As of June 30, 2020, 
unrecognized 
compensation expense related to all stock options 
granted was $
2.2
 
million, to be recognized over a weighted average remaining 
period of 
2.2
 
years. 
Restricted Stock Awards 
and Restricted Stock Units
 
During the six months ended June 30, 2020, the Company 
granted 
27,137
 
non-vested restricted shares and 
5,804
 
non-vested 
restricted stock units under its LTIP 
, 
subject to time-based vesting, generally over a three-year 
period. The fair value of these grants is 
based on the trading price of the Company’s 
common stock on the date of grant. The Company adjusts the grant 
date fair value of 
these awards for expected forfeitures based on historical 
experience 
As of June 30, 2020, unrecognized compensation expense 
related to the non-vested restricted shares was $
6.7
 
million, to be recognized over a weighted average remaining period 
of 
1.9
 
years, 

Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
18 
and unrecognized compensation expense related to non-vested 
restricted stock units was $
1.1
 
million, to be recognized over a 
weighted average remaining period of 
2.3
 
years.
 
Performance Stock Units 
In March 2020, the Company included performance 
-dependent stock awards (“PSUs”) as a component of its LTIP, 
which will be 
settled in a certain number of shares subject to market 
-based and time-based vesting conditions. 
The number of fully vested shares 
that may ultimately be issued as settlement for each 
award may range from 
0
% up to 
200
% of the target award, subject to the 
achievement of the Company’s 
total shareholder return (“TSR”) relative to the performance 
of the Company’s peer 
group, the S&P 
Midcap 400 Materials group. 
The service period required for the PSUs is three years and 
the TSR measurement period for the PSUs is 
from January 1, 2020 through December 31, 2022. 
Compensation expense for PSUs is measured based on 
their grant date fair value and is recognized on a straight-line basis over 
the three-year vesting period. 
The grant-date fair value of the PSUs was estimated using a 
Monte Carlo simulation on the grant date 
and using the following assumptions: (i) a risk-free 
rate of 
0.28
%; (ii) an expected term of 
3.0
 
years; and (iii) a three-year daily 
historical volatility for each of the companies in the 
peer group, including Quaker Houghton. 
As of June 30, 2020, the Company estimates that it will issue 
approximately 
25,500
 
fully vested shares as of the settlement date of 
the award based on the conditions of the PSUs and 
Company’s closing stock price 
on June 30, 2020. 
As of June 30, 2020, there was 
approximately $
3.1
 
million of total unrecognized compensation cost related to PSUs which 
the Company expects to recognize over a 
weighted-average period of 
2.7
 
years.
 
Annual Incentive Plan 
The Company maintains an Annual Incentive Plan 
(“AIP”), which may be settled in cash or a certain number of 
shares subject to 
performance-based and time-based vesting conditions. 
It is the Company’s current 
intention to settle the 2020 AIP in shares, and 
therefore, expense associated with the AIP in 2020 will 
be recorded as a component of share-based compensation 
expense. 
The 
number of fully vested shares that may ultimately 
be issued as settlement for each award is subject to the achievement 
of the 
Company’s performance 
against certain internal financial and non-financial metrics and 
approval by the Company’s Compensation 
Committee. 
Compensation expense for the AIP is measured based on the estimated 
total value of the award. 
The number of shares that will 
ultimately be issued under the AIP award will be equal 
to final value of the award converted into a number of shares based 
on the 
trading price of the Company’s 
common stock on the date of settlement. 
As of June 30, 2020, the Company estimates that it will issue 
approximately 
39,000
 
fully vested shares as of the settlement date of the award 
based on the conditions of the AIP, 
the Company’s 
projected performance against its performance metrics 
and Company’s closing 
stock price on June 30, 2020.
 
Defined Contribution Plan 
The Company has a 401(k) plan with an employer 
match covering a majority of its U.S. employees. 
The Company matches 
50
% 
of the first 
6
% of compensation that is contributed to the plan, with a maximum 
matching contribution of 
3
% of compensation. 
Additionally, the 
plan provides for non-elective nondiscretionary contributions 
on behalf of participants who have completed one year 
of service equal to 
3
% of the eligible participant's compensation. 
The Company’s matching contributions 
and non-elective 
contributions may be made in cash or in fully vested shares 
of the Company’s common 
stock. 
Beginning in April 2020, 
the Company 
began matching both non-elective and elective 401(k) 
contributions in fully vested shares of its common stock rather than 
cash. 
For 
the three and six months ended June 30, 2020, total contributions 
were $
1.2
 
million.
 

 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
19 
Note 9 – Pension and Other Postretirement 
Benefits 
The components of net periodic benefit cost for the 
three and six months ended June 30, 2020 and 2019 are as follows:
 
Three Months Ended June 30, 
Six Months Ended June 30, 
Other 
Other 
Postretirement 
Postretirement 
Pension Benefits 
Benefits 
Pension Benefits 
Benefits 
2020 
2019 
2020 
2019 
2020 
2019 
2020 
2019 
Service cost 
$ 
1,164
$ 
978
$ 
1
$ 
2
$ 
2,338
$ 
1,963
$ 
3
$ 
4
Interest cost 
1,486
1,105
26
36
3,255
2,216
52
71
Expected return on plan assets 
(1,761)
(978)
—
—
(3,720)
(1,962)
—
—
Settlement charge 
—
—
—
—
22,667
—
—
—
Actuarial loss amortization 
615
773
16
—
1,662
1,549
31
—
Prior service cost amortization 
(41)
(41)
—
—
(81)
(83)
—
—
Net periodic benefit cost 
$ 
1,463
$ 
1,837
$ 
43
$ 
38
$ 
26,121
$ 
3,683
$ 
86
$ 
75
In the fourth quarter of 2018, the Company began the process of terminating its Legacy Quaker non-contributory U.S. pension 
plan (“Legacy Quaker U.S. Pension Plan”).  During the third quarter of 2019, the Company received a favorable termination 
determination letter from the Internal Revenue Service (“I.R.S.”) and amended the Legacy Quaker U.S. Pension Plan to comply with 
final regulations of the Internal Revenue Code.  The Company completed the Legacy Quaker U.S. Pension Plan termination during the 
first quarter of 2020.  In order to terminate the Legacy Quaker U.S. Pension Plan in accordance with I.R.S. and Pension Benefit 
Guaranty Corporation requirements, the Company was required to fully fund the Legacy Quaker U.S. Pension Plan on a termination 
basis and the amount necessary to do so was approximately $1.8 million, subject to final true up adjustments.  In July 2020, the 
Company finalized the amount of the liability and related annuity payments and expects to receive a refund in premium of 
approximately $2 million in August 2020.  In addition, the Company recorded a non-cash pension settlement charge at plan 
termination of approximately $22.7 million.  This settlement charge included the immediate recognition into expense of the related 
unrecognized losses within accumulated other comprehensive (loss) income (“AOCI”) on the balance sheet as of the plan termination 
date.
 
Employer Contributions 
The Company previously disclosed in its 2019 Form 10-K 
that it expected to make minimum cash contributions of $
10.0
 
million 
to its U.S. and foreign pension plans and approximately 
$
0.4
 
million to its other postretirement benefit plans in 2020. As a result 
of 
certain current year pension plan funding relief provided 
by the Coronavirus Aid, Relief, and Economic Security 
Act (the “CARES 
Act”) enacted into law on March 27, 2020, the Company 
now expects to make minimum cash contributions of 
$
8.0
 
million to its U.S. 
and foreign pension plans in 2020. 
As of June 30, 2020, $
4.9
 
million and $
0.2
 
million of contributions have been made to the 
Company’s U.S. and foreign 
pension plans and its other postretirement benefit plans, respectively.
 
This excludes the $
1.8
 
million of 
additional funding made in the first quarter of 2020, as required, 
to terminate the Legacy Quaker U.S. Pension Plan, noted above.
 
Note 10 – Other (Expense) Income, Net
 
The components of other (expense) income, net, for the 
three and six months ended June 30, 2020 and 2019 are as follows:
 
Three Months Ended 
Six Months Ended 
June 30, 
June 30, 
2020 
2019 
2020 
2019 
Income from third party license fees 
$ 
208
$ 
193
$ 
512
$ 
413
Foreign exchange losses, net 
(2,004)
(144)
(1,183)
(381)
(Loss) gain on fixed asset disposals, net 
(83)
30
(81)
39
Non-income tax refunds and other related credits 
832
813
2,131
965
Pension and postretirement benefit costs, 
non-service components 
(341)
(895)
(23,866)
(1,791)
Other non-operating income, net 
395
46
319
163
Total other 
(expense) income, net 
$ 
(993)
$ 
43
$ 
(22,168)
$ 
(592)
Pension and postretirement benefit costs, non-service components 
during the six months ended June 30, 2020 includes 
$
22.7
 
million related to the Legacy Quaker U.S. Pension 
Plan non-cash settlement charge described in Note 
9 of Notes to Condensed 
Consolidated Financial Statements.

Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
20 
Note 11 – Income Taxes 
and Uncertain Income Tax 
Positions 
The Company’s effective 
tax rate for the three and six months ended June 30, 2020 was an expense 
of 
57.9
% and a benefit of 
20.7
%, respectively, compared to 
an expense of 
24.2
% and 
25.4
%, respectively, for the 
three and six months ended June 30, 2019. 
The Company’s effective 
tax rate for the three and six months ended June 30, 2020 was impacted 
by the tax effect of certain one-time 
pre-tax costs as well as certain tax charges 
and benefits in the current period including those related to changes 
in foreign tax credit 
valuation allowances, discussed below, 
tax law changes in foreign jurisdictions, changes in uncertain 
tax positions, and the tax impact 
of the Company’s termination 
of its legacy Quaker U.S. Pension Plan. 
Comparatively, the 
three and six months ended June 30, 2019 
effective tax rates were impacted by certain 
non-deductible costs associated with the Combination, partially 
offset by a favorable shift 
in earnings to entities with lower effective 
tax rates. 
On March 27, 2020, in response to COVID-19 and its detrimental 
impact to the global economy, 
the CARES Act was enacted 
into law, providing 
a stimulus to the U.S. economy in the form of various individual 
and business assistance programs as well as 
temporary changes to existing tax law. 
The changes include a postponement of certain tax payments, 
deferral of the employer’s 
portion of the social security tax and certain other payroll 
-related incentives, and an increase in the interest expense 
limitation under 
Section 163(j) of the Internal Revenue Code from 
30
% to 
50
% for the 2019 and 2020 tax years. 
ASC 740 requires the tax effects of 
changes in tax laws or rates to be recorded in the period 
of enactment. 
Under the CARES Act, the Company has the option to use 
its 
2019 adjusted taxable income in determining its interest expense 
limitation under Section 163(j). 
While the Company is still 
considering whether to make this election for 2020, the 
current year tax provision takes into account this potential election and 
associated tax benefit, which offsets an inc 
rease to the Company’s foreign 
tax credit valuation allowance recognized during the 
current quarter primarily driven by changes in current 
year projected taxable income due to the negative impacts from 
COVID-19. 
In 
addition, the Company reviewed its existing deferred tax 
assets in light of COVID-19 and determined that, at this time, 
no change in 
valuation allowance is required except with regard to 
its foreign tax credits as noted above. 
While the ultimate impact of COVID-19 
on the Company’s results 
of operations is still uncertain, the Company will continue to 
assess future changes in projected taxable 
income to determine if they result in additional changes 
to any of the Company’s valuation 
allowances. 
As previously disclosed in its 2019 Form 10-K, the Company 
had a deferred tax liability of $
8.2
 
million at December 31, 2019, 
which primarily represents the Company’s 
estimate of non-U.S. taxes it will incur to repatriate certain foreign 
earnings to the U.S. 
During the first six months of 2020, the Company made 
certain adjustments to the deferred tax liability to take into 
account a tax law 
change enacted in the first quarter in a certain foreign 
jurisdiction, the inclusion of other earnings to be repatriated, 
and the actual 
repatriation of earnings, resulting in a deferred tax liability 
of $
6.3
 
million as of June 30, 2020. 
As previously disclosed in its 2019 Form 10-K, in conjunction 
with the Combination, the Company acquired foreign tax credit 
deferred tax assets of $
41.8
 
million expiring between 
2019 and 2028
. 
Foreign tax credits may be carried forward for 10 years. 
The 
Company analyzes the expected impact of the utilization 
of foreign tax credits based on projected U.S. taxable income, 
overall 
domestic loss recapture, annual limitations due to the 
ownership change limitations provided by the Internal 
Revenue Code, and 
enacted tax law amongst other factors. 
As of December 31, 2019, the Company had net realizable foreign 
tax credits of $
32.7
 
million 
on its balance sheet expected to be utilized between 
2020 and 2026
. 
As of June 30, 2020, the Company had net realizable foreign tax 
credits of $
21.9
 
million on its balance sheet expected to be utilized between 
2020 and 2026
. 
The change in net realizable foreign tax 
credits during the first six months of 2020 was primarily 
driven by the Company's update to its initial opening balance 
sheet estimate 
with respect to acquired Houghton foreign tax credit deferred 
tax assets, described in Note 2 of Notes to Condensed Consolidated 
Financial Statements, as well as approximately $
3.7
 
million of tax expense for the six months ended June 30, 
2020 based on revised 
taxable income projections and changes to the interest expense 
limitation under the CARES Act amongst other factors. 
The Company continues to recognize interest and penalties 
associated with uncertain tax positions as a component of 
taxes on 
(loss) income before equity in net income of associated 
companies in its Condensed Consolidated Statements of Operations. 
The 
Company recognized an expense for interest of $
0.6
 
million and $
0.6
 
million and an expense for penalties of $
0.6
 
million and $
0.5
 
million in its Condensed Consolidated Statement of Operations 
for the three and six months ended June 30, 2020, respectively 
. 
Comparatively, 
the Company recognized an expense for interest of $
0.1
 
million and $
0.2
 
million and an expense for penalties of less 
than $
0.1
 
million for both the three and six months ended June 30, 2019, 
respectively. 
As of June 30, 2020, the Company had accrued 
$
2.8
 
million for cumulative interest and $
4.0
 
million for cumulative penalties in its Condensed Consolidated Balance 
Sheets, 
compared to $
2.3
 
million for cumulative interest and $
3.1
 
million for cumulative penalties accrued at December 31, 2019. 
As of June 30, 2020, the Company’s 
cumulative liability for gross unrecognized tax benefits was $
21.1
 
million, an increase of 
$
2.0
 
million from the $
19.1
 
million cumulative liability accrued as of December 31, 
2019. 
During the six months ended June 30, 2020 and 2019, the 
Company recognized a decrease of $
1.5
 
million and less than $
0.1
 
million, respectively, 
in its cumulative liability for gross unrecognized tax benefits due 
to the expiration of the applicable statutes of 
limitations for certain tax years. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
21 
The Company estimates that during the year ending December 
31, 2020 it will reduce its cumulative liability for gross 
unrecognized tax benefits by approximately $
2.3
 
million due to the expiration of the statute of limitations with regard 
to certain tax 
positions. 
This estimated reduction in the cumulative liability for unrecognized 
tax benefits does not consider any increase in liability 
for unrecognized tax benefits with regard to existing tax 
positions or any increase in cumulative liability for unrecognized 
tax benefits 
with regard to new tax positions for the year ending December 
31, 2020. 
The Company and its subsidiaries are subject to U.S. Federal income 
tax, as well as the income tax of various state and foreign 
tax jurisdictions. 
Tax years that remain 
subject to examination by major tax jurisdictions include Brazil from 
2000
, Italy from 
2006
, 
China from 
2010
, Canada from 
2011
, the Netherlands and the United Kingdom from 
2014
, Spain from 
2015
, Mexico, Germany, 
and 
the U.S. from 
2016
, India from fiscal year beginning April 1, 2017 and ending 
March 31, 
2018
, and various U.S. state tax jurisdictions 
from 
2010
. 
As previously reported, the Italian tax authorities have 
assessed additional tax due from the Company’s 
subsidiary, Quaker Italia 
S.r.l., relating to the tax 
years 
2007 through 2015
. 
The Company has filed for competent authority relief related to 
these assessments 
under the Mutual Agreement Procedures (“MAP”) of the 
Organization for Economic Co-Operation and Development 
(“OECD”) for 
all years except 2007. 
During the second quarter of 2020, the Company received notification 
that the Italian and Dutch competent 
authorities reached an agreement as part of the MAP involving 
tax years 2008 through 2015. 
The Company has tentatively agreed to 
the reduced tax assessments and has recorded $
1.4
 
million of additional reserves for uncertain tax positions for the 
open tax years that 
is consistent with the tentative agreement reached involving 
tax years 2008 through 2015. 
As of June 30, 2020, the Company believes 
it has adequate reserves for uncertain tax positions with 
respect to this matter. 
Houghton Italia, S.r.l 
is also currently involved in a corporate income tax audit with the 
Italian tax authorities covering tax years 
2014 through 2018. 
As part of the purchase accounting related to the Combination, 
the Company has established a $
5.4
 
million 
reserve for uncertain tax positions relating to this audit. 
These amounts relate to the 2014 to 2018 audit periods 
as well as the seven-
month period in 2019 prior to the Combination. 
Since these amounts relate to tax periods prior to the Combination, 
the Company has 
submitted an indemnification claim against funds 
held in escrow by Houghton’s former 
owners for certain tax liabilities arising pre-
Combination. 
As a result, a corresponding $
5.4
 
million indemnification receivable has also been established through 
purchase 
accounting that would offset the $
5.4
 
million in tax liabilities booked through purchase accounting. 
As of June 30, 2020, the 
Company believes it has adequate reserves for uncertain 
tax positions.
 
Note 12 – Earnings Per Share 
The following table summarizes earnings per share calculations 
for the three and six months ended June 30, 2020 and 2019:
 
Three Months Ended 
Six Months Ended 
June 30, 
June 30, 
2020 
2019 
2020 
2019 
Basic (loss) earnings per common share 
 
 
 
Net (loss) income attributable to Quaker Chemical Corporation 
$ 
(7,735)
$ 
15,591
$ 
(36,116)
$ 
29,435
Less: loss (income) allocated to participating securities 
 
37
 
(34)
 
146
 
(81)
Net (loss) income available to common shareholders 
$ 
(7,698)
$ 
15,557
$ 
(35,970)
$ 
29,354
Basic weighted average common shares outstanding 
17,697,496
13,304,248
17,685,010
13,297,953
Basic (loss) earnings per common share 
$ 
(0.43)
$ 
1.17
$ 
(2.03)
$ 
2.21
Diluted (loss) earnings per common share 
Net (loss) income attributable to Quaker Chemical Corporation 
$ 
(7,735)
$ 
15,591
$ 
(36,116)
$ 
29,435
Less: loss (income) allocated to participating securities 
37
 
(34)
 
146
 
(81)
Net (loss) income available to common shareholders 
$ 
(7,698)
$ 
15,557
$ 
(35,970)
$ 
29,354
Basic weighted average common shares outstanding 
17,697,496
13,304,248
17,685,010
13,297,953
Effect of dilutive securities 
—
48,007
—
47,362
Diluted weighted average common shares outstanding 
17,697,496
13,352,255
17,685,010
13,345,315
Diluted (loss) earnings per common share 
$ 
(0.43)
$ 
1.17
$ 
(2.03)
$ 
2.20

 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
22 
During the third quarter of 2019, the Company issued 
approximately 
4.3
 
million shares of common stock, comprising 
24.5
% of 
the common stock of the Company immediately after 
the closing, as a component of the consideration transferred in the Combination. 
Certain stock options and restricted stock units are not included 
in the diluted (loss) earnings per share calculation because the effect 
would have been anti-dilutive. 
All of the Company’s potentially 
dilutive shares for the three and six months ended June 
30, 2020 are 
anti-dilutive and not included in the dilutive (loss) earnings 
per share calculation because of the Company’s 
net loss for the periods. 
Comparatively, 
there were 
no
 
anti-dilutive shares for the three and six months ended 
June 30, 2019.
 
Note 13 – Restricted Cash 
The Company has restricted cash recorded in other assets related to proceeds from an inactive subsidiary of the Company which 
previously executed separate settlement and release agreements with two of its insurance carriers for an original total value of $35.0 
million.
 
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. 
The proceeds of the settlement and release agreements 
have been deposited into interest bearing 
accounts that earned less than $
0.1
 
million in the six months ended June 30, 2020, compared to $
0.1
 
in the six months ended June 30, 
2019. 
The interest was offset by $
0.5
 
million of payments during the six months ended June 30, 
2020, compared to $
0.3
 
million of 
payments in the six months ended June 30, 2019. 
Due to the restricted nature of the proceeds, a corresponding 
deferred credit was 
established in other non-current liabilities for an equal 
and offsetting amount, and will remain until the restrictions 
lapse or the funds 
are exhausted via payments of claims and costs of defense.
 
The following table provides a reconciliation of cash, 
cash equivalents and restricted cash as of June 30, 2020 and 2019 
, 
and 
December 31, 2019 and 2018:
 
June 30, 
December 31, 
2020 
2019 
2019 
2018 
Cash and cash equivalents 
$ 
322,497
$ 
86,355
$ 
123,524
$ 
104,147
Restricted cash included in other current assets 
85
—
353
—
Restricted cash included in other assets 
19,173
20,103
19,678
20,278
Cash, cash equivalents and restricted cash 
$ 
341,755
$ 
106,458
$ 
143,555
$ 
124,425
Note 14 – Goodwill and Other Intangible Assets 
Changes in the carrying amount of goodwill for the 
six months ended June 30, 2020 were as follows:
 
Global 
Specialty 
Americas 
EMEA 
Asia/Pacific 
Businesses 
Total 
Balance as of December 31, 2019 
$ 
216,385
$ 
133,018
$ 
141,727
$ 
116,075
 
$ 
607,205
Goodwill acquired 
—
531
—
—
531
Currency translation and other adjustments 
 
(4,569)
(3,256)
5,940
(1,202)
(3,087)
Balance as of June 30, 2020 
$ 
211,816
$ 
130,293
$ 
147,667
$ 
114,873
 
$ 
604,649
Other adjustments in the table above include updates 
to the Company’s allocation 
of the Houghton purchase price and associated 
goodwill to each of the Company’s 
reportable segments during the first six months of 2020. 
Gross carrying amounts and accumulated amortization 
for definite-lived intangible assets as of June 30, 2020 and December 
31, 
2019 were as follows:
 
Gross Carrying 
Accumulated 
Amount 
Amortization 
2020 
2019 
2020 
2019 
Customer lists and rights to sell 
$ 
781,188
 
$ 
792,362
 
$ 
72,803
 
$ 
49,932
Trademarks, formulations and product 
technology 
 
155,924
 
157,049
 
25,475
 
21,299
Other 
 
6,266
 
6,261
 
5,684
 
5,776
Total definite 
-lived intangible assets 
$ 
943,378
 
$ 
955,672
 
$ 
103,962
 
$ 
77,007
The Company amortizes definite-lived intangible assets on 
a straight-line basis over their useful lives. 
The Company recorded 
$
13.7
 
million and $
27.7
 
million of amortization expense for the three and six months 
ended June 30, 2020, respectively. 
Comparatively, 
the Company recorded $
1.8
 
million and $
3.6
 
million of amortization expense for the three and six months 
ended June 
30, 2019, respectively.

 
 
 
 
 
 
 
 
 
 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
23 
Estimated annual aggregate amortization expense for 
the current year and subsequent five years is as follows:
 
For the year ended December 31, 2020 
$ 
55,145
For the year ended December 31, 2021 
54,885
For the year ended December 31, 2022 
54,732
For the year ended December 31, 2023 
54,515
For the year ended December 31, 2024 
54,089
For the year ended December 31, 2025 
53,418
Goodwill and intangible assets that have indefinite lives are 
not amortized and are required to be assessed at least annually 
for 
impairment. 
The Company completes its annual goodwill and indefinite-lived 
intangible asset impairment test during the fourth 
quarter of each year. 
The Company continuously evaluates if triggering events indicate 
a possible impairment in one or more of its 
reporting units or indefinite-lived or long-lived assets.
 
As of March 31, 2020, the Company evaluated the initial imp 
act of COVID-19 on the Company’s 
operations, and the volatility 
and uncertainty in the economic outlook as a result of 
COVID-19 to determine if they indicated it was more likely 
than not that the 
carrying value of any of the Company’s 
reporting units or indefinite-lived or long-lived assets was not 
recoverable. 
The Company 
concluded that the impact of COVID-19 did not represent 
a triggering event as of March 31, 2020 with regards to the Company’s 
reporting units or indefinite-lived and long-lived assets, except 
for the Company’s Houghton 
and Fluidcare trademark and tradename 
indefinite-lived intangible assets. 
The determination of estimated fair value of the Houghton 
and Fluidcare trademark and tradename indefinite-lived assets was 
based on a relief from royalty valuation method which 
requires management’s 
judgment and often involves the use of significant 
estimates and assumptions, including assumptions with respect 
to the weighted average cost of capital (“WACC”) 
as well as projected 
net sales. 
In the first quarter of 2020, as a result of the impact of 
COVID-19 driving a decrease in projected legacy Houghton 
net sales 
in the current year and the impact of the current year 
decline on projected future legacy Houghton net sales as well as an increase 
in 
the WACC 
assumption utilized in the quantitative impairment assessment, the 
Company concluded that the estimated fair values of 
the Houghton and Fluidcare trademark and tradename 
intangible assets were less than their carrying values. 
As a result, an 
impairment charge of $
38.0
 
million to write down the carrying values of these intangible 
assets to their estimated fair values was 
recorded in the first quarter of 2020. 
The Company’s estimate of fair 
value and the carrying value of these Houghton and Fluidcare 
trademark and tradename indefinite-lived intangible assets as of 
June 30, 2020 was $
204.0
 
million. 
Comparatively, these indefinite-
lived intangible assets totaled $
242.0
 
million as of December 31, 2019. 
In addition, the Company has other indefinite-lived intangible 
assets totaling $
1.1
 
million as of both June 30, 2020 and December 31, 2019. 
As of June 30, 2020, the Company continued to evaluate the on 
-going impact of COVID-19 on the Company’s 
operations, and 
the volatility and uncertainty in the economic outlook as a result of 
COVID-19, to determine if this indicated it was more likely 
than 
not that the carrying value of any of the Company’s 
reporting units or indefinite-lived or long-lived intangible assets were 
not 
recoverable. 
The Company concluded that the impact of COVID-19 did not represent 
a triggering event as of June 30, 2020 with 
regards to any of the Company’s 
reporting units or indefinite-lived and long-lived intangible 
assets. 
While the Company concluded that the impact of COVID-19 
did not represent a triggering event as of June 30, 2020 for any 
of its 
other long-lived or indefinite-lived assets or reporting 
units, the Company will continue to evaluate the impact of COVID-19 
on the 
Company’s current and 
projected results. 
If the current economic conditions worsen or projections of the 
timeline for recovery are 
significantly extended, then the Company may conclude 
in the future that the impact from COVID-19 requires the need 
to perform 
further interim quantitative impairment tests, which could 
result in additional impairment charges in the future.
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
24 
Note 15 – Debt 
Debt as of June 30, 2020 and December 31, 2019 
includes the following:
 
As of June 30, 2020 
As of December 31, 2019 
Interest 
Outstanding 
Interest 
Outstanding 
Rate 
Balance 
Rate 
Balance 
Credit Facilities: 
Revolver 
1.67%
$ 
376,676
3.20%
$ 
171,169
U.S. Term Loan 
2.10%
585,000
3.20%
600,000
EURO Term Loan 
1.50%
147,584
1.50%
151,188
Industrial development bonds 
5.26%
10,000
5.26%
10,000
Bank lines of credit and other debt obligations 
Various 
1,910
Various 
2,608
Total debt 
$ 
1,121,170
$ 
934,965
Less: debt issuance costs 
(12,647)
(14,196)
Less: short-term and current portion of long-term debts 
(38,217)
(38,332)
Total long 
-term debt 
$ 
1,070,306
$ 
882,437
Credit facilities 
The Company’s primary 
credit facility (as amended, the “New Credit Facility”) is comprised 
of a $
400.0
 
million multicurrency 
revolver (the “Revolver”), a $
600.0
 
million term loan (the “U.S. Term 
Loan”), each with the Company as borrower, 
and a $
150.0
 
million (as of August 1, 2019) Euro equivalent term loan (the 
“EURO Term Loan” 
and together with the “U.S. Term 
Loan”, the 
“Term Loans” 
) 
with Quaker Chemical B.V., 
a Dutch subsidiary of the Company as borrower, 
each with a five-year term maturing in 
August 2024. 
Subject to the consent of the administrative agent and certain 
other conditions, the Company may designate additional 
borrowers. 
The maximum amount available under the New Credit Facility can be 
increased by up to $
300.0
 
million at the Company’s 
request if there are lenders who agree to accept additional 
commitments and the Company has satisfied certain other 
conditions. 
Borrowings under the New Credit Facility bear interest at a 
base rate or LIBOR plus an applicable margin 
based upon the Company’s 
consolidated net leverage ratio. 
There are LIBOR replacement provisions that contemplate a further 
amendment if and when LIBOR 
ceases to be reported. 
The interest rate incurred on the outstanding borrowings under 
the New Credit Facility during the six months 
ended June 30, 2020 was approximately 
2.5
%. 
In addition to paying interest on outstanding principal under 
the New Credit Facility, 
the Company is required to pay a commitment fee ranging 
from 
0.2
% to 
0.3
% depending on the Company’s 
leverage ratio to the 
lenders under the Revolver in respect of the unutilized 
commitments thereunder. 
The Company has unused capacity under the 
Revolver of approximately $
15
 
million, net of bank letters of credit of approximately 
$
8
 
million, as of June 30, 2020, as the Company 
drew down most of the available capacity under the Revolver 
in the second half of March 2020 as a precautionary measure 
due to the 
uncertainty of the impact of COVID-19 on the Company 
as well as on the U.S. capital markets and bank liquidity, 
among other 
potential effects. 
The New Credit Facility is subject to certain financial 
and other covenants. 
The Company’s initial consolidated net debt to 
consolidated adjusted EBITDA ratio cannot exceed 4.25 to 1, with step downs in the permitted ratio over the course of the New Credit 
Facility.  The Company’s consolidated adjusted EBITDA to interest expense ratio cannot be less than 3.0 to 1.  The New Credit 
Facility also prohibits the payment of cash dividends if the Company is in default or if the amount of the dividend paid annually 
exceeds the greater of $50.0 million and 20% of consolidated adjusted EBITDA unless the ratio of consolidated net debt to 
consolidated adjusted EBITDA is less than 2.0 to 1, in which case there is no such limitation on amount.
 
As of June 30, 2020 and 
December 31, 2019, the Company was in compliance with all of the New Credit Facility covenants.
 
The Term Loans have 
quarterly 
principal amortization during their respective five-year 
maturities, with 
5.0
% amortization of the principal balance due in years 1 and 
2, 
7.5
% in year 3, and 
10.0
% in years 4 and 5, with the remaining principal amount due at maturity. 
During the six months ended June 
30, 2020, the Company made two quarterly amortization payments 
related to the Term 
Loans totaling $
18.7
 
million. 
The New Credit 
Facility is guaranteed by certain of the Company’s 
domestic subsidiaries and is secured by first priority liens 
on substantially all of the 
assets of the Company and the domestic subsidiary guarantors, 
subject to certain customary exclusions. 
The obligations of the Dutch 
borrower are guaranteed only by certain foreign subsidiaries 
on an unsecured basis. 
The New Credit Facility requires the Company to deliver to 
the administrative 
agent and each lender the audited consolidated 
financial statements of the Company for each fiscal year 
in a prescribed period of time. 
On March 17, 2020, the Company, 
the 
administrative agent, and all parties to the New Credit Facility 
entered into an amendment (the “Amendment”) which allowed 
the 
Company to deliver the annual audited consolidated financial 
statements for the year ended December 31, 2019 
to the bank group no 
later than April 16, 2020 as compared to the initial deadline 
of March 17, 2020. 
The Company delivered its 2019 audited consolidated 
financial statements to the administrative agent and each 
lender on March 20, 2020 in compliance with the Amendment. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
25 
The New Credit Facility required the Company to fix its variable 
interest rates on at least 
20
% of its total Term 
Loans. 
In order to 
satisfy this requirement as well as to manage the 
Company’s exposure to variable 
interest rate risk associated with the New Credit 
Facility, in November 
2019, the Company entered into $
170.0
 
million notional amounts of three-year interest rate swaps at a base 
rate 
of 
1.64
% plus an applicable margin as provided in the 
New Credit Facility, based on 
the Company’s consolidated 
net leverage ratio. 
At the time the Company entered into the swaps, and 
as of June 30, 2020, this aggregate rate was 
3.1
%. 
See Note 18 of Notes to 
Condensed Consolidated Financial Statements. 
The Company capitalized $
23.7
 
million of certain third-party debt issuance costs in connection 
with executing the New Credit 
Facility. 
Approximately $
15.5
 
million of the capitalized costs were attributed to the Term 
Loans and recorded as a direct reduction of 
long-term debt on the Company’s 
Condensed Consolidated Balance Sheet. 
Approximately $
8.3
 
million of the capitalized costs were 
attributed to the Revolver and recorded within other assets on 
the Company’s Condensed Consolidated 
Balance Sheet. 
These 
capitalized costs are being amortized into interest expense 
over the five-year term of the New Credit Facility. 
As of June 30, 2020 and 
December 31, 2019, the Company had $
12.6
 
million and $
14.2
 
million, respectively, 
of debt issuance costs recorded as a reduction of 
long-term debt. 
As of June 30, 2020 and December 31, 2019, the Company 
had $
6.7
 
million and $
7.6
 
million, respectively, of 
debt 
issuance costs recorded within other assets.
 
Industrial development bonds 
As of June 30, 2020 and December 31, 2019, the Company 
had fixed rate, industrial development authority bonds totaling 
$
10.0
 
million in principal amount due in 2028. 
These bonds have similar covenants to the New Credit Facility noted 
above. 
Bank lines of credit and other 
debt obligations 
The Company has certain unsecured bank lines of credit 
and discounting facilities in one of its foreign subsidiaries, which 
are not 
collateralized. 
The Company’s other debt 
obligations primarily consist of certain domestic and foreign 
low interest rate or interest-
free municipality-related loans, local credit facilities of 
certain foreign subsidiaries and capital lease obligations. 
Total unused 
capacity under these arrangements as of June 30, 2020 
was approximately $
37
 
million. 
In addition to the bank letters of credit described in the “Credit facilities” subsection above, the Company’s only other off-balance 
sheet arrangements include certain financial and other guarantees.  The Company’s total bank letters of credit and guarantees 
outstanding as of June 30, 2020 were approximately $14 million.
 
For the three and six months ended June 30, 2020, 
the Company incurred the following debt related expenses included 
within 
Interest expense, net, in the Condensed Consolidated Statements 
of Operations:
 
Three Months Ended 
Six Months Ended 
June 30, 
June 30, 
2020 
2019 
2020 
2019 
Interest expense 
$ 
5,951
$ 
1,255
$ 
13,663
$ 
2,427
Amortization of debt issuance costs 
1,188
28
2,375
70
Total 
$ 
7,139
$ 
1,283
$ 
16,038
$ 
2,497
Based on the variable interest rates associated with the New 
Credit Facility, as of June 
30, 2020 and December 31, 2019, the 
amounts at which the Company’s 
total debt were recorded are not materially different 
from their fair market value.
 

 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
26 
Note 16 – Equity 
The following tables present the changes in equity, 
net of tax, for the three and six months ended June 30, 2020 
and 2019:
 
Accumulated 
Capital in 
Other 
Common 
Excess of 
Retained 
Comprehensive 
Noncontrolling 
Stock 
Par Value 
Earnings 
Loss 
Interest 
Total 
Balance at March 31, 2020 
$ 
17,752
$ 
888,533
$ 
376,853
$ 
(121,524)
$ 
418
$ 
1,162,032
Net (loss) income 
—
—
(7,735)
—
13
(7,722)
Amounts reported in other comprehensive 
income 
—
—
—
12,260
1
12,261
Dividends ($
0.385
 
per share) 
—
—
(6,853)
—
—
(6,853)
Share issuance and equity-based 
compensation plans 
48
7,575
—
—
—
7,623
Balance at June 30, 2020 
$ 
17,800
$ 
896,108
$ 
362,265
$ 
(109,264)
$ 
432
$ 
1,167,341
Balance at March 31, 2019 
$ 
13,334
$ 
96,832
$ 
413,992
$ 
(79,167)
$ 
1,372
$ 
446,363
Net income 
—
—
15,591
—
58
15,649
Amounts reported in other comprehensive 
income 
—
—
—
286
24
310
Dividends ($
0.385
 
per share) 
—
—
(5,135)
—
—
(5,135)
Share issuance and equity-based 
compensation plans 
4
770
—
—
—
774
Balance at June 30, 2019 
$ 
13,338
$ 
97,602
$ 
424,448
$ 
(78,881)
$ 
1,454
$ 
457,961
The retained earnings and total equity amounts included 
in the table above as of March 31, 2020 reflect certain immaterial 
adjustments made in the second quarter of 2020 to the Company’s 
cumulative effect of an accounting change effective 
January 1, 
2020. 
See Note 3 of Notes to Condensed Financial Statements.

 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
27 
Accumulated 
Capital in 
Other 
Common 
Excess of 
Retained 
Comprehensive 
Noncontrolling 
Stock 
Par Value 
Earnings 
Loss 
Interest 
Total 
Balance at December 31, 2019 
$ 
17,735
$ 
888,218
$ 
412,979
$ 
(78,170)
$ 
1,604
$ 
1,242,366
Cumulative effect of an accounting change 
—
—
(911)
—
—
(911)
Balance at January 1, 2020 
17,735
888,218
412,068
(78,170)
1,604
1,241,455
Net (loss) income 
—
—
(36,116)
—
50
(36,066)
Amounts reported in other comprehensive 
loss 
—
—
—
(31,094)
(131)
(31,225)
Dividends ($
0.770
 
per share) 
—
—
(13,687)
—
—
(13,687)
Acquisition of noncontrolling interest 
—
(707)
—
—
(340)
(1,047)
Distribution to noncontrolling interest 
affiliate shareholders 
—
—
—
—
(751)
(751)
Share issuance and equity-based 
compensation plans 
65
8,597
—
—
—
8,662
Balance at June 30, 2020 
$ 
17,800
$ 
896,108
$ 
362,265
$ 
(109,264)
$ 
432
$ 
1,167,341
Balance at December 31, 2018 
$ 
13,338
$ 
97,304
$ 
405,125
$ 
(80,715)
$ 
1,317
$ 
436,369
Cumulative effect of an accounting change 
—
—
(44)
—
—
(44)
Balance at January 1, 2019 
13,338
97,304
405,081
(80,715)
1,317
436,325
Net income 
—
—
29,435
—
114
29,549
Amounts reported in other comprehensive 
income 
—
—
—
1,834
23
1,857
Dividends ($
0.755
 
per share) 
—
—
(10,068)
—
—
(10,068)
Share issuance and equity-based 
compensation plans 
—
298
—
—
—
298
Balance at June 30, 2019 
$ 
13,338
$ 
97,602
$ 
424,448
$ 
(78,881)
$ 
1,454
$ 
457,961

 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
28 
The following tables show the reclassifications from and 
resulting balances of AOCI for the three and six months ended 
June 30, 
2020 and 2019:
 
Defined 
Unrealized 
Currency 
Benefit 
(Loss) Gain in 
Translation 
Pension 
Available-for 
- 
Derivative 
Adjustments 
Plans 
Sale Securities 
Instruments 
Total 
Balance at March 31, 2020 
$ 
(99,187)
$ 
(17,576)
$ 
(460)
$ 
(4,301)
$ 
(121,524)
Other comprehensive income (loss) before 
reclassifications 
10,550
(336)
2,128
(144)
12,198
Amounts reclassified from AOCI 
—
600
(93)
—
507
Current period other comprehensive income (loss) 
10,550
264
2,035
(144)
12,705
Related tax amounts 
—
(51)
(427)
33
(445)
Net current period other comprehensive income (loss) 
10,550
213
1,608
(111)
12,260
Balance at June 30, 2020 
$ 
(88,637)
$ 
(17,363)
$ 
1,148
(4,412)
$ 
(109,264)
Balance at March 31, 2019 
$ 
(49,753)
$ 
(29,845)
$ 
431
$ 
—
$ 
(79,167)
Other comprehensive (loss) income before 
reclassifications 
(543)
(79)
432
—
(190)
Amounts reclassified from AOCI 
—
732
(43)
—
689
Current period other comprehensive (loss) income 
(543)
653
389
—
499
Related tax amounts 
—
(131)
(82)
—
(213)
Net current period other comprehensive (loss) income 
(543)
522
307
—
286
Balance at June 30, 2019 
$ 
(50,296)
$ 
(29,323)
$ 
738
$ 
—
$ 
(78,881)
Defined 
Unrealized 
Currency 
Benefit 
Gain (Loss) in 
Translation 
Pension 
Available-for 
- 
Derivative 
Adjustments 
Plans 
Sale Securities 
Instruments 
Total 
Balance at December 31, 2019 
$ 
(44,568)
$ 
(34,533)
$ 
1,251
$ 
(320)
$ 
(78,170)
Other comprehensive (loss) income before 
reclassifications 
(44,069)
492
(8)
(5,315)
(48,900)
Amounts reclassified from AOCI 
—
24,966
(125)
—
24,841
Current period other comprehensive (loss) income 
(44,069)
25,458
(133)
(5,315)
(24,059)
Related tax amounts 
—
(8,288)
30
1,223
(7,035)
Net current period other comprehensive (loss) income 
(44,069)
17,170
(103)
(4,092)
(31,094)
Balance at June 30, 2020 
$ 
(88,637)
$ 
(17,363)
$ 
1,148
$ 
(4,412)
$ 
(109,264)
Balance at December 31, 2018 
$ 
(49,322)
$ 
(30,551)
$ 
(842)
$ 
—
$ 
(80,715)
Other comprehensive (loss) income before 
reclassifications 
(974)
81
2,139
—
1,246
Amounts reclassified from AOCI 
—
1,465
(139)
—
1,326
Current period other comprehensive (loss) income 
(974)
1,546
2,000
—
2,572
Related tax amounts 
—
(318)
(420)
—
(738)
Net current period other comprehensive (loss) income 
(974)
1,228
1,580
—
1,834
Balance at June 30, 2019 
$ 
(50,296)
$ 
(29,323)
$ 
738
$ 
—
$ 
(78,881)
All reclassifications related to unrealized gain (loss) in 
available-for-sale securities relate to the Company’s 
equity interest in a 
captive insurance company and are recorded in equity 
in net income of associated companies. 
The amounts reported in other 
comprehensive income for non-controlling interest are 
related to currency translation adjustments.

 
Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
29 
Note 17 – Fair Value 
Measurements
 
The Company has valued its company-owned life insurance 
policies at fair value. 
These assets are subject to fair value 
measurement as follows:
 
Fair Value 
Measurements at June 30, 2020 
Total 
Using Fair Value 
Hierarchy 
Assets 
Fair Value 
Level 1 
Level 2 
Level 3 
Company-owned life insurance 
$ 
1,711
$ 
—
$ 
1,711
$ 
—
Total 
$ 
1,711
$ 
—
$ 
1,711
$ 
—
 
Fair Value 
Measurements at December 31, 2019 
Total 
Using Fair Value 
Hierarchy 
Assets 
Fair Value 
Level 1 
Level 2 
Level 3 
Company-owned life insurance 
$ 
1,782
$ 
—
$ 
1,782
$ 
—
Total 
$ 
1,782
$ 
—
$ 
1,782
$ 
—
The fair values of Company-owned life insurance assets are based 
on quotes for like instruments with similar credit ratings and 
terms. 
The Company did not hold any Level 3 investments as of 
June 30, 2020 or December 31, 2019, respectively, 
so related 
disclosures have not been included.
 
Note 18 – Hedging Activities 
As previously disclosed in its 2019 Form 10-K, in order to 
satisfy certain requirements of the New Credit Facility as well as to 
manage the Company’s exposure 
to variable interest rate risk associated with the New Credit Facility, 
in November 2019, the 
Company entered into $
170.0
 
million notional amounts of three-year interest rate swaps. 
See Note 15 of Notes to Condensed 
Consolidated Financial Statements. 
These interest rate swaps are designated as cash flow 
hedges and, as such, the contracts are 
marked-to-market at each reporting date and any unrealized gains 
or losses are included in AOCI to the extent effective 
and 
reclassified to interest expense in the period during 
which the transaction affects earnings or it becomes 
probable that the forecasted 
transaction will not occur. 
The Company has previously used derivative financial instruments primarily 
for the purposes of hedging 
exposures to fluctuations in interest rates. 
The Company did not utilize derivatives designated as cash flow 
hedges during the three 
and six months ended June 30, 2019. 
The balance sheet classification and fair values of the 
Company’s derivative instruments, 
which are Level 2 measurements, are as 
follows:
 
Fair Value 
Condensed Consolidated 
June 30, 
December 31, 
Balance Sheet Location 
2020 
2019 
Derivatives designated as cash flow hedges: 
Interest rate swaps 
Other non-current liabilities 
$ 
5,730
$ 
415
$ 
5,730
$ 
415
The following table presents the net unrealized loss deferred to 
AOCI:
 
June 30, 
December 31, 
2020 
2019 
Derivatives designated as cash flow hedges: 
Interest rate swaps 
AOCI 
$ 
4,412
$ 
320
$ 
4,412
$ 
320
The following table presents the net gain reclassified from 
AOCI to earnings:
 
Three Months Ended 
Six Months Ended 
June 30, 
June 30, 
2020 
2019 
2020 
2019 
Amount and location of expense reclassified 
from AOCI into Expense (Effective Portion) 
Interest expense, net 
$ 
(483)
$ 
—
$ 
(465)
$ 
—

Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
30 
Interest rate swaps are entered into with a limited number 
of counterparties, each of which allows for net settlement 
of all 
contracts through a single payment in a single currency 
in the event of a default on or termination of any one 
contract. 
As such, in 
accordance with the Company’s 
accounting policy, 
these derivative instruments are recorded on a net basis within 
the Condensed 
Consolidated Balance Sheets.
 
Note 19 – Commitments and Contingencies 
The Company previously disclosed in its 2019 Form 10-K 
that AC Products, Inc. (“ACP”), a wholly owned subsidiary, 
has been 
operating a groundwater treatment system to hydraulically 
contain groundwater contamination emanating from ACP’s 
site, the 
principal contaminant of which is perchloroethylene. 
As of June 30, 2020, ACP believes it is close to meeting the 
conditions for 
closure of the groundwater treatment system, but continues 
to operate this system while in discussions with the relevant 
authorities. 
As of June 30, 2020, the Company believes that the range 
of potential-known liabilities associated with the balance 
of the ACP water 
remediation program is approximately $
0.1
 
million to $
1.0
 
million. 
The low and high ends of the range are based on the length of 
operation of the treatment system as determined 
by groundwater modeling. 
Costs of operation include the operation and maintenance 
of the extraction well, groundwater monitoring and progr 
am management. 
 
The Company previously disclosed in its 2019 Form 10-K 
that an inactive subsidiary of the Company that was acquired 
in 1978 
sold certain products containing asbestos, primarily 
on an installed basis, and is among the defendants in numerous 
lawsuits alleging 
injury due to exposure to asbestos. 
During the three and six months ended June 30, 2020, 
there have been no significant changes to 
the facts or circumstances of this previously disclosed matter, 
aside from on-going claims and routine payments associated with 
this 
litigation. 
Based on a continued analysis of the existing and anticipated 
future claims against this subsidiary, 
it is currently projected 
that the subsidiary’s total 
liability over the next 50 years for these claims is approximately 
$
0.5
 
million (excluding costs of defense). 
The Company previously disclosed in its 2019 Form 10-K 
that as a result of the closing of the Combination, the Company 
is now 
party to Houghton environmental matters related to certain 
domestic and foreign properties currently or previously 
owned. 
These 
environmental matters primarily require the Company 
to perform long-term monitoring as well as operating and maintenance 
at each 
of the applicable sites. 
During the three and six months ended June 30, 2020, there 
have been no significant changes to the facts or 
circumstances of these previously disclosed matters, aside from 
on-going monitoring and maintenance activities and routine payments 
associated with each of the sites. 
The Company continually evaluates its obligations related 
to such matters, and based on historical 
costs incurred and projected costs to be incurred over 
the next 28 years, has estimated the present value range of costs for 
all of the 
Houghton environmental matters, on a discounted 
basis, to be between approximately $
5
 
million and $
6
 
million as of June 30, 2020, 
for which $
5.8
 
million was accrued within other accrued liabilities and other 
non-current liabilities on the Company’s 
Condensed 
Consolidated Balance Sheet as of June 30, 2020. 
Comparatively, as of 
December 31, 2019, the Company had $
6.6
 
million accrued for 
with respect to these matters. 
The Company believes, although there can be no assurance 
regarding the outcome of other unrelated environmental matters, that 
it has made adequate accruals for costs associated with other 
environmental problems of which it is aware. 
Approximately $
0.1
 
million and $
0.2
 
million were accrued as of June 30, 2020 and December 
31, 2019, respectively, 
to provide for such anticipated future 
environmental assessments and remediation costs. 
The Company is party to other litigation which management 
currently believes will not have a material adverse 
effect on the 
Company’s results of 
operations, cash flows or financial condition. 
In addition, the Company has an immaterial amount of contractual 
purchase obligations.
 
Note 20 – COVID-19 Global Pandemic 
In early 2020, a global outbreak of COVID-19 occurred 
initially in China and then across all locations where the Company does 
business, and which is continuing into the second half of 
the year. 
In March 2020, the World 
Health Organization formally identified 
the COVID-19 outbreak as a pandemic. 
In an effort to halt the outbreak of COVID-19, the governments 
of impacted countries, 
including but not limited to the United States, the European 
Union, and China, have taken various actions to reduce 
its spread, 
including travel restrictions, shutdowns of businesses deemed 
nonessential, and stay-at-home or similar orders.
 
This outbreak and 
associated measures to reduce its spread have caused 
significant disruptions 
to the operations of the Company and its suppliers and 
customers. 
The disruptions and negative impact to the Company 
include significant volume declines and lower net sales first at its 
China subsidiaries in the first quarter of 2020 and 
subsequently, particularly 
beginning in the second half of March and into the second 
quarter, at many of its other 
sites globally as the global economy slowed significantly in response 
to the pandemic. 
Management 
continues to monitor the impact that the COVID-19 pandemic 
is having on the Company, 
the overall specialty chemical industry, 
and 
the economies and markets in which the Company operates.
 
 

Quaker Chemical Corporation 
Notes to Condensed Consolidated Financial Statements 
- Continued 
(Dollars in thousands, except share and per share amounts 
, 
unless otherwise stated) 
(Unaudited) 
 
31 
Further, management continues to 
evaluate how COVID-19-related circumstances, such as remote 
work arrangements, have 
affected financial reporting processes, internal control 
over financial reporting, and disclosure controls and procedures. 
While the 
circumstances have presented and are expected to continue 
to present challenges, at this time, management does not believe 
that 
COVID-19 has had a material impact on financial reporting 
processes, internal controls over financial reporting, and 
disclosure 
controls and procedures. 
The full extent of the COVID-19 pandemic related 
business and travel restrictions and changes to business and 
consumer 
behavior intended to reduce its spread are uncertain as of 
the date of this Report as COVID-19 and the responses of governmental 
authorities continue to rapidly evolve globally. 
The Company cannot reasonably estimate the magnitude of the effects 
these 
conditions will have on the Company’s 
operations as they are subject to significant uncertainties relating to 
the ultimate geographic 
spread of the virus, the incidence and severity of 
the disease, the duration or recurrence of the outbreak, the 
length of the travel 
restrictions and business closures imposed by governments 
of impacted countries, and the economic response by governments 
of 
impacted countries. 
To the extent 
that the Company’s customers and 
suppliers continue to be significantly and adversely impacted by 
COVID-19, this 
could reduce the availability, 
or result in delays, of materials or supplies to or from 
the Company, which in 
turn could significantly 
interrupt the Company’s 
business operations. 
Such impacts could grow and become more significant to the 
Company’s operations 
and the Company’s liquidity 
or financial position. 
Therefore, given the speed and frequency of continuously 
evolving developments 
with respect to this pandemic, the Company cannot reasonably 
estimate the magnitude or the full extent to which COVID-19 
may 
impact the Company’s results 
of operations, liquidity or financial position.
 
 

Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
32 
Item 2. 
Management’s Discussion and Analysis 
of Financial Condition and Results of Operations
. 
As used in this Report, the terms “Quaker Houghton 
”, the “Company”, “we” and “our” refer to Quaker Chemical 
Corporation 
(doing business as Quaker Houghton), 
its subsidiaries, and associated companies, unless the context otherwise 
requires. 
As used in 
this Report, the term Legacy Quaker refers to the Company 
prior to closing its combination with Houghton International, 
Inc. 
(“Houghton”) (herein referred to as the “Combination”) 
on August 1, 2019. 
Throughout this Quarterly Report on Form 10-Q (the 
“Report”), 
all figures presented, unless otherwise stated, reflect the results of 
operations of the combined company for the three and 
six months ended June 30, 2020 and Legacy Quaker for the 
three and six months ended June 30, 
2019.
 
Executive Summary 
Quaker Houghton is a global leader in industrial process 
fluids. 
With a presence around the world, 
including operations in over 25 
countries, our customers include thousands of the world’s 
most advanced and specialized steel, aluminum, automotive, aerospace, 
offshore, can, mining, and metalworking 
companies. 
Our high-performing, innovative and sustainable solutions are 
backed by best-
in-class technology, 
deep process knowledge, and customized services. Quaker 
Houghton is headquartered in Conshohocken, 
Pennsylvania, located near Philadelphia in the United States.
 
The Company’s second 
quarter of 2020 performance was dramatically affected 
by the COVID-19 pandemic and its impact on the 
global economy, 
including most of the Company’s 
end customers. 
However, the second quarter of 2020 
performance was also 
relatively consistent with the Company’s 
guidance as of the end of the first quarter. 
Net sales of $286.0 million in the second quarter 
of 2020 increased 39% compared to $205.9 million 
in the second quarter of 2019, due primarily to the inclusion of $142.5 
million of 
Houghton and Norman Hay plc (“Norman Hay”) net 
sales. 
Excluding Houghton and Norman Hay net sales, the Company’s 
net sales 
would have declined approximately 30% quarter-over-quarter, 
primarily driven by a decrease in sales volumes of approximately 
27% 
due to the impacts of COVID-19 and a negative impact 
from foreign exchange of 4%. 
The Company’s gross profit and 
selling, 
general and administrative expenses (“SG&A”) also increased 
due to the inclusion of Houghton and Norman Hay quarter-over-
quarter, but both were also negatively 
impacted by foreign exchange and benefited by the realization of 
cost savings associated with 
the Combination as well as the impact of lower SG&A due 
to the sales decline and further cost saving measures put in place to 
help 
offset the impacts of COVID-19.
 
The Company reported a second quarter of 2020 
net loss of $7.7 million or $0.43 per diluted share compared 
to second quarter of 
2019 net income of $15.6 million or $1.17 per diluted share. 
The second quarter of 2020 net loss was primarily driven 
by the negative 
impact of COVID-19. 
Excluding costs associated with the Combination and other non-core 
items in each period, the Company’s 
non-
GAAP earnings per diluted share were $0.21 in the 
second quarter of 2020 compared to $1.56 in the prior year second 
quarter. 
Prior 
year second quarter earnings per share do not reflect the 
additional 4.3 million shares issued as part of the consideration 
for the 
Combination. 
The Company’s adjusted EBITDA increased 
to $32.1 million in the second quarter of 2020 compared 
to $31.4 million 
in the prior year quarter primarily due to the Combination, 
the inclusion of Norman Hay and the benefits of cost savings realized 
from 
the Combination, 
which were largely offset 
by the current quarter negative impacts of COVID-19 and foreign 
exchange. 
See the Non-
GAAP Measures section of this Item below, 
as well as other items discussed in the Company’s 
Consolidated Operations Review in the 
Operations section of this Item, below.
 
During the third quarter of 2019 and in connection with the 
Combination, the Company established a new reportable 
segment 
structure that consists of four segments: (i) Americas; (ii) 
Europe, Middle East and Africa (“EMEA”); (iii) Asia/Pacific; 
and (iv) 
Global Specialty Businesses. 
The Company’s 2020 
operating performance by reportable segment reflected the 
positive impact of 
Houghton’s performance 
in all of its segments and Norman Hay in its Global Specialty 
Businesses segment. 
Without the inclusion of 
Houghton and Norman Hay, 
net sales would have been lower in all segments compared 
to the prior year, primarily driven by declines 
in volume due to the negative impacts of COVID-19 on 
the Company’s end markets and 
negative foreign currency translation in all 
segments due to a stronger U.S. dollar quarter-over-quart 
er. 
As reported, segment operating earnings were higher 
in most segments 
compared to 2019 which also reflects the inclusion of Houghton 
and Norman Hay partially offset by the negative 
impacts of COVID-
19 and the impact of fixed manufacturing 
costs on dramatically lower volumes compared to the Company’s 
normal production levels. 
Additional details of each segment’s 
operating performance are further discussed in the Company’s 
reportable segments review, 
in the 
Operations section of this Item, below.
 
The Company had net operating cash flow of approximately 
$24.5 million in the second quarter of 2020 compared $22.4 
million in 
the second quarter of 2019, resulting in an 99% increase 
in its current year-to-date net operating cash flow 
to $44.7 million compared 
to $22.4 million in the first six months of 2019. 
The increase in net operating cash flow year-over-year 
was driven by the inclusion of 
Houghton and Norman Hay earnings as well as changes 
in cash flows related to working capital. 
The key drivers of the Company’s 
operating cash flow and working capital are further discussed 
in the Company’s Liquidity 
and Capital Resources section of this Item, 
below. 
Overall, the Company’s 
second quarter results were significantly impacted by the global 
economic slowdown due to COVID-19, 
but the performance was largely consistent with 
the Company’s expectations 
in light of the COVID-19 pandemic. 
The Company saw 
significant volume declines across the globe due to the impact 
of COVID-19, certain domestic volume weakness due 
to the declines in 

Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
33 
the aerospace industry and foreign exchange headwinds 
due to a stronger U.S. dollar. 
Despite these impacts, the Company was able to 
generate significant cash flow, 
continue to pay its regular dividends, pay down its debt and 
continue to execute its integration plans for 
the Combination. 
 
The current global economic slowdown and other impacts 
due to COVID-19 pose an unprecedented challenge, but the 
Company 
expects to successfully navigate this downturn 
as the Company has demonstrated the ability, 
now and in the past, to respond quickly 
to changing market conditions. 
The Company also expects to maintain sufficient 
liquidity and compliance with debt covenants 
despite these difficult economic times. 
The Company expects that its integration synergies 
and additional cost savings actions as well 
as continuing share gain in the marketplace will help 
the Company during these challenging times, and, 
coupled with the benefit of a 
projected gradual rebound in demand in the Company’s 
end markets, 
will help drive significant adjusted EBITDA growth in 2021 
and 
2022.
 
Impact of COVID-19
 
In early 2020, the global outbreak of COVID-19 
negatively impacted all locations where the Company 
does business. 
Although 
the Company has now experienced a full quarter reflecting 
the impacts of COVID-19, the full extent of the outbreak 
and related 
business impacts still remain uncertain and, therefore, 
the full extent to which COVID-19 may impact the Company’s 
results of 
operations or financial condition is uncertain. 
This outbreak has significantly disrupted the operations of the 
Company and its 
suppliers and customers. 
The Company has experienced significant volume declines and 
lower net sales as further described in this 
section, first at its China subsidiaries in the first quarter 
of 2020 and subsequently, 
particularly beginning in the second half of March 
and into the second quarter, throughout 
the rest of the business due to the global economic slowdown brought 
on by COVID-19. 
Management continues to monitor the impact that the COVID-19 
pandemic is having on the Company, 
the overall specialty chemical 
industry and the economies and markets in which the 
Company operates. 
 
Given the speed and frequency of the continuously evolving developments 
with respect to this pandemic, the Company cannot, as 
of the date of this Report, reasonably estimate the 
magnitude or the full extent of the impact to its future results of 
operations or to the 
ability of it or its customers to resume more normal 
operations, even as certain restrictions are lifted. 
A prolonged outbreak or 
resurgence and period of continued restrictions 
on day-to-day life and business operations would likely result 
in volume declines and 
lower net sales for the later periods of 2020, as compared 
to the prior year. 
To the extent that the 
Company’s customers and suppliers 
continue to be significantly and adversely impacted by 
COVID-19, this could reduce the availability, 
or result in delays, of materials 
or supplies to or from the Company, 
which in turn could significantly interrupt the Company’s 
business operations. 
Given this 
ongoing uncertainty, 
the Company anticipates that its future results of operations, including the 
results for the remainder of 2020, 
could be significantly adversely impacted by COVID-19. 
Further, management continues to 
evaluate how COVID-19-related circumstances, such as remote 
work arrangements, have 
affected financial reporting processes and systems, internal 
control over financial reporting, and disclosure controls and 
procedures. 
While the circumstances have presented and are expected 
to continue to present challenges, at this time, management 
does not believe 
that COVID-19 has had a material impact on financial 
reporting processes, internal controls over financial reporting, 
and disclosure 
controls and procedures. 
For additional information regarding the potential impact of COVID-19, 
see Item 1A of Part II of this 
Report.
 
The Company’s top 
priority is, and especially during this pandemic remains, to protect the health 
and safety of its employees and 
customers, while working to ensure business continuity 
to meet customers’ needs:
 
●
 
Our People
 
– The Company has taken steps to protect the health and wellbeing 
of its people in affected areas through various 
actions, including enabling work at home where needed and 
possible, and employing social distancing standards, 
implementing travel restrictions where applicable, enhancing 
onsite hygiene practices, and instituting visitation restrictions 
at 
the Company’s facilities. 
The Company does not expect that it will incur material 
expenses implementing health and safety 
policies for employees, contractors, and customers.
 
 
●
 
Our Operations
 
– Currently, all of 
the Company’s 34 production 
facilities worldwide are open and operating and are deemed 
as essential businesses in the jurisdictions where they are 
operating. 
The Company believes it has been able to meet the 
needs of all its customers across the globe despite the 
current economic challenges.
 
 
●
 
Our Business Conditions
 
– The Company’s second 
quarter of 2020 results were consistent with expectations. 
Demand 
decreased as many customers reduced production levels, and in 
some cases, temporarily shut down their facilities during the 
second quarter of 2020. 
All four of the Company’s reportable 
segments showed significant declines in volumes and 
net sales 
due to COVID-19 with the Americas being the most impacted and 
Asia/Pacific being the least impacted. 
April and May 
were the worst months of the quarter as many customers 
globally were shut down or operating at reduced rates, especially 
in 
the automotive sector. 
In June, the Company began to see net sales increase in all reportable 
segments. 
The Company 
currently expects that the impact from COVID-19 in the second 
quarter of 2020 will be the most severe and expects a gradual 

Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
34 
quarterly improvement sequentially throughout the remainder of 
the year, subject to the effective containment 
of the virus 
and its effects. 
However, it remains highly uncertain 
as to how long the global pandemic and related economic challenges 
will last and when and to what extent our customers’ businesses will recover.
 
 
●
 
Our Actions
 
– The Company has taken actions to conserve cash and 
reduce costs. 
Some of the actions taken include 
eliminating all discretionary expenditures, delaying or 
freezing salary increases where legally permitted, reducing executives’ 
salaries, lowering targeted capital expenditures 
by approximately 30%, and accelerating and fine-tuning the Company’s 
integration plan. 
These initiatives have been designed and implemented so that 
the Company can successfully manage 
through this challenging situation while continuing 
to protect the health of its employees, meet customers’ needs, 
maintain 
the Company’s long 
-term competitive advantages and above-market growth, 
and enable it to continue to effectively integrate 
with Houghton. 
While the Company has taken a number of actions to protect our 
workforce, to continue to serve our 
customers with excellence and to conserve cash and 
reduce costs, which have been effective thus far, 
further actions to 
respond to the pandemic and its effects may be 
necessary as conditions continue to evolve.
 
Liquidity and Capital Resources 
At June 30, 2020, the Company had cash, cash equivalents and 
restricted cash of $341.8 million, including $19.3 million of 
restricted cash. 
Total cash, cash equivalents 
and restricted cash was $143.6 million at December 31, 2019, which 
included $20.0 
million of restricted cash. 
The $198.2 million increase in cash, cash equivalents and 
restricted cash was the net result of $168.7 
million of cash provided by financing activities and $44.7 
million of cash provided by operating activities, partially 
offset by $10.6 
million of cash used in investing activities and a $4.6 
million negative impact due to the effect of 
foreign currency translation on cash.
 
Net cash flows provided by operating activities were $44.7 
million in the first six months of 2020 compared to $22.4 
million in 
the first six months of 2019. 
The Company’s current 
year operating cash flow increase was largely due to the 
inclusion of Houghton 
and Norman Hay earnings, which were not included 
in the prior year, as well as slightly lower outflows 
related to working capital in 
the current quarter largely due to the decline 
in sales due to the impact of COVID-19 including its impact on working 
capital levels. 
The Company had higher cash dividends received from 
its associated companies year-over-year, 
including $5.0 million received from 
the Company’s joint venture 
in Korea in the first quarter of 2020.
 
Net cash flows used in investing activities were $10.6 
million in the first six months of 2020 compared to $5.8 million 
in the first 
six months of 2019. 
This increase in cash outflows was driven by higher investments in 
property, plant and equipment 
due to the 
inclusion of Houghton and Norman Hay expenditures in 
2020 including higher capital expenditures related to integrating 
the 
companies during the six months ended June 30, 
2020. 
Also, in the current year, the Company finalized 
its post-closing adjustment 
related to Norman Hay for approximately $3.2 million, 
whereas the Company had a prior year payment of $0.5 million 
to finalize the 
acquisition of certain formulations and product technology 
in the mining industry.
 
Net cash flows provided by financing activities were $168.7 million 
in the first six months of 2020 compared to cash used in 
financing activities of $35.3 million in the first six months 
of 2019. 
The $204.0 million increase in net cash flows was due primarily 
to additional borrowings of $205.5 million on the Company’s 
revolving credit facility in the current year compared to 
payments of 
$24.0 million in the prior year. 
As a precautionary measure in response to the economic uncertainty 
related to COVID-19, the 
Company drew down most of the available liquidity 
on its revolving credit facility during the second half of March 
2020, which drove 
the large change in borrowings compared 
to the prior year. 
This increase in borrowings was partially offset 
by $18.7 million of 
scheduled repayments under the Company’s 
term loan agreement. 
In addition, the Company paid $13.7 million of cash dividends 
during the first six months of 2020, a $3.8 million or 
38% increase in cash dividends compared to the prior year, 
primarily due to the 
approximately 4.3 million shares issued at closing of 
the Combination, as well as the prior year cash dividend per 
share increase 
initiated in May 2019. 
Finally, during the 
first six months of 2020, the Company used $1.0 million to 
purchase the remaining 
noncontrolling interest in its South Africa affiliate. 
Prior to this buyout, the Company’s 
South Africa affiliate made a distribution to 
the prior noncontrolling affiliate shareholder 
of approximately $0.8 million in the first six months of 
2020. 
There were no similar 
noncontrolling interest activities in the first six months 
of 2019.
 
As previously disclosed in its Annual Report on Form 10 
-K for the year ended December 31, 2019 (the “2019 Form 
10-K”), on 
August 1, 2019, the Company completed the Combination, 
whereby the Company acquired all of the issued 
and outstanding shares of 
Houghton from Gulf Houghton Lubricants, Ltd. in accordance with 
the Share Purchase Agreement dated April 4, 2017. 
The final 
purchase consideration was comprised of: (i) $170.8 million 
in cash; (ii) the issuance of approximately 4.3 million shares of 
common 
stock of the Company with par value of $1.00, comprising 
24.5% of the common stock of the Company at closing; and 
(iii) the 
Company’s refinancing 
of $702.6 million of Houghton’s 
indebtedness at closing. 
Cash acquired in the Combination was $75.8 
million. Prior to the Combination, the Company secured 
commitments from certain banks for a new credit facility 
(as amended, the 
“New Credit Facility”). 
Concurrent with the closing of the Combination on August 
1, 2019, the New Credit Facility became effective 
, 
replacing the Company’s 
previous credit facility. 
See Note 2 and Note 15 of Notes to Condensed Consolidated 
Financial Statements.
 

Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
35 
As of June 30, 2020, the Company had New Credit Facility borrowings 
outstanding of $1,109.3 million. 
As of December 31, 
2019, the Company had New Credit Facility borrowings 
outstanding of $922.4 million. 
The Company has unused capacity under the 
Revolver of approximately $15 million, net of bank 
letters of credit of approximately $8 million, as of June 30 
, 
2020. 
As mentioned 
above, the Company drew down most of the available 
capacity on the Revolver in the second half of March 2020
 
as a precautionary 
measure in response to the economic uncertainty 
related to COVID-19.
 
The Company’s other debt obligations 
are primarily industrial 
development bonds, bank lines of credit and municipality 
-related loans, which totaled $11.9 million 
as of June 30, 2020 and $12.6 
million as of December 31, 2019, respectively. 
Total unused capacity 
under these arrangements as of June 30, 2020 was 
approximately $37 million. 
The Company’s total net debt 
as of June 30, 2020 was $798.7 million. 
As of June 30, 
2020 and 
December 31, 2019, the Company was in compliance with 
all of the New Credit Facility covenants.
 
The New Credit Facility required the Company to fix its variable 
interest rates on at least 20% of its total Term 
Loans. In order to 
satisfy this requirement as well as to manage the 
Company’s exposure to variable 
interest rate risk associated with the New Credit 
Facility, in November 
2019, the Company entered into $170.0 million notional 
amounts of three-year interest rate swaps at a base rate 
of 1.64% plus an applicable margin as provided 
in the New Credit Facility, based 
on the Company’s consolidated 
net leverage ratio. 
At the time the Company entered into the swaps, and 
as of June 30, 2020, this aggregate rate was 3.1%.
 
The Company expects to realize Combination cost 
synergies on a pro forma combined company 
basis of $53 million in 2020, $65 
million in 2021 and $75 million in 2022. 
The Company estimates that it realized approximately $22 million 
of cost savings during the 
first six months of 2020 on a combined company pro 
forma basis, increasing its cumulative synergies 
realized in the eleven months 
since closing of the Combination to approximately $29 
million.
 
The Company expects to incur additional costs and 
make associated cash payments to integrate Quaker 
and Houghton and 
continue realizing the Combination’s 
total anticipated cost synergies. 
The Company expects cash payments, 
including those pursuant 
to the QH Program, described below, 
but excluding incremental capital expenditures related to the 
Combination, will generally 
approximate one-times its total anticipated cost synergies. 
The Company expects to incur these costs over a three-year 
period post-
close, with a significant portion of these costs incurred 
or expected to be incurred in 2019 and the current year. 
The Company 
incurred $16.5 million of total Combination, 
integration and other acquisition-related expenses in the first six months 
of 2020, 
including $0.8 million of accelerated depreciation, described in 
the Non-GAAP measures of this Item below. 
The Company had 
aggregate net cash outflows of approximately $13.8 million 
related to the Combination, 
integration and other acquisition-related 
expenses during the first six months of 2020. 
Comparatively, during the 
first six months of 2019, the Company incurred $10.8 million 
of total Combination, 
integration and other acquisition-related expenses, including 
$1.7 million of ticking fees, described in the Non-
GAAP Measures of this Item below, 
and aggregate net cash outflows related to these costs were $10.4 
million.
 
Quaker Houghton’s management 
approved, and the Company initiated, a global restructuring 
plan (the “QH Program”) in the 
third quarter of 2019 as part of its planned cost synergies 
associated with the Combination. 
The QH Program includes restructuring 
and associated severance costs to reduce total headcount 
by approximately 325 people globally and plans for the closure 
of certain 
manufacturing and non-manufacturing facilities. 
In connection with the plans for closure of certain manufacturing 
and non-
manufacturing facilities, the Company made a decision 
to make available for sale certain facilities during the second 
quarter of 2020 
resulting in the reclassification of approximately $11.7 
million of buildings and land to other current assets as of June 30, 
2020. 
The 
Company expects to receive amounts in excess of 
net book value for the properties held for sale. 
Additionally, as a result 
of the QH 
Program, the Company recognized $2.2 million of restructuring 
and related charges in the first six months of 2020. 
The exact timing 
and total costs associated with the QH Program will depend 
on a number of factors and is subject to change; 
however, the Company 
currently expects reduction in headcount and site closures 
will continue to occur during 2020 and 2021 under the QH Program 
and 
estimates that total costs related to the QH Program will approximate 
one-times the anticipated cost synergies realized 
under this 
program. 
The Company made cash payments related to the settlement of 
restructuring liabilities under the QH Program during the 
first six months of 2020 of approximately $9.6 million.
 
In the fourth quarter of 2018, the Company began the 
process of terminating its non-contributory U.S. pension plan (“the Legacy 
Quaker U.S. Pension Plan”). 
The Company completed the Legacy Quaker U.S. Pension 
Plan termination during the first quarter of 
2020. 
In order to terminate the Legacy Quaker U.S. Pension Plan in accordance 
with I.R.S. and Pension Benefit Guaranty 
Corporation requirements, the Company was required 
to fully fund the Legacy Quaker U.S. Pension Plan on a termination 
basis and 
the amount necessary to do so was approximately 
$1.8 million, subject to final true up adjustments. 
In July 2020, the Company 
finalized the amount of liability and related annuity 
payments and expects to receive a refund in premium of approximately 
$2 million 
in August 2020. 
In addition, the Company recorded a non-cash pension settlement 
charge at plan termination of approximately $22.7 
million.
 
As of June 30, 2020, the Company’s 
gross liability for uncertain tax positions, including interest and 
penalties, was $28.0 million. 
The Company cannot determine a reliable estimate of 
the timing of cash flows by period related to its uncertain tax 
position liability. 
However, should the entire liability 
be paid, the amount of the payment may be reduced by up 
to $8.0 million as a result of offsetting 
benefits in other tax jurisdictions.
 

Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
36 
The Company believes that its existing cash, anticipated 
cash flows from operations and available additional liquidity 
will be 
sufficient to support its operating requirements 
and fund its business objectives for at least the next twelve months, 
including but not 
limited to, payments of dividends to shareholders, costs related 
to the Combination and integration, pension plan contributions, 
capital 
expenditures, other business opportunities and other 
potential contingencies. 
The Company’s liquidity is affected 
by many factors, 
some based on normal operations of our business and 
others related to the impact of the pandemic on our business 
and on global 
economic conditions as well as industry uncertainties, which we cannot 
predict. 
We also cannot predict 
economic conditions and 
industry downturns or the timing, strength or duration 
of recoveries. 
We may seek, 
as we believe appropriate, additional debt or 
equity financing which would provide capital for corporate 
purposes, working capital funding, additional liquidity needs 
or to fund 
future growth opportunities, including possible acquisitions 
and investments. 
The timing and amount of potential capital requirements 
cannot be determined at this time and will depend 
on a number of factors, including the actual and projected 
demand for our products, 
specialty chemical industry conditions, competitive factors, 
and the condition of financial markets, among others.
 
Critical Accounting Policies and Estimates 
The Company’s critical accounting 
policies and estimates, as set forth in its 2019 Form 10-K remain 
materially consistent. 
However, due to the current impact 
as well as the volatility and uncertainty in the economic outlook 
as a result of COVID-19, the 
Company re-evaluated certain of its estimates, most notably 
its estimates and assumptions with regards to goodwill and 
other 
intangible assets during the first quarter of 2020. 
Goodwill and other intangible assets: 
The Company accounts for business combinations under 
the acquisition method of 
accounting. 
This method requires the recording of acquired assets, including 
separately identifiable intangible assets, at their 
acquisition date fair values. 
Any excess of the purchase price over the estimated fair value of 
the identifiable net assets acquired is 
recorded as goodwill. 
The determination of the estimated fair value of assets acquired 
requires management’s judgment 
and often 
involves the use of significant estimates and assumptions, 
including assumptions with respect to future cash inflows 
and outflows, 
discount rates, royalty rates, asset lives and market multiples, among 
other items. 
When necessary, the Company 
consults with 
external advisors to help determine fair value. 
For non-observable market values, the Company may determine 
fair value using 
acceptable valuation principles, including the excess earnings, 
relief from royalty, 
lost profit or cost methods. 
The Company amortizes definite-lived intangible assets on 
a straight-line basis over their useful lives. 
Goodwill and intangible 
assets that have indefinite lives are not amortized and are 
required to be assessed at least annually for impairment. 
The Company 
completes its annual goodwill and indefinite-lived intangible asset impairment 
test during the fourth quarter of each year. 
The 
Company continuously evaluates if triggering events indicate 
a possible impairment in one or more of its indefinite 
-lived or long-lived 
assets. 
As of March 31, 2020, the Company evaluated the initial impact 
of COVID-19 on the Company’s 
operations, as well as the 
volatility and uncertainty in the economic outlook as a 
result of COVID-19, 
to determine if this indicated it was more likely than not 
that the carrying value of any of the Company’s 
indefinite-lived or long-lived assets was not recoverable. 
While the impact of 
COVID-19 has already had a negative effect 
on the Company’s operations 
and was expected to significantly impact the Company’s 
full year 2020 results, in evaluating if a triggering 
event was present for one or more of the Company indefinite-lived 
or long-lived 
assets, the Company also considered the carrying value 
and estimated fair value for each asset, as well as the Company’s 
expected 
impact from COVID-19 on each specific asset. 
The Company concluded that the impact of COVID-19 
did not represent a triggering 
event as of March 31, 2020 with regards to the Company’s 
indefinite-lived and long-lived assets, except for the Company’s 
Houghton 
and Fluidcare trademark and tradename indefinite 
-lived intangible assets. 
Given the relatively short period of time between the 
fair value determination for the acquired Houghton and 
Fluidcare trademark 
and tradename indefinite-lived intangible assets as of the 
closing of the Combination on August 1, 2019, and the 2019 annual 
impairment testing date of October 1, the Company’s 
2019 annual impairment assessment concluded that the $242.0 
million carrying 
value of acquired Houghton and Fluidcare indefinite-lived 
intangible assets generally approximated fair value, with excess fair value 
of less than 5%. 
Because of the previously concluded relatively narrow gap 
between fair value and carrying value, the Company 
concluded in the first quarter of 2020 that the expected 
current year impact from COVID-19 on the Company’s 
net sales represented a 
triggering event. 
As a result of the conclusion, the Company completed an interim 
quantitative indefinite-lived intangible asset 
impairment assessment as of March 31, 2020. 
The determination of estimated fair value of the Houghton 
and Fluidcare trademark and tradename indefinite-lived assets was 
based on a relief from royalty valuation method which 
requires management’s 
judgment and often involves the use of significant 
estimates and assumptions, including assumptions with respect 
to the weighted average cost of capital (“WACC”) 
as well as projected 
net sales. 
In completing the interim quantitative impairment 
assessment as of March 31, 2020, the Company used a WACC 
assumption of approximately 10% as well as current year 
forecasted net sales and management’s 
estimates with respect to future net 
sales growth rates specific to legacy Houghton’s 
net sales. 
As a result of an increase in the WACC 
assumption as of March 31, 2020, 
compared to the prior year fourth quarter annual impairment 
assessment, and the significant current year decline in projected 
legacy 
Houghton net sales due to the impact of COVID-19, 
the Company concluded that the estimated fair values of these intangib 
le assets 
were less than their carrying values and that an 
impairment charge to write down their carrying values 
to their estimated fair values 

Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
37 
was warranted. 
This resulted in a first quarter of 2020 non-cash impairment 
charge of $38.0 million for these indefinite-lived 
intangible assets. 
The Company performed a qualitative assessment over these 
indefinite-lived intangible assets as of June 30, 2020 
and concluded that no further impairment indicators existed. 
The book value of these assets as of June 30, 2020 was $204.0 
million. 
As of June 30, 2020, the Company continued to evaluate the on 
-going impact of COVID-19 on the Company’s 
operations, and 
the volatility and uncertainty in the economic outlook as a result of 
COVID-19 to determine if again this indicated it was more 
likely 
than not that the carrying value of any of the Company’s 
reporting units or indefinite-lived or long-lived assets was not recoverable. 
The Company concluded that the impact of COVID-19 did 
not represent a triggering event as of June 30, 2020 
with regards to any of 
the Company’s repor 
ting units or indefinite-lived and long-lived assets. 
If the current economic conditions worsen or projections of 
the timeline for recovery are significantly extended, then 
the Company may conclude in the future that the impact from 
COVID-19 
requires 
the need to perform further interim quantitative impairment 
tests, which could result in additional impairment charges 
in the 
future. 
Non-GAAP Measures 
The information in this Report includes non-GAAP (unaudited) 
financial information that includes EBITDA, adjusted EBITDA, 
adjusted EBITDA margin, non-GAAP operating 
income, non-GAAP operating margin, non-GAAP net income 
and non-GAAP 
earnings per diluted share. 
The Company believes these non-GAAP financial measures 
provide meaningful supplemental information 
as they enhance a reader’s understanding of the 
financial performance of the Company, 
are indicative of future operating performance 
of the Company, 
and facilitate a comparison among fiscal periods, as the non-GAAP financial 
measures exclude items that are not 
considered indicative of future operating performance 
or not considered core to the Company’s 
operations. 
Non-GAAP results are 
presented for supplemental informational purposes only 
and should not be considered a substitute for the financial information 
presented in accordance with GAAP. 
The Company presents EBITDA which is calculated as net (loss) 
income attributable to the Company before depreciation 
and 
amortization, interest expense, net, and taxes on (loss) income 
before equity in net income of associated companies. 
The Company 
also presents adjusted EBITDA which is calculated as EBITDA 
plus or minus certain items that are not considered indicative of 
future 
operating performance or not considered core to the Company’s 
operations. 
In addition, the Company presents non-GAAP operating 
income which is calculated as operating income (loss) plus 
or minus certain items that are not considered indicative of future operating 
performance or not considered core to the Company’s 
operations. 
Adjusted EBITDA margin and non-GAAP operating 
margin are 
calculated as the percentage of adjusted EBITDA and 
non-GAAP operating income to consolidated net sales, respectively. 
The 
Company believes these non-GAAP measures provide 
transparent and useful information and are widely used by analysts, investors, 
and competitors in our industry as well as by management 
in assessing the operating performance of the Company on 
a consistent 
basis. 
Additionally, the 
Company presents non-GAAP net income and non-GAAP earnings 
per diluted share as additional performance 
measures. 
Non-GAAP net income is calculated as adjusted EBITDA, defined 
above, less depreciation and amortization, interest 
expense, net, and taxes on (loss) income before equity 
in net income of associated companies, in each cash adjusted, 
as applicable, for 
any depreciation, amortization, interest or tax impacts resulting 
from the non-core items identified in the reconciliation 
of net (loss) 
income attributable to the Company to adjusted EBITDA. 
Non-GAAP earnings per diluted share is calculated as non-GAAP net 
income per diluted share as accounted for under the 
“two-class share method.” 
The Company believes that non-GAAP net income 
and non-GAAP earnings 
per diluted share provide transparent and useful information 
and are widely used by analysts, investors, and 
competitors in our industry as well as by management in 
assessing the operating performance of the Company on a consistent 
basis. 

 
Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
38 
The following tables reconcile the Company’s 
non-GAAP financial measures (unaudited) to their most 
directly comparable 
GAAP (unaudited) financial measures (dollars in thousands unless 
otherwise noted, except per share amounts): 
Non-GAAP Operating Income and Margin Reconciliations 
Three Months Ended 
Six Months Ended 
June 30, 
June 30, 
2020 
2019 
2020 
2019 
Operating income (loss) 
$ 
2,238 
$ 
20,531 
$ 
(10,206) 
$ 
40,360 
Fair value step up of inventory sold (a) 
226 
— 
226 
— 
Houghton combination, integration and other 
 
acquisition-related expenses (b) 
8,253 
4,604 
16,529 
9,087 
Restructuring and related charges (c) 
486 
— 
2,202 
— 
Customer bankruptcy costs (d) 
— 
— 
463 
— 
Charges related to the settlement of a non-core 
equipment sale (e) 
— 
384 
— 
384 
Indefinite-lived intangible asset impairment (f) 
— 
— 
38,000 
— 
Non-GAAP operating income 
$ 
11,203 
$ 
25,519 
$ 
47,214 
$ 
49,831 
Non-GAAP operating margin (%) (m) 
3.9% 
12.4% 
7.1% 
11.9% 
 
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin 
and Non-GAAP Net Income Reconciliations 
Three Months Ended 
Six Months Ended 
June 30, 
June 30, 
2020 
2019 
2020 
2019 
Net (loss) income attributable to Quaker Chemical Corporation 
$ 
(7,735) 
$ 
15,591 
$ 
(36,116) 
$ 
29,435 
Depreciation and amortization (b)(k) 
21,158 
4,843 
42,742 
9,702 
Interest expense, net (b) 
6,811 
733 
15,272 
1,509 
Taxes on (loss) 
income before equity in net income 
 
of associated companies (l) 
3,222 
4,800 
(9,848) 
9,729 
EBITDA 
23,456 
25,967 
12,050 
50,375 
Equity income in a captive insurance company (g) 
(482) 
(390) 
(155) 
(736) 
Fair value step up of inventory sold (a) 
226 
— 
226 
— 
Houghton combination, integration and other 
 
acquisition-related expenses (b) 
7,963 
4,604 
15,766 
9,087 
Restructuring and related charges (c) 
486 
— 
2,202 
— 
Customer bankruptcy costs (d) 
— 
— 
463 
— 
Charges related to the settlement of a non-core 
equipment sale (e) 
— 
384 
— 
384 
Indefinite-lived intangible asset impairment (f) 
— 
— 
38,000 
— 
Pension and postretirement benefit costs, 
 
non-service components (h) 
341 
895 
23,866 
1,791 
Currency conversion impacts of hyper-inflationary economies (i) 
73 
(31) 
124 
163 
Adjusted EBITDA 
$ 
32,063 
$ 
31,429 
$ 
92,542 
$ 
61,064 
Adjusted EBITDA margin (%) (m) 
11.2% 
15.3% 
13.9% 
14.6% 
Adjusted EBITDA 
$ 
32,063 
$ 
31,429 
$ 
92,542 
$ 
61,064 
Less: Depreciation and amortization (b) 
20,869 
4,843 
41,980 
9,702 
Less: Interest expense, net - adjusted (b) 
6,811 
(130) 
15,272 
(216) 
Less: Taxes on (loss) 
income before equity in net income 
 
of associated companies - adjusted (j)(l) 
673 
5,787 
7,136 
11,827 
Non-GAAP net income 
$ 
3,710 
$ 
20,929 
$ 
28,154 
$ 
39,751

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
39 
Non-GAAP Earnings per Diluted Share Reconciliations 
Three Months Ended 
Six Months Ended 
June 30, 
June 30, 
2020 
2019 
2020 
2019 
GAAP (loss) earnings per diluted share attributable to 
Quaker Chemical Corporation common shareholders 
$ 
(0.43) 
$ 
1.17 
$ 
(2.03) 
$ 
2.20 
Equity income in a captive insurance company 
 
per diluted share (g) 
(0.03) 
(0.03) 
(0.01) 
(0.06) 
Fair value step up of inventory sold per diluted share (a) 
0.01 
— 
0.01 
— 
Houghton combination, integration and other 
 
acquisition-related expenses per diluted share (b) 
0.37 
0.34 
0.73 
0.69 
Restructuring and related charges per diluted 
share (c) 
0.02 
— 
0.09 
— 
Customer bankruptcy costs per diluted share (d) 
— 
— 
0.02 
— 
Charges related to the settlement of a non-core 
equipment 
 
sale per diluted share (e) 
— 
0.02 
— 
0.02 
Indefinite-lived intangible asset impairment per diluted 
share 
(f) 
— 
— 
1.65 
— 
Pension and postretirement benefit costs, 
 
non-service components per diluted share (h) 
0.01 
0.06 
0.89 
0.11 
Currency conversion impacts of hyper-inflationary 
 
economies per diluted share (i) 
0.01 
— 
0.01 
0.01 
Impact of certain discrete tax items per diluted share (j) 
0.25 
— 
0.23 
— 
Non-GAAP earnings per diluted share (n) 
$ 
0.21 
$ 
1.56 
$ 
1.59 
$ 
2.97 
(a)
 
Fair value step up of inventory sold relates to an 
expense associated with selling inventory of acquired businesses during 
the 
second quarter of 2020, 
which was adjusted to fair value as a part of purchase accounting. 
This increase to COGS is not 
indicative of the future operating performance of the 
Company. 
(b)
 
Houghton combination, 
integration and other acquisition-related expenses include certain 
legal, financial, and other advisory and 
consultant costs incurred in connection with due diligence, 
regulatory approvals, integration planning, as well as certain 
one-time 
labor costs associated with the Company’s 
acquisition-related activities. 
These costs are not indicative of the future operating 
performance of the Company. 
Approximately $2.3 million and $3.5 million in the 
three and six months ended June 30, 2019, 
respectively, of 
these pre-tax costs were considered non-deductible for the purpose of 
determining the Company’s effective 
tax 
rate, and, therefore, taxes on (loss) income before equity 
in net income of associated companies - adjusted reflects the 
impact of 
these items. 
During the three and six months 
ended June 30, 2020, the Company recorded $0.3 million and 
$0.8 million of 
accelerated depreciation related to certain of the Company’s 
facilities, which is included in the caption “Houghton 
combination, 
integration and other acquisition-related expenses” in the 
reconciliation of operating income (loss) to non-GAAP operating 
income and included in the caption “Depreciation and 
amortization” in the reconciliation of net (loss) income attributable 
to the 
Company to EBITDA, but excluded from the caption 
“Depreciation and amortization” in the reconciliation of adjusted 
EBITDA 
to non-GAAP net income attributable to the Company. 
During the three and six months ended June 30, 
2019, the Company 
incurred $0.9 million and $1.7 million, respectively, 
of ticking fees to maintain the bank commitment related 
to the Combination. 
These interest costs are included in the caption “Interest expense, 
net” in the reconciliation of net (loss) income attributable 
to the 
Company to EBITDA, but are excluded from the caption 
“Interest expense, net – adjusted” in the reconciliation of adjusted 
EBITDA to non-GAAP net income. 
See Note 2 of Notes to Condensed Consolidated Financial Statements, 
which appears in Item 
1 of this Report. 
(c)
 
Restructuring and related charges represent 
the costs incurred by the Company associated with the QH restructuring 
program 
which was initiated in the third quarter of 2019 as part 
of the Company’s plan 
to realize cost synergies associated with the 
Combination. 
These costs are not indicative of the future operating performance 
of the Company. 
See Note 7 of Notes to 
Condensed Consolidated Financial Statements, which appears 
in Item 1 of this Report. 
(d)
 
Customer bankruptcy costs represent the cost associated 
with a specific reserve for trade accounts receivable related 
to a customer 
who filed for bankruptcy protection. 
These expenses are not indicative of the future operating 
performance of the Company. 
(e)
 
Charges related to the settlement of a non-core 
equipment sale represent the pre-tax charge related to 
a one-time, uncommon, 
customer settlement associated with a prior sale of non 
-core equipment. 
These charges are not indicative of the future operating 
performance of the Company.
 

Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
40 
(f)
 
Indefinite-lived intangible asset impairment represents the 
non-cash charge taken to write down the value 
of certain indefinite-
lived intangible assets associated with the Houghton 
Combination. 
The Company has no prior history of goodwill or intangible 
asset impairments and this charge is not indicative 
of the future operating performance of the Company. 
See Note 14 of Notes to 
Condensed Consolidated Financial Statements, which app 
ears in Item 1 of this Report. 
(g)
 
Equity income in a captive insurance company represents the 
after-tax income attributable to the Company’s 
interest in Primex, 
Ltd. (“Primex”), a captive insurance company. 
The Company holds a 33% investment in and has significant 
influence over 
Primex, and therefore accounts for this interest under the 
equity method of accounting. 
The income attributable to Primex is not 
indicative of the future operating performance of the 
Company and is not considered core to the Company’s 
operations. 
(h)
 
Pension and postretirement benefit costs, non-service components 
represent the pre-tax, non-service component of the Company’s 
pension and postretirement net periodic benefit cost in 
each period. 
These costs are not indicative of the future operating 
performance of the Company. 
The six months ended June 30, 2020 includes the $22.7 
million settlement charge for the 
Company’s termination 
of the Legacy Quaker U.S. Pension Plan. 
See Note 9 of Notes to Condensed Consolidated Financial 
Statements, which appears in Item 1 of this Report. 
(i)
 
Currency conversion impacts of hyper-inflationary economies represents 
the foreign currency remeasurement impacts associated 
with the Company’s affiliates 
whose local economies are designated as hyper-inflationary 
under U.S. GAAP. 
During the three 
and six months ended June 30, 2020 and 2019, the 
Company incurred non-deductible, pre-tax charges related 
to the Company’s 
Argentine affiliates. 
These charges related to the immediate recognition 
of foreign currency remeasurement in the Condensed 
Consolidated Statements of Operations associated with 
these entities are not indicative of the future operating 
performance of the 
Company. 
See Note 1 of Notes to Condensed Consolidated Financial Statements, which 
appears in Item 1 of this Report. 
(j)
 
The impacts of certain discrete tax items included the impact of 
changes in the valuation allowance for foreign tax credits 
acquired with the Combination, changes in withholding 
tax rates and the associated impact on previously accrued 
for distributions 
at certain of the Company’s 
Asia/Pacific subsidiaries, additional reserves for uncertain 
tax positions related to tax audits at certain 
of the Company’s EMEA 
subsidiaries, as well as the offsetting impact and 
amortization of a deferred tax benefit the Company 
recorded in the fourth quarter of 2019 related to an intercompany 
intangible asset transfer. 
See Note 11 of Notes to Condensed 
Consolidated Financial Statements, which appears in Item 
1 of this Report. 
(k)
 
Depreciation and amortization for the three and six 
months ended June 30, 2020 includes $0.3 million and $0.7 
million, 
respectively, of 
amortization expense recorded within equity in net income of 
associated companies in the Company’s 
Condensed 
Consolidated Statements of Operations, which is attributable 
to the amortization of the fair value step up for the Company’s 
50% 
interest in a Houghton joint venture in Korea as a result 
of required purchase accounting. 
(l)
 
Taxes on (loss) 
income before equity in net income of associated companies – adjusted 
presents the impact of any current and 
deferred income tax expense (benefit), as applicable, of the 
reconciling items presented in the reconciliation of net (loss) income 
attributable to Quaker Chemical Corporation to adjusted 
EBITDA, and was determined utilizing the applicable rates in the taxing 
jurisdictions in which these adjustments occurred, subject 
to deductibility. 
Fair value step up of inventory sold described in (a) 
resulted in incremental taxes of less than $0.1 million during 
both the three and six months ended June 30, 2020 
. 
Houghton 
combination, 
integration and other acquisition-related expenses described 
in (b) resulted in incremental taxes of $1.5 million and 
$3.4 
million for the three and six months ended June 30, 2020, 
respectively, and $0.7 million 
and $1.6 million for the three and 
six months ended June 30, 2019, 
respectively. 
Restructuring and related charges described in (c) resulted 
in incremental taxes of 
$0.1 million and $0.5 million for the three and six months 
ended June 30, 2020. 
Customer bankruptcy costs described in (d) 
resulted in incremental taxes of $0.1 million during the 
six months ended June 30, 2020. 
Charges related to the settlement of a 
non-core equipment sale described in (e) 
resulted in incremental taxes of $0.1 million for both the three 
and six months ended 
June 30, 2019. 
Indefinite-lived intangible asset impairment described in (f) resulted 
in incremental taxes of $8.7 million during 
the six months ended June 30, 2020. 
Pension and postretirement benefit costs, non-service components 
described in (h) resulted 
in incremental taxes of $0.1 million and $8.0 million 
for the three and six months ended June 30, 2020, respectively, 
and $0.2 
million and $0.4 million for the three and six months ended 
June 30, 2019, respectively. 
Tax impact of certain 
discrete items 
described in (j) resulted in incremental taxes of $4.4 million 
and $4.0 million for the three and six months ended 
June 30, 2020. 
(m)
 
The Company calculates adjusted EBITDA margin 
and non-GAAP operating margin as the percentage 
of adjusted EBITDA and 
non-GAAP operating income to consolidated net sales. 
(n)
 
The Company calculates non-GAAP earnings per diluted share 
as non-GAAP net income attributable to the Company 
per 
weighted average diluted shares outstanding using the “two-class share 
method” to calculate such in each given period. 

 
Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
41 
Off-Balance Sheet Arrangements 
The Company had no material off-balance 
sheet items, as defined under Item 303(a)(4) of Regulation S-K as of 
June 30, 2020. 
The Company’s only 
off-balance sheet items outstanding as of June 30, 
2020 represented approximately $14 million of total bank 
letters of credit and guarantees. 
The bank letters of credit and guarantees are not significant to 
the Company’s liquidity 
or capital 
resources. 
See also Note 15 of Notes to Condensed Consolidated Financial 
Statements, which appears in Item 1 of this Report. 
Operations 
Consolidated Operations Review – Comparison of the Second 
Quarter of 2020 with the Second Quarter of 2019 
Net sales were $286.0 million in the second quarter of 
2020 compared to $205.9 million in the second quarter 
of 2019. 
The net 
sales increase of 39% 
quarter-over-quarter includes net sales from Houghton 
and Norman Hay of $142.5 million. 
Without Houghton 
and Norman Hay net sales, the Company’s 
current quarter net sales would have declined approximately 
30%, which reflects a 
decrease in sales volumes of approximately 27 
% 
and a negative impact from foreign currency translation of 4% 
partially offset by an 
increase from selling price and product mix of 1%. 
The primary driver of the volume decline in the current quarter 
was the negative 
impact of COVID-19 on global production levels. 
COGS were $188.7 million in the second quarter of 2020 
compared to $130.7 million in the second quarter of 2019 
. 
The increase 
in COGS of 44% 
was primarily due to the inclusion of Houghton and Norman 
Hay sales and associated COGS, as well as $0.3 million 
of accelerated depreciation charges and $0.2 
million of an inventory fair value step up charge 
described in the Non-GAAP Measures 
section of this Item above, partially offset by 
lower COGS on the decline in legacy Quaker net sales, described 
above. 
Gross profit in the second quarter of 2020 of $97.4 million 
increased $22.2 million or 30% from the second quarter 
of 2019, 
due 
primarily to Houghton and Norman Hay net sales, noted 
above. 
The Company’s reported gross margin 
in the current quarter was 
34.0% 
compared to 36.5% in the second quarter of 2019. 
The decrease in gross margin quarter-over-quarter 
was primarily due to the 
significantly lower volumes in the current quarter and the 
related impact from fixed manufacturing costs, as well as price 
and product 
mix largely due to lower gross margins 
in the legacy Houghton business, partially offset by 
certain COGS decreases as a result of the 
Company’s progression 
on Combination-related logistics and procurement cost savings 
initiatives. 
SG&A in the second quarter of 2020 increased $36.6 million 
compared to the second quarter of 2019 due primarily to 
additional 
SG&A from Houghton and Norman Hay. 
This increase was partially offset by lower SG&A due 
to foreign currency translation, the 
impact of the sales decline on direct selling costs, lower incentive 
compensation on reduced Company performance, the impact 
COVID-19 cost savings actions, 
including lower travel expenses, and the benefits of realized 
cost savings associated with the 
Combination. 
During the second quarter of 2020, 
the Company incurred $8.0 million of Combination, 
integration and other acquisition-related 
expenses, primarily for professional fees related to Houghton 
integration activities. 
Comparatively, the Company 
incurred $4.6 
million of expenses in the prior year second quarter, 
primarily for integration planning and regulatory approvals. 
See the Non-GAAP 
Measures section of this Item, above. 
The Company initiated a restructuring program during 
the third quarter of 2019 as part of its global plan to realize cost 
synergies 
associated with the Combination. 
The Company expects reductions in headcount and site closures under 
this program to continue 
during 2020 and 2021. 
The Company recorded additional restructuring and related 
charges of $0.5 million related to this program 
during the second quarter of 2020 and there were no similar 
restructuring charges recorded during the second 
quarter of 2019. 
See the 
Non-GAAP Measures section of this Item, above. 
Operating income in the second quarter of 2020 was $2.2 
million compared to $20.5 million in the second quarter of 2019. 
Excluding the Combination, 
integration and other acquisition-related charges, restructuring 
and related charges and other non-core 
items, the Company’s 
current quarter non-GAAP operating income decreased to $11.2 
million compared to $25.5 million in the prior 
year quarter, primarily due to 
the negative impact of COVID-19, which more than offset 
the added net sales and operating income 
from Houghton and Norman Hay and the benefits from 
cost savings related to the Combination. 
The Company had other expense, net, of $1.0 million 
in the second quarter of 2020 compared to other income, net, of 
less than 
$0.1 million in the second quarter of 2019. 
The quarter-over-quarter change was primarily driven 
by higher foreign currency 
transaction losses in the second quarter of 2020 as compared to 
the prior year second quarter, partially 
offset by lower non-service 
components of pension and postretirement benefit costs. 
Interest expense, 
net, increased $6.1 
million compared to 
the second quarter 
of 2019, as 
a result of 
additional borrowings 
under 
the Company’s term loans 
and revolving credit facility to finance the closing of the Combination 
on August 1, 2019. 

 
Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
42 
The Company’s effective 
tax rates for the second quarters of 2020 and 2019 were an expense of 
57.9% and 24.2%, respectively. 
The Company’s current 
quarter effective tax rate was driven by the impact 
of certain tax charges in the current period 
relating to 
changes in the valuation allowance for foreign tax 
credits acquired with the Combination and additional charges 
for uncertain tax 
positions resulting from certain foreign tax audits combined 
with pre-tax losses as a result of the negative impacts 
of COVID-19. 
Excluding the impact of these items as well as all other non-core 
items in each quarter, described in 
the Non-GAAP Measures section 
of this Item, above, the Company estimates that its second 
quarters of 2020 and 2019 effective tax rates would 
have been 
approximately 18% and 22%, respectively. 
The Company may experience continued volatility in its effectiv 
e 
tax rates due to several 
factors, including the timing of tax audits and the expiration 
of applicable statutes of limitations as they relate to uncertain 
tax 
positions, the unpredictability of the timing and 
amount of certain incentives in various tax jurisdictions, the treatment 
of certain 
acquisition-related costs and the timing and amount 
of certain share-based compensation-related tax benefits, among 
other factors. 
In 
addition, the foreign tax credit valuation allowance is based 
on a number of variables, including forecasted earnings, 
which may vary.
 
Equity in net income of associated companies increased $0.5 million 
in the second quarter of 2020 compared to the second 
quarter of 2019, primarily due to additional earnings 
from the Company’s 50% interest in 
a joint venture in Korea and higher earnings 
from the Company’s interest 
in a captive insurance company. 
See the Non-GAAP Measures section of this Item, above. 
Net income attributable to non-controlling interest was consistent 
at less than $0.1 million in both the second quarters of 
2020 and 
2019. 
Foreign exchange negatively impacted the Company’s 
second quarter results by approximately $0.11 
per diluted share, primarily 
due to approximately $1.9 million of higher foreign 
exchange transaction losses quarter-over-quarter as well 
as the negative impact 
from foreign currency translation on earnings due to the 
strengthening of the U.S. dollar against certain major foreign currencies 
in the 
current quarter. 
Consolidated Operations Review – Comparison of the First Six 
Months of 2020 with the First Six Months of 2019 
Net sales were $664.6 million in the first six months of 
2020 compared to $417.1 million in the first six months of 
2019. 
The net 
sales increase of 59% year-over-year includes 
net sales from Houghton and Norman Hay of $332.8 million. 
Without Houghton and 
Norman Hay net sales, the Company’s 
current year net sales would have declined approximately 20%, 
which reflects a decrease in 
sales volumes of approximately 16%, a negative impact 
from foreign currency translation of 3% and a decrease from 
selling price and 
product mix of 1%. 
Consistent with the second quarter of 2020 description above, 
the primary driver of the volume decline in the 
current year was the negative impact of COVID-19 on 
global production levels. 
COGS were $433.4 million in the first six months of 2020 
compared to $266.2 million in the first six months of 
2019. 
The 
increase in COGS of 63% was primarily due to the inclusion 
of Houghton and Norman Hay sales and associated COGS, as 
well as 
$0.8 million of accelerated depreciation charges 
and $0.2 million of an inventory fair value step up charge 
described in the Non-
GAAP Measures section of this Item above, partially 
offset by lower COGS on the decline in legacy Quaker 
net sales, described 
above. 
Gross profit in the first six months of 2020 increased $80.3 
million or 53% from the first six months of 2019, due 
primarily to the 
added Houghton and Norman Hay net sales. 
The Company’s reported 
gross margin in the current year was 34.8% compared 
to 36.2% 
in the first six months of 2019. 
The decrease in gross margin quarter-over-quarter 
was primarily the result of the same drivers 
described in the second quarter description above. 
SG&A in the first six months of 2020 increased $83.9 
million compared to the first six months of 2019 due 
primarily to additional 
SG&A from Houghton and Norman Hay, 
partially offset by the same decreases in SG&A described 
in the second quarter description 
above. 
 
During the first six months of 2020, the Company incurred 
$15.9 million of Combination, integration and other acquisition-
related expenses, primarily for professional fees related 
to Houghton integration activities. 
Comparatively, 
the Company incurred 
$9.1 million of expenses in the prior year, 
primarily for integration planning and regulatory approval 
for the Combination. 
See the 
Non-GAAP Measures section of this Item, above. 
As described above, 
the Company initiated 
a restructuring program 
during the third 
quarter of 2019 
as part of 
its global plan 
to 
realize cost synergies 
associated with 
the Combination. 
The Company recorded 
additional restructuring 
and related charges 
of $2.2 
million related to this 
program during the first 
six months of 2020 
and there were no similar 
restructuring charges recorded 
during the 
first six months of 2019. 
See the Non-GAAP Measures section of this Item, above. 
During the first quarter of 2020, the Company recorded 
a $38.0 million non-cash impairment charge to write 
down the value of 
certain indefinite-lived intangible assets associated with the 
Combination. 
This non-cash impairment charge is related to certain 
acquired Houghton trademarks and tradenames and 
is primarily the result of the current year negative impacts of 
COVID-19 on their 
estimated fair values. 
There were no impairment charges in the second quarter 
of 2020 or in the prior year. 
See the Critical 
Accounting Policies and Estimates section as well as the Non 
-GAAP Measures section, of this Item, above. 

 
Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
43 
Operating loss in the first six months of 2020 was $10.2 
million compared to operating income of $40.4 million in the 
first six 
months of 2019. 
Excluding the Combination, integration and other acquisition-related 
charges, restructuring and related charges, the 
non-cash indefinite-lived intangible asset impairment charge 
, 
and other non-core items, the Company’s 
current year non-GAAP 
operating income of $47.2 million decreased compared to 
$49.8 million in the prior year, primarily 
due to the negative impact on 
volumes due to the impact of COVID-19, which more 
than offset the added net sales and operating 
income from Houghton and 
Norman Hay and the benefits from cost savings related 
to the Combination. 
The Company’s other 
expense, net, was $22.2 million in the first six months of 2020 compared 
to $0.6 million in the prior year. 
The year-over-year increase in other expense, 
net was primarily due to the first quarter of 2020 non-cash pension 
plan settlement 
charge of $22.7 million associated with the 
termination of the Legacy Quaker U.S. Pension Plan, described 
in the Non-GAAP 
Measures section of this Item, above. 
Interest expense, net, increased $13.8 million in the first six months 
of 2020 compared to the first six months of 2019 primarily 
due to additional borrowings under the Company’s 
term loans and revolving credit facility to finance the closing 
of the Combination 
on August 1, 2019. 
The Company’s effective 
tax rates for the first six months of 2020 and 2019 were a benefit 
of 20.7% and an expense of 25.4%, 
respectively. 
The Company’s current year 
effective tax rate was impacted by the tax effect 
of certain one-time pre-tax costs as well as 
certain one-time tax 
charges and benefits in the current period including 
those related to changes in foreign tax credit valuation 
allowances, tax law changes, additional charges 
taken for uncertain tax positions taken resulting from certain 
foreign tax audits, and 
the impact of the Company’s 
termination of its Legacy Quaker U.S. Pension Plan. 
Comparatively, the prior 
year effective tax rate was 
primarily impacted by certain non-deductible costs associated 
with the Combination, partially offset by a favorable 
shift in earnings to 
entities with lower tax rates.
 
Excluding the impact of these items as well as all other non-core 
items in each year, described in the 
Non-GAAP Measures section of this Item, above, 
the Company estimates that its first six months of 2020 and 2019 
effective tax rates 
would have been approximately 21% and 23%, respectively. 
Equity in net income of associated companies increased $0.7 million 
in the first six months of 2020 compared to the first six 
months of 2019, primarily due to additional earnings 
from Houghton’s 50% interest 
in a joint venture in Korea partially offset by 
lower earnings as compared to the prior year period from 
the Company’s interest in 
a captive insurance company. 
See the Non-GAAP 
Measures section of this Item, above. 
Net income attributable to non-controlling interest was consistent 
in both the first six months of 2020 and 2019.
 
Foreign exchange negatively impacted the Company’s 
first six months of 2020 results by approximately $0.11 
per diluted share, 
primarily due to approximately $0.8 million higher foreign 
exchange transaction losses year-over-year 
as well as the negative impact 
from foreign currency translation due to the strengthening 
of the U.S. dollar in the current year period. 
Reportable Segments Review - Comparison of the Second 
Quarter of 2020 with the Second Quarter of 2019 
The Company’s reportable 
segments reflect the structure of the Company’s 
internal organization, the method by which the 
Company’s resources are 
allocated and the manner by which the chief operating decision 
maker of the Company assesses its 
performance. 
During the third quarter of 2019 and in connection with the Combination, 
the Company reorganized its executive 
management team to align with its new business structure 
which reflects the method by which the Company assesses its 
performance 
and allocates its resources. 
The Company’s current 
reportable segment structure includes four segments: (i) 
Americas; (ii) EMEA; 
(iii) Asia/Pacific; and (iv) Global Specialty Businesses. 
The three geographic segments are composed of the net 
sales and operations 
in each respective region, excluding net sales and operations managed 
globally by the Global Specialty Businesses segment, which 
includes 
the Company’s container, 
metal finishing, mining, offshore, specialty coatings, 
specialty grease and Norman Hay businesses.
 
Segment operating earnings for the Company’s 
reportable segments are comprised of net sales less COGS and SG&A directly 
related to the respective segment’s 
product sales. 
Operating expenses not directly attributable to the net 
sales of each respective 
segment are not included in segment operating earnings, 
such as certain corporate and administrative costs, Combination, integration 
and other acquisition-related expenses, and Restructuring 
and related charges. 
Other items not specifically identified with the 
Company’s reportable 
segments include interest expense, net and other (expense) income, 
net. 
All prior period information has been recast to reflect 
these four segments as the Company’s 
new reportable segments. 
See Note 
4 of Notes to Condensed Consolidated Financial Statements, 
which appears in Item 1 of this Report. 
Americas 
Americas represented approximately 28% 
of the Company’s consolidated 
net sales in the second quarter of 2020. 
The segment’s 
net sales were $80.6 million, an increase of $8.8 million 
or 12% compared to the second quarter of 2019. 
The increase in net sales 
reflects the inclusion of Houghton net sales of $38.5 
million. 
Excluding Houghton net sales, the segment’s 
net sales decrease quarter-
over-quarter of 41% was due to lower volumes of 38 
% 
and a negative impact of foreign currency translation of 5%, partially 
offset by 
increases in selling price and product mix of 2%. 
The current quarter volume decline was driven by the economic slowdown 
that 

 
Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
44 
began in late March and continued throughout the second 
quarter due to the impacts of COVID-19. 
The foreign exchange impact was 
primarily due to the weakening of the Brazilian real and 
the Mexican peso against the U.S. dollar, 
as these exchange rates averaged 
5.37 and 23.32, respectively, 
in the second quarter of 2020 compared to 3.92 and 19.11, 
respectively in the second quarter of 2019. 
This segment’s operating 
earnings were $10.3 million, a decrease of $3.7 million 
or 26% 
compared to the second quarter of 2019. 
The decrease in segment operating earnings reflects the significant 
decline in volumes due to the negative impact of COVID-19 
which 
also resulted in lower gross margins quarter 
-over-quarter driven by certain fixed manufacturing 
costs coupled with the lower volumes, 
which more than offset the operating earnings from 
Houghton in the current year quarter. 
EMEA 
EMEA represented approximately 27% 
of the Company’s consolidated 
net sales in the second quarter of 2020. 
The segment’s 
net sales were $77.7 million, an increase of $28.7 million 
or 59% 
compared to the second quarter of 2019. 
The increase in net sales 
reflects the inclusion of Houghton net sales of $40.2 
million. 
Excluding Houghton net sales, the segment’s 
net sales decrease quarter-
over-quarter of 23% was due to lower volumes of 25 
% 
and a negative impact of foreign currency translation of approximately 
1%, 
partially offset by increases in selling price and 
product mix of 3%. 
The current quarter volume decline was driven by the economic 
slowdown that began in late March and continued throughout 
the second quarter due to the impacts of COVID-19. 
The foreign 
exchange impact was primarily due to the weakening 
of the euro against the U.S. dollar as this exchange rate 
averaged 1.10 in the 
second quarter of 2020 compared to 1.12 in the second 
quarter of 2019. 
This segment’s operating earnings 
were $10.2 million, an 
increase of $1.3 million or 15% compared to the second 
quarter of 2019, 
which reflects the inclusion of Houghton net sales, partially 
offset by lower gross margins quarter 
-over-quarter as a result of fixed manufacturing costs coupled 
with lower volumes, as well as 
higher SG&A, including Houghton SG&A. 
Asia/Pacific 
Asia/Pacific represented approximately 24% 
of the Company’s consolidated 
net sales in the second quarter of 2020. 
The 
segment’s net sales were $68.4 
million, an increase of $23.6 million or 53% 
compared to the second quarter of 2019. 
The increase in 
net sales reflects the inclusion of Houghton net sales of 
$32.9 million. 
Excluding Houghton net sales, the segment’s 
net sales decrease 
of 21% 
quarter-over-quarter was driven by lower volumes of 20 
% 
and a negative impact of foreign currency translation of 3%, 
partially offset by increases in selling price and 
product mix of 2%. 
The current quarter volume decline was driven by the economic 
slowdown that began in the first quarter in China and 
in late March throughout the region due to the impacts of COVID-19. 
The 
foreign exchange impact was primarily due to the weakening 
of the Chinese renminbi against the U.S. dollar as this exchange 
rate 
averaged 7.09 in the second quarter of 2020 compared to 
6.82 in the second quarter of 2019. 
This segment’s operating earnings 
were 
$19.3 million, an increase of $7.1 million or 58% compared 
to the second quarter of 2019. 
The increase in segment operating earnings 
reflects the inclusion of Houghton net sales and 
relatively consistent gross margins, 
partially offset by higher SG&A, including 
Houghton SG&A. 
Global Specialty Businesses 
Global Specialty Businesses represented approximately 
21% of the Company’s consolidated 
net sales in the second quarter of 
2020. 
The segment’s net sales were $59.3 
million, an increase of $19.0 million or 47% 
compared to the second quarter of 2019. 
The 
increase in net sales reflects the inclusion of Houghton 
and Norman Hay net sales of $30.9 million. 
Excluding Houghton and Norman 
Hay net sales, the segment’s 
net sales would have decreased 29% 
quarter-over-quarter driven by lower volumes of 
21%, decreases in 
selling price and product mix of 5% and a negative 
impact from foreign currency translation of 3%. 
The current quarter volume 
decline was primarily due to a decrease in the Company’s 
specialty coatings business driven by Boeing’s 
decision to temporarily stop 
production of the 737 Max aircraft and continued volume 
declines due to the economic slowdown that began in 
late March 
and 
continued throughout the second quarter 
due to the impacts of COVID-
19
. 
The foreign exchange impact was primarily due to the 
weakening of the Brazilian real against the U.S. dollar 
described in the Americas section, above. 
This segment’s operating 
earnings 
were $16.4 million, an increase of $5.4 million or 49% 
compared to the second quarter of 2019. 
The increase in segment operating 
earnings reflects the inclusion of Houghton and Norman 
Hay net sales, as well as slightly higher gross margin 
due to price and product 
mix, including higher Houghton and Norman Hay 
gross margin compared to Legacy Quaker, 
partially offset by higher SG&A, 
including Houghton and Norman Hay.
 
Reportable Segments Review - Comparison of the First Six 
Months of 2020 with the First Six Months of 2019 
Americas 
Americas represented approximately 32% 
of the Company’s consolidated 
net sales in the first six months of 2020. 
The segment’s 
net sales were $210.5 million, an increase of $66.5 
million or 46% 
compared to the first six months of 2019. 
The increase in net sales 
reflects the inclusion of Houghton net sales of $101.3 
million. 
Excluding Houghton net sales, the segment’s 
net sales decrease year-
over-year of 24% 
was due to lower volumes of 21% and a negative impact of foreign 
currency translation of 4%, partially offset by 
increases in selling price and product mix of 1%. 
The current year volume decline was driven by the economic slowdown 
that began 
in late March and continued throughout the second 
quarter due to the impacts of COVID-19. 
The foreign exchange impact was 

 
Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
45 
primarily due to the weakening of the Brazilian real and 
the Mexican peso against the U.S. dollar, 
as these exchange rates averaged 
4.85 and 21.41, respectively, 
in the first six months of 2020 compared to 3.84 and 19.16, respectively 
in the first six months of 2019. 
This segment’s operating 
earnings were $39.5 million, an increase of $11.2 
million or 40% compared to the first six months of 2019. 
The increase in segment operating earnings reflects the 
including of Houghton net sales, partially offset by 
lower gross margins and 
higher SG&A, including Houghton SG&A. 
EMEA 
EMEA represented approximately 27% of the Company’s 
consolidated net sales in the first six months of 2020. 
The segment’s 
net sales were $182.5 million, an increase of $81.1 
million or 80% 
compared to the first six months of 2019. 
The increase in net sales 
reflects the inclusion of Houghton net sales of $98.1 
million. 
Excluding Houghton net sales, the segment’s 
net sales decrease year-
over-year of 17% 
was due to lower volumes of 15% and a negative impact of foreign 
currency translation of 2%, partially offset by 
increases in selling price and product mix of less than 
1%. 
The current year volume decline was driven by the 
economic slowdown 
that began in late March due to the impacts of COVID-19 
and an overall reduced production in certain EMEA countries that 
began in 
the second half of 2019 and continued into 2020. 
The foreign exchange impact was primarily due to the weakening 
of the euro against 
the U.S. dollar as this exchange rate averaged 1.10 in the 
first six months of 2020 compared to 1.13 in the first six months of 
2019. 
This segment’s operating 
earnings were $28.6 million, an increase of $10.9 
million or 61% compared to the first six months of 2019. 
The increase in segment operating earnings reflects the 
including of Houghton net sales, partially offset by 
lower gross margins and 
higher SG&A, including Houghton SG&A. 
Asia/Pacific 
Asia/Pacific represented approximately 21% of the 
Company’s consolidated net 
sales in the first six months of 2020. 
The 
segment’s net sales were $142.0 
million, an increase of $51 million or 56% compared to 
the first six months of 2019. 
The increase in 
net sales reflects the inclusion of Houghton net sales of 
$66.6 million. 
Excluding Houghton net sales, the segment’s 
net sales decrease 
of 17% 
year-over-year was driven by lower volumes 
of 15% 
and a negative impact of foreign currency translation of 3%, partially 
offset by increases in selling price and product 
mix of 1%. 
The current quarter volume decline was driven by 
the economic slowdown 
that began in the first quarter in China and in late March 
throughout the region due to the impacts of COVID-19. 
The foreign 
exchange impact was primarily due to the weakening 
of the Chinese renminbi against the U.S. dollar as this exchange 
rate averaged 
7.03 in the first six months of 2020 compared to 
6.78 in the first six months of 2019. 
This segment’s operating earnings 
were $38.8 
million, an increase of $13.8 million or 55% compared 
to the first six months of 2019. 
The increase in segment operating earnings 
reflects the including of Houghton net sales, partially 
offset by lower gross margins and higher SG&A, 
including Houghton SG&A. 
Global Specialty Businesses 
Global Specialty Businesses represented approximately 
20% of the Company’s consolidated 
net sales in the first six months of 
2020. 
The segment’s net sales were $129.6 
million, an increase of $48.9 million or 61% compared to the 
first six months of 2019. 
The increase in net sales reflects the inclusion of Houghton 
and Norman Hay net sales of $66.8 million. 
Excluding Houghton and 
Norman Hay net sales, the segment’s 
net sales would have decreased 22% year-over-year 
driven by lower volumes of 7%, decreases 
in selling price and product mix of 12% and a negative 
impact from foreign currency translation of 3%. 
The current year volume 
decline was primarily due to a decrease in the Company’s 
specialty coatings business driven by Boeing’s 
decision to temporarily stop 
production of the 737 Max aircraft and continued volume 
declines due to the economic slowdown that began in 
late March due to the 
impacts of COVID-19. 
Partially offsetting these volume declines, and contributing 
to the 
decrease in selling price and product mix 
were higher shipments of a lower priced product in the 
Company’s mining business compared 
to the prior year. 
The foreign exchange 
impact was primarily due to the weakening of the 
Brazilian real against the U.S. dollar described in the Americas 
section, above. 
This 
segment’s operating earnings 
were $37.0 million, an increase of $15.4 million or 71% 
compared to the first six months of 2019. 
The 
increase in segment operating earnings reflects the 
inclusion of Houghton and Norman Hay net sales, as well as slightly higher 
gross 
margin due to price and product mix, including 
higher Houghton and Norman Hay gross margin 
compared to Legacy Quaker, partially 
offset by higher SG&A, including Houghton and 
Norman Hay
. 
Factors That May Affect Our Future Results 
(Cautionary Statements Under the Private Securities Litigation 
Reform Act of 1995) 
Certain information included in this Report and other 
materials filed or to be filed by Quaker Chemical Corporation 
with the 
Securities and Exchange Commission (“SEC”) (as well as information 
included in oral statements or other written statements made 
or 
to be made by us) contain or may contain forward-looking 
statements within the meaning of Section 27A of the Securities Act 
of 
1933, as amended, and Section 21E of the Securities Exchange 
Act of 1934, as amended. 
These statements can be identified by the 
fact that they do not relate strictly to historical or 
current facts. 
We have based 
these forward-looking statements, including statements 
regarding the potential effects of the COVID-19 
pandemic on the Company’s 
business, results of operations, or financial condition 
and our expectations to maintain sufficient 
liquidity and remain compliant with the terms of the Company’s 
credit facility on our 
current expectations about future events. 

 
 
Quaker Chemical Corporation 
Management’s Discussion and Analysis
 
 
46 
These forward-looking statements include statements with respect 
to our beliefs, plans, objectives, goals, expectations, 
anticipations, intentions, financial condition, results of operations, 
future performance, and business, including: 
 
• 
 
the potential benefits of the Combination; 
 
• 
 
the impacts on our business as a result of the COVID-19 
pandemic and any projected global economic rebound 
or 
anticipated positive results due to Company actions taken 
in response to the pandemic; 
• 
 
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. 
Such statements include information relating to current and 
future business activities, operational matters, capital spending, 
and 
financing sources. 
From time to time, forward-looking statements are also included in 
the Company’s other periodic 
reports on Forms 
10-K, 10-Q and 8-K, press releases, and other materials released 
to, or statements made to, the public. 
Any or all of the forward-looking statements in this Report, 
in the Company’s 2019 
Form 10-K and in any other public statements 
we make may turn out to be wrong. 
This can occur as a result of inaccurate assumptions or as a consequence 
of known or unknown 
risks and uncertainties. 
Many factors discussed in this Report will be important in 
determining our future performance. 
Consequently, 
actual results may differ materially from those that might 
be anticipated from our forward-looking statements. 
We undertake 
no obligation to publicly update any forward-looking statements, 
whether as a result of new information, future 
events or otherwise. 
However, any further disclosures made 
on related subjects in the Company’s 
subsequent reports on Forms 10-K, 
10-Q, 8-K and other related filings should be consulted. 
A major risk is that demand for the Company’s 
products and services is 
largely derived from the demand for our customers’ 
products, which subjects the Company to uncertainties related 
to downturns in a 
customer’s business and unanticipated customer 
production shutdowns. 
Other major risks and uncertainties include, but are not 
limited to, the primary and secondary impacts of the COVID-19 
pandemic, including actions taken in response to the pandemic by 
various governments, which could exacerbate some 
or all of the other risks and uncertainties faced by the Company, 
including the 
potential for significant increases in raw material costs, supply 
chain disruptions, customer financial stability, 
worldwide economic 
and political conditions, foreign currency fluctuations, 
significant changes in applicable tax rates and regulations, future 
terrorist 
attacks and other acts of violence. 
Furthermore, the Company is subject to the same business cycles as those 
experienced by steel, 
automobile, aircraft, industrial equipment, and durable 
goods manufacturers. 
The ultimate significance of COVID-19 on our business 
will depend on, among other things, the extent and 
duration of the pandemic, the severity of the disease and 
the number of people 
infected with the virus, the effects on the economy 
by the pandemic, including the resulting market volatility, 
and by the measures 
taken by governmental authorities and other third 
parties restricting day-to-day life and business operations and 
the length of time that 
such measures remain in place, and governmental programs 
implemented to assist businesses impacted by the COVID-19 pandemic. 
Other factors could also adversely affect us, including 
those related to the Combination and other acquisitions and 
the integration of 
the combined company as well as other acquired businesses. 
Our forward-looking statements are subject to risks, uncertainties 
and 
assumptions about the Company and its operations that 
are subject to change based on various important factors, some 
of which are 
beyond our control. 
These risks, uncertainties, and possible inaccurate assumptions relevant 
to our business could cause our actual 
results to differ materially from expected 
and historical results. 
Therefore, we caution you not to place undue reliance 
on our forward-looking statements. 
For more information regarding these 
risks and uncertainties as well as certain additional 
risks that we face, refer to the Risk Factors section, which appears 
in Item 1A of 
this Report, as well as Item 1A in our 2019 Form 
10-K and in our quarterly and other reports filed from 
time to time with the SEC. 
This discussion is provided as permitted by the Private 
Securities Litigation Reform Act of 1995. 
Quaker Houghton on the Internet 
Financial results, news and other information about 
Quaker Houghton can be accessed from the Company’s 
website at 
https://www.quakerhoughton.com
. This site includes important information on the Company’s 
locations, products and services, 
financial reports, news releases and career opportunities. 
The Company’s periodic 
and current reports on Forms 10-K, 10-Q, 8-K, and 
other filings, including exhibits and supplemental 
schedules filed therewith, and amendments to those reports, filed with 
the SEC are 
available on the Company’s 
website, free of charge, as soon as reasonably 
practicable after they are electronically filed with or 
furnished to the SEC. 
Information contained on, or that may be accessed through, 
the Company’s website is not 
incorporated by 
reference in this Report and, accordingly, 
you should not consider that information part of this Report.

 
47 
Item 3. 
Quantitative and Qualitative Disclosures About Market 
Risk.
 
Quaker Houghton is exposed to the impact of interest 
rates, foreign currency fluctuations, changes in commodity prices 
and credit 
risk. 
The current economic environment associated with COVID-19 
has led to significant volatility and uncertainty with each of 
these 
market risks. 
Other than the impact of the COVID-19 pandemic on market 
risks generally, we believe 
there has been no other 
material change to the information disclosed in Part II, 
Item 7A, of our 2019 Form 10-K. 
See Item 1A, “Risk Factors”, of this Report 
for additional discussion of the current and potential risks associated 
with the COVID-19 pandemic. 

 
48 
Item 4. 
Controls and Procedures.
 
Evaluation of disclosure controls 
and procedures.
 
As required by Rule 13a-15(b) under the Securities Exchange 
Act of 1934, as 
amended (the “Exchange Act”), our management, 
including our principal executive officer and principal financial 
officer, has 
evaluated the effectiveness of our disclosure 
controls and procedures (as defined in Rule 13a-15(e) under the 
Exchange Act ) as of the 
end of the period covered by this Report. 
Based on that evaluation, our principal executive officer 
and our principal financial officer 
have concluded that, as of the end of the period covered by 
this Report, our disclosure controls and procedures (as defined 
in Rule 
13a-15(e) under the Exchange Act) were not effective 
as of June 30, 2020 because of the material weaknesses in our 
internal control 
over financial reporting, as described below. 
As previously disclosed in “Item 9A. Controls and Procedures.” 
in the Company’s 2019 
Form 10-K, through the process of 
evaluating risks and corresponding changes to the 
design of existing or the implementation of new controls 
in light of the significant 
non-recurring transactions that occurred during 2019, 
including the Combination, the Company identified certain deficiencies in 
its 
application of the principles associated with the Committee 
of Sponsoring Organization of the Treadway 
Commission in Internal 
Control – Integrated Framework (2013) that management 
has concluded in the aggregate constitute a material weakness. 
A material 
weakness is a deficiency, 
or combination of deficiencies, in internal control over financial reporting, 
such that there is a reasonable 
possibility that a material misstatement of annual or interim 
financial statements will not be prevented or detected on 
a timely basis. 
Specifically, management 
concluded that changes to existing controls or the implementation 
of new controls were not sufficient to 
respond to changes to the risks of material misstatement to 
financial reporting. 
As a result of this deficiency in the design and 
implementation of an effective risk assessment, this material 
weakness contributed to certain control deficiencies that 
management 
concluded result in the following additional material weaknesses: (i) 
we did not design and maintain effective 
controls over the review 
of pricing, quantity and customer data to verify that revenue 
recognized at certain locations was complete and 
accurate, and (ii) we did 
not design and maintain effective controls 
over the reliability of data used to support the reasonableness of 
certain assumptions in the 
accounting for business combinations. 
Notwithstanding these material weaknesses, the Company 
has concluded that the unaudited condensed consolidated financial 
statements included in this Report present fairly, 
in all material respects, the financial position of the Company as of 
June 30, 2020 
and December 31, 2019, and the results of its operations and 
its cash flows and changes in equity for both the three and six 
month 
periods ended June 30, 2020 and 2019, are in conformity 
with accounting principles generally accepted in the United States of 
America. 
However, these control deficiencies 
could have resulted in misstatements of interim condensed consolidated 
financial 
statements and disclosures that could have resulted 
in a material misstatement that would 
not be prevented or detected. 
Remediation Plan Activities. 
As previously disclosed in “Item 9A. Controls and Procedures.” 
in the Company’s 2019 
Form 10-K, 
the Company and its Board of Directors are committed 
to maintaining a strong internal control environment. 
During the first six 
months of 2020, management began developing its full remediation 
plan and executing what will be a multi-step remediation process 
to completely and fully remediate the material weaknesses identified 
and described above. 
The initial steps the Company has taken 
include identifying dedicated internal resources supplemented 
with third-party specialists to assist with formalizing a robust and 
detailed remediation plan and specifically completing 
an updated risk assessment, including identifying and assessing 
those risks 
attendant to the significant changes within the Company 
as a result of becoming a larger, 
more complex global organization as a result 
of the Combination. 
The Company is conducting a comprehensive review, 
and, as appropriate, is updating its existing internal control 
framework to ensure that it has identified, developed 
and deployed the appropriate business process and information 
technology 
general controls to meet the objectives and address the risks 
identified through the updated risk assessment process. 
In undertaking 
this process, the Company is identifying and will be 
implementing further modifications to strengthen its internal 
control environment. 
It is the Company’s 
goal to remediate all of the previously identified material weaknesses as 
quickly and effectively as possible, 
however, the impact of COVID-19, 
including travel restrictions and remote work arrangements has 
presented and is expected to 
continue to present challenges with regards to the timing 
of the Company’s remediation 
plan activities. 
Changes in internal control over financial 
reporting.
 
As required by Rule 13a-15(d) under the Exchange Act, 
our management, 
including our principal executive officer 
and principal financial officer, 
has evaluated our internal control over financial reporting to 
determine whether any changes to our internal control over 
financial reporting occurred during the quarter ended June 30, 2020 
that 
have materially affected, or are reasonably 
likely to materially affect, our internal control over financial 
reporting. 
Based on that 
evaluation, there were no changes that have materially 
affected, or are reasonably likely to materially affect, 
our internal control over 
financial reporting during the quarter ended June 30, 
2020. 

 
49 
PART 
II. 
OTHER INFORMATION 
Items 3, 4 and 5 of Part II are inapplicable and have been 
omitted. 
Item 1. 
Legal Proceedings.
 
Incorporated by reference is the information in Note 
19 of the Notes to the Condensed Consolidated Financial 
Statements in Part 
I, Item 1, of this Report. 
Item 1A. Risk Factors. 
In addition to the other information set forth in this Report, 
you should carefully consider the risk set forth below, 
which updates 
the risk factors previously disclosed in Part I, Item 1A 
of our 2019 Form 10-K, as well as the other risk factors 
described in the 2019 
Form 10-K, which could materially affect 
our business, financial condition or future results. 
The risk described below, 
and the risks 
described in our 2019 Form 10-K are not the only risks we 
face. 
Additional risks and uncertainties not currently known 
to us or that 
we currently deem to be immaterial also may materially 
and adversely affect our business, financial condition 
or operating results. 
The outbreak of COVID-19 and its impact on business and 
economic conditions have negatively affected 
our business, results of 
operations and financial condition and the extent and 
duration of those effects is uncertain. 
Beginning in early 2020, there has been an outbreak 
of COVID-19, initially in China and which has spread 
globally, including 
generally all locations where the Company does business. 
In March 2020, the World 
Health Organization formally identified the 
COVID-19 outbreak as a pandemic. 
The COVID-19 pandemic, including the fear of exposure 
to and the actual effects of the illness, 
together with the measures implemented to reduce its spread, 
including travel restrictions, shutdowns of businesses deemed 
nonessential, and large gatherings and shelter 
-in-place or similar orders, have significantly impacted the global 
economy. 
The 
pandemic has disrupted global supply chains, lowered 
equity market valuations, created significant volatility and disruption 
in 
financial markets, and increased unemployment levels. 
In addition, it has resulted in temporary closures of many businesses, and 
although many of the businesses have subsequently re-opened, 
they may be operating at reduced capacity, 
while other closures may be 
prolonged or become permanent. 
The scale and scope of the COVID-19 outbreak, the resulting 
pandemic, and the primary and secondary impacts on 
the economy 
and financial markets have had a significant disruption 
on the operations of the Company and its suppliers and 
customers and have 
adversely affected the Company’s 
results of operations and financial condition during the first six months 
of 2020 as further described 
in Management’s Discussion and 
Analysis of Financial Condition and Results of Operations included 
in this Report. 
The Company 
has experienced disruptions as a result of COVID-19, 
first at its China subsidiaries in the first quarter of 2020 
and subsequently, 
particularly beginning late March and continuing into the 
second quarter of 2020, throughout the rest of the business due 
to the global 
economic slowdown. 
We have experienced, 
and may experience in the future, temporary site or facility closures 
at our own facilities 
or those of our customers in response to government mandates 
in certain jurisdictions in which we operate. 
We may also be required 
to close certain of our facilities for the safety of our 
employees in response to positive diagnoses for COVID-19. 
Even in facilities that 
are not closed, we could be affected by reductions 
in employee availability and productivity, 
changes in operating procedures, and 
increased costs
. 
The Company anticipates that its future results of operations, 
including the results for the remainder of 2020 may 
continue to be adversely impacted by COVID-19. 
In particular, the spread of COVID-19 
and efforts to contain the virus have had the 
following additional effects, which are likely 
to increase or become exacerbated the longer the crisis continues: 
●
 
reduced the demand for our products and services as many 
customers have reduced production levels; 
●
 
driven declines in volume and net sales across all reportable 
segments; 
●
 
required us to adjust certain of our facility operating procedures 
and to take steps to reduce costs and preserve liquidity; 
and 
●
 
negatively affected the estimated fair value of 
certain of the Company’s reporting 
units or other indefinite-lived or long-lived 
assets, namely the Company’s 
Houghton and Fluidcare trademark and tradename indefinite-lived 
intangible assets, such that 
their estimated fair values were less than their carrying 
values and required adjustments. 
The spread of COVID-19, a prolonged outbreak, 
and efforts to contain the virus in some cases have already 
or could in the future 
also: 
●
 
limit the availability and reduce the productivity of our 
employees; 
●
 
impact our financial reporting systems and processes, internal control 
over financial reporting, and disclosure controls and 
procedures, including our ability to ensure information 
required to be disclosed in our reports under the Exchange Act 
is 
recorded, processed, summarized and reported within the 
time periods specified in the SEC’s rules 
and forms and that such 
information is accumulated and communicated to our 
management, including our chief executive officer 
and chief financial 
officer, as appropriate, 
to allow for timely decisions regarding required disclosure; 
●
 
present challenges as a result of travel restrictions and remote work 
arrangements, including the timing of our ERP system 
implementations which are an integral part of our integration 
activities; the timing of the Company’s 
remediation plan 
activities as described in Item 4 Controls and Procedures, of 
this Report; and the Company’s 
first year assessment of internal 
control over financial reporting for Houghton and Norman 
Hay, including the 
implementation of new or enhanced business 

 
50 
process and information technology general controls, 
as necessary, to meet the 
objectives and address the risks identified 
once the Company completes its initial design assessment; 
●
 
increase our costs as a result of emergency 
measures that we may take or that may be imposed on us by regulatory 
authorities; 
●
 
cause a delay in customer payments or cause a deterioration 
of the credit quality of other counterparties that could 
result in 
credit losses or force both customer and supplier bankruptcies; 
●
 
cause delays and disruptions in the availability of and timely 
delivery of materials and components used in our operations; 
●
 
result in our inability to meet the requirements of the covenants 
in our existing credit facility, 
including covenants regarding 
our consolidated interest coverage ratio and consolidated 
net leverage ratio, or increase our cost of capital or make additional 
capital, including the refinancing of our credit facility, 
more difficult or available only on terms less favorable 
to us; 
●
 
impact our liquidity position and cost of and ability to access funds 
from financial institutions and capital markets; 
●
 
negatively affect the estimated fair values of the 
Company’s reporting units or other 
indefinite-lived or long-lived assets; and 
●
 
cause other risks to impact us, including the risks described 
in the “Risk Factors” section of the 2019 Form 10-K. 
While the Company has implemented business continuity 
and emergency response plans to permit it to continue 
to provide 
services and products to customers and support the 
Company’s operations, while also taking 
health and safety measures such as 
implementing worker distancing measures, enhancing 
on-site hygiene measures, and using a remote workforce where 
possible, there 
can be no assurance that the continued spread of COVID-19 and 
efforts to contain the virus (including, but not limited 
to, voluntary 
and mandatory quarantines, restrictions on travel, limiting 
gatherings of people, and reduced operations and extended 
closures of 
many businesses and institutions) will not further impact 
our business, results of operations and financial condition. 
However, given 
the unprecedented and continually evolving developments 
with respect to this pandemic, the Company cannot, as of the 
date of this 
Report, reasonably estimate the magnitude or full extent 
of the impact to its future results of operations or to the 
ability of it or its 
customers to resume more normal operations. 
A further prolonged outbreak or resurgence and period 
of continued restrictions on day-
to-day life and business operations would likely result in 
volume declines and lower net sales for later periods in 2020 
as well, when 
compared to the prior year. 
The ultimate significance of COVID-19 on our business 
will depend on, among other things, the extent and duration 
of the 
pandemic, the severity of the disease and the number 
of people infected with the virus, the ultimate geographic 
spread of the virus, the 
effects on the economy by the pandemic, 
including market volatility, and 
by the measures taken by governmental authorities and other 
third parties restricting day-to-day life and the length 
of time that such measures remain in place, and laws or government 
al programs 
implemented to assist businesses impacted by the COVID-19 
pandemic, such as fiscal stimulus and other legislation designed 
to 
deliver monetary aid and other relief. 
The likelihood of a further impact on the Company that could 
be material increases the longer 
the virus impacts economic activity levels in the United 
States and across the world. 
Item 2. 
Unregistered Sales of Equity Securities and Use of 
Proceeds. 
Recent Sales of Unregistered 
Securities 
On May 7, 2020, the Company acquired Tel 
Nordic ApS (“TEL”), a company that specializes in lubricants and 
engineering 
primarily in high pressure aluminum die casting for 
its EMEA reportable segment. 
Consideration paid was in the form of a 
convertible promissory note in the amount of 20 
.0 million DKK, or approximately $2.9 million, that was subsequently 
converted on 
May 20, 2020 into 17,894 shares of the Company’s 
common stock based on the closing market price of the common 
stock on May 19, 
2020, as reported on the New York 
Stock Exchange, and the conversion rate of Danish Kroner into 
U.S. dollars as reported on that 
day in the Wall 
Street Journal. 
The issuance of the convertible promissory note and the 
shares issued thereunder were made in a 
private placement transaction in reliance upon Regulation 
D promulgated under the Securities Act of 1933, as amended, 
based on the 
written representations from TEL regarding its “accredited 
investor” status as defined in Rule 501 of Regulation D. 
The Company 
subsequently registered the resale by the holder of these 
shares under the Securities Act of 1933, as amended. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
51 
Purchases of Equity Securities by 
the Company 
The following table sets forth information concerning 
shares of the Company’s 
common stock acquired by the Company during 
the period covered by this Report: 
(c) 
(d) 
Total 
Number of 
Approximate Dollar 
(a) 
(b) 
Shares Purchased 
Value of 
Shares that 
Total 
Number 
Average 
as part of 
May Yet 
be 
of Shares 
Price Paid 
Publicly Announced 
Purchased Under the 
Period 
Purchased (1) 
Per Share (2) 
Plans or Programs 
Plans or Programs (3) 
April 1 - April 30 
— 
$ 
— 
— 
$ 
86,865,026 
May 1 - May 31 
72 
$ 
159.15 
— 
$ 
86,865,026 
June 1 - June 30 
3,858 
$ 
189.73 
— 
$ 
86,865,026 
Total 
3,930 
$ 
189.17 
— 
$ 
86,865,026 
 
(1)
 
All of these shares were acquired from employees upon 
their surrender of Quaker Chemical Corporation shares in payment 
of 
the exercise price of employee stock options exercised or 
for the payment of taxes upon exercise of employee stock 
options 
or the vesting of restricted stock. 
(2)
 
The price paid for shares acquired from employees pursuant 
to employee benefit and share-based compensation 
plans is, in 
each case, based on the closing price of the Company’s 
common stock on the date of exercise or vesting as specified by the 
plan pursuant to which the applicable option or restricted 
stock was granted. 
(3)
 
On May 6, 2015, the Board of Directors of the Company 
approved, and the Company announced, a share repurchase 
program, pursuant to which the Company is authorized 
to repurchase up to $100,000,000 of Quaker Chemical Corporation 
common stock (the “2015 Share Repurchase Program”) 
and has no expiration date. 
There were no shares acquired by the 
Company pursuant to the 2015 Share Repurchase Program 
during the quarter ended June 30, 2020. 
Limitation on the Payment of Dividends 
The New Credit Facility has limitations on the payment 
of dividends and other so-called restricted payments. 
See Note 15 of 
Notes to Condensed Consolidated Financial Statements, in 
Part I, Item I, of this Report. 
 
 

 
 
52 
Item 6. 
Exhibits.
 
(a) Exhibits 
3.1 
– 
Amended and Restated Articles of Incorporation (as amended through July 24, 2019). Incorporated by reference to
Exhibit 3.1 as filed by the Registrant with its quarterly report on Form 10-Q filed on August 1, 2019.
3.2 
– 
Restated By-laws (effective May 6, 2015, as amended through March 27, 2020). Incorporated by reference to Exhibit
3.2 as filed by the Registrant within its quarterly report on Form 10-Q filed on May 11, 2020.
4.1 
– 
Convertible Note, dated May 7, 2020, by and among Quaker Chemical Corporation, TEL Nordic Holding ApS, and Lars
Skogstad-Jensen. Incorporated by reference to Exhibit 4.3 as filed by Registrant on Form S-3 on May 19. 2020.
10.1 
– 
Amendment No 2, effective February 10, 2020, to the Quaker Houghton Retirement Savings Plan.*†
10.2 
– 
Amendment No 3, effective April 17, 2020, to the Quaker Houghton Retirement Savings Plan.*†
31.1 
– 
Certification of Chief Executive Officer of the Company pursuant to Rule 13a-14(a) of the Securities Exchange Act of
1934.*
31.2 
– 
Certification of Chief Financial Officer of the Company pursuant to Rule 13a-14(a) of the Securities Exchange Act of
1934.*
32.1 
– 
Certification of Chief Executive Officer of the Company Pursuant to 18 U.S. C. Section 1350
.**
32.2 
– 
Certification of Chief Financial Officer of the Company Pursuant to 18 U.S. C. Section 1350
.**
101.INS 
– 
Inline XBRL Instance Document* 
101.SCH 
– 
Inline XBRL Taxonomy 
Extension Schema Document* 
101.CAL 
– 
Inline XBRL Taxonomy 
Extension Calculation Linkbase Document* 
101.DEF 
– 
Inline XBRL Taxonomy 
Extension Definition Linkbase Document* 
101.LAB 
– 
Inline XBRL Taxonomy 
Extension Label Linkbase Document* 
101.PRE 
– 
Inline XBRL Taxonomy 
Extension Presentation Linkbase Document* 
104 
– 
Cover Page Interactive Data File (formatted as Inline XBRL and 
contained in Exhibit 101.INS)* 
* Filed herewith. 
** Furnished herewith. 
† Management contract or compensatory plan. 
 
 
********* 
 
Pursuant to the requirements of the Securities Exchange Act 
of 1934, the registrant has duly caused this report to be signed 
on its behalf by the undersigned thereunto duly authorized. 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
 
(Registrant) 
 
 
 
 
 
 
 
/s/ Mary Dean Hall 
Date: August 5, 2020 
 
 
 
Mary Dean Hall, Senior Vice President, 
Chief Financial 
Officer and Treasurer 
(officer duly authorized on behalf 
of, and principal financial officer of, the Registrant) 
 