Condensed Financial Information

6 Months Ended

Jun. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

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.