Taxes on Income	12 Months Ended
Taxes on Income	Dec. 31, 2020
Taxes on Income and Uncertain Tax Positions [Abstract]
Taxes on Income [Text Block]	Note 10 – Taxes on Income On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as U.S. Tax Reform. U.S. Tax Reform implemented a new system of taxation for non-U.S. earnings which eliminated U.S. federal income taxes on dividends from certain foreign subsidiaries and imposed a one-time transition tax on the deemed repatriation of undistributed earnings of certain foreign subsidiaries that is payable over eight years. Following numerous regulations, notices, and other formal guidance published by the Internal Revenue Service (“I.R.S.”), U.S. Department of Treasury, and various state taxing authorities, the Company has completed its accounting for the transition tax and has elected to pay its $ 15.5 million transition tax in installments over eight years as permitted under U.S. Tax Reform. As of December 31, 2020, $ 7.0 million in installments have been paid with the remaining $ 8.5 million to be paid through installments in future years. As of December 31, 2020, the Company has a deferred tax liability of $ 5.9 million on certain undistributed foreign earnings, which primarily represents the Company’s estimate of the non-U.S. income taxes the Company will incur to ultimately remit certain earnings to the U.S. The Company’s reinvestment assertions are further explained below. Taxes on income before equity in net income of associated companies for the years ended December 31, 2020, 2019 and 2018 are as follows: 2020 2019 2018 Current: Federal $ (1,359) $ (239) $ 6,583 State 1,171 352 (1,844) Foreign 33,173 26,213 12,114 32,985 26,326 16,853 Deferred: Federal (28,437) (9,267) 7,859 State (3,087) (396) (173) Foreign (6,757) (14,579) 511 Total $ (5,296) $ 2,084 $ 25,050 The components of earnings before income taxes for the years ended December 31, 2020, 2019 and 2018 are as follows: 2020 2019 2018 U.S. $ (66,585) $ (46,697) $ 27,387 Foreign 93,724 75,601 55,711 Total $ 27,139 $ 28,904 $ 83,098 Total deferred tax assets and liabilities are composed of the following as of December 31, 2020 and 2019: 2020 2019 Retirement benefits $ 15,237 $ 15,142 Allowance for doubtful accounts 2,316 2,253 Insurance and litigation reserves 842 1,002 Performance incentives 5,914 7,213 Equity-based compensation 1,282 1,050 Prepaid expense 756 2,976 Insurance settlement — 3,895 Operating loss carryforward 16,693 16,044 Foreign tax credit and other credits 24,873 34,384 Interest 16,812 11,479 Restructuring reserves 1,121 2,167 Right of use lease assets 9,346 10,015 Royalties and license fees — 2,156 Inventory reserves 2,225 2,163 Research and development 7,974 2,580 Other 3,005 1,317 108,396 115,836 Valuation allowance (21,511) (13,834) Total deferred tax assets, net $ 86,885 $ 102,002 Depreciation 15,473 17,754 Foreign pension and other 1,807 1,269 Amortization and other 222,794 254,359 Lease liabilities 9,151 9,965 Outside basis in equity investment 7,938 6,776 Unremitted Earnings 5,919 8,228 Total deferred tax liabilities $ 263,082 $ 298,351 The Company has $ 11.3 million of deferred tax assets related to state net operating losses. A partial valuation allowance of $ 8.0 million has been established against this amount resulting in a net $ 3.3 million expected future benefit. Management analyzed the expected impact of the reversal of existing taxable temporary differences, considered expiration dates, analyzed current state tax laws, and determined that $ 3.3 million of state net operating loss carryforwards will be realized based on the reversal of deferred tax liabilities. These state net operating losses are subject to various carryforward periods of 5 years to 20 years or an indefinite carryforward period. An additional $ 1.0 million of valuation allowance was established for other net state deferred tax assets. The Company has $ 5.4 million of deferred tax assets related to foreign net operating loss carryforwards. A partial valuation allowance of $ 1.7 million has been established against the $ 5.4 million due to the expected expiration of these losses before they are able to be utilized. These foreign net operating losses are subject to various carryforward periods with the majority having an indefinite carryforward period. An additional partial valuation allowance of $ 0.6 million has been established against certain other foreign deferred tax assets. 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. As of December 31, 2019, the foreign tax credit carry forward was $ 33.7 million with an $ 8.2 million valuation allowance recorded against the deferred tax asset. Management analyzed the expected impact of the utilization of foreign tax credits based on certain assumptions such as projected U.S. taxable income, overall domestic loss recapture, and annual limitations due to the ownership change under the Internal Revenue Code. Consequently, as of December 31, 2020, the foreign tax credit carry forward was $ 24.9 million with a $ 10.2 million valuation allowance reflecting the amount of credits that are not expected to be utilized before expiration. The Company also acquired disallowed interest deferred tax assets of $ 14.0 million as part of the Combination. Disallowed interest may be carried forward indefinitely. Management analyzed the expected impact of the utilization of disallowed interest carryforwards based on projected US taxable income and determined that the Company will utilize all expected future benefits by 2022. As of December 31, 2020, the Company had a net realizable disallowed interest carryforward of $ 15.7 million on its balance sheet. As of December 31, 2020, the Company had deferred tax liabilities of $ 222.8 million primarily related to the step-up in intangibles resulting from the Combination and Norman Hay acquisition. As part of the Combination, the Company acquired a 50 % interest in the Korea Houghton Corporation joint venture and has recorded a $ 7.9 million deferred tax liability for its outside basis difference. The following are the changes in the Company’s deferred tax asset valuation allowance for the years ended December 31, 2020, 2019 and 2018: Effect of Balance at Purchase Additional Allowance Exchange Balance Beginning Accounting Valuation Utilization Rate at End of Period Adjustments Allowance and Other Changes of Period Valuation Allowance Year ended December 31, 2020 $ 13,834 $ 7,148 $ 2,738 $ (2,153) $ (56) $ 21,511 Year ended December 31, 2019 $ 7,520 $ 13,752 $ 832 $ (8,227) $ (43) $ 13,834 Year ended December 31, 2018 $ 7,401 $ — $ 650 $ (471) $ (60) $ 7,520 The Company’s net deferred tax assets and liabilities are classified in the Consolidated Balance Sheets as of December 31, 2020 and 2019 as follows: 2020 2019 Non-current deferred tax assets $ 16,566 $ 14,745 Non-current deferred tax liabilities 192,763 211,094 Net deferred tax liability $ (176,197) $ (196,349) The following is a reconciliation of income taxes at the Federal statutory rate with income taxes recorded by the Company for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Income tax provision at the Federal statutory tax rate $ 5,699 $ 6,070 $ 17,458 Unremitted earnings (2,308) (4,383) 7,857 Tax law changes / reform (1,059) (416) (3,118) Sub part F / Global intangible low taxed income 5,140 574 2,095 Pension settlement (2,247) — — Foreign derived intangible income (7,339) (1,699) (1,034) Non-deductible acquisition expenses 131 1,743 1,019 Withholding taxes 7,809 8,621 1,161 Foreign tax credits (4,699) (3,787) (1,911) Share-based compensation 335 (540) 259 Foreign tax rate differential 596 920 1,081 Research and development credit (475) (306) (230) Uncertain tax positions 1,990 899 (79) State income tax provisions, net (2,245) (117) 196 Non-deductible meals and entertainment 290 318 415 Intercompany transfer of intangible assets (4,384) (5,318) — Miscellaneous items, net (2,530) (495) (119) Taxes on income before equity in net income of associated companies $ (5,296) $ 2,084 $ 25,050 Pursuant to U.S. Tax Reform, the Company recorded a $ 15.5 million transition tax liability for U.S. income taxes on the undistributed earnings of non-U.S. subsidiaries. However, the Company may also be subject to other taxes, such as withholding taxes and dividend distribution taxes, if these undistributed earnings are ultimately remitted to the U.S. As a result of the Combination, additional third-party debt was incurred resulting in the Company re-evaluating its global cash strategy in order to meet its goal of reducing leverage in upcoming years. As of December 31, 2020, the Company has a deferred tax liability $ 5.9 million, which primarily represents the estimate of the non-U.S. taxes the Company will incur to ultimately remit these earnings to the U.S. It is the Company’s current inten tion to reinvest its additional undistributed earnings of non-U.S. subsidiaries to support working capital needs and certain other growth initiatives outside of the U.S. The amount of such undistributed earnings at December 31, 2020 was approximately $ 322.6 million. Any tax liability which might result from ultimate remittance of these earnings is expected to be substantially offset by foreign tax credits (subject to certain limitations). It is currently impractical to estimate any such incremental tax expense. As of December 31, 2020, the Company’s cumulative liability for gross unrecognized tax benefits was $ 22.2 million. The Company had accrued approximately $ 3.9 million for cumulative penalties and $ 3.0 million for cumulative interest as of December 31, 2020. As of December 31, 2019, the Company’s cumulative liability for gross unrecognized tax benefits was $ 19.1 million. The Company had accrued approximately $ 3.1 million for cumulative penalties and $ 2.3 million for cumulative interest as of December 31, 2019. The Company continues to recognize interest and penalties associated with uncertain tax positions as a component of tax expense on income before equity in net income of associated companies in its Consolidated Statements of Income. The Company recognized an expense of less than $ 0.1 million for penalties and $ 0.6 million for interest (net of expirations and settlements) in its Consolidated Statement of Income for the year ended December 31, 2020, a credit of $ 0.2 million for penalties and an expense of $ 0.2 million for interest (net of expirations and settlements) in its Consolidated Statement of Income for the year ended December 31, 2019, and a credit of $ 0.2 million for penalties and a credit of $ 0.1 million for interest (net of expirations and settlements) in its Consolidated Statement of Income for the year ended December 31, 2018. The Company estimates that during the year ending December 31, 2021, it will reduce its cumulative liability for gross unrecognized tax benefits by approximately $ 1.5 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, 2021. A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018, respectively, is as follows: 2020 2019 2018 Unrecognized tax benefits as of January 1 $ 19,097 $ 7,050 $ 6,761 Increase (decrease) in unrecognized tax benefits taken in prior periods 2,025 (28) (183) Increase in unrecognized tax benefits taken in current period 3,095 1,935 2,023 Decrease in unrecognized tax benefits due to lapse of statute of limitations (3,659) (1,029) (1,292) Increase in unrecognized tax benefits due to acquisition 597 11,301 — Increase (decrease) due to foreign exchange rates 997 (132) (259) Unrecognized tax benefits as of December 31 $ 22,152 $ 19,097 $ 7,050 The amount of net unrecognized tax benefits above that, if recognized, would impact the Company’s tax expense and effective tax rate is $ 14.7 million, $ 13.3 million and $ 2.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. 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 Italy from 2006 , Brazil from 2011 , Mexico, the Netherlands and China from 2015 , Spain, Germany and the United Kingdom from 2016 , Canada and the U.S. from 2017 , India from fiscal year beginning April 1, 2018 and ending March 31, 2019, and various U.S. state tax jurisdictions from 2011 . 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 filed for competent authority relief from these assessments under the Mutual Agreement Procedures (“MAP”) of the Organization for Economic Co-Operation and Development for all years except 2007. In 2020, the respective tax authorities in Italy, Spain, and Netherland reached agreement with respect to the MAP proceedings, which the Company has accepted. As a result, the Company has recorded an estimated tax liability of $ 0.9 million to finalize these proceedings, net of refunds expected to be received from the Spanish and Dutch tax authorities. As of December 31, 2020, the Company believes it has adequate reserves for uncertain tax positions with respect to these and all other audits. 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 of December 31, 2020, the Company has a $ 5.8 million reserve for uncertain tax positions relating to matters related to this audit. Since this reserve relates to the tax periods prior to August 1, 2019, the tax liability was established through purchase accounting related to the Combination. The Company has also submitted an indemnification claim against funds held in escrow by Houghton’s former owners and as a result, a corresponding $ 5.8 million indemnification receivable has also been established through purchase accounting. Houghton Deutschland GmbH is also under audit by the German tax authorities for tax years 2015-2017. Based on preliminary audit findings, primarily related to transfer pricing, the Company has recorded a reserve for $ 0.9 million as of December 31, 2020. Of this amount, $ 0.8 million relates to tax periods prior to the Combination and therefore the Company has submitted an indemnification claim with Houghton’s former owners for any tax liabilities arising pre-Combination. As a result, a corresponding $ 0.8 million indemnification receivable has also been established to offset the $ 0.8 million tax liability.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.