Income Taxes and Uncertain Income Tax Positions	6 Months Ended
Jun. 30, 2021
Taxes on Income and Uncertain Tax Positions [Abstract]
Taxes on Income [Text Block]	Note 11 – Income Taxes and Uncertain Income Tax Positions The Company’s effective tax rates for the three and six months ended June 30, 2021 were an expense of 32.2 % and 28.4 %, respectively, compared to an expense of 57.9 % and a benefit of 20.7 % for the three and six months ended June 30, 2020, respectively. The Company’s current year effective tax rates were largely impacted by the sale of certain held-for-sale real property assets related to the Combination, changes in foreign tax credit valuation allowances, tax law changes in a foreign jurisdiction and the income tax impacts of certain non-income tax credits recorded by the Company’s Brazilian subsidiaries described in Note 19 of Notes to Condensed Consolidated Financial Statements. Comparatively, the prior year effective tax rates were impacted by the tax effect of certain one-time pre-tax losses as well as certain tax charges and benefits in the prior year period including those related to changes in foreign tax credit valuation allowances, tax law changes in a foreign jurisdiction, changes in uncertain tax positions and the tax impacts of the Company’s termination of its Legacy Quaker U.S. Pension Plan. As of December 31, 2020, the Company had a deferred tax liability of $ 5.9 million, which primarily represents the Company’s estimate of non-U.S. taxes it will incur to repatriate certain foreign earnings to the U.S. The balance as of June 30, 2021 was $ 6.5 million. As of June 30, 2021, the Company’s cumulative liability for gross unrecognized tax benefits was $ 24.0 million, an increase of $ 1.8 million from the cumulative liability accrued as of December 31, 2020. The Company continues to recognize interest and penalties associated with uncertain tax positions as a component of taxes on income (loss) before equity in net income of associated companies in its Condensed Consolidated Statements of Operations. The Company recognized an expense for interest of approximately $ 0.2 million and $ 0.2 million and a benefit of less than $ 0.1 million and $ 0.2 million for penalties in its Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2021, respectively, and recognized an expense of $ 0.6 million and $ 0.6 million for interest and an expense of $ 0.6 million and $ 0.5 million for penalties in its Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2020 , respectively. As of June 30, 2021, the Company had accrued $ 3.2 million for cumulative interest and $ 3.6 million for cumulative penalties in its Condensed Consolidated Balance Sheets, compared to $ 3.0 million for cumulative interest and $ 3.9 million for cumulative penalties accrued at December 31, 2020. During the six months ended June 30, 2021 and 2020, the Company recognized decreases of $ 0.8 million and $ 1.5 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. 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. 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 , the Netherlands and China from 2015 , Mexico, 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 has 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 the Netherlands reached agreement with respect to the MAP proceedings which the Company has accepted. As of June 30, 2021, the Company has received $ 1.6 million in refunds from the Netherlands and Spain and expects to pay $ 2.6 million due to Italy in the second half of 2021. As of June 30, 2021, the Company believes it has adequate reserves for the remaining uncertain tax positions related to 2007. Houghton Italia, S.r.l is also involved in a corporate income tax audit with the Italian tax authorities covering tax years 2014 through 2018 . As of June 30, 2021, the Company has a $ 5.6 million reserve for uncertain tax positions relating to matters related to this audit. Since the 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 $ 5.6 million indemnification receivable has also been established through purchase accounting. Houghton Deutschland GmbH is also under audit by the German tax authorities for the tax years 2015 through 2017 . Based on preliminary audit findings, primarily related to transfer pricing, the Company has recorded reserves for $ 0.9 million as of June 30, 2021. 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.

Note 11 – Income Taxes

and Uncertain Income Tax

Positions

The Company’s effective

tax rates for the three and six months ended June 30, 2021 were

an expense of

32.2

% and

28.4

respectively, compared

to an expense of

57.9

% and a benefit of

20.7

% for the three and six months ended June 30, 2020, respectively.

The Company’s current

year effective tax rates were largely

impacted by the sale of certain held-for-sale real

property assets related to

the Combination,

changes in foreign tax credit valuation allowances, tax law changes

in a foreign jurisdiction and the income tax

impacts of certain non-income tax credits recorded

by the Company’s Brazilian

subsidiaries described in Note 19 of Notes to

Condensed Consolidated Financial Statements.

Comparatively, the prior

year effective tax rates were impacted by the

tax effect of

certain one-time pre-tax losses as well as certain tax charges

and benefits in the prior year period including those related

to changes in

foreign tax credit valuation allowances, tax law changes in

a foreign jurisdiction, changes in uncertain tax positions and

the tax

impacts of the Company’s

termination of its Legacy Quaker U.S. Pension Plan.

As of December 31, 2020, the Company had a deferred

tax liability of $

5.9

million, which primarily represents the Company’s

estimate of non-U.S. taxes it will incur to repatriate

certain foreign earnings to the U.S.

The balance as of June 30, 2021 was $

6.5

million.

As of June 30, 2021, the Company’s

cumulative liability for gross unrecognized tax benefits was $

24.0

million, an increase of

1.8

million from the cumulative liability accrued as of December 31, 2020.

The Company continues to recognize interest and penalties

associated with uncertain tax positions as a component of

taxes on

income (loss) before equity in net income of associated

companies in its Condensed Consolidated Statements of Operations.

The

Company recognized an expense for interest of approximately

0.2

million and $

0.2

million and a benefit of less than $

0.1

million and

0.2

million for penalties in its Condensed Consolidated Statement of

Operations for the three and six months ended June 30, 2021,

respectively, and recognized

an expense of $

0.6

million and $

0.6

million for interest and an expense of $

0.6

million and $

0.5

million

for penalties in its Condensed Consolidated Statement of

Operations for the three and six months ended June 30, 2020

respectively.

As of June 30, 2021, the Company had accrued $

3.2

million for cumulative interest and $

3.6

million for cumulative penalties in its

Condensed Consolidated Balance Sheets, compared

to $

3.0

million for cumulative interest and $

3.9

million for cumulative penalties

accrued at December 31, 2020.

During the six months ended June 30, 2021 and 2020, the

Company recognized decreases of $

0.8

million and $

1.5

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.

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.

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

the Netherlands and China from

2015

, Mexico, 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 has 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 the Netherlands reached agreement with respect to the MAP

proceedings which the Company has accepted.

As of June 30, 2021, the Company has received $

1.6

million in refunds from the

Netherlands and Spain and expects to pay $

2.6

million due to Italy in the second half of 2021.

As of June 30, 2021, the Company

believes it has adequate reserves for the remaining

uncertain tax positions related to 2007.

Houghton Italia, S.r.l

is also involved in a corporate income tax audit with the Italian tax

authorities covering tax years

2014

through

2018

As of June 30, 2021, the Company has a $

5.6

million reserve for uncertain tax positions relating to matters related

this audit.

Since the 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 $

5.6

million indemnification receivable has also been established through

purchase accounting.

Houghton Deutschland GmbH is also under audit by

the German tax authorities for the tax years

2015

through

2017

Based on

preliminary audit findings, primarily related to

transfer pricing, the Company has recorded reserves for $

0.9

million as of June 30,

2021.

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.