Basis of Presentation and Description of Business

9 Months Ended

Sep. 30, 2022

Basis of Presentation and Description of Business [Abstract]

Basis of Presentation and Description of Business [Text Block]

Note 1 – Basis of Presentation and Description of Business 

Basis of Presentation

As used in these Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for the period

ended September 30, 2022 (the “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 these Notes to Condensed Consolidated Financial Statements, the “Combination” refers to the legacy Quaker combination

with Houghton International, Inc. (“Houghton”). 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 consisting only

of normal recurring 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 nine months ended September 30, 2022 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, 2021 (the “2021 Form 10-K”).

Description of Business

The Company was organized in 1918, incorporated as a Pennsylvania business corporation in 1930, and in August 2019

completed the Combination with Houghton to form Quaker Houghton. Quaker Houghton is the global leader in industrial process

fluids. With a presence around the world, including operations in over

25

 countries, the Company’s customers include thousands of

the world’s most advanced and specialized steel, aluminum, automotive, aerospace, offshore, can, mining, and metalworking

companies. Quaker Houghton develops, produces, and markets a broad range of formulated chemical specialty products and offers

chemical management services (which the Company refers to as “Fluidcare

TM

”) for various heavy industrial and manufacturing

applications throughout its

four

 segments: Americas; Europe, Middle East and Africa (“EMEA”); Asia/Pacific; and Global Specialty

Businesses.

Hyper-inflationary economies

Based on various indices or index compilations being used to monitor inflation as well as economic instability, Argentina’s and

Türkiye’s economies were considered hyper-inflationary under U.S. GAAP effective July 1, 2018 and April 1, 2022, respectively. As

of, and for the three and nine months ended September 30, 2022, the Company's Argentine and Turkish subsidiaries represented a

combined

1

% and

2

% of the Company’s consolidated total assets and net sales, respectively. During the three and nine months ended

September 30, 2022, the Company recorded $

1.0

 million and $

1.2

 million, respectively, of remeasurement losses associated with the

applicable currency conversions related to Argentina and Türkiye. Comparatively, during the three and nine months ended September

30, 2021, the Company recorded less than $

0.1

 million and $

0.3

 million, respectively, of remeasurement losses associated with the

applicable currency conversions related to Argentina. These losses were recorded within foreign exchange losses, net, which is a

component of other (expense) income, net, in the Company’s Condensed Consolidated Statements of Income.