Net Sales and Revenue Recognition

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Net Sales and Revenue Recognition

Net Sales and Revenue Recognition

Arrangements Resulting in Net Reporting

As part of the Company’s FluidcareTM business, certain third-party product sales to customers are managed by the Company. The Company transferred third-party products under arrangements resulting in net reporting of $83.8 million, $71.7 million and $42.5 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Customer Concentration

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. During the year ended December 31, 2022, the Company’s five largest customers (each composed of multiple subsidiaries or divisions with semiautonomous purchasing authority) accounted for approximately 11% of consolidated net sales, with its largest customer accounting for approximately 3% of consolidated net sales.

Contract Assets and Liabilities

The Company had no material contract assets recorded on its Consolidated Balance Sheets as of December 31, 2022 and 2021.

The Company had approximately $5.7 million and $7.0 million of deferred revenue as of December 31, 2022 and 2021, respectively. During the years ended December 31, 2022 and 2021, respectively, the Company satisfied all of the associated performance obligations and recognized into revenue the advance payments received and recorded as of December 31, 2021 and 2020, respectively.

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. 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 present disaggregated information regarding the Company’s net sales, first by major product lines that represent more than 10% of the Company’s consolidated net sales for any of the years ended December 31, 2022, 2021 and 2020, and followed then by a disaggregation of the Company’s net sales by segment, geographic region, customer industry, and timing of revenue recognized for the years ended December 31, 2022, 2021 and 2020.

	2022		2021		2020
Metal removal fluids	22.9	%	23.4	%	23.9	%
Rolling lubricants	20.8	%	22.2	%	21.8	%
Hydraulic fluids	14.1	%	13.6	%	13.3	%

	Net sales for the year ending December 31, 2022
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	252,513	$	137,767	$	214,377	$	604,657
Metalworking and other	443,589		336,837		172,073		952,499
	696,102		474,604		386,450		1,557,156
Global Specialty Businesses	247,646		83,738		55,045		386,429
	$	943,748	$	558,342	$	441,495	$	1,943,585
Timing of Revenue Recognized
Product sales at a point in time	$	903,610	$	526,977	$	430,857	$	1,861,444
Services transferred over time	40,138		31,365		10,638		82,141
	$	943,748	$	558,342	$	441,495	$	1,943,585

	Net sales for the year ending December 31, 2021
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	210,340	$	141,950	$	207,160	$	559,450
Metalworking and other	362,303		338,176		181,000		881,479
	572,643		480,126		388,160		1,440,929
Global Specialty Businesses	186,859		80,541		52,829		320,229
	$	759,502	$	560,667	$	440,989	$	1,761,158
Timing of Revenue Recognized
Product sales at a point in time	$	724,357	$	527,083	$	429,130	$	1,680,570
Services transferred over time	35,145		33,584		11,859		80,588
	$	759,502	$	560,667	$	440,989	$	1,761,158

	Net sales for the year ending December 31, 2020
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	163,135	$	107,880	$	168,096	$	439,111
Metalworking and other	287,026		275,307		147,203		709,536
	450,161		383,187		315,299		1,148,647
Global Specialty Businesses	154,796		68,164		46,070		269,030
	$	604,957	$	451,351	$	361,369	$	1,417,677
Timing of Revenue Recognized
Product sales at a point in time	$	580,663	$	434,549	$	352,917	$	1,368,129
Services transferred over time	24,294		16,802		8,452		49,548
	$	604,957	$	451,351	$	361,369	$	1,417,677