Net Sales and Revenue Recognition

6 Months Ended

Jun. 30, 2023

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 recognized on a net reporting basis of $21.0 million and $41.7 million for the three and six months ended June 30, 2023, respectively, and $20.5 million and $40.3 million for the three and six months ended June 30, 2022, 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, aerospace, industrial and agricultural equipment, and durable goods. As previously disclosed in the Company’s 2022 Form 10-K, for the year ended December 31, 2022, the Company’s five largest customers combined (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 Condensed Consolidated Balance Sheets as of June 30, 2023 or December 31, 2022.

The Company had approximately $3.1 million and $5.7 million of deferred revenue as of June 30, 2023 and December 31, 2022, respectively. For the six months ended June 30, 2023, the Company satisfied all of the associated performance obligations and recognized into revenue the advance payments received and recorded as of December 31, 2022.

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 reportable segment first, and then by customer industries. 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, are approximately proportionate to the level of total sales in each region.

The following tables disaggregate the Company’s net sales by geographic region, customer industries, and timing of revenue recognized. Prior period information has been recast to reflect the Company’s current period customer industry disaggregation. See Note 1 of Notes to Condensed Consolidated Financial Statements.

	Three Months Ended June 30, 2023
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	68,743	$	32,643	$	48,129	$	149,515
Metalworking and other	184,476		110,890		50,563		345,929
	$	253,219	$	143,533	$	98,692	$	495,444
Timing of Revenue Recognized
Product sales at a point in time	$	242,497	$	132,416	$	95,512	$	470,425
Services transferred over time	10,722		11,117		3,180		25,019
	$	253,219	$	143,533	$	98,692	$	495,444

	Six Months Ended June 30, 2023
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	136,877	$	71,746	$	94,789	$	303,412
Metalworking and other	367,755		224,236		100,189		692,180
	$	504,632	$	295,982	$	194,978	$	995,592
Timing of Revenue Recognized
Product sales at a point in time	$	482,978	$	273,922	$	189,435	$	946,335
Services transferred over time	21,654		22,060		5,543		49,257
	$	504,632	$	295,982	$	194,978	$	995,592

	Three Months Ended June 30, 2022
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	62,633	$	37,622	$	56,217	$	156,472
Metalworking and other	173,176		107,913		54,827		335,916
	$	235,809	$	145,535	$	111,044	$	492,388
Timing of Revenue Recognized
Product sales at a point in time	$	224,469	$	135,576	$	108,555	$	468,600
Services transferred over time	11,340		9,959		2,489		23,788
	$	235,809	$	145,535	$	111,044	$	492,388

	Six Months Ended June 30, 2022
	Americas		EMEA		Asia/Pacific		Consolidated Total
Customer Industries
Metals	$	117,950	$	74,415	$	111,899	$	304,264
Metalworking and other	329,950		217,939		114,406		662,295
	$	447,900	$	292,354	$	226,305	$	966,559
Timing of Revenue Recognized
Product sales at a point in time	$	426,244	$	272,379	$	221,103	$	919,726
Services transferred over time	21,656		19,975		5,202		46,833
	$	447,900	$	292,354	$	226,305	$	966,559