QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
x | Accelerated filer | o | ||||||||||||||||||
Non-accelerated filer | o | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Number of Shares of Common Stock Outstanding on April 30, 2024 |
Page | ||||||||
Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and March 31, 2023 | ||||||||
Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2024 and March 31, 2023 | ||||||||
Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 | ||||||||
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and March 31, 2023 | ||||||||
Condensed Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2024 and March 31, 2023 | ||||||||
Item 5. | ||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net sales | $ | $ | |||||||||
Cost of goods sold (excluding amortization expense - See Note 13) | |||||||||||
Gross profit | |||||||||||
Selling, general and administrative expenses | |||||||||||
Restructuring and related charges, net | |||||||||||
Operating income | |||||||||||
Other income (expense), net | ( | ||||||||||
Interest expense, net | ( | ( | |||||||||
Income before taxes and equity in net income of associated companies | |||||||||||
Taxes on income before equity in net income of associated companies | |||||||||||
Income before equity in net income of associated companies | |||||||||||
Equity in net income of associated companies | |||||||||||
Net income | |||||||||||
Less: Net income attributable to noncontrolling interest | |||||||||||
Net income attributable to Quaker Chemical Corporation | $ | $ | |||||||||
Per share data: | |||||||||||
Net income attributable to Quaker Chemical Corporation common shareholders – basic | $ | $ | |||||||||
Net income attributable to Quaker Chemical Corporation common shareholders – diluted | $ | $ | |||||||||
Dividends declared | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive (loss) income, net of tax | |||||||||||
Currency translation adjustments | ( | ||||||||||
Defined benefit retirement plans | ( | ||||||||||
Current period change in fair value of derivatives | |||||||||||
Unrealized gain on available-for-sale securities | |||||||||||
Other comprehensive (loss) income | ( | ||||||||||
Comprehensive income | |||||||||||
Less: Comprehensive loss (income) attributable to noncontrolling interest | ( | ||||||||||
Comprehensive income attributable to Quaker Chemical Corporation | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Raw materials and supplies | |||||||||||
Work-in-process and finished goods | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, at cost | |||||||||||
Less: Accumulated depreciation | ( | ( | |||||||||
Property, plant and equipment, net | |||||||||||
Right of use lease assets | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Investments in associated companies | |||||||||||
Deferred tax assets | |||||||||||
Other non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Short-term borrowings and current portion of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Dividends payable | |||||||||||
Accrued compensation | |||||||||||
Accrued restructuring | |||||||||||
Accrued pension and postretirement benefits | |||||||||||
Other accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term lease liabilities | |||||||||||
Deferred tax liabilities | |||||||||||
Non-current accrued pension and postretirement benefits | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 18) | |||||||||||
Equity | |||||||||||
Common stock $ March 31, 2024 – | |||||||||||
Capital in excess of par value | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Quaker shareholders’ equity | |||||||||||
Noncontrolling interest | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of debt issuance costs | |||||||||||
Depreciation and amortization | |||||||||||
Equity in undistributed earnings of associated companies, net of dividends | ( | ( | |||||||||
Deferred compensation, deferred taxes and other, net | ( | ||||||||||
Share-based compensation | |||||||||||
Restructuring and related charges, net | |||||||||||
Pension and other postretirement benefits | ( | ( | |||||||||
Decrease in cash from changes in current assets and current liabilities, net of acquisitions: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Change in restructuring liabilities | ( | ( | |||||||||
Accounts payable and accrued liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities | |||||||||||
Investments in property, plant and equipment | ( | ( | |||||||||
Payments related to acquisitions, net of cash acquired | ( | ||||||||||
Proceeds from disposition of assets | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities | |||||||||||
Payments of long-term debt | ( | ( | |||||||||
Borrowings (payments) on revolving credit facilities, net | ( | ||||||||||
Payments on other debt, net | ( | ||||||||||
Dividends paid | ( | ( | |||||||||
Other stock related activity | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of foreign exchange rate changes on cash | ( | ||||||||||
Net increase in cash and cash equivalents | |||||||||||
Cash and cash equivalents at the beginning of the period | |||||||||||
Cash and cash equivalents at the end of the period | $ | $ |
Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total | ||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||
Amounts reported in other comprehensive income | — | — | — | ||||||||||||||||||||||||||||||||
Dividends ($ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Share issuance and equity-based compensation plans | — | — | — | ||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||
Amounts reported in other comprehensive loss | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||
Dividends ($ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Share issuance and equity-based compensation plans | ( | — | — | — | |||||||||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Net sales | 2024 | 2023 | ||||||||||||
Americas | $ | $ | ||||||||||||
EMEA | ||||||||||||||
Asia/Pacific | ||||||||||||||
Total net sales | $ | $ | ||||||||||||
Segment operating earnings | ||||||||||||||
Americas | $ | $ | ||||||||||||
EMEA | ||||||||||||||
Asia/Pacific | ||||||||||||||
Total segment operating earnings | ||||||||||||||
Restructuring and related charges, net | ( | ( | ||||||||||||
Non-operating and administrative expenses | ( | ( | ||||||||||||
Depreciation of corporate assets and amortization | ( | ( | ||||||||||||
Operating income | ||||||||||||||
Other income (expense), net | ( | |||||||||||||
Interest expense, net | ( | ( | ||||||||||||
Income before taxes and equity in net income of associated companies | $ | $ |
Inter-segment revenues | 2024 | 2023 | ||||||||||||
Americas | $ | $ | ||||||||||||
EMEA | ||||||||||||||
Asia/Pacific |
Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||
Customer Industries | Americas | EMEA | Asia/Pacific | Consolidated Total | ||||||||||||||||||||||
Metals | $ | $ | $ | $ | ||||||||||||||||||||||
Metalworking and other | ||||||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||
Customer Industries | Americas | EMEA | Asia/Pacific | Consolidated Total | ||||||||||||||||||||||
Metals | $ | $ | $ | $ | ||||||||||||||||||||||
Metalworking and other | ||||||||||||||||||||||||||
$ | $ | $ | $ |
2024 | 2023 | ||||||||||
Operating lease expense | $ | $ | |||||||||
Short-term lease expense |
2024 | 2023 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Non-cash lease liabilities activity: | |||||||||||
Leased assets obtained in exchange for new operating lease liabilities |
March 31, 2024 | December 31, 2023 | ||||||||||
Right of use lease assets | $ | $ | |||||||||
Other current liabilities | |||||||||||
Long-term lease liabilities | |||||||||||
Total operating lease liabilities | $ | $ | |||||||||
Weighted average remaining lease term (years) | |||||||||||
Weighted average discount rate | % | % |
For the remainder of 2024 | $ | ||||
For the year ended December 31, 2025 | |||||
For the year ended December 31, 2026 | |||||
For the year ended December 31, 2027 | |||||
For the year ended December 31, 2028 | |||||
For the year ended December 31, 2029 and beyond | |||||
Total lease payments | |||||
Less: imputed interest | ( | ||||
Present value of lease liabilities | $ |
Accrued restructuring as of December 31, 2023 | $ | ||||
Restructuring and related charges, net | |||||
Cash payments | ( | ||||
Currency translation adjustments | ( | ||||
Accrued restructuring as of March 31, 2024 | $ |
2024 | 2023 | ||||||||||
Stock options | $ | $ | |||||||||
Non-vested stock awards and restricted stock units | |||||||||||
Director stock ownership plan | |||||||||||
Performance stock units | |||||||||||
Total share-based compensation expense | $ | $ |
2024 Grants | |||||
Number of PSUs granted | |||||
Risk-free interest rate | |||||
Dividend yield | |||||
Expected term (years) |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | |||||||||||||||||||||
Actuarial loss (gain) amortization | ( | ( | |||||||||||||||||||||
Prior service cost (income) amortization | ( | ||||||||||||||||||||||
Net periodic benefit cost (income) | $ | $ | $ | ( | $ | ( |
2024 | 2023 | ||||||||||
Non-income tax refunds and other related credits | $ | $ | |||||||||
Income from third party license fees | |||||||||||
Gain (loss) on disposals of property, plant, equipment and other assets, net | ( | ||||||||||
Foreign exchange losses, net | ( | ( | |||||||||
Pension and postretirement benefit costs, non-service components | ( | ( | |||||||||
Facility remediation recoveries, net | |||||||||||
Product liability claim | ( | ||||||||||
Other non-operating income, net | |||||||||||
Total other income (expense), net | $ | $ | ( |
2024 | 2023 | ||||||||||
Basic earnings per common share | |||||||||||
Net income attributable to Quaker Chemical Corporation | $ | $ | |||||||||
Less: income allocated to participating securities | ( | ( | |||||||||
Net income available to common shareholders | $ | $ | |||||||||
Basic weighted average common shares outstanding | |||||||||||
Basic earnings per common share | $ | $ | |||||||||
Diluted earnings per common share | |||||||||||
Net income attributable to Quaker Chemical Corporation | $ | $ | |||||||||
Less: income allocated to participating securities | ( | ( | |||||||||
Net income available to common shareholders | $ | $ | |||||||||
Basic weighted average common shares outstanding | |||||||||||
Effect of dilutive securities | |||||||||||
Diluted weighted average common shares outstanding | |||||||||||
Diluted earnings per common share | $ | $ |
Americas | EMEA | Asia/Pacific | Total | ||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Goodwill additions | |||||||||||||||||||||||
Currency translation adjustments | ( | ( | ( | ( | |||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | $ | $ |
Gross Carrying Amount | Accumulated Amortization | Net Book Value | |||||||||||||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2024 | December 31, 2023 | March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||
Customer lists and rights to sell | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Trademarks, formulations and product technology | |||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||
Total definite-lived intangible assets | $ | $ | $ | $ | $ | $ |
2024 | 2023 | ||||||||||
Amortization expense | $ | $ |
For the remainder of 2024 | $ | ||||
For the year ended December 31, 2025 | |||||
For the year ended December 31, 2026 | |||||
For the year ended December 31, 2027 | |||||
For the year ended December 31, 2028 | |||||
For the year ended December 31, 2029 | |||||
As of March 31, 2024 | As of December 31, 2023 | ||||||||||||||||||||||
Interest Rate | Outstanding Balance | Interest Rate | Outstanding Balance | ||||||||||||||||||||
Credit Facilities: | |||||||||||||||||||||||
Revolver | $ | $ | |||||||||||||||||||||
U.S. Term Loan | |||||||||||||||||||||||
Euro Term Loan | |||||||||||||||||||||||
Industrial development bonds | |||||||||||||||||||||||
Bank lines of credit and other debt obligations | Various | Various | |||||||||||||||||||||
Total debt | $ | $ | |||||||||||||||||||||
Less: debt issuance costs | ( | ( | |||||||||||||||||||||
Less: short-term and current portion of long-term debts | ( | ( | |||||||||||||||||||||
Total long-term debt | $ | $ |
2024 | 2023 | ||||||||||
Interest expense | $ | $ | |||||||||
Amortization of debt issuance costs | |||||||||||
Total | $ | $ |
Currency Translation Adjustments | Defined Benefit Pension Plans | Unrealized (Loss) Gain in Available-for- Sale Securities | Derivative Instruments | Total | |||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | ( | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||
Other comprehensive (loss) income before Reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from AOCI | ( | ||||||||||||||||||||||||||||
Related tax amounts | ( | ( | ( | ( | |||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | ( | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||
Balance as of December 31, 2022 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before Reclassifications | ( | ||||||||||||||||||||||||||||
Amounts reclassified from AOCI | ( | ||||||||||||||||||||||||||||
Related tax amounts | ( | ( | ( | ||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | ( | $ | ( | $ | ( | $ | $ | ( |
Currency | March 31, 2024 | |||||||
Mexican Peso | $ | |||||||
Japanese Yen | ||||||||
Chinese Yuan | ||||||||
$ |
Derivatives instruments | Condensed Consolidated Balance Sheets Location | March 31, 2024 | December 31, 2023 | |||||||||||||||||
Interest rate swaps: | Other non-current assets | $ | $ | |||||||||||||||||
Foreign currency forward contracts: | Other accrued liabilities | — | ||||||||||||||||||
Prepaid expenses and other current assets | — | |||||||||||||||||||
Derivatives designated as cash flow hedges | March 31, 2024 | December 31, 2023 | ||||||||||||||||||
Interest rate swaps | AOCI | $ | $ | |||||||||||||||||
Derivative instruments | Condensed Consolidated Statements of Operations Location | 2024 | 2023 | |||||||||||||||||
Interest rate swaps | Interest expense, net | $ | $ | |||||||||||||||||
Foreign exchange forward contracts | Other income, net | |||||||||||||||||||
Total | $ | $ |
Non-GAAP Operating Income and Margin Reconciliations | Three Months Ended March 31, | ||||||||||
2024 | 2023 | ||||||||||
Operating income | $ | 55,526 | $ | 49,929 | |||||||
Restructuring and related charges, net (a) | 1,857 | 3,972 | |||||||||
Strategic planning (credits) expenses (b) | (109) | 2,087 | |||||||||
Customer insolvency costs (g) | 1,522 | — | |||||||||
Other charges (d) | 446 | 305 | |||||||||
Non-GAAP operating income | $ | 59,242 | $ | 56,293 | |||||||
Non-GAAP operating margin (%) (l) | 12.6 | % | 11.3 | % |
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Non-GAAP Net Income Reconciliations | Three Months Ended March 31, | ||||||||||
2024 | 2023 | ||||||||||
Net income attributable to Quaker Chemical Corporation | $ | 35,227 | $ | 29,534 | |||||||
Depreciation and amortization (j) | 21,056 | 20,510 | |||||||||
Interest expense, net | 10,824 | 13,242 | |||||||||
Taxes on income before equity in net income of associated companies (k) | 12,508 | 9,533 | |||||||||
EBITDA | 79,615 | 72,819 | |||||||||
Equity income in a captive insurance company (e) | (506) | (422) | |||||||||
Restructuring and related charges, net (a) | 1,857 | 3,972 | |||||||||
Strategic planning (credits) expenses (b) | (109) | 2,087 | |||||||||
Customer insolvency costs (g) | 1,522 | — | |||||||||
Facility remediation recoveries (c) | — | (827) | |||||||||
Product liability claim costs (h) | 896 | — | |||||||||
Currency conversion impacts of hyper-inflationary economies (f) | (904) | 456 | |||||||||
Other charges (d) | 911 | 706 | |||||||||
Adjusted EBITDA | $ | 83,282 | $ | 78,791 | |||||||
Adjusted EBITDA margin (%) (l) | 17.7 | % | 15.8 | % | |||||||
Adjusted EBITDA | $ | 83,282 | $ | 78,791 | |||||||
Less: Depreciation and amortization (j) | 21,056 | 20,510 | |||||||||
Less: Interest expense, net | 10,824 | 13,242 | |||||||||
Less: Taxes on income before equity in net income of associated companies - adjusted (k) | 13,729 | 11,047 | |||||||||
Non-GAAP net income | $ | 37,673 | $ | 33,992 |
Non-GAAP Earnings per Diluted Share Reconciliations | Three Months Ended March 31, | ||||||||||
2024 | 2023 | ||||||||||
GAAP earnings per diluted share attributable to Quaker Chemical Corporation common shareholders | $ | 1.95 | $ | 1.64 | |||||||
Equity income in a captive insurance company per diluted share (e) | (0.03) | (0.02) | |||||||||
Restructuring and related charges, net per diluted share (a) | 0.08 | 0.17 | |||||||||
Strategic planning (credits) expenses per diluted share (b) | — | 0.10 | |||||||||
Customer insolvency costs per diluted share (g) | 0.06 | — | |||||||||
Facility remediation recoveries per diluted share (c) | — | (0.04) | |||||||||
Product liability claim costs per diluted share (h) | 0.04 | — | |||||||||
Currency conversion impacts of hyper-inflationary economies per diluted share (f) | (0.05) | 0.03 | |||||||||
Other charges per diluted share (d) | 0.04 | 0.02 | |||||||||
Impact of certain discrete tax items per diluted share (i) | — | (0.01) | |||||||||
Non-GAAP earnings per diluted share (m) | $ | 2.09 | $ | 1.89 |
Period | (a) Total Number of Shares Purchased (1) | (b) Average Price Paid Per Share (2) | (c) Total Number of Shares Purchased as part of Publicly Announced Plans or Programs | (d) Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (3) | ||||||||||||||||||||||
January 1 - January 31 | 281 | $ | 206.14 | — | $ | 150,000,000 | ||||||||||||||||||||
February 1 - February 29 | 357 | $ | 197.96 | — | $ | 150,000,000 | ||||||||||||||||||||
March 1 - March 31 | 6,479 | $ | 200.16 | — | $ | 150,000,000 | ||||||||||||||||||||
Total | 7,117 | $ | 200.29 | — | $ | 150,000,000 |
3.1 | – | |||||||
3.2 | – | |||||||
31.1 | – | |||||||
31.2 | – | |||||||
32.1 | – | |||||||
32.2 | – | |||||||
101.INS | – | Inline XBRL Instance Document* | ||||||
101.SCH | – | Inline XBRL Taxonomy Schema Document* | ||||||
101.CAL | – | Inline XBRL Taxonomy Calculation Linkbase Document* | ||||||
101.DEF | – | Inline XBRL Taxonomy Definition Linkbase Document* | ||||||
101.LAB | – | Inline XBRL Taxonomy Label Linkbase Document* | ||||||
101.PRE | – | Inline XBRL Taxonomy Presentation Linkbase Document* | ||||||
104 | – | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101.INS)* |
QUAKER CHEMICAL CORPORATION | |||||
(Registrant) | |||||
/s/ Shane W. Hostetter | |||||
Date: May 2, 2024 | Shane W. Hostetter, Executive Vice President, Chief Financial Officer (officer duly authorized on behalf of, and principal financial officer of, the Registrant) |
Date: May 2, 2024 | |||||
/s/ Andrew E. Tometich | |||||
Andrew E. Tometich | |||||
Chief Executive Officer |
Date: May 2, 2024 | |||||
/s/ Shane W. Hostetter | |||||
Shane W. Hostetter | |||||
Chief Financial Officer |
Date: May 2, 2024 | |||||
/s/ Andrew E. Tometich | |||||
Andrew E. Tometich | |||||
Chief Executive Officer of Quaker Chemical Corporation |
Date: May 2, 2024 | |||||
/s/ Shane W. Hostetter | |||||
Shane W. Hostetter | |||||
Chief Financial Officer of Quaker Chemical Corporation |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 35,258 | $ 29,541 |
Other comprehensive (loss) income, net of tax | ||
Currency translation adjustments | (25,389) | 14,468 |
Defined benefit retirement plans | 354 | (126) |
Current period change in fair value of derivatives | 2,345 | 390 |
Unrealized gain on available-for-sale securities | 45 | 334 |
Other comprehensive (loss) income | (22,645) | 15,066 |
Comprehensive income | 12,613 | 44,607 |
Less: Comprehensive loss (income) attributable to noncontrolling interest | 42 | (10) |
Comprehensive income attributable to Quaker Chemical Corporation | $ 12,655 | $ 44,597 |
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 17,989,801 | 17,991,988 |
Common stock, shares outstanding (in shares) | 17,989,801 | 17,991,988 |
Condensed Consolidated Statements of Changes in Equity - 3 months ended Mar. 31, 2024 - USD ($) $ in Thousands |
Total |
Common Stock |
Capital in Excess of Par Value |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Noncontrolling Interest |
---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2023 | $ 1,384,922 | $ 17,992 | $ 940,101 | $ 550,641 | $ (124,415) | $ 603 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 35,258 | |||||
Amounts reported in other comprehensive income | (22,645) | |||||
Ending balance at Mar. 31, 2024 | $ 1,391,792 |
Condensed Consolidated Statements of Changes in Equity (Parentheticals) - $ / shares |
3 Months Ended | |||
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Mar. 31, 2024 |
Sep. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
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Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.455 | $ 0.455 | $ 0.435 | $ 0.435 |
Basis of Presentation and Description of Business |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Description of Business | Basis of Presentation and Description of Business As used in these Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for the period ended March 31, 2024 (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. Basis of Presentation 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 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 three months ended March 31, 2024 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, 2023 (as amended, the “2023 Form 10-K”). Description of Business The Company was organized in 1918 and incorporated as a Pennsylvania business corporation in 1930. 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, container, 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 FluidcareTM, for various heavy industrial and manufacturing applications sold in its three reportable segments: (i) Americas; (ii) Europe, Middle East and Africa (“EMEA”); and (iii) Asia/Pacific. Hyper-inflationary economies 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 months ended March 31, 2024, the Company's Argentine and Turkish subsidiaries together represented 1% and 2% of the Company’s consolidated total assets and net sales, respectively. During the three months ended March 31, 2024 and 2023, the Company recorded $0.9 million of remeasurement gains and $0.5 million of remeasurement losses associated with the applicable currency conversions, respectively. These gains and losses were recorded within Other income (expense), net, in the Company’s Condensed Consolidated Statements of Operations.
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Business Acquisitions |
3 Months Ended |
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Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions | Business Acquisitions During February 2024, the Company acquired I.K.V. Tribologie IKVT and its subsidiaries (“IKV”) for 32.2 million EUR, or $34.6 million, including an initial cash payment of 27.6 million EUR, or $29.7 million, subject to routine and customary post-closing adjustments related to working capital and net indebtedness levels as well as earn-out provisions related to the finalization of 2023 earnings currently estimated at 4.6 million EUR, or $4.9 million, that is payable during 2024. Assets acquired included approximately $4.8 million of cash and cash equivalents. IKV, which will be part of the Company’s EMEA segment, specializes in high-performance lubricants and greases, including original equipment manufacturer first-fill greases that are primarily used in the automotive, aerospace, electronics, and other industrial markets. The acquisition of IKV strengthens the Company’s position in first-fill greases. The Company preliminarily allocated $15.0 million of the purchase price to intangible assets, comprised of approximately $11.1 million of customer relationships to be amortized over 16 years; $3.2 million of product technologies to be amortized over 14 years; and $0.7 million of trademarks to be amortized over 5 years. In addition, the Company recognized $16.0 million of goodwill in the EMEA segment, none of which is deductible for tax purposes. The goodwill recognized on the transaction is primarily attributable to expected cost and growth synergies. As of March 31, 2024, the allocation of the purchase price has not been finalized. The results of operations of IKV subsequent to the acquisition date are included in the unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024.
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Recently Issued Accounting Standards |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Issued Accounting Standards Not Yet Adopted The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures in November 2023. This ASU expands on reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The disclosure specifies that significant segment expenses are expenses that are regularly provided to the chief operating decision maker and are used to evaluate performance by segment to make decisions about resource allocations. ASU 2023-07 is effective for annual reports for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the disclosure requirements of this standard and the impact on its Consolidated Financial Statements and related disclosures. The FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures in December 2023. This ASU requires public business entities to disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate (the “rate reconciliation”) for federal, state, and foreign income taxes. It also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a specified threshold. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the disclosure requirements of this standard and the impact on its Consolidated Financial Statements.
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Business Segments |
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Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business Segments The Company’s operating segments, which are consistent with its reportable segments, reflect the structure of the Company’s internal organization, the method by which the Company’s resources are allocated and the manner by which the chief operating decision maker assesses the Company’s performance. The Company has three reportable segments: (i) Americas; (ii) EMEA; and (iii) Asia/Pacific. The three segments are composed of the net sales and operations in each respective region. Segment operating earnings for each of the Company’s reportable segments are comprised of the segment’s net sales less directly related Cost of goods sold (“COGS”), and Selling, general and administrative expenses (“SG&A”). Operating expenses not directly attributable to the net sales of each respective segment, such as certain corporate and administrative costs and Restructuring and related charges, net, are not included in segment operating earnings. Other items not specifically identified with the Company’s reportable segments include Interest expense, net and Other income (expense), net. The following table presents information about the performance of the Company’s reportable segments for the three months ended March 31, 2024 and 2023:
All inter-segment transactions have been eliminated from each reportable segment’s net sales and earnings for all periods presented in the above tables. The following table summarizes inter-segment revenues for the three months ended March 31, 2024 and 2023:
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Net Sales and Revenue Recognition |
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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 $19.8 million and $20.7 million for the three months ended March 31, 2024 and 2023, 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 2023 Form 10-K, the Company’s five largest customers combined (each composed of multiple subsidiaries or divisions with semiautonomous purchasing authority) accounted for approximately 12% of consolidated net sales for 2023, 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 March 31, 2024 or December 31, 2023. The Company had approximately $4.0 million and $4.5 million of deferred revenue as of March 31, 2024 and December 31, 2023, respectively. For the three months ended March 31, 2024, the Company satisfied materially all of the associated performance obligations and recognized into revenue materially all advance payments received and recorded as of December 31, 2023. 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 segment and customer industry.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company has operating leases for certain facilities, vehicles, and machinery and equipment with remaining lease terms up to 11 years. Operating lease expense is recognized on a straight-line basis over the lease term. In addition, the Company has certain land use leases with remaining lease terms up to 91 years. The Company had no material variable lease costs, sublease income, or finance leases for the three months ended March 31, 2024 and 2023. The components of the Company’s lease expense are as follows:
Supplemental cash flow information related to the Company’s leases for the three months ended March 31, 2024 and 2023 is as follows:
Supplemental balance sheet information related to the Company’s leases is as follows:
Maturities of operating lease liabilities as of March 31, 2024 were as follows:
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Restructuring and Related Activities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities | Restructuring and Related Activities In 2022, the Company initiated a global cost and optimization program to improve its cost structure and drive a more profitable and productive organization. As of March 31, 2024, the program included restructuring and associated severance costs to reduce headcount by approximately 120 positions globally. These headcount reductions began in the fourth quarter of 2022 and are expected to be completed in 2024. Employee separation benefits vary depending on local regulations within certain foreign countries and include severance and other benefits. The exact timing to complete, and final costs associated with, all actions will depend on a number of factors and are subject to change. Restructuring costs incurred during the three months ended March 31, 2024 and 2023 include employee severance and facility closure costs that are recorded in Restructuring and related charges, net in the Company’s Condensed Consolidated Statements of Operations. Changes in the Company’s accruals for its restructuring program are as follows:
In connection with the plans for closure of certain manufacturing and non-manufacturing facilities, the Company has made available for sale certain facilities and property. As of March 31, 2024, the Company classified certain properties with aggregate book value of approximately $3.7 million as held-for-sale. These assets are recorded in Prepaid expenses and other current assets on the Company’s Condensed Consolidated Balance Sheets. The Company expects to complete the sale of these properties over the next 12 months.
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Share-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation The Company recognized the following share-based compensation expense in its Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023:
Stock Options As of March 31, 2024, unrecognized compensation expense related to unvested stock options was $0.1 million, to be recognized over a weighted average remaining period of 1.0 year. Restricted Stock Awards During the three months ended March 31, 2024, the Company granted 872 non-vested restricted share awards under its long-term incentive plan (“LTIP”), which are subject to time-based vesting, generally over to three years. As of March 31, 2024, unrecognized compensation expense related to the non-vested restricted shares was $4.3 million, to be recognized over a weighted average remaining period of 1.3 years. Restricted Stock Units During the three months ended March 31, 2024, the Company granted 41,093 restricted stock units under its LTIP, which are subject to time-based vesting, generally over to three years. The fair value of these grants is based on the closing price of the Company’s common stock on the date of grant. As of March 31, 2024, unrecognized compensation expense related to non-vested restricted stock units was $8.8 million, to be recognized over a weighted average remaining period of 1.9 years. Performance Stock Units As a component of its LTIP, the Company grants performance-based stock unit awards (“PSUs”). The number of shares that may ultimately be issued as settlement for each award may range from 0% up to 200% of the target award, subject to the achievement of the Company’s market-based total shareholder return (“TSR”) metric relative to the performance of a selected peer group, and separately the achievement of a performance-based return on invested capital (“ROIC”) measure. The service vesting period required for the PSUs is generally three years and the measurement period of the market-based and performance objectives is generally from January 1 of the year of grant through December 31 of the year prior to issuance of the shares. As mentioned above, a portion of the Company’s PSU valuation is subject to the achievement of the Company’s TSR relative to the performance of a selected peer group. For PSUs granted prior to 2024, the Company’s peer group was the S&P Midcap 400 Materials group. For the 2024 annual LTIP grants, the Company made an election to change peer groups to the S&P 1500 Chemical group to measure the Company’s relative TSR. Compensation expense for PSUs is measured based on the grant date fair value and is recognized on a straight-line vesting method basis over the applicable vesting period. In the first quarter of 2024, the Company granted 17,970 PSUs with a ROIC condition at a grant date fair value of $200.16 per unit, which was based on the closing trading price of the Company’s common stock on the date of grant. PSUs granted with a relative TSR condition are valued using a Monte Carlo simulation on the date of grant. The grant-date fair value of the PSUs valued using a Monte Carlo simulation was $234.19 per unit, which incorporated the assumptions set forth in the table below:
As of March 31, 2024, there was approximately $13.4 million of total unrecognized compensation cost related to PSUs, which the Company expects to recognize over a weighted-average period of 2.5 years.
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Pension and Other Postretirement Benefits |
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Retirement Benefits, Description [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The components of net periodic benefit cost (income) are as follows for the three months ended March 31, 2024 and 2023:
Employer Contributions As of March 31, 2024, $0.9 million and less than $0.1 million of contributions have been made to the Company’s U.S. and foreign pension plans and its other postretirement benefit plans, respectively. Taking into consideration current minimum cash contribution requirements, the Company currently expects to make full year cash contributions of approximately $5.7 million to its U.S. and foreign pension plans and approximately $0.2 million to its other postretirement benefit plans in 2024.
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Other (expense) income, net |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (expense) income, net | Other income (expense), net The components of Other income (expense), net are as follows for the three months ended March 31, 2024 and 2023:
During 2021, two of the Company’s locations suffered property damages as a result of flooding and electrical fire, respectively. Facility remediation recoveries, net, during the three months ended March 31, 2023, reflect recoveries recorded on the payments received from insurers related to previously incurred costs from the remediation and restoration of property damage. See Note 18 of Notes to the Condensed Consolidated Financial Statements. Product liability claim costs includes recorded expense related to the payment of a product liability dispute with one of the Company’s customers during the three months ended March 31, 2024.
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Income Taxes and Uncertain Income Tax Positions |
3 Months Ended |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes and Uncertain Income Tax Positions | Income Taxes The Company’s effective tax rates for the three months ended March 31, 2024 and 2023 were 27.3% and 27.7%, respectively. The Company’s effective tax rate for the three months ended March 31, 2024 was largely driven by a mix of earnings and withholding taxes, offset by changes in uncertain tax positions. Comparatively, the effective tax rate for the first three months of 2023 was largely impacted by foreign tax inclusions, withholding taxes, and foreign tax credits, partially offset with changes in uncertain tax positions and favorable return to provision adjustments.
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Earnings Per Share |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table summarizes earnings per share calculations for the three months ended March 31, 2024 and 2023:
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill for the three months ended March 31, 2024 were as follows:
Gross carrying amounts and accumulated amortization for definite-lived intangible assets were as follows:
The Company amortizes definite-lived intangible assets on a straight-line basis over their useful lives. The Company recorded amortization expense for the three months ended March 31, 2024 and 2023 as follows:
Estimated annual aggregate amortization expense for the current year and subsequent five years is as follows:
As of March 31, 2024 and December 31, 2023, the Company had indefinite-lived intangible assets for trademarks and tradenames totaling $190.2 million and $193.2 million, respectively.
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Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following table sets forth the components of the Company’s debt:
Credit facilities During June 2022, the Company, and its wholly owned subsidiary, Quaker Houghton B.V., as borrowers, Bank of America, N.A., as administrative agent, U.S. dollar swing line lender and letter of credit issuer, Bank of America Europe Designated Active Company, as Euro Swing Line Lender, certain guarantors and other lenders entered into an amendment to its primary credit facility. The amended credit facility (the “Credit Facility”) established (A) a $150.0 million Euro equivalent senior secured term loan (the “Euro Term Loan”), (B) a $600.0 million senior secured term loan (the “U.S. Term Loan”), and (C) a $500.0 million senior secured revolving credit facility (the “Revolver”), each maturing in June 2027. The Company has the right to increase the amount of the Credit Facility by an aggregate amount not to exceed the greater of $300.0 million or 100% of Consolidated EBITDA, subject to certain conditions including the agreement to provide financing by any lender providing such increase. As of March 31, 2024, the Company was in compliance with all of the Credit Facility covenants. See Note 19 of Notes to Consolidated Financial Statements in the Company’s 2023 Form 10-K. The weighted average variable interest rate incurred on the outstanding borrowings under the Credit Facility during the three months ended March 31, 2024 was approximately 6.4%. As of March 31, 2024, the interest rate on the outstanding borrowings under the Credit Facility was approximately 6.1%. As part of the Credit Facility, in addition to paying interest on outstanding principal, the Company is also required to pay an annual commitment fee ranging from 0.150% to 0.275% related to unutilized commitments under the Revolver, depending on the Company’s consolidated net leverage ratio. The Company had unused capacity under the Revolver of approximately $445 million, which is net of bank letters of credit of approximately $3 million, as of March 31, 2024. In order to manage the Company’s exposure to variable interest rate risk associated with the Credit Facility, in the first quarter of 2023, the Company entered into $300.0 million notional amounts of three year interest rate swaps to convert a portion of the Company’s variable rate borrowings to an average fixed rate of 3.64% plus an applicable margin as provided in the Credit Facility based on the Company’s consolidated net leverage ratio. As of March 31, 2024, the aggregate interest rate on the swaps, including the fixed base rate plus the applicable margin, was 5.3%. See Note 17 of Notes to Condensed Consolidated Financial Statements. In connection with executing the original credit facility in 2019 and the amended Credit Facility during the second quarter of 2022, the Company capitalized an aggregate of $2.2 million of certain third-party and creditor debt issuance costs. Approximately $0.7 million of the capitalized costs were attributed to the Euro Term Loan and U.S. Term Loan. These costs were recorded as a direct offset of Long-term debt on the Condensed Consolidated Balance Sheet. Approximately $1.5 million of the capitalized costs were attributed to the Revolver and recorded within Other assets on the Condensed Consolidated Balance Sheet. These capitalized costs will collectively be amortized into Interest expense over the five year term of the Credit Facility. As of March 31, 2024, the Company had $1.4 million of debt issuance costs recorded as an offset of Long-term debt on the Condensed Consolidated Balance Sheets and $3.1 million of debt issuance costs recorded within Other assets on the Condensed Consolidated Balance Sheet. Comparatively, as of December 31, 2023, the Company had $1.5 million of debt issuance costs recorded as an offset of Long-term debt on the Condensed Consolidated Balance Sheets and $3.3 million of debt issuance costs recorded within Other assets on the Condensed Consolidated Balance Sheets. Industrial development bonds As of March 31, 2024 and December 31, 2023, the Company had fixed rate, industrial development authority bonds totaling $10.0 million in principal amount due in 2028. These bonds have similar covenants to the Credit Facility noted above. Bank lines of credit and other debt obligations The Company has certain unsecured bank lines of credit and discounting facilities in certain foreign subsidiaries, which are not collateralized. The Company’s other debt obligations primarily consist of certain domestic and foreign low interest rate or interest-free municipality-related loans, local credit facilities of certain foreign subsidiaries, and capital lease obligations. Total unused capacity under these arrangements as of March 31, 2024 was approximately $34 million. In addition to the bank letters of credit described in the “Credit facilities” subsection above, the Company’s other off-balance sheet arrangements include certain financial and other guarantees. The Company’s total bank letters of credit and guarantees outstanding as of March 31, 2024 were approximately $5 million. Interest expense, net The Company incurred the following debt related expenses included within Interest expense, net, in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023:
Based on the variable interest rates associated with the Credit Facility, as of March 31, 2024 and as of December 31, 2023, the amounts at which the Company’s total debt were recorded are not materially different from their fair market value.
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Accumulated Other Comprehensive Income |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following tables show the reclassifications from and resulting balances of accumulated other comprehensive income (“AOCI”):
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Fair Value Measurements |
3 Months Ended |
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Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company values its company-owned life insurance policies at fair value. During June 2023, the Company surrendered and liquidated $1.9 million of these life insurance policies. As a result, the Company owns an immaterial amount of company-owned life insurance policies as of March 31, 2024 and December 31, 2023. Additionally, see Note 17 for a description of the Company’s derivative instruments.
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Hedging Activities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedging Activities | Hedging Activities The Company’s ongoing business operations expose it to various risks, including fluctuating foreign exchange rates and interest rate risk. To manage these risks, the Company periodically enters into derivative financial instruments, such as foreign exchange forward contracts and interest rate swap agreements. The Company does not hold or enter into financial instruments for trading or speculative purposes. Foreign Exchange Forward Contracts The Company uses foreign exchange forward contracts to economically hedge the impact of the variability in exchange rates on certain assets and/or liabilities denominated in certain foreign currencies. These forward contracts are marked-to-market at each reporting date. Changes in the fair value of the underlying instrument and settlements are recognized in earnings in Other income (expense), net. The fair value of the forward contract is determined from sources independent of the Company, including the financial institutions which are party to the derivative instruments. Open foreign exchange forward contracts as of March 31, 2024 were entered into as hedges in Japanese yen and Mexican peso against the U.S. dollar and Chinese yuan against the Euro. As of March 31, 2024, the Company had open foreign exchange forward contracts with notional U.S. dollar values of the following:
Open foreign exchange forward contracts as of March 31, 2024 had maturities occurring over a period of one month. Interest Rate Swaps In order to manage the Company’s exposure to variable interest rate risk associated with the Credit Facility, such as the Secured Overnight Financing Rate (“SOFR”), in the first quarter of 2023, the Company entered into $300.0 million notional amounts of three year interest rate swaps to convert a portion of the Company’s variable rate borrowings into a fixed rate obligation. See Note 14 of Notes to Condensed Consolidated Financial Statements. These interest rate swaps are designated as cash flow hedges and, as such, the contracts are marked-to-market at each reporting date and any unrealized gains or losses are included in AOCI to the extent effective and reclassified to interest expense in the period during which the transaction affects earnings or it becomes probable that the forecasted transaction will not occur. The balance sheet classification and fair values of the Company’s derivative instruments, which are Level 2 measurements, are as follows:
The following table presents the net unrealized loss deferred to AOCI:
The following table presents the location and the amount of net gain recognized in the Company’s Condensed Consolidated Statements of Operations related to derivative instruments for the three months ended March 31, 2024 and 2023:
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As previously disclosed in its 2023 Form 10-K, the Company is party to certain environmental matters and other litigation. See Note 25 of Notes to Consolidated Financial Statements in the Company’s 2023 Form 10-K. During the three months ended March 31, 2024, there have been no significant changes to the facts or circumstances of any of the previously disclosed matters. Although there can be no assurance regarding the outcome of any of the ongoing environmental matters or litigation, the Company believes that it has made adequate accruals for costs and liabilities associated with these matters. The Company has accrued approximately $5 million as of both March 31, 2024 and December 31, 2023, respectively, for these ongoing matters. The Company previously disclosed in its 2023 Form 10-K that one of its locations suffered property damage as a result of an electrical fire. The Company and its insurance carrier continue to review the impact of the electrical fire on the production facility’s operations as it relates to a potential business interruption insurance claim; however, as of the date of this Report, the Company cannot reasonably estimate any probable amount of business interruption insurance claim recoverable. Therefore, the Company has not recorded a gain contingency for a possible business interruption insurance claim as of March 31, 2024. In December 2021, the Company completed its acquisition of Coral Chemical Company (“Coral”), a privately held, U.S.-based provider of metal finishing fluid solutions. Subsequent to the acquisition, the Company and the sellers of Coral (the “Sellers”) have worked to finalize certain post-closing adjustments. During the second quarter of 2022, after failing to reach resolution, the Sellers filed suit asserting certain amounts owed related to tax attributes of the acquisition. Since the second quarter of 2022, there have been no material changes to the facts and circumstances of the claim asserted by the Sellers, and the Company continues to believe the potential range of exposure for this claim is $0 to $1.5 million. In addition, during the three months ended March 31, 2024, there are no new environmental matters or litigation that the Company believes will have a material adverse effect on the Company’s results of operations, cash flows, or financial condition.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net income attributable to Quaker Chemical Corporation | $ 35,227 | $ 29,534 |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Description of Business (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation 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 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 three months ended March 31, 2024 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, 2023 (as amended, the “2023 Form 10-K”).
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Hyper-inflationary economies | Hyper-inflationary economies 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 months ended March 31, 2024, the Company's Argentine and Turkish subsidiaries together represented 1% and 2% of the Company’s consolidated total assets and net sales, respectively. During the three months ended March 31, 2024 and 2023, the Company recorded $0.9 million of remeasurement gains and $0.5 million of remeasurement losses associated with the applicable currency conversions, respectively. These gains and losses were recorded within Other income (expense), net, in the Company’s Condensed Consolidated Statements of Operations.
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Business Segments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following table presents information about the performance of the Company’s reportable segments for the three months ended March 31, 2024 and 2023:
All inter-segment transactions have been eliminated from each reportable segment’s net sales and earnings for all periods presented in the above tables. The following table summarizes inter-segment revenues for the three months ended March 31, 2024 and 2023:
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Net Sales and Revenue Recognition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following tables disaggregate the Company’s net sales by segment and customer industry.
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease, Cost | The components of the Company’s lease expense are as follows:
Supplemental cash flow information related to the Company’s leases for the three months ended March 31, 2024 and 2023 is as follows:
Supplemental balance sheet information related to the Company’s leases is as follows:
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Schedule of Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities as of March 31, 2024 were as follows:
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Restructuring and Related Activities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | Changes in the Company’s accruals for its restructuring program are as follows:
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Share Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-Based Payment Arrangement, Cost by Plan | The Company recognized the following share-based compensation expense in its Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023:
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Schedule Of Monte Carlo Option Pricing Model And The Assumptions | The grant-date fair value of the PSUs valued using a Monte Carlo simulation was $234.19 per unit, which incorporated the assumptions set forth in the table below:
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Pension and Other Postretirement Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits, Description [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The components of net periodic benefit cost (income) are as follows for the three months ended March 31, 2024 and 2023:
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Other (expense) income, net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Nonoperating (Expense) Income | The components of Other income (expense), net are as follows for the three months ended March 31, 2024 and 2023:
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes earnings per share calculations for the three months ended March 31, 2024 and 2023:
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Goodwill and Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Changes in the carrying amount of goodwill for the three months ended March 31, 2024 were as follows:
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Schedule of Finite-Lived Intangible Assets | Gross carrying amounts and accumulated amortization for definite-lived intangible assets were as follows:
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Schedule of Finite-lived Intangible Assets Amortization Expense | The Company recorded amortization expense for the three months ended March 31, 2024 and 2023 as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated annual aggregate amortization expense for the current year and subsequent five years is as follows:
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The following table sets forth the components of the Company’s debt:
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Schedule of Interest Income and Interest Expense Disclosure | The Company incurred the following debt related expenses included within Interest expense, net, in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023:
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Accumulated Other Comprehensive Income (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables show the reclassifications from and resulting balances of accumulated other comprehensive income (“AOCI”):
|
Hedging Activities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | As of March 31, 2024, the Company had open foreign exchange forward contracts with notional U.S. dollar values of the following:
|
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Schedule of Balance Sheet Classification and Fair Values of Derivative Instruments | The balance sheet classification and fair values of the Company’s derivative instruments, which are Level 2 measurements, are as follows:
The following table presents the net unrealized loss deferred to AOCI:
The following table presents the location and the amount of net gain recognized in the Company’s Condensed Consolidated Statements of Operations related to derivative instruments for the three months ended March 31, 2024 and 2023:
|
Basis of Presentation and Description of Business (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
segment
country
|
Mar. 31, 2023
USD ($)
|
|
Number of reportable segments | segment | 3 | |
Number of countries in which entity operates | country | 25 | |
Argentina | Argentine and Turkish Subsidiaries | ||
Currency conversion impacts of hyper-inflationary accounting | $ (0.9) | |
Argentina | Argentine and Turkish Subsidiaries | Assets Total | Geographic Concentration Risk | ||
Concentration risk (as a percent) | 1.00% | |
Argentina | Argentine and Turkish Subsidiaries | Sales Revenue Net | Geographic Concentration Risk | ||
Concentration risk (as a percent) | 2.00% | |
Argentina | ARGENTINA | ||
Currency conversion impacts of hyper-inflationary accounting | $ 0.5 |
Business Acquisitions - (Details) $ in Thousands, € in Millions |
1 Months Ended | ||||
---|---|---|---|---|---|
Feb. 29, 2024
USD ($)
|
Feb. 29, 2024
EUR (€)
|
Mar. 31, 2024
USD ($)
|
Feb. 29, 2024
EUR (€)
|
Dec. 31, 2023
USD ($)
|
|
Business Acquisition [Line Items] | |||||
Goodwill | $ 522,575 | $ 512,518 | |||
IKV | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 34,600 | € 32.2 | |||
Acquired intangible assets | 15,000 | ||||
Goodwill | 16,000 | ||||
Cash payments to acquire businesses | 29,700 | € 27.6 | |||
Earnouts | 4,900 | € 4.6 | |||
Cash acquired | 4,800 | ||||
IKV | Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible assets | $ 11,100 | ||||
Intangible assets, amortization period | 16 years | 16 years | |||
IKV | Product technologies | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible assets | $ 3,200 | ||||
Intangible assets, amortization period | 14 years | 14 years | |||
IKV | Trademarks | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible assets | $ 700 | ||||
Intangible assets, amortization period | 5 years | 5 years |
Business Segments - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
segment
| |
Segment Reporting, Measurement Disclosures [Abstract] | |
Number of reportable segments | 3 |
Net Sales and Revenue Recognition - Narrative (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024
USD ($)
segment
|
Mar. 31, 2023
USD ($)
|
Jun. 30, 2023 |
Dec. 31, 2023
USD ($)
|
|
Concentration Risk [Line Items] | ||||
Revenue recognized under net reporting arrangements | $ 19.8 | $ 20.7 | ||
Deferred revenue | $ 4.0 | $ 4.5 | ||
Number of reportable segments | segment | 3 | |||
Top Five Customers | Sales Revenue Net | Customer Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (as a percent) | 12.00% | |||
Largest Customers | Sales Revenue Net | Customer Concentration Risk | ||||
Concentration Risk [Line Items] | ||||
Concentration risk (as a percent) | 3.00% |
Leases - Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Lessee, Lease, Description [Line Items] | ||
Variable lease cost | $ 0 | $ 0 |
Sublease income | $ 0 | $ 0 |
Facilities Vehicles and Machinery and Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms (in years) | 11 years | |
Land | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms (in years) | 91 years |
Leases - Supplemental Information (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Lease, Cost [Abstract] | |||
Operating lease expense | $ 3,743 | $ 3,936 | |
Short-term lease expense | 199 | 211 | |
Supplemental cash flow information related to leases | |||
Operating cash flows from operating leases | 3,661 | 3,857 | |
Leased assets obtained in exchange for new operating lease liabilities | 3,234 | $ 2,833 | |
Supplemental balance sheet information | |||
Right of use lease assets | 38,195 | $ 38,614 | |
Other current liabilities | 11,818 | 11,965 | |
Long-term lease liabilities | 22,819 | 22,937 | |
Total operating lease liabilities | $ 34,637 | $ 34,902 | |
Weighted average remaining lease term (years) | 5 years | 5 years 1 month 6 days | |
Weighted average discount rate | 5.21% | 4.91% |
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
For the remainder of 2024 | $ 10,341 | |
For the year ended December 31, 2025 | 9,864 | |
For the year ended December 31, 2026 | 7,552 | |
For the year ended December 31, 2027 | 4,165 | |
For the year ended December 31, 2028 | 2,402 | |
For the year ended December 31, 2029 and beyond | 5,262 | |
Total lease payments | 39,586 | |
Less: imputed interest | (4,949) | |
Present value of lease liabilities | $ 34,637 | $ 34,902 |
Restructuring and Related Activities (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
position
|
Mar. 31, 2023
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||
Number of positions eliminated | position | 120 | |
Real estate, held-for-sale | $ 3,700 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring and related charges, net | 1,857 | $ 3,972 |
Restructuring Charges | ||
Restructuring Reserve [Roll Forward] | ||
Accrued restructuring, beginning balance | 3,350 | |
Restructuring and related charges, net | 1,857 | |
Cash payments | (3,666) | |
Currency translation adjustments | (25) | |
Accrued restructuring, ending balance | $ 1,516 |
Share-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 3,884 | $ 3,527 |
Stock options | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 175 | 431 |
Non-vested stock awards and restricted stock units | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 2,535 | 2,171 |
Director stock ownership plan | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 30 | 10 |
Performance stock units | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 1,144 | $ 915 |
Share-Based Compensation - Monte Carlo Simulation on Grant Date (Details) - Performance Stock Units |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Grant date per value (in dollars per unit) | $ / shares | $ 234.19 |
2024 Grants | |
Number of PSUs granted (in shares) | shares | 17,850 |
Risk-free interest rate | 4.55% |
Dividend yield | 0.91% |
Expected term (years) | 3 years |
Pension and Other Postretirement Benefits - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Pension Benefits | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 109 | $ 104 |
Interest cost | 2,375 | 2,455 |
Expected return on plan assets | (2,030) | (1,997) |
Actuarial loss (gain) amortization | 127 | 101 |
Prior service cost (income) amortization | 7 | 8 |
Net periodic benefit cost (income) | 588 | 671 |
Other Postretirement Benefits | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 0 | 0 |
Interest cost | 15 | 19 |
Expected return on plan assets | 0 | 0 |
Actuarial loss (gain) amortization | (29) | (30) |
Prior service cost (income) amortization | 0 | (4) |
Net periodic benefit cost (income) | $ (14) | $ (15) |
Pension and Other Postretirement Benefits - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $ 0.9 |
Expected future employer contributions, remainder of fiscal year | 5.7 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected future employer contributions, remainder of fiscal year | $ 0.2 |
Other (expense) income, net (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Other Income and Expenses [Abstract] | ||
Non-income tax refunds and other related credits | $ 2,155 | $ 360 |
Income from third party license fees | 225 | 325 |
Gain (loss) on disposals of property, plant, equipment and other assets, net | 407 | (19) |
Foreign exchange losses, net | (448) | (3,326) |
Pension and postretirement benefit costs, non-service components | (465) | (552) |
Facility remediation recoveries, net | 0 | 827 |
Product Liability Accrual, Period Expense | (896) | 0 |
Other non-operating income, net | 102 | 146 |
Total other income (expense), net | $ 1,080 | $ (2,239) |
Income Taxes and Uncertain Income Tax Positions - (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Effective tax rate (as a percent) | 27.30% | 27.70% |
Earnings Per Share - Basic (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | ||
Net income attributable to Quaker Chemical Corporation | $ 35,227 | $ 29,534 |
Less: income allocated to participating securities | (159) | (145) |
Net income available to common shareholders | $ 35,068 | $ 29,389 |
Basic weighted average common shares outstanding (in shares) | 17,908,814 | 17,866,670 |
Basic earnings per common share (in dollars per share) | $ 1.96 | $ 1.64 |
Earnings Per Share - Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | ||
Net income attributable to Quaker Chemical Corporation | $ 35,227 | $ 29,534 |
Less: income allocated to participating securities | (158) | (145) |
Net income available to common shareholders | $ 35,069 | $ 29,389 |
Basic weighted average common shares outstanding (in shares) | 17,908,814 | 17,866,670 |
Effect of dilutive securities (in shares) | 30,048 | 32,076 |
Diluted weighted average common shares outstanding (in shares) | 17,938,862 | 17,898,746 |
Diluted earnings per common share (in dollars per share) | $ 1.95 | $ 1.64 |
Earnings Per Share - Antidilutive Shares (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | ||
Antidilutive shares (in share) | 39,066 | 15,327 |
Goodwill and Other Intangible Assets - Gross Carrying Amounts and Accumulated Amortization for Definite-lived Intangible Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,012,550 | $ 1,009,067 |
Accumulated Amortization | 316,628 | 305,527 |
Net Book Value | 695,922 | 703,540 |
Customer lists and rights to sell | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 843,295 | 841,562 |
Accumulated Amortization | 253,464 | 243,872 |
Net Book Value | 589,831 | 597,690 |
Trademarks, formulations and product technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 163,391 | 161,613 |
Accumulated Amortization | 57,411 | 55,879 |
Net Book Value | 105,980 | 105,734 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,864 | 5,892 |
Accumulated Amortization | 5,753 | 5,776 |
Net Book Value | $ 111 | $ 116 |
Goodwill and Other Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 14,472 | $ 14,513 |
Goodwill and Other Intangible Assets - Intangible Assets - Future Amortization (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
For the remainder of 2024 | $ 43,248 |
For the year ended December 31, 2025 | 57,158 |
For the year ended December 31, 2026 | 56,470 |
For the year ended December 31, 2027 | 56,175 |
For the year ended December 31, 2028 | 55,835 |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 55,373 |
Goodwill and Other Intangible Assets - Indefinite Lived (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite lived intangible assets | $ 190.2 | |
Houghton Combination | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived trademarks | $ 193.2 |
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 769,632 | $ 755,612 |
Less: debt issuance costs | (1,434) | (1,545) |
Less: short-term and current portion of long-term debts | (27,790) | (23,444) |
Long-term debt | $ 740,408 | $ 730,623 |
Revolver | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.00% | 5.13% |
Outstanding Balance | $ 51,806 | $ 30,904 |
U.S. Term Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.54% | 6.71% |
Outstanding Balance | $ 557,500 | $ 561,250 |
Euro Term Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.00% | 5.13% |
Outstanding Balance | $ 148,032 | $ 152,366 |
Industrial development bonds | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.26% | 5.26% |
Outstanding Balance | $ 10,000 | $ 10,000 |
Bank lines of credit and other debt obligations | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 2,294 | $ 1,092 |
Debt - Debt Related Expenses Included within Interest Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt related expenses included within Interest expense: | ||
Interest expense | $ 11,282 | $ 13,876 |
Amortization of debt issuance costs | 353 | 353 |
Total | $ 11,635 | $ 14,229 |
Fair Value Measurements - Narrative (Details) $ in Millions |
1 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Fair Value Disclosures [Abstract] | |
Surrendered and liquidated life insurance policies | $ 1.9 |
Hedging Activities - Notional Amounts of Net Foreign Exchange Hedge Positions (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Derivative [Line Items] | |
Notional amount | $ 56,000 |
Mexican Peso | |
Derivative [Line Items] | |
Notional amount | 41,000 |
Japanese Yen | |
Derivative [Line Items] | |
Notional amount | 7,200 |
China, Yuan Renminbi | |
Derivative [Line Items] | |
Notional amount | $ 7,800 |
Hedging Activities - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Sep. 30, 2023 |
|
Foreign currency forward contracts: | ||
Derivative [Line Items] | ||
Derivative term (in years) | 1 month | |
Interest rate swaps: | ||
Derivative [Line Items] | ||
Derivative term (in years) | 3 years | |
Derivative liability, notional amount | $ 300.0 |
Hedging Activities - Balance Sheet Classification and Fair Values (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Jun. 30, 2023 |
Sep. 30, 2023 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) reclassified from AOCI to earnings | $ 2,229 | $ 293 | ||
Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) reclassified from AOCI to earnings | 1,286 | 0 | ||
Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) reclassified from AOCI to earnings | 943 | $ 293 | ||
Interest rate swaps: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net unrealized loss deferred to AOCI | 3,752 | $ 1,407 | ||
Other non-current assets | Interest rate swaps: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair Value | 4,873 | $ 1,828 | ||
Other accrued liabilities | Foreign currency forward contracts: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair Value | $ 687 | $ 159 |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Coral Chemical Company (Coral) | Minimum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | $ 0 | |
Coral Chemical Company (Coral) | Maximum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | 1,500 | |
Houghton Environmental Matters | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | $ 5,000 | $ 5,000 |
Label | Element | Value |
---|---|---|
Dividends, Common Stock | us-gaap_DividendsCommonStock | $ 8,186,000 |
Dividends, Common Stock | us-gaap_DividendsCommonStock | 7,822,000 |
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | us-gaap_StockGrantedDuringPeriodValueSharebasedCompensationGross | 2,443,000 |
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | us-gaap_StockGrantedDuringPeriodValueSharebasedCompensationGross | 1,418,000 |
Noncontrolling Interest [Member] | ||
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | 3,000 |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | (73,000) |
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 667,000 |
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 561,000 |
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 677,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 31,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 7,000 |
AOCI Attributable to Parent [Member] | ||
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | (22,572,000) |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | 15,063,000 |
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | (146,987,000) |
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | (123,177,000) |
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | (138,240,000) |
Retained Earnings [Member] | ||
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 469,920,000 |
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 577,682,000 |
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 491,632,000 |
Dividends, Common Stock | us-gaap_DividendsCommonStock | 8,186,000 |
Dividends, Common Stock | us-gaap_DividendsCommonStock | 7,822,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 35,227,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 29,534,000 |
Common Stock [Member] | ||
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 17,950,000 |
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 17,990,000 |
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 17,982,000 |
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | us-gaap_StockGrantedDuringPeriodValueSharebasedCompensationGross | (2,000) |
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | us-gaap_StockGrantedDuringPeriodValueSharebasedCompensationGross | 32,000 |
Additional Paid-in Capital [Member] | ||
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 928,288,000 |
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 942,546,000 |
Equity, Including Portion Attributable to Noncontrolling Interest | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | 929,674,000 |
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | us-gaap_StockGrantedDuringPeriodValueSharebasedCompensationGross | 2,445,000 |
Shares Granted, Value, Share-Based Payment Arrangement, before Forfeiture | us-gaap_StockGrantedDuringPeriodValueSharebasedCompensationGross | $ 1,386,000 |
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