2018 Form 10-K Financial Statement

#000008136219000002 Filed on February 28, 2019

View on sec.gov

Income Statement

Concept 2018 2017 Q4 2017 Q3
Revenue $867.5M $211.1M $212.9M
YoY Change 5.78% 10.37% 11.81%
Cost Of Revenue $555.2M $137.1M $138.1M
YoY Change 5.04% 12.93% 15.57%
Gross Profit $312.3M $74.00M $74.78M
YoY Change 7.14% 5.97% 5.47%
Gross Profit Margin 36.0% 35.06% 35.12%
Selling, General & Admin $207.9M $50.10M $51.09M
YoY Change 4.56% 2.45% 6.72%
% of Gross Profit 66.56% 67.71% 68.33%
Research & Development $24.50M
YoY Change 2.51%
% of Gross Profit 7.84%
Depreciation & Amortization $7.518M $5.000M $5.100M
YoY Change 0.39% 4.17% 4.08%
% of Gross Profit 2.41% 6.76% 6.82%
Operating Expenses $232.4M $50.00M $51.09M
YoY Change 4.34% 2.04% 6.72%
Operating Profit $87.78M $17.07M $14.01M
YoY Change 39.9% -18.51% -35.92%
Interest Expense $4.041M -$600.0K $793.0K
YoY Change 197.57% 50.0% 4.62%
% of Operating Profit 4.6% -3.51% 5.66%
Other Income/Expense, Net -$642.0K $500.0K $249.0K
YoY Change -10.58% -2590.0%
Pretax Income $27.39M $16.80M $14.23M
YoY Change 161.63% -18.45% -34.27%
Income Tax $25.05M $22.90M $3.140M
% Of Pretax Income 91.47% 136.31% 22.07%
Net Earnings $59.47M -$9.762M $11.14M
YoY Change 193.29% -155.99% -30.4%
Net Earnings / Revenue 6.86% -4.62% 5.23%
Basic Earnings Per Share $4.46 -$0.73 $0.84
Diluted Earnings Per Share $4.45 -$0.73 $0.83
COMMON SHARES
Basic Shares Outstanding 13.27M shares 13.22M shares
Diluted Shares Outstanding 13.30M shares 13.25M shares

Balance Sheet

Concept 2018 2017 Q4 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $104.1M $89.90M $109.1M
YoY Change 15.8% 1.24% 10.2%
Cash & Equivalents $104.1M $89.88M $109.1M
Short-Term Investments
Other Short-Term Assets $18.10M $21.10M $24.30M
YoY Change -14.22% 37.91% 12.5%
Inventory $94.10M $87.22M $90.30M
Prepaid Expenses
Receivables $202.1M $208.4M $218.2M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $418.5M $406.6M $441.9M
YoY Change 2.93% 8.0% 12.11%
LONG-TERM ASSETS
Property, Plant & Equipment $83.90M $86.70M $86.28M
YoY Change -3.23% 1.13% 2.88%
Goodwill $86.03M $85.82M
YoY Change 6.47% 8.18%
Intangibles $72.70M $74.61M
YoY Change -1.98% 5.25%
Long-Term Investments $21.30M $25.69M $25.19M
YoY Change -17.12% 12.59% 7.43%
Other Assets $39.00M $30.05M $29.64M
YoY Change -14.29% 4.51% 1.14%
Total Long-Term Assets $291.2M $315.5M $322.7M
YoY Change -7.7% -0.01% 6.37%
TOTAL ASSETS
Total Short-Term Assets $418.5M $406.6M $441.9M
Total Long-Term Assets $291.2M $315.5M $322.7M
Total Assets $709.7M $722.1M $764.5M
YoY Change -1.72% 4.35% 9.61%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $87.80M $93.01M $95.58M
YoY Change -5.59% 19.88% 21.64%
Accrued Expenses $32.00M $27.32M $20.50M
YoY Change 25.0% 16.62% 3.02%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $700.0K $5.700M $700.0K
YoY Change -87.72% 714.29% 0.0%
Total Short-Term Liabilities $151.5M $154.7M $156.1M
YoY Change -2.07% 21.45% 25.14%
LONG-TERM LIABILITIES
Long-Term Debt $35.90M $61.07M $72.37M
YoY Change -41.24% -7.15% -4.28%
Other Long-Term Liabilities $75.90M $51.50M $71.36M
YoY Change -12.76% 43.5% -0.38%
Total Long-Term Liabilities $111.8M $112.6M $143.7M
YoY Change -24.51% 10.73% -2.38%
TOTAL LIABILITIES
Total Short-Term Liabilities $151.5M $154.7M $156.1M
Total Long-Term Liabilities $111.8M $112.6M $143.7M
Total Liabilities $274.6M $312.5M $312.5M
YoY Change -12.69% 11.84% 10.11%
SHAREHOLDERS EQUITY
Retained Earnings $365.9M $380.4M
YoY Change 0.42% 8.21%
Common Stock $106.8M $126.4M
YoY Change -15.04% 1.38%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $435.1M $407.7M $440.2M
YoY Change
Total Liabilities & Shareholders Equity $709.7M $722.1M $764.5M
YoY Change -1.72% 4.35% 9.61%

Cashflow Statement

Concept 2018 2017 Q4 2017 Q3
OPERATING ACTIVITIES
Net Income $59.47M -$9.762M $11.14M
YoY Change 193.29% -155.99% -30.4%
Depreciation, Depletion And Amortization $7.518M $5.000M $5.100M
YoY Change 0.39% 4.17% 4.08%
Cash From Operating Activities $78.78M $24.00M $20.00M
YoY Change 21.64% 15.38% 17.65%
INVESTING ACTIVITIES
Capital Expenditures $12.89M -$2.900M -$2.800M
YoY Change 18.52% -21.62% 47.37%
Acquisitions $500.0K
YoY Change -90.68%
Other Investing Activities $500.0K $1.600M $0.00
YoY Change -113.51% -112.9% -100.0%
Cash From Investing Activities -$12.36M -$1.300M -$2.800M
YoY Change -15.4% -91.93% 64.71%
FINANCING ACTIVITIES
Cash Dividend Paid $19.32M
YoY Change 3.79%
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net $0.00
YoY Change
Cash From Financing Activities -$46.91M -42.70M -8.800M
YoY Change -15.04% 238.89% -30.71%
NET CHANGE
Cash From Operating Activities $78.78M 24.00M 20.00M
Cash From Investing Activities -$12.36M -1.300M -2.800M
Cash From Financing Activities -$46.91M -42.70M -8.800M
Net Change In Cash $13.38M -20.00M 8.400M
YoY Change 3732.38% 153.16% 223.08%
FREE CASH FLOW
Cash From Operating Activities $78.78M $24.00M $20.00M
Capital Expenditures $12.89M -$2.900M -$2.800M
Free Cash Flow $65.89M $26.90M $22.80M
YoY Change 22.27% 9.8% 20.63%

Facts In Submission

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22846000 USD
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27321000 USD
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51496000 USD
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12557000 USD
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2895000 USD
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1969000 USD
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1074000 USD
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4190000 USD
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6349000 USD
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CY2016 us-gaap Gain Loss On Sale Of Property Plant Equipment
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18000 USD
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762000 USD
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1023000 USD
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1941000 USD
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11705000 USD
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6135000 USD
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1870000 USD
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2932000 USD
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703000 USD
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12381000 USD
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14063000 USD
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64762000 USD
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73753000 USD
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10872000 USD
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9954000 USD
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5363000 USD
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15024000 USD
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1577000 USD
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186000 USD
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50000 USD
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32000 USD
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14513000 USD
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18613000 USD
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17625000 USD
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678000 USD
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31787000 USD
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0 USD
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0 USD
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0 USD
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6774000 USD
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491000 USD
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6349000 USD
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17954000 USD
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5859000 USD
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23021000 USD
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1.355
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1.465
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23900000 USD
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22500000 USD
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158895000 USD
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165313000 USD
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60668000 USD
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3058000 USD
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21015000 USD
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2660000 USD
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83098000 USD
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CY2016 us-gaap Increase Decrease In Restructuring Reserve
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21544000 USD
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25043000 USD
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2481000 USD
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363000 USD
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670000 USD
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3400000 USD
CY2016 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
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2900000 USD
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111255 shares
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50000 USD
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380000 USD
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338000 USD
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152000 USD
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5472000 USD
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1134000 USD
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497000 USD
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1056000 USD
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2679000 USD
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3779000 USD
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1071000 USD
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4581000 USD
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8602000 USD
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2816000 USD
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34320000 USD
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7401000 USD
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26919000 USD
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1295000 USD
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15373000 USD
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5736000 USD
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1594000 USD
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1594000 USD
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3290000 USD
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1
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10000000 shares
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1
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4190000 USD
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12477000 USD
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12432000 USD
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5600000 USD
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1300000 USD
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5859000 USD
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20231000 USD
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22563000 USD
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24919000 USD
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17903000 USD
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14009000 USD
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17074000 USD
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19015000 USD
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2037000 USD
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2889000 USD
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84009000 USD
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23226000 USD
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63039000 USD
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4.64
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4.63
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85353000 USD
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25050000 USD
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-2507000 USD
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4.45
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1119000 USD
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-84000 USD
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44106000 USD
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248000 USD
CY2018 us-gaap Comprehensive Income Net Of Tax
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43858000 USD
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406586000 USD
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25690000 USD
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15460000 USD
CY2017Q4 us-gaap Assets
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154743000 USD
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9653000 USD
CY2017Q4 us-gaap Liabilities
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104147000 USD
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202139000 USD
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94090000 USD
CY2018Q4 us-gaap Assets Current
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418510000 USD
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83923000 USD
CY2018Q4 us-gaap Goodwill
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10003000 USD
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405125000 USD
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2984000 USD
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3724000 USD
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657000 USD
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1055000 USD
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2822000 USD
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10548000 USD
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1540000 USD
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190000 USD
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0 USD
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78779000 USD
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12886000 USD
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500000 USD
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877000 USD
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2417000 USD
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281000 USD
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24500000 USD
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0 USD
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1100000 USD
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184183000 USD
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866000 USD
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162000 USD
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0 USD
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26791000 USD
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19319000 USD
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82000 USD
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0 USD
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0 USD
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72223000 USD
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7518000 USD
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137294000 USD
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12196000 USD
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657000 USD
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425000 USD
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252000 USD
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48134000 USD
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45956000 USD
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8462000 USD
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3330000 USD
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31108000 USD
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20278000 USD
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8097000 USD
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6886000 USD
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624000 USD
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3724000 USD
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122072 shares
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86635 shares
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35437 shares
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151.75
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83.96
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125.48
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94.17
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P5Y
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P5Y4M
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P4Y2M
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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116.39
CY2017Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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97.71
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122072 shares
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116.39
CY2018 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Outstanding Options Weighted Average Remaining Contractual Term2
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2
P5Y
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100000 USD
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6583000 USD
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SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1
94.17
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35437 shares
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16853000 USD
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7859000 USD
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511000 USD
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27387000 USD
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55711000 USD
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3532000 USD
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1160000 USD
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396000 USD
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896000 USD
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2862000 USD
CY2018Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Employee Bonuses
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4347000 USD
CY2018Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost
753000 USD
CY2018Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Legal Settlements
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4374000 USD
CY2018Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
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8434000 USD
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2645000 USD
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30928000 USD
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7520000 USD
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23408000 USD
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4049000 USD
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1062000 USD
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13497000 USD
CY2018Q4 us-gaap Deferred Tax Liabilities
DeferredTaxLiabilities
26465000 USD
CY2018 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
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17458000 USD
CY2018 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
1081000 USD
CY2018 us-gaap Income Tax Reconciliation Tax Credits Foreign
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0 USD
CY2018 us-gaap Income Tax Reconciliation Tax Credits Research
IncomeTaxReconciliationTaxCreditsResearch
230000 USD
CY2018 us-gaap Income Tax Reconciliation Tax Contingencies
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-79000 USD
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0 USD
CY2018 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
196000 USD
CY2018 us-gaap Income Tax Reconciliation Nondeductible Expense Meals And Entertainment
IncomeTaxReconciliationNondeductibleExpenseMealsAndEntertainment
415000 USD
CY2018 us-gaap Income Tax Reconciliation Other Adjustments
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15000 USD
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7050000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
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2023000 USD
CY2018 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
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1292000 USD
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100000 USD
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210000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits Interest On Income Taxes Accrued
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600000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAccrued
800000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
2200000 USD
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UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
1800000 USD
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200000 USD
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100000 USD
CY2017Q4 kwr Unrecognized Tax Benefits Interest Income On Income Taxes
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200000 USD
CY2016Q4 kwr Unrecognized Tax Benefits Interest Income On Income Taxes
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700000 USD
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253000 USD
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59220000 USD
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252000 USD
CY2018 us-gaap Net Income Loss Available To Common Stockholders Diluted
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59221000 USD
CY2018 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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36685 shares
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13304732 shares
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1808 shares
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207300000 USD
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13200000 USD
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0 USD
CY2018Q4 us-gaap Land
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84980000 USD
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151180000 USD
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7907000 USD
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254237000 USD
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170314000 USD
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0 USD
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5840000 USD
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114104000 USD
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51622000 USD
CY2017Q4 kwr Finite Lived Trademarks Formulations And Product Technology Gross
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33025000 USD
CY2018Q4 kwr Finite Lived Trademarks Formulations And Product Technology Gross
FiniteLivedTrademarksFormulationsAndProductTechnologyGross
33275000 USD
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7160000 USD
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6879000 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
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6529000 USD
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6374000 USD
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6155000 USD
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20278000 USD
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4861000 USD
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1491000 USD
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1769000 USD
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1491000 USD
CY2018Q4 us-gaap Assets Fair Value Disclosure
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1491000 USD
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0 USD
CY2018Q4 us-gaap Line Of Credit
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24034000 USD
CY2018Q4 kwr Debt Instrument Idrb
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10000000 USD
CY2018Q4 us-gaap Loans Payable
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2549000 USD
CY2018Q4 us-gaap Other Long Term Debt
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21000 USD
CY2018Q4 us-gaap Debt And Capital Lease Obligations
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36604000 USD
CY2018Q4 us-gaap Short Term Borrowings
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0 USD
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670000 USD
CY2018Q4 us-gaap Long Term Debt And Capital Lease Obligations
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35934000 USD
CY2018Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
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670000 USD
CY2018Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
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24730000 USD
CY2018Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Three
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree
398000 USD
CY2018Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Four
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270000 USD
CY2018Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Five
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240000 USD
CY2018 us-gaap Other Comprehensive Income Loss Before Reclassifications Before Tax
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-18508000 USD
CY2018 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax
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3520000 USD
CY2018 us-gaap Other Comprehensive Income Loss Tax Portion Attributable To Parent1
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-627000 USD
CY2018 us-gaap Stock Issued During Period Shares Share Based Compensation
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17596 shares
CY2018 us-gaap Stock Issued During Period Shares Employee Stock Ownership Plan
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3574 shares
CY2018 us-gaap Stock Issued During Period Shares Other
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8880 shares
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Current
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7068000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Two Years
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5635000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Three Years
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4509000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Four Years
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3523000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Five Years
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2659000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Thereafter
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7779000 USD
CY2018 us-gaap Lease And Rental Expense
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7200000 USD
CY2018Q4 us-gaap Loss Contingency Accrual At Carrying Value
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200000 USD
CY2018Q4 us-gaap Assets
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709665000 USD
CY2018Q4 us-gaap Accounts Payable Current
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87819000 USD
CY2018Q4 us-gaap Liabilities Current
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151470000 USD
CY2018Q4 us-gaap Liabilities
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273296000 USD
CY2018Q4 us-gaap Liabilities And Stockholders Equity
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709665000 USD
CY2018 us-gaap Earnings Per Share Basic
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4.46
CY2018Q4 us-gaap Gross Profit
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74838000 USD
CY2018Q4 us-gaap Operating Income Loss
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20068000 USD
CY2018Q4 us-gaap Net Income Loss
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7805000 USD
CY2018Q4 us-gaap Earnings Per Share Basic
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0.59
CY2018Q4 us-gaap Earnings Per Share Diluted
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0.58
CY2018 us-gaap Accounts Receivable Additional Narrative Disclosure
AccountsReceivableAdditionalNarrativeDisclosure
Included in exchange rate changes and other adjustments for the year ended December 31, 2018 is a reclassification of $0.3 million to Other assets related to certain customer receivables due greater than a year. There were no similar adjustments in 2017 or 2016. Included in write-offs charged to allowance during the years ended December 31, 2017 and 2016 were outstanding receivables related to certain prior year customer bankruptcies, which the Company previously reserved for, but settled during 2017 and 2016, respectively.
CY2017Q4 us-gaap Defined Benefit Plan Fair Value Of Plan Assets
DefinedBenefitPlanFairValueOfPlanAssets
150586000 USD
CY2018Q4 us-gaap Defined Benefit Plan Amount Of Employer And Related Party Securities Included In Plan Assets
DefinedBenefitPlanAmountOfEmployerAndRelatedPartySecuritiesIncludedInPlanAssets
0 USD
CY2018 us-gaap Defined Contribution Plan Employer Matching Contribution Percent
DefinedContributionPlanEmployerMatchingContributionPercent
0.03 pure
CY2018 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
3100000 USD
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
7185000 USD
CY2018Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue
4312000 USD
CY2018Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
2873000 USD
CY2018 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
0 USD
CY2017 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
0 USD
CY2018 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div><p style='text-align:left;margin-top:4pt;margin-bottom:4pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:18pt;' >Reclassifications:</font><font style='font-family:Times New Roman;font-size:10pt;' > Certain information has been reclassified to conform to the current year presentation. During the first quarter of 201</font><font style='font-family:Times New Roman;font-size:10pt;' >8, the Company adopted guidance regarding the accounting for and disclosure of net sales and revenue recognition. The Company&#8217;s adoption, using the modified retrospective adoption approach, resulted in certain adjustments as of January 1, 2018. In additi</font><font style='font-family:Times New Roman;font-size:10pt;' >on, during the first quarter of 2018, the Company adopted an accounting standard update requiring that the statement of cash flows explain both the change in total cash and cash equivalents and also the amounts generally described as restricted cash or res</font><font style='font-family:Times New Roman;font-size:10pt;' >tricted cash equivalents. The guidance in this accounting standard update was required to be applied retrospectively which resulted in certain adjustments to the Company&#8217;s Consolidated Statement of Cash Flows for the year ended December 31, 2017 and 2016.</font><font style='font-family:Times New Roman;font-size:10pt;' > See Note</font><font style='font-family:Times New Roman;font-size:10pt;' >s 3, 4 and 11</font><font style='font-family:Times New Roman;font-size:10pt;' > of Notes to Consolidated Financial Statements.</font></p><p style='text-align:left;margin-top:4pt;margin-bottom:4pt;line-height:12pt;' ></p></div>
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
183000 USD
CY2017 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
308000 USD
CY2016 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
869000 USD
CY2017 us-gaap Stock Granted During Period Value Sharebased Compensation Gross
StockGrantedDuringPeriodValueSharebasedCompensationGross
4190000 USD
CY2018Q4 us-gaap Business Combination Separately Recognized Transactions Liabilities Recognized
BusinessCombinationSeparatelyRecognizedTransactionsLiabilitiesRecognized
8200000 USD
CY2018 us-gaap Business Combination Separately Recognized Transactions Additional Disclosures Acquisition Cost Expensed
BusinessCombinationSeparatelyRecognizedTransactionsAdditionalDisclosuresAcquisitionCostExpensed
19500000 USD
CY2018 us-gaap Business Combination Acquisition Related Costs
BusinessCombinationAcquisitionRelatedCosts
16661000 USD
CY2017 us-gaap Business Combination Separately Recognized Transactions Additional Disclosures Acquisition Cost Expensed
BusinessCombinationSeparatelyRecognizedTransactionsAdditionalDisclosuresAcquisitionCostExpensed
30800000 USD
CY2017Q4 us-gaap Business Combination Separately Recognized Transactions Liabilities Recognized
BusinessCombinationSeparatelyRecognizedTransactionsLiabilitiesRecognized
5500000 USD
CY2018 kwr Director Stock Ownership Cash Retainer
DirectorStockOwnershipCashRetainer
Under the Plan, each director who, on May 1 of the applicable calendar year, owns less than 400% of the annual cash retainer for the applicable calendar year, divided by the average of the closing price of a share of Quaker Common Stock as reported by the composite tape of the New York Stock Exchange for the previous calendar year (the “Threshold Amount”), is required to receive 75% of the annual cash retainer in Quaker common stock and 25% of the retainer in cash, unless the director elects to receive a greater percentage of Quaker common stock, up to 100% of the annual cash retainer for the applicable year. Each director who owns more than the Threshold Amount may elect to receive common stock in payment of a percentage (up to 100%) of the annual cash retainer.
CY2017 us-gaap Business Combination Acquisition Related Costs
BusinessCombinationAcquisitionRelatedCosts
29938000 USD
CY2016 us-gaap Business Combination Acquisition Related Costs
BusinessCombinationAcquisitionRelatedCosts
1531000 USD
CY2017 us-gaap Pension And Other Postretirement Benefit Contributions
PensionAndOtherPostretirementBenefitContributions
123000 USD
CY2018 us-gaap Pension And Other Postretirement Benefit Contributions
PensionAndOtherPostretirementBenefitContributions
1392000 USD
CY2018 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
4932000 USD
CY2017 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
-3479000 USD
CY2016 us-gaap Increase Decrease In Accrued Income Taxes Payable
IncreaseDecreaseInAccruedIncomeTaxesPayable
-5226000 USD
CY2016 us-gaap Noncontrolling Interest Increase From Subsidiary Equity Issuance
NoncontrollingInterestIncreaseFromSubsidiaryEquityIssuance
73000 USD
CY2017 us-gaap Minority Interest Decrease From Redemptions
MinorityInterestDecreaseFromRedemptions
-31787000 USD
CY2017 us-gaap Stock Issued During Period Value Employee Stock Ownership Plan
StockIssuedDuringPeriodValueEmployeeStockOwnershipPlan
495000 USD
CY2017 us-gaap Restructuring Charges
RestructuringCharges
0 USD
CY2017 us-gaap Payments For Restructuring
PaymentsForRestructuring
675000 USD
CY2017 us-gaap Restructuring Reserve Translation Adjustment
RestructuringReserveTranslationAdjustment
-5000 USD
CY2016 us-gaap Payments For Restructuring
PaymentsForRestructuring
5252000 USD
CY2016 us-gaap Restructuring Reserve Translation Adjustment
RestructuringReserveTranslationAdjustment
-58000 USD
CY2015Q4 us-gaap Restructuring Reserve
RestructuringReserve
6303000 USD
CY2018 us-gaap Restructuring And Related Cost Description
RestructuringAndRelatedCostDescription
The 2015 Program included provisions for the reduction of total headcount by approximately 65 employees globally. The Company substantially completed all of the initiatives under the 2015 Program in 2016 and settlement of these charges occurred primarily in 2016 as well. During the fourth quarter of 2016, the Company recognized a restructuring credit of $0.4 million in connection with the 2015 Program, due to customary and routine adjustments to initial estimates for employee separation costs.
CY2018 kwr Proceeds From Non Income Tax Refunds
ProceedsFromNonIncomeTaxRefunds
668000 USD
CY2017 kwr Proceeds From Non Income Tax Refunds
ProceedsFromNonIncomeTaxRefunds
1015000 USD
CY2016 kwr Proceeds From Non Income Tax Refunds
ProceedsFromNonIncomeTaxRefunds
398000 USD
CY2018Q4 us-gaap Accrued Marketing Costs Current
AccruedMarketingCostsCurrent
3582000 USD
CY2017Q4 us-gaap Accrued Marketing Costs Current
AccruedMarketingCostsCurrent
2846000 USD
CY2018Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
3831000 USD
CY2017Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
5019000 USD
CY2018Q4 us-gaap Loss Contingency Accrual Carrying Value Current
LossContingencyAccrualCarryingValueCurrent
1067000 USD
CY2017Q4 us-gaap Loss Contingency Accrual Carrying Value Current
LossContingencyAccrualCarryingValueCurrent
1169000 USD
CY2018Q4 us-gaap Customer Advances Current
CustomerAdvancesCurrent
2187000 USD
CY2017Q4 us-gaap Customer Advances Current
CustomerAdvancesCurrent
1507000 USD
CY2018Q4 us-gaap Accrued Rent Current
AccruedRentCurrent
763000 USD
CY2017Q4 us-gaap Accrued Rent Current
AccruedRentCurrent
775000 USD
CY2017Q4 us-gaap Loss Contingency Accrual At Carrying Value
LossContingencyAccrualAtCarryingValue
200000 USD
CY2018Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards Foreign
DeferredTaxAssetsTaxCreditCarryforwardsForeign
1929000 USD
CY2017Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards Foreign
DeferredTaxAssetsTaxCreditCarryforwardsForeign
3043000 USD
CY2018 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
207872000 USD
CY2018Q4 us-gaap Decrease In Unrecognized Tax Benefits Is Reasonably Possible
DecreaseInUnrecognizedTaxBenefitsIsReasonablyPossible
900000 USD
CY2018Q4 us-gaap Increase In Unrecognized Tax Benefits Is Reasonably Possible
IncreaseInUnrecognizedTaxBenefitsIsReasonablyPossible
900000 USD
CY2017 kwr Unrecognized Tax Benefits Income Tax Penalties Income
UnrecognizedTaxBenefitsIncomeTaxPenaltiesIncome
700000 USD
CY2018 kwr Increasedecreaseinaccruednoncurrentincometaxespayable
Increasedecreaseinaccruednoncurrentincometaxespayable
8181000 USD
CY2017 kwr Increasedecreaseinaccruednoncurrentincometaxespayable
Increasedecreaseinaccruednoncurrentincometaxespayable
-15825000 USD
CY2016 kwr Increasedecreaseinaccruednoncurrentincometaxespayable
Increasedecreaseinaccruednoncurrentincometaxespayable
0 USD
CY2018 kwr Pensionandpostretirementbenefitcostsnonservicecomponents
Pensionandpostretirementbenefitcostsnonservicecomponents
-2285000 USD
CY2018 kwr Insurancesolvencyrecovery
Insurancesolvencyrecovery
90000 USD
CY2017 kwr Pensionandpostretirementbenefitcostsnonservicecomponents
Pensionandpostretirementbenefitcostsnonservicecomponents
-4234000 USD
CY2017 kwr Insurancesolvencyrecovery
Insurancesolvencyrecovery
600000 USD
CY2016 kwr Pensionandpostretirementbenefitcostsnonservicecomponents
Pensionandpostretirementbenefitcostsnonservicecomponents
-2302000 USD
CY2016 kwr Insurancesolvencyrecovery
Insurancesolvencyrecovery
0 USD
CY2018 us-gaap Foreign Currency Transaction Gain Loss Realized
ForeignCurrencyTransactionGainLossRealized
-807000 USD
CY2017 us-gaap Foreign Currency Transaction Gain Loss Realized
ForeignCurrencyTransactionGainLossRealized
891000 USD
CY2016 us-gaap Foreign Currency Transaction Gain Loss Realized
ForeignCurrencyTransactionGainLossRealized
172000 USD
CY2018 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
IncomeTaxReconciliationChangeInEnactedTaxRate
-3118000 USD
CY2018 us-gaap Income Tax Expense Benefit Continuing Operations Adjustment Of Deferred Tax Asset Liability
IncomeTaxExpenseBenefitContinuingOperationsAdjustmentOfDeferredTaxAssetLiability
0 USD
CY2018 us-gaap Income Tax Reconciliation Nondeductible Expense Other
IncomeTaxReconciliationNondeductibleExpenseOther
1019000 USD
CY2018 us-gaap Income Tax Reconciliation Deductions Other
IncomeTaxReconciliationDeductionsOther
-259000 USD
CY2017 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
IncomeTaxReconciliationChangeInEnactedTaxRate
18388000 USD
CY2017 us-gaap Income Tax Expense Benefit Continuing Operations Adjustment Of Deferred Tax Asset Liability
IncomeTaxExpenseBenefitContinuingOperationsAdjustmentOfDeferredTaxAssetLiability
4470000 USD
CY2017 us-gaap Income Tax Reconciliation Nondeductible Expense Other
IncomeTaxReconciliationNondeductibleExpenseOther
4779000 USD
CY2017 us-gaap Income Tax Reconciliation Deductions Other
IncomeTaxReconciliationDeductionsOther
1419000 USD
CY2016 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
IncomeTaxReconciliationChangeInEnactedTaxRate
0 USD
CY2016 us-gaap Income Tax Expense Benefit Continuing Operations Adjustment Of Deferred Tax Asset Liability
IncomeTaxExpenseBenefitContinuingOperationsAdjustmentOfDeferredTaxAssetLiability
0 USD
CY2016 us-gaap Income Tax Reconciliation Nondeductible Expense Other
IncomeTaxReconciliationNondeductibleExpenseOther
696000 USD
CY2016 us-gaap Income Tax Reconciliation Deductions Other
IncomeTaxReconciliationDeductionsOther
0 USD
CY2018Q4 us-gaap Accrued Income Taxes Noncurrent
AccruedIncomeTaxesNoncurrent
7644000 USD
CY2017Q4 us-gaap Accrued Income Taxes Noncurrent
AccruedIncomeTaxesNoncurrent
15825000 USD
CY2018Q4 us-gaap Defined Benefit Plan Health Care Cost Trend Rate Assumed Next Fiscal Year
DefinedBenefitPlanHealthCareCostTrendRateAssumedNextFiscalYear
0.062 pure
CY2018Q4 us-gaap Defined Benefit Plan Ultimate Health Care Cost Trend Rate1
DefinedBenefitPlanUltimateHealthCareCostTrendRate1
0.045 pure
CY2017Q4 us-gaap Defined Benefit Plan Health Care Cost Trend Rate Assumed Next Fiscal Year
DefinedBenefitPlanHealthCareCostTrendRateAssumedNextFiscalYear
0.064 pure
CY2017Q4 us-gaap Defined Benefit Plan Ultimate Health Care Cost Trend Rate1
DefinedBenefitPlanUltimateHealthCareCostTrendRate1
0.045 pure
CY2018 us-gaap Defined Benefit Plan Effect Of One Percentage Point Increase On Service And Interest Cost Components
DefinedBenefitPlanEffectOfOnePercentagePointIncreaseOnServiceAndInterestCostComponents
11000 USD
CY2018 us-gaap Defined Benefit Plan Effect Of One Percentage Point Increase On Accumulated Postretirement Benefit Obligation
DefinedBenefitPlanEffectOfOnePercentagePointIncreaseOnAccumulatedPostretirementBenefitObligation
299000 USD
CY2018 us-gaap Defined Benefit Plan Effect Of One Percentage Point Decrease On Service And Interest Cost Components1
DefinedBenefitPlanEffectOfOnePercentagePointDecreaseOnServiceAndInterestCostComponents1
9000 USD
CY2018 us-gaap Defined Benefit Plan Effect Of One Percentage Point Decrease On Accumulated Postretirement Benefit Obligation1
DefinedBenefitPlanEffectOfOnePercentagePointDecreaseOnAccumulatedPostretirementBenefitObligation1
311000 USD
CY2018Q4 kwr Defined Benefit Plan Fair Value Of Plan Assets Excluding Assets Measured At Net Asset Value
DefinedBenefitPlanFairValueOfPlanAssetsExcludingAssetsMeasuredAtNetAssetValue
93273000 USD
CY2018Q4 kwr Defined Benefit Plan Fair Value Of Plan Assets Measured At Net Asset Value
DefinedBenefitPlanFairValueOfPlanAssetsMeasuredAtNetAssetValue
50968000 USD
CY2017Q4 kwr Defined Benefit Plan Fair Value Of Plan Assets Excluding Assets Measured At Net Asset Value
DefinedBenefitPlanFairValueOfPlanAssetsExcludingAssetsMeasuredAtNetAssetValue
98456000 USD
CY2017Q4 kwr Defined Benefit Plan Fair Value Of Plan Assets Measured At Net Asset Value
DefinedBenefitPlanFairValueOfPlanAssetsMeasuredAtNetAssetValue
52130000 USD
CY2018 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35 pure
CY2018 us-gaap Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate
EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate
0.21 pure
CY2018 us-gaap Defined Benefit Plan Explanation Of Significant Change In Benefit Obligation Or Plan Assets Not Apparent From Other Required Disclosures
DefinedBenefitPlanExplanationOfSignificantChangeInBenefitObligationOrPlanAssetsNotApparentFromOtherRequiredDisclosures
During the second quarter of 2017, the Company’s primary noncontributory U.S. pension plan (the “U.S. Pension Plan”) offered a cash settlement to its vested terminated participants, which allowed them to receive the value of their pension benefits as a single lump sum payment. As payments from the U.S. Pension Plan for this cash out offering exceeded the service and interest cost components of the U.S. Pension Plan expense for the year ended December 31, 2017, the Company recorded a settlement charge of approximately $1.9 million. This settlement charge represented the immediate recognition into expense of a portion of the unrecognized loss within AOCI on the balance sheet in proportion to the share of the projected benefit obligation that was settled by these payments. The gross pension benefit obligation was reduced by approximately $4.0 million as a result of these payments.
CY2018Q4 us-gaap Defined Benefit Plan Assets For Plan Benefits Noncurrent
DefinedBenefitPlanAssetsForPlanBenefitsNoncurrent
3656000 USD
CY2017Q4 us-gaap Defined Benefit Plan Assets For Plan Benefits Noncurrent
DefinedBenefitPlanAssetsForPlanBenefitsNoncurrent
1184000 USD
CY2016 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
2256000 USD
CY2016 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
1636000 USD
CY2016 us-gaap Cost Of Goods And Services Sold
CostOfGoodsAndServicesSold
466555000 USD
CY2016 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
193665000 USD
CY2016 us-gaap Costs And Expenses
CostsAndExpenses
661312000 USD
CY2016 kwr Income Loss From Continuing Operations Before Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeMinorityInterestAndIncomeLossFromEquityMethodInvestments
60783000 USD
CY2018 us-gaap Cost Of Goods And Services Sold
CostOfGoodsAndServicesSold
555206000 USD
CY2018 us-gaap Costs And Expenses
CostsAndExpenses
779739000 USD
CY2018 kwr Income Loss From Continuing Operations Before Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeMinorityInterestAndIncomeLossFromEquityMethodInvestments
58048000 USD
CY2018 kwr Combinationrelatedexpensesnetofpayements
Combinationrelatedexpensesnetofpayements
2727000 USD
CY2017 kwr Combinationrelatedexpensesnetofpayements
Combinationrelatedexpensesnetofpayements
4952000 USD
CY2016 kwr Combinationrelatedexpensesnetofpayements
Combinationrelatedexpensesnetofpayements
503000 USD
CY2016Q4 us-gaap Business Combination Acquired Receivables Estimated Uncollectible
BusinessCombinationAcquiredReceivablesEstimatedUncollectible
100000 USD
CY2018Q4 us-gaap Capital Leased Assets Gross
CapitalLeasedAssetsGross
100000 USD
CY2018 us-gaap Loss Contingency Settlement Agreement Terms
LossContingencySettlementAgreementTerms
The Company has restricted cash recorded in Other assets related to proceeds from an inactive subsidiary of the Company which previously executed separate settlement and release agreements with two of its insurance carriers for an original total value of $35.0 million. The proceeds of both settlements are restricted and can only be used to pay claims and costs of defense associated with the subsidiary’s asbestos litigation. The proceeds of the settlement and release agreements have been deposited into interest bearing accounts which earned $0.2 million and less than $0.1 million in the years ended December 31, 2018 and 2017, respectively, offset by $1.1 million and $0.8 million of net payments in 2018 and 2017, respectively.
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
124425000 USD
CY2018 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
1763000 USD
CY2018 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
338000 USD
CY2018Q4 us-gaap Restricted Cash
RestrictedCash
20278000 USD
CY2017Q4 us-gaap Restricted Cash
RestrictedCash
21171000 USD
CY2016Q4 us-gaap Restricted Cash
RestrictedCash
21883000 USD
CY2015Q4 us-gaap Restricted Cash
RestrictedCash
22874000 USD
CY2015Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
103927000 USD
CY2016Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
110701000 USD
CY2017Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
111050000 USD
CY2016 us-gaap Business Combination Separately Recognized Transactions Additional Disclosures Acquisition Cost Expensed
BusinessCombinationSeparatelyRecognizedTransactionsAdditionalDisclosuresAcquisitionCostExpensed
1500000 USD
CY2018 us-gaap Business Combination Separately Recognized Transactions Description
BusinessCombinationSeparatelyRecognizedTransactionsDescription
In April 2017, Quaker entered into a share purchase agreement with Gulf Houghton Lubricants, Ltd. to purchase the entire issued and outstanding share capital of Houghton International, Inc. (“Houghton”) (herein referred to as “the Combination”).  The shares will be bought for aggregate purchase consideration consisting of: (i) $172.5 million in cash; (ii) a number of shares of common stock, $1.00 par value per share, of the Company comprising 24.5% of the common stock outstanding upon the closing of the Combination; and (iii) the Company’s assumption of Houghton’s net indebtedness as of the closing of the Combination, which was approximately $690 million at signing.  At closing, the total aggregate purchase consideration is dependent on the Company’s stock price and the level of Houghton’s indebtedness. The Company secured $1.15 billion in commitments from Bank of America Merrill Lynch and Deutsche Bank to fund the Combination and to provide additional liquidity, and has since replaced these commitments with a syndicated bank agreement (“the New Credit Facility”) with a group of lenders for $1.15 billion.  The New Credit Facility is contingent upon and will not be effective until the closing of the Combination.  During the fourth quarter of 2018, the Company extended the bank commitment for the New Credit Facility through March 15, 2019.  The New Credit Facility is comprised of a $400.0 million multicurrency revolver, a $600.0 million USD term loan and a $150.0 million EUR equivalent term loan, each with a five-year term from the date the New Credit Facility becomes effective.  The maximum amount available under the New Credit Facility can be increased by $200.0 million at the Company’s option if the lenders agree and the Company satisfies certain conditions.  Borrowings under the New Credit Facility will bear interest at a base rate, LIBOR rate plus a margin, or Euribor rate plus a margin.  The Company currently estimates the annual floating rate cost will be in the 3.75% to 4.0% range based on current market interest rates.  The New Credit Facility will be subject to certain financial and other covenants, including covenants that the Company’s consolidated net debt to adjusted EBITDA ratio cannot exceed 4.25 to 1 and the Company’s consolidated adjusted EBITDA to interest expense ratio cannot be less than 3.0 to 1.  Both the USD and EUR equivalent term loans will have quarterly principal amortization during their respective five-year terms, with 5.0% amortization of the principal balance due in years 1 and 2, 7.5% in year 3, and 10.0% in years 4 and 5, with the remaining principal amounts due at maturity.  Until closing, the Company will incur certain interest costs paid to maintain the bank commitment (“ticking fees”), which began to accrue on September 29, 2017 and bear an interest rate of 0.30% per annum. The Company received regulatory approval for the Combination from China and Australia in 2017. In addition, at a shareholder meeting held during 2017, the Company’s shareholders overwhelmingly approved the issuance of the new shares of the Company’s common stock at closing of the Combination. The European Commission (“EC”) conditionally approved the Combination in December 2018, including the remedy proposed by Quaker and Houghton. The Company expects final approval from the EC once the final purchase agreement is in place between Quaker, Houghton, and the buyer of the divested product lines. The Company continues to be in productive discussions with the U.S. Federal Trade Commission (“FTC”), although the process is taking longer than anticipated. Given the time lapse since the Company’s initial filing, the FTC requested updated information as part of their approval process late in the fourth quarter of 2018. In addition, the government shutdown in the U.S. during the first quarter of 2019 extended the timeline to receive the final approval. Given current information, the Company estimates that FTC and EC final approval and closing of the combination will occur within the next few months.
CY2018 kwr Currencyconversionimpactsofhyperinflationaryaccounting
Currencyconversionimpactsofhyperinflationaryaccounting
During the years ended December 31, 2018, 2017 and 2016, the Company recorded $0.7 million, $0.4 million, and $0.1 million, respectively, of hyper-inflationary accounting remeasurement losses associated with the applicable currency conversions related to Venezuela and Argentina.
CY2018Q4 kwr Inflationary Percentage
InflationaryPercentage
1 pure
CY2018 us-gaap New Accounting Pronouncement Or Change In Accounting Principle Description
NewAccountingPronouncementOrChangeInAccountingPrincipleDescription
Adoption of the revenue recognition guidance did not have a material impact on the Company’s reported earnings or cash flows, however, adoption did increase the amount and level of disclosures concerning the Company’s net sales and did result in one adjustment to the Company’s balance sheet. As a result of the Company’s impact assessment and adoption using the modified retrospective adoption approach, the Company recorded a cumulative effect of an accounting change as of January 1, 2018 to adjust the Company’s estimate of variable consideration relating to customers’ expected rights to return product. This adjustment resulted in an increase to other current liabilities of $1.0 million, an increase to non-current deferred tax assets of $0.2 million and a decrease to retained earnings of $0.8 million. There were no other impacts recorded as a result of adopting the revenue recognition guidance in 2018 or prior years and the Company expects the impact to be immaterial on an ongoing basis.
CY2018 us-gaap Foreign Currency Transactions Description
ForeignCurrencyTransactionsDescription
Foreign exchange (losses) gains, net, during the year ended December 31, 2018 include both a foreign currency transaction loss of approximately $0.4 million related to hyper-inflationary accounting for the Company’s Argentina subsidiary effective July 1, 2018 and a foreign currency transaction gain of approximately $0.4 million related to the liquidation of an inactive legal entity.
CY2018 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
867520000 USD
CY2015Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
381243000 USD
CY2018 us-gaap Dividends Common Stock
DividendsCommonStock
19530000 USD
CY2018 us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders
877000 USD
CY2018 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
-423000 USD
CY2018 us-gaap Stock Issued During Period Value Employee Stock Ownership Plan
StockIssuedDuringPeriodValueEmployeeStockOwnershipPlan
505000 USD
CY2018 us-gaap Stock Granted During Period Value Sharebased Compensation Gross
StockGrantedDuringPeriodValueSharebasedCompensationGross
3724000 USD
CY2018 kwr Us Tax Reform Act
USTaxReformAct
On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as U.S. Tax Reform. U.S. Tax Reform included multiple changes to the U.S. tax code with varying effects on the Company’s 2017 results, including, but not limited to, (i) a revaluation of the Company’s U.S. deferred tax assets and liabilities based upon the reduction of the U.S. federal statutory corporate income tax rate from 35% to 21% and (ii) implementation of a new system of taxation for non-U.S. earnings which eliminates U.S. federal income taxes on dividends from certain foreign subsidiaries and imposes a one-time transition tax on the deemed repatriation of undistributed earnings of certain foreign subsidiaries that is payable over eight years. U.S. Tax Reform also made changes to the U.S. tax code that have impacted 2018 and will impact future years, including, but not limited to, (i) reduction of the U.S. federal statutory corporate tax rate; (ii) elimination of the corporate alternative minimum tax; (iii) the creation of the base erosion anti-abuse tax, a new minimum tax; (iv) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (v) a new provision designed to tax global intangible low-taxed income (“GILTI”), which allows for the possibility of using foreign tax credits and a deduction of up to 50 percent to offset the income tax liability (subject to some limitations); (vi) a new limitation on deductible interest expense; (vii) the repeal of the U.S. production activity deduction; (viii) limitations on the deductibility of certain executive compensation; (ix) limitations on the use of foreign tax credits to reduce the U.S. income tax liability; (x) a reduction in the dividends received deduction from 70% to 50% (in the case of less-than-20%-owned subsidiaries) and from 80% to 65% (in the case of less-than-80%-owned subsidiaries); and (xi) limitations on net operating losses generated after December 31, 2017 to 80 percent of taxable income. Also, in 2017, the Securities and Exchange Commission issued guidance on accounting for the tax effects of U.S. Tax Reform and provided a one-year measurement period for companies to complete the accounting. The Company’s initial analysis of the impact of U.S. Tax Reform resulted in an incremental tax expense of $22.2 million recorded during the fourth quarter of 2017. U.S. Tax Reform reduced the U.S. federal statutory corporate tax rate from 35% to 21% effective January 1, 2018. Consequently, the Company recorded a decrease in U.S. net deferred tax assets of approximately $4.5 million with a corresponding net adjustment to deferred income tax expense during the fourth quarter of 2017. This initial estimate was not adjusted during 2018. The Transition Tax is a tax on previously untaxed accumulated and current earnings and profits of certain of the Company’s foreign subsidiaries as of either the November 2, 2017 or December 31, 2017 measurement date provided within U.S. Tax Reform. The Company made a reasonable estimate of its Transition Tax and recorded a gross provisional Transition Tax obligation during the fourth quarter of 2017 of $18.4 million, or $17.8 million, net of the impact of eliminating U.S. Federal income taxes on dividends from certain foreign subsidiaries received during 2017. Subsequent to numerous temporary regulations, notices, and other formal guidance published by the Internal Revenue Service (“IRS”), U.S. Treasury, and various state taxing authorities in 2018, the Company completed its accounting for the tax effects of U.S. Tax Reform as of December 22, 2018 and refined the total incremental tax expense related to U.S. Tax Reform to approximately $28.0 million. Based on proposed regulations published by the U.S. federal and state taxing authorities, the Company recorded a $2.5 million tax benefit to adjust its net Transition Tax to $15.3 million. The Company elected to pay its Transition Tax in installments over eight years as provided for in U.S. Tax Reform. In addition, the Company recorded deferred income tax expense of $0.3 million in 2018 related to the deductibility of certain executive compensation based on formal guidance issued by the IRS in 2018. As a result of the impacts from U.S. Tax Reform, the Company re-evaluated its global cash strategy resulting in a change to its indefinite reinvestment assertion attributable to a portion of its undistributed foreign earnings and recognized a deferred tax liability and corresponding deferred tax expense of $7.9 million, which primarily represents the Company’s estimate of the non-U.S. income taxes the Company will incur to ultimately remit those earnings to the U.S.
CY2018 us-gaap Property Plant And Equipment Additional Disclosures
PropertyPlantAndEquipmentAdditionalDisclosures
In addition, gain (loss) on fixed asset disposals, net, during the year ended December 31, 2018 and 2017 includes a $0.6 million gain and a $0.1 million loss, respectively, on the sale of held-for-sale assets in each period.
CY2017 us-gaap Defined Benefit Plan Explanation Of Significant Change In Benefit Obligation Or Plan Assets Not Apparent From Other Required Disclosures
DefinedBenefitPlanExplanationOfSignificantChangeInBenefitObligationOrPlanAssetsNotApparentFromOtherRequiredDisclosures
Pension and postretirement benefit costs, non-service components during the year ended December 31, 2017 includes a $1.9 million pension settlement charge.
CY2018Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
18134000 USD
CY2017Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
21128000 USD
CY2017Q4 us-gaap Dividends Payable Current
DividendsPayableCurrent
4724000 USD
CY2018Q4 us-gaap Dividends Payable Current
DividendsPayableCurrent
4935000 USD
CY2017Q4 us-gaap Pension And Other Postretirement Defined Benefit Plans Current Liabilities
PensionAndOtherPostretirementDefinedBenefitPlansCurrentLiabilities
1108000 USD
CY2018Q4 us-gaap Pension And Other Postretirement Defined Benefit Plans Current Liabilities
PensionAndOtherPostretirementDefinedBenefitPlansCurrentLiabilities
1211000 USD
CY2018Q4 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent
32360000 USD
CY2017Q4 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent
35548000 USD
CY2016 us-gaap Pension And Other Postretirement Benefit Contributions
PensionAndOtherPostretirementBenefitContributions
3420000 USD
CY2017 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
820082000 USD
CY2016 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
746665000 USD
CY2018 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
862000 USD
CY2017 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
861000 USD
CY2016 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
978000 USD
CY2017Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
194909000 USD
CY2017Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
201183000 USD
CY2017Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
212918000 USD
CY2017Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
211072000 USD
CY2018Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
212055000 USD
CY2018Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
221962000 USD
CY2018Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
222022000 USD
CY2018Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
211481000 USD
CY2018 dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
CY2018 dei Entity Central Index Key
EntityCentralIndexKey
0000081362
CY2018 dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
CY2018 dei Document Type
DocumentType
10-K
CY2018 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
FY
CY2018Q4 us-gaap Deferred Revenue
DeferredRevenue
1300000 USD
CY2017Q4 us-gaap Deferred Revenue
DeferredRevenue
1500000 USD
CY2018 kwr Netreportingamount
Netreportingamount
47100000 USD
CY2017 kwr Netreportingamount
Netreportingamount
44500000 USD
CY2016 kwr Netreportingamount
Netreportingamount
43500000 USD
CY2018 dei Entity Voluntary Filers
EntityVoluntaryFilers
No
CY2018 dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
Yes
CY2018 dei Entity Emerging Growth Company
EntityEmergingGrowthCompany
false
CY2018 dei Entity Small Business
EntitySmallBusiness
false
CY2018 dei Entity Shell Company
EntityShellCompany
false
CY2017 us-gaap Defined Benefit Plan Benefit Obligation Increase Decrease For Remeasurement Due To Settlement
DefinedBenefitPlanBenefitObligationIncreaseDecreaseForRemeasurementDueToSettlement
1900000 USD
CY2017 kwr Globalintangiblelowtaxedincome
Globalintangiblelowtaxedincome
0 USD
CY2017 kwr Foreignderivedintangibleincome
Foreignderivedintangibleincome
0 USD
CY2016 kwr Globalintangiblelowtaxedincome
Globalintangiblelowtaxedincome
0 USD
CY2016 kwr Foreignderivedintangibleincome
Foreignderivedintangibleincome
0 USD
CY2016 kwr Unrecognized Tax Benefits Income Tax Penalties Income
UnrecognizedTaxBenefitsIncomeTaxPenaltiesIncome
200000 USD
CY2018Q4 us-gaap Defined Benefit Plan Fair Value Of Plan Assets
DefinedBenefitPlanFairValueOfPlanAssets
144241000 USD
CY2018 us-gaap Defined Benefit Plan Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate
DefinedBenefitPlanYearHealthCareCostTrendRateReachesUltimateTrendRate
2037
CY2017 us-gaap Defined Benefit Plan Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate
DefinedBenefitPlanYearHealthCareCostTrendRateReachesUltimateTrendRate
2037
CY2018 us-gaap Income Tax Reconciliation Deductions Dividends
IncomeTaxReconciliationDeductionsDividends
0 USD
CY2017 us-gaap Income Tax Reconciliation Deductions Dividends
IncomeTaxReconciliationDeductionsDividends
0 USD
CY2016 us-gaap Income Tax Reconciliation Deductions Dividends
IncomeTaxReconciliationDeductionsDividends
-2939000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Foreign Currency Translation
UnrecognizedTaxBenefitsDecreasesResultingFromForeignCurrencyTranslation
259000 USD
CY2018 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0pt;color:#000000;' >Note </font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' >3</font><font style='font-family:Times New Roman;font-size:10pt;font-weight:bold;color:#000000;' > &#8211; Recently Issued Accounting Standards</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in October 2018 to provide guidance on the risks associated with financial assets and liabilities that are permitted to be hedged. </font><font style='font-family:Times New Roman;font-size:10pt;' >The amendments in this update </font><font style='font-family:Times New Roman;font-size:10pt;' >permit use of the Overnight Index Swap (&#8220;OIS&#8221;) rate based on </font><font style='font-family:Times New Roman;font-size:10pt;' >the </font><font style='font-family:Times New Roman;font-size:10pt;' >Secured Overnight Financing Rate </font><font style='font-family:Times New Roman;font-size:10pt;' >(SOFR) </font><font style='font-family:Times New Roman;font-size:10pt;' >as a U.S. benchmark interest rate in addition to the</font><font style='font-family:Times New Roman;font-size:10pt;' > other four rates: interest rates on direct Treasury obligations of t</font><font style='font-family:Times New Roman;font-size:10pt;' >he</font><font style='font-family:Times New Roman;font-size:10pt;' > U.S. government (UST), the London Interbank Offered Rate </font><font style='font-family:Times New Roman;font-size:10pt;' >(LIBOR)</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >swap rate, the OIS rate based on the Fed Funds Effective Rate and the Securities Industry and Financial Markets Association </font><font style='font-family:Times New Roman;font-size:10pt;' >(SIFMA)</font><font style='font-family:Times New Roman;font-size:10pt;' > </font><font style='font-family:Times New Roman;font-size:10pt;' >Municipal Swap Rate. The amendments in this update also </font><font style='font-family:Times New Roman;font-size:10pt;' >appl</font><font style='font-family:Times New Roman;font-size:10pt;' >y</font><font style='font-family:Times New Roman;font-size:10pt;' > to all entities that elect to apply hedge accounting to benchmark interest rate hedges. The guidance within this accounting standard update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal year</font><font style='font-family:Times New Roman;font-size:10pt;' >s. The amendments in this update should be adopted on a prospective basis for qualifying new or re</font><font style='font-family:Times New Roman;font-size:10pt;' >-</font><font style='font-family:Times New Roman;font-size:10pt;' >designated hedging relationships entered into on or after the date of adoption. Early adoption is permitted. The Company has elected to early adopt the gu</font><font style='font-family:Times New Roman;font-size:10pt;' >idance in this accounting standard update during the fourth quarter of 2018, with no impact to its financial statements. The Company does not currently use any derivative instruments designated as hedges but may choose to in the future.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an</font><font style='font-family:Times New Roman;font-size:10pt;' > accounting standard update in August 2018 that modifies certain disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments in this accounting standard update remove disclosures that are no lon</font><font style='font-family:Times New Roman;font-size:10pt;' >ger considered cost beneficial, clarify the specific requirements of certain disclosures, and add new disclosure requirements as relevant. The guidance within this accounting standard update is effective for annual periods beginning after December 15, 202</font><font style='font-family:Times New Roman;font-size:10pt;' >0, and should be applied retrospectively to all periods presented. Early adoption is permitted. The Company has not early adopted the guidance and is currently evaluating its implementation.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in August 2018 th</font><font style='font-family:Times New Roman;font-size:10pt;' >at clarifies the accounting for implementation costs incurred in a cloud computing arrangement under a service contract. This guidance generally aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement under a servic</font><font style='font-family:Times New Roman;font-size:10pt;' >e contract with the requirements for capitalizing implementation costs related to internal-use software. The guidance within this accounting standard update is effective for annual periods beginning after December 15, 2019 and should be applied either ret</font><font style='font-family:Times New Roman;font-size:10pt;' >rospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. The Company has not early adopted the guidance and is currently evaluating its implementation.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting stand</font><font style='font-family:Times New Roman;font-size:10pt;' >ard update in August 2018 that modifies certain disclosure requirements for fair value measurements. The guidance removes certain disclosure requirements regarding transfers between levels of the fair value hierarchy as well as the valuation processes for </font><font style='font-family:Times New Roman;font-size:10pt;' >certain fair value measurements. Further, the guidance added certain disclosure requirements including unrealized gains and losses and significant unobservable inputs used to develop certain fair value measurements. The guidance within this accounting st</font><font style='font-family:Times New Roman;font-size:10pt;' >andard update is effective for annual and interim periods beginning after December 15, 2019, and should be applied prospectively in the initial year of adoption or prospectively to all periods presented, depending on the amended disclosure requirement. Ea</font><font style='font-family:Times New Roman;font-size:10pt;' >rly adoption is permitted. The Company has not early adopted the guidance and is currently evaluating its implementation.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in June 2018 to simplify the accounting for share-based payment transactions with non-e</font><font style='font-family:Times New Roman;font-size:10pt;' >mployees of the Company. The guidance within this accounting standard update generally requires that share-based payment transactions for acquiring goods or services from non-employees of the Company be accounted for under the same guidance and model as a</font><font style='font-family:Times New Roman;font-size:10pt;' >ll other share-based payment transactions, including employees of the Company. The guidance within this accounting standard update is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company el</font><font style='font-family:Times New Roman;font-size:10pt;' >ected to early adopt the guidance within this accounting standard updated in the second quarter of 2018 with no impact to its financial statements. </font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in February 2018 that allows a reclassification from AOCI to</font><font style='font-family:Times New Roman;font-size:10pt;' > retained earnings for stranded tax effects resulting from U.S. Tax Reform enacted in December 2017. The guidance within this accounting standard update is effective for annual and interim periods beginning after December 15, 2018, and should be applied e</font><font style='font-family:Times New Roman;font-size:10pt;' >ither in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in U.S. Tax Reform is recognized. Early adoption is permitted. The Company has not early adopted the guidanc</font><font style='font-family:Times New Roman;font-size:10pt;' >e and is currently evaluating its implementation.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in January 2017 to clarify the definition of a business with the objective of adding guidance to assist companies with evaluating whether transactions should be</font><font style='font-family:Times New Roman;font-size:10pt;' > accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this accounting standard update provided a more robust framework to use in determining when a set of assets and activities is a business. The guidance within this ac</font><font style='font-family:Times New Roman;font-size:10pt;' >counting standard update was effective for annual and interim periods beginning after December 15, 2017. Early adoption was permitted in limited circumstances, and the amendments in this accounting standard update were required to be applied prospectively</font><font style='font-family:Times New Roman;font-size:10pt;' >, with no disclosures required at transition. The Company adopted the guidance in the first quarter of 2018, as required, with no impact to its financial statements.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in November 2016 requiring that the stateme</font><font style='font-family:Times New Roman;font-size:10pt;' >nt of cash flows explain both the change in the total cash and cash equivalents, and also the amounts generally described as restricted cash or restricted cash equivalents. This required amounts generally described as restricted cash or restricted cash eq</font><font style='font-family:Times New Roman;font-size:10pt;' >uivalents be included with cash and cash equivalents when reconciling the beginning and ending amounts shown on the statement of cash flows. The guidance within this </font><font style='font-family:Times New Roman;font-size:10pt;' >accounting standard update was effective for annual and interim periods beginning after D</font><font style='font-family:Times New Roman;font-size:10pt;' >ecember 15, 2017. Early adoption was permitted, and the guidance required application using a retrospective transition method to each period presented when adopted. The Company adopted the guidance in the first quarter of 2018, as required. Adoption of </font><font style='font-family:Times New Roman;font-size:10pt;' >the guidance did not have an impact on the Company&#8217;s earnings or balance sheet but did result in changes to certain disclosures within the statement of cash flows, including cash flows from investing activities and total cash, cash equivalents and restrict</font><font style='font-family:Times New Roman;font-size:10pt;' >ed cash. See Note 11 of Notes to Consolidated Financial Statements.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in October 2016 to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The prov</font><font style='font-family:Times New Roman;font-size:10pt;' >isions in this update allowed an entity to recognize current and deferred income taxes of an intra-entity transfer of an asset other than inventory when the transfer occurs rather than when the asset has been sold to an outside party. The guidance within </font><font style='font-family:Times New Roman;font-size:10pt;' >this accounting standard update was effective for annual and interim periods beginning after December 15, 2017. Early adoption was permitted, and the guidance required application on a modified retrospective basis through a cumulative-effect adjustment di</font><font style='font-family:Times New Roman;font-size:10pt;' >rectly to retained earnings as of the beginning of the period of adoption. The Company adopted the guidance in the first quarter of 2018, as required, with no impact to its financial statements.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in August 2016</font><font style='font-family:Times New Roman;font-size:10pt;' > to standardize how certain transactions are classified in the statement of cash flows. Specific transactions covered by the accounting standard update include debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, conti</font><font style='font-family:Times New Roman;font-size:10pt;' >ngent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate and bank owned life insurance policies, distributions received from equity method investments and be</font><font style='font-family:Times New Roman;font-size:10pt;' >neficial interest in securitization transactions. The guidance within this accounting standard update was effective for annual and interim periods beginning after December 15, 2017. Early adoption was permitted, provided that all of the amendments were a</font><font style='font-family:Times New Roman;font-size:10pt;' >dopted in the same period. The guidance required application using a retrospective transition method. The Company adopted the guidance in the first quarter of 2018 as required, with no impact to its financial statements.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting sta</font><font style='font-family:Times New Roman;font-size:10pt;' >ndard update in February 2016 regarding the accounting and disclosure for leases.&#160; During 2018, the FASB issued a series of accounting standard updates to clarify and expand on the original 2016 implementation guidance, including providing an accounting po</font><font style='font-family:Times New Roman;font-size:10pt;' >licy election for lessors, certain targeted improvements around comparative reporting requirements and accounting for lease and non-lease components by lessors as well as other technical corrections and improvements.&#160; The amendments in these 2018 updates d</font><font style='font-family:Times New Roman;font-size:10pt;' >id not change the core principles of the guidance previously issued in February 2016.&#160; The guidance within all of the leasing accounting standard updates are effective for annual and interim periods beginning after December 15, 2018, and should be applied </font><font style='font-family:Times New Roman;font-size:10pt;' >on a modified retrospective basis, applying the transition requirements either (a) at the beginning of the earliest period presented in the financial statements in the year of adoption (January 1, 2017) or (b) in the period of adoption (January 1, 2019).&#160; </font><font style='font-family:Times New Roman;font-size:10pt;' >Early adoption is permitted, but the Company has not early adopted. The Company will adopt the guidance in the first quarter of 2019, as required, using a modified retrospective transition approach.&#160; The Company will apply the transition requirements in t</font><font style='font-family:Times New Roman;font-size:10pt;' >he period of adoption (as of January 1, 2019), as permitted.&#160; As such the Company will neither restate comparative periods for the effects of this lease accounting guidance or provide the disclosures requirements for comparative periods.</font><font style='font-family:Times New Roman;font-size:10pt;' > The Company anti</font><font style='font-family:Times New Roman;font-size:10pt;' >cipates electing to apply certain of the permitted practical expedients within the new lease accounting guidance, and the Company also anticipates making certain accounting policy elections as a result of adopting the new lease accounting guidance.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >As of D</font><font style='font-family:Times New Roman;font-size:10pt;' >ecember 31, 2018, the Company has substantially completed its implementation planning and its impact assessment related to the new lease accounting guidance.&#160; Work performed to date includes developing a detailed project plan, identifying and establishing </font><font style='font-family:Times New Roman;font-size:10pt;' >a cross-functional implementation team and developing pre-adoption internal controls.&#160; In addition, the Company gathered an inventory of the Company&#8217;s explicit outstanding leases globally, performed certain review procedures to ensure completeness of its l</font><font style='font-family:Times New Roman;font-size:10pt;' >ease population and abstracted critical lease information from the lease population for inclusion within the Company&#8217;s leasing software. Also, the Company has begun preliminary considerations for how the new lease accounting guidance may impact Houghton, </font><font style='font-family:Times New Roman;font-size:10pt;' >as it pertains to the potential Combination.&#160; The Company has calculated a preliminary transition adjustment which will be finalized and reflected in the Company&#8217;s financial statements starting after the effective date of January 1, 2019. &#160;While the Compan</font><font style='font-family:Times New Roman;font-size:10pt;' >y&#8217;s implementation of this lease accounting guidance is still on-going, the Company anticipates adoption of this guidance will have a material impact on its balance sheet as it expects the majority of its leases will be recorded on its balance sheet by est</font><font style='font-family:Times New Roman;font-size:10pt;' >ablishing right of use assets and associated lease liabilities.&#160; Based on all current available information, t</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >he Company estimates that its right of use assets and associated lease liabilities will be approximately $</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >20</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > million to $</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >30</font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' > million as of January </font><font style='font-family:Times New Roman;font-size:10pt;color:#000000;' >1, 2019.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The FASB issued an accounting standard update in May 2014 regarding the accounting for and disclosure of revenue recognition. Specifically, the update outlined a single comprehensive model for entities to use in accounting for revenue </font><font style='font-family:Times New Roman;font-size:10pt;' >arising from contracts with customers, which will be common to both U.S. GAAP and International Financial Reporting Standards. The guidance was effective for annual and interim periods beginning after December 15, 2016, and allowed for full retrospective </font><font style='font-family:Times New Roman;font-size:10pt;' >adoption of prior period data or a modified retrospective adoption. Early adoption was not permitted. In August 2015, the FASB issued an accounting standard update to delay the effective date of the new revenue standard by one year, or, in other words, t</font><font style='font-family:Times New Roman;font-size:10pt;' >o be effective for annual and interim periods beginning after December 15, 2017. Entities were permitted to adopt the new revenue standard early but not before the original effective date. During 2016 and 2017, the FASB issued a series of accounting stan</font><font style='font-family:Times New Roman;font-size:10pt;' >dard updates to clarify and expand on the implementation guidance, including principal versus agent considerations, identification of performance obligations, licensing, other technical corrections and adding certain practical expedients. The amendments i</font><font style='font-family:Times New Roman;font-size:10pt;' >n these 2016 and 2017 updates did not change the core principles of the guidance previously issued in May 2014.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >As part of the Company&#8217;s impact assessment for the implementation of the new revenue recognition guidance, the Company reviewed its historical a</font><font style='font-family:Times New Roman;font-size:10pt;' >ccounting policies and practices to identify potential differences with the requirements of the new revenue recognition standard as it related to the Company&#8217;s contracts and sales arrangements. In addition, the impact assessment and work performed include</font><font style='font-family:Times New Roman;font-size:10pt;' >d global and cross functional interviews and questionnaires, sales agreement and other sales document reviews, as well as technical considerations for the Company&#8217;s future transactional accounting, financial reporting and disclosure requirements. The Comp</font><font style='font-family:Times New Roman;font-size:10pt;' >any has also progressed its assessment of how the new revenue recognition guidance may impact Houghton, as it pertains to the pending Combination.</font></p><p style='text-align:left;margin-top:6pt;margin-bottom:6pt;line-height:12pt;' ><font style='font-family:Times New Roman;font-size:10pt;margin-left:18pt;' >The Company adopted the guidance in the first quarter of 2018 as required, electing to use a modified retrosp</font><font style='font-family:Times New Roman;font-size:10pt;' >ective adoption approach applied to those contracts which were not completed as of January 1, 2018. Comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. In addition, the Co</font><font style='font-family:Times New Roman;font-size:10pt;' >mpany elected to apply certain of the permitted practical expedients within the revenue recognition guidance and make certain accounting policy elections including those related to significant financing components, sales taxes and shipping and handling act</font><font style='font-family:Times New Roman;font-size:10pt;' >ivities. </font><font style='font-family:Times New Roman;font-size:10pt;' >Adoption of the revenue recognition guidance did not have a material impact on the Company&#8217;s reported earnings or cash flows, however, adoption did increase the amount and level of disclosures concerning the Company&#8217;s net sales and did result in </font><font style='font-family:Times New Roman;font-size:10pt;' >one adjustment to the Company&#8217;s balance sheet. As a result of the Company&#8217;s impact assessment and adoption using the modified retrospective adoption approach, the Company recorded a cumulative effect of an accounting change as of January 1, 2018 to adjust</font><font style='font-family:Times New Roman;font-size:10pt;' > the Company&#8217;s estimate of variable consideration relating to customers&#8217; expected rights to return product. This adjustment resulted in an increase to other current liabilities of $1.0 million, an increase to non-current deferred tax assets of $0.2 millio</font><font style='font-family:Times New Roman;font-size:10pt;' >n and a decrease to retained earnings of $0.8 million. There were no other impacts recorded as a result of adopting the revenue recognition guidance in 2018 or prior years and the Company expects the impact to be immaterial on an ongoing basis.</font><font style='font-family:Times New Roman;font-size:10pt;' > See Note </font><font style='font-family:Times New Roman;font-size:10pt;' >4 and 18 of Notes to Consolidated Financial Statements.</font></p></div>
CY2017 us-gaap Unrecognized Tax Benefits Increases Resulting From Foreign Currency Translation
UnrecognizedTaxBenefitsIncreasesResultingFromForeignCurrencyTranslation
598000 USD
CY2018Q4 us-gaap Interest Payable Current
InterestPayableCurrent
4340000 USD
CY2017Q4 us-gaap Interest Payable Current
InterestPayableCurrent
884000 USD
CY2018Q4 us-gaap Deferred Tax Liabilities Undistributed Foreign Earnings
DeferredTaxLiabilitiesUndistributedForeignEarnings
7857000 USD
CY2017Q4 us-gaap Deferred Tax Liabilities Undistributed Foreign Earnings
DeferredTaxLiabilitiesUndistributedForeignEarnings
0 USD
CY2016 us-gaap Income Tax Reconciliation Repatriation Of Foreign Earnings
IncomeTaxReconciliationRepatriationOfForeignEarnings
0 USD
CY2017 us-gaap Income Tax Reconciliation Repatriation Of Foreign Earnings
IncomeTaxReconciliationRepatriationOfForeignEarnings
0 USD
CY2018 us-gaap Income Tax Reconciliation Repatriation Of Foreign Earnings
IncomeTaxReconciliationRepatriationOfForeignEarnings
7857000 USD
CY2018 kwr Globalintangiblelowtaxedincome
Globalintangiblelowtaxedincome
1211000 USD
CY2018 kwr Foreignderivedintangibleincome
Foreignderivedintangibleincome
-1034000 USD
CY2018 us-gaap Restructuring Charges
RestructuringCharges
0 USD
CY2016 us-gaap Adjustments To Additional Paid In Capital Tax Effect From Share Based Compensation
AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation
678000 USD
CY2018Q4 kwr Deferredtaxliabilityassetnet
Deferredtaxliabilityassetnet
-3057000 USD
CY2017Q4 kwr Deferredtaxliabilityassetnet
Deferredtaxliabilityassetnet
5807000 USD
CY2018Q4 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
1358000 USD
CY2017Q4 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
841000 USD
CY2017Q4 kwr Accruedfreightcostscurrent
Accruedfreightcostscurrent
1780000 USD
CY2018Q4 kwr Accruedfreightcostscurrent
Accruedfreightcostscurrent
2188000 USD
CY2018Q1 us-gaap Cumulative Effect Of New Accounting Principle In Period Of Adoption
CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption
-754000 USD
CY2018Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest Adjusted Balance1
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1
408864000 USD

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