SEC Filing - Quaker Houghton

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kwr-20201231

 
 
 
 
 
 
 
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549
 
 
FORM 
10-K
 
☒
ANNUAL REPORT PURSUANT TO 
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE 
ACT OF 1934 
 
For the fiscal year ended 
December 31, 2020
 
or 
 
☐
TRANSITION REPORT PURSUANT TO 
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE 
ACT OF 1934 
For the transition period from 
to 
Commission file number 
001-12019
 
 
 
QUAKER CHEMICAL CORPORATION
 
(Exact name of Registrant as specified in its charter) 
 
 
 
 
A 
Pennsylvania
 
Corporation 
 
No. 
23-0993790
(State or other jurisdiction of incorporation or organization) 
 
(I.R.S. Employer Identification No.) 
 
 
 
 
901 E. Hector Street
, 
Conshohocken
, 
Pennsylvania
 
19428-2380
(Address of principal executive offices) 
 
(Zip Code) 
 
Registrant’s telephone number, including area code: (
610
) 
832-4000
 
 
Securities registered pursuant to Section 12(b) of the Act: 
 
Title of each class 
Trading Symbol(s) 
Name of each exchange on which registered 
Common Stock, $1 par value
KWR
New York Stock Exchange
 
Securities registered pursuant to Section 12(g) of the Act: 
None
 
 
 
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 
405 of the Securities Act. 
Yes
 
☒
 
No 
☐
 
Indicate by check mark if the Registrant is not required to file reports 
pursuant to Section 13 or Section 15(d) of the Act. 
Yes 
☐
 
No
 
☒
 
Indicate by check mark whether the Registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange 
Act of 1934 during the 
preceding 12 months (or for such shorter period that the registrant was required 
to file such reports), and (2) has been subject to such filing requirements 
for the past 90 
days. 
Yes
 
☒
 
No 
☐
 
Indicate by check mark whether the Registrant has submitted electronically 
every Interactive Data File required to be submitted pursuant to Rule 405 
of Regulation S-
T (
§
 
232.405 of this chapter) during the preceding 12 months (or for 
such shorter period that the Registrant was required to submit such 
files). 
Yes
 
☒
 
No 
☐
 
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging 
growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 
of the 
Exchange Act. 
 
 
 
Large accelerated filer
 
☒
 
Accelerated filer 
☐
 
 
Non-accelerated filer 
☐
Smaller reporting company 
☐
Emerging growth company 
☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period 
for complying with any new or revised 
financial accounting standards provided pursuant to Section 13 (a) of the 
Exchange Act. 
☐
 
Indicate by check mark whether the registrant has filed a report on and 
attestation to its management’s assessment of the effectiveness of its internal control over 
financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 
U.S.C. 7262(b)) by the registered public accounting firm that prepared or 
issued its audit 
report. 
Yes 
☒
 
No 
☐
 
Indicate by check mark whether the Registrant is a shell company (as defined 
in Rule 12b-2 of the Act). 
Yes 
☐
 
No 
☒
 
State the aggregate market value of the voting and non-voting common equity 
held by non-affiliates computed by reference to the price at which the common 
equity 
was last sold as of the last business day of the Registrant’s most recently completed second fiscal quarter. (The aggregate market value is 
computed by reference to the last 
reported sale on the New York Stock Exchange on June 30, 2020): $
3,273,904,147
 
Indicate the number of shares outstanding of each of the Registrant’s classes of common stock, as of the 
latest practicable date: 
17,853,700
 
shares of Common Stock, 
$1.00 Par Value, as of January 31, 2021. 
DOCUMENTS INCORPORATED BY REFERENCE 
Portions of the Registrant’s definitive Proxy Statement relating to the 2021 Annual Meeting of Shareholders 
are incorporated by reference into Part III.

 
 
 
 
1 
QUAKER CHEMICAL CORPORATION 
Table of 
Contents 
 
Page 
 
Part I 
Item 1. 
Business. 
2 
Item 1A. 
Risk Factors. 
7 
Item 1B. 
Unresolved Staff Comments. 
19 
Item 2. 
Properties. 
19 
Item 3. 
Legal Proceedings. 
19 
Item 4. 
Mine Safety Disclosures. 
19 
Item 4(a). 
Information about our Executive Officers. 
20 
Part II 
Item 5. 
 
Market for Registrant's Common Equity, 
Related Stockholder Matters and Issuer Purchases of Equity Securities. 
22 
Item 6. 
Selected Financial Data. 
23 
Item 7. 
 
Management’s Discussion and 
Analysis of Financial Condition and Results of Operations. 
24 
Item 7A. 
 
Quantitative and Qualitative Disclosures About Market Risk. 
41 
Item 8. 
Financial Statements and Supplementary Data. 
43 
Item 9. 
Changes in and Disagreements With Accountants 
on Accounting and Financial Disclosure. 
100 
Item 9A. 
 
Controls and Procedures. 
100 
Item 9B. 
Other Information. 
102 
Part III 
Item 10. 
Directors, Executive Officers and Corporate 
Governance. 
103 
Item 11. 
Executive Compensation. 
103 
Item 12. 
Security Ownership of Certain Beneficial Owners and Management 
and Related Stockholder Matters. 
103 
Item 13. 
Certain Relationships and Related Transactions, 
and Director Independence. 
103 
Item 14. 
Principal Accountant Fees and Services. 
103 
Part IV 
Item 15. 
Exhibits and Financial Statement Schedules. 
104 
Item 16. 
Form 10-K Summary. 
107 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
PART 
I 
As used in this Annual Report on Form 10-K (the “Report”), 
the terms “Quaker Houghton”, the “Company”, “we”, 
and “our” 
refer to Quaker Chemical Corporation (doing business as Quaker 
Houghton), its subsidiaries, and associated companies, unless the 
context otherwise requires. 
The term Legacy Quaker refers to the Company prior to 
the closing of its combination with Houghton 
International, Inc. (“Houghton”) (herein referred 
to as the “Combination”) on August 1, 2019. 
Throughout the Report, all figures 
presented, unless otherwise stated, reflect the results of 
operations of the combined company for the year ended 
December 31, 2020; 
and for the year ended December 31, 2019, the results of 
Legacy Quaker plus five months of Houghton’s 
operations post-closing of 
the Combination on August 1, 2019; and for the year 
ended December 31, 2018, the results of only Legacy Quaker. 
Item 1. 
Business.
 
General Description 
The Company was organized in 1918, incorporated 
as a Pennsylvania business corporation in 1930, 
and in August 2019 
completed 
the Combination with Houghton to form Quaker Houghton. 
Quaker Houghton is a global leader in industrial process 
fluids. 
With a presence around the world, 
including operations in over 25 countries, the Company’s 
customers include thousands of 
the world’s most advanced 
and specialized steel, aluminum, automotive, aerospace, 
offshore, can, mining, and metalworking 
companies. Quaker Houghton develops, produces, and 
markets a broad range of formulated chemical specialty 
products and offers 
chemical management services (which we refer to as “Fluidcare
TM
”) for various heavy industrial and manufacturing applications 
throughout its four segments: Americas; Europe, Middle 
East and Africa (“EMEA”); Asia/Pacific; and Global Specialty 
Businesses. 
The major product lines of Quaker Houghton include 
metal removal fluids, cleaning fluids, corrosion inhibitors, metal 
drawing 
and forming fluids, die cast mold releases, heat treatment 
and quenchants, metal forging fluids, hydraulic fluids, 
specialty greases, 
offshore sub-sea energy control fluids, 
rolling lubricants, rod and wire drawing fluids and surface treatme 
nt chemicals. 
The following 
are the respective contributions to consolidated net sales of 
each of our principal product lines representing more than 10% of 
consolidated net sales for 
any of the past three years based on the Company’s 
current product line segmentation: 
2020 
2019 
2018 
Metal removal fluids 
23.9 
% 
19.9 
% 
15.4 
% 
Rolling lubricants 
21.8 
% 
21.9 
% 
25.5 
% 
Hydraulic fluids 
13.3 
% 
13.0 
% 
13.0 
% 
Houghton Combination 
On August 1, 2019, the Company completed the Combination 
and acquired all of the issued and outstanding shares of 
Houghton 
from Gulf Houghton Lubricants, Ltd. (“Gulf”) and certain other 
selling shareholders in exchange for a combination of cash and 
shares 
of the Company’s common 
stock in accordance with the share purchase agreement dated 
April 4, 2017 (the “Share Purchase 
Agreement”). 
The shares were bought for an aggregate purchase consideration 
consisting of: (i) $170.8 million in cash; (ii) the 
issuance of approximately 4.3 million shares of the 
Company’s common stock, $1.00 
par value per share, comprising 24.5% of the 
common stock outstanding upon the closing of the Combination; 
and (iii) the Company’s refinancing 
of Houghton’s net indebtedness 
as of the closing of the Combination of approximately 
$702.6 million. 
Houghton is a leading global provider of specialty chemicals and 
technical services for metalworking and other industrial 
applications, and, the combination with Legacy Quaker 
created a leading global supplier of industrial process fluids. 
The 
Combination expanded the Company’s 
addressable metalworking, metals and industrial end markets, including 
steel, aluminum, 
aerospace, defense, transportation-original equipment 
manufacturer (“OEM”), transportation-components, offshore 
sub-sea energy, 
architectural aluminum, construction, tube and pipe, 
can and container, mining, specialty coatings 
and specialty greases. 
The 
Combination also strengthened the product portfolio of the 
combined Company. 
Notable Recent Acquisition Activity 
In December 2020, the Company completed its acquisition 
of Coral Chemical Company (“Coral”), a privately held, 
U.S.-based 
provider of metal finishing fluid solutions, for approximately 
$53 million, net of cash acquired. 
Coral provides technical expertise and 
product solutions for pre-treatment, metalworking and wastewater 
treatment applications to the beverage can and general industrial 
end markets. 
In February 2021, the Company acquired certain assets related to 
tin-plating solutions primarily for steel end markets for 
approximately $25 million. 
Impact of COVID-19 
During 2020, the global outbreak of COVID-19 and 
subsequent pandemic negatively impacted all locations where 
the Company 
does business. 
Although the Company has now operated during several 
quarters in this COVID-19 environment, the full extent of 
the 
pandemic and related business impacts remains 
uncertain and volatile, and therefore the full extent to which 
COVID-19 may impact 
the Company’s future 
results of operations or financial condition is uncertain. 
The pandemic has disrupted the operations of the 
Company and its suppliers and customers and, as a result, 
the Company experienced volume declines and lower net sales during 
2020 
as further described in Item 7 of this Report. 
The initial impact was at its China subsidiaries in the first quarter 
of 2020 and beginning 

 
3 
in late March continued throughout 2020 in the rest of 
the business as the pandemic led to a global economic slowdown. 
Management 
continues to monitor the impact of the COVID-19 
pandemic on the Company, 
the overall specialty chemical industry and the 
economies and markets in which the Company operates. 
 
Sales Revenue 
A substantial portion of the Company’s 
sales worldwide are made directly through its own employees 
and its Fluidcare programs, 
with the balance sold through distributors and agents. 
The Company’s employees typically 
visit the plants of customers regularly, 
work on site, and through training and experience, 
identify production needs which can be resolved or otherwise addressed 
either by 
utilizing the Company’s 
existing products or by applying new formulations developed 
in its laboratories. 
The Company recognizes revenue in an amount that 
reflects the consideration that the Company expects to receive 
in exchange 
for the goods or services transferred to its customers. 
To do this, the Company 
applies a five-step model that requires the Company 
to: (i) identify the contract with a customer; (ii) identify 
the performance obligations in the contract; (iii) determine the 
transaction 
price; (iv) allocate the transaction price to the performance 
obligations in the contract; and (v) recognize revenue when 
, 
or as, the 
Company satisfies a performance obligation. 
As part of the Company’s 
Fluidcare business, certain third-party product sales to customers are 
managed by the Company. 
Where 
the Company acts as principal, revenues are recognized 
on a gross reporting basis at the selling price negotiated 
with its customers. 
Where the Company acts as an agent, revenue is recognized on 
a net reporting basis at the amount of the administrative fee earned 
by 
the Company for ordering the goods. 
The Company transferred third-party products under arrangements resulting 
in net reporting of 
$42.5 million, 
$48.0 million and $47.1 million for the years ended December 
31, 2020, 
2019 and 2018, 
respectively. 
Competition 
The specialty chemical industry comprises a number 
of companies similar in size to the Company, 
as well as companies larger 
and smaller than Quaker Houghton. 
The Company cannot readily determine its precise position in 
every industry it serves. 
However, 
the Company estimates it holds a leading global position 
in the market for industrial process fluids including significant 
global 
positions in the markets for process fluids in portions of 
the automotive and industrial markets, and a leading position in 
the market for 
process fluids to produce sheet steel and aluminum. 
The offerings of many of the Company’s 
competitors differ from those of Quaker 
Houghton; some offer a broad portfolio of 
fluids, including general lubricants, while others have more 
specialized product ranges. 
All 
competitors provide different levels of technical 
services to individual customers. 
Competition in the industry is based primarily on 
the ability to supply products that meet the needs of the 
customer and provide technical services and laboratory assistance 
to the 
customer, and to a lesser extent, on 
price. 
Major Customers and Markets 
In 2020, 
Quaker Houghton’s five largest 
customers (each composed of multiple subsidiaries or divisions 
with semi-autonomous 
purchasing authority) accounted for approximately 
10% of consolidated net sales, with its largest customer 
accounting for 
approximately 3% of consolidated net sales. 
A significant portion of the Company’s 
revenues are realized from the sale of process 
fluids and services to manufacturers of steel, aluminum, 
automobiles, aircraft, industrial equipment, and durable goods and, 
therefore, 
Quaker 
Houghton is subject to the same business cycles as those experienced 
by these manufacturers and their customers. 
The 
Company’s financial performance 
is generally correlated to the volume of global production 
within the industries it serves, rather than 
directly related to the financial performance of its customers. 
Furthermore, steel and aluminum customers typically have limited 
manufacturing locations compared to metalworking 
customers and generally use higher volumes of products at a single 
location. 
Raw Materials
 
Quaker Houghton uses approximately 3,000 raw materials, 
including animal fats, vegetable oils, mineral oils, oleochemicals, 
ethylene, solvents, surfactant agents, various chemical compounds 
that act as additives to our base formulations, and a wide variety 
of 
other organic and inorganic compounds 
and various derivatives of the foregoing. 
The price of mineral oil and its derivatives can be 
affected by the price of crude oil and industry 
refining capacity. 
Animal fat and vegetable oil prices, as well as the prices of 
other raw 
materials, are impacted by their own unique supply 
and demand factors, and by biodiesel consumption which 
is affected by the price 
of crude oil. 
Accordingly, significant fluctuations 
in the price of crude oil can have a material impact on 
the cost of these raw 
materials. 
In addition, many of the raw materials used by Quaker 
Houghton are commodity chemicals which can experience 
significant price volatility. 
Accordingly, the 
Company’s earnings could be 
affected by market changes in raw material prices. 
Reference is made to the disclosure contained in Item 7A 
of this Report. 
Patents and Trademarks 
Quaker Houghton has a limited number of patents and patent 
applications including patents issued, applied for, 
or acquired in the 
U.S. and in various foreign countries, some of which may 
prove to be material to its business, with the earliest patent expiry 
in 2021. 
The Company principally relies on its proprietary formulae 
and its applications know-how and experience to meet 
customer needs. 
Quaker Houghton products are identified by numerous trademarks 
that are registered throughout its marketing area. 

 
4 
Research and Development—Laboratories 
The Company maintains approximately thirty separate laboratory 
facilities worldwide that are primarily devoted to applied 
research and development. 
In addition, the Company maintains quality control labs at 
each of its manufacturing facilities. 
Quaker 
Houghton research and development is directed primarily 
toward applied technology since the nature of the Company’s 
business 
requires continual modification and improvement of formulations 
to provide specialty chemicals to satisfy customer requirements. 
If 
problems are encountered which cannot be resolved 
by local laboratories, the problem is referred to one of our ten principal 
laboratories, located in Conshohocken, Pennsylvania; Valley 
Forge, Pennsylvania; Aurora, Illinois; Santa Fe Springs, 
California; 
Uithoorn, the Netherlands; Coventry, 
United Kingdom; Dortmund, Germany; Barcelona, Spain; Turin, 
Italy or Qingpu, China. 
Research and development costs are expensed as incurred. 
Research and development expenses during the years ended 
December 31, 2020, 
2019 and 2018 were $40.0 million, 
$32.1 million and $24.5 million, respectively. 
Regulatory Matters 
In order to facilitate compliance with applicable federal, 
state, and local statutes and regulations relating to occupational 
health 
and safety and protection of the environment, the Company 
has an ongoing program of site assessment for the 
purpose of identifying 
capital expenditures or other actions that may be 
necessary to comply with such requirements. 
The program includes periodic 
inspections of each facility by the Company and/or independent 
experts, as well as ongoing inspections and training by on-site 
personnel. 
Such inspections address operational matters, record keeping, reporting 
requirements and capital improvements. 
Capital 
expenditures directed solely or primarily to regulatory 
compliance amounted to approximately $3.7
 
million, $4.4 million and $1.5 
million during the years ended December 31, 2020, 
2019 and 2018, 
respectively. 
Company Segmentation 
The Company’s operating 
segments, which are consistent with its reportable segments, 
reflect the structure of the Company’s 
internal organization, the method by which 
the Company’s resources are allocated 
and the manner by which the Company and the 
chief operating decision maker assess performance. 
The Company’s reportable segments 
are: (i) Americas; (ii) EMEA; (iii) 
Asia/Pacific; and (iv) Global Specialty Businesses. 
See Note 4 of Notes to Consolidated Financial Statements in Item 
8 of this Report, 
incorporated herein by this reference. 
Non-U.S. Activities 
Since significant revenues and earnings are generated by 
non-U.S. operations, the Company’s 
financial results are affected by 
currency fluctuations, particularly between the U.S. 
dollar and the euro, the British pound sterling, the Brazilian 
real, the Mexican 
peso, the Chinese renminbi and the Indian rupee, 
and the impact of those currency fluctuations on the underlying economies. 
Incorporated by reference is (i) the foreign exchange 
risk information contained in Item 7A of this Report, (ii) 
the geographic 
information in Note 4 of Notes to Consolidated Financial 
Statements included in Item 8 of this Report, and (iii) information 
regarding 
risks attendant to foreign operations included in Item 
1A of this Report. 
Number of Employees 
On December 31, 2020, Quaker Houghton had approximately 
4,200 full-time employees globally of whom approximately 900 
were employed by the parent company and its U.S. subsidiaries, 
and approximately 3,300 were employed by its non 
-U.S. subsidiaries. 
Associated companies of Quaker Houghton (in which 
it owns 50% or less and has significant influence) employed 
approximately 600 
people on December 31, 2020. 
Core Values 
Quaker Houghton considers its employees as its greatest strength 
in differentiating our business and strengthening our 
market 
positions. 
We have established 
core values that are inclusive of embracing diversity and 
creating a culture where we learn from and 
are inspired by the many cultures, backgrounds and knowledge 
of our team members. 
The Company’s goal is to have 
an organization 
that is inclusive of all its people and is representative 
of the communities in which we operate. 
The Company’s core 
values are (i) live safe; (ii) act with integrity; (iii) drive results; 
(iv) exceed customer expectations; (v) 
embrace diversity; and (vi) do great things together. 
Our core values embody who we are as a company, 
guide our decisions and 
inspire us. 
Our commitment to these values, in words and actions, builds 
a safer, stronger Quaker Houghton 
, 
and these values guide 
the Company’s internal 
conduct and its relationship with the outside world. 
By fostering a culture and environment that exemplifies 
our core values, we gain, as a company, 
unique perspectives, backgrounds and varying experiences 
to ensure continued long-term 
success. 
The Company respects and values all of its employees and 
believes inclusion, diversity and equality are essential pillars to 
drive the Company’s 
success. 
Workplace 
Safety 
We are committed 
to maintaining a strong safety culture and to emphasizing 
the importance of our employees’ role in identifying, 
mitigating and communicating safety risks. 
We maintain policies 
and operational practices that communicate a culture 
where all 
levels of employees are responsible for safety. 
We believe that 
the achievement of superior safety performance is both 
an important 
short-term and long-term strategic goal in managing our 
operations. 
We emphasize 
ten “lifesaving” rules which make a significant 

 
5 
difference in preventing serious injuries and 
fatalities. 
We also require 
all employees to regularly complete safety training. 
Additionally, our 
senior management team is closely involved in our safety programs 
and conducts regular reviews of safety 
performance metrics and reviews the Company’s 
safety performance during Company-wide meetings. 
Talent 
Management and Retention 
Maintaining a robust pipeline of talent is crucial to 
our 
continued success and is a key aspect of succession planning efforts 
across 
the organization. 
Our leadership and human resources teams are responsible for 
attracting and retaining top talent by facilitating an 
environment where employees want to show up to work 
and do great things together. 
To achieve sustained high 
performance, 
management invests in the development, safety, 
and wellbeing of our employees. 
Additionally, we regularly 
evaluate our 
compensation and benefits package, 
including health and wellness benefits, paid-time off policies, 
monetary compensation, and 
educational reimbursements, 
to ensure that our total compensation and benefits packages are aligned 
with our business strategy, 
organizational culture, and diversity and inclusion 
philosophy while ensuring that we remain competitive in 
the markets we serve 
while following local and statutory wage and benefits 
laws and guidelines. 
Sustainability Report 
The Company publishes annual sustainability reports which 
are available free of charge on its corporate 
website under “Investors 
- Commitment to Sustainability - Sustainability Report.” 
The Company’s 2019 Sustainability Report 
reflects the most recent available 
data on a variety of topics, including 
specific information relating to: (i) the Company’s 
environmental footprint and climate change 
initiatives; 
(ii) the Company’s diversity 
initiatives; 
(iii) certain safety metrics; and (iv) training courses our 
employees completed. 
Information included in these sustainability reports is not intended 
to be incorporated into this Report. 
Quaker Houghton on the Internet 
Financial results, news and other information about 
Quaker Houghton can be accessed from the Company’s 
website at 
https://www.quakerhoughton.com 
. 
This site includes important information on the Company’s 
locations, products and services, 
financial reports, news releases and career opportunities. 
The Company’s periodi 
c 
and current reports on Forms 10-K, 10-Q, 8-K, and 
other filings, including exhibits and supplemental 
schedules filed therewith, and amendments to those reports, filed with 
the Securities 
and Exchange Commission (“SEC”) are available on 
the Company’s website, free of 
charge, as soon as reasonably practicable after 
they are electronically filed with or furnished to the SEC. 
Information contained on, or that may be accessed through, 
the Company’s 
website is not incorporated by reference in this Report and, 
accordingly, you 
should not consider that information part of this Report. 
Factors that May Affect Our Future 
Results 
(Cautionary Statements under the Private Securities Litigation 
Reform Act of 1995) 
Certain information included in this Report and other 
materials filed or to be filed by Quaker Chemical Corporation 
with the SEC 
(as well as information included in oral statements or other 
written statements made or to be made by us) contain 
or may contain 
forward-looking statements within the meaning of Section 
27A of the Securities Act of 1933, as amended, and Section 
21E of the 
Securities Exchange Act of 1934, as amended. 
These statements can be identified by the fact that they do 
not relate strictly to 
historical or current facts. 
We have based 
these forward-looking statements, including statements regarding 
the potential effects of the 
COVID-19 pandemic on the Company’s 
business, results of operation, and financial condition, and our expectations 
that we will 
maintain sufficient liquidity and remediate any 
of our material weaknesses in internal control over financial 
reporting on our current 
expectations about future events. 
These forward-looking statements include statements with respect 
to our beliefs, plans, objectives, goals, expectations, 
anticipations, intentions, financial condition, results of operations, 
future performance, and business, including: 
 
• 
 
the potential benefits of the Combination and other acquisitions; 
 
• 
 
the impacts on our business as a result of the COVID-19 
pandemic and any projected global economic rebound 
or 
anticipated positive results due to Company actions taken 
in response to the pandemic; 
 
• 
 
our current and future results and plans; and 
 
• 
 
statements that include the words “may,” 
“could,” “should,” “would,” “believe,” “expect,” “anticipate,” “estimate,” 
“intend,” “plan” or similar expressions. 
Such statements include information relating to current and 
future business activities, operational matters, capital spending, 
and 
financing sources. 
From time to time, forward-looking statements are also included in 
the Company’s other periodic 
reports on Forms 
10-K, 10-Q and 8-K, press releases, and other materials released 
to, or statements made to, the public. 
Any or all of the forward-looking statements in this Report, 
in the Company’s Annual 
Report to Shareholders for 2020 and in any 
other public statements we make may turn out to be wrong. 
This can occur as a result of inaccurate assumptions 
or as a consequence 
of known or unknown risks and uncertainties. 
Many factors discussed in this Report will be important in determining 
our future 
performance. 
Consequently, actual results may 
differ materially from those that might be anticipated 
from our forward-looking 
statements. 
 

 
6 
We undertake 
no obligation to publicly update any forward-looking statements, 
whether as a result of new information, future 
events or otherwise. 
However, any further disclosures made 
on related subjects in the Company’s 
subsequent reports on Forms 10-K, 
10-Q, 8-K and other related filings should be consulted. 
A major risk is that demand for the Company’s 
products and services is 
largely derived from the demand for our customers’ 
products, which subjects the Company to uncertainties related 
to downturns in a 
customer’s business and unanticipated customer 
production shutdowns. 
Other major risks and uncertainties include, but are not 
limited to, the primary and secondary impacts of the COVID-19 
pandemic including actions taken in response to the pandemic by 
various governments, which could exacerbate some 
or all of the other risks and uncertainties faced by the Company, 
including the 
potential for significant increases in raw material costs, supply 
chain disruptions, customer financial instability, 
worldwide economic 
and political disruptions, foreign currency fluctuations, 
significant changes in applicable tax rates and regulations, 
future terrorist 
attacks and other acts of violence, each of which 
is discussed in greater detail in Item 1A of this Report. 
Furthermore, the Company is 
subject to the same business cycles as those experienced 
by our customers in the steel, automobile, aircraft, industrial 
equipment, and 
durable goods industries. 
The ultimate significance of COVID-19 impacts on our business will depend 
on, among other things, the 
extent and duration of the pandemic, the severity of the 
disease and the number of people infected with the 
virus, the continued 
uncertainty regarding availability, 
administration and long-term efficacy of a 
vaccine, or other treatments, including on new strands or 
mutations of the virus, the longer term effects on 
the economy, including 
the resulting market volatility, 
and the measures taken by 
governmental authorities and other 
third parties restricting day-to-day life and business operations 
and the length of time that such 
measures remain in place, as well as laws and other governmental 
programs implemented to address the pandemic or assist impacted 
businesses, such as fiscal stimulus and other legislation 
designed to deliver monetary aid and other relief. 
Other factors could also 
adversely affect us, including those related to 
the Combination and other acquisitions and the integration of 
the acquired businesses. 
Our forward-looking statements are subject to risks, uncertainties 
and assumptions about the Company and its operations 
that are 
subject to change based on various important factors, 
some of which are beyond our control. 
These risks, uncertainties, and possibly 
inaccurate assumptions relevant to our business could 
cause our actual results to differ materially from expected 
and historical results. 
Therefore, we caution you not to place undue reliance 
on our forward-looking statements. 
For more information regarding these 
risks and uncertainties as well as certain additional 
risks that we face, refer to the Risk Factors section in Item 
1A of this Report, and 
in our quarterly and other reports filed from time 
to time with the SEC. 
This discussion is provided as permitted by the Private 
Securities Litigation Reform Act of 1995. 

 
 
7 
Item 1A. 
Risk Factors. 
There are many factors that may affect our 
business and results of operations, including the following 
risks relating to: (1) the 
demand for our products and services and our ability 
to grow our customer base; (2) our business operations, including 
internal and 
external factors that may impact our operational 
continuity; (3) our international operations; (4) our supply chain 
; 
(5) domestic and 
foreign taxation and government regulation and oversight; 
and (6) more general risk factors that may impact our business. 
Risks Related to the Demand for our Products 
and Services and our Customer Base
 
Changes to the industries and markets that we serve could 
have a material adverse effect on our liquidity, 
financial position and 
results of operations. 
As a leader in industrial process fluids, the Company 
is subject to the same business cycles as those experienced by our 
customers 
that participate in the steel, automobile, aircraft, industrial 
equipment, aerospace, aluminum and durable goods industries. 
Because 
demand for our products and services is largely 
derived from the global demand for their products, we are subject 
to uncertainties 
related to downturns in our customers’ businesses and unanticipated 
shutdowns or curtailments of our customers’ production, 
including as a result of adverse changes affecting 
national, regional and global economies or increased competitive 
pressure within our 
customers’ 
industries. 
For example, our business was adversely affected by the 
production slowdown of the Boeing 737 Max aircraft 
that occurred in 2020. 
Our customers may experience deterioration of their businesses, cash 
flow shortages and difficulty obtaining 
financing, leading them to delay or cancel plans to purchase 
products, and they may not be able to fulfill their obligations 
in a timely 
fashion. 
We have limited ability to 
adjust our costs contemporaneously with changes in sales; thus, 
a significant sudden downturn in 
sales due to reductions in global production within the industries we 
serve and/or weak end-user markets could have a 
material 
adverse effect on our liquidity, 
financial position and results of operations. 
Further, our suppliers and other business partners 
may 
experience similar conditions, which could impact their 
ability to fulfill their obligations to us and also result in material 
adverse 
effects on our liquidity, 
financial position and results of operations. 
Changes in competition in the industries and markets we serve 
could have a material adverse effect on our liquidity, 
financial 
position and results of operations. 
The specialty chemical industry is highly competitive 
and there are many companies with significant financial resources 
and/or 
customer relationships that compete with us to provide 
similar products and services. 
Some competitors may be able to offer more 
favorable or flexible pricing and service terms or, 
due to their larger size or greater access to resources, 
may be better able to adapt to 
changes in conditions in our industries, fluctuations 
in the costs of raw materials or changes in global economic conditions, 
potentially 
resulting in reduced profitability and/or a loss of market 
share for us. 
The pricing decisions of our competitors could lead us to 
decrease our prices which could negatively affect 
our margins and profitability. 
In addition, our competitors could potentially 
consolidate their businesses to gain scale to better position 
their product offerings, which could have a negative 
impact on our 
profitability and market share. 
Competition in our industry historically has also been 
based on the ability to provide products that 
meet the needs of the customer and render technical 
services and laboratory assistance, which our competitors may be 
able to 
accomplish more effectively than we are 
able to do. 
Further, in connection with obtaining regulatory 
approval of the Combination, we 
divested certain of Houghton’s products 
and related assets to a competitor which they may use to compete 
with us in certain areas 
where we continue to sell those products. 
If we are unsuccessful with differentiating ourselves, it could 
have a material adverse effect 
on our liquidity, 
financial position and results of operations and we could lose 
market share to our competitors. 
Loss of a significant customer, 
bankruptcy of a major customer, 
or the closure of or significant reduction in production at a 
customer site could have a material adverse effect 
on our liquidity, financial position and 
results of operations. 
During 2020, the Company’s 
top five largest customers (each composed of multiple 
subsidiaries or divisions with semi-
autonomous purchasing authority) together accounted 
for approximately 10% of our consolidated net sales, with the 
largest customer 
accounting for approximately 3% of our consolidated 
net sales. 
The loss of a significant customer could have a material adverse 
effect 
on our liquidity, 
financial position and results of operations. 
Also, a significant portion of our revenues is derived from 
sales to 
customers in the cyclical steel, aerospace, aluminum 
and automotive industries where bankruptcies have occurred 
in the past and 
where companies have periodically experienced financial 
difficulties. 
If a significant customer experiences financial difficulties 
or 
files for bankruptcy protection, we may be unable to collect 
on our receivables, and customer manufacturing sites may 
be closed or 
contracts voided. 
The bankruptcy of a major customer could therefore have a material 
adverse effect on our liquidity, 
financial 
position and results of operations. 
Also, some of our customers, primarily in the steel, aluminum 
and aerospace industries, often have 
fewer manufacturing locations compared to other metalworking 
customers and generally use higher volumes of products at 
a single 
location. 
The loss, closure or significant reduction in production at one or more 
of these locations or other major sites of a significant 
customer could have a material adverse effect 
on our business. 
We may not 
be able to timely develop, manufacture and gain market acceptance 
of new and enhanced products required to 
maintain or expand our business, which could adversely affect 
our competitive position and our liquidity, financial 
position and 
results of operations. 
We believe that 
our continued success depends on our ability to continuously 
develop and manufacture new products and product 
enhancements on a timely and cost-effective 
basis in response to customer demands for higher performance 
process chemicals and 
other product offerings. 
Our competitors may develop new products or enhancements to 
their products that offer performance, 

 
 
8 
features and lower prices that may render our products less competitive 
or obsolete, and we may lose business and/or significant 
market share. 
The development and commercialization of new products requires 
significant expenditures over an extended period of 
time, and some products that we seek to develop may 
fail to gain traction or never become profitable. 
In any event, ongoing 
investments in research and development for the future 
do not yield an immediate beneficial impact on our operating 
results and 
therefore could result in higher costs without a proportional 
increase in revenues. 
In addition, our customers use our specialty chemicals for 
a broad range of applications. 
Changes in our customers’ products or 
processes or changes in regulatory, 
legislative or industry requirements may lead our customers to reduce 
consumption of the specialty 
chemicals that we produce or make them unnecessary 
or less attractive. 
Customers may also adopt alternative materials or processes 
that do not require our products. 
An example of such evolving customer demands and 
industry trends is the movement towards light 
weighting of materials and electric vehicles. 
Should a customer decide to use a different material due 
to price, performance or other 
considerations, we may not be able to supply a product that 
meets the customer’s new requirements. 
Consequently, it is important 
that 
we develop new products to replace the products that 
mature and decline in use. 
Despite our efforts, we may not be able to develop 
and introduce products incorporating new technologies in a 
timely manner that will satisfy our customers’ future needs or achieve 
market acceptance. 
Moreover, new products may have 
lower margins than the products they replace. 
Our business, results of 
operations, cash flows and margins could 
be materially adversely affected if we are unable to manage 
successfully the maturation or 
obsolescence of our existing products and the introduction 
of new products. 
Risks Related to Business Operations, Including Internal 
and External Factors that May Impact Our Operational 
Continuity 
Our ability to profitably operate our consolidated company 
as anticipated requires us to effectively complete 
the integration of our 
consolidated operations. 
An inability to appropriately capitalize on growth, including organic 
growth and future acquisitions, 
could adversely affect our liquidity, 
financial position and results of operations. 
Completing the integration of the combined Quaker Houghton 
presents the Company with significant risks, which may affect 
our 
ability to achieve expected cost synergies or 
expand our combined business into new markets and geographies. 
These risks include, 
among others: 
●
 
the diversion of management time and focus from operating 
our business to address challenges that may arise in the 
continued integration of Houghton; 
●
 
the transition of further operations and customers of Houghton 
to the combined business, including across different 
cultures 
and languages, and the need to address the particular economic, 
currency, political, and 
regulatory risks associated with 
specific countries; 
●
 
the failure to realize anticipated operational or financial 
synergies; 
●
 
delays in the implementation or remediation of controls, procedures, 
and policies at Houghton; 
●
 
possible liabilities for activities of Houghton before the acquisition, 
such as possible violations of laws, commercial disputes, 
tax liabilities (as discussed in Note 26 of Notes to Consolidated 
Financial Statements included in Item 8 of this Report), 
and 
other known and unknown liabilities that may not be sufficiently 
protected against in the Share Purchase Agreement. 
In addition to the Combination, we have completed several 
other acquisitions over the past several years as discussed 
in Note 2 of 
the Notes to the Consolidated Financial Statements included in 
Item 8 of this Report. 
Acquired companies may have significant latent 
liabilities that may not be discovered before they are acquired 
and may not be reflected in the price we pay. 
Acquisitions also could 
have a dilutive effect on our financial results and 
while they generally result in goodwill, goodwill could be impaired 
in the future 
resulting in a charge to earnings. 
Our ability to implement our growth strategy may be 
limited by our ability to identify appropriate acquisition 
or joint 
venture 
candidates, our financial resources, including available 
cash and borrowing capacity, 
and our ability to negotiate and complete suitable 
arrangements. 
Further, the success of our growth 
depends on our ability to navigate risks similar to those listed above 
and 
successfully integrate acquisitions, including, but not 
limited to, our ability to: 
●
 
successfully execute the integration or consolidation 
of the acquired or additional business into existing processes and 
operations; 
●
 
develop or modify financial reporting, information 
systems and other related financial tools to ensure overall financial 
integrity and adequacy of internal control procedures; 
●
 
identify and take advantage of potential synergies, 
including cost reduction opportunities, while retaining 
legacy business and 
other related attributes; 
●
 
adequately address challenges arising from the increased scope, 
geographic diversity and complexity of our operations; and 
●
 
further penetrate existing, and expand into new, 
markets with the product capabilities acquired in acquisitions. 
If we fail to successfully integrate acquisitions into our 
existing business, our financial condition and results of operations 
could 
be adversely affected. 
We may fail 
to obtain the benefits we anticipate from the Combination 
or our other recently completed or 

 
9 
future acquisitions or joint ventures and we may not 
create the appropriate infrastructure to support such additional 
growth from 
organic or acquired businesses, which could 
also have a material adverse effect on our liquidity, 
financial position and results of 
operations. 
Gulf and its wholly-owned subsidiary, 
QH Hungary Holdings Limited, have a significant minority stake in the Company 
and the 
contractual ability to nominate certain directors of the Company, 
which may enable them to influence the direction of our business 
and significant corporate decisions.
 
As a result of the Combination, Gulf and its wholly 
-owned subsidiary, QH Hungary 
Holdings Limited (together, the 
“Gulf 
Affiliates”), have become our largest shareholders. 
Subject to certain restrictions over timing and amount of sales in the 
shareholders 
agreement they have entered into with the Company, 
if they were to make available for sale a portion of their shares, 
that portion 
could represent a significant amount of common 
stock of the Company being sold which could have an adverse impact 
on the 
Company’s stock price. 
In addition, the Gulf Affiliates currently have 
the right to designate three individuals for election to our board 
of directors (the 
“Board”) and this right, together with their share ownership, 
gives them substantial influence over our business, including 
over matters 
submitted to a vote of our shareholders, including the election 
of directors, amendment of our organizational documents, 
acquisitions 
or other business combinations involving the Company, 
and potentially the ability to prevent extraordinary transactions such 
as a 
takeover attempt or business combination. 
The concentration of ownership of our shares held by the Gulf 
Affiliates may make some 
future actions more difficult without their support. 
The Gulf Affiliates, however, 
among other provisions in the shareholders 
agreement, have agreed that for so long as any of their designees 
are on the Board, and for six months thereafter, 
they will vote all 
Quaker Houghton shares consistent with the recommendations of 
the Board for each director nominee as reflected in each proxy 
statement of the Company, 
including in support 
of any Quaker Houghton directors nominated for election or 
re-election to the Board 
(except as would conflict with their rights to designees on 
the Board). 
Nevertheless, the interests of Gulf may conflict with our 
interests or the interests of our other shareholders, though 
we are not aware of any such existing conflicts of interest at this time. 
Failure to comply with any material provision of our principal 
credit facility or other debt agreements could have a material 
adverse effect on our liquidity, 
financial position and results of operations.
 
We significantly 
increased our level of indebtedness in connection with 
the closing of the Combination. 
Our principal credit 
facility requires the Company to comply with certain 
provisions and covenants, and, while we do not currently 
consider these 
provisions and covenants to be overly restrictive, they 
could become more difficult to comply with as business or 
financial conditions 
change. 
We will also be subject 
to interest rate risk due to the variable interest rates within the 
credit facility and if interest rates rise 
significantly, these 
interest costs would increase as well. 
Our principal credit facility contains provisions that 
are customary for facilities of its type, including affirmative 
and negative 
covenants, financial covenants and events of default, 
including restrictions on (a) the incurrence of additional 
indebtedness, (b) 
investments in and acquisitions of other businesses, lines of 
business and divisions, (c) the making of dividends or capital stock 
purchases and (d) dispositions of assets. 
We may declare 
dividends and make share repurchases in annual amounts not 
exceeding the 
greater of $50 million annually and 20% of consolidated 
EBITDA (earnings before interest, taxes, depreciation and 
amortization) if 
we are otherwise in compliance with the credit facility 
and we may also distribute certain other amounts to our shareholders if 
we 
satisfy a consolidated net leverage ratio. 
Other financial covenants contained in our principal credit 
facility include a consolidated 
interest coverage test and a consolidated net leverage 
test. 
Customary events of default in the credit facility include, 
among others, 
defaults for non-payment, breach of representations and warranties, 
non-performance of covenants, cross-defaults, insolvency, 
and a 
change of control of the Company in certain circumstances. 
If we are unable to comply with the financial and 
other provisions of our 
principal facility, 
we could become in default. 
The occurrence of an event of default under the credit facility 
could result in all loans 
and other obligations becoming immediately due and payable and 
the facility being terminated. 
In addition, deterioration in the 
Company’s results of 
operations or financial position could significantly increase 
borrowing costs. 
Changes to the LIBOR calculation method or the replacement 
of LIBOR may have adverse consequences for the Company 
that 
cannot yet reasonably be predicted.
 
The Company’s principal 
credit facility permits interest on certain borrowings to be calculated based 
on LIBOR. 
The LIBOR 
benchmark has been subject of national, international, 
and other regulatory guidance and proposals for reform and is currently 
expected to be discontinued after 2021. 
The transition away from LIBOR presents various risks and challenges, 
including with 
respect to our borrowings and hedging arrangements that 
rely on the LIBOR benchmark. 
Further, the overall financial market 
may be 
disrupted as a result of the phase-out or replacement of 
LIBOR. 
Various 
parties are working on industry wide and company specific 
transition plans related to derivatives and cash markets exposed 
to LIBOR. 
The U.S. Federal Reserve, in conjunction with the 
Alternative Reference Rates Committee, a steering 
committee comprised of large U.S. financial institutions, 
is considering replacing 
LIBOR with the Secured Overnight Financing Rate (“SOFR”), 
a new index calculated using short-term repurchase agreements, 
backed by Treasury securities. 
At this time, the future of LIBOR remains uncertain. 
It is not possible to predict whether SOFR will 
attain market traction as a LIBOR replacement or to 
predict any other reforms to LIBOR that may be enacted. 
The potential effect of 
the phase-out or replacement of LIBOR on the Company’s 
financial position or results of operations cannot yet be predicted, 
but we 
do not believe it would have a material adverse impact 
on the financial results of the Company. 

 
 
10 
Risks Related to our International Operations
 
Our global presence subjects us to political and economic 
risks that could adversely affect our business, liquidity, 
financial 
position and results of operations. 
A significant portion of our revenues and earnings are generated 
by non-U.S. operations. 
Our success as a global business will 
depend, in part, upon our ability to succeed across different 
legal, regulatory, economic, 
social and political conditions by developing, 
implementing and maintaining policies and strategies that 
are effective in all of the locations where we do 
business. 
Risks inherent in 
our global operations include: 
●
 
increased transportation and logistics costs, or transportation 
may be restricted; 
●
 
increased cost or decreased availability of raw materials; 
●
 
trade protection measures including import and export 
controls, trade embargoes, and trade sanctions between 
countries or 
regions we serve that could result in our losing access to customers 
and suppliers in those countries or regions; 
●
 
unexpected adverse changes in export duties, quotas and 
tariffs and difficulties in obtaining export licenses; 
●
 
termination or substantial modification of international 
trade agreements that may adversely affect our access to 
raw 
materials and to markets for our products; 
●
 
our agreements with counterparties in countries outside 
the U.S. may be difficult for us to enforce 
and related receivables 
may take longer or be difficult for us to collect; 
●
 
difficulties of staffing and managing 
dispersed international operations; 
●
 
less protective foreign intellectual property laws, and 
more generally, legal 
systems that may be less developed and 
predictable than those in the U.S.; 
●
 
limitations on ownership or participation in local enterprises as well 
as the potential for expropriation or nationalization 
of 
enterprises; 
●
 
the impact of widespread public health crises, such as the 
COVID-19 pandemic; 
●
 
instability in or adverse changes to the economic, political 
, 
social, legal or regulatory conditions in a country or region where 
we do business, including hyperinflationary conditions or 
as a result of terrorist activities; and 
●
 
complex and dynamic local tax regulations, including 
changes in foreign laws and tax rates or U.S. laws and tax 
rates with 
respect to foreign income that may unexpectedly increase 
the rate at which our income is taxed, impose new and additional 
taxes on remittances, repatriation or other payments by 
subsidiaries, or cause the loss of previously recorded tax benefits. 
The current global geopolitical and trade environment 
creates the potential for increased escalation of domestic and international 
tariffs and retaliatory trade policies. 
Further changes in U.S. trade policy and additional 
retaliatory actions by U.S. trade partners 
could result in a worsening of economic conditions. 
If we are unable to successfully manage these and other 
risks associated with our 
international businesses, the risks could have a material 
adverse effect on our business, results of operations 
or financial condition. 
Additionally, on 
January 31, 2020, the United Kingdom’s 
(“U.K.”) ended its membership in the European Union (“EU”) 
(commonly referred to as “Brexit”). 
The U.K. and the EU entered into a trade and cooperation agreement 
effective January 1, 2021, 
but uncertainty remains regarding its implications and 
implementation, 
and whether any new trade agreements with other countries or 
territories will be agreed upon and implemented and how any 
such agreements may impact our business. 
The long-term economic, 
legal, political and social implications of Brexit, including 
regarding data protection in the U.K. and the free movement 
of goods, 
services, and people between the U.K., the EU, and 
elsewhere, also remains unclear. 
Brexit has caused and could cause further 
disruptions to, and create uncertainty surrounding, our 
business in the U.K. and EU, including affecting our 
relationships with our 
existing and future customers, suppliers and employees. 
Brexit could lead to legal uncertainty and potentially divergent 
national laws 
and regulations as the U.K. determines which EU laws to 
replace or replicate. 
Brexit could also lead to calls for similar referendums 
in other European jurisdictions which could cause increased 
economic volatility in the European and global markets. 
Uncertainty 
around these and related issues could lead to adverse 
effects on the economy of the U.K. or in the other economies 
in which we 
operate. 
There can be no assurance that any or all of these events will not 
have a material adverse effect on our business operations, 
results of operations and financial condition. 
The scope of our international operations subjects us to risks from 
currency fluctuations that could adversely affect 
our liquidity, 
financial position and results of operations. 
Our non-U.S. operations generate significant revenues 
and earnings. 
Fluctuations in foreign currency exchange rates may affect 
product demand and may adversely affect the 
profitability in U.S. dollars of the products and services we provide 
in international 
markets where payment for our products and services is made 
in the local currency. 
Our financial results are affected by currency 
fluctuations, particularly between the U.S. dollar and 
the euro, the Brazilian real, the Mexican peso, the Chinese renminbi, 
and the 
Indian rupee, and the impact of those currency fluctuations 
on the underlying economies. 
During the past three years, sales by our 

 
 
11 
non-U.S. subsidiaries, which use their local currencies as their 
functional currency, 
accounted for approximately 60% to 70% of our 
consolidated net sales. 
We generally do 
not use financial instruments that expose us to significant risk 
involving foreign currency 
transaction; however, the relative size 
of our non-U.S. activities has a significant impact on reported 
operating results and our net 
assets. 
Therefore, as exchange rates change, our results can 
be materially affected. 
Incorporated by reference is the foreign exchange 
risk information contained in Item 7A of this Report 
and the geographic information in Note 4 of Notes to Consolidated 
Financial 
Statements included in Item 8 of this Report. 
Also, we occasionally source inventory in a different 
country than that of the intended sale. 
This practice can give rise to foreign 
exchange risk. 
We seek to mitigate this 
risk through local sourcing of raw materials in the majority 
of our locations. 
Risks Relating to Our Supply Chain
 
If we are unable to obtain price increases or contract concessions sufficient 
to offset increases in the costs of raw materials, 
this 
could result in a loss of sales, gross profit, and/or market 
share and could have a material adverse effect 
on our liquidity, financial 
position and results of operations. 
Conversely, if we fail to adjust prices in a 
declining raw material cost environment, we could 
lose sales, gross profit, and/or market share which could have 
a material adverse effect on our liquidity, 
financial position and 
results of operations.
 
Quaker Houghton uses approximately 3,000 different 
raw materials, including animal fats, vegetable oils, mineral oils, 
oleochemicals, ethylene, solvents, surfactant agents, various 
chemical compounds that act as additives to our base formulations, 
and a 
wide variety of other organic and inorganic 
compounds, and various derivatives of the foregoing. 
The price of mineral oils and their 
derivatives can be affected by the price of 
crude oil and industry refining capacity. 
Animal fat and vegetable oil prices, as well as the 
prices of other raw materials, are impacted by their 
own specific supply and demand factors, as well as by biodiesel 
consumption 
which is also affected by the price of crude 
oil. 
Accordingly, significant 
fluctuations in the price of crude oil in the past have had and 
are expected to continue to have a material impact on the 
cost of our raw materials. 
In addition, many of the raw materials we use are 
commodity chemicals, which can experience significant 
price volatility. 
We generally 
attempt to pass through changes in the prices of raw materials to 
our customers, but we may be unable to do so (or 
may be delayed in doing so). 
In addition, raising prices we charge to 
our customers in order to offset increases in the 
prices we pay 
for raw materials could cause us to suffer 
a loss of sales volumes. 
Although we have been successful in the past in recovering 
a 
substantial amount of raw material cost increases while retaining 
our customers, there can be no assurance that we will be able to 
continue to offset higher raw material costs or 
retain customers in the future. 
A significant change in margin or the loss of customers 
due to pricing actions could result in a material adverse 
effect on our liquidity, 
financial position, and results of operations. 
Lack of availability of raw materials and issues associated with sourcing 
from single suppliers and suppliers in volatile economic 
environments could have a material adverse effect 
on our liquidity, financial position, and 
results of operations.
 
The specialty chemical industry periodically experiences 
supply shortages for certain raw materials. 
In addition, we source some 
materials from a single supplier or from suppliers in 
jurisdictions that have experienced political or economic 
instability. 
Even if we 
have multiple suppliers of a particular raw material, there 
are occasionally shortages. 
Any significant disruption in supply could affect 
our ability to obtain raw materials or satisfactory substitutes or 
could increase the cost of such raw materials or substitutes, which 
could have a material adverse effect on our 
liquidity, financial position and 
results of operations. 
In addition, certain raw materials 
that we use are subject to various regulatory laws, and 
a change in our ability to legally use such raw materials may impact the 
products or services we are able to offer which 
could negatively affect our ability to compete and could 
adversely affect our liquidity, 
financial position and results of operations. 
Loss of a significant manufacturing facility or disruptions within 
our supply chain or in transportation could have a 
material 
adverse effect on our liquidity, 
financial position and results of operations. 
Our manufacturing facilities are located throughout 
the world. 
While we have some redundant capabilities, if one of our facilities 
is forced to shut down or curtail operations because of damage 
or other factors, including natural disasters, labor difficulties 
or 
widespread public health crises, such as the ongoing 
COVID-19 pandemic, we may not be able to timely supply 
our customers. 
This 
could result in a loss of sales over an extended period 
or permanently. 
While the Company seeks to mitigate this risk through business 
continuity and contingency planning and other measures, 
the loss of production in any one region over an extended period of time 
could have a material adverse effect on our 
liquidity, financial position and 
results of operations. 
In addition, the coronavirus 
pandemic has caused and may in the future cause significant 
travel disruptions, quarantines and/or closures, which could result 
in 
disruptions to our manufacturing and production operations 
at our facilities, as well as those of our suppliers and customers. 
Any 
losses due to these events may not be covered by our existing 
insurance policies or may be subject to certain deductibles. 
We could 
be similarly adversely affected by disruptions 
to our supply chain and transportation network. 
The Company relies 
heavily on railroads, ships, and over-the-road shipping methods to 
transport raw materials to its manufacturing facilities and to 
transport finished products to customers. 
The costs of transporting our products could be negatively 
affected by factors outside of our 
control, including shipping container shortages or global 
imbalances in shipping capabilities, rail service interruptions or rate 
increases, extreme weather events, tariffs, 
rising fuel costs and capacity constraints. 
Significant delays or increased costs affecting our 
supply chain could materially affect our financial 
condition and results of operations. 
Disruptions at our suppliers could lead to short 

 
 
12 
term or longer term increases in raw material or energy 
costs and/or reduced availability of materials or energy, 
potentially affecting 
our financial condition and results of operations. 
Risks Relating to Domestic and Foreign Taxation 
and Government Regulation and Oversight
 
Changes in tax laws could result in fluctuations in our effective 
tax rate and have a material effect on our liquidity, 
financial 
position and results of operation.
 
We pay income 
taxes in the U.S. and various foreign jurisdictions. 
Our effective tax rate is derived from a combination 
of local 
tax rates and tax attributes applicable to our operations in 
the various countries, states and other jurisdictions in which we 
operate. 
Our effective tax rate and respective tax liabilities could 
therefore be materially affected by changes in 
the mix of earnings in countries 
with differing statutory tax rates, changes in tax 
rates, expiration or lapses of tax credits or incentives, changes 
in uncertain tax 
positions, changes in the valuation of deferred tax 
assets and liabilities, or changes in tax laws or in how they are 
interpreted or 
enforced, including matters such as transfer pricing. 
One example is the impact of the U.S. Tax 
Cuts and Jobs Act, enacted in the U.S. 
in 2017 (“U.S. Tax 
Reform”). 
We have made 
various interpretations and assumptions with regard to uncertainties 
and ambiguities in 
the application of certain provisions of U.S. Tax 
Reform which could turn out to be incorrect. 
In addition, we are regularly under 
audit by tax authorities, and the final decisions of 
such audits could materially affect our current tax estimates and 
tax positions. 
See 
Note 10 and Note 26 of Notes to Consolidated Financial 
Statements in Item 8 of this Report for a discussion of certain 
income and 
non-income tax audits and inspections. 
Any of these factors or similar tax-related risks could cause our 
effective tax rate and tax-
related payments, 
including any such payments related to tax liabilities of businesses we have 
acquired, to significantly differ from 
previous periods and current or future expectations 
which could have a material effect on our liquidity, 
financial position and results 
of operations.
 
Pending and future legal proceedings including environmental 
matters could have a material adverse effect on 
our liquidity, 
financial position, and results of operations, as well as our reputation 
in the markets it serves. 
The Company and its subsidiaries are routinely party 
to proceedings, cases, and requests for information from, and negotiations 
with, various claimants and federal and state agencies relating 
to various legal matters, including tax and environmental 
matters. 
See 
Note 10 and Note 26 of Notes to Consolidated Financial 
Statements in Item 8 of this Report, which describes uncertain 
tax positions 
and tax audits and inspections, as well as certain information 
concerning pending asbestos-related litigation against 
an inactive 
subsidiary, amounts 
accrued associated with certain environmental, non-capital remediation 
costs and other potential commitments or 
contingencies. 
An adverse result in one or more pending or ongoing matters 
or any potential future matter of a similar nature could 
materially and adversely affect our liquidity, 
financial position, and results of operations, as well as our reputation 
in the markets we 
serve. 
Failure to comply with the complex global regulatory 
environment in which we operate could have an adverse impact 
on our 
reputation and/or a material adverse effect 
on our liquidity, financial position and 
results of operations.
 
 
We are subject 
to government regulation in all of the jurisdictions in which 
we conduct our business. 
Changes in the regulatory 
environments 
in which we operate, particularly, 
but not limited to, the U.S., Mexico, Brazil, China, India, Thailand, 
Australia, the 
U.K. and the EU, could lead to heightened regulatory compliance 
costs and scrutiny, could 
adversely impact our ability to continue 
selling certain products in the U.S. or foreign markets, 
and/or could otherwise increase the cost of doing business. 
While we seek to 
mitigate these risks through a variety of actions, 
including receiving Responsible Care Certification, ongoing 
employee training, 
and 
employing a comprehensive environmental, health and 
safety program, there is no guarantee these actions will prevent all potential 
regulatory compliance issues. 
For instance, failure to comply with the EU’s 
Registration, Evaluation, Authorization and Restriction of 
Chemicals (“REACH”) regulations or other similar laws and 
regulations could result in our inability to sell certain 
products or we 
could incur fines, ongoing monitoring obligations or other 
future business consequences, which could have a material adverse 
effect 
on our liquidity, 
financial position and results of operations. 
In addition, the U.S. Toxic 
Substances Control Act (“TSCA”) requires 
chemicals to be assessed against a risk-based safety standard 
and that unreasonable risks identified during risk 
evaluation be 
eliminated. 
This regulation and other pending initiatives at the U.S. state 
level, as well as initiatives in Canada, Asia and other 
regions, could potentially require toxicological testing 
and risk assessments of a wide variety of chemicals, including chemicals 
used 
or produced by us. 
These assessments may result in heightened concerns about 
the chemicals involved and additional requirements 
being placed on their production, handling, labeling 
or use. 
These concerns and additional requirements could also 
increase the cost 
incurred by our customers to use our chemical products 
and otherwise limit their use which could lead to a 
decrease in demand for 
these products. 
A decrease in demand due to these issues could have an adverse 
impact on our business and results of operation. 
 
Further, we are subject to the 
U.S. Foreign Corrupt Practices Act (the “FCPA”), 
the U.K. Bribery Act and other anti-bribery, 
anti-
corruption and anti-money laundering laws in jurisdictions around 
the world. 
The FCPA, the 
U.K. Bribery Act and similar laws 
generally prohibit companies and their officers, 
directors, employees and third-party intermediaries, business partners 
and agents, 
from making improper payments or providing other improper 
items of value to government officials or other 
persons. 
While we have 
policies and procedures and internal controls designed 
to address compliance with such laws, we cannot guarantee that 
our employees 
and third-party intermediaries, business partners and 
agents will not take, or be alleged to have taken, actions in violation of 
such 
policies and laws for which we may be ultimately held 
responsible. 
Detecting, investigating and resolving actual or alleged violations 
can be extensive and require a significant diversion of 
time, resources and attention from senior management. 
Any violation of the 
FCPA, the U.K. 
Bribery Act or other applicable anti-bribery, 
anti-corruption and anti-money laundering laws could 
result in 

 
13 
whistleblower complaints, adverse media coverage, 
investigations, loss of export privileges, and criminal or 
civil sanctions, penalties 
and fines, any of which could adversely affect 
our business and financial condition. 
 
The shipment of goods, services and technology 
across international borders subjects us to extensive trade laws and 
regulations. 
Our import activities are governed by the unique customs 
laws and regulations in each of the countries where we operate. 
Moreover, 
many countries, including the U.S., control the export and 
re-export of certain goods, services and technology and impose related 
export record-keeping and reporting obligations. 
Governments may also impose economic sanctions against certain 
countries, persons 
and entities that may restrict or prohibit transactions 
involving such countries, persons and entities, which may limit 
or prevent our 
conduct of business in certain jurisdictions. 
 
The laws and regulations concerning import activity, 
export record-keeping and reporting, export control and 
economic sanctions 
are complex and constantly changing. 
These laws and regulations can cause delays in shipments and 
unscheduled operational 
downtime. 
Moreover, any failure to comply with applicable 
legal and regulatory trading obligations could result in 
criminal and civil 
penalties and sanctions such as fines, imprisonment, 
debarment from governmental 
contracts, seizure of shipments and loss of import 
and export privileges. 
In addition, investigations by governmental authorities as well 
as legal, social, economic and political issues in 
these countries could have a material adverse effect 
on our business, results of operations and financial condition. 
We are also subject 
to the risks that our employees, joint venture partners 
and agents outside of the U.S. may fail to comply with 
other applicable laws. 
Uncertainty related to environmental regulation and industry standards 
relating to, as well as physical risks of, climate change and 
biodiversity loss, could impact our results of operations and 
financial position. 
Increased public and stakeholder awareness and concern 
regarding global climate change, biodiversity 
loss, and other 
environmental risks may result in more extensive international, 
regional and/or federal requirements or industry standards to reduce 
or 
mitigate the effects of these changes. 
These regulations could mandate even more restrictive standards 
or industry standards than the 
voluntary goals that we have established or require changes 
to be adopted on a more accelerated time frame. 
There continues to be a 
lack of consistent climate legislation, which 
creates economic and regulatory uncertainty. 
For example, the new U.S. presidential 
administration has issued Executive Orders seeking to 
adopt new regulations and policies to address climate change and 
to suspend, 
revise, or rescind prior agency actions that are identified 
as conflicting with the administration’s 
climate policies. 
The new 
presidential administration also announced that in February 
2021, the U.S. will formally re-join the Paris Agreement. 
The Paris 
Agreement requires countries to review and “represent 
a progression” in their intended nationally determined contributions 
which set 
greenhouse gas emission reduction goals every five 
years. 
Though we are closely following developments in this area 
and changes in 
the regulatory landscape in the U.S., we cannot predict 
how or when those challenges may ultimately impact our business. 
While 
certain climate change initiatives may result in new 
business opportunities for us in the area of alternative 
fuel technologies and 
emissions control, compliance with these initiatives may also result 
in additional costs to us including, among other things, increased 
production costs, additional taxes, reduced emission allowances 
or additional restrictions on production or operations. 
In addition, the potential physical impacts of climate change 
and biodiversity loss are highly uncertain and 
will be particular to the 
circumstances developing in various geographical regions. 
These may include extreme weather events and long-term 
changes in 
temperature levels and water availability as well as damaged ecosystems. 
The physical risks of climate change and biodiversity loss 
may impact our facilities, our customers and suppliers, and 
the availability and costs of materials and natural resources, sources 
and 
supply of energy, 
product demand and manufacturing. 
In particular, climate change serves as a risk multiplier 
increasing both the 
frequency and severity of natural disasters that may affect 
our business operations. 
If environmental laws or regulations or industry standards 
are either changed or adopted and impose significant operational 
restrictions and compliance requirements upon us or 
our products, or our operations are disrupted due to physical impacts of 
climate 
change or biodiversity loss, our business, capital expenditures, 
results of operations, financial condition and competitive 
position could 
be negatively impacted. 
We are subject to 
stringent labor and employment laws in many jurisdictions in which 
we operate, and our relationship with our 
employees could deteriorate which could adversely impact 
our operations.
 
A majority of our full-time employees are employed outside 
the U.S. 
In many jurisdictions where we operate, labor and 
employment laws grant significant job protection to certain 
employees including rights on termination of employment. 
In addition, in 
certain countries our employees are represented by 
works councils or are governed by collective bargaining 
agreements. 
We are often 
required to consult with and seek the consent or advice of 
works councils or labor unions. 
These regulations and laws, together with 
our obligations to seek consent or consult with the relevant 
unions or works councils, could have a significant impact 
on our flexibility 
in managing costs and responding to market changes. 
While the Company believes it has generally positive relations with its labor 
unions and employees, there is no guarantee the Company 
will be able to successfully negotiate new or renew labor 
agreements 
without work stoppages, labor difficulties or 
unfavorable terms. 
If we were to experience any extended interruption of operations 
at 
any of our facilities because of strikes or other work stoppages, 
our results of operations and financial condition could be 
materially 
and adversely affected. 

 
 
14 
We may be 
unable to adequately protect our proprietary rights and trade brands, 
which may limit our ability to compete in our 
markets and could adversely affect our liquidity, 
financial position and results of operations.
 
 
We have a 
limited number of patents and patent applications, including 
patents issued, applied for, or acquired 
in the U.S. and in 
various foreign countries, some of which are material 
to our business. 
However, we rely principally on our 
proprietary formulae and 
the applications know-how and experience to meet 
customer needs. 
Also, our products are identified by trademarks that are registered 
throughout our marketing area. 
Despite our efforts to protect our proprietary information 
through patent and trademark filings, and 
the use of appropriate trade secret protections, it is possible 
that competitors or other unauthorized third parties may obtain, copy, 
use, 
disclose or replicate our formulae, products, and proces 
ses. 
Similarly, third 
parties may assert claims against us and our customers 
and distributors alleging our products infringe upon 
third-party intellectual property rights. 
In addition, the laws and/or judicial 
systems of foreign countries in which we design, manufacture, 
market and sell our products may afford little or 
no effective protection 
of our proprietary technology or trade brands. 
Also, security over our global information technology structure 
is subject to increasing 
risks associated with cyber-crime and other related cyber-security 
threats. 
These potential risks to our proprietary information, trade 
brands and other intellectual property could subject us to 
increased competition and a failure to protect, defend or enforce our 
intellectual property rights could negatively impact 
our liquidity, financial position 
and results of operations. 
General Risk Factors 
Our business could be adversely affected 
by environmental, health and safety laws and regulations or by 
potential product, service 
or other related liability claims.
 
The development, manufacture and sale of specialty 
chemical products and other related services involve inherent 
exposure to 
potential product liability claims, service level claims, product 
recalls and related adverse publicity. 
Some customers have and may in 
the future require us to represent that our products conform 
to certain product specifications provided by them. 
Any failure to comply 
with such specifications could result in claims or legal 
action against us. 
Any of the foregoing potential product or service risks could 
also result in substantial and unexpected expenditures 
and affect customer confidence in our products and 
services, which could have a 
material adverse effect on our liquidity, 
financial position and results of operations. 
In addition, our business is subject to hazards associated 
with the manufacturing, handling, use, storage, and transportation 
of 
chemical materials and products, including historical operations 
at our current and former facilities. 
These potential hazards could 
cause personal injury and loss of life, severe damage 
to, or destruction of, property or equipment and environmental contamination 
or 
other environmental damage, which could have an adverse 
effect on our business, financial condition or results 
of operations. 
In the 
jurisdictions in which we operate, we are subject to numerous U.S. 
and non-U.S. national, federal, state and local environmental, 
health and safety laws and regulations, including those 
governing the discharge of pollutants into the air and 
water, the management 
and disposal of hazardous substances and wastes and the 
cleanup of contaminated properties. 
We currently 
use, and in the past have 
used, hazardous substances at many of our facilities, and 
we have in the past been, and may in the future be, subject 
to claims relating 
to exposure to hazardous materials. 
We also have 
generated, and continue to generate, hazardous wastes at a number 
of our facilities. 
Liabilities associated with the investigation and 
cleanup of hazardous substances, as well as personal injury, 
property damages or 
natural resource damages arising from the release of, 
or exposure to, such hazardous substances, may be imposed in many situations 
without regard to violations of laws or regulations 
or other fault, and may also be imposed jointly and severally (so 
that a responsible 
party 
may be held liable for more than its share of the losses involved, 
or even the entire loss). 
These liabilities may also be imposed 
on many different entities, including, for 
example, current and prior property owners or operators, as well as entities 
that arranged for 
the disposal of the hazardous substances. 
The liabilities may be material and can be difficult to identify 
or quantify. 
In addition, the 
occurrence of disruptions, shutdowns or other material 
operating problems at our facilities or those of our customers 
due to any of 
these risks could adversely affect our reputation 
and have a material adverse effect on our operations 
as a whole, including our results 
of operations and cash flows, both during and after the 
period of operational difficulties. 
Further, some of the raw materials we handle 
are subject to government regulation. 
These regulations affect the manufacturing 
processes, handling, uses and applications of our products. 
In addition, our production facilities and a number of our distribution 
centers require numerous operating permits. 
Due to the nature of these requirements and changes in our operations, 
our operations 
may exceed limits under permits or we may not have 
the proper permits to conduct our operations. 
Ongoing compliance with environmental laws, regulations 
and permits that impact registration/approval requirements, 
transportation and storage of raw materials and finished 
products, and storage and disposal of wastes could require 
us to make changes 
in manufacturing processes or product formulations and 
could have a material adverse effect on our results 
of operations. 
We may 
incur substantial costs, including fines, damages, criminal 
or civil sanctions and remediation costs, or experience 
interruptions in our 
operations, including as a result of revocation, non-renewal 
or modification of the Company’s 
operating permits and revocation of the 
Company’s product 
registrations, for violations arising under these laws or permit 
requirements. 
Any such revocation, modification or 
non-renewal may require the Company to cease or limit 
the manufacture and sale of its products at one or more of its facilities, which 
may limit or prevent the Company’s 
ability to meet product demand or build new facilities and 
may have a material adverse effect on 
the Company’s business, financial 
position, results of operations and cash flows. 
Additional information may arise in the future 
concerning the nature or extent of our liability with 
respect to identified sites, and additional sites may be identified 
for which we are 
alleged to be liable, that could cause us to materially increase 
our environmental accrual or the upper range of the 
costs we believe we 
could reasonably incur for such matters. 
Increased compliance costs may not affect competitors 
in the same way that they affect us 

 
15 
due to differences in product formulations, 
manufacturing locations or other factors, and we could be at a competitive 
disadvantage, 
which might adversely affect our financial performance. 
We could be 
subject to indemnity claims and liable for other payments relating to 
properties or businesses we have divested.
 
In connection with the sale of certain properties and 
businesses, we agreed to indemnify the purchasers of such 
properties for 
certain types of matters, such as certain breaches of representations 
and warranties, taxes and certain environmental matters. 
With 
respect to environmental matters, the discovery of 
contamination arising from properties that we have divested may 
expose us to 
indemnity obligations under the sale agreements with 
the buyers of such properties or cleanup obligations and 
other damages 
under 
applicable environmental laws, even if we were not 
aware of the contamination. 
We may not have 
insurance coverage for such 
indemnity obligations. 
Further, we cannot predict the nature of 
and the amount 
of any indemnity or other obligations we may have to 
the applicable purchaser. 
These payments may be costly and may adversely affect 
our financial condition and results of operations. 
Our insurance may not fully cover all potential exposures. 
We maintain 
product, property, 
business interruption, casualty, 
and other general liability insurance, but this may not cover 
all 
risks associated with the hazards of our business and these 
coverages are subject to limitations, including deductibles 
and coverage 
limits. 
We may incur 
losses beyond the limits, or outside the coverage, of our insurance 
policies, including liabilities for 
environmental remediation. 
In addition, from time to time, various types of insurance 
for companies in the specialty chemical 
industry have not been available on commercially acceptable 
terms and, in some cases, have not been available at all. 
We are 
potentially at additional risk if one or more of our 
insurance carriers fail. 
Additionally, severe disruptions 
in the domestic and global 
financial 
markets could adversely impact the ratings and survival 
of some of our insurers. 
Future downgrades in the ratings of enough 
insurers could adversely impact both the availability of 
appropriate insurance coverage and its cost. 
In the future, we may not be able 
to obtain coverage at current levels, if at all, and our 
premiums may increase significantly on coverage that 
we maintain. 
Impairment evaluations of goodwill, intangible assets, investments or other 
long-lived assets could result in a reduction in our 
recorded asset values which could have a material 
adverse effect on our financial position and results of 
operation. 
We perform 
reviews of goodwill and indefinite-lived intangible assets on 
an annual basis, or more frequently if triggering events 
indicate a possible impairment. 
We test goodwill 
at the reporting unit level by comparing the carrying value of 
the net assets of the 
reporting unit, including goodwill, to the reporting unit's fair 
value. 
Similarly, we test indefinite 
-lived intangible assets by comparing 
the fair value of the assets to their carrying values. 
If the carrying values of goodwill or indefinite-lived intangible 
assets exceed their 
fair value, the goodwill or indefinite-lived intangible assets would 
be considered impaired. 
In addition, we perform a review of a 
definite-lived intangible asset or other long-lived 
asset when changes in circumstances or events indicate a possible 
impairment. 
If 
any impairment or related charge is warranted, 
then our financial position and results of operations could be 
materially affected. See 
Note 16 of Notes to Consolidated Financial Statements included 
in Item 8 of this Report. 
Disruption of critical information systems or material breaches 
in the security of our systems could adversely affect 
our business 
and our customer relationships, and subject us to fines or other 
regulatory actions. 
We rely on 
information technology systems to obtain, process, analyze, manage, 
transmit, and store electronic information in our 
day-to-day operations. 
We also rely 
on our technology infrastructure in all aspects of our business, including 
to interact with 
customers and suppliers, fulfill orders and bill, collect 
and make payments, ship products, provide support to customers, 
and fulfill 
contractual obligations. 
Our information technology systems are subject to potential 
disruptions, including significant network or 
power outages, cyberattacks, computer viruses, other malicious codes, 
and/or unauthorized access attempts, any of which, if 
successful, could result in data leaks or otherwise compromise 
our confidential or proprietary information and disrupt 
our operations. 
Security breaches could result in unauthorized disclosure 
of confidential information or personal data belonging to 
our employees, 
partners, customers or suppliers for which we may 
incur liability. 
Cybersecurity incidents, such as these, are becoming 
more 
sophisticated and frequent, and there can be no assurance 
that our protective measures will prevent security breaches that could 
have a 
significant impact on our business, reputation and financial 
results. 
We are subject 
to the data privacy and protection laws and regulations adopted 
by federal, state and foreign legislatures and 
governmental agencies in various countries in which we 
operate, including the EU General Data Protection Regulation. 
Implementing 
and complying with these laws and regulations may 
be more costly or take longer than we anticipate, or could 
otherwise affect our 
business operations. 
 
Breaches, cyber incidents and disruptions, or failure to 
comply with laws and regulations related to information security or 
privacy could result in legal claims or proceedings against us 
by governmental entities or individuals, significant 
fines, penalties or 
judgements, disruption of our operations, remediation 
requirements, changes to our business practices, and damage 
to our reputation. 
Therefore, a failure to monitor, mainta 
in or protect our information technology systems and data 
integrity effectively or to anticipate, 
plan for and recover from significant disruptions to 
these systems could have a material adverse effect on our 
business, results of 
operations or financial condition. 
 

 
16 
Our business depends on attracting and retaining qualified 
management and other key personnel. 
Due to the specialized and technical nature of our business, our 
future performance is dependent on our ability to attract, develop 
and retain qualified management, commercial, technical, 
and other key personnel. Competition for such personnel is intense, 
and we 
may be unable to continue to attract or retain such personnel. 
In an effort to mitigate such risks, the Company 
utilizes retention 
bonuses, offers competitive pay and maintains continuous 
succession planning, including for our senior executive officers. 
However, 
there can be no assurance that these mitigating factors 
will be adequate to attract or retain qualified management or other key 
personnel. 
Failure to retain key employees could also adversely affect 
our ability to complete the integration of the Combination. 
Increasing scrutiny and changing expectations from 
stakeholders with respect to our environmental, social and governance 
(“ESG”) practices may impose additional costs on us or expose 
us to new or additional risks. 
Companies across all industries are facing increasing 
scrutiny from stakeholders related to their ESG practices. 
Investor 
advocacy groups, certain institutional investors, investment 
funds, and other influential investors are also increasingly focused on 
ESG 
practices and in recent years have placed increasing 
importance on the implications and social cost of their investments. 
Regardless of 
the industry, investors’ 
increased focus and activism related to ESG and similar matters 
may impact access to capital, as investors may 
decide to reallocate capital or to not commit capital as a 
result of their assessment of a company’s 
ESG practices. 
We face pressures 
from certain stakeholders to prioritize and promote 
sustainable practices and reduce our carbon footprint. Our 
stakeholders may pressure us to implement ESG procedures 
or standards beyond those we have in place in order 
to continue engaging 
with us, to remain invested in us, or before they will make 
further investments in us. 
Additionally, we may 
face reputational 
challenges in the event our ESG procedures or standards do 
not meet the standards set by certain constituencies. 
We have adopted 
certain practices as highlighted in the Company’s 
Sustainability Report, including with respect to environmental stewardship. 
Further, as we work to align 
with the recommendations of the Financial Stability Board’s 
Task Force on 
Climate-related Financial 
Disclosures and the Sustainability Accounting Standards 
Board, we continue to expand our disclosures in these areas. 
This is 
consistent with our commitment to executing on a 
strategy that reflects the economic, social, and environmental 
impact we have on 
the world while advancing and complementing our 
business strategy. 
Our disclosures on these matters and standards we set for 
ourselves or a failure to meet these standards, may 
influence our reputation and the value of our brand. 
It is possible that our 
stakeholders might not be satisfied with our ESG efforts 
or the speed of their adoption. 
If we do not meet our stakeholders’ 
expectations, our business and/or our ability to access 
capital could be harmed. 
Any harm to our reputation resulting from setting 
these standards or our failure or perceived failure to meet 
such standards could adversely affect our business, financial 
performance, 
and growth. 
Additionally, adverse 
effects upon our customers’ industries related to 
the worldwide social and political environment, including 
uncertainty or instability resulting from climate change 
or biodiversity loss, changes in political leadership and environmental 
policies, 
changes in geopolitical-social views toward fossil fuels and 
renewable energy, 
concern about the environmental impact of climate 
change or biodiversity loss, and investors’ expectation 
s 
regarding ESG matters, may also adversely affect 
demand for our services. 
Any long-term material adverse effect on 
our customers or their industries could have a significant financial 
and operational adverse 
impact on our business. 
Terrorist 
attacks, other acts of violence or war, 
natural disasters, widespread public health crises or other uncommon 
global events 
may affect the markets in which we operate and 
our profitability which could adversely affect our liquidity, 
financial position and 
results of operations. 
Terrorist attacks, 
other acts of violence or war, natural 
disasters, widespread public health crises, including the 
ongoing COVID-
19 pandemic, or other uncommon global events may negatively 
affect our operations. 
There can be no assurance that there will not be 
terrorist attacks against the U.S. or other locations where we 
do business. 
Also, other uncommon global events such as earthquakes, 
hurricanes, fires and tsunamis cannot be predicted. 
Terrorist attacks, 
other acts of violence or armed conflicts, and natural disasters, which 
may be amplified by ongoing global 
climate change and biodiversity loss, may directly 
impact our physical facilities and/or those of our suppliers or customers. 
In 
addition, terrorist attacks or natural disasters may disrupt 
the global insurance and reinsurance industries with the result 
that we may 
not be able to obtain insurance at historical terms and 
levels, if at all, for all of our facilities. 
In addition, available insurance coverage 
may not be sufficient to cover all of the damage 
incurred or, if available, may be prohibitively 
expensive. 
Widespread public health 
crises could also disrupt operations of the Company, 
its suppliers and customers which could have a material adverse 
impact on our 
results of operations. 
For example, refer to “The COVID-19 pandemic and its impact 
on business and economic conditions have negatively affected 
our 
business, results of operations and financial condi 
tion and the extent and duration of those effects is uncertain,” 
included in this “Risk 
Factors” section. 
The consequences of terrorist attacks, other acts of violence 
or armed conflicts, natural disasters, widespread public 
health crises or other uncommon global events can 
be unpredictable, and we may not be able to foresee or 
effectively plan for these 
events, resulting in a material adverse effect 
on our business, results of operations or financial condition. 
 

 
17 
The COVID-19 pandemic and its impact on business and economic 
conditions have negatively affected our business, results 
of 
operations and financial condition and the extent and 
duration of those effects is uncertain. 
The COVID-19 pandemic that began in the first quarter 
of 2020 and the resulting impacts significantly disrupted the global 
economy and financial markets and adversely affected 
the Company’s operations as well as those 
of its suppliers and customers. 
The 
pandemic and its impacts adversely affected 
the Company’s results of operations 
and financial condition in 2020 and the adverse 
effects have continued into 2021. 
The Company initially experienced disruptions as a result of COVID-19 
at its China subsidiaries 
and subsequently throughout the rest of the business due 
to the global economic slowdown that ensued and continues. 
We have 
experienced, and may experience in the future, temporary 
site or facility closures at our own facilities or those of our 
customers in 
response to illness or government mandates in some of 
the jurisdictions in which we operate. 
Even in facilities that are not closed, we 
could be affected by reductions in employee 
availability and productivity, 
changes in operating procedures, and increased costs. 
The 
Company anticipates that its future results of operations may 
continue to be adversely impacted by COVID-19 until 
effective vaccines 
have been widely administered. 
In particular, the spread of COVID-19 
and efforts to contain the virus have: 
●
 
reduced the demand for our products and services as many 
customers have reduced production levels; 
●
 
driven declines in volume and net sales across all reportable 
segments; 
●
 
required us to adjust certain of our facility operating procedures 
and to take steps to reduce costs and preserve liquidity; 
and 
●
 
negatively affected the estimated fair value of 
certain of the Company’s reporting 
units or other indefinite-lived or long-lived 
assets, namely the Company’s 
Houghton and Fluidcare trademarks and tradename indefinite-lived 
intangible assets, such that 
their estimated fair values were less than their carrying 
values and required adjustments. 
These effects are likely to increase or become 
exacerbated the longer the crisis continues, 
and the pandemic in the future could 
(or, in some instances, could further): 
●
 
limit the availability and reduce the productivity of our 
employees; 
●
 
challenge our financial reporting systems and processes, internal 
control over financial reporting, and disclosure controls and 
procedures, including our ability to ensure that information 
required to be disclosed in our reports under the Exchange Act is 
recorded, processed, summarized and reported within the 
time periods specified in the SEC’s rules 
and forms, 
and that such 
information is accumulated and communicated to our 
management, including our chief executive officer 
and chief financial 
officer, to allow for timely 
decisions regarding required disclosure; 
●
 
present challenges as a result of travel restrictions and remote work 
arrangements, including, as further described in Item 9A 
of this Report, impacting the planning, execution and timing 
of the Company’s remediation 
and integration plan activities, 
including the implementation of new or enhanced business process 
and information technology general controls, as 
necessary, 
as well as impacting the timing of the Company’s 
on-going enterprise resource planning system implementations 
; 
●
 
increase our costs as a result of emergency 
measures that we may take or that may be imposed on us by regulatory 
authorities; 
●
 
cause a delay in customer payments or cause a deterioration 
of the credit quality of other counterparties that could 
result in 
credit losses or force both customer and supplier bankruptcies; 
●
 
cause delays and disruptions in the availability of and timely 
delivery of materials and components used in our operations; 
●
 
cause us to breach covenants in our existing credit 
facility, including 
covenants regarding our consolidated interest coverage 
ratio and consolidated net leverage ratio, or increase our 
cost of capital or make additional capital, including the refinancing 
of our existing credit facility, 
more difficult or available only on terms less favorable 
to us; 
●
 
impact our liquidity position and cost of and ability to access funds 
from financial institutions and capital markets; 
●
 
negatively affect the estimated fair values of the 
Company’s reporting units or other 
indefinite-lived or long-lived assets; and 
●
 
cause other risks to impact us, including the other risks described 
in this “Risk Factors” section. 
Although we have implemented business continuity 
and emergency response plans as well as health and 
safety measures to 
permit us to continue to provide services and products to customers 
and support our operations, there can be no assurance that the 
continued spread of COVID-19 and efforts to 
contain the virus (including, but not limited to, voluntary and 
mandatory quarantines, 
restrictions on travel, limiting gatherings of people, reduced 
operations and extended closures of 
many businesses and institutions) 
will not further impact our business, results of operations 
and financial condition. 
However, given the unprecedented 
and continually 
evolving developments with respect to this pandemic, 
the Company cannot, as of the date of this Report, reasonably 
estimate the full 
extent of the impact to its future results of operations or 
to the ability of it or its customers to resume more normal operations. 
A 
further prolonged outbreak or resurgence 
and period of continued restrictions on day-to-day life and business operations 
would likely 
result in volume declines and lower net sales into 2021 
periods as well. 
 

 
18 
The ultimate significance of COVID-19 impacts on our 
business will depend on, among other things, the extent and 
duration of 
the pandemic, the severity of the disease and the number 
of people infected with the virus, the development and continued uncertainty 
regarding availability, 
administration and long-term efficacy of a vaccine or 
other treatments, including on new strains or mutations of 
the virus, the longer-term effects on the 
economy, including market 
volatility, and the 
measures taken by governmental authorities and 
other third parties restricting day-to-day life and the 
length of time that such measures remain in place, as well as laws and 
other 
governmental programs implemented to address the pandemic or 
assist impacted businesses, such as fiscal stimulus and other 
legislation designed to deliver monetary aid and other relief. 
Epidemic diseases could negatively affect various 
aspects of our business, make it more difficult to 
meet our obligations to our 
customers, and could result in reduced demand from 
our customers. 
These could have a material adverse effect 
on our business, 
financial condition, results of operations, or cash flows. 
Our business could be adversely affected 
by the effects of a widespread outbreak of 
contagious disease, similar to the COVID-19 
impacts described above. 
A significant outbreak of contagious diseases in the human population 
could result in a widespread health 
crisis that could adversely affect the economies and 
financial markets of many countries, resulting in an economic 
downturn that could 
affect demand for our products and likely 
impact our operating results. 
To the extent that 
the Company’s customers and 
suppliers are 
materially and adversely impacted by a widespread 
outbreak of contagious disease, this could reduce the availability, 
or result in 
delays, of materials or supplies to or from the Company, 
which in turn could materially interrupt the Company’s 
business operations. 
We have identified 
material weaknesses in our internal control over financial reporting 
that could, if not remediated, result in 
material misstatements in our financial statements and in the 
inability of our independent registered public accounting 
firm to 
provide an unqualified audit opinion which could have a material 
adverse effect on us. 
As a public company, 
we are required to comply with the SEC’s rules 
implementing Sections 302 and 404 of the Sarbanes-Oxley 
Act of 2002, or the Sarbanes-Oxley Act, which require 
management to certify financial and other information in our quarterly 
and 
annual reports and provide an annual management report on 
the effectiveness of controls over financial reporting. 
As disclosed under “Item 9A. Controls and Procedures” 
of this Report, during the course of preparing our audited financial 
statements for the Company’s 
annual report on Form 10-K (the “2019 Form 10-K”), we, 
in conjunction with our independent 
registered public accounting firm, identified certain 
material weaknesses as of December 31, 2019. 
A material weakness is a 
deficiency, or combination 
of deficiencies, in internal control over financial reporting, 
such that there is a reasonable possibility that a 
material misstatement of annual or interim financial 
statements will not be prevented or detected on a timely 
basis. 
We identified 
certain deficiencies in our application of the principles associated 
with the criteria set forth by the Committee of 
Sponsoring Organizations of the Treadway 
Commission in Internal Control—Integrated Framework (2013) 
that management 
concluded constituted a material weakness. 
We did not 
design and maintain effective controls in response 
to the risks of material 
misstatement. 
Specifically, changes 
to existing controls or the implementation of new controls 
were not sufficient to respond to 
changes to the risks of material misstatement in financial 
reporting as a result of becoming a larger, 
more complex global organization 
due to the Combination. 
This material weakness also contributed to an additional material 
weakness as we did not design and 
maintain effective controls over the review 
of pricing, quantity and customer data to verify that revenue 
recognized was complete and 
accurate. 
During 2020, management began developing its full remediation 
plan and executing 
what will be a multi-step remediation process 
to completely and fully remediate its identified material weaknesses 
as further described in Item 9A of this Report. However, 
the 
Company has not yet remediated the previously identified 
material weakness over 
the review of pricing, quantity and customer data to 
verify that revenue recognized was complete and 
accurate as of December 31, 2020, and as a result, the Company 
also did not 
remediate the previously identified material weakness related 
to risk assessment. 
Until the remediation plans are deemed effective, 
we 
cannot assure you that our actions will adequately remediate 
these material weaknesses or that additional material weaknesses in 
our 
internal controls will not be identified in the future. 
Although the Company expects to be able to remedy these material 
weaknesses 
during 2021, it may be unable to do so due to the impact 
of the COVID-19 pandemic or for other reasons, in which case we 
would 
continue to be subject to the risk that a material misstatement 
of annual or interim financial statements will not be prevented 
or 
detected on a timely basis. 
Any failure to identify and correct material weaknesses in a 
timely manner could have a material adverse 
effect on the financial condition of the Company. 
As a result of these material weaknesses, management 
determined that both our disclosure controls and procedures and 
internal 
control over financial reporting were not effective 
as of December 31, 2020 and our independent registered public 
accounting firm 
likewise issued an opinion indicating that we had not maintained 
effective internal control over financial reporting 
as of December 31, 
2020. 
 

 
19 
Because these control deficiencies could have resulted 
in misstatements of interim or annual consolidated financial statements 
and 
disclosures that could have resulted in a material misstatement 
that would not be prevented or detected, we performed additional 
analysis and procedures to ensure that our consolidated 
financial statements presented in this Annual Report on Form 10-K were 
prepared in accordance with GAAP and fairly reflected 
our financial position and results of operations as of and 
for the year ended 
December 31, 2020. 
Subsequently, notwithstanding 
these material weaknesses, the Company has concluded that 
these control 
deficiencies did not result in a misstatement to the related 
balances and disclosures for the year ended December 
31, 2020. 
Our management, 
including our chief executive officer and chief financial 
officer, does not expect that 
our internal control over 
financial reporting will prevent all errors and all fraud. 
A control system, no matter how well designed and operated, 
can provide only 
reasonable, not absolute, assurance that the control 
system’s objectives will be met. 
Further, the design of a control system must 
reflect the fact that there are resource constraints, 
and the benefits of controls must be considered relative 
to their costs. 
Controls can 
be circumvented by the individual acts of some persons, 
by collusion of two or more people, or by management override 
of the 
controls. 
Over time, controls may become inadequate because of changes in 
circumstances or deterioration in the degree of 
compliance with policies or procedures may occur. 
Because of the inherent limitations in a cost-effective 
control system, 
misstatements due to error or fraud may occur and may 
not be detected. 
Item 1B. 
Unresolved Staff Comments.
 
None. 
Item 2. 
Properties.
 
Quaker Houghton’s corporate 
headquarters and a laboratory facility are located in 
its Americas segment’s Conshohocken, 
Pennsylvania location. 
The Company’s other principal 
facilities in its America’s segment 
are located in Detroit, Michigan; 
Middletown, Ohio; Dayton, Ohio; Strongsville, Ohio; 
Carrollton, Georgia; Zion, Illinois; Waterloo, 
Ontario; Monterrey, N.L., 
Mexico; Rio de Janeiro, Brazil and Sao Paulo, Brazil. 
The Company’s EMEA segment 
has principal facilities in Uithoorn, The 
Netherlands; Manchester, U.K.; Dortmund, 
Germany; Barcelona, Spain; Navarra, Spain; Karlshamn, Sweden; 
Tradate, Italy; and 
Turin, Italy. 
The Company’s Asia/Pacific segment 
operates out of its principal facilities located in Qingpu, 
China; Songjiang, China; 
Kolkata, India; Rayong, Thailand; Sydney, 
Australia; and Moorabbin, Australia. 
The Company’s Global Specialty 
Businesses 
segment operates out of its principal facilities in Aurora, 
Illinois; Santa Fe Springs, California; Batavia, New York; 
Zion, Illinois; and 
Coventry, U.K.. 
With the exception of the Conshohocken, 
Santa Fe Springs, Aurora, Karlshamn, Rayong, Coventry, 
and Sydney 
sites, which are leased, the remaining principal facilities are 
owned by the Company and, as of December 31, 
2020, were mortgage 
free. 
Quaker Houghton also leases sales, laboratory, 
manufacturing, and warehouse facilities in other locations.
 
Quaker Houghton’s principal 
facilities consist of various manufacturing, administrative, 
warehouse, and laboratory buildings. 
Substantially all of the buildings are of fire-resistant construction 
and are equipped with sprinkler systems. 
The Company has a 
program to identify needed capital improvements that 
are implemented as management considers necessary or desirable. 
Most 
locations have raw material storage tanks, ranging from 
1 to 200 at each location with capacities ranging from 1,000 
to 82,000 gallons, 
and processing or manufacturing vessels ranging in capacity 
from 8 to 29,000 gallons. 
Each of Quaker’s non-U.S. associated companies 
(in which it owns a 50% or less interest and has significant 
influence) owns or 
leases a plant and/or sales facilities in various locations 
, 
with the exception of Primex, Ltd. 
Item 3. 
Legal Proceedings.
 
The Company is a party to proceedings, cases, and requests for 
information from, and negotiations with, various claimants and 
Federal and state agencies relating to various matters, including 
environmental matters. 
For information concerning pending asbestos-
related litigation against an inactive subsidiary, 
certain environmental non-capital remediation costs and other 
legal-related matters, 
reference is made to Note 26 of Notes to Consolidated 
Financial Statements, included in Item 8 of this Report, which 
is incorporated 
herein by this reference. 
The Company is a party to other litigation which management currently 
believes will not have a material 
adverse effect on the Company’s 
results of operations, cash flow or financial condition. 
Item 4. 
Mine Safety Disclosures.
 
Not Applicable. 

 
 
 
20 
Item 4(a). 
Information about our
 
Executive Officers.
 
Set forth below is information regarding the executive 
officers of the Company, 
each of whom have been employed by the 
Company or by Houghton for at least five years, including 
the respective positions and offices with the Company 
(or Houghton) held 
by each over the respective periods indicated. 
Each of the executive officers, with the exception 
of Mr. Hostetter, 
is appointed 
annually to a one-year term. 
Mr. Hostetter is considered 
an executive officer in his capacity as principal accounting 
officer for 
purposes of this Item. 
Name, Age, and Present 
Position with the Company 
 
Business Experience During the Past Five 
Years 
and Period Served as an Officer 
 
 
Michael F. Barry, 
62 
Chairman of the Board, Chief Executive 
Officer, 
President and Director 
 
Mr. Barry, 
who has been employed by the Company since 1998, has served 
as 
Chairman of the Board since May 2009, in addition 
to his position as Chief 
Executive Officer and President held since October 
2008. 
He served as interim 
Chief Financial Officer from October through November 
2015. 
He served as Senior 
Vice President and Managing 
Director – North America from January 2006 to 
October 2008. 
He served as Senior Vice President 
and Global Industry Leader – 
Metalworking and Coatings from July through December 
2005. 
He served as Vice 
President and Global Industry Leader – Industrial Metalworking 
and Coatings from 
January 2004 through June 2005 and Vice 
President and Chief Financial Officer 
from 1998 to August 2004. 
Joseph A. Berquist, 49 
Senior Vice President, 
Global Specialty 
Businesses and Chief Strategy Officer 
Mr. Berquist, who has 
been employed by the Company since 1997, has served as 
Senior Vice President, 
Global Specialty Businesses and Chief Strategy Officer 
since 
August 2019. 
He served as Vice President and 
Managing Director – North America 
from April 2010 until July 2019. 
Jeewat Bijlani, 44 
Senior Vice President, 
Managing Director - Americas 
Mr. Bijlani has served as Senior 
Vice President, Managing 
Director - Americas 
since he joined the Company in August 2019. 
Prior to joining the Company, 
Mr. 
Bijlani served as President, Americas and Global Strategic 
Businesses of Houghton 
from March 2015 until July 2019. 
Prior to that role, he served as Senior Vice 
President M&A, Business Development and Strategic Planning 
to execute 
Houghton’s growth initiatives 
with key customers and in business segments from 
December 2011 to March 2015. 
Prior to joining Houghton, Mr. Bijlani 
served as a 
Director in the Private Equity Group at Celerant Consulting 
from March 2006 to 
November 2011 where he led 
strategic and business transformation engagements in 
the Chemicals and Manufacturing sector. 
Mary Dean Hall, 63 
Senior Vice President, 
Chief Financial Officer 
and Treasurer 
 
Ms. Hall, who has been employed by the Company since 
November 2015, has 
served as Senior Vice 
President, Chief Financial Officer and Treasurer 
since August 
2019. 
She served as Vice President, 
Chief Financial Officer and Treasurer 
from 
November 2015 until July 2019. 
Prior to joining the Company, 
Ms. Hall served as 
the Vice President and 
Treasurer of Eastman Chemical Company 
from April 2009 
until October 2015. 
Prior to that role, she held various senior-level financial 
positions of increasing responsibility with Eastman from 
1995 through 2009, 
including Treasurer, 
Vice President and Controller, 
and Vice President, Finance. 
Shane W. 
Hostetter, 39 
Vice President, Finance 
and Chief 
Accounting Officer 
Mr. Hostetter, 
who has been employed by the Company since July 2011, 
has served 
as Vice President, Finance 
and Chief Accounting Officer since August 
2019. 
He 
served as Global Controller and Principal Accounting Officer 
from September 2014 
until July 2019. 
Kym Johnson, 50 
Senior Vice President, 
Chief Human 
Resources Officer 
Ms. Johnson has served as Senior Vice 
President, Chief Human Resources Officer 
since she joined the Company in August 2019. 
Prior to joining the Company, 
Ms. Johnson served as Senior Vice 
President Global Human Resources of Houghton 
from June 2015 until July 2019. 
Prior to joining Houghton, she served as Vice 
President, Human Resources and Chief Human Resources Officer 
of FMC 
Corporation from July 2013 to October 2014. Prior 
to that role, she held various 
senior-level human resources roles with FMC from July 1992 
to October 2014, 
including Director, Global Talent 
Management and HR Director, Asia Pacific. 

 
 
 
21 
Name, Age, and Present 
Position with the Company 
 
Business Experience During the Past Five 
Years 
and Period Served as an Officer 
Dieter Laininger, 57 
Senior Vice President, 
Managing 
Director - Asia / Pacific 
Mr. Laininger, 
who has been employed by the Company since 1991, has served 
as 
Senior Vice Present, Managing 
Director – Asia / Pacific since August 2019. 
He 
served as Vice President 
and Managing Director – Asia / Pacific from April 2018 
until July 2019, in addition to his role as Vice 
President and Managing Director - 
South America, a position he assumed in January 
2013 and held until July 2019. 
Mr. Laininger also served 
as Vice President and Global 
Leader – Primary Metals, a 
position which he assumed in June 2011 
and held until July 2019. 
Wilbert Platzer, 
59 
Senior Vice President, 
Global Operations, 
Environmental Health & Safety (“EHS”) and 
Procurement 
Mr. Platzer, 
who has been employed by the Company since 1995, has served 
as 
Senior Vice President, 
Global Operations, EHS and Procurement since August 
2019. 
He served as Vice President, 
Global Operations, EHS and Procurement from 
April 2018 until July 2019. 
He served as Vice President and 
Managing Director – 
EMEA from January 2006 through March 2018. 
Dr. David Slinkman, 56 
Senior Vice President, 
Chief Technology 
Officer 
Dr. Slinkman 
has served 
as Senior 
Vice President, 
Chief Technology 
Officer since 
he joined 
the Company 
in August 2019. 
Prior to joining 
the Company, 
Dr. Slinkman 
served as 
Vice President 
of Technology 
of Houghton 
from March 
2012 until 
July 2019. 
Prior to joining 
Houghton, Dr. 
Slinkman served 
as Global 
Technology 
Leader of 
Nalco Chemical 
Company from 
2008 until 
2012. 
Prior to 
that role, 
he held various 
positions 
with Nalco 
from December 
1990 until 
2008 
including 
Manager, 
Research and 
Development 
for the finishing 
technologies 
group, which 
encompassed 
both metal 
working fluids 
and surface 
treatment 
products, 
and Technical 
Director 
for the paper 
chemicals 
group. 
Adrian Steeples, 60 
Senior Vice President, 
Managing 
Director – EMEA 
Mr. Steeples, who has been 
employed by the Company since 2010, has served as 
Senior Vice President, 
Managing Director – EMEA since August 2019. 
He served 
as Vice President and Managing 
Director – EMEA from April 2018 until July 2019. 
He served as Vice President 
and Managing Director - Asia/Pacific from July 2013 
through March 2018. 
Robert T. Traub, 
56 
Senior Vice President, 
General Counsel and 
Corporate Secretary 
Mr. Traub, 
who has been employed by the Company since 2000, has served 
as 
Senior Vice President, 
General Counsel and Corporate Secretary since August 2019. 
He served as Vice President, 
General Counsel and Corporate Secretary from April 
2015 until July 2019. 
He served as the Corporation’s 
General Counsel from March 
2012 through March 2015. 
He has also served 
as Director of Global Corporate 
Compliance since January 2009. 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
22 
PART 
II 
 
Item 5. 
Market for Registrant’s Common 
Equity, Related Stockholder Matters and 
Issuer Purchases of Equity Securities.
 
The Company’s common 
stock is listed on the New York 
Stock Exchange (“NYSE”) under the trading symbol KWR. 
Our Board 
declared cash dividends that totaled $1.56 per share 
of outstanding common stock or $27.8 million during 
the year ended December 
31, 2020 and $1.525 per share of outstanding common 
stock or $23.7 million during the year ended December 
31, 2019. 
In February 
and May 2020, our Board declared quarterly cash dividends 
of $0.385 per share of outstanding common stock, payable 
to shareholders 
of record in April 2020 and July 2020, respectively. 
Subsequently, our Board 
declared quarterly dividends of $0.395 per share of 
outstanding common stock in September and November 
2020, respectively, payable 
to shareholders of record in October 2020 and 
January 2021, respectively. 
We currently 
expect to continue to pay comparable cash dividends on a quarterly 
basis in the future. 
Future declaration of dividends and the establishment of future 
record dates and payment dates are subject to the final 
determination of 
our Board, and will be based on our future financial condition, 
results of operations, capital requirements, capital expenditure 
requirements, contractual restrictions, anticipated cash 
needs, business prospects, provisions of applicable law and other 
factors our 
Board may deem relevant. 
There are no restrictions that the Company believes are 
likely to materially limit the payment of future dividends. 
However, 
under the Credit Facility there are certain restrictions, including 
a limit on dividends paid not to exceed the greater of $50.0 
million 
annually and 20% of consolidated EBITDA so long as there 
is no default under the Credit Facility. 
Reference is made to the 
“Liquidity and Capital Resources” disclosure contained 
in Item 7 of this Report. 
As of January 15, 2021, 
17,853,463 shares of Quaker common stock were issued 
and outstanding and were held by 712 
shareholders of record. 
Each share of common stock is entitled to one vote per share. 
Reference is made to the information in Item 12 
of this Report under the caption “Equity Compensation 
Plans,” which is 
incorporated herein by this reference. 
The following table sets forth information concerning 
shares of the Company’s 
common stock acquired by the Company during 
the fourth quarter of 2020 for the period covered by 
this report: 
Issuer Purchases of Equity Securities 
(c) 
(d) 
Total 
Number of 
Approximate Dollar 
(a) 
(b) 
Shares Purchased 
Value of 
Shares that 
Total 
Number 
Average 
as part of Publicly 
May Yet 
be 
of Shares 
Price Paid 
Announced Plans 
Purchased Under the 
Period 
Purchased (1) 
Per Share (2) 
or Programs 
Plans or Programs (3) 
October 1 - October 31, 2020 
— 
$ 
— 
— 
$ 
86,865,026 
November 1 - November 30, 2020 
— 
$ 
— 
— 
$ 
86,865,026 
December 1 - December 31, 2020 
— 
$ 
— 
— 
$ 
86,865,026 
Total 
— 
$ 
— 
— 
$ 
86,865,026 
(1)
 
The Company did not acquire any shares of the Company’s 
common stock from employees during the fourth quarter 
of 2020. 
All shares that would be acquired from employees are related 
to the surrender of Quaker Chemical Corporation shares in 
payment of the exercise price of employee stock options 
exercised or for the payment of taxes upon exercise of 
employee 
stock options or the vesting of restricted stock. 
(2)
 
The Company did not acquire any shares of the Company’s 
common stock from employees during the fourth quarter 
of 2020. 
The price that would be paid for shares acquired from employees 
pursuant to employee benefit and share-based compensation 
plans is based on the closing price of the Company’s 
common stock on the date of exercise or vesting as 
specified by the plan 
pursuant to which the applicable option or restricted stock 
was granted. 
(3)
 
On May 6, 2015, the Board of Directors of the Company 
approved, and the Company announced, a share repurchase 
program, pursuant to which the Company is authorized 
to repurchase up to $100,000,000 of Quaker Chemical Corporation 
common stock (the “2015 Share Repurchase Program”). 
The 2015 Share Repurchase Program has no expiration date. 
There 
were no shares acquired by the Company pursuant 
to the 2015 Share Repurchase Program during the quarter ended 
December 31, 2020. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
23 
Stock Performance Graph: 
The following graph 
compares the cumulative 
total return (assuming 
reinvestment of dividends) 
from 
December 31, 2015 to December 31, 
2020 for (i) Quaker’s common stock, 
(ii) the S&P MidCap 400 Index (the 
“MidCap Index”), (iii) 
the S&P 400 
Materials Group Index 
(the “Materials 400 
Group Index”) and 
(iv) the S&P 
600 Materials Group 
Index (the “Materials 
600 Group Index”). 
The graph assumes the investment 
of $100 on December 
31, 2015 in each of 
Quaker’s common stock, 
the stocks 
comprising the 
MidCap Index and 
the Materials Group 
Index, respectively. 
The comparison of 
the Materials 400 
Group Index was 
added in 2020 to provide a closer comparison to the 
MidCap Index comparison. 
 
 
12/31/2015 
12/31/2016 
12/31/2017 
12/31/2018 
12/31/2019 
12/31/2020 
Quaker 
$ 
100.00 
$ 
168.15 
$ 
200.14 
$ 
237.98 
$ 
222.13 
$ 
345.21 
MidCap Index 
100.00 
120.74 
140.35 
124.80 
157.49 
179.00 
Materials 400 Group Index 
100.00 
137.25 
166.82 
132.84 
160.57 
177.66 
Materials 600 Group Index 
100.00 
154.70 
170.04 
132.20 
159.40 
195.55 
Item 6. 
Selected Financial Data.
 
The Company has omitted the table for selected 
financial data pursuant to the SEC Final Rule Release Nos. 33 
-10890, which 
among other revisions, amends certain disclosure requirements required 
by Regulation S-K relating to selected financial data (Item 
301) and supplementary financial information (Item 302). 
The Company has early adopted the guidance on an Item-by-Item 
basis and 
eliminated Items 301 and 302 in its consolidated financial 
statements. 
 
 

 
24 
Item 7. 
Management’s Discussion and Analysis 
of Financial Condition and Results of Operations.
 
As used in this Annual Report on Form 10-K (the “Report”), 
the terms “Quaker Houghton”, the “Company”, “we”, 
and “our” 
refer to Quaker Chemical Corporation (doing business as Quaker 
Houghton), its subsidiaries, and associated companies, unless the 
context otherwise requires. 
The term Legacy Quaker refers to the Company prior to 
the closing of its combination with Houghton 
International, Inc. (“Houghton”) (herein referred 
to as the “Combination”) on August 1, 2019. 
Throughout the Report, all figures 
presented, unless otherwise stated, reflect the results of 
operations of the combined company for the year ended 
December 31, 2020, 
for the year ended December 31, 2019 includes the 
result of Legacy Quaker plus five months of Houghton’s 
operations post-closing of 
the Combination on August 1, 2019, and for the year ended 
December 31, 2018, the results only of Legacy Quaker. 
Executive Summary 
Quaker Houghton is a global leader in industrial process 
fluids. 
With a presence around the world, 
including operations in over 
25 countries, our customers include thousands of the world’s 
most advanced and specialized steel, aluminum, automotive, aerospace, 
offshore, can, mining, and metalworking 
companies. 
Our high-performing, innovative and sustainable solutions are 
backed by best-
in-class technology, 
deep process knowledge, and customized services. 
Quaker Houghton is headquartered in Conshohocken, 
Pennsylvania, located near Philadelphia in the U.S. 
Overall, the Company’s 
2020 performance, like most other companies in the 
world, was negatively impacted by the COVID-19 
pandemic and its impact on the global economy, 
including 
most of the Company’s 
customers. 
However, the Company’s 
acquisition 
activity in late 2019, including the Houghton Combination 
and the Norman Hay acquisition, drove a 25% increase in 2020 net 
sales to 
$1,417.7 
million compared to $1,133.5 million in 2019. 
Excluding net sales from acquisitions, current year net 
sales would have 
declined approximately 11% primarily 
due to a 9% decrease in sales volumes associated with the negative 
impacts of COVID-19 on 
global production levels throughout each of the Company’s 
segments. 
Similar to net sales, the Company’s 
gross profit and selling, 
general and administrative expenses (“SG&A”) also increased 
due to the full year inclusion of Houghton and Norman 
Hay, but both 
also benefited from the realization of cost savings associated with 
synergies achieved with the Combination as well 
as the impact of 
cost saving measures put in place to help offset 
the impacts of COVID-19. 
The Company’s 2020 reported operating 
income of $59.4 
million increased compared to $46.1 million in 2019. 
Excluding all one-time costs and other non-core items that largely 
related to the 
Combination and Norman Hay in each period, the Company’s 
non-GAAP operating income of $134.0 million 
increased 10% 
compared to $122.0 million in 2019, primarily due to 
the net sales increases and cost synergies and savings 
mentioned above. 
Further 
details of the Company’s 
consolidated operating performance are discussed in the Company’s 
Consolidated Operations Review, 
in the 
Operations section of this Item, below. 
The Company’s net income 
and earnings per diluted share of $39.7 million and $2.22 in 
2020, respectively, increased 
compared 
to $31.6 million and $2.08 per diluted share, respectively, 
in 2019. 
Excluding all one-time costs and other non-core items that largely 
related to the Combination and Norman Hay in each 
period, the Company’s current 
year non-GAAP net income and non-GAAP 
earnings per diluted share were $85.2 million and $4.78, 
respectively, compared 
to $88.7 million and $5.83, respectively, 
in 2019. 
The increase in the Company’s current 
year reported earnings drove a 28% higher adjusted EBITDA of 
$222.0 million compared to 
$173.1 million in 2019, primarily due to the Houghton 
and Norman Hay acquisitions as well as the benefit of costs savings 
associated 
with the Combination, 
partially offset by the negative impacts of COVID-19. 
See the Non-GAAP Measures section of this Item, 
below. 
The Company’s 2020 
operating performance in each of its four reportable segments: (i) 
Americas; (ii) Europe, Middle East and 
Africa (“EMEA”); (iii) Asia/Pacific; and (iv) Global Specialty 
Businesses, reflect similar drivers to that of its consolidated 
performance. 
Each segment’s net sales benefited 
from a full year of Houghton and the Company’s 
Global Specialty Businesses 
segment also benefited from a full year of Norman Hay. 
Without the inclusion of Houghton and 
Norman Hay, net sales would 
have 
been lower in all segments compared to the prior year, 
primarily driven by declines in volume primarily due to the 
negative impacts of 
COVID-19 on the Company’s 
end markets. 
As reported, all of the Company’s 
segment operating earnings were higher compared to 
2019 because of the inclusion of a full year of Houghton and 
Norman Hay as well as cost synergies achieved 
with the Combination 
and other cost savings actions taken due to COVID-19, 
partially offset by the negative impacts of COVID-19 
on global sales volumes. 
Additional details of each segment’s 
operating performance are further discussed in the Company’s 
reportable segments review, 
in the 
Operations section of this Item, below. 
The Company generated net operating cash flow of $178.4 
million in 2020 compared to $82.4 million in 2019. 
The 117% 
increase in net operating cash flow year-over 
-year was primarily driven by the inclusion of a full year of earnings 
from Houghton and 
Norman Hay, as well as 
higher operating cash flow due to changes in working 
capital. 
The key drivers of the Company’s 
operating 
cash flow 
and overall liquidity are further discussed in the Company’s 
Liquidity and Capital Resources section of this Item, below 
. 
Overall, the Company’s 
2020 results reflect the fact that the negative impacts of COVID-19 
were partially offset by the positive 
impacts of a full year of Houghton and Norman Hay performance 
, 
Combination synergies and cost savings actions 
. 
The Company’s 
performance showed a good quarterly growth trend across the 
globe beginning after the second quarter of 2020, during 
which the 
impacts of COVID-19 were most severe, indicating 
a gradual improvement in the Company’s 
end markets and continued market share 
gains. 
Despite these challenges, the Company was able to generate significant 
net operating cash flow in 2020, continue to pay its 
regular dividends, pay down its debt above its required commitments 
, 
and continue to execute its integration plans for the 
Combination. 

 
25 
The global economic slowdown and other impacts due 
to COVID-19 posed an unprecedented challenge in 2020, but the 
Company successfully navigated this downturn, demonstrating 
its ability to respond quickly to changing market conditions and 
deliver 
on the benefits it anticipated from the Combination 
with Houghton. 
In 2020, the Company continued to service and supply its 
customers despite very difficult economic 
conditions, it continued to gain share in the market, it completed 
a significant part of the 
integration activities, and realized $58 million of cost 
synergies which exceeded the original estimate of $35 
million. 
The Company 
also made recent bolt-on acquisitions which are expected 
to contribute towards earnings growth in 2021 and, even with those 
acquisitions, the Company reduced its net debt by 
12% or $94 million during 2020. 
As the Company looks forward, it 
expects some 
short-term headwinds from higher raw material costs and 
lower than expected volumes in the automotive market due 
to the 
semiconductor shortage. 
However, the Company expects 2021 
to result in a step change in its profitability from 2020 as the Company 
completes its integration cost synergies, continues 
to take further share in the marketplace, benefits from a projected 
gradual rebound 
in demand, and sees the positive impact of its recent acquisit 
ions. 
Impact of COVID-19
 
In early 2020, the global outbreak of COVID-19 
negatively impacted all locations where the Company 
does business. 
Although 
the Company has now operated during several quarters 
in this COVID-19 environment, the full extent of the outbreak 
and related 
business impacts remains 
uncertain and volatile, and therefore the full extent to which COVID-19 
may impact the Company’s future 
results of operations or financial condition is uncertain. 
This outbreak has significantly disrupted the operations 
of the Company and 
those of its suppliers and customers. 
The Company has experienced significant volume declines and 
lower net sales as further 
described in this section, initially at its China subsidiaries in the 
first quarter of 2020 and, beginning in late March continued 
throughout the rest of its business due to the global economic 
slowdown brought on by COVID-19. 
Management continues to 
monitor the impact that the COVID-19 pandemic is having 
on the Company, 
the overall specialty chemical industry and the 
economies and markets in which the Company operates. 
 
Given the speed and frequency of the continuously evolving developments 
with respect to this pandemic, the Company cannot, as 
of the date of this Report, reasonably estimate the 
magnitude or the full extent of the impact to its future results of 
operations or to the 
ability of it or its customers to resume more normal 
operations, even as certain restrictions are lifted. 
The prolonged pandemic and a 
resurgence of the outbreak, and continued 
restrictions on day-to-day life and business operations may result 
in volume declines and 
lower net sales in future periods as compared to pre-COVID-19 
levels. 
To the extent that the Company’s 
customers and suppliers 
continue to be significantly and adversely impacted by 
COVID-19, this could reduce the availability, 
or result in delays, of materials 
or supplies to or from the Company, 
which in turn could significantly interrupt the Company’s 
business operations. 
Given this 
ongoing uncertainty, 
the Company cautions that its future results of operations could be significantly 
adversely impacted by COVID-
19. 
Further, management continues to 
evaluate how COVID-19-related circumstances, such as remote 
work arrangements, illness or 
staffing shortages and travel restrictions have affected 
financial reporting processes and systems, internal control 
over financial 
reporting, and disclosure controls and procedures. 
While the circumstances have presented and are expected 
to continue to present 
challenges, and have necessitated additional time 
and resources to be deployed to sufficiently address the 
challenges brought on by the 
pandemic, at this time, except as otherwise noted in 
Item 9A of this Report, management does not believe that 
COVID-19 has had a 
material impact on financial reporting processes, internal 
controls over financial reporting, or disclosure controls and procedures. 
For 
additional information regarding the potential impact of COVID-19, 
see Item 1A of Part I of this Report.
 
The Company’s top 
priority is, and especially during this pandemic remains, to protect the health 
and safety of its employees and 
customers, while working to ensure business continuity 
to meet customers’ needs:
 
●
 
Our People
 
– The Company has taken steps to protect the health and wellbeing 
of its people in affected areas through various 
actions, including enabling work at home where needed and 
possible, and employing social distancing standards, 
implementing travel restrictions where applicable, enhancing 
onsite hygiene practices, and instituting visitation restrictions 
at 
the Company’s facilities. 
The Company does not expect that it will incur material 
expenses implementing health and safety 
policies for employees, contractors, and customers.
 
 
●
 
Our Operations
 
– Currently, all of 
the Company’s 31 production 
facilities worldwide are open and operating and are deemed 
as essential businesses in the jurisdictions where they are 
operating. 
The Company believes that to date it has been able to 
meet the needs of all its customers across the globe 
despite the current economic challenges.
 
 
●
 
Our Business Conditions
 
– The Company’s second 
half of 2020 showed solid improvement over the first half, 
which was 
consistent with expectations that April and May would 
be the worst months of the year and that the Company 
would show 
gradual quarterly improvement sequentially throughout 
the remainder of the year. 
However, demand still remained lower 
than pre-COVID-19 levels as many customers maintained 
reduced production levels through the end of 2020. 
Excluding 
Houghton and Norman Hay net sales, all four of the Company’s 
reportable segments showed declines in net sales due to 
COVID-19 during 2020 compared to the prior year, 
with the Americas and EMEA being the most impacted and 
Asia/Pacific 
being the least impacted. 
The Company currently expects that the impact from COVID-19 
will gradually improve each 
quarter in 2021 subject to the effective containment 
of the virus and successful distribution of a vaccine. 
However, the 
incidence of reported cases of COVID-19 appears to 
be again increasing in several geographies where we have 
significant 

 
26 
operations and it remains highly uncertain as to how long 
the global pandemic and related economic challenges will last and 
when our customers’ businesses will recover.
 
 
●
 
Our Actions
 
– The Company took various actions to temporarily conserve 
cash and reduce costs during 2020. 
Some of these 
actions during 2020 included eliminating all discretionary 
expenditures, delaying or freezing salary increases where legally 
permitted, reducing executives’ salaries for a period of 
time, lowering 2020 planned capital expenditures by approximately 
30%, and accelerating and fine-tuning the Company’s 
integration plans. 
These temporary initiatives were designed and 
implemented so that the Company could successfully manage through 
the challenging COVID-19 situation while continuing 
to protect the health of its employees, meet customers’ needs, 
maintain the Company’s 
long-term competitive advantages and 
above-market growth, and enable it to continue to 
effectively integrate Houghton. 
While the actions taken in 2020 to protect 
our workforce, to continue to serve our customers with excellence 
and to conserve cash and reduce costs, have been effective 
thus far, further actions to respond 
to the pandemic and its effects may be necessary as conditions 
continue to evolve.
 
Critical Accounting Policies and Estimates 
Quaker Houghton’s discussion 
and analysis of its financial condition and results of operations 
are based upon its consolidated 
financial statements which have been prepared in accordance with 
accounting principles generally accepted in the United States (“U.S. 
GAAP”). 
The preparation of these financial statements requires the Company 
to make estimates and judgments that affect the 
reported amounts of assets, liabilities, revenues and expenses, and 
related disclosure of contingent assets and liabilities. 
On an 
ongoing basis, the Company evaluates its estimates, including 
those related to customer sales incentives, product returns, bad 
debts, 
inventories, property, 
plant and equipment (“PP&E”), investments, goodwill, intangible 
assets, income taxes, business combinations, 
restructuring, incentive compensation plans (including 
equity-based compensation), pensions and other postretirement benefits, 
contingencies and litigation. 
Quaker Houghton bases its estimates on historical experience 
and on various other assumptions that are 
believed to be reasonable under such circumstances, the 
results of which form the basis for making judgments about the 
carrying 
values of assets and liabilities that are not readily apparent 
from other sources. 
However, actual results may differ 
from these 
estimates under different assumptions or 
conditions. 
Quaker Houghton believes the following critical accounting 
policies describe the more significant judgments and 
estimates used 
in the preparation of its consolidated financial statements: 
Accounts receivable and inventory exposures:
 
Quaker Houghton establishes allowances for doubtful accounts 
for estimated 
losses resulting from the inability of its customers to 
make required payments. 
If the financial condition of the Company’s 
customers 
were to deteriorate, resulting in an impairment of their 
ability to make payments, additional allowances may be required. 
As part of 
our terms of trade, we may custom manufacture products 
for certain large customers and/or may ship products 
on a consignment basis. 
Further, a significant portion of our 
revenue is derived from sales to customers in industries where 
companies have experienced past 
financial difficulties. 
If a significant customer bankruptcy occurs, then we must judge 
the amount of proceeds, if any, 
that may 
ultimately be received through the bankruptcy or liquidation 
process. 
These matters may increase the Company’s 
exposure should a 
bankruptcy occur, and may require 
a write down or a disposal of certain inventory as well as the failure 
to collect receivables. 
Reserves for customers filing for bankruptcy protection 
are established based on a percentage of the amount of receivables 
outstanding 
at the bankruptcy filing date. 
However, initially establishing 
this reserve and the amount thereof is dependent on the Company’s 
evaluation of likely proceeds to be received from the 
bankruptcy process, which could result in the Company 
recognizing minimal or 
no reserve at the date of bankruptcy. 
We generally reserve 
for large and/or financially distressed customers on 
a specific review basis, 
while a general reserve is maintained for other customers 
based on historical experience. 
The Company’s consolidated 
allowance for 
doubtful accounts was $13.1 million and $11.7 
million as of December 31, 2020 and 2019, respectively. 
The Company recorded 
expense to increase its provision for doubtful accounts by 
$3.6 million, $1.9 million and $0.5 million for the years 
ended December 
31, 2020, 2019 and 2018, respectively. 
Changing the amount of expense recorded to the Company’s 
provisions by 10% would have 
increased or decreased the Company’s 
pre-tax earnings by $0.4 million, $0.2 million and $0.1 million 
for the years ended December 
31, 2020, 
2019 and 2018, 
respectively. 
See Note 13 of Notes to Consolidated Financial Statements in Item 
8 of this Report. 
Environmental and litigation reserves:
 
Accruals for environmental and litigation matters are 
recorded when it is probable that a 
liability has been incurred and the amount of the liability 
can be reasonably estimated. 
Environmental costs and remediation costs are 
capitalized if the costs extend the life, increase the 
capacity or improve the safety or efficiency of the property 
from the date acquired 
or constructed, and/or mitigate or prevent contamination 
in the future. 
Estimates for accruals for environmental matters are based on a 
variety of potential technical solutions, governmental regulations 
and other factors, and are subject to a wide range of potential 
costs 
for remediation and other actions. 
A considerable amount of judgment is required in determining 
the most likely estimate within the 
range of total costs, and the factors determining this judgment 
may vary over time. 
Similarly, reserves for 
litigation and similar 
matters are based on a range of potential outcomes and 
require considerable judgment in determining the 
most probable outcome. 
If 
no amount within the range is considered more probable 
than any other amount, the Company accrues the lowest amount 
in that range 
in accordance with generally accepted accounting principles. 
See Note 26 of Notes to Consolidated Financial Statements in 
Item 8 of 
this Report. 

 
27 
Realizability of equity investments:
 
The Company holds equity investments in various foreign 
companies where it has the 
ability to influence, but not control, the operations of the 
entity and its future results. 
The Company would record an impairment 
charge to an investment if it concluded that a 
decline in value that was other than temporary occurred. 
Adverse 
changes in market 
conditions, poor operating results of underlying investments, 
devaluation of foreign currencies or other events or circumstances 
could 
result in losses or an inability to recover the carrying value 
of the investments, potentially leading to an impairment charge 
in the 
future. 
The carrying amount of the Company’s 
equity investments as of December 31, 2020 was $95.8 million, 
which included four 
investments: $19.4 million for a 32% interest in Primex, Ltd. 
(Barbados); $7.8 million for a 50% 
interest in Nippon Quaker Chemical, 
Ltd. (Japan); $0.3 million for a 50% interest in Kelko 
Quaker Chemical, S.A. (Panama); and $68.3 million for a 50% interest 
in Korea 
Houghton Corporation (Korea). 
The Company also has a 50% interest in a Venezuelan 
affiliate, Kelko Quaker Chemical, S.A 
(Venezuela). 
Due to heightened foreign exchange controls, deteriorating 
economic circumstances and other restrictions in Venezuela, 
during the third quarter of 2018 the Company concluded that it no 
longer had significant 
influence over this affiliate. 
Prior to this 
determination, the Company historically accounted 
for this affiliate under the equity method. 
As of December 31, 2020 and 2019, the 
Company had no remaining carrying value for its investment 
in Venezuela. 
See Note 17 of Notes to Consolidated Financial 
Statements in Item 8 of this Report. 
Tax 
exposures, uncertain tax positions and valuation 
allowances:
 
Quaker Houghton records expenses and liabilities for taxes 
based on estimates of amounts that will be determined as deductible 
in tax returns filed in various jurisdictions. 
The filed tax returns 
are subject to audit, which often occur 
several years subsequent to the date of the financial statements. 
Disputes or disagreements may 
arise during audits over the timing or validity of certain 
items or deductions, which may not be resolved for extended 
periods of time. 
The Company also evaluates uncertain tax positions on 
all income tax positions taken on previously filed tax returns or 
expected to be 
taken on a future tax return in accordance with FIN 48, 
which prescribes the recognition threshold and measurement attributes 
for 
financial statement recognition and measurement of tax 
positions taken or expected to be taken on a tax return 
and, also, whether the 
benefits of tax positions are probable or if they will be more 
likely than not to be sustained upon audit based upon the 
technical merits 
of the tax position. 
For tax positions that are determined to be more likely than not to 
be sustained upon audit, the Company 
recognizes the largest amount of benefit that 
is greater than 50% likely of being realized upon ultimate 
settlement in the financial 
statements. 
For tax positions that are not determined to be more 
likely than not sustained upon audit, the Company does not recognize 
any portion of the benefit in its financial statements. 
In addition, the Company’s 
continuing practice is to recognize interest and/or 
penalties related to income tax matters in income tax expense. 
Also, the Company nets its liability for unrecognized tax benefits 
against deferred tax assets related to net operating 
losses or other tax credit carryforward on the basis that the uncertain 
tax position is 
settled for the presumed amount at the balance sheet 
date. 
Quaker Houghton also records valuation allowances 
when necessary to reduce its deferred tax assets to the amount 
that is more 
likely than not to be realized. 
While the Company has considered future taxable income 
and assesses the need for a valuation 
allowance, in the event Quaker Houghton were 
to determine that it would be able to realize its deferred tax assets in the future 
in 
excess of its net recorded amount, an adjustment to 
the deferred tax asset would increase income in the period 
such determination was 
made. 
Likewise, should the Company determine that it would not be able 
to realize all or part of its net deferred tax assets in the 
future, an adjustment to the deferred tax asset would be 
charged to income in the period such determination was made. 
Both 
determinations could have a material impact on the Company’s 
financial statements. 
In 2017, the U.S. government enacted comprehensive 
tax legislation commonly referred to as “U.S. Tax 
Reform” 
which 
implemented significant changes, particularly impacting 
taxation for non-U.S. earnings and dividends from certain 
foreign 
subsidiaries. 
Based on interpretations and assumptions the Company 
believes to be reasonable with regard to various uncertainties 
and ambiguities in the application of certain provisions 
of U.S. Tax Reform 
and subsequent to numerous temporary regulations, 
notices, and other formal guidance published by the Internal Revenue 
Service (“I.R.S.”), 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. 
It is 
possible that the I.R.S. could issue subsequent guidance 
or take positions on audit that differ from the Company’s 
interpretations and 
assumptions. 
The Company currently believes that subsequent guidance 
or interpretations made by the I.R.S. will not be materially 
different from the Company’s 
application of the provisions of U.S. Tax 
Reform and would not have a material adverse effect on 
the 
Company’s tax liabilities, 
earnings, or financial condition. 
Pursuant to U.S. Tax 
Reform, the Company recorded a $15.5 million transition 
tax liability for U.S. income taxes on the 
undistributed earnings of non-U.S. subsidiaries. 
As of December 31, 2020, $7.0 million in installment have 
been paid with the 
remaining $8.5 million to be paid through installments 
in future years. 
However, the Company may also be subject 
to other taxes, 
such as withholding taxes and dividend distribution 
taxes, if these undistributed earnings are ultimately remitted to 
the U.S. 
As of 
December 31, 2020, 
the Company has a deferred tax liability of $5.9 million, which 
primarily represents the estimate of the non-U.S. 
taxes the Company will incur to remit certain previously taxed 
earnings to the U.S. 
It is the Company’s current 
intention to reinvest 
its future undistributed earnings of non-U.S. subsidiaries 
to support working capital needs and certain other growth 
initiatives outside 
of the U.S. 
The amount of such undistributed earnings at December 31, 2020 
was approximately $322.6 million. 
Any tax liability 
which might result from ultimate remittance of these 
earnings is expected to be substantially offset by foreign 
tax credits (subject to 
certain limitations). 
It is currently impractical to estimate any such incremental 
tax expense. 
See Note 10 of Notes to Consolidated 
Financial Statements in Item 8 of this Report. 

 
28 
Goodwill and other intangible assets:
 
The Company accounts for business combinations und 
er the acquisition method of 
accounting. 
This method requires the recording of acquired assets, including 
separately identifiable intangible assets, at their 
acquisition date fair values. 
Any excess of the purchase price over the estimated fair value of 
the identifiable net assets acquired is 
recorded as goodwill. 
The determination of the estimated fair value of assets acquired 
requires management’s judgment 
and often 
involves the use of significant estimates and assumptions, 
including assumptions with respect to future cash inflows 
and outflows, 
discount rates, royalty rates, asset lives and market multiples, among 
other items. 
When necessary, the Company 
consults with 
external advisors to help determine fair value. 
For non-observable market values, the Company may determine 
fair value using 
acceptable valuation principles, including the excess earnings, 
relief from royalty, 
lost profit or cost methods. 
The Company amortizes definite-lived intangible assets on 
a straight-line basis over their useful lives. 
Goodwill and intangible 
assets that have indefinite lives are not amortized and are 
required to be assessed at least annually for impairment. 
The Company 
completes its annual goodwill and indefinite lived intangible 
asset impairment test during the fourth quarter of each 
year, or more 
frequently if triggering events indicate a possible impairment. 
In completing a quantitative impairment test, the Company compares 
the reporting units’ or indefinite lived intangible assets fair 
value to their carrying value, primarily based on future discounted 
cash 
flows, in order to determine if an impairment charge 
is warranted. 
The estimates of future discounted cash flows involve considerable 
management judgment and are based upon certain significant 
assumptions. 
These assumptions include the weighted average cost of 
capital (“WACC”) 
as well as projected revenue growth rates and operating 
income, which result in estimated EBITDA and EBITDA 
margins. 
As of March 31, 2020, the Company evaluated the initial impact 
of COVID-19 on the Company’s 
operations, as well as the 
volatility and uncertainty in the economic outlook as a 
result of COVID-19, to determine if this indicated it was more likely 
than not 
that the carrying value of any of the Company’s 
indefinite-lived or long-lived assets was not recoverable. 
The Company considered 
the negative effect of COVID-19 on the Company’s 
operations and, at the time, the impact it expected to have 
on its full year 2020 
results in evaluating if a triggering event was present for 
one or more of the Company indefinite-lived or long-lived 
assets and, also, 
the Company took into consideration the carrying value 
and estimated fair value for each of its assets. 
The Company concluded that 
the impact of COVID-19 did not represent a triggering 
event as of March 31, 2020 with regards to any of the Company’s 
indefinite-
lived and long-lived assets, except for the Company’s 
Houghton and Fluidcare trademarks 
and tradename indefinite-lived intangible 
assets. 
Given the relatively short period of time between the 
fair value determination of the acquired Houghton and Fluidcare 
trademarks 
and tradename intangible assets as of the closing of the 
Combination on August 1, 2019, and the 2019 annual impairment testing date 
of October 1, the Company’s 
2019 annual impairment assessment concluded that 
the $242.0 million carrying value of acquired 
Houghton and Fluidcare trademarks and tradename intangible 
assets generally approximated fair value, with excess fair 
value of less 
than 5%. 
Because of the previously concluded relatively narrow gap 
between its fair value and its carrying value, the Company 
concluded in the first quarter of 2020 that the expected 
current year impact from COVID-19 on the Company’s 
net sales represented a 
triggering event. 
As a result of the conclusion, the Company completed an interim 
quantitative indefinite-lived intangible asset 
impairment assessment as of March 31, 2020. 
The determination of estimated fair value of the Houghton 
and Fluidcare trademarks 
and tradename intangible assets was based 
on a relief from royalty valuation method which requires 
management’s judgment 
and often involves the use of significant estimates 
and assumptions, including assumptions with respect to 
the WACC 
and royalty rates, as well as revenue growth rates 
and terminal 
growth rates. 
In completing the interim quantitative impairment assessment as of March 
31, 2020, the Company used a WACC 
assumption of approximately 10% as well as current year 
forecasted net sales and management’s 
estimates with respect to future net 
sales growth 
rates specific to legacy Houghton’s 
net sales. 
As a result of an increase in the WACC 
assumption as of March 31, 2020, 
compared to the prior year fourth quarter annual impairment 
assessment, and the significant decline in current year projected 
legacy 
Houghton net sales due to the impact of COVID-19, 
the Company concluded that the estimated fair values of these intangible 
assets 
were less than their carrying values and that an 
impairment charge to write down their carrying values 
to their estimated fair values 
was warranted. 
This resulted in a first quarter of 2020 non-cash impairment 
charge of $38.0 million for these indefinite-lived 
intangible assets, primarily related to the Houghton trademarks 
and tradename. 
The book value of these assets as of December 31, 
2020 was $204.0 million. 
The Company’s consolidated 
goodwill at December 31, 2020 and 2019 was $631.2 
million and $607.2 million, respectively. 
The 
Company completed its annual impairment assessment over 
goodwill during the fourth quarter of 2020, and no impairment 
charges 
were warranted. 
Furthermore, the estimated fair value of each of the Company’s 
reporting units substantially exceeded their carrying 
value, with none of the Company’s 
reporting units at risk for failing the goodwill impairment test. 
The Company used a WACC 
assumption for each of its reporting units of approximately 
9.5%, and this assumption would have had to increase 
by approximately 
59%, or 6 percentage points, before any of the Company’s 
reporting units would be considered potentially impaired. 
Separately, 
the 
Company’s assumption 
of future and projected EBITDA margins by reporting 
unit would have had to decrease by more than 
approximately 75% 
before any of the Company’s 
reporting units would be considered potentially impaired. 
The Company’s 
consolidated indefinite-lived intangible assets at December 
31, 2020 and 2019 were $205.1 million and $243.1 million, 
respectively. 
The Company completed its annual indefinite lived 
intangible asset impairment assessment during the fourth quarter 
of 2020, and 
determined that no impairment charge was 
warranted. 
The Company’s impairment assessment 
concluded that the $204.0 million 
carrying value of acquired Houghton and Fluidcare 
trademarks and tradename intangible assets exceeded fair value 
by approximately 
18%. 
See Note 16 of Notes to Consolidated Financial Statements in 
Item 8 of this Report. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
29 
Pension and Postretirement benefits:
 
The Company provides certain defined benefit pension 
and other postretirement benefits 
to current employees, former employees and retirees. 
Independent actuaries, in accordance with U.S. GAAP, 
perform the required 
valuations to determine benefit expense and, if necessary, 
non-cash charges to equity for additional minimum 
pension liabilities. 
Critical assumptions used in the actuarial valuation include 
the weighted average discount rate, which is based on applicable 
yield 
curve data, 
including the use of a split discount rate (spot-rate approach) 
for the U.S. plans and certain foreign plans, rates of increase 
in compensation levels, and expected long-term rates of 
return on assets. 
If different assumptions were used, additional 
pension 
expense or charges to equity might be required. 
The Company had two noncontributory U.S. pension plan 
s, one of which (the “Legacy Quaker U.S. Pension Plan”) had 
a 
November 30 year-end and a measurement date of December 
31. 
As previously disclosed, the Company began the process of 
terminating the Legacy Quaker U.S. Pension Plan during 
the fourth quarter of 2018. 
During the third quarter of 2019, the Company 
received a favorable termination determination letter 
from the Internal Revenue Service (“I.R.S.”) and completed the 
Legacy Quaker 
U.S. Pension Plan termination during the first quarter 
of 2020. 
In order to terminate the Legacy Quaker U.S. Pension Plan 
in 
accordance with I.R.S. and Pension Benefit Guaranty Corporation 
requirements, the Company was required to fully fund the Legacy 
Quaker U.S. Pension Plan on a termination basis and 
the amount necessary to do so was approximately $1.8 million, subject to 
final 
true up adjustments. 
In the third quarter of 2020, the Company finalized the amount 
of the liability and related annuity payments and 
received a refund in premium of approximately $1.6 
million. 
In addition, the Company recorded a non-cash pension settlement 
charge 
at plan termination of approximately $22.7 million. 
This settlement charge included the immediate recognition 
into expense of the 
related unrecognized losses within accumulated other 
comprehensive income (loss) (“AOCI”) on the balance sheet 
as of the plan 
termination date. 
The following table highlights the potential impact 
on the Company’s pre 
-tax earnings due to changes in assumptions with respect 
to the Company’s defined 
benefit pension and postretirement benefit plans, based on assets and 
liabilities as of December 31, 2020: 
1/2 Percentage Point Increase 
1/2 Percentage Point Decrease 
(dollars in millions) 
Foreign 
U.S. 
Total 
Foreign 
U.S. 
Total 
Discount rate (1) 
$ 
0.4 
$ 
0.2 
$ 
0.6 
$ 
(0.4) 
$ 
(0.2) 
$ 
(0.6) 
Expected rate of return on plan 
assets (2) 
0.9 
0.2 
1.1 
(1.0) 
(0.2) 
(1.2) 
(1)
 
The weighted-average discount rate used to determine 
net periodic benefit costs for the year ended December 31, 2020 was 
2.3% 
for Foreign plans and 3.1% for 
U.S. plans. 
 
(2)
 
The weighted average expected rate of return on plan 
assets used to determine net periodic benefit costs for the year ended 
December 31, 2020 was 2.2% for Foreign plans and 
6.5% for U.S. plans. 
Restructuring and other related liabilities:
 
A restructuring related program may consist of charges 
for employee severance, 
rationalization of manufacturing facilities and other related 
expenses. 
To account for 
such, the Company applies the Financial 
Accounting Standards Board’s 
guidance regarding exit or disposal cost obligations. 
This guidance requires that a liability for a cost 
associated with an exit or disposal activity be recognized 
when the liability is incurred, is estimable, and payment is probable. 
See 
Note 7 of Notes to Consolidated Financial Statements in 
Item 8 of this Report. 
Recently Issued Accounting Standards 
See Note 3 of Notes to the Consolidated Financial Statements in 
Item 8 of this Report for a discussion regarding recently issued 
accounting standards. 
Liquidity and Capital Resources 
At December 31, 2020, the Company had cash, 
cash equivalents and restricted cash of $181.9 million. 
Total cash, cash 
equivalents and restricted cash was $143.6 million 
at December 31, 2019. 
The $38.3 million increase in cash, cash equivalents and 
restricted cash was the net result of $178.4 million 
of cash provided by operating activities and $6.6 million 
of positive impacts due to 
the effect of foreign currency translation on 
cash, partially offset by $75.3 million of cash used in financing 
activities and $71.4 
million of cash used in investing activities.
 
Net cash flows provided by operating activities were $178.4 
million in 2020 compared to $82.4 million in 2019. 
The Company’s 
current year net operating cash flow increase was largely 
due to higher earnings from including a full year of Houghton 
and Norman 
Hay, lower net 
cash outflows than in 2019 associated with restructuring and the Combination 
and other acquisition-related expenses, 
higher cash dividends received from its equity affiliated 
companies year-over-year, and higher operating 
cashflow from changes in 
working capital. 
The operating cashflow improvement due to working capital 
changes includes benefits from changes in accounts 
payable and accrued liabilities due to more favorable negotiated 
vendor terms and other benefits from the Combination, impacts 
due to 
volume declines related to COVID-19, and lower 
cash tax payments due to current year mix of earnings and deductibility of 
one-time 
expenses.
 
Net cash flows used in investing activities were $71.4 
million in 2020 compared to $908.6 million in 2019. 
This $837.2 million 
decrease in cash outflows used in investing activities 
was largely due to a decrease in payments related to 
acquisitions as the prior year 
$893.4 million outflow included the closing of the 
Combination on August 1, 2019, as further described below, 
compared to the 

 
30 
current year payments related to acquisitions 
of $56.2 million that were mainly driven by the acquisition of Coral 
for approximately 
$53.1 
million, 
net of cash acquired, further described below, 
and a post-closing adjustment related to Norman Hay of approximately 
$3.2 million. 
In addition, the Company had higher investments in property, 
plant and equipment in the current year due to the 
inclusion of a full year of both Houghton and Norman 
Hay, including higher 
expenditures related to integrating the companies during 
2020. 
These higher outflows were partially offset by approximately 
$2.6 million of higher proceeds from disposition of assets in 
2020, which was mainly driven by the sale of certain 
assets as part of its Combination integration plan.
 
Net cash flows used in financing activities 
were $75.3 million in 2020 compared to cash provided 
in financing activities of $844.1 
million in 2019. 
The $919.4 million decrease in net cash flows from financing 
activities was due primarily to $897.1 million of 
additional term loan and revolving credit facility borrowings in 
the prior year used to close the Combination compared 
to $49.1 
million of current year debt repayments in accordance with 
its term loan agreements and other reductions in borrowings 
under its 
revolving credit facilities. 
Also, as part of the Combination, the Company incurred and 
paid debt issuance costs of approximately 
$23.7 million in the prior year. 
In addition, the Company paid $27.6 million of cash dividends 
during 2020, a $5.7 million or 26% 
increase in cash dividends compared to the prior year, 
primarily due to the approximately 4.3 million shares issued at closing 
of the 
Combination, as well as both the current year and 
prior year cash dividend per share increases. 
Finally, during 
2020, the Company 
used $1.0 million to purchase the remaining noncontrolling 
interest in one of its South African affiliates. 
Prior to this buyout, this 
South African affiliate made a distribution 
to the prior noncontrolling affiliate shareholder of approximately 
$0.8 million in 2020. 
There were no similar noncontrolling interest activities in 
2019.
 
On August 1, 2019, the Company completed the Combination, 
whereby the Company acquired all of the issued and outstanding 
shares of Houghton from Gulf Houghton Lubricants, Ltd. 
in accordance with the Share Purchase Agreement dated 
April 4, 2017. 
The 
final purchase consideration was comprised of: 
(i) $170.8 million in cash; (ii) the issuance of approximately 
4.3 million shares of 
common stock of the Company with par value of $1.00, 
comprising 24.5% of the common stock of the Company 
at closing; and (iii) 
the Company’s refinancing 
of $702.6 million of Houghton’s 
indebtedness at closing. 
Cash acquired in the Combination was $75.8 
million. 
Prior to the Combination, the Company secured commitments 
from certain banks for a new credit facility (as amended, 
the 
“Credit Facility”). 
The Credit Facility is comprised of a $400.0 million multicurrency 
revolver (the “Revolver”), a $600.0 million term loan (the 
“U.S. Term Loan”), 
each with the Company as borrower, 
and a $150.0 million (as of August 1, 2019) Euro equivalent term 
loan (the 
“Euro Term Loan” 
and together with the “U.S. Term 
Loan”, the “Term 
Loans”) with Quaker Chemical B.V., 
a Dutch subsidiary of the 
Company as borrower, each 
with a five-year term maturing in August 2024. 
Subject to the consent of the administrative agent and 
certain other conditions, the Company may designate 
additional borrowers. 
The maximum amount available under the Credit Facility 
can be increased by up to $300.0 million at the Company’s 
request if there are lenders who agree to accept additional commitments 
and the Company has satisfied certain other conditions. 
Borrowings under the Credit Facility bear interest at a base rate 
or LIBOR 
plus an applicable margin based upon the 
Company’s consolidated net leverage 
ratio. 
There are LIBOR replacement provisions that 
contemplate a further amendment if and when LIBOR ceases 
to be reported. 
The interest rate incurred on the outstanding borrowings 
under the Credit Facility during 2020 was approximately 
2.1%. 
At December 31, 2020, the interest rate on the 
outstanding 
borrowings under the Credit Facility was approximately 
1.9%. 
In addition to paying interest on outstanding principal under 
the Credit 
Facility, the Company 
is required to pay a commitment fee ranging from 0.2% to 
0.3% depending on the Company’s 
consolidated net 
leverage ratio to the lenders under the Revolver in 
respect of the unutilized commitments thereunder. 
The Credit Facility is subject to certain financial and 
other covenants. 
The Company’s initial consolidated 
net debt to 
consolidated adjusted EBITDA ratio could not exceed 
4.25 to 1, with step downs in the permitted ratio over the 
term of the Credit 
Facility. 
As of December 31, 2020, the consolidated net debt to consolidated 
adjusted EBITDA ratio may not exceed 4.00 to 1. 
The 
Company’s consolidated 
adjusted EBITDA to interest expense ratio may not be less than 
3.0 to 1 over the term of the agreement. 
The 
Credit Facility also prohibits 
the payment of cash dividend if the Company is in default 
or if the amount of the dividend paid annually 
exceeds the greater of $50.0 million and 20% of consolidated 
adjusted EBITDA unless the ratio of consolidated 
net debt to 
consolidated adjusted EBITDA is less than 2.0 to 1, 
in which case there is no such limitation on amount. 
As of December 31, 2020 
and December 31, 2019, the Company was in compliance 
with all of the Credit Facility covenants. 
The Term Loans have 
quarterly 
principal amortization during their 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 
amount due at maturity. 
The Credit Facility is guaranteed by certain of the 
Company’s domestic subsidiaries 
and is secured by first priority liens on substantially all of 
the assets of the Company and the 
domestic subsidiary guarantors, subject to certain customary exclusions. 
The obligations of the Dutch borrower are guaranteed only 
by certain foreign subsidiaries on an unsecured basis. 
The Credit Facility required the Company to fix its variable 
interest rates on at least 20% of its total Term 
Loans. 
In order to 
satisfy this requirement as well as to manage the 
Company’s exposure to variable 
interest rate risk associated with the Credit Facility, 
in November 2019, the Company entered into $170.0 
million notional amounts of three-year interest rate swaps at a base 
rate of 
1.64% plus an applicable margin as provided 
in the Credit Facility, based on 
the Company’s consolidated net 
leverage ratio. 
At the 
time the Company entered into the swaps, and as 
of December 31, 2020, the aggregate interest rate on the swaps, 
including the fixed 
base rate plus an applicable margin, was 3.1%. 
 

 
31 
The Company capitalized $23.7 million of certain third-party 
debt issuance costs in connection with executing the 
Credit Facility. 
Approximately $15.5 million of the capitalized costs were attributed 
to the Term Loans and 
recorded as a direct reduction of long-
term debt on the Company’s 
Consolidated Balance Sheet. 
Approximately $8.3 million of the capitalized costs were 
attributed to the 
Revolver and recorded within other assets on the Company’s 
Consolidated Balance Sheet. 
These capitalized costs are being 
amortized into interest expense over the five-year term 
of the Credit Facility. 
As of December 31, 2020, the Company had Credit Facility 
borrowings outstanding of $887.1 million. 
As of December 31, 2019, 
the Company had Credit Facility borrowings outstandin 
g 
of $922.4 million. 
The Company has unused capacity under the Revolver of 
approximately $234 million, net of bank letters of 
credit of approximately $6 million, as of December 31, 2020. 
The Company’s other 
debt obligations are primarily industrial development 
bonds, bank lines of credit and municipality-related loans, which 
totaled $12.1 
million and $12.6 million as of December 31, 2020 and 
2019, respectively. 
Total unused capacity 
under these arrangements as of 
December 31, 2020 was approximately $40 million. 
The Company’s total net debt 
as of December 31, 2020 was $717.3 million. 
The Company estimates that it realized full year cost synergies 
in 2020 of approximately $58 million compared to 
$7 million in 
2019. 
The Company continues to expect to realize Combination cost synergies 
of approximately $75 million in 2021 and $80 million 
in 2022. 
The Company expects to continue to incur additional costs 
and make associated cash payments to integrate Quaker 
and Houghton 
and continue realizing the Combination’s 
total anticipated cost synergies. 
The Company expects total cash payments, including those 
pursuant to the QH Program, described below, 
but excluding incremental capital expenditures related to 
the Combination, will be in 
the range of 1.3 times its total anticipated 2022 cost 
synergies of $80 million. 
A significant portion of these costs were already 
incurred in 2019 and 2020, but the Company expects 
to continue to incur such costs through 2021. 
The Company incurred $30.3 
million of total Combination, integration and other acquisition-related 
expenses in 2020, including $0.8 million of accelerated 
depreciation, a $0.6 million loss on the sale of held-for-sale 
assets, and $0.8 million of other income related to an indemnification 
asset, described in the Non-GAAP Measures section of this 
Item below. 
The Company had aggregate net cash outflows of 
approximately $29.4 million related to the Combination, 
integration and other acquisition-related expenses during 
2020. 
Comparatively, 
in 2019, the Company incurred $38.0 million of total Combination, 
integration and other acquisition-related expenses, 
including $2.1 million of ticking fees as well as $0.6 
million of accelerated depreciation, and aggregate net cash outflows related 
to 
these costs were approximately $52.4 million. 
Quaker Houghton’s management 
approved, and the Company initiated, a global restructuring 
plan (the “QH Program”) in the 
third quarter of 2019 as part of its planned cost synergies 
associated with the Combination and recorded $26.7 
million in restructuring 
and related charges in 2019. 
The Company recognized an additional $5.5 million of 
restructuring and related charges in 2020 as 
a 
result of the QH Program. 
The QH Program includes restructuring and associated severance costs to 
reduce total headcount by 
approximately 350 people globally and plans for the 
closure of certain manufacturing and non-manufacturing 
facilities. 
In connection 
with the plans for closure of certain manufacturing and 
non-manufacturing facilities, the Company made a decision 
to make available 
for sale certain facilities during the second quarter of 2020. 
During the fourth quarter of 2020, certain of these facilities were 
sold and 
the Company recognized a loss on disposal of $0.6 million 
included within other expense, net on the Consolidated Statement 
of 
Income. 
Additionally, certain 
buildings and land with an aggregate book value of 
approximately $10.0 million have been reclassified 
to other current assets from property, 
plant and equipment as of December 31, 2020. 
The Company expects to receive amounts 
in 
excess of net book value for the properties held for sale. 
The exact timing and total costs associated with the QH Program 
will depend 
on a number of factors and is subject to change; 
however, the Company currently expects 
reduction in headcount and site closures will 
continue to occur into 2021 under the QH Program 
and estimates that the anticipated cost synergies realized 
under this program will 
approximate one-times restructuring costs incurred. 
The Company made cash payments related to the settlement 
of restructuring 
liabilities under the QH Program during 2020 of approximately 
$15.7 million compared to $8.9 million in 2019.
 
As described above, in the first quarter of 2020, the 
Company completed the termination of the Legacy Quaker U.S. Pension 
Plan 
and funded the plan on a termination basis with approximately 
$1.8 million, subject to final true up adjustments. 
In the third quarter 
of 2020, the Company finalized the amount of liability and 
related annuity payments and received a refund in premium 
of $1.6 
million. 
In addition, the Company recorded a non-cash pension settlement charge 
at plan termination of approximately $22.7 million 
in the first quarter of 2020. 
On December 22, 2020, the Company closed its acquisition 
of Coral Chemical Company (“Coral”), a privately held, 
U.S. based 
provider of metal finishing fluid solutions. 
The purchase price was $54.1 million, 
on a cash-free and debt-free basis, subject to routine 
and customary post-closing adjustments related to working 
capital and net indebtedness levels. 
The Company expects to finalize its 
post-closing adjustments for the Coral acquisition in the first quarter 
of 2021. 
Cash paid for Coral in the fourth quarter of 2020 was 
approximately $53.1 million, net of cash acquired. 
In February 2021, the Company acquired certain assets related to 
tin-plating 
solutions primarily for steel end markets for approximately 
$25 million. 
As of December 31, 2020, the Company’s 
gross liability for uncertain tax positions, including interest 
and penalties, was $28.9 
million. 
The Company cannot determine a reliable estimate of the 
timing of cash flows by period related to its uncertain tax position 
liability. 
However, should the entire liability 
be paid, the amount of the payment may be reduced by up 
to $7.5 million as a result of 
offsetting benefits in other tax jurisdictions. 
During the fourth quarter of 2020, one of the Company’s 
subsidiaries received a notice of 
inspection from a taxing authority in a country where certain 
of its subsidiaries operate, which related to a non-income 
(indirect) tax 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
32 
that may be applicable to certain products the subsidiary 
sells. 
To date, the Company 
has not received any assessment from the 
authority related to potential liabilities that may be due 
from the Company’s subsidiary. 
Consequently there is substantial uncertainty 
with respect to the Company’s 
ultimate liability with respect to this indirect tax. 
See Note 26 of Notes to Consolidated Financial 
Statements in Item 8 of this Report. 
The Company believes that its existing cash, anticipated 
cash flows from operations and available additional liquidity 
will be 
sufficient to support its operating requirements 
and fund its business objectives for at least the next twelve 
months, including but not 
limited to, payments of dividends to shareholders, costs related 
to the Combination and integration, pension plan contributions, 
capital 
expenditures, other business opportunities (including 
potential acquisitions) and other potential contingencies. 
The Company’s 
liquidity is affected by many factors, some 
based on normal operations of our business and others related 
to the impact of the 
pandemic on our business and on global economic 
conditions as well as industry uncertainties, which we cannot 
predict. 
We also 
cannot predict economic conditions and industry downturns 
or the timing, strength or duration of recoveries. 
We may seek, 
as we 
believe appropriate, additional debt or equity financing 
which would provide capital for corporate purposes, working 
capital funding, 
additional liquidity needs or to fund future growth opportunities, including 
possible acquisitions and investments. 
The timing and 
amount of potential capital requirements cannot be 
determined at this time and will depend on a number of factors, 
including the 
actual and projected demand for our products, specialty 
chemical industry conditions, competitive factors, and the 
condition of 
financial markets, among others.
 
The following table summarizes the Company’s 
contractual obligations as of December 31, 2020, and the effect 
such obligations 
are expected to have on its liquidity and cash flows in 
future periods. 
Pension and postretirement plan contributions beyond 2021 
are 
not determinable since the amount of any contribution 
is heavily dependent on the future economic environment and investment 
returns on pension trust assets. 
The timing of payments related to other long-term liabilities which 
consists primarily of deferred 
compensation agreements and environmental reserves, 
also cannot be readily determined due to their uncertainty. 
Interest obligations 
on the Company’s long-term 
debt and capital leases assume the current debt levels will be outstanding 
for the entire respective period 
and apply the interest rates in effect as of 
December 31, 2020. 
Payments due by period 
(dollars in thousands) 
2026 and 
Contractual Obligations 
Total 
2021 
2022 
2023 
2024 
2025 
Beyond 
Long-term debt 
$ 
898,789 
$ 
38,686 
$ 
57,754 
$ 
76,856 
$ 
715,155 
$ 
172 
$ 
10,166 
Interest obligations 
52,997 
14,514 
13,703 
12,583 
10,444 
526 
1,227 
Capital lease obligations 
439 
109 
96 
87 
72 
59 
16 
Operating leases 
43,544 
12,342 
8,395 
6,220 
4,610 
3,836 
8,141 
Purchase obligations 
2,377 
2,279 
92 
6 
- 
- 
- 
Transition tax 
8,500 
- 
- 
1,529 
3,099 
3,872 
- 
Pension and other postretirement plan 
contributions 
10,280 
10,280 
- 
- 
- 
- 
- 
Other long-term liabilities (See Note 22 of 
Notes to Consolidated Financial Statements) 
12,494 
- 
- 
- 
- 
- 
12,494 
Total contractual 
cash obligations 
$ 
1,029,420 
$ 
78,210 
$ 
80,040 
$ 
97,281 
$ 
733,380 
$ 
8,465 
$ 
32,044 
Non-GAAP Measures 
The information in this Form 10-K filing includes non-GAAP (unaudited) 
financial information that includes EBITDA, adjusted 
EBITDA, adjusted EBITDA margin, non-GAAP operating 
income, non-GAAP operating margin, non-GAAP 
net income and non-
GAAP earnings per diluted share. 
The Company believes these non-GAAP financial measures provide 
meaningful supplemental 
information as they enhance a reader’s understanding 
of the financial performance of the Company, 
are indicative of future operating 
performance of the Company, 
and facilitate a comparison among fiscal periods, as the 
non-GAAP financial measures exclude items 
that are not considered indicative of future operating performance 
or not considered core to the Company’s 
operations. 
Non-GAAP 
results are presented for supplemental informational 
purposes only and should not be considered a substitute for the 
financial 
information presented in accordance with GAAP. 
The Company presents EBITDA which is calculated as net income 
attributable to the Company before depreciation and 
amortization, interest expense, net, and taxes on income 
before equity in net income of associated companies. 
The Company also 
presents adjusted EBITDA which is calculated as EBITDA plus 
or minus certain items that are not considered indicative 
of future 
operating performance or not considered core to the Company’s 
operations. 
In addition, the Company presents non-GAAP operating 
income which is calculated as operating income plus or 
minus certain items that are not considered indicative of future operating 
performance or not considered core to the Company’s 
operations. 
Adjusted EBITDA margin and non-GAAP operating 
margin are 
calculated as the percentage of adjusted EBITDA and 
non-GAAP operating income to consolidated net sales, respectively. 
The 
Company believes these non-GAAP measures provide 
transparent and useful information and are widely used by analysts, investors, 
and competitors in our industry as well as by management 
in assessing the operating performance of the Company on 
a consistent 
basis. 

 
33 
Additionally, the 
Company presents non-GAAP net income and non-GAAP earnings 
per diluted share as additional performance 
measures. 
Non-GAAP net income is calculated as adjusted EBITDA, defined 
above, less depreciation and amortization, interest 
expense, net, and taxes on income before equity in 
net income of associated companies, in each case adjusted, 
as applicable, for any 
depreciation, amortization, interest or tax impacts resulting 
from the non-core items identified in the reconciliation 
of net income 
attributable to the Company to adjusted EBITDA. 
Non-GAAP earnings per diluted share is calculated as non 
-GAAP net income per 
diluted share as accounted for under the “two-class share 
method.” 
The Company believes that non-GAAP net income and non-
GAAP earnings per diluted share provide transparent 
and useful information and are widely used by analysts, investors, 
and 
competitors in our industry as well as by management in 
assessing the operating performance of the Company on a consistent 
basis. 
The following tables reconcile the Company’s 
non-GAAP financial measures (unaudited) to their most 
directly comparable 
GAAP financial measures (dollars in thousands, unless otherwise 
noted, except per share amounts): 
 
Non-GAAP Operating Income and Margin Reconciliations 
For the years ended December 31, 
2020 
2019 
2018 
Operating income 
$ 
59,360 
$ 
46,134 
$ 
87,781 
Fair value step up of inventory sold (a) 
226 
11,714 
— 
Houghton combination, integration and other 
acquisition-related expenses (b) 
30,446 
35,945 
16,661 
Restructuring and related charges (c) 
5,541 
26,678 
— 
Customer bankruptcy costs (d) 
463 
1,073 
— 
Charges related to the settlement of a non-core 
equipment sale (e) 
— 
384 
— 
Indefinite-lived intangible asset impairment (f) 
38,000 
— 
— 
Non-GAAP operating income 
$ 
134,036 
$ 
121,928 
$ 
104,442 
Non-GAAP operating margin (%) (o) 
9.5% 
10.8% 
12.0% 
 
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and 
Non-GAAP Net Income Reconciliations 
For the years ended December 31, 
2020 
2019 
2018 
Net income attributable to Quaker Chemical Corporation 
$ 
39,658 
$ 
31,622 
$ 
59,473 
Depreciation and amortization (b)(m) 
84,494 
45,264 
19,714 
Interest expense, net (b) 
26,603 
16,976 
4,041 
Taxes on income 
before equity in net income of associated companies (n) 
(5,296) 
2,084 
25,050 
EBITDA 
145,459 
95,946 
108,278 
Equity income in a captive insurance company (g) 
(1,151) 
(1,822) 
(966) 
Fair value step up of inventory sold (a) 
226 
11,714 
— 
Houghton combination, integration and other 
acquisition-related expenses (b) 
29,538 
35,361 
16,051 
Restructuring and related charges (c) 
5,541 
26,678 
— 
Customer bankruptcy costs (d) 
463 
1,073 
— 
Charges related to the settlement of a non-core 
equipment sale (e) 
— 
384 
— 
Indefinite-lived intangible asset impairment (f) 
38,000 
— 
— 
Pension and postretirement benefit costs, non-service components 
(h) 
21,592 
2,805 
2,285 
Gain on changes in insurance settlement restrictions of an 
inactive 
subsidiary and related insurance insolvency recovery (i) 
(18,144) 
(60) 
(90) 
Gain on liquidation of an inactive legal entity (j) 
— 
— 
(446) 
Currency conversion impacts of hyper-inflationary economies (k) 
450 
1,033 
664 
Adjusted EBITDA 
$ 
221,974 
$ 
173,112 
$ 
125,776 
Adjusted EBITDA margin (%) (o) 
15.7% 
15.3% 
14.5% 
Adjusted EBITDA 
$ 
221,974 
$ 
173,112 
$ 
125,776 
Less: Depreciation and amortization - adjusted (b) 
83,732 
44,680 
19,714 
Less: Interest expense, net - adjusted (b) 
26,603 
14,896 
593 
Less: Taxes on income 
before equity in net income 
 
of associated companies - adjusted (l)(n) 
26,488 
24,825 
22,978 
Non-GAAP net income 
$ 
85,151 
$ 
88,711 
$ 
82,491

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
34 
Non-GAAP Earnings per Diluted Share Reconciliations 
For the years ending December 31, 
2020 
2019 
2018 
GAAP earnings per diluted share attributable to 
Quaker Chemical Corporation common shareholders 
$ 
2.22 
$ 
2.08 
$ 
4.45 
Equity income in a captive insurance company per diluted 
share (g) 
(0.07) 
(0.12) 
(0.07) 
Fair value step up of 
inventory sold per diluted share (a) 
0.01 
0.58 
— 
Houghton combination, integration and other 
 
acquisition-related expenses per diluted share (b) 
1.31 
2.05 
1.21 
Restructuring and related charges per diluted 
share (c) 
0.23 
1.34 
— 
Customer bankruptcy costs per diluted share (d) 
0.02 
0.05 
— 
Charges related to the settlement of a non-core 
equipment 
 
sale per diluted share (e) 
— 
0.02 
— 
Indefinite-lived intangible asset impairment per diluted 
share (f) 
1.65 
— 
— 
Pension and postretirement benefit costs, non-service 
 
components per diluted share (h) 
0.79 
0.14 
0.13 
Gain on changes in insurance settlement restrictions of an 
inactive 
 
subsidiary and related insurance insolvency recovery per diluted 
share (i) 
(0.78) 
(0.00) 
(0.01) 
Gain on liquidation of an inactive legal entity per diluted 
share (j) 
— 
— 
(0.03) 
Currency conversion impacts of hyper-inflationary economies 
 
per diluted share (k) 
0.02 
0.07 
0.06 
Impact of certain discrete tax items per diluted share (l) 
(0.62) 
(0.38) 
0.43 
Non-GAAP earnings per diluted share (p) 
$ 
4.78 
$ 
5.83 
$ 
6.17 
(a)
 
Fair value step up of inventory sold relates to expenses associated 
with selling inventory from acquired businesses which 
was 
adjusted to fair value as part of purchase accounting. 
These increases to costs of goods sold (“COGS”) are not indicative 
of the 
future operating performance of the Company. 
(b)
 
Houghton combination, integration and other acquisition-related 
expenses include certain legal, financial, and other advisory 
and 
consultant costs incurred in connection with due diligence, 
regulatory approvals and closing the Combination, as well as 
integration planning and post-closing integration activities including 
internal control readiness and remediation. 
These cost also 
include certain one-time labor costs associated with the Company’s 
acquisition-related activities. 
These costs are not indicative 
of the future operating performance of the Company. 
Approximately $1.5 million, $9.4 million and $5.1 million for 
the years 
ended December 31, 2020, 2019 and 2018, respectively, 
of these pre-tax costs were considered non-deductible for the 
purpose of 
determining the Company’s 
effective tax rate, and, therefore, taxes on income before 
equity in net income of associated 
companies - adjusted reflects the impact of these items. 
During 2020 and 2019, the Company recorded $0.8 million 
and $0.6 
million, respectively, 
of accelerated depreciation related to certain of the Company’s 
facilities, which is included in the caption 
“Houghton combination, integration and other acquisition 
-related expenses” in the reconciliation of operating income 
to non-
GAAP operating income and included in the caption 
“Depreciation and amortization” in the reconciliation of net 
income 
attributable to the Company to EBITDA, but excluded from 
the caption “Depreciation and amortization – adjusted” in the 
reconciliation of adjusted EBITDA to non-GAAP net 
income attributable to the Company. 
During 2019 and 2018, the Company 
incurred $2.1 million and $3.5 million, respectively, 
of ticking fees to maintain the bank commitment related 
to the Combination. 
These interest costs are included in the caption “Interest expense, 
net” in the reconciliation of net income attributable to 
the 
Company to EBITDA, but are excluded from the caption 
“Interest expense, net – adjusted” in the reconciliation of adjusted 
EBITDA to non-GAAP net income. 
During 2020, the Company recorded $0.8 million of other income 
related to an 
indemnification asset. 
During 2020 and 2018, the Company recorded a loss of 
$0.6 million and a gain of $0.6 million, 
respectively, on the 
sale of held-for-sale assets related to the Combination. 
Each of these items are included in the caption 
“Houghton combination, integration and other acquisition 
expenses” in the reconciliation of GAAP earnings per diluted 
share 
attributable to Quaker Chemical Corporation common shareholders 
to Non-GAAP earnings per diluted share as well as the 
reconciliation of Net Income attributable to Quaker Chemical Corporation 
to Adjusted EBITDA and Non-GAAP net income See 
Note 2 and Note 9 of Notes to Consolidated Financial Statements, 
which appears in Item 8 of this Report. 
(c)
 
Restructuring and related charges represent 
the costs incurred by the Company associated with the QH restructuring 
program 
which was initiated in the third quarter of 2019 as part 
of the Company’s plan 
to realize cost synergies associated with the 
Combination. 
These costs are not indicative of the future operating performance 
of the Company. 
See Note 7 of Notes to 
Consolidated Financial Statements, which appears in Item 
8 of this Report. 
(d)
 
Customer bankruptcy costs represent the cost associated 
with a specific reserve for trade accounts receivable related 
to a customer 
who filed for bankruptcy protection. 
These expenses are not indicative of the future operating 
performance of the Company. 
See 
Note 13 of Notes to Consolidated Financial Statements, which 
appears in Item 8 of this Report. 

 
35 
(e)
 
Charges related to the settlement of a non-core 
equipment sale represent the pre-tax charge related to 
a one-time, uncommon, 
customer settlement associated with a prior sale of non 
-core equipment. 
These charges are not indicative of the future operating 
performance of the Company. 
(f)
 
Indefinite-lived intangible asset impairment represents the 
non-cash charge taken to write down the value 
of certain indefinite-
lived intangible assets associated with the Houghton 
Combination. 
The Company has no prior history of goodwill or intangible 
asset impairments and this charge is not indicative 
of the future operating performance of the Company. 
See Note 16 of Notes to 
Consolidated Financial Statements, which appears in Item 
8 of this Report. 
(g)
 
Equity income in a captive insurance company represents the 
after-tax income attributable to the Company’s 
interest in Primex, 
Ltd. (“Primex”), a captive insurance company. 
The Company holds a 32% investment in and has significant 
influence over 
Primex, and therefore accounts for this investment under 
the equity method of accounting. 
The income attributable to Primex is 
not indicative of the future operating performance of the 
Company and is not considered core to the Company’s 
operations. 
(h)
 
Pension and postretirement benefit costs, non-service components 
represent the pre-tax, non-service components of the 
Company’s pension and 
postretirement net periodic benefit cost in each period. 
These costs are not indicative of the future 
operating performance of the Company. 
The year ended December 31, 2020 includes a $22.7 million 
settlement charge for the 
Company’s termination 
of the Legacy Quaker U.S. Pension Plan. 
See Note 21 of Notes to Consolidated Financial Statements, 
which appears in Item 8 of this Report. 
(i)
 
Gain on changes in insurance settlement restrictions of an 
inactive subsidiary and related insurance insolvency recovery 
represents income associated with the gain on the termination 
of restrictions on insurance settlement reserves and the cash 
receipts from an insolvent insurance carrier for previously 
submitted claims by an inactive subsidiary of the Company. 
This other 
income is not indicative of the future operating performance 
of the Company. 
See Notes 9 and 26 of Notes to Consolidated 
Financial Statements, which appears in Item 8 of this Report. 
(j)
 
Gain on liquidation of an inactive legal entity represents 
the decrease in historical cumulative currency translation adjustments 
associated with an inactive legal entity which was closed. 
These cumulative currency translation adjustments were the result of 
remeasuring the legal entity’s 
monetary assets and liabilities to the applicable published 
exchange rates and were a component of 
accumulated other comprehensive loss, which was included 
in total shareholder’s equity on the Company’s 
Consolidated Balance 
Sheet. 
As required under U.S. GAAP, 
when a legal entity is liquidated, any amount attributable to that 
legal entity and 
accumulated in the currency translation adjustment component 
of equity is required to be removed from equity and reported 
as 
part of the gain or loss on liquidation of the legal entity 
during the period in which the liquidation occurs. 
This non-deductible 
recognized gain is not indicative of the future operating 
performance of the Company. 
See Note 9 of Notes to Consolidated 
Financial Statements, which appears in Item 8 of this Report. 
(k)
 
Currency conversion impacts of hyper-inflationary economies represents 
the foreign currency remeasurement impacts associated 
with the Company’s affiliates 
whose local economies are designated as hyper-inflationary 
under U.S. GAAP. 
An entity which 
operates within an economy deemed to be hyper-inflationary 
under U.S. GAAP is required to remeasure its monetary 
assets and 
liabilities to the applicable published exchange rates and 
record the associated gains or losses resulting from the remeasurement 
directly to the Consolidated Statements of Income. 
Venezuela’s 
economy has been considered hyper-inflationary 
under U.S. 
GAAP since 2010, while Argentina’s 
economy has been considered hyper-inflationary beginning 
July 1, 2018. 
In addition, the 
Company acquired an Argentine Houghton 
subsidiary which also applies hyper-inflationary accounting. 
During 2020 and 2019, 
the Company incurred non-deductible, pre-tax charges 
related to the Company’s Argentine 
affiliates. 
During 2018, the Company 
incurred non-deductible, pre-tax charges related 
to the Company’s Legacy 
Quaker Argentine affiliate as well as after 
-tax charges 
related to the Company’s 
Venezuela 
joint venture. 
The charges incurred related to the immediate recognition 
of foreign currency 
remeasurement in the Consolidated Statements of 
Income associated with these entities are not indicative of the 
future operating 
performance of the Company. 
See Notes 1, 9 and 17 of Notes to Consolidated Financial 
Statements, which appears in Item 8 of 
this Report. 
(l)
 
The impacts of certain discrete tax items included the impact of 
changes in the valuation allowance for foreign tax credits 
acquired with the Combination, changes in withholding 
tax rates and the associated impact on previously accrued 
for distributions 
at certain of the Company’s 
Asia/Pacific subsidiaries, additional reserves for uncertain 
tax positions related to tax audits at certain 
of the Company’s EMEA 
subsidiaries. 
This line item also includes deferred tax benefits the Company 
recorded in 2020 and 2019 
related to intercompany intangible asset transfers and 
the related amortization of these deferred tax benefits. 
Additionally, the 
2019 and 2018 amounts include certain transition tax adjustments 
related to adjustments to adopt U.S. Tax 
Reform. 
See Note 10 
of Notes to Consolidated Financial Statements, which appears 
in Item 8 of this Report. 
(m)
 
Depreciation and amortization for the years ended 
December 31, 2020 and 2019 includes $1.2 million and $0.4 million, 
respectively, of 
amortization expense recorded within equity in net income of 
associated companies in the Company’s 
Consolidated Statements of Income, which is attributable 
to the amortization of the fair value step up for the Company’s 
50% 
interest in a Houghton joint venture in Korea as a result 
of required purchase accounting. 

 
 
36 
(n)
 
Taxes on income 
before equity in net income of associated companies – adjusted 
presents the impact of any current and deferred 
income tax expense (benefit), as applicable, of 
the reconciling items presented in the reconciliation of net income attributable 
to 
Quaker Chemical Corporation to adjusted EBITDA, and 
was determined utilizing the applicable rates in the taxing jurisdictions 
in 
which these adjustments occurred, subject to deductibility. 
Fair value step up of inventory sold described in (a) resulted 
in 
incremental taxes of less than $0.1 million and $2.9 
million for 2020 and 2019, respectively. 
Houghton combination, 
integration 
and other acquisition-related expenses described in 
(b) resulted in incremental taxes of $6.9 million for 2020 
, 
$6.7 million for 
2019, and $3.1 million for 2018. 
Restructuring and related charges described in (c) resulted 
in incremental taxes of $1.4 million 
for 2020 and $6.2 million for 2019. 
Customer bankruptcy costs described in (d) resulted in incremental 
taxes of $0.1 million in 
2020 and $0.3 million in 2019. 
Charges related to the settlement of a non-core 
equipment sale described in (e) resulted in 
incremental taxes of $0.1 million for 2019. 
Indefinite-lived intangible asset impairment described in (f) resulted 
in incremental 
taxes of $8.7 million for 2020. 
Pension and postretirement benefit costs, non-service components 
described in (h) resulted in 
incremental taxes of $7.5 million for 2020, $0.7 million 
for 2019, and $0.5 million for 2018. 
Gain on changes in insurance 
settlement restrictions of an inactive subsidiary and related 
insurance insolvency recovery described in (i) resulted in a reduction 
of taxes of $4.2 million in 2020 and less than $0.1 
million in 2019 and 2018. 
Gain on liquidation of an inactive legal entity 
described in (k) resulted in a reduction of taxes of $0.1 
million in 2018. 
The impact of certain discrete items described in (m) 
resulted in incremental taxes of $11.2 
million for 2020, $5.7 million for 2019, and a reduction of taxes 
of $5.8 million in 2018. 
(o)
 
The Company calculates adjusted EBITDA margin 
and non-GAAP operating margin as the percentage 
of adjusted EBITDA and 
non-GAAP operating income to consolidated net sales. 
(p)
 
The Company calculates non-GAAP earnings per diluted share 
as non-GAAP net income attributable to the Company 
per 
weighted average diluted shares outstanding using the “two-class share 
method” to calculate such in each given period. 
Off-Balance Sheet Arrangements 
The Company had no material off-balance 
sheet items, as defined under Item 303(a)(4) of Regulation S-K as of 
December 31, 
2020. 
The Company’s only off 
-balance sheet items outstanding as of December 31, 
2020 represented approximately $10 million of 
total bank letters of credit and guarantees. 
The bank letters of credit and guarantees are not significant to 
the Company’s liquidity or 
capital resources. 
See Note 20 of Notes to Consolidated Financial Statements in 
Item 8 of this Report. 
Operations 
Consolidated Operations Review – Comparison of 2020 
with 2019
 
Net sales were 1,417.7 million in 2020 compared to $1,133.5 
million in 2019. 
The net sales increase of 25% year-over-year 
includes additional net sales from acquisitions, primarily 
Houghton and Norman Hay, 
of $408.6 million. 
Excluding net sales related 
to acquisitions, the Company’s 
current year net sales would have declined approximately 
11% which reflects a decrease in 
sales 
volumes of 9%, a negative impact from foreign currency 
translation of 1% and a decrease from selling price and product 
mix of 1%. 
The primary driver of the volume decline in the current 
year was the negative impact of COVID-19 on global production 
levels. 
COGS were $904.2 million in 2020 compared to $741.4 
million in 2019. 
The increase in COGS of 22% was primarily due to the 
inclusion of a full year of Houghton and Norman Hay COGS and 
$0.8 million of accelerated depreciation charges in 
the current year, 
partially offset by lower current year COGS on 
the decline in net sales due to COVID-19 and prior year charges 
of $11.7 million to 
increase acquired inventory to its fair value, described 
in the Non-GAAP Measures section of this Item above. 
Gross profit in 2020 increased $121.3 million or 31% 
from 2019 due primarily to additional gross profit from 
Houghton and 
Norman Hay. 
The Company’s reported 
gross margin in the current period 
was 36.2% compared to 34.6% in 2019, which included the 
inventory fair value step up described above. 
Excluding one-time increases to COGS in both periods, 
the Company estimates that its 
gross margins for 2020 and 2019 would have 
been 36.3% and 35.7%, respectively. 
The estimated increase in gross margin year-over-
year was primarily due to lower COGS as a result of the Company’s 
progress on Combination-related logistics, procurement and 
manufacturing cost savings initiatives, partially offset 
by the lower current year sales volumes on certain fixed 
manufacturing costs. 
SG&A in 2020 increased $96.9 million compared 
to 2019 due primarily to additional SG&A from Houghton and Norman 
Hay, 
partially offset by the impact of COVID-19 
cost savings actions, including lower travel expenses, and the 
benefits of realized costs 
savings associated with the Combination. 
During 2020, the Company incurred $29.8 million 
of Combination, integration and other acquisition-related 
expenses, primarily 
for professional fees related to Houghton integration 
and other acquisition-related activities. 
Comparatively, 
the Company incurred 
$35.5 million of similar expenses in the prior year, 
primarily due to various professional fees related to integration 
planning and 
regulatory approval as well as professional fees associated 
with closing the Combination. 
See the Non-GAAP Measures section of 
this Item, above. 
The Company initiated a restructuring program during 
the third quarter of 2019 as part of its global plan to realize cost 
synergies 
associated with the Combination. 
The Company recorded additional restructuring and related charges 
of $5.5 million during 2020 
compared to $26.7 million during 2019 under this program. 
See the Non-GAAP Measures section of this Item, above. 
 

 
 
37 
During the first quarter of 2020, the Company recorded 
a $38.0 million non-cash impairment charge to write 
down the value of 
certain indefinite-lived intangible assets associated with the 
Combination. 
This non-cash impairment charge is related to certain 
acquired Houghton trademarks and tradenames and 
is primarily the result of the current year negative impacts of 
COVID-19 on their 
estimated fair values. 
There were no additional impairment charges in the 
remainder of 2020 or in the prior year. 
See the Critical 
Accounting Policies and Estimates section as well as the Non 
-GAAP Measures section, 
of this Item, above. 
Operating income in 2020 was $59.4 million compared 
to $46.1 million in 2019. 
Excluding Combination, integration and other 
acquisition-related expenses, restructuring and related 
charges, the non-cash indefinite-lived intangible 
asset impairment charge, and 
other expenses that are not indicative of the Company’s 
future operating performance, 
the Company’s current year 
non-GAAP 
operating income of $134.0 million increased compared 
to $121.9 million in the prior year, primarily 
due to additional operating 
income from Houghton and Norman Hay and 
the benefits from costs savings initiatives related to the Combination 
, 
partially offset by 
the current year negative impact due to COVID-19. 
The Company’s other 
expense, net, was $5.6 million in 2020 compared to $0.3 million in 
2019. 
The year-over-year increase in 
other expense, net was primarily due to the first quarter 
of 2020 non-cash settlement charge of $22.7 million 
associated with the 
termination of the Legacy Quaker U.S. Pension Plan, 
partially offset by a fourth quarter of 2020 gain 
of $18.1 million related to the 
lapsing of restrictions over certain cash that was previously 
designated solely for the settlement of asbestos claims at 
an inactive 
subsidiary of the Company, 
which are both described in the Non-GAAP Measures section of this 
Item, above. 
Additionally, the 
increase year-over-year in other expense, 
net, includes higher foreign currency transaction losses in the current 
year. 
Interest expense, net, increased $9.6 million in 2020 compared 
to 2019 primarily due to a full year of borrowings under the 
Company’s Credit Facility 
to finance the closing of the Combination on August 1, 
2019, partially offset by lower overall interest rates 
in the current year. 
The Company’s effective 
tax rates for 2020 and 2019 were a benefit of 19.5% and an expense of 
7.2%, respectively. 
The 
Company’s current year 
effective tax rate was impacted by the tax effect 
of certain one-time tax charges and benefits in the 
current 
period, including deferred tax benefits related to an intercompany 
intangible asset transfer, as well as changes in 
the valuation 
allowance for foreign tax credits acquired with the Combination, 
additional charges for uncertain tax positions relating 
to certain 
foreign tax audits, and the tax impact of the Company’s 
termination of its Legacy Quaker U.S. pension plan. 
Comparatively, the prior 
year effective tax rate was primarily impacted 
by certain non-deductible costs associated with the Combination 
as well as a prior year 
deferred tax benefit related to a separate intercompany 
intangible asset transfer. 
Excluding the impact of all non-core items in each 
year, described in the Non-GAAP measures 
section of this Item, above, the Company estimates that its effective 
tax rates for 2020 and 
2019 were approximately 25% and 22%, respectively. 
The year-over-year increase is driven primarily 
by higher U.S. income taxes 
resulting from a change in certain deductions and 
the taxability of foreign earnings in the U.S., partially offset 
by a change in the mix 
of earnings. 
The Company has experienced and expects to continue to experience 
volatility in its effective tax rates due to several 
factors, including the timing of tax audits and the expiration 
of applicable statutes of limitations as they relate to uncertain 
tax 
positions, the unpredictability of the timing and 
amount of certain incentives in various tax jurisdictions, valuation 
allowances 
necessary on certain of the Company’s 
tax positions, the treatment of certain acquisition-related costs and 
the timing and amount of 
certain share-based compensation-related tax benefits, 
among other factors. 
Equity in net income of associated companies increased $2.3
 
million in 2020 compared to 2019, primarily due to additional 
earnings from our 50% interest in a joint venture 
in Korea partially offset by lower earnings as compared 
to the prior year period from 
the Company’s interest in 
a captive insurance company. 
See the Non-GAAP Measures section of this Item, above. 
Net income attributable to noncontrolling interest was $0.1 
million in 2020 compared to $0.3 million in 2019 
primarily a result of 
the first quarter of 2020 acquisition of the remaining 
ownership interest in one of the Company’s 
South African affiliates.
 
Foreign exchange negatively impacted the Company’s 
2020 results by approximately $0.38 per diluted share, primarily 
due to 
higher foreign exchange transaction losses year-over-year 
and, to a lesser extent, an aggregate negative 
impact from foreign currency 
translation on earnings. 
 
Consolidated Operations Review – Comparison of 2019 
with 2018
 
Net sales were $1,133.5 million in 2019 compared to 
$867.5 million in 2018. 
The net sales increase of 31% year-over-year 
includes additional net sales from Houghton and 
Norman Hay of $319.4 million. 
Excluding Houghton and Norman Hay net sales, the 
Company’s 2019 net sales would 
have declined 6% compared to the prior year, 
reflecting a decrease in sales volumes of 
approximately 3% and a negative impact from foreign 
currency translation of 3%. 
COGS in 2019 of $741.4 million increased approximately 
$186.2 million or 34% from $555.2 million in 2018. 
The increase in 
COGS was primarily due to the inclusion of Houghton 
and Norman Hay COGS, as well as the fair value inventory step 
up and 
accelerated depreciation charges described in 
the Non-GAAP Measures section of this Item above, partially 
offset by lower COGS on 
the decline in Legacy Quaker net sales. 
Gross profit in 2019 increased $79.8 million from 2018 
due primarily to Houghton and Norman Hay net sales noted above. 
The 
Company’s reported 
gross margin in 2019 was 34.6%, which includes 
an aggregate $11.7 million of expense 
associated with selling 
Houghton and Norman Hay acquired inventory adjusted 
to fair value as well as 2019 accelerated depreciation 
charges, both of which 

 
 
38 
are described in the Non-GAAP Measures section of this 
Item above. 
Excluding these one-time increases to COGS, the Company 
estimates that its gross margin would have been 
approximately 35.7% in 2019 compared to 36.0% in 2018. 
The decrease in gross 
margin year-over-year 
was primarily the result of price and product mix attributed 
to lower Houghton gross margin compared to 
Legacy Quaker. 
SG&A in 2019 increased $76.0 million compared to 2018 driven 
by additional Houghton and Norman Hay SG&A as 
well as charges related to the settlement of a 
non-core equipment sale and certain customer bankruptcy costs, both 
of which are 
described in the Non-GAAP Measures section of this Item 
above, partially offset by lower SG&A due to 
foreign currency translation, 
the impact of the year-over-year base 
sales decline noted above on direct selling costs, and the benefits 
of realized cost savings 
associated with the Combination. 
During 2019, the Company incurred $35.5 million 
of Combination and other acquisition-related expenses, 
primarily for legal, 
financial, and other advisory and consultant expenses for 
integration planning and regulatory approvals, fees associated 
with the 
closing of the Combination and costs associated with various integration 
activities. 
Comparatively, the Company 
incurred $16.7 
million of expenses in 2018, primarily due to various professional 
fees related to integration planning and regulatory approval. 
See 
the Non-GAAP Measures section of this Item above. 
The Company initiated a restructuring program during 
the third quarter of 2019 as part of its global 
plan to realize cost synergies 
associated with the Combination. 
The Company expects reductions in headcount and site closures to occur 
over the next two years 
under this program. 
The Company recorded restructuring expense during 2019 of $26.7 
million related to this program. 
There were 
no similar restructuring expenses recorded during the prior 
year. 
See the Non-GAAP Measures section of this Item, above. 
Operating income in 2019 was $46.1 million compared 
to $87.8 million in 2018. 
Excluding the Combination and other 
acquisition-related charges, restructuring 
expenses and other non-core items, described in the Non-GAAP Measures 
section of this 
Item, above, the Company’s 
2019 non-GAAP operating income increased to $121.9 million 
compared to $104.4 million in 2018, 
primarily due to additional net sales and operating income 
from Houghton and Norman Hay. 
The Company had other expense, net, of $0.3 million 
in 2019 compared to $0.6 million in 2018. 
The decrease in other expense, 
net, was primarily driven by foreign currency transaction 
gains in 2019 compared to foreign currency transaction 
losses in 2018. 
The 
Company’s 2019 and 
2018 foreign currency transaction gains and losses included 
both recurring transactional activity as well as 
foreign currency transaction losses of approximately $1.0 
million and $0.4 million, respectively, 
related to the Company’s Argentine 
subsidiaries and, in 2018, a foreign currency transaction 
gain of approximately $0.4 million related to the liquidation 
of an inactive 
legal entity, both 
of which are described in the Non-GAAP measures section of 
this Item, above. 
In addition, the Company had an 
increase in receipts of local municipality-related grants in 
one of the Company’s regions year 
-over-year, partially offset 
by an increase 
in pension and postretirement benefit costs, non-service 
components, in 2019 compared to 2018. 
Lastly, in 2018, the 
Company 
recorded a gain of $0.6 million for the sale of a 
held-for-sale asset. 
Interest expense, net, increased $12.9 million in 2019 
compared to 2018, primarily as a result of additional borrowings 
under the 
Company’s Credit Facility 
to finance the closing of the Combination on August 1, 
2019. 
The Company’s effective 
tax rates for 2019 and 2018 were 7.2% and 30.1%, respectively. 
The Company’s low 2019 
effective tax 
rate was primarily driven by a one-time deferred tax 
benefit related to an intercompany intangible asset transfer, 
described in the Non-
GAAP measures section of this Item, above. 
Comparatively, the Company’s 
higher 2018 effective tax rate was largel 
y 
driven by 
combination-related expenses incurred, certain of which 
were non-deductible for the purpose of determining the 
Company’s effective 
tax rate, as well as tax charges related to an 
adjustment to the Company’s 
initial estimate of the impact from U.S. Tax 
Reform. 
Excluding the impact of these and all other non-core items 
in each period, described in the Non-GAAP Measures section 
of this Item, 
above, the Company estimates that its effective tax 
rates would have been approximately 22% in each year. 
Equity in net income of associated companies increased $3.3 million 
in 2019 compared to 2018, primarily due to additional 
earnings from the Company’s 
50% interest in a Houghton joint venture in Korea and 
higher earnings from the Company’s 
interest in a 
captive insurance company. 
Net income attributable to noncontrolling interest was relatively 
consistent in both 2019 and 2018. 
Foreign exchange negatively impacted the Company’s 
2019 earnings by approximately 2% or $0.09 per diluted share, as the 
negative impact from foreign currency translation 
of approximately 3% due to the strengthening of the U.S. 
dollar in 2019 was 
partially offset by higher 2019 foreign exchange 
transaction gains. 
 
Reportable Segments Review – Comparison of 2020 
with 2019 
The Company’s reportable 
segments reflect the structure of the Company’s 
internal organization, the method by which the 
Company’s resources are 
allocated and the manner by which the chief operating decision 
maker assesses the Company’s 
performance. 
During the third quarter of 2019 and in connection with the 
Combination, the Company reorganized its executive 
management team to 
align with its new business structure which reflects the method 
by which the Company assesses its performance and allocates its 
resources. 
The Company’s current 
reportable segment structure includes four segments: (i) Americas; 
(ii) EMEA; (iii) Asia/Pacific; 
and (iv) Global Specialty Businesses. 
The three geographic segments are composed of 
the net sales and operations in each respective 
region, excluding net sales and operations managed globally 
by the Global Specialty Businesses segment, which includes the 
Company’s container, 
metal finishing, mining, offshore, specialty coatings, 
specialty grease and Norman Hay businesses. 

 
39 
Segment operating earnings for each of the Company’s 
reportable segments are comprised of the segment’s 
net sales less directly 
related COGS and SG&A. 
Operating expenses not directly attributable to the net sales of 
each respective segment are not included in 
segment operating earnings, such as certain corporate 
and administrative costs, Combination, 
integration and other acquisition-related 
expenses, Restructuring and related charges 
, 
and COGS related to acquired inventory sold, which is adjusted 
to fair value as part of 
purchase accounting. 
Other items not specifically identified with the Company’s 
reportable segments include interest expense, net 
and other expense, net. 
Certain immaterial reclassifications within the segment disclosures for 
the years ended December 31, 2019 
have been made to conform with the Company’s 
current customer industry segmentation and reflected in the prior 
year comparisons 
below. 
Americas 
Americas represented approximately 32% of the Company’s 
consolidated net sales in 2020. 
The segment’s net sales were $450.2 
million, an increase of $58.0 million or 15% compared 
to 2019. 
The increase in net sales reflects additional net sales from 
acquisitions of $120.4 million, primarily a result of 
the inclusion of seven additional months of Houghton net sales, as the 
Combination closed on August 1 in the prior year. 
Excluding net sales from acquisitions, the segment’s 
net sales decreased 
year-over-
year by approximately 16% due to lower volumes of 12% 
and a negative impact of foreign currency translation of 4%. 
The current 
year volume decline was driven by the economic slowdown 
that began in late March and continued throughout 2020 
due to the 
impacts of COVID-19. 
The foreign exchange impact was primarily due to the weakening 
of the Brazilian real and the Mexican peso 
against the U.S. dollar, as these exchange 
rates averaged 5.10 and 21.34, respectively, 
in 2020 compared to 3.94 and 19.24, 
respectively in 2019. 
This segment’s operating earnings 
were $96.4 million, an increase of $18.1 million or 23% compared 
to 2019. 
The increase in segment operating earnings reflects the 
inclusion of a full year of Houghton net sales, noted, 
above, and the impacts on 
gross margins and SG&A due to the Combination’s 
cost synergies and costs savings actions related to COVID-19 
year-over-year, 
partially offset by the impact of COVID-19 
on current year sales volumes and higher COGS and SG&A due 
to seven additional 
months of Houghton in the current year. 
EMEA 
EMEA represented approximately 27% of the Company’s 
consolidated net sales in 2020. 
The segment’s net 
sales were $383.2 
million, an increase of $97.6 million or 34% compared 
to 2019. 
The increase in net sales reflects additional net sales from 
acquisitions of $117.9 million, primarily 
a result of the inclusion of seven additional months of Houghton net 
sales, as the 
Combination closed on August 1 in the prior year. 
Excluding net sales from acquisitions, the segment’s 
net sales decreased 
year-over-
year by approximately 7% due to lower volumes of 
10%, partially offset by a positive impact of foreign 
currency translation of 2% 
and increases in selling price and product mix of 1%. 
The current year volume decline was driven by the economic slowdown 
that 
began in late March and continued throughout 2020 
due to the impacts of COVID-19. 
The foreign exchange impact was primarily 
due to the strengthening of the euro against the U.S. dollar 
as this exchange rate averaged 1.14 in 2020 compared to 1.12 
in 2019. 
This segment’s operating 
earnings were $69.2 million, an increase of $22.1 
million or 47% compared to 2019. The increase in 
segment operating earnings reflects the inclusion of 
a full year of Houghton net sales, noted, above, and the impacts on 
gross margins 
and SG&A due to the Combination’s 
cost synergies and costs savings actions related 
to COVID-19 year-over-year, 
partially offset by 
the impact of COVID-19 on current year sales volumes 
and higher COGS and SG&A due to seven additional months of 
Houghton in 
the current year. 
Asia/Pacific 
Asia/Pacific represented approximately 22% of the 
Company’s consolidated net 
sales in 2020. 
The segment’s net sales were 
$315.3 million, 
an increase of $67.5 million or 27% compared to 2019. 
The increase in net sales reflects the inclusion of seven 
additional months of Houghton net sales of $79.7 million, 
as the Combination closed on August 1 in the prior year. 
Excluding 
Houghton net sales, the segment’s 
net sales decreased 
by approximately 5% year-over-year was due to 
lower volumes of 3% and 
decreases in selling price and product mix of 3% partially offset 
by the positive impact of foreign currency translation 
of 1%. 
The 
current year volume decline was driven by the economic 
slowdown that began in the first quarter in China and in late March 
throughout the rest of the region due to the impacts of 
COVID-19. 
The foreign exchange impact was primarily due to the 
strengthening of the Chinese renminbi against the U.S. dollar. 
While this exchange rate averaged 
6.90 in each of 2020 and 2019, 
respectively, post 
the closing of the Combination, this exchange rate strengthened 
in the last 5 months of 2020 to average 6.72 
compared to 7.06 in the last 5 months of 2019, partially offset 
by the weakening of the Indian rupee against the U.S. 
dollar as this 
exchange rate averaged 
73.95 in 2020 compared to 70.35 in 2019. 
This segment’s operating earnings 
were $88.4 million, an increase 
of $20.8 million or 31% compared to 2019. 
The increase in segment operating earnings reflects the inclusion 
of incremental 
Houghton net sales, noted, above, and the impacts on 
gross margins and SG&A due to the Combination’s 
cost synergies and costs 
savings actions related to COVID-19 year-over-year, 
partially offset by the impact of COVID-19 on current 
year sales volumes and 
higher COGS and SG&A due to seven additional months 
of Houghton in the current year. 
Global Specialty Businesses 
Global Specialty Businesses represented approximately 
19% of the Company’s consoli 
dated net sales in 2020. 
The segment’s net 
sales were $269.0 million, an increase of $61.1 million 
or 29% 
compared to 2019. 
The increase in net sales reflects the inclusion of 
seven additional months of Houghton net sales and nine 
additional months of Norman Hay net sales, totaling $90.6 
million, as the 
Combination closed on August 1 and the Norman Hay 
acquisition closed on October 1 in the prior year. 
Excluding Houghton and 

 
 
40 
Norman Hay net sales, the segment’s 
net sales decreased by approximately 14% 
year-over-year due to lower volumes of 7%, 
decreases in selling price and product mix of 5% and a negative 
impact from foreign currency translation of 2%. 
The current year 
volume decline was primarily due to a decrease in 
the Company’s specialty coatings 
business driven by Boeing’s 
decision to 
temporarily stop production of the 737 Max aircraft and 
volume declines due to the economic slowdown resulting 
from COVID-19. 
Partially offsetting these volume declines, 
and contributing to the decrease in selling price and product mix 
, 
were higher shipments of 
a lower priced product in the Company’s 
mining business compared to the prior year. 
The foreign exchange impact was primarily due 
to the weakening of the Brazilian real against the U.S. 
dollar described in the Americas section, above. 
This segment’s operating 
earnings were $79.7 million, an increase of $20.8 
million or 35% 
compared to 2019. 
The increase in segment operating earnings 
reflects the inclusion of incremental Houghton and Norman 
Hay net sales, noted above, coupled with an increase in 
gross margin due 
to the Company’s progress 
on Combination-related logistics, procurement and manufacturing 
cost savings initiatives, partially offset 
by higher SG&A, including seven additional months of 
Houghton and nine additional months of Norman Hay SG&A in the current 
year. 
Reportable Segments Review – Comparison of 2019 
with 2018 
Americas 
Americas represented approximately 35% of the Company’s 
consolidated net sales in 2019. 
The segment’s net sales were $392.1 
million, an increase of $94.5 million or 32% compared 
to 2018. 
The increase in net sales reflects the inclusion of Houghton 
net sales 
of $110.1 million. 
Excluding Houghton net sales, the segment’s 
net sales decrease year-over-year of 5% was due 
primarily to lower 
volumes of 6% and a negative impact from foreign 
currency translation of 1% partially offset by a positive impact 
from selling price 
and product mix of 2%. 
The decline in volumes compared to 2018 was driven by compounding 
conditions of weak automotive and 
steel markets, a generally weaker overall industrial environment 
in the region and some customer inventory corrections. 
The 
segment’s operating earnings 
were $78.3 million, an increase of $15.6 million or 25% 
compared to 2018. 
The increase in segment 
operating earnings reflects the inclusion of Houghton 
net sales, partially offset by a lower gross margin 
due to price and product mix, 
including lower Houghton gross margins compared 
to Legacy Quaker and higher SG&A, including Houghton 
SG&A. 
EMEA 
EMEA represented approximately 25% of the Company’s 
consolidated net sales in 2019. 
The segment’s net 
sales were $285.6 
million, an increase of $68.6 million or 32% compared 
to 2018. 
The increase in net sales reflects the inclusion of Houghton 
net sales 
of $92.5 million. 
Excluding Houghton net sales, the segment’s 
net sales decrease year-over-year of 11% 
was due to a negative impact 
of foreign currency translation of 5%, lower volumes of 
approximately 5% and a decrease from selling price and product 
mix of 1%. 
The foreign exchange impact was primarily due to the 
weakening of the euro against the U.S. dollar as this exchange rate averaged 
1.12 in 2019 compared to 1.18 in 2018. 
The decline in volumes compared to 2018 was driven by a weak 
automotive market and the 
challenging overall industrial environment in the region, 
as well as a decrease in volume associated with a specific piece 
of business 
which the Company stopped selling during the second 
half of 2018 primarily due to its limited profitability. 
This segment’s operating 
earnings were $47.0 million, an increase of $10.9 
million or 30% compared to 2018. 
The increase in segment operating earnings 
reflects the inclusion of Houghton net sales and 
a slightly higher gross margin, partially offset by 
higher SG&A, including Houghton 
SG&A. 
Asia/Pacific 
Asia/Pacific represented approximately 22% of the 
Company’s consolidated net 
sales in 2019. 
The segment’s net sales were 
$247.8 million, an increase of $55.3 million or 29% 
compared to 2018. 
The increase in net sales reflects the inclusion of Houghton 
net sales of $67.4 million. 
Excluding Houghton net sales, the segment’s 
net sales decreased 6% year-over-year due 
primarily to the 
negative impact of foreign currency translation of 3% and 
lower volumes of approximately 3%. 
The foreign exchange impact was 
primarily due to the weakening of the Chinese renminbi 
and India rupee against the U.S. dollar as these exchange rates 
averaged 6.90 
and 70.3, respectively, 
in 2019 compared to 6.60 and 68.18, respectively, 
in 2018. 
The decline in volumes was driven by weak 
automotive and steel markets and the challenging overall 
industrial environment in the region. 
This segment’s operating earnings 
were $67.5 million, an increase of $13.8 million or 26% 
compared to 2018. 
The increase in segment operating earnings reflects the 
inclusion of Houghton net sales, and relatively consistent gross margins, 
partially offset by higher SG&A, including 
Houghton SG&A. 
Global Specialty Businesses 
Global Specialty Businesses represented approximately 
18% of the Company’s consolidated 
net sales in 2019. 
The segment’s net 
sales were $208.0 million, an increase of $47.5 million 
or 30% compared to 2018. 
The increase in net sales reflects the inclusion of 
Houghton and Norman Hay net sales of $49.4 million. 
Excluding Houghton and Norman Hay net sales, the segment’s 
net sales 
decreased 1% year-over-year driven 
by a decline in selling price and product mix of 5% and 
a negative impact from foreign currency 
translation of less than 1% partially offset by 
an increase in volume of 4%. 
This segment’s operating earnings 
were $58.9 million, an 
increase of approximately $15.9 million or 37% compared 
to 2018. 
The increase in segment operating earnings reflects the inclusion 
of Houghton and Norman Hay net sales, and relatively 
consistent gross margins, partially offset by 
higher SG&A, including Houghton 
and Norman Hay. 

 
41 
Environmental Clean-up Activities 
The Company is involved in environmental clean-up 
activities in connection with an existing plant location and former 
waste 
disposal sites. 
This includes certain soil and groundwater contamination 
the Company identified in 1992 at AC Products, Inc. 
(“ACP”), a wholly owned subsidiary. 
In voluntary coordination with the Santa Ana California Regional 
Water Quality 
Board, ACP 
has been remediating the contamination. 
In 2007, ACP agreed to operate two groundwater treatment systems, 
so as to hydraulically 
contain groundwater contamination emanating from ACP’s 
site until such time as the concentrations of contaminants 
are below the 
current Federal maximum contaminant level for four 
consecutive quarterly sampling events. 
In 2014, ACP ceased operation at one of 
its two groundwater treatment systems, as it had met the above 
condition for closure. 
In 2020, the Santa Ana Regional Water 
Quality 
Control Board asked that ACP conduct some additional 
indoor and outdoor soil vapor testing on and near the ACP site to 
confirm that 
ACP continues to meet the applicable local standards 
and ACP has begun the testing program. 
As of December 31, 2020, ACP 
believes it is close to meeting the conditions for closure of the 
remaining groundwater treatment system, but continues to 
operate this 
system while in discussions with the relevant authorities. 
As of December 31, 2020, the Company believes that the range of 
potential-
known liabilities associated with the balance of the 
ACP water remediation program is approximately $0.1 million to 
$1.0 million. 
The low and high ends of the range are based on the 
length of operation of the treatment system as determined 
by groundwater 
modeling. 
 
As a result of the closing of the Combination on August 
1, 2019, the Company is party to environmental matters related 
to certain 
Houghton domestic and foreign properties currently or previously 
owned. 
Houghton’s Sao Paulo, Brazil site 
was required under 
Brazilian environmental, health and safety regulations to 
perform an environmental assessment as part of a permit renewal process. 
Initial investigations 
identified soil and ground water contamination in select areas 
of the site. 
The site has conducted a multi-year soil 
and groundwater investigation and corresponding 
risk assessments based on the result of the investigations. 
In 2017, the site had to 
submit a new 5-year permit renewal request and was asked 
to complete additional investigations to further delineate 
the site based on 
review of the technical data by the local regulatory agency, 
Companhia Ambiental do Estado de São Paulo (“CETESB”). 
Based on 
review of the updated investigation data, CETESB issued a Technical 
Opinion regarding the investigation and remedial actions taken 
to date. 
The site developed an action plan and submitted it to CETESB in 2018 
based on CETESB requirements. 
The site 
intervention plan primarily requires the site, among 
other actions, to conduct periodic monitoring for methane in 
soil vapors, source 
zone delineation, groundwater plume delineation, bedrock 
aquifer assessment, update the human health risk assessment, develop 
a 
current site conceptual model and conduct a remedial feasibility 
study and provide a revised intervention plan. 
In December 2019, the 
site submitted a report on the activities completed including 
the revised site conceptual model and results of the remedial feasibility 
study and recommended remedial strategy for the site. 
Other Houghton environmental matters include participation in 
certain 
payments in connection with four currently active environmental 
consent orders related to certain hazardous waste cleanup 
activities 
under the U.S. Federal Superfund statute. 
Houghton has been designated a potentially responsible party (“PRP”) 
by the 
Environmental Protection Agency along with other PRPs depending 
on the site, and has other obligations to perform cleanup 
activities 
at certain other foreign subsidiaries. 
These environmental matters primarily require the 
Company to perform long-term monitoring as 
well as operating and maintenance at each of the applicable 
sites. 
The Company continually evaluates its obligations related 
to such matters and, based on historical costs incurred and projected 
costs to be incurred over the next 28 years, has estimated the present 
value range of costs for all of the Houghton environmental 
matters, on a discounted basis, to be between approximately 
$5.5 million and $6.5 million as of December 31, 
2020, for which $6.0 
million is accrued within other accrued liabilities and 
other non-current liabilities on the Company’s 
Consolidated Balance Sheet as of 
December 31, 2020. 
Comparatively, as of 
December 31, 2019, the Company had $6.6 million accrued 
with respect to these matters. 
The Company believes, although there can be no assurance 
regarding the outcome of other unrelated environmental matters, that 
it has made adequate accruals for costs associated with other 
environmental problems of which it is aware. 
Approximately $0.1 
million and $0.2 million were accrued as of December 
31, 2020 and 2019, respectively, 
to provide for such anticipated future 
environmental assessments and remediation costs. 
Notwithstanding the foregoing, the Company cannot be 
certain that future liabilities in the form of remediation expenses and 
damages will not exceed amounts reserved. 
See Note 26 of Notes to Consolidated Financial Statements in Item 
8 of this Report 
General 
See Item 7A of this Report, below, 
for further discussion of certain quantitative and qualitative 
disclosures about market risk. 
Item 7A. 
Quantitative and Qualitative Disclosures About Market Risk. 
Quaker Houghton is exposed to the impact of interest 
rates, foreign currency fluctuations, changes in commodity prices, 
and 
credit risk. 
The current economic environment associated with COVID-19 has led 
to significant volatility and uncertainty with each 
of these market risks. 
See Item 1A. “Risk Factors.” of this Report for additional 
discussions of the current and potential risks 
associated with the COVID-19 pandemic. 
Except as otherwise disclosed below, 
the market risks discussed below did not change 
materially from December 31, 2019. 

 
42 
Interest Rate Risk. 
The Company’s exposure 
to changes in interest rates relates primarily to its borrowings 
under the Credit 
Facility as of December 31, 2020 and 2019. 
Borrowings under the Credit Facility bear interest at a base rate 
or LIBOR plus an 
applicable margin based upon the Company’s 
consolidated net leverage ratio. 
As a result of the variable interest rates applicable 
under the Credit Facility, 
if interest rates rise significantly, 
the cost of debt to the Company could increase as 
well. 
This could have an 
adverse effect on the Company, 
depending on the extent of the Company’s 
borrowings outstanding throughout a given year. 
As of 
December 31, 2020, the Company had outstanding borrowings 
under the Credit Facility of approximately $887.1 million. 
The 
variable interest rate incurred on the outstanding 
borrowings under the Credit Facility during the year ended 
December 31, 2020 was 
approximately 2.2%. 
If interest rates had changed by 10% during 2020, the Company’s 
interest expense for the period ended 
December 31, 2020 on its credit facilities, including the 
Credit Facility borrowings outstanding post-closing of the Combination, 
would have correspondingly increased or decreased 
by approximately $0.8 million. 
The Credit Facility required the Company to fix its variable 
interest rates on at least 20% of its total Term 
Loans. 
In order to 
satisfy this requirement as well as to manage the 
Company’s exposure to variable 
interest rate risk associated with the Credit Facility, 
in November 2019, the Company entered into $170.0 
million notional amounts of three-year interest rate swaps at a base 
rate of 
1.64% plus an applicable margin as provided 
in the Credit Facility, based on 
the Company’s consolidated net 
leverage ratio. 
At the 
time the Company entered into the swaps and as of December 
31, 2020, the aggregate interest rate on the swaps, including 
the fixed 
base rate plus an applicable margin, was 3.1%. 
These interest rate swaps are designated and qualify as cash flow 
hedges. 
The 
Company has previously used derivative financial instruments 
primarily for the purpose of hedging exposures to fluctuations 
in 
interest rates. 
Foreign Exchange Risk
. 
A significant portion of the Company’s 
revenues and earnings are generated by its foreign operations. 
These foreign operations also represent a significant portion 
of Quaker Houghton’s assets and 
liabilities. 
Generally, all of these 
foreign operations use the local currency as their functional 
currency. 
Accordingly, Quaker Houghton’s 
financial results are affected 
by foreign currency fluctuations, particularly between the 
U.S. dollar and the euro, the British pound sterling, the Brazilian real, 
the 
Mexican peso, the Chinese renminbi and the Indian 
rupee. 
Quaker Houghton’s results 
can be materially affected depending on the 
volatility and magnitude of foreign exchange rate 
changes. 
If the euro, the British pound sterling, the Brazilian real, 
the Mexican 
peso, the Chinese renminbi and the Indian rupee had 
all weakened or strengthened by 10% against the U.S. dollar, 
the Company’s 
2020 revenues and pre-tax earnings would have correspondingly 
decreased or increased by approximately $78.9 million and 
$7.4 
million, respectively. 
The Company generally does not use financial instruments 
that expose it to significant risk involving foreign currency 
transactions. 
However, the size of its non-U.S. activities 
has a significant impact on reported operating results and 
the attendant net 
assets. 
During the past three years, sales by its non-U.S. 
subsidiaries accounted for approximately 60% to 70% of 
its consolidated net 
sales. 
In addition, the Company occasionally sources inventory 
among its worldwide operations. 
This practice can give rise to 
foreign exchange risk resulting from the varying cost of 
inventory to the receiving location, as well as from the revaluation 
of 
intercompany balances. 
The Company primarily mitigates this risk through local sourcing 
efforts. 
Commodity Price Risk
. 
Many of the raw materials used by Quaker Houghton 
are derivatives of commodity chemicals, which can 
experience significant price volatility, 
and therefore Quaker Houghton’s 
earnings can be materially affected by market changes 
in raw 
material prices. 
At times, the Company has entered into fixed-price purchase 
contracts to manage this risk. 
These contracts provide 
protection to Quaker Houghton if the prices for the contracted 
raw materials rise; however, in certain 
circumstances, the Company 
may not realize the benefit if such prices decline. 
A gross margin change of one percentage point, 
would correspondingly 
have 
increased or decreased the Company’s 
pre-tax earnings by approximately $14.2 million. 
Credit Risk
. 
Quaker Houghton establishes allowances for doubtful 
accounts for estimated losses resulting from the inability of its 
customers to make required payments. 
If the financial condition of Quaker Houghton’s 
customers were to deteriorate, resulting in an 
impairment of their ability to make payments, additional allowances 
might be required. 
Downturns in the overall economic climate 
may also exacerbate specific customer financial issues. 
A significant portion of the Company’s 
revenues are derived from sales to 
customers in the steel and automotive industries, including 
some of our larger customers, where bankruptcies 
have occurred in the past 
and where companies have experienced past financial 
difficulties. 
Though infrequent, when a bankruptcy occurs, Quaker Houghton 
must judge the amount of proceeds, if any, 
that may ultimately be received through the bankruptcy or 
liquidation process. 
In addition, 
as part of its terms of trade, Quaker Houghton may custom 
manufacture products for certain large customers 
and/or may ship product 
on a consignment basis. 
These practices may increase the Company’s 
exposure should a bankruptcy occur and may require a write-
down or disposal of certain inventory due to its estimated obsolescence 
or limited marketability as well as of accounts receivable. 
Customer returns of products or disputes may also result in 
similar issues related to the realizability of recorded 
accounts receivable or 
returned inventory. 
The Company recorded expense to its provision for doubtful 
accounts by $3.6 million, $1.9 million and $0.5 
million for the years ended December 31, 2020, 2019 
and 2018, respectively. 
A change of 10% to the expense recorded to the 
Company’s provision 
would have increased or decreased the Company’s 
pre-tax earnings by $0.4 million, $0.2 million and $0.1 
million for the years ended December 31, 2020, 2019 
and 2018, respectively. 

 
 
43 
Item 8. 
Financial Statements and Supplementary Data. 
QUAKER CHEMICAL CORPORATION 
INDEX TO CONSOLIDATED 
FINANCIAL STATEMENTS 
 
 
 
 
Page 
Financial Statements: 
 
 
Report of Independent Registered Public Accounting Firm
 
44 
Consolidated Statements of Income
 
47 
Consolidated Statements of Comprehensive Income
48 
Consolidated Balance Sheets
 
49 
Consolidated Statements of Cash Flows
 
50 
Consolidated Statements of Changes in Equity
 
51 
Notes to Consolidated Financial Statements
52 

 
44 
Report of Independent Registered Public Accounting 
Firm
 
To
 
the Board of Directors and Shareholders of Quaker Chemical Corporation 
Opinions on the Financial Statements and Internal Control over 
Financial Reporting 
We have audited 
the accompanying consolidated balance sheets of Quaker 
Chemical Corporation and its subsidiaries (the 
“Company”) as of December 31, 2020 and 2019, and the 
related consolidated statements of income, of comprehensive 
income, of 
changes in equity and of cash flows for each of the three 
years in the period ended December 31, 2020, including 
the related notes 
(collectively referred to as the “consolidated financial statements”). 
We also have 
audited the Company's internal control over 
financial reporting as of December 31, 2020, based on criteria 
established in Internal Control - Integrated Framework 
(2013) issued by 
the Committee of Sponsoring Organizations 
of the Treadway Commission (COSO).
 
In our opinion, the consolidated financial statements referred 
to above present fairly, 
in all material respects, the financial position of 
the Company as of December 31, 2020 and 2019, and the 
results of its operations and its cash flows for each of the three 
years in the 
period ended December 31, 2020 in conformity with accounting 
principles generally accepted in the United States of America. 
Also 
in our opinion, the Company did not maintain, in all material 
respects, effective internal control over financial 
reporting as of 
December 31, 2020, based on criteria established in 
Internal Control - Integrated Framework 
(2013) issued by the COSO because 
material weaknesses in internal control over financial 
reporting existed as of that date as the Company did not design 
and maintain 
effective controls (i) in response to the risks of 
material misstatement and (ii) over the review of pricing, 
quantity and customer data to 
verify that revenue recognized was complete and 
accurate. 
A material weakness is a deficiency, 
or a combination of deficiencies, in internal control over financial 
reporting, such that there is a 
reasonable possibility that a material misstatement of the 
annual or interim financial statements will not be prevented 
or detected on a 
timely basis. 
The material 
weaknesses referred to above are described in Management’s 
Report on Internal Control over Financial 
Reporting appearing under Item 9A. 
We considered 
these material weaknesses in determining the nature, timing, 
and extent of audit 
tests applied in our audit of the 2020 consolidated financial 
statements, and our opinion regarding the effectiveness 
of the Company’s 
internal control over financial reporting does not affect 
our opinion on those consolidated financial statements. 
Change in Accounting Principle 
As discussed in Note 6 to the consolidated financial statements, 
the Company changed the manner in which 
it accounts for leases in 
2019.
 
Basis for Opinions 
The Company's management is responsible for 
these consolidated financial statements, for maintaining effective 
internal control over 
financial reporting, and for its assessment of the effectiveness 
of internal control over financial reporting, included 
in management's 
report referred to above. 
Our responsibility is to express opinions on the Company’s 
consolidated financial statements and on the 
Company's internal control over financial reporting based 
on our audits. 
We are a public 
accounting firm registered with the Public 
Company Accounting Oversight Board (United States) (PCAOB) and 
are required to be independent with respect to the Company in 
accordance with the U.S. federal securities laws and the 
applicable rules and regulations of the Securities and 
Exchange Commission 
and the PCAOB. 
We conducted 
our audits in accordance with the standards of the PCAOB. 
Those standards require that we plan and perform 
the 
audits to obtain reasonable assurance about whether 
the consolidated financial statements are free of material misstatement, 
whether 
due to error or fraud, and whether effective 
internal control over financial reporting was maintained in all material 
respects. 
Our audits of the consolidated financial statements included 
performing procedures to assess the risks of material misstatement 
of the 
consolidated financial statements, whether due to error 
or fraud, and performing procedures that respond to those 
risks. Such 
procedures included examining, on a test basis, evidence 
regarding the amounts and disclosures in the consolidated 
financial 
statements. 
Our audits also included evaluating the accounting 
principles used and significant estimates made by management, as well 
as evaluating the overall presentation of the consolidated 
financial statements. 
Our audit of internal control over financial reporting 
included obtaining an understanding of internal control over financial 
reporting, assessing the risk that a material weakness exists, and 
testing and evaluating the design and operating effectiveness 
of internal control based on the assessed risk. 
Our audits also included 
performing such other procedures as we considered necessary 
in the circumstances. 
We believe that our 
audits provide a reasonable 
basis for our opinions. 
 

 
45 
As described in Management’s 
Report on Internal Control over Financial Reporting, management 
has excluded Tel 
Nordic ApS and 
Coral Chemical Company from its assessment of internal 
control over financial reporting as of December 31, 2020, 
because they were 
acquired by the Company in purchase business combinations during 
2020. 
These excluded entities are wholly owned subsidiaries, 
whose total assets represent less than 1% and approximately 2%, 
respectively, 
and whose total revenues each represent less than 1%, 
of the related consolidated financial statement amounts 
as of and for the year ended December 31, 2020. 
Definition and Limitations of Internal Control over Financial 
Reporting 
A company’s internal 
control over financial reporting is a process designed to provide 
reasonable assurance regarding the reliability of 
financial reporting and the preparation of financial statements 
for external purposes in accordance with generally 
accepted accounting 
principles. 
A company’s internal control 
over financial reporting includes those policies and procedures 
that (i) pertain to the 
maintenance of records that, in reasonable detail, accurately 
and fairly reflect the transactions and dispositions of the 
assets of the 
company; (ii) provide reasonable assurance that transactions are 
recorded as necessary to permit preparation of financial statements 
in 
accordance with generally accepted accounting principles, 
and that receipts and expenditures of the company are being 
made only in 
accordance with authorizations of management and directors 
of the company; and (iii) provide reasonable assurance 
regarding 
prevention or timely detection of unauthorized acquisition, 
use, or disposition of the company’s 
assets that could have a material effect 
on the financial statements. 
Because of its inherent limitations, internal control 
over financial reporting may not prevent or detect misstatements. 
Also, projections 
of any evaluation of effectiveness to future 
periods are subject to the risk that controls may become 
inadequate because of changes in 
conditions, or that the degree of compliance with the 
policies or procedures may deteriorate.
 
Critical Audit Matters 
The critical audit matter communicated below is a matter 
arising from the current period audit of the consolidated financial 
statements 
that was communicated or required to be communicated 
to the audit committee and that (i) relates to accounts or disclosures that 
are 
material to the consolidated financial statements and (ii) 
involved our especially challenging, subjective, or complex judgments. 
The 
communication of critical audit matters does not alter 
in any way our opinion on the consolidated financial statements, 
taken as a whole, 
and we are not, by communicating the critical audit 
matter below, providing 
a separate opinion on the critical audit matter or on the 
accounts or disclosures to which it relates. 
Houghton Trademarks and 
Tradename Impairment Assessments 
As described in Note 16 to the consolidated financial 
statements, the Company’s consolidated 
Other intangible assets, net balance was 
$1,081.4 
million as of December 31, 2020, and the indefinite-lived 
intangible asset was $205.1 million, which substantially relates to 
the Houghton trademarks and tradename. 
Management completes its annual indefinite-lived intangible 
asset impairment test during 
the fourth quarter of each year, or 
more frequently if triggering events indicate a potential impairment. 
An impairment exists when it 
is determined that it is more likely than not that the indefinite 
-lived intangible asset carrying value exceeds its fair value and 
is not 
recoverable. 
In the first quarter of 2020, as a result of the impact of COVID-19 
driving a decrease in projected legacy Houghton net 
sales in the current year and the impact of the current year 
decline on projected future legacy Houghton net sales as well as an 
increase 
in the weighted average cost of capital (“WACC”) 
assumption utilized in the quantitative impairment 
assessment, the Company 
concluded that the estimated fair value of the Houghton 
trademarks and tradename intangible asset was less than its carrying 
value. 
As a result, an impairment charge of $38.0 
million, primarily related to the Houghton trademarks and tradename, 
was recorded in the 
first quarter of 2020. The Company completed its annual 
impairment assessment during the fourth quarter of 2020 
for the Houghton 
trademarks and tradename and concluded no impairment charge 
was warranted. 
The determination of estimated fair value of the 
Houghton trademarks and tradename is based on a relief 
from royalty valuation method which requires management’s 
judgment and 
often involves the use of significant estimates and assumptions 
with respect to the WACC 
and royalty rates, as well as revenue growth 
rates and terminal growth rates. 
The principal considerations for our determination that 
performing procedures relating to the Houghton trademarks 
and tradename 
impairment assessments is a critical audit matter are 
(i) the significant judgment by management when determining 
the fair value 
measurement of the Houghton trademarks and tradename; 
(ii) a high degree of auditor judgment, subjectivity, 
and effort in performing 
procedures and evaluating 
management’s significant 
assumptions related to the WACC, 
royalty rates, revenue growth rates and 
terminal growth rates; and (iii) the audit effort 
involved the use of professionals with specialized skill and knowledge. 
 

 
46 
Addressing the matter involved performing procedures and 
evaluating audit evidence in connection with forming our overall opinion 
on the consolidated financial statements.
 
These procedures included testing the effectiveness of controls 
relating to management’s 
indefinite-lived intangible assets impairment assessments, including 
controls over the valuation of the Houghton trademarks and 
tradename. 
These procedures also included, among others (i) testing management’s 
process for determining the fair value estimate; 
(ii) evaluating the appropriateness of the relief from 
royalty valuation method; (iii) testing the completeness 
and accuracy of 
underlying data used in the estimate; and (iv) evaluating 
the reasonableness of significant assumptions related to 
the WACC, 
royalty 
rates, revenue growth rates and terminal growth rates. 
Evaluating management’s 
assumptions related to the royalty rates, revenue 
growth rates and terminal growth rates involved evaluating 
whether the assumptions used by management were 
reasonable 
considering (i) the current and past performance of the 
legacy Houghton business; (ii) the consistency with external 
market and 
industry data; and (iii) whether these assumptions were consistent with 
evidence obtained in other areas of the audit. 
Professionals 
with specialized skill and knowledge were used to 
assist in evaluating the appropriateness of the relief from 
royalty valuation method 
and evaluating the reasonableness
 
of royalty rates and the WACC. 
/s/PricewaterhouseCoopers LLP 
Philadelphia, Pennsylvania 
March 1, 2021 
We have served 
as the Company’s auditor since 
at least 1972. We 
have not been able to determine the specific year we began 
serving 
as auditor of the Company. 
 

 
47 
 
QUAKER CHEMICAL CORPORATION 
CONSOLIDATED STATEMENTS 
OF INCOME 
(
Dollars in thousands, except per share data
) 
 
Year 
Ended December 31, 
2020 
2019 
2018 
Net sales 
$ 
1,417,677
$ 
1,133,503
$ 
867,520
Cost of goods sold (excluding amortization expense - 
See Note 16) 
 
904,234
741,386
555,206
Gross profit 
513,443
392,117
312,314
Selling, general and administrative expenses 
 
380,752
283,828
207,872
Indefinite-lived intangible asset impairment 
38,000
—
—
Restructuring and related charges 
 
5,541
26,678
—
Combination, integration and other acquisition-related 
expenses 
 
29,790
35,477
16,661
Operating income 
 
59,360
46,134
87,781
Other expense, net 
 
(5,618)
(254)
(642)
Interest expense, net 
(26,603)
(16,976)
(4,041)
Income before taxes and equity in net income of associated companies 
 
27,139
28,904
83,098
Taxes on income 
before equity in net income of associated companies 
(5,296)
2,084
25,050
Income before equity in net income of associated companies 
32,435
26,820
58,048
Equity in net income of associated companies 
7,352
5,064
1,763
Net income 
39,787
31,884
59,811
Less: Net income attributable to noncontrolling intere 
st 
129
262
338
Net income attributable to Quaker Chemical Corporation 
$ 
39,658
$ 
31,622
$ 
59,473
Per share data: 
 
Net income attributable to Quaker Chemical Corporatio 
n 
common 
shareholders – basic 
$ 
2.23
$ 
2.08
$ 
4.46
Net income attributable to Quaker Chemical Corporation 
common 
shareholders – diluted 
$ 
2.22
$ 
2.08
$ 
4.45
 
The accompanying notes are an integral 
part of these consolidated financial statements.

 
48 
 
QUAKER CHEMICAL CORPORATION 
CONSOLIDATED STATEMENTS 
OF COMPREHENSIVE INCOME 
(
Dollars in thousands
) 
 
Year 
Ended December 31, 
2020 
2019 
2018 
Net income 
$ 
39,787
$ 
31,884
$ 
59,811
Other comprehensive income (loss), net of tax 
Currency translation adjustments 
41,601
4,779
(17,519)
Defined benefit retirement plans 
Net gain (loss) arising during the period, other 
8,827
(6,289)
1,119
Amortization of actuarial loss 
2,308
2,458
2,507
Amortization of prior service gain 
(69)
(151)
(84)
Current period change in fair value of derivatives 
(3,278)
(320)
—
Unrealized gain (loss) on available-for-sale securities 
2,091
2,093
(1,728)
Other comprehensive income (loss) 
51,480
2,570
(15,705)
Comprehensive income 
91,267
34,454
44,106
Less: Comprehensive income attributable to noncontrolling 
interest 
(37)
(287)
(248)
Comprehensive income attributable to Quaker Chemical Corporation 
$ 
91,230
$ 
34,167
$ 
43,858
 
The accompanying notes are an integral 
part of these consolidated financial statements.

 
49 
 
QUAKER CHEMICAL CORPORATION 
CONSOLIDATED BALANCE 
SHEETS 
(
Dollars in thousands, except par value and share amounts
)
 
December 31, 
2020 
2019 
ASSETS 
Current assets 
Cash and cash equivalents 
$ 
181,833
$ 
123,524
Accounts receivable, net 
 
372,974
375,982
Inventories, net 
 
187,764
174,950
Prepaid expenses and other current assets 
 
50,156
41,516
Total current 
assets 
 
792,727
 
715,972
Property, plant and 
equipment, net 
 
203,883
213,469
Right of use lease assets 
38,507
42,905
Goodwill 
631,212
607,205
Other intangible assets, net 
 
1,081,358
1,121,765
Investments in associated companies 
 
95,785
93,822
Deferred tax assets 
 
16,566
14,745
Other non-current assets 
 
31,796
40,433
Total assets 
$ 
2,891,834
$ 
2,850,316
 
LIABILITIES AND EQUITY 
 
Current liabilities 
 
Short-term borrowings and current portion of long-term debt 
$ 
38,967
$ 
38,332
Accounts payable 
 
191,821
 
164,101
Dividends payable 
7,051
6,828
Accrued compensation 
 
43,300
 
45,620
Accrued restructuring 
8,248
18,043
Accrued pension and postretirement benefits 
1,466
3,405
Other accrued liabilities 
 
92,107
 
83,605
Total current 
liabilities 
 
382,960
 
359,934
Long-term debt 
 
849,068
 
882,437
Long-term lease liabilities 
27,070
31,273
Deferred tax liabilities 
192,763
211,094
Non-current accrued pension and postretirement benefits 
63,890
56,828
Other non-current liabilities 
 
55,169
 
66,384
Total liabilities 
 
1,570,920
 
1,607,950
Commitments and contingencies (Note 26) 
Equity 
 
Common stock, $ 
1.00
 
par value; authorized 
30,000,000
 
shares; issued and outstanding 
 
2020 – 
17,850,616
 
shares; 2019 
– 
17,735,162
 
shares 
17,851
17,735
Capital in excess of par value 
 
905,171
 
888,218
Retained earnings 
 
423,940
 
412,979
Accumulated other comprehensive loss 
 
(26,598)
 
(78,170)
Total Quaker 
shareholders’ equity 
 
1,320,364
 
1,240,762
Noncontrolling interest 
550
1,604
Total equity 
1,320,914
1,242,366
Total liabilities and 
equity 
$ 
2,891,834
$ 
2,850,316
 
The accompanying notes are an integral 
part of these consolidated financial statements.

 
50 
 
QUAKER CHEMICAL CORPORATION 
CONSOLIDATED STATEMENTS 
OF CASH FLOWS 
(
Dollars in thousands
) 
Year Ended 
December 31, 
2020 
2019 
2018 
Cash flows from operating activities 
 
Net income 
$ 
39,787
$ 
31,884
$ 
59,811
Adjustments to reconcile net income to net cash provided by operating activities: 
Amortization of debt issuance costs 
4,749
1,979
70
Depreciation and amortization 
 
83,246
44,895
19,714
Equity in undistributed earnings of associated companies, net of dividends 
 
4,862
(2,115)
2,784
Acquisition-related fair value adjustments related to inventory 
229
11,714
—
Deferred income taxes 
(38,281)
(24,242)
8,197
Uncertain tax positions (non-deferred portion) 
1,075
958
(89)
Non-current income taxes payable 
—
856
(8,181)
Deferred compensation and other, net 
(471)
(6,789)
2,914
Share-based compensation 
 
10,996
4,861
3,724
Loss (gain) on disposal of property, plant, equipment and other assets 
 
871
(58)
(657)
Insurance settlement realized 
 
(1,035)
(822)
(1,055)
Indefinite-lived intangible asset impairment 
38,000
—
—
Gain on inactive subsidiary litigation and settlement reserve 
(18,144)
—
—
Combination and other acquisition-related expenses, net of payments 
860
(14,414)
2,727
Restructuring and related charges 
5,541
26,678
—
Pension and other postretirement benefits 
 
16,535
46
(1,392)
Increase (decrease) in cash from changes in current assets and current 
 
liabilities, net of acquisitions: 
Accounts receivable 
 
17,170
19,926
(2,822)
Inventories 
 
(3,854)
10,844
(10,548)
Prepaid expenses and other current assets 
 
927
(4,640)
(1,540)
Change in restructuring liabilities 
(15,745)
(8,899)
—
Accounts payable and accrued liabilities 
 
22,308
(8,915)
190
Estimated taxes on income 
8,763
(1,373)
4,932
 
Net cash provided by operating activities 
 
178,389
 
82,374
 
78,779
Cash flows from investing activities 
 
Investments in property, plant and equipment 
 
(17,901)
(15,545)
(12,886)
Payments related to acquisitions, net of cash acquired 
 
(56,230)
(893,412)
(500)
Proceeds from disposition of assets 
2,702
103
866
Insurance settlement interest earned 
 
44
222
162
 
Net cash used in investing activities 
 
(71,385)
 
(908,632)
 
(12,358)
Cash flows from financing activities 
 
Payments of long-term debt 
(37,615)
—
—
Proceeds from term loan debt 
 
—
750,000
—
(Repayments) borrowings on revolving credit facilities, net 
 
(11,485)
147,135
(21,120)
Repayments on other debt, net 
 
(661)
(8,798)
(5,671)
Financing-related debt issuance costs 
—
(23,747)
—
Dividends paid 
 
(27,563)
(21,830)
(19,319)
Stock options exercised, other 
 
3,867
1,370
82
Purchase of noncontrolling interest in affiliates 
(1,047)
—
—
Distributions to noncontrolling affiliate shareholders 
(751)
—
(877)
 
Net cash (used in) provided by financing activities 
 
(75,255)
 
844,130
 
(46,905)
Effect of foreign exchange rate changes on cash 
 
6,591
1,258
(6,141)
Net increase in cash, cash equivalents and restricted cash 
 
38,340
19,130
13,375
Cash, cash equivalents and restricted cash at the beginning of the period 
 
143,555
124,425
111,050
Cash, cash equivalents and restricted cash at the end of the period 
$ 
181,895
$ 
143,555
$ 
124,425
Supplemental cash flow disclosures: 
Cash paid during the year for: 
Income taxes, net of refunds 
$ 
20,253
$ 
15,499
$ 
19,617
Interest 
23,653
19,553
2,417
Non-cash activities: 
Change in accrued purchases of property, plant and equipment, net 
$ 
(1,376)
$ 
1,978
$ 
281
 
The accompanying notes are an integral 
part of these consolidated financial statements.

 
51 
 
QUAKER CHEMICAL CORPORATION 
CONSOLIDATED STATEMENTS 
OF CHANGES IN EQUITY 
(
Dollars in thousands, except per share amounts
) 
 
Accumulated 
Capital in 
other 
Common 
excess of 
Retained 
comprehensive 
Noncontrolling 
stock 
par value 
earnings 
loss 
interest 
Total 
Balance as of December 31, 2017 
$ 
13,308
93,528
365,936
(65,100)
1,946
$ 
409,618
Cumulative effect of an accounting change 
—
—
(754)
—
—
(754)
Balance as of January 1, 2018 
13,308
93,528
365,182
(65,100)
1,946
408,864
Net income 
—
—
59,473
—
338
59,811
Amounts reported in other comprehensive loss 
—
—
—
(15,615)
(90)
(15,705)
Dividends declared ($
1.465
 
per share) 
—
—
(19,530)
—
—
(19,530)
Distributions to noncontrolling affiliate 
shareholders 
—
—
—
—
(877)
(877)
Shares issued upon exercise of stock options 
and other 
9
(432)
—
—
—
(423)
Shares issued for employee stock purchase plan 
3
502
—
—
—
505
Share-based compensation plans 
18
3,706
—
—
—
3,724
Balance as of December 31, 2018 
13,338
97,304
405,125
(80,715)
1,317
436,369
Cumulative effect of an accounting change 
—
—
(44)
—
—
(44)
Balance as of January 1, 2019 
13,338
97,304
405,081
(80,715)
1,317
436,325
Net income 
—
—
31,622
—
262
31,884
Amounts reported in other comprehensive income 
—
—
—
2,545
25
2,570
Dividends declared ($
1.525
 
per share) 
—
—
(23,724)
—
—
(23,724)
Shares issued related to the Combination 
4,329
784,751
—
—
—
789,080
Shares issued upon exercise of stock options 
and other 
23
871
—
—
—
894
Shares issued for employee stock purchase plan 
3
473
—
—
—
476
Share-based compensation plans 
42
4,819
—
—
—
4,861
Balance as of December 31, 2019 
17,735
888,218
412,979
(78,170)
1,604
1,242,366
Cumulative effect of an accounting change 
—
—
(911)
—
—
(911)
Balance as of January 1, 2020 
17,735
888,218
412,068
(78,170)
1,604
1,241,455
Net income 
—
—
39,658
—
129
39,787
Amounts reported in other comprehensive income 
—
—
—
51,572
(92)
51,480
Dividends declared ($
1.560
0 per share) 
—
—
(27,786)
—
—
(27,786)
Acquisition of noncontrolling interest 
—
(707)
—
—
(340)
(1,047)
Distributions to noncontrolling affiliate 
shareholders 
—
—
—
—
(751)
(751)
Shares issued upon exercise of stock options 
and other 
66
6,714
—
—
—
6,780
Share-based compensation plans 
50
10,946
—
—
—
10,996
Balance as of December 31, 2020 
$ 
17,851
$ 
905,171
$ 
423,940
$ 
(26,598)
$ 
550
$ 
1,320,914
 
The accompanying notes are an integral part of these consolidated financial statements.

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
52 
Note 1 – Significant Accounting Policies 
As used in these Notes to Consolidated Financial Statements, 
the terms “Quaker”, “Quaker Houghton”, the “Company”, “we”, 
and “our” refer to Quaker Chemical Corporation (doing 
business as Quaker Houghton), its subsidiaries, and associated companies, 
unless the context otherwise requires. 
As used in these Notes to Consolidated Financial Statements, the 
term Legacy Quaker refers to 
the Company prior to the closing of its combination with 
Houghton International, Inc. (“Houghton”) (herein referred 
to as the 
“Combination”). 
Principles of consolidation: 
All majority-owned subsidiaries are included in the 
Company’s consolidated financial 
statements, 
with appropriate elimination of intercompany balances and 
transactions.
 
Investments in associated companies (less than majority-
owned and in which the Company has significant 
influence) are accounted for under the equity method. 
The Company’s share of net 
income or losses in these investments in associated companies 
is included in the Consolidated Statements 
of Income. 
The Company 
periodically reviews these investments for impairments 
and, if necessary, would adjust 
these investments to their fair value when a 
decline in market value or other impairment indicators are 
deemed to be other than temporary.
 
See Note 17 of Notes to Consolidated 
Financial Statements. 
The Company is not the primary beneficiary of any 
variable interest entities (“VIEs”) and therefore the 
Company’s consolidated 
financial statements do not include the accounts of any VIEs.
 
Translation of 
foreign currency: 
Assets and liabilities of non-U.S. subsidiaries and associated comp 
anies are translated into 
U.S. dollars at the respective rates of exchange prevailing 
at the end of the year. 
Income and expense accounts are translated at 
average exchange rates prevailing during the year. 
Translation adjustments resulting 
from this process are recorded directly in equity 
as accumulated other comprehensive (loss) income 
(“AOCI”) and will be included as income or expense only upon 
sale or liquidation 
of the underlying entity or asset. 
Generally, all of the 
Company’s non-U.S. subsidiaries 
use their local currency as their functional 
currency.
 
Cash and cash equivalents: 
The Company invests temporary and excess funds in money market securities and financial 
instruments having maturities within 90 days.  The Company considers all highly liquid investments with original maturities of three 
months or less to be cash equivalents.
 
The Company has not experienced losses from the aforementioned 
investments.
 
Inventories: 
Inventories are valued at the lower of cost or net realizable 
value, and are valued using the first-in, first-out method.
 
See Note 14 of Notes to Consolidated Financial Statements. 
Long-lived assets: 
Property, plant and 
equipment (“PP&E”) are stated at gross cost, less accumulated depreciation. 
Depreciation 
is computed using the straight-line method on an individual 
asset basis over the following estimated useful lives: building 
s 
and 
improvements, 
10
 
to 
45
 
years; and machinery and equipment, 
1
 
to 
15
 
years. 
The carrying values of long-lived assets are evaluated 
whenever changes in circumstances or current events indicate 
the carrying amount of such assets may not be recoverable. 
An estimate 
of undiscounted cash flows produced by the asset, or the 
appropriate group of assets, is compared with the carrying value to 
determine 
whether an impairment exists. 
If necessary, the Company 
recognizes an impairment loss for the difference between 
the carrying 
amount of the assets and their estimated fair value. 
Fair value is based on current and anticipated future cash flows. 
Upon sale or 
other dispositions of long-lived assets, the applicable amounts of 
asset cost and accumulated depreciation are removed from 
the 
accounts and the net amount, less proceeds from 
disposals, is recorded in the Consolidated Statements of Income. 
Expenditures for 
renewals or improvements that increase the estimated useful 
life or capacity of the assets are capitalized, whereas 
expenditures for 
repairs and maintenance are expensed when incurred.
 
See Notes 9 and 15 of Notes to Consolidated Financial 
Statements. 
Capitalized software: 
The Company capitalizes certain costs in connection with developing 
or obtaining software for internal 
use, depending on the associated project. 
These costs are amortized over a period of 
3
 
to 
5
 
years once the assets are ready for their 
intended use.
 
In connection with the implementations and upgrades to 
the Company’s global transaction, 
consolidation and other 
related systems, approximately 
$2.3
 
million and 
$2.6
 
million of net costs were capitalized in PP&E on the 
Company’s Consolidated 
Balance Sheets at December 31, 2020 and 2019, respectively. 
Goodwill and other intangible assets: 
The Company records goodwill, definite-lived intangible 
assets and indefinite-lived 
intangible assets at fair value at the date of acquisition. 
Goodwill and indefinite-lived intangible assets are not amortized 
but tested for 
impairment at least annually. 
These tests will be performed more frequently if triggering 
events indicate potential impairment. 
Definite-lived intangible assets are amortized on a straight 
-line basis over their estimated useful lives, generally for periods ranging 
from 
4
 
to 
20
 
years. 
The Company continually evaluates the reasonableness of 
the useful lives of these assets, consistent with the 
discussion of long-lived assets, above.
 
See Note 16 of Notes to Consolidated Financial Statements.

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
53 
Revenue recognition: 
The Company applies the Financial Accounting Standards 
Board’s (“FASB’s”) 
guidance on revenue 
recognition which requires the Company to recognize 
revenue in an amount that reflects the consideration to which 
the Company 
expects to be entitled in exchange for goods or services 
transferred to its customers. 
To do this, the Company 
applies the five-step 
model in the FASB’s 
guidance, which requires the Company to: (i) identify 
the contract with a customer; (ii) identify the performance 
obligations in the contract; (iii) determine the transaction 
price; (iv) allocate the transaction price to the performance 
obligations in the 
contract; and (v) recognize revenue when, or as, 
the Company satisfies a performance obligation.
 
See Note 5 of Notes to Consolidated 
Financial Statements. 
Accounts receivable and allowance for doubtful 
accounts: 
Trade accounts receivable subject the Company 
to credit risk. 
Trade accounts receivable are recorded 
at the invoiced amount and generally do not bear interest. 
The allowance for doubtful 
accounts is the Company’s 
best estimate of the amount of expected credit losses with its existing 
accounts receivable.
 
The Company 
adopted ASU 2016-13, 
Financial Instruments - Credit Losses (Topic
 
326): Measurement of Credit
 
Losses on Financial Instruments 
on 
a modified retrospective basis, effective January 
1, 2020. 
See Note 3 of Notes to the Consolidated Financial Statements. 
The Company recognizes an allowance for credit losses, which 
represents the portion of the receivable that the Company does 
not 
expect to collect over its contractual life, considering 
past events and reasonable and supportable forecasts of 
future economic 
conditions. 
The Company’s allowance for 
credit losses on its trade accounts receivable is based on specific 
collectability facts and 
circumstances for each outstanding receivable and customer, 
the aging of outstanding receivables, and the associated 
collection risk 
the Company estimates for certain past due aging categories, 
and also, the general risk to all outstanding accounts receivable 
based on 
historical amounts determined to be uncollectible. 
The Company does not have any off-balance-sheet credit 
exposure related to its 
customers.
 
See Note 13 of Notes to Consolidated Financial Statements. 
Research and development costs
 
Research and development costs are expensed as incurred 
and are included in selling, general 
and administrative expenses (“SG&A”).
 
Research and development expenses were 
$40.0
 
million, 
$32.1
 
million and 
$24.5
 
million for 
the years ended December 31, 2020, 2019 and 2018, 
respectively. 
Environmental liabilities and expenditures:
 
Accruals for environmental matters are recorded 
when it is probable that a liability 
has been incurred and the amount of the liability can 
be reasonably estimated. 
If there is a range of estimated liability and no amount 
in that range is considered more probable than another, 
then the Company records the lowest amount in the range in accordance 
with 
generally accepted accounting principles in the United 
States (“U.S. GAAP”). 
Environmental costs and remediation costs are 
capitalized if the costs extend the life, increase the 
capacity or improve safety or efficiency of the property 
from the date acquired or 
constructed, and/or mitigate or prevent contamination 
in the future.
 
See Note 26 of Notes to Consolidated Financial Statements. 
Asset retirement obligations: 
The Company follows the FASB’s 
guidance regarding asset retirement obligations, 
which 
addresses the accounting and reporting for obligations 
associated with the retirement of tangible long-lived assets and the associated 
retirement costs. 
Also, the Company follows the FASB’s 
guidance for conditional asset retirement obligations 
(“CARO”), which 
relates to legal obligations to perform an asset retirement 
activity in which the timing and (or) method of settlement are 
conditional on 
a future event that may or may not be within the control 
of the entity. 
In accordance with this guidance, the Company records a 
liability when there is enough information regarding the 
timing of the CARO to perform a probability-weighted discounted cash 
flow 
analysis.
 
As of December 31, 2020 and 2019, the Company 
had limited exposure to such obligations and had immaterial 
liabilities 
recorded for such on its Consolidated Balance Sheets. 
Pension and o
ther postretirement benefits: 
The Company maintains various noncontributory retirement 
plans, covering a 
portion of its employees in the U.S. and certain other 
countries, including the Netherlands, the United Kingdom 
(“U.K.”), Mexico, 
Sweden, Germany and France. 
These retirement plans are subject to the provisions of FASB’s 
guidance regarding employers’ 
accounting for defined benefit pension plans. 
The plans of the remaining non-U.S. subsidiaries are, for 
the most part, either fully 
insured or integrated with the local governments’ plans and 
are not subject to the provisions of the guidance. 
The guidance requires 
that employers recognize on a prospective basis the 
funded status of their defined benefit pension and other 
postretirement plans on 
their consolidated balance sheet and, also, recognize 
as a component of AOCI, net of tax, the gains or losses and prior 
service costs or 
credits that arise during the period but are not recognized 
as components of net periodic benefit cost. 
In addition, the guidance 
requires that an employer recognize a settlement charge 
in their consolidated statement of income when certain events occur, 
including plan termination or the settlement of certain 
plan liabilities. 
A settlement charge represents 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. 
The Company’s Legacy 
Quaker U.S. pension plan year ends on November 30 and the 
measurement date is 
December 31. 
The measurement date for the Company’s 
other postretirement benefits plan is December 31. 
 

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
54 
The Company’s global 
pension investment policies are designed to ensure that 
pension assets are invested in a manner consistent 
with meeting the future benefit obligations of the pension 
plans and maintaining compliance with various laws and regulations 
including the Employee Retirement Income Security 
Act of 1974. 
The Company establishes strategic asset allocation percentage 
targets and benchmarks for significant asset classes 
with the aim of achieving a prudent balance between 
return and risk. 
The 
Company’s investment 
horizon is generally long term, and, accordingly, 
the target asset allocations encompass a long-term 
perspective of capital markets, expected risk and return 
and perceived future economic conditions while also considering 
the profile of 
plan liabilities. 
To the extent 
feasible, the short-term investment portfolio is managed 
to match the short-term obligations, the 
intermediate portfolio duration is matched to reduce 
the risk of volatility in intermediate plan distributions, and the 
total return 
portfolio is managed to maximize the long-term real 
growth of plan assets. 
The critical investment principles of diversification, 
assessment of risk and targeting the optimal expected 
returns for given levels of risk are applied. 
The Company’s investment 
guidelines prohibit the use of securities such as letter stock and 
other unregistered securities, commodities or commodity contracts, 
short sales, margin transactions, private placements 
(unless specifically addressed by addendum), or any derivatives, options or 
futures 
for the purpose of portfolio leveraging. 
The target asset allocation is reviewed periodically 
and is determined based on a long-term projection of capital market 
outcomes, 
inflation rates, fixed income yields, returns, volatilities and 
correlation relationships. 
The interaction between plan assets and benefit 
obligations is periodically studied to assist in establishing such 
strategic asset allocation targets. 
Asset performance is monitored with 
an overall expectation that plan assets will meet or exceed 
benchmark performance over rolling five-year periods. 
The Company’s 
pension committee, as authorized by the Company’s 
Board of Directors, has discretion to manage the assets within 
established asset 
allocation ranges approved by senior management of the 
Company.
 
See Note 21 of Notes to Consolidated Financial Statements. 
Comprehensive income (loss):
 
The Company presents other comprehensive income (loss) in its Statements 
of Comprehensive 
Income. 
The Company follows the FASB’s 
guidance regarding the disclosure of reclassifications from 
AOCI which requires the 
disclosure of significant amounts reclassified from each 
component of AOCI, the related tax amounts and the income 
statement line 
items affected by such reclassifications.
 
See Note 23 of Notes to Consolidated Financial Statements. 
Income taxes and uncertain tax positions:
 
The provision for income taxes is determined using the asset and 
liability approach 
of accounting for income taxes. 
Under this approach, deferred taxes represent the future tax consequences 
expected to occur when the 
reported amounts of assets and liabilities are recovered 
or paid. 
The provision for income taxes represents income taxes paid 
or 
payable for the current year and the change in deferred taxes 
during the year. 
Deferred taxes result from differences between the 
financial and tax bases of the Company’s 
assets and liabilities and are adjusted for changes in tax rates and 
tax laws when changes are 
enacted. 
Valuation 
allowances are recorded to reduce deferred tax assets when it is more 
likely than not that a tax benefit will not be 
realized. 
The FASB’s 
guidance regarding accounting for uncertainty in income 
taxes prescribes the recognition threshold and 
measurement attributes for financial statement recognition 
and measurement of tax positions taken or expected to be 
taken on a tax 
return. 
The guidance further requires the determination of whether 
the benefits of tax positions are probable or more likely than not 
sustained upon audit based upon the technical merits of 
the tax position. 
For tax positions that are determined to be more likely than 
not sustained upon audit, a company recognizes the largest 
amount of benefit that is greater than 
50
% likely of being realized upon 
ultimate settlement in the financial statements. 
For tax positions that are not determined to be more likely 
than not sustained upon 
audit, a company does not recognize any portion of the 
benefit in the financial statements. 
Additionally, the Company 
monitors and 
adjusts for derecognition, classification, and penalties and 
interest in interim periods, with appropriate disclosure and 
transition 
thereto. 
Also, the amount of interest expense and income related to uncertain 
tax positions is computed by applying the applicable 
statutory rate of interest to the difference 
between the tax position recognized, including timing differences, 
and the amount previously 
taken or expected to be taken in a tax return. 
The Company recognizes 
interest and/or penalties related to income tax matters in 
income tax expense. 
Finally, when applicable, 
the Company nets its liability for unrecognized tax benefits 
against deferred tax assets 
related to net operating losses or other tax credit carryforwards 
that would apply if the uncertain tax position were settled 
for the 
presumed amount at the balance sheet date.
 
Pursuant to the Tax 
Cuts and Jobs Act (“U.S. Tax 
Reform”), specifically the one-time tax on deemed repatriation 
(the “Transition 
Tax”), 
the Company has provided for U.S. income tax on its undistributed 
earnings of non-U.S. subsidiaries, however, 
the Company is 
subject to and will incur other taxes, such as withholding taxes and 
dividend distribution taxes, if these undistributed earnings were 
ultimately remitted to the U.S. 
The Company currently intends to reinvest its future undistributed 
earnings of non-U.S. subsidiaries to 
support working capital needs and certain other growth 
initiatives of those subsidiaries. 
However, in certain cases the Company 
has 
and may in the future change its indefinite reinvestment 
assertion for any or all of these undistributed earnings. 
In this case, the 
Company would estimate and record a tax liability and 
corresponding tax expense for the amount of non-U.S. 
income taxes it would 
incur to ultimately remit these earnings to the U.S. 
See Note 10 of Notes to Consolidated Financial Statements. 
 

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
55 
Derivatives:
 
The Company is exposed to the impact of changes in interest rates, 
foreign currency fluctuations, changes in 
commodity prices and credit risk. 
The Company utilizes interest rate swap agreements to enhance 
its ability to manage risk, including 
exposure to variability in interest payments associated with its variable 
rate debt. 
Derivative instruments are entered into for periods 
consistent with the related underlying exposures and do not 
constitute positions independent of those exposures. 
As of December 31, 
2020 and 2019, 
the Company had certain interest rate swap agreements that 
were designated as cash flow hedges. 
Interest rate swaps 
are entered into with a limited number of counterparties, 
each of which allows for net settlement of all contracts through 
a single 
payment in a single currency in the event of a default 
on or termination of any one contract. 
The Company records these instruments 
on a net basis within the Consolidated Balance Sheets. 
The effective portion of the change in fair value 
of the agreement is recorded 
in AOCI and will be recognized in the Consolidated Statements 
of Income when the hedge item affects earnings 
or losses or it 
becomes probable that the forecasted transaction will not occur.
 
See Note 25 of Notes to Consolidated Financial Statements.
 
Fair value measurements: 
The Company utilizes the FASB’s 
guidance regarding fair value measurements, 
which establishes a 
common definition for fair value to be applied to guidance 
requiring use of fair value, establishes a framework for 
measuring fair 
value and expands disclosure about such fair value measurements. 
Specifically, the guidance 
utilizes a fair value hierarchy that 
prioritizes the inputs to valuation techniques used to measure fair 
value into three broad levels.
 
See Notes 21 and 24 of Notes to 
Consolidated Financial Statements. 
The following is a brief description of those three levels:
 
• 
Level 1: Observable inputs such as quoted prices (unadjusted) 
in active markets for identical assets or liabilities. 
• 
Level 2: Inputs other than quoted prices that are observable 
for the asset or liability, 
either directly or indirectly. 
These 
include quoted prices for similar assets or liabilities in active 
markets and quoted prices for identical or similar assets or 
liabilities in markets that are not active. 
• 
Level 3: Unobservable inputs that reflect the reporting entity's own assumptions.
Share-based compensation: 
The Company applies the FASB’s 
guidance regarding share-based payments, which 
requires the 
recognition of the fair value of share-based compensation 
as a component of expense. 
The Company has a long-term incentive 
program (“LTIP”) 
for key employees which provides for the granting of options 
to purchase stock at prices not less than its market 
value on the date of the grant. 
Most options become exercisable within 
three years
 
after the date of the grant for a period of time 
determined by the Company, 
but not to exceed 
seven years
 
from the date of grant. 
Restricted stock awards and restricted stock units 
issued under the LTIP 
program are subject to time vesting generally over a 
one
 
to 
three-year
 
period. 
In addition, as part of the 
Company’s Annual Incentive 
Plan, nonvested shares may be issued to key employees, 
which generally would vest over a 
two
 
to 
five
-
year period. 
In addition, while the FASB’s 
guidance permits the Company to make an accounting 
policy election to account for forfeitures as 
they occur for service condition aspects of certain share-based 
awards, the Company has decided not to elect this accounting 
policy 
and instead has elected to continue utilizing a forfeiture 
rate assumption. 
Based on historical experience, the Company has assumed a 
forfeiture rate of 
13
% on certain of its nonvested stock awards. 
The Company will record additional expense if the actual forfeiture 
rate is lower than estimated and will record a recovery 
of prior expense if the actual forfeiture is higher than 
estimated. 
The Company also issues performance-dependent 
stock awards as a component of its LTIP. 
The fair value of the performance-
dependent stock awards is based on their grant-date market 
value adjusted for the likelihood of attaining certain pre 
-determined 
performance goals and is calculated by utilizing a Monte Carlo 
Simulation model. 
Compensation expense is recognized on a straight-
line basis over the vesting period, generally 
three years
.
 
See Note 8 of the Notes to Consolidated Financial Statements. 
Earnings per share: 
The Company follows the FASB’s 
guidance regarding the calculation of earnings per 
share for nonvested 
stock awards with rights to non-forfeitable dividends. 
The guidance requires nonvested stock awards with rights to 
non-forfeitable 
dividends to be included as part of the basic weighted 
average share calculation under the two-class method.
 
See Note 11 of Notes to 
Consolidated Financial Statements. 
Segments:
 
The Company’s reportable 
segments reflect the structure of the Company’s 
internal organization, the method by 
which the Company’s resources 
are allocated and the manner by which the Company 
and the chief operating decision maker assess its 
performance
. 
See Note 4 of Notes to Consolidated Financial Statements.
 
Hyper-inflationary accounting: 
Economies that have a cumulative three-year rate of inflation 
exceeding 
100
% are considered 
hyper-inflationary in accordance with U.S. GAAP. 
A legal entity that operates within an economy deemed 
to be hyper-inflationary is 
required to remeasure its monetary assets and liabilities to the 
applicable published exchange rates and record the associated gains 
or 
losses resulting from the remeasurement directly to the Consolidated 
Statements of Income. 

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
56 
Venezuela’s 
economy has been considered hyper-inflationary 
under U.S. GAAP since 2010. 
The Company has a 
50
% equity 
interest in a Venezuelan 
affiliate, Kelko Quaker Chemical, S.A (“Kelko Venezuela”). 
Due to heightened foreign exchange controls 
and restrictions currently present within Venezuela, 
during the third quarter of 2018 the Company concluded 
that it no longer had 
significant influence over this affiliate. 
Prior to this determination, the Company historically accounted 
for this affiliate under the 
equity method. 
As of December 31, 2020 and 2019, the Company had 
no
 
remaining carrying value for its investment in Kelko 
Venezuela. 
See Note 17 of Notes to Consolidated Financial Statements. 
Based on various indices or index compilations currently 
being used to monitor inflation in Argentina as well as 
recent economic 
instability, effective 
July 1, 2018, Argentina’s 
economy was considered hyper-inflationary under U.S. GAAP. 
As a result, the 
Company began applying hyper-inflationary 
accounting with respect to the Company's wholly owned 
Argentine subsidiary beginning 
July 1, 2018. 
In addition, Houghton has an Argentine subsidiary to 
which hyper-inflationary accounting also is applied. 
As of, and 
for the year ended December 31, 2020, the Company's Argentine 
subsidiaries represented less than 
1
% of the Company’s consolidated 
total assets and net sales, respectively. 
During the years ended December 31, 2020, 2019 and 2018, the Company recorded $0.4 
million, $1.0 million, and $0.7 million, respectively, of remeasurement losses associated with the applicable currency conversions 
related to Venezuela and Argentina.
 
Business combinations: 
The Company accounts for business combinations under 
the acquisition method of accounting. 
This 
method requires the recording of acquired assets, including 
separately identifiable intangible assets and assumed liabilities at their 
respective acquisition date estimated fair values. 
Any excess of the purchase price over the estimated fair value 
of the identifiable net 
assets acquired is recorded as goodwill. 
The determination of the estimated fair value of assets acquired and 
liabilities assumed 
requires significant estimates and assumptions. 
Based on the assessment of additional information during the measurement 
period, 
which may be up to one year from the acquisition date, 
the Company may record adjustments to the estimated fair value of assets 
acquired and liabilities assumed.
 
See Note 2 of Notes to Consolidated Financial Statements. 
Restructuring activities:
 
Restructuring programs consist of employee severance, 
rationalization of manufacturing or other 
facilities and other related items. 
To account for 
such programs, 
the Company applies FASB’s 
guidance regarding exit or disposal 
cost obligations. 
This guidance requires that a liability for a cost associated with an 
exit or disposal activity be recognized when the 
liability is incurred, is estimable, and payment is probable.
 
See Note 7 of Notes to Consolidated Financial Statements. 
Reclassifications:
 
Certain information has been reclassified to conform 
to the current year presentation.
 
Accounting estimates:
 
The preparation of financial statements in conformity 
with generally accepted accounting principles 
requires management to make estimates and assumptions that 
affect the reported amounts of assets, liabilities 
and disclosure of 
contingencies at the date of the financial statements and 
the reported amounts of net sales and expenses during the reporting 
period. 
Actual results could differ from such estimates.
 
Note 2 – Business Combinations 
Houghton 
On 
August 1, 2019
, the Company completed the Combination, whereby the Company 
acquired all of the issued and outstanding 
shares of Houghton from Gulf Houghton Lubricants, Ltd. 
and certain other selling shareholders in exchange for a combination 
of cash 
and shares of the Company’s 
common stock in accordance with the Share Purchase Agreement 
dated April 4, 2017. 
Houghton is a 
leading global provider of specialty chemicals and technical 
services for metalworking and other industrial applications. 
The 
Company believes that combining the Legacy Quaker 
and Houghton products and service offerings allows Quaker 
Houghton to better 
serve its customers in its various end markets. 
The Combination was subject to certain regulatory 
and shareholder approvals. 
At a shareholder meeting held during 2017, the 
Company’s shareholders 
approved the issuance of new shares of the Company’s 
common stock at closing of the Combination. 
Also 
in 2017, the Company received regulatory approvals for 
the Combination from China and Australia. 
The Company received 
regulatory approvals from the European Commission 
(“EC”) during the second quarter of 2019 and the U.S. Federal 
Trade 
Commission (“FTC”) in July 2019. 
The approvals from the FTC and the EC required the concurrent 
divestiture of certain steel and 
aluminum related product lines of Houghton, which 
were sold by Houghton on August 1, 2019 for approximately 
$
37
 
million in cash. 
The final remedy agreed with the EC and the FTC was consistent 
with the Company’s 
previous expectation that the total divested 
product lines would be approximately 
3
% of the combined company’s 
net sales.
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
57 
The following table summarizes the fair value of consideration 
transferred in the Combination:
 
Cash transferred to Houghton shareholders (a) 
$ 
170,829
Cash paid to extinguish Houghton debt obligations 
702,556
Fair value of common stock issued as consideration (b) 
789,080
Total fair value 
of consideration transferred 
$ 
1,662,465
(a) 
A portion is held in escrow by a third party, 
subject to indemnification rights that lapse upon the achievement 
of certain 
milestones. 
(b) 
Amount was determined based on approximately 
4.3
 
million shares, comprising 
24.5
% of the common stock of the Company 
immediately after the closing, and the closing price per 
share of Quaker Chemical Corporation common stock 
of $
182.27
 
on 
August 1, 2019.
 
The Company accounted for the Combination under the 
acquisition method of accounting. 
This method requires the recording of 
acquired assets, including separately identifiable 
intangible assets, at their fair value on the acquisition date. 
Any excess of the 
purchase price over the estimated fair value of 
the identifiable net assets acquired is recorded as goodwill. 
The determination of the 
estimated fair value of assets acquired, including indefinite 
and definite-lived intangible assets, requires management’s 
judgment and 
often involves the use of significant estimates and assumptions, 
including assumptions with respect to future cash inflows and 
outflows, discount rates, customer attrition rates, royalty 
rates, asset lives and market multiples, among other items. 
Fair values were 
determined by management using a variety of methodologies 
and resources, including external independent valuation 
experts. 
The 
valuation methods included physical appraisals, discounted 
cash flow analyses, excess earnings, relief from 
royalty, and other 
appropriate valuation techniques to determine the fair value 
of assets acquired and liabilities assumed. 
The following table presents the final estimated fair 
values of Houghton net assets acquired:
 
Measurement 
August 1, 
Period 
August 1, 2019 
2019 (1) 
Adjustments 
(as adjusted) 
Cash and cash equivalents 
$ 
75,821
$ 
—
$ 
75,821
Accounts receivable 
178,922
—
178,922
Inventories 
95,193
—
95,193
Prepaid expenses and other assets 
10,652
666
11,318
Property, plant and 
equipment 
115,529
(66)
115,463
Right of use lease assets 
10,673
—
10,673
Investments in associated companies 
66,447
—
66,447
Other non-current assets 
4,710
1,553
6,263
Intangible assets 
1,028,400
—
1,028,400
Goodwill 
494,915
4,625
499,540
Total assets purchased 
2,081,262
6,778
2,088,040
Short-term borrowings, not refinanced at closing 
9,297
—
9,297
Accounts 
payable, accrued expenses and other accrued liabilities 
150,078
1,127
151,205
Deferred tax liabilities 
205,082
4,098
209,180
Long-term lease liabilities 
6,607
—
6,607
Other non-current liabilities 
47,733
1,553
49,286
Total liabilities assumed 
418,797
6,778
425,575
Total consideration 
paid for Houghton 
1,662,465
—
1,662,465
Less: cash acquired 
75,821
—
75,821
Less: fair value of common stock issued as consideration 
789,080
—
789,080
Net cash paid for Houghton 
$ 
797,564
$ 
—
$ 
797,564
(1) As previously disclosed in the Company’s 
2019 Form 10-K. 
During 2020, the allocation of the purchase price for 
the Combination was finalized and the 
one-year
 
measurement period has 
ended. 
Houghton assets acquired and liabilities assumed were assigned to 
each of the Company’s reportable 
segments on a specific 
identification or allocated basis, as applicable. 
Prior to finalizing the purchase price allocation, certain measurement 
period 
adjustments were recorded during 2020 related primarily 
to increasing the valuation allowances against the deferred 
tax assets 
associated with foreign tax credits acquired as part of 
the Combination as additional information became available and 
was used to 

 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
58 
update the Company’s initial 
estimates of expenses allocated to foreign source income 
and expected creditable foreign taxes. 
In 
addition, measurement period adjustments included 
the recognition of additional other non-current assets and other non-current 
liabilities based on additional information obtained regarding 
certain tax audits and associated rights to indemnification, 
and certain 
non-income tax liabilities payable upon closing of the 
Combination in certain countries. 
 
The Company allocated $
1,028.4
 
million of the purchase price to intangible assets, including certain 
measurement period 
adjustments, comprised of $
242.0
 
million of trademarks and tradename, to which management has 
assigned indefinite lives; $
677.3
 
million of customer relationships, to be amortized over 
15
 
to 
18
 
years; and $
109.1
 
million of existing product technology, 
to be 
amortized over 
20
 
years. 
In addition, the Company recorded $
499.5
 
million of goodwill, including measurement period adjustments, 
related to expected value not allocated to other acquired 
assets, none of which will be tax deductible. 
See Note 16 of Notes to 
Consolidated Financial Statements. 
Factors contributing to the purchase price that resulted in 
goodwill included the acquisition of 
management, business processes and personnel that 
will allow Quaker Houghton to better serve its customers. 
The expanded portfolio 
is expected to generate significant cross-selling opportunities and 
allow further expansion into certain emerging 
growth markets. 
 
Commencing August 1, 2019, the Company’s 
Consolidated Statements of Income included the results of 
Houghton. 
Net sales of 
Houghton subsequent to closing of the Combination and included 
in the Company’s Consolidated 
Statements of Income for the year 
ended December 31, 2019 were $
299.8
 
million. 
The following unaudited pro forma consolidated financial information 
has been 
prepared as if the Combination had taken place 
on January 1, 2018. 
The unaudited pro forma results include certain adjustments to 
each company’s historical 
actual results, including: (i) additional depreciation and amort 
ization expense based on the initial estimates 
of fair value step up and estimated useful lives of depreciable 
fixed assets, definite-lived intangible assets and investment in 
associated 
companies acquired; (ii) adoption of required accounting 
guidance and alignment of related accounting policies, (iii) 
elimination of 
transactions between Legacy Quaker and Houghton; 
(iv) elimination of results associated with the divested product 
lines; (v) 
adjustment to interest expense, net, to reflect the impact 
of the financing and capital structure of the combined Company; 
and (vi) 
adjustment for certain Combination, 
integration and other acquisition-related costs to reflect such costs as 
if they were incurred in the 
period immediately following the pro-forma closing 
of the Combination on January 1, 2018. 
The adjustments described in (vi) 
include an expense recorded in costs of goods sold (“COGS”) 
associated with selling inventory acquired in the Combination which 
was adjusted to fair value as part of purchase accounting, 
restructuring expense incurred associated with the Company’s 
global 
restructuring program initiated post-closing of the Combination 
and certain other integration costs incurred post-closing included 
in 
combination and other acquisition-related expenses. 
These costs have been presented in the unaudited pro forma 
table below as these 
costs on a pro forma basis were incurred during the year 
ended December 31, 2018. 
Unaudited pro forma results are not necessarily 
indicative of the results that would have occurred if the 
acquisition had occurred on the date indicated, or that may result in the 
future 
for various reasons, including the potential impact of revenue 
and cost synergies on the business.
 
For the years ending 
Unaudited Pro Forma 
 
December 31, 
(as if the Combination occurred on 
January 1, 2018) 
2019 
2018 
Net sales 
$ 
1,562,427
$ 
1,654,588
Net income attributable to Quaker Chemical Corporation 
94,537
35,337
Combination, 
integration and other acquisition-related expenses have been 
and are expected to continue to be significant. 
The 
Company incurred total costs of $
30.3
 
million, $
38.0
 
million and $
19.5
 
million for the years ended December 31, 2020, 2019 and 
2018 
related to the Combination, 
integration and other acquisition-related activities. 
These costs included certain legal, financial and 
other advisory 
and consultant costs related to due diligence, regulatory approvals 
and closing the Combination, 
as well as integration 
planning and post-closing integration activities including 
internal control readiness and remediation. 
These costs also include interest 
costs to maintain the bank commitment (“ticking fees”) 
for the Combination during each of the years ended December 
31, 2019 and 
2018, 
accelerated depreciation charges during the year 
s 
ended December 31, 2020 and 2019, a loss on the sale of a held-for-sale 
asset 
during the year ended December 31, 2020, and a gain 
on the sale of a held-for-sale asset during the year ended 
December 31, 2018. 
As of December 31, 2020 and 2019, the Company 
had current liabilities related to the Combination and other acquisition-related 
activities of $
7.5
 
million and $
6.6
 
million, respectively, 
primarily recorded within other accrued liabilities on its Consolidated 
Balance 
Sheets. 
Norman Hay 
In 
October 2019
, the Company completed its acquisition of the operating divisions 
of 
Norman Hay plc
 
(“Norman Hay”), a private 
U.K. company 
that provides specialty chemicals, operating equipment, and 
services to industrial end markets. 
The acquisition adds 
new technologies in automotive, original equipment 
manufacturer (“OEM”), and aerospace, as well as engineering 
expertise which is 
expected to strengthen the Company’s 
existing equipment solutions platform. 
The acquired Norman Hay assets and liabilities were 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
59 
assigned to the Global Specialty Businesses reportable segment. 
The original purchase price was 
80.0
 
million GBP, 
on a cash-free 
and debt-free basis, subject to routine and customary 
post-closing adjustments related to working capital and 
net indebtedness levels.
 
The following table presents the final estimated fair 
values of Norman Hay net assets acquired:
 
Measurement 
October 1, 
Period 
October 1, 2019 
2019 (1) 
Adjustments 
(as adjusted) 
Cash and cash equivalents 
$ 
18,981
$ 
—
$ 
18,981
Accounts receivable 
15,471
—
15,471
Inventories 
8,213
(49)
8,164
Prepaid expenses and other assets 
4,203
138
4,341
Property, plant and 
equipment 
14,981
—
14,981
Right of use lease assets 
10,608
—
10,608
Intangible assets 
51,088
—
51,088
Goodwill 
29,384
(82)
29,302
Total assets purchased 
152,929
7
152,936
Long-term debt included current portions 
485
—
485
Accounts payable, accrued expenses and other accrued 
liabilities 
13,488
(732)
12,756
Deferred tax liabilities 
12,746
905
13,651
Long-term lease liabilities 
8,594
—
8,594
Total liabilities assumed 
35,313
173
35,486
Total consideration 
paid for Norman Hay 
117,616
(166)
117,450
Less: estimated purchase price settlement (2) 
3,287
(3,287)
—
Less: cash acquired 
18,981
—
18,981
Net cash paid for Norman Hay 
$ 
95,348
$ 
3,121
$ 
98,469
(1) As previously disclosed in the Company’s 
2019 Form 10-K. 
(2) The Company finalized its post-closing adjustments for 
the Norman Hay acquisition and paid approximately 
2.5
 
million GBP 
during the first quarter of 2020 to settle such adjustments. 
During 2020, the allocation of the purchase price for 
Norman Hay was finalized and the 
one-year
 
measurement period has ended. 
The Company allocated $
51.1
 
million of the purchase price to intangible assets, comprised 
of $
36.9
 
million of customer relationships, 
to be amortized over 
13
 
to 
17
 
years; $
7.5
 
million of existing product technology, 
to be amortized over 
20
 
years; $
6.3
 
million of 
trademarks, to be amortized over 
16
 
to 
17
 
years; and $
0.4
 
million of non-compete agreements, to be amortized over 
2
 
to 
11
 
years. 
In 
addition, the Company recorded $
29.3
 
million of goodwill related to expected value not allocated to 
other acquired assets, none of 
which will be tax deductible. 
Factors contributing to the purchase price that resulted 
in goodwill included the acquisition of 
management, business processes and personnel that 
will allow Quaker Houghton to better serve its customers. 
The results of operations of Norman Hay are included 
in the Consolidated Statements of Income as of October 1, 2019. 
Transaction expenses associated with 
this acquisition are included in Combination, 
integration and other acquisition-related expenses 
in the Company’s Consolidated 
Statements of Income. 
Certain pro forma and other information is not presented, as the operations 
of 
Norman Hay are not considered material to the overall 
operations of the Company for the periods presented.
 
Coral Chemical Company 
In 
December 2020
, the Company completed its acquisition of 
Coral Chemical Company
 
(“Coral”), a privately held, U.S.-based 
provider of metal finishing fluid solutions. 
The acquisition provides 
technical expertise and product solutions for pre-treatment, 
metalworking and wastewater treatment applications 
to the beverage cans and general industrial end markets. 
The acquired Coral 
assets and liabilities were assigned to the Americas and Global 
Specialty Businesses reportable segments. 
The original purchase price 
was approximately $
54.1
 
million, subject to routine and customary post-closing adjustments related 
to working capital and net 
indebtedness levels.
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
60 
The following table presents the preliminary estimated fair 
values of Coral net assets acquired:
 
December 22, 
2020 
Cash and cash equivalents 
$ 
958
Accounts receivable 
8,473
Inventories 
4,527
Prepaid expenses and other assets 
181
Property, plant and 
equipment 
10,467
Intangible assets 
30,300
Goodwill 
2,814
Total assets purchased 
57,720
Long-term debt included current portions 
183
Accounts payable, accrued expenses and other accrued liabilities 
3,482
Total liabilities assumed 
3,665
Total consideration 
paid for Coral 
54,055
Less: cash acquired 
958
Net cash paid for Coral 
$ 
53,097
The Company allocated $
30.3
 
million of the purchase price to intangible assets, comprised 
of $
22.0
 
million of customer 
relationships, to be amortized over 
21
 
to 
24
 
years; $
4.7
 
million of existing product technology, 
to be amortized over 
14
 
to 
15
 
years; 
$
3.6
 
million of trademarks, to be amortized over 
17
 
years. 
In addition, the Company recorded $
2.8
 
million of goodwill related to 
expected value not allocated to other acquired assets, none 
of which will be tax deductible. 
Factors contributing to the purchase price 
that resulted in goodwill included the acquisition of 
management, business processes and personnel that will 
allow Quaker Houghton 
to better serve its customers. 
As of December 31, 2020, the allocation of the purchase 
price for Coral has not been finalized and the 
one-year
 
measurement 
period has not ended. 
Further adjustments may be necessary as a result of the 
Company’s on-going assessment of 
additional 
information related to the fair value of assets acquired 
and liabilities assumed. 
The preliminary purchase price allocations are based 
upon the valuation of assets and these estimates and assumptions 
are subject to change as the Company obtains additional information 
during the measurement period. 
These assets pending finalization include fixed assets and intangible 
assets which could also result in 
adjustments to goodwill. 
The results of operations of Coral subsequent to the 
acquisition date are included in the Consolidated Statements of 
Income as of 
December 31, 2020. 
Transaction expenses associated with this acquisition 
are included in Combination, 
integration and other 
acquisition-related expenses in the Company’s 
Consolidated Statements of Income. 
Certain pro forma and other information is not 
presented, as the operations of Coral are not considered 
material to the overall operations of the Company for the 
periods presented.
 
Other Acquisitions 
In February 2021, the Company acquired certain assets related 
to tin-plating solutions in the steel end market for approximately 
$
25
 
million. 
The results of operations of the acquired assets are not 
included in the Consolidated Statements of Income, because the 
date of closing was after December 31, 2020. 
Transaction expenses associated with this acquisition 
that were incurred during the year 
ended December 31, 2020 are included in Combination, 
integration and other acquisition-related expenses in the Company’s 
Consolidated Statements of Income. 
A preliminary purchase price allocation of assets acquired 
and liabilities assumed has not been 
presented as that information is not available as of 
the date of these Consolidated Financial Statements. 
In May 2020, the Company acquired Tel 
Nordic ApS (“TEL”), a company that specializes in lubricants and engineering 
primarily 
in high pressure aluminum die casting for its Europe, 
Middle East and Africa (“EMEA”) reportable segment. 
Consideration paid was 
in the form of a convertible promissory note in the amount 
of 
20.0
 
million DKK, or approximately $
2.9
 
million, which was 
subsequently converted into shares of the Company’s 
common stock. 
An adjustment to the purchase price of approximately 
0.4
 
million DKK, or less than $
0.1
 
million, was made as a result of finalizing a post-closing 
settlement in the second quarter of 2020. 
The 
Company allocated approximately $
2.4
 
million of the purchase price to intangible assets to be amortized 
over 
17
 
years. 
In addition, 
the Company recorded approximately $
0.5
 
million of goodwill, related to expected value not allocated to 
other acquired assets, none 
of which will be tax deductible. 
The allocation of the purchase price of TEL has not been 
finalized and the one-year measurement 
period has not ended. 
Further adjustments may be necessary as a result of the 
Company’s on-going assessment of 
additional 
information related to the fair value of assets acquired 
and liabilities assumed.
 
 

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
61 
In March 2020, the Company acquired the remaining 
49
% ownership interest in one of its South African affiliates, 
Quaker 
Chemical South Africa Limited (“QSA”) for 
16.7
 
million ZAR, or approximately $
1.0
 
million, from its joint venture partner PQ 
Holdings South Africa. 
QSA is a part of the Company’s 
EMEA reportable segment. 
As this acquisition was a change in an existing 
controlling ownership, the Company recorded $
0.7
 
million of excess purchase price over the carrying value of 
the noncontrolling 
interest in Capital in excess of par value. 
 
In March 2018, the Company purchased certain formulations 
and product technology for the mining industry for $
1.0
 
million. 
The Company allocated the entire purchase price to intangible 
assets representing formulations and product technology, 
to be 
amortized over 
10
 
years. 
In accordance with the terms of the applicable purchase agreement, 
$
0.5
 
million of the purchase price was 
paid at signing, and the remaining $
0.5
 
million of the purchase price was paid during the first quarter of 2019.
 
Note 3 – Recently Issued Accounting Standards 
Recently Issued Accounting Standards 
Adopted 
The FASB issued 
Account Standards Update (“ASU”)
 
2020-04, 
Reference Rate Reform (Topic 
848): Facilitation of the Effects of 
Reference Rate Reform on Financial 
Reporting
 
in March 2020. 
The amendments provide temporary optional expedients and 
exceptions for applying GAAP to contract modifications, 
hedging relationships and other transactions to ease the potential 
accounting 
and financial reporting burden associated with transitioning 
away from reference rates that are expected to be discontinued, 
including 
the London Interbank Offered Rate (“LIBOR”). 
ASU 2020-04 is effective for the 
Company as of March 12, 2020 and generally can 
be applied through December 31, 2022. 
As of December 31, 2020, 
the expedients provided in ASU 2020-04 do not impact the 
Company; however, the Company 
will continue to monitor for potential impacts on its consolidated 
financial statements. 
The FASB issued 
ASU 2018-15
, Customer’s 
Accounting for Implementation Costs Incurred 
in a Cloud Computing Arrangement 
That Is a Service Contract
 
in August 2018 that 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 service 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 retrospectively or prospec 
tively to all implementation costs incurred after the date of 
adoption. 
Early 
adoption was permitted. 
The Company adopted this standard on a prospective basis, effective 
January 1, 2020. 
There was no 
cumulative effect of adoption recorded within 
retained earnings on January 1, 2020. 
The FASB issued 
ASU 2018-14, 
Disclosure Framework — Changes to 
the Disclosure Requirements 
for Defined Benefit Plans
 
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 certain disclosures related 
to the valuation 
processes for 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 
standard 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. 
Early 
adoption was permitted. 
The Company adopted this standard on a prospective basis, effective 
January 1, 2020. 
ASU 2018-14 
addresses disclosures only and will not 
have an impact on the Company’s 
consolidated financial statements. 
The FASB issued 
ASU 2018-13, Fair Value 
Measurement (Topic 820): 
Disclosure Framework – Changes to the Disclosure 
Requirements for Fair Value 
Measurement in August 2018 that modifies certain disclosure 
requirements for employers that sponsor 
defined benefit pension or other postretirement plans. 
The amendments in this ASU remove disclosures that are 
no longer 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, 2019, and should be 
applied retrospectively to all periods presented. 
The Company adopted this standard on a prospective basis, effective 
January 1, 2020. 
There was no cumulative effect of adoption 
recorded within retained earnings on January 1, 2020. 
The FASB issued 
ASU 2016-13, 
Financial Instruments - Credit Losses (Topic 
326): Measurement of Credit 
Losses on Financial 
Instruments 
in June 2016 related to the accounting for and disclosure of 
credit losses. 
The FASB subsequently 
issued several 
additional accounting standard updates which amended 
and clarified the guidance, but did not materially change 
the guidance or its 
applicability to the Company. 
This accounting guidance introduces a new model for 
recognizing credit losses on financial 
instruments, including customer accounts receivable, 
based on an estimate of current expected credit losses. 
The Company adopted 
the guidance in this accounting standard update, including 
all applicable subsequent updates to this accounting guidance, as required, 
on a modified retrospective basis, effective January 
1, 2020. 
Adoption did not have a material impact to the Company’s 
financial 
statements as expected. 
However, as a result of this adoption, 
the Company recorded a cumulative effect of 
accounting change that 

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
62 
resulted in an increase to its allowance for doubtful 
accounts of approximately $
1.1
 
million, a decrease to deferred tax liabilities of 
$
0.2
 
million and a decrease to retained earnings of $
0.9
 
million. 
In accordance with this guidance, the Company recognizes 
an allowance for credit losses reflecting the net amount expected to 
be 
collected from its financial assets, primarily trade accounts 
receivable. 
This allowance represents the portion of the receivable that the 
Company does not expect to collect over its contractual 
life, considering past events and reasonable and supportable forecasts of 
future 
economic conditions. 
The Company’s allowance for 
credit losses on its trade accounts receivable is based on 
specific collectability 
facts and circumstances for each outstanding receivable and 
customer, the aging of outstanding 
receivables and the associated 
collection risk the Company estimates for certain past due 
aging categories, and also, the general risk to all outstanding accounts 
receivable based on historical amounts determined to 
be uncollectible. 
See Note 13 of Notes to the Consolidated Financial 
Statements.
 
Recently Issued Accounting Standards 
Not Yet Adopted 
The FASB 
issued ASU 2020-01,
 
Investments – Equity Securities (To 
pic 321), Investments – Equity Method and Joint Ventures 
(Topic 
323), and Derivatives and Hedging (Topic 
815) –Clarifying the Interactions between Topic 
321, Topic 
323, and Topic 
815
 
in 
January 2020 clarifying the interaction among the 
accounting standards related to equity securities, equity method investments, 
and 
certain derivatives. 
The new guidance, among other things, states that a company 
should consider observable transactions that require 
a company to either apply or discontinue the equity method 
of accounting, for the purposes of applying the fair value 
measurement 
alternative immediately before applying or upon discontinuing 
the equity method. 
The new guidance also addresses the measurement 
of certain purchased options and forward contracts used 
to acquire investments. 
The guidance within this accounting standard update 
is effective for annual and interim periods beginning 
after December 15, 2020 and is to be applied prospectively. 
Early adoption is 
permitted. 
The Company will adopt this standard, as required, on a prospective 
basis, effective January 1, 2021, and does not expect 
adoption to have an impact to its financial statements. 
The FASB issued 
ASU 2019-12
, Income Taxes 
(Topic 
740): Simplifying the Accounting for Income Taxes
 
in December 2019. 
The guidance within this accounting standard update 
removes certain exceptions, including the exception to the incremental 
approach 
for certain intra-period tax allocations, to the requirement 
to recognize or not recognize certain deferred tax liabilities for 
equity 
method investments and foreign subsidiaries, and to the 
general methodology for calculating income taxes in 
an interim period when a 
year-to-date loss exceeds the anticipated loss for 
the year. 
Further, the guidance simplifies the accounting 
related to franchise taxes, 
the step up in tax basis for goodwill, current and deferred 
tax expense, and codification improvements for income taxes 
related to 
employee stock ownership plans. 
The guidance is effective for annual and interim 
periods beginning after December 15, 2020. 
Early 
adoption is permitted. 
The Company will adopt this standard, as required, effective 
January 1, 2021, and is currently evaluating its 
implementation and any potential adoption impact.
 
Note 4 – Business Segments 
The Company’s operating 
segments, which are consistent with its reportable segments, 
reflect the structure of the Company’s 
internal organization, the method by which 
the Company’s resources are allocated 
and the manner by which the chief operating 
decision 
maker assess the Company’s 
performance. 
During the third quarter of 2019 and in connection with the 
Combination, the 
Company reorganized its executive management 
team to align with its new business structure, which reflects the 
method by which the 
chief operating decision maker assesses the Company’s 
performance and allocates its resources. 
The Company’s current reportable 
segment structure includes four segments: (i) Americas; 
(ii) EMEA; (iii) Asia/Pacific; and (iv) Global Specialty Businesses. 
The three 
geographic segments are composed of the net sales and 
operations in each respective region, excluding net sales and 
operations 
managed globally by the Global Specialty Businesses segment, 
which includes the Company’s 
container, metal finishing, mining, 
offshore, specialty coatings, specialty grease and 
Norman Hay businesses. 
Although the Company changed its reportable segments in 
the third quarter of 2019, the calculation of the reportable 
segments’ 
measures of earnings remains otherwise generally 
consistent with past practices. 
Segment operating earnings for each of the 
Company’s reportable 
segments are comprised of the segment’s 
net sales less directly related 
COGS and SG&A. 
Operating expenses 
not directly attributable to the net sales of each respective 
segment, such as certain corporate and administrative costs, Combination, 
integration and other acquisition-related expenses, and Restructuring 
and related charges, are not included in segment operating 
earnings. 
Other items not specifically identified with the Company’s 
reportable segments include interest expense, net and other 
expense, net.
 

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
63 
The following tables present information about the performance 
of the Company’s reportable segments 
for the years ended 
December 31, 2020, 2019 and 2018. 
Certain immaterial reclassifications within the segment disclosures 
for the years ended 
December 31, 2019 and 2018 have been made to conform with 
the Company’s current customer 
industry segmentation.
 
2020 
2019 
2018 
Net sales 
 
Americas 
$ 
450,161
$ 
392,121
$ 
297,601
EMEA 
 
383,187
 
285,570
 
216,984
Asia/Pacific 
315,299
247,839
192,502
Global Specialty Businesses 
269,030
207,973
160,433
Total 
net sales 
$ 
1,417,677
$ 
1,133,503
$ 
867,520
 
2020 
2019 
2018 
Segment operating earnings 
Americas 
$ 
96,379
$ 
78,297
$ 
62,686
EMEA 
 
69,163
 
47,014
 
36,119
Asia/Pacific 
88,356
67,512
53,739
Global Specialty Businesses 
79,690
58,881
42,931
Total 
segment operating earnings 
333,588
251,704
195,475
Combination, integration and other acquisition-related 
expenses 
(29,790)
(35,477)
(16,661)
Restructuring and related charges 
(5,541)
(26,678)
—
Fair value step up of inventory sold 
(226)
(11,714)
—
Indefinite-lived intangible asset impairment 
(38,000)
—
—
Non-operating and administrative expenses 
(143,202)
(104,572)
(83,515)
Depreciation of corporate assets and amortization 
(57,469)
(27,129)
(7,518)
Operating income 
59,360
46,134
87,781
Other expense, net 
(5,618)
(254)
(642)
Interest expense, net 
(26,603)
(16,976)
(4,041)
Income before taxes and equity in net income 
of 
associated companies 
$ 
27,139
$ 
28,904
$ 
83,098
The following tables present information regarding the 
Company’s reportable segments’ 
assets and long-lived assets, including 
certain identifiable assets as well as an allocation of 
shared assets, of December 31, 2020, 2019 and 2018:
 
2020 
2019 
2018 
Segment assets 
Americas 
$ 
969,551
$ 
926,122
$ 
180,037
EMEA 
697,821
688,663
149,984
Asia/Pacific 
713,004
685,476
205,424
Global Specialty Businesses 
511,458
550,055
174,220
Total segment assets 
$ 
2,891,834
$ 
2,850,316
$ 
709,665
 
2020 
2019 
2018 
Segment long-lived assets 
Americas 
$ 
122,302
$ 
139,170
$ 
60,745
EMEA 
69,344
56,108
23,383
Asia/Pacific 
119,233
126,166
26,217
Global Specialty Businesses 
59,091
69,184
26,949
Total segment long-lived 
assets 
$ 
369,970
$ 
390,628
$ 
137,294

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
64 
The following tables present information regarding the 
Company’s reportable segments’ 
capital expenditures and depreciation for 
identifiable assets for the years ended December 31, 
2020, 2019 and 2018:
 
2020 
2019 
2018 
Capital expenditures 
Americas 
$ 
6,451
$ 
6,404
$ 
3,401
EMEA 
3,844
3,263
2,081
Asia/Pacific 
5,688
3,857
6,059
Global Specialty Businesses 
1,918
2,021
1,345
Total segment capital 
expenditures 
$ 
17,901
$ 
15,545
$ 
12,886
 
2020 
2019 
2018 
Depreciation 
Americas 
$ 
12,322
$ 
7,500
$ 
4,225
EMEA 
6,813
4,560
3,434
Asia/Pacific 
4,672
3,458
2,552
Global Specialty Businesses 
3,544
2,248
1,985
Total segment depreciation 
$ 
27,351
$ 
17,766
$ 
12,196
During the years ended December 31, 2020, 2019 and 2018, 
the Company had approximately 
$963.2
 
million, 
$719.8
 
million and 
$534.6
 
million of net sales, respectively, 
attributable to non-U.S. operations. 
As of December 31, 2020, 2019 and 2018, the Company 
had approximately 
$176.6
 
million, 
$174.4
 
million and 
$60.8
 
million of long-lived assets, respectively, 
attributable to non-U.S. 
operations. 
Inter-segment revenue for the years ended December 
31, 2020, 2019 and 2018 was 
$9.1
 
million, 
$7.3
 
million and 
$8.3
 
million for 
Americas, 
$22.0
 
million, 
$20.3
 
million and 
$21.9
 
million for EMEA, 
$0.6
 
million, 
$0.2
 
million and 
$0.5
 
million for Asia/Pacific and 
$4.7
 
million, 
$5.4
 
million and 
$5.3
 
million for Global Specialty Businesses, respectively. 
However, all inter-segment 
transactions 
have been eliminated from each reportable operating 
segment’s net sales and earnings 
for all periods presented in the above tables.
 
Note 5 – Net Sales and Revenue Recognition 
Business Description 
The Company develops, produces, and markets a broad 
range of formulated chemical specialty products and offers 
chemical 
management services (“Fluidcare”) for various heavy 
industrial and manufacturing applications throughout its four 
segments. 
The 
Combination increased the Company’s 
addressable metalworking, metals and industrial end markets, including 
steel, aluminum, 
aerospace, 
defense, transportation-OEM, transportation-components, offshore 
sub-sea energy, 
architectural aluminum, construction, 
tube and pipe, can and container, 
mining, specialty coatings and specialty greases. 
The Combination also strengthened the product 
portfolio of the combined Company. 
The major product lines of Quaker Houghton include metal removal 
fluids, cleaning fluids, 
corrosion inhibitors, metal drawing and forming fluids, die 
cast mold releases, heat treatment and quenchants, metal forging 
fluids, 
hydraulic fluids, specialty greases, offshore 
sub-sea energy control fluids, rolling lubricants, rod 
and wire drawing fluids and surface 
treatment chemicals. 
A substantial portion of the Company’s 
sales worldwide are made directly through its own employees 
and its Fluidcare programs, 
with the balance being handled through distributors and 
agents. 
The Company’s employees typic 
ally visit the plants of customers 
regularly, work 
on site, and, through training and experience, identify production 
needs, 
which can be resolved or otherwise addressed 
either by adapting the Company’s 
existing products or by applying new formulations developed 
in its laboratories. 
The specialty 
chemical industry comprises many companies similar in 
size to the Company, 
as well as companies larger and smaller than Quaker 
Houghton. 
The offerings of many of the Company’s 
competitors differ from those of Quaker Houghton; 
some offer a broad portfolio 
of fluids, including general lubricants, while others have 
a more specialized product range. 
All competitors provide different levels of 
technical services to individual customers. Competition 
in the industry is based primarily on the ability to provide products that meet 
the needs of the customer, render 
technical services and laboratory assistance to the customer and, 
to a lesser extent, on price. 
As part of the Company’s 
Fluidcare business, certain third-party product sales to customers are 
managed by the Company. 
Where 
the Company acts as a principal, revenues are recognized 
on a gross reporting basis at the selling price negotiated with 
its customers. 
Where the Company acts as an agent, revenue is recognized on 
a net reporting basis at the amount of the administrative fee earned 
by 

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
65 
the Company for ordering the goods. 
In determining whether the Company is acting as a principal 
or an agent in each arrangement, 
the Company considers whether it is primarily responsible 
for the obligation to provide the specified good, has inventory 
risk before 
the specified good has been transferred to the customer 
and has discretion in establishing the prices for the specified 
goods. 
The 
Company transferred third-party products under arrangements 
resulting in net reporting of $
42.5
 
million, $
48.0
 
million and $
47.1
 
million for the years ended December 31, 2020, 
2019 and 2018, respectively. 
A significant portion of the Company’s 
revenues are realized from the sale of process fluids and services 
to manufacturers of 
steel, aluminum, automobiles, aircraft, industrial equipment, 
and durable goods, and, therefore, the Company is subject 
to the same 
business cycles as those experienced by these manufacturers and 
their customers. 
The Company’s financial performance 
is generally 
correlated to the volume of global production within the 
industries it serves, rather than discretely related to the financial performance 
of such industries. 
Furthermore, steel and aluminum customers typically have 
limited manufacturing locations compared to 
metalworking customers and generally use higher 
volumes of products at a single location. 
During the year ended December 31, 
2020, 
the Company’s five largest 
customers (each composed of multiple subsidiaries or 
divisions with semiautonomous purchasing 
authority) accounted for approximately 
10
% of consolidated net sales, with its largest customer accounting 
for approximately 
3
% of 
consolidated net sales. 
Revenue Recognition Model 
The Company applies the FASB’s 
guidance on revenue recognition which requires the 
Company to recognize revenue in an 
amount that reflects the consideration to which the Company 
expects to be entitled in exchange for goods or services transferred 
to its 
customers. 
To do this, the Company 
applies the five-step model in the FASB’s 
guidance, which requires the Company to: (i) identify 
the contract with a customer; (ii) identify the performance 
obligations in the contract; (iii) determine the transaction price; 
(iv) allocate 
the transaction price to the performance obligations in the 
contract; and (v) recognize revenue when, or as, the Company 
satisfies a 
performance obligation. 
The Company identifies a contract with a customer when a 
sales agreement indicates approval and commitment of the parties; 
identifies the rights of the parties; identifies the payment 
terms; has commercial substance; and it is probable that the 
Company will 
collect the consideration to which it will be entitled in 
exchange for the goods or services that will be transferr 
ed to the customer. 
In 
most instances, the Company’s 
contract with a customer is the customer’s 
purchase order. 
For certain customers, the Company may 
also enter into a sales agreement which outlines a 
framework of terms and conditions which apply to all future 
and subsequent 
purchase orders for that customer. 
In these situations, the Company’s 
contract with the customer is both the sales agreement as well as 
the specific customer purchase order. 
Because the Company’s contract 
with a customer is typically for a single transaction or 
customer purchase order, the duration 
of the contract is almost always one year or less. 
As a result, the Company has elected to apply 
certain practical expedients and omit certain disclosures of 
remaining performance obligations for contracts that have an 
initial term of 
one year or less as permitted by the FASB. 
The Company identifies a performance obligation in a 
contract for each promised good or service that is separately identifiable 
from other obligations in the contract and for which the 
customer can benefit from the good or service either on its own or together 
with other resources that are readily available to 
the customer. 
The Company determines the transaction price as the amount 
of 
consideration it expects to be entitled to in exchange 
for fulfilling the performance obligations, including the 
effects of any variable 
consideration, significant financing elements, amounts 
payable to the customer or noncash consideration. 
For any contracts that have 
more than one performance obligation, the Company 
allocates the transaction price to each performance obligation 
in an amount that 
depicts the amount of consideration to which the Company 
expects to be entitled in exchange for satisfying each performance 
obligation. 
In accordance with the last step of the FASB’s 
guidance, the Company recognizes revenue when, 
or as, it satisfies the 
performance obligation in a contract by transferring control 
of a promised good or providing the service to the customer. 
The 
Company recognizes revenue over time as the customer 
receives and consumes the benefits provided by the Company’s 
performance; 
the Company’s performance 
creates or enhances an asset that the customer controls as the 
asset is created or enhanced; or the 
Company’s performance 
does not create an asset with an alternative use to the entity, 
and the entity has an enforceable right to 
payment, including a profit margin, for performance 
completed to date. 
For performance obligations not satisfied over time, the 
Company determines the point in time at which a customer 
obtains control of an asset and the Company satisfies a performance 
obligation by considering when the Company has a right 
to payment for the asset; the customer has legal title to the 
asset; the 
Company has transferred physical possession of the asset; the 
customer has the significant risks and rewards of ownership 
of the asset; 
or the customer has accepted the asset.
 

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
66 
The Company typically satisfies its performance obligations 
and recognizes revenue at a point in time for product 
sales, generally 
when products are shipped or delivered to the customer, 
depending on the terms underlying each arrangement. 
In circumstances 
where the Company’s 
products are on consignment, revenue is generally recognized 
upon usage or consumption by the customer. 
For 
any Fluidcare or other services provided by the Company 
to the customer, the Company typically satisfies its 
performance obligations 
and recognizes revenue over time, as the promised services 
are performed. 
The Company uses input methods to recognize revenue 
over time related to these services, including labor costs 
and time incurred. 
The Company believes that these input methods represent 
the most indicative measure of the Fluidcare or other service 
work performed by the Company. 
Other Considerations 
The Company does not have standard payment terms for 
all customers, however the Company’s 
general payment terms require 
customers to pay for products or services provided after 
the performance obligation is satisfied. 
The Company does not have 
significant financing arrangements with its customers. 
The Company does not have significant amounts of variable 
consideration in 
its contracts with customers and where applicable, 
the Company’s estimates of variable 
consideration are not constrained. 
The 
Company records certain third-party license fees in 
other income (expense), net, in its Consolidated Statement 
of Income, which 
generally include sales-based royalties in exchange for 
the license of intellectual property. 
These license fees are recognized in 
accordance with their agreed-upon terms and when performance 
obligations are satisfied, which is generally when the 
third party has a 
subsequent sale. 
Practical Expedients and Accounting Policy Elections 
The Company has made certain accounting 
policy elections and elected to use certain practical expedients as permitted 
by the 
FASB in applying 
the guidance on revenue recognition. 
The Company does not adjust the promised amount of consideration for 
the 
effects of a significant financing compon 
ent as the Company expects, at contract inception, that the 
period between when the 
Company transfers a promised good or service to the 
customer and when the customer pays for that good or service will be one 
year or 
less. 
In addition, the Company expenses 
costs to obtain a contract as incurred when the expected 
period of benefit, and therefore the 
amortization period, is one year or less. 
In addition, the Company excludes from the measurement of 
the transaction price all taxes 
assessed by a governmental authority that are both imposed 
on and concurrent with a specific revenue-producing 
transaction and 
collected by the entity from a customer, 
including sales, use, value added, excise and various other taxes. 
Lastly, the Company 
has 
elected to account for shipping and handling activities that 
occur after the customer has obtained control of a good 
as a fulfilment cost, 
rather than an additional promised service. 
Contract Assets and Liabilities 
The Company recognizes a contract asset or receivable 
on its Consolidated Balance Sheet when the Company performs 
a service 
or transfers a good in advance of receiving consideration. 
A receivable is the Company’s 
right to consideration that is unconditional 
and only the passage of time is required before payment 
of that consideration is due. 
A contract asset is the Company’s right 
to 
consideration in exchange for goods 
or services that the Company has transferred to a customer. 
The Company had no material 
contract assets recorded on its Consolidated Balance Sheets 
as of December 31, 2020 and 2019. 
A contract liability is recognized when the Company 
receives consideration, or if it has the unconditional right 
to receive 
consideration, in advance of performance. 
A contract liability is the Company’s 
obligation to transfer goods or services to a customer 
for which the Company has received consideration, 
or a specified amount of consideration is due, from the customer. 
The Company’s 
contract liabilities primarily represent deferred revenue 
recorded for customer payments received by the Company 
prior to the 
Company satisfying the associated performance obligation. 
The Company acquired and recorded an immaterial 
amount of deferred 
revenue as of the respective opening balance sheet dates 
related to the Combination and Norman Hay acquisition. 
Deferred revenues 
are presented within other accrued liabilities in the Company’s 
Consolidated Balance Sheets. 
The Company had approximately $
4.0
 
million and $
2.2
 
million of deferred revenue as of December 31, 2020 and 2019, 
respectively. 
During the years ended December 31, 
2020 and 2019, 
respectively, the Company satisfied 
all of the associated performance obligations and recognized 
into revenue the 
advance payments received and recorded as of December 
31, 2020, 2019 and 2018, respectively. 
Disaggregated Revenue 
The Company sells its various industrial process fluids, 
its specialty chemicals and its technical expertise as a global 
product 
portfolio. 
The Company generally manages and evaluates its performance 
by segment first, and then by customer industry, 
rather than 
by individual product lines. 
Also, net sales of each of the Company’s 
major product lines are generally spread throughout all three 
of 
the Company’s geographic 
regions, and in most cases, approximately proportionate 
to the level of total sales in each region.
 

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
67 
The following tables present disaggregated information 
regarding the Company’s net 
sales, first by major product lines that 
represent more than 10% of the Company’s 
consolidated net sales for any of the years ended December 
31, 2020, 2019 and 2018, 
and 
followed then by a disaggregation of the Company’s 
net sales by segment, geographic region, customer industry, 
and timing of 
revenue recognized for the years ended December 31, 2020, 
2019 and 2018.
 
2020 
2019 
2018 
Metal removal fluids 
23.9
% 
19.9
% 
15.4
% 
Rolling lubricants 
21.8
% 
21.9
% 
25.5
% 
Hydraulic fluids 
13.3
% 
13.0
% 
13.0
%
 
Net sales for the year ending December 31, 2020 
Consolidated 
Americas 
EMEA 
Asia/Pacific 
Total 
Customer Industries 
Metals 
$ 
163,135
$ 
107,880
$ 
168,096
$ 
439,111
Metalworking and other 
287,026
275,307
147,203
709,536
450,161
383,187
315,299
1,148,647
Global Specialty Businesses 
154,796
68,164
46,070
269,030
$ 
604,957
$ 
451,351
$ 
361,369
$ 
1,417,677
Timing of Revenue Recognized 
Product sales at a point in time 
$ 
580,663
$ 
434,549
$ 
352,917
$ 
1,368,129
Services transferred over time 
24,294
16,802
8,452
49,548
$ 
604,957
$ 
451,351
$ 
361,369
$ 
1,417,677
 
Net sales for the year ending December 31, 2019 
Consolidated 
Americas 
EMEA 
Asia/Pacific 
Total 
Customer Industries 
Metals 
$ 
171,784
$ 
100,605
$ 
141,870
$ 
414,259
Metalworking and other 
220,337
184,965
105,969
511,271
392,121
285,570
247,839
925,530
Global Specialty Businesses 
149,428
30,115
28,430
207,973
$ 
541,549
$ 
315,685
$ 
276,269
$ 
1,133,503
Timing of Revenue Recognized 
Product sales at a point in time 
$ 
525,802
$ 
310,274
$ 
269,228
$ 
1,105,304
Services transferred over time 
15,747
5,411
7,041
28,199
$ 
541,549
$ 
315,685
$ 
276,269
$ 
1,133,503

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
68 
Net sales for the year ending December 31, 2018 
Consolidated 
Americas 
EMEA 
Asia/Pacific 
Total 
Customer Industries 
Metals 
$ 
164,263
$ 
101,028
$ 
120,627
$ 
385,918
Metalworking and other 
133,338
115,956
71,875
321,169
297,601
216,984
192,502
707,087
Global Specialty Businesses 
122,165
16,613
21,655
160,433
$ 
419,766
$ 
233,597
$ 
214,157
$ 
867,520
Timing of Revenue Recognized 
Product sales at a point in time 
$ 
408,402
$ 
233,372
$ 
206,112
$ 
847,886
Services transferred over time 
11,364
225
8,045
19,634
$ 
419,766
$ 
233,597
$ 
214,157
$ 
867,520
Note 6 – Leases 
As previously disclosed in the Company’s 
2019 Form 10-K, during 2019, the Company adopted, as required, 
an accounting 
standard update regarding the accounting and disclosure 
for leases which changed the manner in which it accounts for 
leases effective 
January 1, 2019. 
The Company determines if an arrangement is a lease at its inception. 
This determination generally depends on 
whether the arrangement conveys the right to control the 
use of an identified fixed asset explicitly or implicitly for a period 
of time in 
exchange for consideration. 
Control of an underlying asset is conveyed if the Company 
obtains the rights to direct the use of, and 
obtains 
substantially all of the economic benefits from the use of, 
the underlying asset. 
Lease expense for variable leases and short-
term leases is recognized when the obligation is incurred. 
 
The Company has operating leases for certain facilities, vehicles 
and machinery and equipment with remaining lease terms up 
to 
11
 
years. 
In addition, the Company has certain land use leases with remaining 
lease terms up to 
95
 
years. 
The lease term for all of the 
Company’s leases includes 
the non-cancellable period of the lease plus any additional periods 
covered by an option to extend the lease 
that the Company is reasonably certain it will exercise. 
Operating leases are included in 
right of use lease assets
, other current 
liabilities and long-term 
lease liabilities
 
on the Consolidated Balance Sheet. 
Right of use lease assets and liabilities are recognized 
at 
each lease’s commencement 
date based on the present value of its lease payments over its respective 
lease term. 
The Company uses 
the stated borrowing rate for a lease when readily 
determinable. 
When a stated borrowing rate is not available in a lease agreement, 
the Company uses its incremental borrowing rate 
based on information available at the lease’s 
commencement date to determine the 
present value of its lease payments. 
In determining the incremental borrowing rate used to present 
value each of its leases, the 
Company considers certain information including fully 
secured borrowing rates readily available to the Company and its subsidiaries. 
The Company has immaterial finance leases, which are 
included in PP&E, current portion of long-term debt and long-term debt 
on the 
Consolidated Balance Sheet.
 
Operating lease expense is recognized on a straight-line 
basis over the lease term. 
Operating lease expense for the years ended 
December 31, 2020 and 2019 was $
14.2
 
million and $
9.4
 
million, respectively. 
Short-term lease expense for the years ended 
December 31, 2020 and 2019 was $
1.3
 
million and $
1.5
 
million, respectively. 
The Company has 
no
 
material variable lease costs or 
sublease income for the years ended December 31, 
2020 and 2019. 
Cash paid for operating leases during the years ended December 
31, 2020 and 2019 was $
14.1
 
million and $
9.2
 
million, 
respectively. 
The Company recorded new right of use lease assets and associated lease liabilities 
of $
6.9
 
million during the year 
ended December 31, 2020.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
69 
Supplemental balance sheet information related to the Company’s 
leases is as follows:
 
December 31, 
December 31, 
2020 
2019 
Right of use lease assets 
$ 
38,507
$ 
42,905
Other accrued liabilities 
10,901
11,177
Long-term lease liabilities 
27,070
31,273
Total operating 
lease liabilities 
$ 
37,971
$ 
42,450
Weighted average 
remaining lease term (years) 
6.0
6.2
Weighted average 
discount rate 
4.20%
4.21%
Maturities of operating lease liabilities as of December 
31, 2020 were as follows:
 
December 31, 
2020 
For the year ended December 31, 2021 
$ 
12,342
For the year ended December 31, 2022 
8,395
For the year ended December 31, 2023 
6,220
For the year ended December 31, 2024 
4,610
For the year ended December 31, 2025 
3,836
For the year ended December 31, 2026 and beyond 
8,141
Total lease payments 
43,544
Less: imputed interest 
(5,573)
Present value of lease liabilities 
$ 
37,971
Note 7 – Restructuring and Related Activities 
The Company’s management 
approved a global restructuring plan (the “QH Program”) 
as part of its plan to realize certain cost 
synergies associated with the Combination 
in the third quarter of 2019. 
The QH Program includes restructuring and associated 
severance costs to reduce total headcount by approximately 
350
 
people globally, as well as plans 
for the closure of certain 
manufacturing and non-manufacturing facilities. 
The exact timing and total costs associated with the QH Program 
will depend on a 
number of factors and is subject to change; however, 
the Company currently expects reduction in headcount and 
site closures to 
continue to occur into 2021 under the QH Program 
and estimates that anticipated cost synergies realized from 
the QH Program will 
approximate one-times the restructuring costs incurred. 
Employee separation benefits will vary depending on local 
regulations within 
certain foreign countries and will include severance 
and other benefits. 
All costs incurred to date relate to severance costs to reduce 
headcount as well as costs to close certain facilities and are 
recorded 
in restructuring and related charges in the 
Company’s Consolidated Statements of 
Income. 
As described in Note 4 of Notes to 
Consolidated Financial Statements, restructuring and 
related charges are not included in the Company’s 
calculation of reportable 
segments’ measure of operating earnings and therefore 
these costs are not reviewed by or recorded to reportable segments.
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
70 
Activity in the Company’s 
accrual for restructuring under the QH Program for the years ended 
December 31, 2020 and 2019 is as 
follows:
 
QH Program 
Accrued restructuring as of December 31, 2018 
$ 
-
Restructuring and related charges 
26,678
Cash payments 
(8,899)
Currency translation adjustments 
264
Accrued restructuring as of December 31, 2019 
18,043
Restructuring and related charges 
5,541
Cash payments 
(15,745)
Currency translation adjustments 
409
Accrued restructuring as of December 31, 2020 
$ 
8,248
In connection with the plans for closure of certain 
manufacturing and non-manufacturing facilities, the Company 
made a decision 
to make available for sale certain facilities. 
During the fourth quarter of 2020, certain of these facilities were 
sold and the Company 
recognized a loss on disposal of approximately $
0.6
 
million included within other expense, net on the Consolidated 
Statement of 
Income. 
Additionally, certain 
buildings and land with an aggregate book value of 
approximately $
10.0
 
million continues to be held-
for-sale as of December 31, 2020 and are 
recorded in other current assets on the Company’s 
Consolidated Balance Sheet.
 
Note 8 – Share-Based Compensation 
The Company recognized the following share-based compensation 
expense in its Consolidated Statements 
of Income for the years 
ended December 31, 2020, 2019 and 2018:
 
2020 
2019 
2018 
Stock options 
$ 
1,491
$ 
1,448
$ 
1,053
Non-vested stock awards and restricted stock units 
5,012
3,206
2,459
Non-elective and elective 401(k) matching contribution in 
stock 
3,112
—
—
Employee stock purchase plan 
—
84
89
Director stock ownership plan 
541
123
123
Performance stock units 
840
—
—
Annual incentive plan (1) 
—
—
—
Total share-based 
compensation expense 
$ 
10,996
$ 
4,861
$ 
3,724
(1) Refer to the section entitled 
Annual Incentive Plan
 
below for additional information.
Share-based compensation expense is recorded in SG&A, 
except for $
1.5
 
million, $
0.9
 
million and $
0.1
 
million during the years 
ended December 31, 2020, 
2019 and 2018, 
respectively, recorded 
within Combination, 
integration and other acquisition-related 
expenses. 
The increase in total share-based compensation expense for 
the year ended December 31, 2020 includes performance stock 
units and non-elective and elective 401(k) matching 
contributions in stock as components of share-based compensation 
beginning in 
2020, described further below.
 

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
71 
Stock Options
 
Stock option activity under all plans is as follows:
 
Weighted 
Weighted 
Average 
Average 
Exercise 
Remaining 
Aggregate 
Number of 
Price 
Contractual 
Intrinsic 
Options 
(per option) 
Term 
(years) 
Value 
Options outstanding as of January 1, 2020 
144,412
$ 
137.15
Options granted 
49,115
136.64
Options exercised 
(83,191)
128.42
Options outstanding as of December 31, 2020 
110,336
$ 
143.51
5.2
$ 
12,015
Options expected to vest after December 31, 2020 
92,890
$ 
144.86
5.6
$ 
9,990
Options exercisable as of December 31, 2020 
17,446
$ 
136.32
3.4
$ 
2,025
The total intrinsic value of options exercised during the years ended 
December 31, 2020, 2019 and 2018 was approximately 
$6.5
 
million, 
$2.5
 
million and 
$2.0
 
million, respectively. 
Intrinsic value is calculated as the difference between 
the current market price of 
the underlying security and the strike price of a related 
option.
 
A summary of the Company’s 
outstanding stock options as of December 31, 2020 is as follows:
 
Weighted 
Average 
Weighted 
Weighted 
Number 
Remaining 
Average 
Number 
Average 
Range of 
of Options 
Contractual 
Exercise Price 
of Options 
Exercise Price 
Exercise Prices 
Outstanding 
Term 
(years) 
(per option) 
Exercisable 
(per option) 
$ 
70.01
 
- 
$ 
80.00
 
2,133
1.0
$ 
72.12
2,133
$ 
72.12
$ 
80.01
 
- 
$ 
90.00
 
1,309
1.0
87.30
1,309
87.30
$ 
90.01
 
- 
$ 
130.00
 
—
— 
—
—
—
$ 
130.01
 
- 
$ 
140.00
 
51,732
6.0
136.54
2,617
134.60
$ 
140.01
 
- 
$ 
150.00
 
—
— 
—
—
—
$ 
150.01
 
- 
$ 
160.00
 
55,162
4.8
154.14
11,387
154.37
110,336
5.2
143.51
17,446
136.32
As of December 31, 2020, unrecognized compensation expense 
related to options granted in 2020, 2019 and 2018 was 
$1.2
 
million, 
$0.3
 
million and less than 
$0.1
 
million, respectively, to be 
recognized over a weighted average period of 
1.9
 
years.
 
The Company granted stock options under its LTIP 
plan that are subject only to time vesting generally over a 
three-year period 
during 2020, 
2019, 
2018 and 2017. 
For the purposes of determining the fair value of stock option 
awards, the Company uses the 
Black-Scholes option pricing model and the assumptions 
set forth in the table below:
 
2020 
2019 
2018 
2017 
Number of stock options granted 
49,115
51,610
35,842
42,477
Dividend yield 
0.99
% 
1.12
% 
1.37
% 
1.49
% 
Expected volatility 
31.57
% 
26.29
% 
24.73
% 
25.52
% 
Risk-free interest rate 
0.36
% 
1.52
% 
2.54
% 
1.67
% 
Expected term (years) 
4.0
4.0
4.0
4.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
72 
The fair value of these options is being amortized on a 
straight-line basis over the respective vesting period of each award. 
The 
compensation expense recorded on each award during 
the years ended December 31, 2020, 2019 and 2018, respectively, 
is as follows:
 
2020 
2019 
2018 
2020 Stock option awards 
$ 
385
$ 
—
$ 
—
2019 Stock option awards 
698
665
—
2018 Stock option awards 
357
364
310
2017 Stock option awards 
51
369
367
Restricted Stock Awards 
Activity of non-vested restricted stock awards granted 
under the Company’s LTIP 
plan is shown below:
 
Number of 
Weighted Average 
Grant 
Shares 
Date Fair Value 
(per share) 
Nonvested awards, December 31, 2019 
64,500
$ 
152.67
 
Granted 
28,244
145.63
 
Vested 
(19,195)
148.15
 
Forfeited 
(1,781)
150.27
 
Nonvested awards, December 31, 2020 
71,768
$ 
151.17
 
The fair value of the non-vested stock is based on the trading 
price of the Company’s 
common stock on the date of grant. 
The 
Company adjusts the grant date fair value for expected 
forfeitures based on historical experience for similar 
awards. 
As of December 
31, 2020, unrecognized compensation expense related to 
these awards was 
$4.7
 
million, to be recognized over a weighted average 
remaining period of 
1.6
 
years. 
Restricted Stock Units 
Activity of non-vested restricted stock units granted under 
the Company’s LTIP 
plan is shown below:
 
Number of 
Weighted Average 
Grant 
Units 
Date Fair Value 
(per unit) 
Nonvested awards, December 31, 2019 
8,655
$ 
152.09
 
Granted 
6,030
141.65
 
Vested 
(1,791)
141.92
 
Forfeited 
(2,049)
153.50
 
Nonvested awards, December 31, 2020 
10,845
$ 
147.70
 
The fair value of the non-vested restricted stock units is based 
on the trading price of the Company’s 
common stock on the date of 
grant. 
The Company adjusts the grant date fair value for expected forfeitures 
based on historical experience for similar awards. 
As of 
December 31, 2020, unrecognized compensation expense 
related to these awards was 
$0.8
 
million, to be recognized over a weighted 
average remaining period of 
2.0
 
years.
 
Performance Stock Units 
In March 2020, the Company included performance 
-dependent stock awards (“PSUs”) as a component of its LTIP, 
which will be 
settled in a certain number of shares subject to market 
-based and time-based vesting conditions. 
The number of fully vested shares 
that may ultimately be issued as settlement for each 
award may range from 
0
% up to 
200
% of the target award, subject to the 
achievement of the Company’s 
total shareholder return (“TSR”) relative to the performance 
of the Company’s peer 
group, the S&P 
Midcap 400 Materials group. 
The service period required for the PSUs is three years and 
the TSR measurement period for the PSUs is 
from January 1, 2020 through December 31, 2022. 
Compensation expense for PSUs is measured based on 
their grant date fair value and is recognized on a straight-line basis over 
the three-year vesting period. 
The grant-date fair value of the PSUs was estimated using a 
Monte Carlo simulation on the grant date 
and using the following assumptions: (i) a risk-free 
rate of 
0.28
%; (ii) an expected term of 
3.0
 
years; and (iii) a three-year daily 
historical volatility for each of the companies in the 
peer group, including Quaker Houghton. 
 

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
73 
As of December 31, 2020, the Company estimates that it will issue 
approximately 
20,000
 
fully vested shares as of the settlement 
date of the award based on the conditions of the 
PSUs and Company’s closing 
stock price on December 31, 2020. 
As of December 
31, 2020, there was approximately $
2.5
 
million of total unrecognized compensation cost related to PSUs which 
the Company expects 
to recognize over a weighted-average period of 
2.2
 
years.
 
Annual Incentive Plan 
The Company maintains an Annual Incentive Plan 
(“AIP”), which may be settled in cash or a certain number of 
shares subject to 
performance-based and time-based vesting conditions. 
As previously disclosed within the Company’s 
Form 10-Q for the first three 
quarters of 2020, it was the Company’s 
intention at that time to settle the 2020 AIP in shares, and 
therefore, expense associated with 
the AIP in 2020 was recorded as a component of share 
-based compensation expense during the first nine months of 2020. 
In the fourth quarter of 2020, the Company determined 
that it would settle the current year AIP in cash. 
Therefore, the share-
based compensation associated with the AIP during 
the year ended December 31, 2020 was reclassified from a 
component of share-
based compensation expense to incentive compensation. 
This determination and conclusion had no impact on 
the classification of 
AIP expense within the Company’s 
Consolidated Statement of Income for the year ended December 
31, 2020 as both are a component 
of SG&A. 
As a result of the change, there was an immaterial impact 
on the Company’s calculation 
of diluted earnings per share for the year 
ended December 31, 2020 as the Company no longer considers 
the estimated number of shares related to a hypothetical 
AIP 
settlement in shares as a component of its diluted earnings 
per share calculation. 
In addition, there was no impact on the Company’s 
Consolidated Balance Sheet as of December 31, 2020, as the 
AIP was and 
continues to be classified as a liability and included within 
accrued compensation. 
Similarly, there was a 
reclassification on the 
Company’s Consolidated 
Statement of Cash Flow between lines within Net cash provided by 
operating activities in the fourth quarter 
of 2020. 
The expected cash flow impact of the AIP settled in cash is presented 
as a component of accounts payable and accrued 
liabilities for the year ended December 31, 2020.
 
Defined Contribution Plan 
The Company has a 401(k) plan with an employer 
match covering a majority of its U.S. employees. 
The Company matches 
50
% 
of the first 
6
% of compensation that is contributed to the plan, with a maximum 
matching contribution of 
3
% of compensation. 
Additionally, the 
plan provides for non-elective nondiscretionary contributions 
on behalf of participants who have completed one year 
of service equal to 
3
% of the eligible participant's compensation. 
The Company’s matching contributions 
and non-elective 
contributions may be made in cash or in fully vested shares 
of the Company’s common 
stock. 
Beginning in April 2020, 
the Company 
began matching both non-elective and elective 401(k) 
contributions in fully vested shares of its common stock rather than 
cash. 
For 
the year ended December 31, 2020, total contributions 
were $
3.1
 
million.
 
Employee Stock Purchase Plan 
In 2000, the Board adopted an Employee Stock Purchase 
Plan (“ESPP”) whereby employees may purchase Company stock 
through a payroll deduction plan. 
Purchases were made from the plan and credited to each 
participant’s account on 
the last day of 
each calendar month in which the organized 
securities trading markets in the U.S. were open for business (the 
“Investment Date”). 
The purchase price of the stock was 
85
% of the fair market value on the Investment Date. 
The plan was compensatory, 
and the 
15
% 
discount was expensed on the Investment Date. 
All employees, including officers, were eligible to participate 
in this plan. 
A 
participant could withdraw all uninvested payment 
balances credited to a participant’s 
account at any time. 
An employee whose stock 
ownership of the Company exceeds five percent of 
the outstanding common stock was not eligible to participate in this plan. 
Effective January 1, 2020, the Company 
discontinued the ESPP.
 
2013 Director Stock Ownership Plan 
In 2013, the Company adopted the 2013 Director Stock 
Ownership Plan (the “Plan”), to encourage the Directors to increase their 
investment in the Company, 
which was approved at the Company’s 
May 2013 shareholders’ meeting. 
The Plan authorizes the 
issuance of up to 
75,000
 
shares of Quaker common stock in accordance with 
the terms of the Plan in payment of all or a portion of the 
annual cash retainer payable to each of the Company’s 
non-employee directors in 2013 and subsequent years during 
the term of the 
Plan. 
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. 
The annual retainer is $
0.1
 
million and the retainer payment date is June 1.
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
74 
Note 9 – Other Expense, net
 
Other expense, net, for the years ended December 31, 2020, 
2019 and 2018 are as follows:
 
2020 
2019 
2018 
Income from third party license fees 
$ 
999
$ 
1,035
$ 
862
Foreign exchange (losses) gains, net 
(6,082)
223
(807)
(Loss) gain on fixed asset disposals, net 
(871)
58
657
Non-income 
tax refunds and other related credits 
3,345
1,118
668
Pension and postretirement benefit costs, non-service components 
(21,592)
(2,805)
(2,285)
Gain on changes in insurance settlement restrictions of an 
inactive 
 
subsidiary and related insurance insolvency recovery 
18,144
60
90
Other 
non-operating income, net 
439
57
173
Total other 
expense, net 
$ 
(5,618)
$ 
(254)
$ 
(642)
Pension and postretirement benefit costs, non-service components 
during the year ended December 31, 2020 include a 
$
1.6
 
million refund in premium and a $
22.7
 
million non-cash settlement charge related to the 
Legacy Quaker U.S. Pension Plan, as 
described in Note 21 of Notes to Consolidated Financial Statements. 
Gain on changes in insurance restrictions of an inactive 
subsidiary and related insurance insolvency recovery relate 
to the termination of restrictions over certain cash that was previously 
designated solely to be used for settlement of asbestos 
claims at an inactive subsidiary of the Company and 
cash proceeds from an 
insolvent insurance carrier with respect to previously 
filed recovery claims. 
See Note 12, Note 19 and Note 26 of Notes to 
Consolidated Financial Statements. 
Foreign exchange (losses) gains, net, during the years 
ended December 31, 2020, 
2019 and 2018, 
include foreign currency transaction losses of approximately 
$
0.4
 
million, $
1.0
 
million and $
0.4
 
million, respectively, 
related to 
hyper-inflationary accounting for the Company’s 
Argentine subsidiaries, and specific to 2018, 
a foreign currency transaction gain of 
approximately $
0.4
 
million related to the liquidation of an inactive legal entity. 
See Note 1 of Notes to Consolidated Financial 
Statements. 
(Loss) gain on fixed asset disposals, net, during the year 
ended December 31, 2020 and 2018, included $
0.6
 
million loss 
and a $
0.6
 
million gain, respectively, 
on the sale of held-for-sale assets related to the Combination.
 
Note 10 – Taxes 
on Income
 
On December 22, 2017, the U.S. government enacted 
comprehensive tax legislation commonly referred to as U.S. Tax 
Reform. 
U.S. Tax Reform 
implemented a new system of taxation for non-U.S. earnings which 
eliminated U.S. federal income taxes on 
dividends from certain foreign subsidiaries and imposed 
a one-time transition tax on the deemed repatriation of undistributed 
earnings 
of certain foreign subsidiaries that is payable over eight 
years. 
Following numerous regulations, notices, and other formal 
guidance published by the Internal Revenue Service (“I.R.S.”), 
U.S. 
Department of Treasury, 
and various state taxing authorities, the Company has completed 
its accounting for the transition tax and has 
elected to pay its $
15.5
 
million transition tax in installments over eight years as permitted 
under U.S. Tax 
Reform. 
As of December 
31, 2020, $
7.0
 
million in installments have been paid with the remaining 
$
8.5
 
million to be paid through installments in future years. 
As of December 31, 2020, the Company has a deferred 
tax liability of $
5.9
 
million on certain undistributed foreign earnings, 
which primarily represents the Company’s 
estimate of the non-U.S. income taxes the Company will incur 
to ultimately remit certain 
earnings to the U.S. 
The Company’s reinvestment 
assertions are further explained below.
 
 

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
75 
Taxes on income 
before equity in net income of associated companies for the 
years ended December 31, 2020, 2019 and 2018 are 
as follows:
 
2020 
2019 
2018 
Current: 
Federal 
$ 
(1,359)
$ 
(239)
$ 
6,583
State 
1,171
352
(1,844)
Foreign 
33,173
26,213
12,114
32,985
26,326
16,853
Deferred: 
Federal 
(28,437)
(9,267)
7,859
State 
(3,087)
(396)
(173)
Foreign 
(6,757)
(14,579)
511
Total 
$ 
(5,296)
$ 
2,084
$ 
25,050
The components of earnings before income taxes for the 
years ended December 31, 2020, 2019 and 2018 are as follows:
 
2020 
2019 
2018 
U.S. 
$ 
(66,585)
$ 
(46,697)
$ 
27,387
Foreign 
93,724
75,601
55,711
Total 
$ 
27,139
$ 
28,904
$ 
83,098
Total deferred 
tax assets and liabilities are composed of the following 
as of December 31, 2020 and 2019:
 
2020 
2019 
Retirement benefits 
$ 
15,237
$ 
15,142
Allowance for doubtful accounts 
2,316
2,253
Insurance and litigation reserves 
842
1,002
Performance incentives 
5,914
7,213
Equity-based compensation 
1,282
1,050
Prepaid expense 
756
2,976
Insurance settlement 
—
3,895
Operating loss carryforward 
16,693
16,044
Foreign tax credit and other credits 
24,873
34,384
Interest 
16,812
11,479
Restructuring reserves 
1,121
2,167
Right of use lease assets 
9,346
10,015
Royalties and license fees 
—
2,156
Inventory reserves 
2,225
2,163
Research and development 
7,974
2,580
Other 
3,005
1,317
108,396
115,836
Valuation 
allowance 
(21,511)
(13,834)
Total deferred 
tax assets, net 
$ 
86,885
$ 
102,002
Depreciation 
15,473
17,754
Foreign pension and other 
1,807
1,269
Amortization and other 
222,794
254,359
Lease liabilities 
9,151
9,965
Outside basis in equity investment 
7,938
6,776
Unremitted Earnings 
5,919
8,228
Total deferred 
tax liabilities 
$ 
263,082
$ 
298,351

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
76 
The Company has $
11.3
 
million of deferred tax assets related to state net operating 
losses. 
A partial valuation allowance of $
8.0
 
million has been established against this amount resulting 
in a net $
3.3
 
million expected future benefit. 
Management analyzed the 
expected impact of the reversal of existing taxable temporary 
differences, considered expiration dates, analyzed 
current state tax laws, 
and determined that $
3.3
 
million of state net operating loss carryforwards will be 
realized based on the reversal of deferred tax 
liabilities. 
These state net operating losses are subject to various 
carryforward periods of 
5
 
years to 
20
 
years or an indefinite 
carryforward period. 
An additional $
1.0
 
million of valuation allowance was established for other net 
state deferred tax assets. 
The Company has $
5.4
 
million of deferred tax assets related to foreign net operating 
loss carryforwards. 
A partial valuation 
allowance of $
1.7
 
million has been established against the $
5.4
 
million due to the expected expiration of these losses before 
they are 
able to be utilized. 
These foreign net operating losses are subject to various carryforward 
periods with the majority having an 
indefinite carryforward period. 
An additional partial valuation allowance of $
0.6
 
million has been established against certain other 
foreign deferred tax assets. 
In conjunction with the Combination, the Company 
acquired foreign tax credit deferred tax assets of $
41.8
 
million expiring 
between 2019 and 2028. 
Foreign tax credits may be carried forward for 
10
 
years. 
As of December 31, 2019, the foreign tax credit 
carry forward was $
33.7
 
million with an $
8.2
 
million valuation allowance recorded against the deferred 
tax asset. 
Management 
analyzed the expected impact of the utilization of foreign 
tax credits based on certain assumptions such as projected 
U.S. taxable 
income, overall domestic loss recapture, and annual limitations due 
to the ownership change under the Internal Revenue 
Code. 
Consequently, as of 
December 31, 2020, the foreign tax credit carry forward 
was $
24.9
 
million with a $
10.2
 
million valuation 
allowance reflecting the amount of credits that are not 
expected to be utilized before expiration. 
The Company also acquired disallowed interest deferred 
tax assets of $
14.0
 
million as part of the Combination. 
Disallowed 
interest may be carried forward indefinitely. 
Management analyzed the expected impact of the utilization 
of disallowed interest 
carryforwards based on projected US taxable income 
and determined that the Company will utilize all expected future 
benefits by 
2022. 
As of December 31, 2020, the Company had a net realizable disallowed 
interest carryforward of $
15.7
 
million on its balance 
sheet. 
As of December 31, 2020, the Company had deferred tax 
liabilities of $
222.8
 
million primarily related to the step-up in 
intangibles resulting from the Combination and Norman 
Hay acquisition. 
As part of the Combination, the Company acquired a 
50
% interest in the Korea Houghton Corporation joint venture and 
has 
recorded a $
7.9
 
million deferred tax liability for its outside basis difference. 
The following are the changes in the Company’s 
deferred tax asset valuation allowance for the years ended 
December 31, 2020, 
2019 and 2018:
 
Effect of 
Balance at 
Purchase 
Additional 
Allowance 
Exchange 
Balance 
Beginning 
Accounting 
Valuation 
Utilization 
Rate 
at End 
of Period 
Adjustments 
Allowance 
and Other 
Changes 
of Period 
Valuation 
Allowance 
Year 
ended December 31, 2020 
$ 
13,834
$ 
7,148
$ 
2,738
$ 
(2,153)
$ 
(56)
$ 
21,511
Year 
ended December 31, 2019 
$ 
7,520
$ 
13,752
$ 
832
$ 
(8,227)
$ 
(43)
$ 
13,834
Year 
ended December 31, 2018 
$ 
7,401
$ 
—
$ 
650
$ 
(471)
$ 
(60)
$ 
7,520
The Company’s net deferred 
tax assets and liabilities are classified in the Consolidated Balance 
Sheets 
as of December 31, 2020 
and 2019 as follows:
 
2020 
2019 
Non-current deferred tax assets 
$ 
16,566
$ 
14,745
Non-current deferred tax liabilities 
192,763
211,094
Net deferred tax liability 
$ 
(176,197)
$ 
(196,349)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
77 
The following is a reconciliation of income taxes at the Federal 
statutory rate with income taxes recorded by the Company 
for the 
years ended December 31, 2020, 2019 and 2018:
 
2020 
2019 
2018 
Income tax provision at the Federal statutory tax rate 
$ 
5,699
$ 
6,070
$ 
17,458
Unremitted earnings 
(2,308)
(4,383)
7,857
Tax law changes 
/ reform 
(1,059)
(416)
(3,118)
Sub part F / Global intangible low taxed income 
5,140
574
2,095
Pension settlement 
(2,247)
—
—
Foreign derived intangible income 
(7,339)
(1,699)
(1,034)
Non-deductible acquisition expenses 
131
1,743
1,019
Withholding taxes 
7,809
8,621
1,161
Foreign tax credits 
(4,699)
(3,787)
(1,911)
Share-based compensation 
335
(540)
259
Foreign tax rate differential 
596
920
1,081
Research and development credit 
(475)
(306)
(230)
Uncertain tax positions 
1,990
899
(79)
State income tax provisions, net 
(2,245)
(117)
196
Non-deductible meals and entertainment 
290
318
415
Intercompany transfer of intangible assets 
(4,384)
(5,318)
—
Miscellaneous items, net 
(2,530)
(495)
(119)
Taxes on income 
before equity in net income of associated companies 
$ 
(5,296)
$ 
2,084
$ 
25,050
Pursuant to U.S. Tax 
Reform, the Company recorded a $
15.5
 
million transition tax liability for U.S. income taxes on the 
undistributed earnings of non-U.S. subsidiaries. 
However, the Company may also 
be subject to other taxes, such as withholding taxes 
and dividend distribution taxes, if these undistributed 
earnings are ultimately remitted to the U.S. 
As a result of the Combination, 
additional third-party debt was incurred resulting in 
the Company re-evaluating its global cash strategy in order 
to meet its goal of 
reducing leverage in upcoming years. 
As of December 31, 2020, the Company has a deferred tax 
liability $
5.9
 
million, which 
primarily represents the estimate of the non-U.S. 
taxes the Company will incur to ultimately remit these earnings to 
the U.S. 
It is the 
Company’s current inten 
tion to reinvest its additional undistributed earnings of non-U.S. 
subsidiaries to support working capital needs 
and certain other growth initiatives outside of the U.S. 
The amount of such undistributed earnings at December 31, 2020 was 
approximately $
322.6
 
million. 
Any tax liability which might result from ultimate remittance 
of these earnings is expected to be 
substantially offset by foreign tax credits (subject 
to certain limitations). 
It is currently impractical to estimate any such incremental 
tax expense. 
As of December 31, 2020, the Company’s 
cumulative liability for gross unrecognized tax benefits was $
22.2
 
million. The 
Company had accrued approximately $
3.9
 
million for cumulative penalties and $
3.0
 
million for cumulative interest as of December 
31, 2020. 
As of December 31, 2019, the Company’s 
cumulative liability for gross unrecognized tax benefits was $
19.1
 
million. The 
Company had accrued approximately $
3.1
 
million for cumulative penalties and $
2.3
 
million for cumulative interest as of December 
31, 2019. 
The Company continues to recognize interest and penalties 
associated with uncertain tax positions as a component of 
tax expense 
on income before equity in net income of associated companies 
in its Consolidated Statements of Income. 
The Company recognized 
an expense of less than $
0.1
 
million for penalties and $
0.6
 
million for interest (net of expirations and settlements) in its Consolidated 
Statement of Income for the year ended December 31, 
2020, a credit of $
0.2
 
million for penalties and an expense of $
0.2
 
million for 
interest (net of expirations and settlements) in its Consolidated 
Statement of Income for the year ended December 31, 2019, and 
a 
credit of $
0.2
 
million for penalties and a credit of $
0.1
 
million for interest (net of expirations and settlements) 
in its Consolidated 
Statement of Income for the year ended December 31, 
2018. 
The Company estimates that during the year ending December 
31, 2021, it will reduce its cumulative liability for gross 
unrecognized tax benefits by approximately $
1.5
 
million due to the expiration of the statute of limitations with regard 
to certain tax 
positions. 
This estimated reduction in the cumulative liability for unrecognized 
tax benefits does not consider any increase in liability 
for unrecognized tax benefits with regard to existing tax 
positions or any increase in cumulative liability for unrecognized 
tax benefits 
with regard to new tax positions for the year ending December 
31, 2021. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
78 
A reconciliation of the beginning and ending amounts 
of unrecognized tax benefits for the years ended December 
31, 2020, 2019 
and 2018, respectively, 
is as follows:
 
2020 
2019 
2018 
Unrecognized tax benefits as of January 1 
$ 
19,097
$ 
7,050
$ 
6,761
Increase (decrease) in unrecognized tax benefits taken 
in prior periods 
2,025
(28)
(183)
Increase in unrecognized tax benefits taken in current period 
3,095
1,935
2,023
Decrease in unrecognized tax benefits due to lapse of statute of 
limitations 
(3,659)
(1,029)
(1,292)
Increase in unrecognized tax benefits due to acquisition 
597
11,301
—
Increase (decrease) due to foreign exchange rates 
997
(132)
(259)
Unrecognized tax benefits as of December 
31 
$ 
22,152
$ 
19,097
$ 
7,050
The amount of net unrecognized tax benefits above that, if 
recognized, would impact the Company’s 
tax expense and effective tax 
rate is $
14.7
 
million, $
13.3
 
million and $
2.2
 
million for the years ended December 31, 2020, 2019 
and 2018, respectively. 
The Company and its subsidiaries are subject to U.S. Federal income 
tax, as well as the income tax of various state and foreign 
tax jurisdictions. 
Tax years that remain 
subject to examination by major tax jurisdictions include Italy 
from 
2006
, Brazil from 
2011
, 
Mexico, the Netherlands and China from 
2015
, Spain, Germany and the United Kingdom from 
2016
, Canada and the U.S. from 
2017
, 
India from fiscal year beginning April 1, 
2018
 
and ending March 31, 2019, and various U.S. state tax jurisdictions 
from 
2011
. 
As previously reported, the Italian tax authorities have 
assessed additional tax due from the Company’s 
subsidiary, Quaker Italia 
S.r.l., relating to the tax 
years 2007 through 2015. The Company filed for competent authority 
relief from these assessments under the 
Mutual Agreement Procedures (“MAP”) of the Organization 
for Economic Co-Operation and Development for all 
years except 2007. 
In 2020, the respective tax authorities in Italy, 
Spain, and Netherland reached agreement with respect to the 
MAP proceedings, which 
the Company has accepted. As a result, the Company has 
recorded an estimated tax liability of $
0.9
 
million to finalize these 
proceedings, net of refunds expected to be received from 
the Spanish and Dutch tax authorities. 
As of December 31, 2020, the 
Company believes it has adequate reserves for uncertain 
tax positions with respect to these and all other audits. 
Houghton Italia, S.r.l 
is also currently involved in a corporate income tax audit with the 
Italian tax authorities covering tax years 
2014 through 2018. 
As of December 31, 2020, the Company has a $
5.8
 
million reserve for uncertain tax positions relating to matters 
related to this audit. 
Since this reserve relates to the tax periods prior to August 1, 
2019, the tax liability was established through 
purchase accounting related to the Combination. 
The Company has also submitted an indemnification claim 
against funds held in 
escrow by Houghton’s former 
owners and as a result, a corresponding $
5.8
 
million indemnification receivable has also been 
established through purchase accounting. 
Houghton Deutschland GmbH is also under audit by 
the German tax authorities for tax years 2015-2017. 
Based on preliminary 
audit findings, primarily related to transfer pricing, the 
Company has recorded a reserve for $
0.9
 
million as of December 31, 2020. 
Of 
this amount, $
0.8
 
million relates to tax periods prior to the Combination and 
therefore the Company has submitted an indemnification 
claim with Houghton’s 
former owners for any tax liabilities arising pre-Combination. 
As a result, a corresponding $
0.8
 
million 
indemnification receivable has also been established 
to offset the $
0.8
 
million tax liability.
 

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
79 
Note 11 – Earnings Per Share 
The following table summarizes earnings per share calculations 
for the years ended December 31, 2020, 2019 and 2018:
 
2020 
2019 
2018 
Basic earnings per common share 
 
Net income attributable to Quaker Chemical Corporation 
$ 
39,658
$ 
31,622
$ 
59,473
Less: income allocated to participating securities 
 
(148)
 
(90)
 
(253)
Net income available to common shareholders 
$ 
39,510
$ 
31,532
$ 
59,220
Basic weighted average common shares outstanding 
17,719,792
15,126,928
13,268,047
Basic earnings per common share 
$ 
2.23
$ 
2.08
$ 
4.46
Diluted earnings per common share 
Net income attributable to Quaker Chemical Corporation 
$ 
39,658
$ 
31,622
$ 
59,473
Less: income allocated to participating securities 
(148)
(90)
(252)
Net income available to common shareholders 
$ 
39,510
$ 
31,532
$ 
59,221
Basic weighted average common shares outstanding 
17,719,792
15,126,928
13,268,047
Effect of dilutive securities 
31,087
36,243
36,685
Diluted weighted 
average common shares outstanding 
17,750,879
15,163,171
13,304,732
Diluted earnings per common share 
$ 
2.22
$ 
2.08
$ 
4.45
The Company’s calculation 
of earnings per diluted share attributable to Quaker Chemical Corporation 
common shareholders for 
the year ended December 31, 2019 was impacted by the 
variability of its reported earnings during the year and the approximately 
4.3
 
million shares issued as a component of the consideration transferred 
in the Combination, comprising 
24.5
% of the common stock of 
the Company immediately after the closing. 
Certain stock options and restricted stock units are not included 
in the diluted earnings 
per share calculation because the effect would 
have been anti-dilutive. 
The calculated amount of anti-diluted shares not included were 
945
 
in 2020, 
108
 
in 2019 and 
1,808
 
in 2018.
 
Note 12 – Restricted Cash 
Prior to December 2020, the Company had 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 were restricted and could 
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 
were deposited 
into interest bearing accounts which earned less then $
0.1
 
million and $
0.2
 
million in the years ended December 31, 2020 and 2019, 
respectively, offset 
by $
1.0
 
million and $
0.8
 
million of net payments during 2020 and 2019, respectively. 
Due to the restricted nature 
of the proceeds, a corresponding deferred credit was established 
in other non-current liabilities for an equal and offsetting 
amount. 
During December 2020, the restrictions ended on these 
previously received insurance settlements and the 
Company transferred 
the cash into an operating account. 
In connection with the termination in restrictions, the Company 
recognized an $
18.1
 
million gain 
on its Consolidated Statement of Income in Other expense, 
net, for the amount of previously restricted cash, net of the 
estimated 
liability to pay claims and associated with the inactive 
subsidiary’s asbestos litigation as of 
December 31, 2020. 
See Notes 18, 22 and 
26 of Notes to Consolidated Financial Statements.
 
The following table provides a reconciliation of cash, 
cash equivalents and restricted cash as December 31, 2020, 2019, 
2018 and 
2017:
 
2020 
2019 
2018 
2017 
Cash and cash equivalents 
$ 
181,833
$ 
123,524
$ 
104,147
$ 
89,879
Restricted cash included in other current assets 
62
353
—
—
Restricted cash included in other assets 
—
19,678
20,278
21,171
Cash, cash equivalents and restricted cash 
$ 
181,895
$ 
143,555
$ 
124,425
$ 
111,050

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
80 
Note 13 – Accounts Receivable and Allowance for Doubtful Accounts 
As of December 31, 2020 and 2019, the Company 
had gross trade accounts receivable totaling 
$386.1
 
million and 
$387.7
 
million, 
respectively. 
The Company recognizes an allowance for credit losses, which 
represents the portion of the receivable that the Company does 
not 
expect to collect over its contractual life, considering 
past events and reasonable and supportable forecasts of 
future economic 
conditions. 
The Company estimates credit losses for trade receivables by 
aggregating similar customer types, because they tend to 
share similar credit risk characteristics. 
The Company’s allowance 
for credit losses on its trade accounts receivable is based on 
specific collectability facts and circumstances for each 
outstanding receivable and customer, the 
aging of outstanding receivables, and 
the associated collection risk the Company estimates for certain 
past due aging categories, and also, the general risk to all outstanding 
accounts receivable based on historical amounts determined to 
be uncollectible. 
Trade and other receivables are written off 
when 
there is no reasonable expectation of recovery.
 
The following are changes in the allowance for doubtful 
accounts during the years ended December 31, 2020, 2019 and 2018:
 
Exchange Rate 
Balance at 
Changes 
Write-Offs 
Changes 
Balance 
Beginning 
to Costs and 
Charged to 
and Other 
at End 
of Period 
Expenses 
Allowance 
Adjustments 
of Period 
Allowance for Doubtful Accounts 
Year 
ended December 31, 2020 
$ 
11,716
$ 
3,582
$ 
(2,187)
$ 
34
$ 
13,145
Year 
ended December 31, 2019 
$ 
5,187
$ 
1,925
$ 
(322)
$ 
4,926
$ 
11,716
Year 
ended December 31, 2018 
$ 
5,457
$ 
493
$ 
(295)
$ 
(468)
$ 
5,187
Included in exchange rate changes and other adjustments for 
the year ended December 31, 2019 are the allowance for 
doubtful 
accounts of $
5.0
 
million related to the acquired receivables in connection with 
the Combination and Norman Hay acquisition. 
See 
Note 2 of Notes to Consolidated Financial Statements. 
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.
 
Note 14 – Inventories 
Inventories, net, as of December 31, 2020 and 2019 were 
as follows:
 
2020 
2019 
Raw materials and supplies 
$ 
86,148
$ 
82,058
Work in 
process, finished goods and reserves 
101,616
92,892
Total inventories, 
net 
$ 
187,764
$ 
174,950
Note 15 – Property, 
Plant and Equipment 
Property, plant and 
equipment as of December 31, 2020 and 2019 were as follows:
 
2020 
2019 
Land 
$ 
33,009
$ 
34,686
Building and improvements 
135,595
130,462
Machinery and equipment 
246,242
225,636
Construction in progress 
8,407
8,050
Property, plant and 
equipment, at cost 
423,253
398,834
Less: accumulated depreciation 
(219,370)
(185,365)
Total property, 
plant and equipment, net 
$ 
203,883
$ 
213,469
As of December 31, 2020, PP&E includes $
0.4
 
million of finance lease assets and future minimum lease payments. 
In connection 
with the plans for closure of certain facilities, certain buildings and land with an aggregate book value of approximately $10.0 million 
continue to be held-for-sale as of December 31, 2020 and are recorded in other current assets on the Company’s Consolidated Balance 
Sheet.
 

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
81 
Note 16 – Goodwill and Other Intangible Assets
 
Changes in the carrying amount of goodwill for the 
years ended December 31, 2020 and 2019 were as follows:
 
Global 
Specialty 
Americas 
EMEA 
Asia/Pacific 
Businesses 
Total 
Balance as of December 31, 2018 
$ 
28,464
$ 
17,423
$ 
13,149
$ 
24,297
 
$ 
83,333
Goodwill additions 
188,494
114,167
130,091
91,545
524,297
Currency translation adjustments 
 
(573)
1,428
(1,513)
233
(425)
Balance as of December 31, 2019 
216,385
133,018
141,727
116,075
 
607,205
Goodwill additions 
1,485
531
—
1,329
3,345
Currency translation and other 
 
adjustments 
(4,628)
6,613
16,363
2,314
20,662
Balance as of December 31, 2020 
$ 
213,242
$ 
140,162
$ 
158,090
$ 
119,718
$ 
631,212
Other adjustments in the table above includes updates to 
the Company’s allocation 
of the Houghton purchase price and associated 
goodwill to each of the Company’s 
reportable segments during the year ended December 31, 2020, 
including a $
2.6
 
million decrease 
in the Americas, a $
1.4
 
million decrease in EMEA, a $
8.0
 
million increase in Asia/Pacific and a $
0.5
 
million increase in Global 
Specialty Businesses. 
Gross carrying amounts and accumulated amortization 
for definite-lived intangible assets as of December 31, 2020 and 
2019 were 
as follows:
 
Gross Carrying 
Accumulated 
Amount 
Amortization 
2020 
2019 
2020 
2019 
Customer lists and rights to sell 
$ 
839,551
$ 
792,362
 
$ 
99,806
 
$ 
49,932
Trademarks, formulations and product 
technology 
 
166,448
 
157,049
 
30,483
 
21,299
Other 
 
6,372
 
6,261
 
5,824
 
5,776
Total definite 
-lived intangible assets 
$ 
1,012,371
 
$ 
955,672
 
$ 
136,113
 
$ 
77,007
The Company recorded $
55.9
 
million, $
26.7
 
million and $
7.3
 
million of amortization expense during the years ended December 
31, 2020, 2019 and 2018, respectively. 
Amortization is recorded within SG&A in the Company’s 
Consolidated Statements of Income. 
Estimated annual aggregate amortization expense for 
the subsequent five years is as follows:
 
For the year ended December 31, 2021 
$ 
58,752
For the year ended December 31, 2022 
58,590
For the year ended December 31, 2023 
58,361
For the year ended December 31, 2024 
57,935
For the year ended December 31, 2025 
57,263
The Company has four indefinite-lived intangible 
assets totaling $
205.1
 
million as of December 31, 2020, including $
204.0
 
million of indefinite-lived intangible assets for trademarks and 
tradename associated with the Combination. 
Comparatively, the 
Company had four indefinite-lived intangible assets for trademarks 
and tradename totaling $
243.1
 
million as of December 31, 2019.
 
The Company completes its annual goodwill and indefinite 
-lived intangible asset impairment test during the fourth 
quarter of 
each year, or more frequently if triggering 
events indicate a possible impairment in one or more of its reporting 
units. 
The Company 
completed its annual impairment assessment during the 
fourth quarter of 2020 and concluded no impairment charge 
was warranted. 
The Company continually evaluates financial performance, 
economic conditions and other relevant developments 
in assessing if an 
interim period impairment test for one or more of 
its reporting units is necessary. 
As of March 31, 2020, the Company evaluated the initial impact 
of COVID-19 on the Company’s 
operations, and the volatility 
and uncertainty in the economic outlook as a result of 
COVID-19 to determine if they indicated it was more likely 
than not that the 
carrying value of any of the Company’s 
reporting units or indefinite-lived or long-lived assets was not recoverable. 
The Company 
concluded that the impact of COVID-19 did not represent 
a triggering event as of March 31, 2020 with regards to the Company’s 
reporting units or indefinite-lived and long-lived assets, except 
for the Company’s Houghton 
and Fluidcare trademarks 
and tradename 
indefinite-lived intangible assets.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
82 
The determination of estimated fair value of the Houghton 
and Fluidcare trademarks and tradename indefinite-lived 
assets was 
based on a relief from royalty valuation method which 
requires management’s 
judgment and often involves the use of significant 
estimates and assumptions, including assumptions with respect 
to the weighted average cost of capital (“WACC”) 
and royalty rates, as 
well as revenue growth rates and terminal growth rates. 
In the first quarter of 2020, as a result of the impact of 
COVID-19 driving a 
decrease in projected legacy Houghton net sales in the 
current year and the impact of the current year decline on projected 
future 
legacy Houghton net sales as well as an increase in the WACC 
assumption utilized in the quantitative impairment 
assessment, the 
Company concluded that the estimated fair values of 
the Houghton and Fluidcare trademarks and tradename intangible 
assets were 
less than their carrying values. 
As a result, an impairment charge of $
38.0
 
million, primarily related to the Houghton trademarks and 
tradename, to write down the carrying values of these intangible 
assets to their estimated fair values was recorded in the 
first quarter 
of 2020. 
As of December 31, 2020, the Company continued to 
evaluate the on-going impact of COVID-19 on the Company’s 
operations, 
and the volatility and uncertainty in the economic outlook 
as a result of COVID-19, to determine if this indicated it was more 
likely 
than not that the carrying value of any of the Company’s 
reporting units or indefinite-lived or long-lived intangible 
assets were not 
recoverable. 
The Company concluded that the impact of COVID-19 did not represent 
a triggering event as of December 31, 2020 
with regards to any of the Company’s 
reporting units or indefinite-lived and long-lived intangible 
assets. 
While the Company concluded that the impact of COVID-19 
did not represent a triggering event as of December 31, 
2020 for any 
of its other long-lived or indefinite-lived assets or reporting 
units, the Company will continue to evaluate the impact 
of COVID-19 on 
the Company’s current 
and projected results. 
If the current economic conditions worsen or projections of the 
timeline for recovery are 
significantly extended, then the Company may conclude 
in the future that the impact from COVID-19 requires the need 
to perform 
further interim quantitative impairment tests, which could 
result in additional impairment charges in the future.
 
Note 17 – Investments in Associated Companies 
As of December 31, 2020, the Company held a 
50
% investment in and had significant influence over Nippon 
Quaker Chemical, 
Ltd. (“Nippon Japan”), Kelko Quaker Chemical, S.A. 
(“Kelko Panama”) and Houghton Korea acquired in 2019 in 
connection with the 
Combination, and held a 
32
% investment in and had significant influence over Primex, 
Ltd. (“Primex”). 
See Note 2 of Notes to 
Consolidated Financial Statements. 
The carrying amount of the Company’s 
equity investments as of December 31, 2020 was $
95.8
 
million, which includes 
investments of $
68.3
 
million in Houghton Korea; $
19.4
 
million in Primex; $
7.8
 
million in Nippon Japan; and $
0.3
 
million in Kelko 
Panama. 
The Company also has a 
50
% equity interest in Kelko Venezuela. 
Due to heightened foreign exchange controls, deteriorating 
economic circumstances and other restrictions in Venezuela, 
during 2018 the Company concluded that it no longer 
had significant 
influence over this affiliate. 
Prior to this determination, the Company historically accounted for 
this affiliate under the equity method. 
As of December 31, 2020 and 2019, the Company 
had 
no
 
remaining carrying value for its investment in Kelko Venezuela.
 
The following table is a summary of equity income in associated 
companies by investment for the years ending December 31, 
2020, 2019 and 2018:
 
Year 
Ended December 31, 
2020 
2019 
2018 
Houghton Korea 
$ 
5,241
$ 
2,337
$ 
—
Nippon Japan 
853
850
713
Kelko Panama 
107
55
222
Kelko Venezuela 
—
—
(138)
Primex 
1,151
1,822
966
Total equity 
in net income of associated companies 
$ 
7,352
$ 
5,064
$ 
1,763
As the Combination closed on August 1, 2019, the Company 
included five months of equity income from Houghton 
Korea in its 
December 31, 2019 Consolidated Statement of Income.
 

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
83 
Note 18 – Other Non-Current Assets 
Other non-current assets as of December 31, 2020 
and 2019 were as follows:
 
2020 
2019 
Uncertain tax positions 
$ 
7,209
$ 
4,993
Pension assets 
 
6,748
 
—
Debt issuance costs 
5,919
7,571
Indemnification assets 
7,615
4,006
Supplemental retirement income program 
 
1,961
 
1,782
Restricted insurance settlement 
—
 
19,678
Other 
2,344
2,403
Total other 
assets 
$ 
31,796
 
$ 
40,433
During December 2020, the restrictions lapsed over certain 
cash that was previously only designated to be used for settlement 
of 
asbestos claims at an inactive subsidiary of the Company. 
As of December 31, 2020 and 2019, indemnification assets relates to 
certain Houghton foreign subsidiaries for which the Company 
expects it will incur additional tax amounts which are subject to 
indemnification under the terms of the Combination 
share and purchase agreement. 
These indemnification assets have a 
corresponding uncertain tax position recorded in 
other non-current liabilities. 
As of December 31, 2020, one of the Company’s 
foreign pension plan’s 
fair value of plan assets exceeded its gross benefit obligation 
and was therefore over-funded, which is 
represented by the line Pension assets in the table above. 
See Notes 10, 12, 21 and 22 of Notes to Consolidated Financial 
Statements.
 
Note 19 – Other Accrued Liabilities 
Other accrued liabilities as of December 31, 2020 and 
2019 were as follows:
 
2020 
2019 
Non-income taxes 
$ 
26,080
$ 
21,176
Current income taxes payable 
13,124
7,503
Professional fees, legal, and acquisition-related accruals 
11,437
17,103
Short-term lease liabilities 
10,901
11,177
Selling expenses and freight accruals 
10,475
11,350
Customer advances and sales return reserves 
6,380
5,554
Other 
13,710
9,742
Total other 
accrued liabilities 
$ 
92,107
$ 
83,605
Note 20 – Debt 
Debt as of December 31, 2020 and 2019 includes the 
following:
 
As of December 31, 2020 
As of December 31, 2019 
Interest 
Outstanding 
Interest 
Outstanding 
Rate 
Balance 
Rate 
Balance 
Credit Facilities: 
Revolver 
1.65%
$ 
160,000
3.20%
$ 
171,169
U.S. Term Loan 
1.65%
570,000
3.20%
600,000
EURO Term Loan 
1.50%
157,062
1.50%
151,188
Industrial development bonds 
5.26%
10,000
5.26%
10,000
Bank lines of credit and other debt obligations 
Various 
2,072
Various 
2,608
Total debt 
$ 
899,134
$ 
934,965
Less: debt issuance costs 
(11,099)
(14,196)
Less: short-term and current portion of long-term debts 
(38,967)
(38,332)
Total long 
-term debt 
$ 
849,068
$ 
882,437

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
84 
Credit facilities 
The Company’s primary 
credit facility (as amended, the “Credit Facility”) is comprised 
of a $
400.0
 
million multicurrency 
revolver (the “Revolver”), a $
600.0
 
million term loan (the “U.S. Term 
Loan”), each with the Company as borrower, 
and a $
150.0
 
million (as of August 1, 2019) Euro equivalent term loan (the 
“EURO Term Loan” 
and together with the “U.S. Term 
Loan”, the 
“Term Loans” 
) 
with Quaker Chemical B.V., 
a Dutch subsidiary of the Company as borrower, 
each with a five-year term maturing in 
August 2024. 
Subject to the consent of the administrative agent and certain 
other conditions, the Company may designate additional 
borrowers. 
The maximum amount available under the Credit Facility can be 
increased by up to $
300.0
 
million at the Company’s 
request if there are lenders who agree to accept additional 
commitments and the Company has satisfied certain other 
conditions. 
Borrowings under the Credit Facility bear interest at a base 
rate or LIBOR plus an applicable margin based upon 
the Company’s 
consolidated net leverage ratio. 
There are LIBOR replacement provisions that contemplate a further 
amendment if and when LIBOR 
ceases to be reported. 
The variable interest rate incurred on the outstanding borrowings under 
the Credit Facility during the year 
ended December 31, 2020 was approximately 
2.2
%. 
As of December 31, 2020, the variable interest rate on the outstanding 
borrowings under the Credit Facility was approximately 
1.6
%. 
In addition to paying interest on outstanding principal under 
the Credit 
Facility, the Company 
is required to pay a commitment fee ranging from 
0.2
% to 
0.3
% depending on the Company’s 
consolidated net 
leverage ratio to the lenders under the Revolver in 
respect of the unutilized commitments thereunder. 
The Company has unused 
capacity under the Revolver of approximately $
234
 
million, net of bank letters of credit of approximately $
6
 
million, as of December 
31, 2020. 
Until closing of the Combination, the Company incurred ticking 
fees to maintain the bank commitment, which began to 
accrue on September 29, 2017. 
Concurrent with the closing of the Combination and executing the 
Credit Facility on August 1, 2019, 
the Company paid approximately $
6.3
 
million of ticking fees. 
The Credit Facility is subject to certain financial and 
other covenants. 
The Company’s initial consolidated net debt to 
consolidated adjusted EBITDA ratio could not exceed 4.25 to 1, with step downs in the permitted ratio over the term of the Credit 
Facility.  As of December 31, 2020, the consolidated net debt to adjusted EBITDA may not exceed 4.00 to 1.  The Company’s 
consolidated adjusted EBITDA to interest expense ratio cannot be less than 3.0 to 1 over the term of the agreement.  The Credit 
Facility also prohibits the payment of cash dividends if the Company is in default or if the amount of the dividend paid annually 
exceeds the greater of $50.0 million and 20% of consolidated adjusted EBITDA unless the ratio of consolidated net debt to 
consolidated adjusted EBITDA is less than 2.0 to 1, in which case there is no such limitation on amount.
 
As of December 31, 2020 
and December 31, 2019, the Company was in compliance with all of the Credit Facility covenants.
 
The Term Loans have 
quarterly 
principal amortization during their 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 amount due at 
maturity. 
During the year ended December 31, 2020, the 
Company made four quarterly amortization payments 
related to the Term Loans 
totaling $
37.6
 
million. 
The Credit Facility is 
guaranteed by certain of the Company’s 
domestic subsidiaries and is secured by first priority liens on substantially 
all of the assets of 
the Company and the domestic subsidiary guarantors, 
subject to certain customary exclusions. 
The obligations of the Dutch borrower 
are guaranteed only by certain foreign subsidiaries on 
an unsecured basis. 
The Credit Facility required the Company to fix its variable 
interest rates on at least 20% of its total Term 
Loans. 
In order to 
satisfy this requirement as well as to manage the 
Company’s exposure to variable 
interest rate risk associated with the Credit Facility, 
in November 2019, the Company entered into $
170.0
 
million notional amounts of three-year interest rate swaps at a base 
rate of 
1.64
% plus an applicable margin as provided in the Credit 
Facility, based on the Company’s 
consolidated net leverage ratio. 
At the 
time the Company entered into the swaps, and as 
of December 31, 2020, 
the aggregate interest rate on the swaps, including the fixed 
base rate plus an applicable margin, was 
3.1
%. 
See Note 25 of Notes to Consolidated Financial Statements. 
The Company capitalized $
23.7
 
million of certain third-party debt issuance costs in connection 
with executing the Credit Facility. 
Approximately $
15.5
 
million of the capitalized costs were attributed to the Term 
Loans and recorded as a direct reduction of long-
term debt on the Company’s 
Consolidated Balance Sheet. 
Approximately $
8.3
 
million of the capitalized costs were attributed to the 
Revolver and recorded within other assets on the Company’s 
Consolidated Balance Sheet. 
These capitalized costs are being 
amortized into interest expense over the five-year term 
of the Credit Facility. 
As of December 31, 2020 and 2019, 
the Company had 
$
11.1
 
million and $
14.2
 
million, respectively, 
of debt issuance costs recorded as a reduction of long-term 
debt. 
As of December 31, 
2020 and 2019, the Company had $
5.9
 
million and $
7.6
 
million, respectively, 
of debt issuance costs recorded within other assets.
 
Industrial development bonds 
As of December 31, 2020 and 2019, the Company 
had fixed rate, industrial development authority bonds totaling $
10.0
 
million in 
principal amount due in 
2028
. 
These bonds have similar covenants to the Credit Facility noted 
above. 
The Company also had a $
5.0
 
million industrial development authority bond bearing 
interest at a rate of 
5.60
%, which matured 
and was paid off during the fourth quarter of 
2018
. 

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
85 
Bank lines of credit and other 
debt obligations 
The Company has certain unsecured bank lines of credit 
and discounting facilities in certain foreign subsidiaries, which are 
not 
collateralized. 
The Company’s other debt 
obligations primarily consist of certain domestic and foreign 
low interest rate or interest-
free municipality-related loans, local credit facilities of 
certain foreign subsidiaries and capital lease obligations. 
Total unused 
capacity under these arrangements as of December 
31, 2020 was approximately $
40
 
million. 
In addition to the bank letters of credit described in 
the “Credit facilities” subsection above, the Company’s 
only other off-balance 
sheet arrangements include certain financial and other 
guarantees. 
The Company’s total bank 
letters of credit and guarantees 
outstanding as of December 31, 2020 were approximately 
$
10
 
million. 
The Company incurred the following debt related expenses 
included within Interest expense, net, in the Consolidated 
Statements 
of Income:
 
Year 
Ended December 31, 
2020 
2019 
2018 
Interest expense 
$ 
23,552
$ 
16,788
$ 
6,158
Amortization of debt issuance costs 
4,749
1,979
70
Total 
$ 
28,301
$ 
18,767
$ 
6,228
Based on the variable interest rates associated with the Credit 
Facility, as of December 
31, 2020 and 2019, the amounts at which 
the Company’s total debt 
were recorded are not materially different from 
their fair market value.
 
At December 31, 2020, annual maturities on long-term 
borrowings maturing in the next five fiscal years (excluding 
the reduction 
to long-term debt attributed to capitalized and unamortized 
debt issuance costs) are as follows:
 
2021 
$ 
38,795
2022 
57,850
2023 
76,943
2024 
715,227
2025 
231
Note 21 – Pension and Other Postretirement 
Benefits 
The following table shows the funded status of the Company’s 
plans’ reconciled 
with amounts reported in the Consolidated 
Balance Sheets as of December 31, 2020 and 2019:
 
Other Post- 
Pension Benefits 
Retirement Benefits 
2020 
2019 
2020 
2019 
Foreign 
U.S. 
Total 
Foreign 
U.S. 
Total 
U.S. 
U.S. 
Change in benefit obligation 
Gross benefit obligation at beginning 
of year 
$
217,893
$
153,723
$
371,616
$
111,316
$
58,734
$
170,050
$
4,266
$
4,106
Service cost 
4,340
491
4,831
3,507
434
3,941
5
6
Interest cost 
3,416
2,923
6,339
3,046
3,313
6,359
77
143
Employee contributions 
73
—
73
73
—
73
—
—
Effect of plan amendments 
—
50
50
30
—
30
—
—
Curtailment gain 
(2,324)
—
(2,324)
—
—
—
—
—
Plan settlements 
(2,316)
(53,494)
(55,810)
(1,087)
—
(1,087)
—
—
Benefits paid 
(5,087)
(6,138)
(11,225)
(3,832)
(6,034)
(9,866)
(250)
(384)
Plan expenses and premiums paid 
(135)
—
(135)
(129)
—
(129)
—
—
Transfer in of business acquisition 
—
—
—
85,658
86,414
172,072
—
—
Actuarial loss (gain) 
16,834
12,414
29,248
13,616
10,862
24,478
(864)
395
Translation differences and 
other 
14,981
—
14,981
5,695
—
5,695
—
—
Gross benefit obligation at end of year 
$
247,675
$
109,969
$
357,644
$
217,893
$
153,723
$
371,616
$
3,234
$
4,266

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
86 
Other Post- 
Pension Benefits 
Retirement Benefits 
2020 
2019 
2020 
2019 
Foreign 
U.S. 
Total 
Foreign 
U.S. 
Total 
U.S. 
U.S. 
Change in plan assets 
Fair value of plan assets at 
beginning of year 
$
195,099
$
120,550
$
315,649
$
94,826
$
49,415
$
144,241
$
—
$
—
Actual return on plan assets 
20,367
10,759
31,126
13,458
10,663
24,121
—
—
Employer contributions 
6,912
2,302
9,214
5,223
1,087
6,310
250
384
Employee contributions 
73
—
73
73
—
73
—
—
Plan settlements 
(2,316)
(53,494)
(55,810)
(1,087)
—
(1,087)
—
—
Benefits paid 
(5,087)
(6,138)
(11,225)
(3,832)
(6,034)
(9,866)
(250)
(384)
Plan expenses and premiums paid 
(135)
(498)
(633)
(129)
(500)
(629)
—
—
Transfer in of business acquisition 
—
—
—
81,068
65,919
146,987
—
—
Translation differences 
13,876
—
13,876
5,499
—
5,499
—
—
Fair value of plan assets at end of year 
$
228,789
$
73,481
$
302,270
$
195,099
$
120,550
$
315,649
$
—
$
—
Net benefit obligation recognized 
$
(18,886)
$
(36,488)
$
(55,374)
$
(22,794)
$
(33,173)
$
(55,967)
$
(3,234)
$
(4,266)
Amounts recognized in the balance 
sheet consist of: 
Non-current assets 
$
6,748
$
—
$
6,748
$
—
$
—
$
—
$
—
$
—
Current liabilities 
(568)
(612)
(1,180)
(359)
(2,620)
(2,979)
(286)
(426)
Non-current liabilities 
(25,066)
(35,876)
(60,942)
(22,435)
(30,553)
(52,988)
(2,948)
(3,840)
Net benefit obligation recognized 
$ 
(18,886)
$
(36,488)
$
(55,374)
$
(22,794)
$
(33,173)
$
(55,967)
$
(3,234)
$
(4,266)
Amounts not yet reflected in net 
periodic benefit costs and included in 
accumulated other comprehensive loss: 
Prior service credit 
(26)
50
24
1,271
—
1,271
—
—
Accumulated loss 
(21,976)
(5,532)
(27,508)
(22,816)
(46,560)
(69,376)
124
(734)
AOCI 
(22,002)
(5,482)
(27,484)
(21,545)
(46,560)
(68,105)
124
(734)
Cumulative employer contributions 
(below) or in excess of 
net periodic 
benefit cost 
3,116
(31,006)
(27,890)
(1,249)
13,387
12,138
(3,358)
(3,532)
Net benefit obligation recognized 
$ 
(18,886)
$
(36,488)
$
(55,374)
$
(22,794)
$
(33,173)
$
(55,967)
$
(3,234)
$
(4,266)
The accumulated benefit obligation for all defined benefit 
pension plans was 
$344.4
 
million 
($109.5
 
million U.S. and 
$234.9
 
million Foreign) and 
$366.0
 
million (
$152.9
 
million U.S. and approximately 
$213.1
 
million Foreign) as of December 31, 2020 and 
2019, respectively. 
Information for pension plans with an accumulated benefit 
obligation in excess of plan assets:
 
2020 
2019 
Foreign 
U.S. 
Total 
Foreign 
U.S. 
Total 
Projected benefit obligation 
$ 
32,373
$ 
109,969
$ 
142,342
$ 
217,893
$ 
153,723
$ 
371,616
Accumulated benefit obligation 
30,892
109,540
140,432
213,060
152,930
365,990
Fair value of plan assets 
18,074
73,481
91,555
195,099
120,550
315,649

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
87 
Information for pension plans with a projected 
benefit obligation in excess of plan assets:
 
2020 
2019 
Foreign 
U.S. 
Total 
Foreign 
U.S. 
Total 
Projected benefit obligation 
$ 
32,373
$ 
109,969
$ 
142,342
$ 
217,893
$ 
153,723
$ 
371,616
Fair value of plan assets 
18,074
73,481
91,555
195,099
120,550
315,649
Components of net periodic benefit costs – pension plans:
 
2020 
2019 
Foreign 
U.S. 
Total 
Foreign 
U.S. 
Total 
Service cost 
$ 
4,340
$ 
491
$ 
4,831
$ 
3,507
$ 
434
$ 
3,941
Interest cost 
3,416
2,923
6,339
3,046
3,313
6,359
Expected return on plan assets 
(4,262)
(4,810)
(9,072)
(3,668)
(3,227)
(6,895)
Settlement loss 
(88)
22,667
22,579
258
—
258
Curtailment charge 
(1,155)
—
(1,155)
—
—
—
Actuarial loss amortization 
886
2,110
2,996
757
2,348
3,105
Prior service (credit) cost 
amortization 
(167)
—
(167)
(165)
—
(165)
Net periodic benefit cost 
$ 
2,970
$ 
23,381
$ 
26,351
$ 
3,735
$ 
2,868
$ 
6,603
 
2018 
Foreign 
U.S. 
Total 
Service cost 
$ 
3,426
$ 
383
$ 
3,809
Interest cost 
2,254
1,847
4,101
Expected return on plan assets 
(2,228)
(2,803)
(5,031)
Settlement loss 
2
—
2
Actuarial loss amortization 
881
2,276
3,157
Prior service (credit) cost amortization 
(175)
59
(116)
Net periodic benefit cost 
$ 
4,160
$ 
1,762
$ 
5,922
Other changes recognized in other comprehensive 
income – pension plans:
 
2020 
2019 
Foreign 
U.S. 
Total 
Foreign 
U.S. 
Total 
Net (gain) loss arising during 
the period 
$ 
(1,594)
$ 
1,536
$ 
(58)
$ 
3,826
$ 
3,926
$ 
7,752
Effect of plan amendment 
Recognition of amortization in net 
periodic benefit cost 
Settlement (loss) 
(39)
(22,667)
(22,706)
—
—
—
Prior service credit (cost) 
1,325
50
1,375
196
—
196
Actuarial loss 
(758)
3,967
3,209
(1,015)
(2,347)
(3,362)
Curtailment Recognition 
(3)
—
(3)
—
—
—
Effect of exchange rates on amounts 
included in AOCI 
1,535
—
1,535
(61)
—
(61)
Total recognized 
in other 
comprehensive loss (income) 
466
(17,114)
(16,648)
2,946
1,579
4,525
Total recognized 
in net periodic 
benefit cost and other 
comprehensive loss (income) 
$ 
3,436
$ 
6,267
$ 
9,703
$ 
6,681
$ 
4,447
$ 
11,128

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
88 
2018 
Foreign 
U.S. 
Total 
Net gain arising during period 
$ 
(663)
$ 
453
$ 
(210)
Recognition of amortization in net periodic benefit 
 
cost 
Prior service credit (cost) 
175
(59)
116
Actuarial loss 
(883)
(2,276)
(3,159)
Effect of exchange rates on amounts included 
 
in AOCI 
(890)
—
(890)
Total recognized 
in other comprehensive loss 
(2,261)
(1,882)
(4,143)
Total recognized 
in net periodic benefit cost and 
other comprehensive loss 
$ 
1,899
$ 
(120)
$ 
1,779
Components of net periodic benefit costs – other postretirement 
plan:
 
2020 
2019 
2018 
Service cost 
$ 
5
$ 
6
$ 
7
Interest cost 
77
143
130
Actuarial loss amortization 
(5)
—
42
Net periodic benefit costs 
$ 
77
$ 
149
$ 
179
Other changes recognized in other comprehensive 
income – other postretirement benefit 
plans:
 
2020 
2019 
2018 
Net (gain) loss arising during period 
$ 
(864)
$ 
395
$ 
(443)
Amortization of actuarial loss in net periodic 
benefit costs 
5
—
(42)
Total recognized 
in other comprehensive (income) 
loss 
(859)
395
(485)
Total recognized 
in net periodic benefit cost and 
other comprehensive (income) loss 
$ 
(782)
$ 
544
$ 
(306)
Weighted-average 
assumptions used to determine benefit obligations as of December 
31, 2020 and 2019:
 
Other Postretirement 
Pension Benefits 
Benefits 
2020 
2019 
2020 
2019 
U.S. Plans: 
Discount rate 
2.19
% 
3.06
% 
2.05
% 
2.98
% 
Rate of compensation increase 
6.00
% 
6.00
% 
N/A 
N/A 
Foreign 
Plans: 
Discount rate 
1.79
% 
1.83
% 
N/A 
N/A 
Rate of compensation increase 
2.74
% 
2.58
% 
N/A 
N/A

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
89 
Weighted-average 
assumptions used to determine net periodic benefit costs for the 
years ended December 31, 2020 and 
2019:
 
Other Postretirement 
Pension Benefits 
Benefits 
2020 
2019 
2020 
2019 
U.S. Plans: 
Discount rate 
3.11
% 
4.08
% 
2.99
% 
4.03
% 
Expected long-term return on 
plan assets 
6.50
% 
5.75
% 
N/A 
N/A 
Rate of compensation increase 
6.00
% 
5.50
% 
N/A 
N/A 
Foreign Plans: 
Discount rate 
2.30
% 
2.30
% 
N/A 
N/A 
Expected long-term return on 
plan assets 
2.20
% 
3.13
% 
N/A 
N/A 
Rate of compensation increase 
2.79
% 
2.87
% 
N/A 
N/A
The long-term rates of return on assets were selected from 
within the reasonable range of rates determined by (a) 
historical real 
returns for the asset classes covered by the investment 
policy and (b) projections of inflation over the long-term period 
during which 
benefits are payable to plan participants. 
See Note 1 of Notes to Consolidated Financial Statements for 
further information. 
Assumed health care cost trend rates 
as of December 31, 2020 and 2019:
 
2020 
2019 
Health care cost trend rate for next year 
5.70
% 
5.90
% 
Rate to which the cost trend rate is assumed to decline (the 
ultimate trend rate) 
4.50
% 
4.50
% 
Year 
that the rate reaches the ultimate trend rate 
2037
2037
Plan Assets and Fair Value 
The Company’s pension 
plan target asset allocation and the weighted-average 
asset allocations as of December 31, 2020 and 2019 
by asset category were as follows:
 
Asset Category 
Target 
2020 
2019 
U.S. Plans 
Equity securities 
10
% 
58
% 
32
% 
Debt securities 
90
% 
36
% 
64
% 
Other 
0
% 
6
% 
4
% 
Total 
100
% 
100
% 
100
% 
Foreign Plans 
Equity securities 
37
% 
33
% 
34
% 
Debt securities 
53
% 
45
% 
45
% 
Other 
10
% 
22
% 
21
% 
Total 
100
% 
100
% 
100
%

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
90 
As of December 31, 2020 and 2019, “Other” consisted principally 
of cash and cash equivalents, and investments in real estate 
funds. 
The following is a description of the valuation methodologies 
used for the investments measured at fair value, including 
the 
general classification of such instruments pursuant to 
the valuation hierarchy, 
where applicable: 
Cash and Cash 
Equivalents 
Cash and 
cash equivalents 
consist of 
cash and 
money market 
funds and 
are classified 
as Level 
1 investments. 
Commingled Funds
 
Investments 
in the U.S. 
pension plan 
and foreign 
pension plan 
commingled 
funds represent 
pooled institutional 
investments, 
including 
primarily 
collective 
investment 
trusts. 
These commingled funds are not available on an exchange or 
in an active market 
and these investments are valued using 
their net 
asset value 
(“NAV”), which is generally 
based on 
the underlying 
asset values 
of the 
investments 
held in the 
trusts. 
As of December 31, 2020, the foreign pension plan commingled 
funds included approximately 
35
 
percent of investments in 
equity securities, 
51
 
percent of investments in fixed income securities, and 
14
 
percent of other non-related investments, primarily 
real estate. 
 
Pooled Separate 
Accounts 
 
Investments 
in the U.S. 
pension plan 
pooled separate 
accounts 
consist of 
annuity contracts 
and are 
valued based 
on the reported 
unit value 
at year 
end. 
Units of 
the pooled 
separate 
account are 
not traded 
on an exchange 
or in an 
active market; 
however, valuation 
is 
based on the 
underlying 
investments 
of each pooled 
separate 
account and 
are classified 
as Level 
2 investments. 
As of December 31, 
2020, the U.S. pension plan pooled separate accounts included approximately 61 percent of investments in equity securities and 39 
percent of investments in fixed income securities.
 
Fixed Income 
Government 
Securities 
Investments in foreign pension plans fixed income government 
securities were valued using third party pricing services 
which are based on a combination of quoted market 
prices on an exchange in an active market as well as proprietary 
pricing 
models and 
inputs using 
observable 
market data 
and are classified 
as Level 
2 investments. 
Insurance 
Contract
 
Investments in the foreign pension plan insurance contract 
are valued at the highest value available for the Company at year 
end, either the reported cash surrender value of the contract 
or the vested benefit obligation. 
Both the cash surrender value and 
the vested benefit obligation are determined based on unobservable 
inputs, which are contractually or actuarially determined, 
regarding returns, fees, the present value of the future cash 
flows of the contract and benefit obligations. 
The contract is classified 
as a Level 3 investment. 
Diversified 
Equity Securities 
- Registered 
Investment 
Companies
 
Investments 
in the foreign 
pension plans 
diversified 
equity securities 
of registered 
investment 
companies 
are based 
upon the 
quoted redemption 
value of 
shares in 
the fund 
owned by the 
plan at year 
end. 
The shares 
of the fund 
are not available 
on an exchange 
or in an 
active market; 
however, the 
fair value 
is determined 
based on 
the underlying 
investments 
in the fund 
as traded 
on an exchange 
in an active 
market and 
are classified 
as Level 
2 investments.
 
Fixed Income 
– Foreign Registered 
Investment 
Companies
 
Investments 
in the foreign 
pension plans 
fixed income 
securities 
of foreign 
registered 
investment 
companies 
are based 
upon the 
quoted redemption 
value of 
shares in 
the fund 
owned by the 
plan at year 
end. 
The shares 
of the fund 
are not available 
on an exchange 
or in an 
active market; 
however, the 
fair value 
is determined 
based on 
the underlying 
investments 
in the fund 
as traded 
on an exchange 
in an active 
market and 
are classified 
as Level 
2 investments.
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
91 
Diversified Investment Fund - Registered 
Investment Companies 
Investments 
in the foreign 
pension plan 
diversified 
investment 
fund of registered 
investment 
companies 
are based 
upon the quoted 
redemption 
value of 
shares in 
the fund 
owned by 
the plan 
at year 
end. 
This fund 
is not available 
on an exchange 
or in an 
active market 
and this investment 
is valued 
using its 
NAV, 
which is 
generally 
based on 
the underlying 
asset values 
of the investments 
held. 
As of 
December 31, 
2020, the 
diversified 
investment 
funds included 
approximately 
62
 
percent of 
investments 
in equity 
securities, 
19
 
percent 
of investments 
in fixed 
income securities, 
and 
19
 
percent of 
other alternative 
investments. 
Other – Alternative Investments 
Investments 
in the foreign 
pension plans 
include certain 
other alternative 
investments 
such as 
inflation 
and interest 
rate swaps. 
These investments 
are valued 
based on 
unobservable 
inputs, 
which are 
contractually 
or actuarially 
determined, 
regarding 
returns, fees, 
the present 
value of 
future cash 
flows of the 
contract and 
benefit obligations. 
These alternative 
investments 
are classified 
as Level 
3 
investments. 
Real Estate
 
The U.S. and foreign pension plans’ investment in real estate consists 
of investments 
in property funds. 
The funds’ 
underlying investments consist of real property which 
are valued using unobservable inputs. 
These property 
funds 
are classified 
as a Level 3 investment.
 
As of December 31, 2020 and 2019, the U.S. and foreign 
plans’ investments measured at fair value on a recurring 
basis were as 
follows:
 
Fair Value 
Measurements at December 31, 2020 
Total 
Using Fair Value 
Hierarchy 
U.S. Pension Assets 
Fair Value 
Level 1 
Level 2 
Level 3 
Pooled separate accounts 
$ 
69,385
$ 
—
$ 
69,385
$ 
—
Real estate 
4,096
—
—
4,096
Subtotal U.S. pension plan assets in fair value hierarch 
y 
$ 
73,481
$ 
—
$ 
69,385
$ 
4,096
Total U.S. pension 
plan assets 
$ 
73,481
Foreign Pension Assets 
Cash and cash equivalents 
$ 
634
$ 
634
$ 
—
$ 
—
Insurance contract 
112,920
—
—
112,920
Diversified equity securities - registered investment companies 
8,851
—
8,851
—
Fixed income – foreign registered investment companies 
3,711
—
3,711
—
Fixed income government securities 
37,579
—
37,579
—
Real estate 
5,679
—
—
5,679
Other - alternative investments 
10,638
—
—
10,638
Sub-total of foreign pension assets in fair value hierarchy 
$ 
180,012
$ 
634
$ 
50,141
$ 
129,237
Commingled funds measured at NAV 
2,368
Diversified investment fund - 
registered investment 
companies measured at NAV 
46,409
Total foreign pension 
assets 
$ 
228,789
Total pension 
assets in fair value hierarchy 
$ 
253,493
$ 
634
$ 
119,526
$ 
133,333
Total pension 
assets measured at NAV 
48,777
Total pension 
assets 
$ 
302,270

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
92 
Fair Value 
Measurements at December 31, 2019 
Total 
Using Fair Value 
Hierarchy 
U.S. Pension Assets 
Fair Value 
Level 1 
Level 2 
Level 3 
Cash and cash equivalents 
$ 
450
$ 
450
$ 
—
$ 
—
Pooled separate accounts 
64,636
—
64,636
—
Real estate 
4,060
—
—
4,060
Subtotal U.S. pension plan assets in fair value hierarch 
y 
$ 
69,146
$ 
450
$ 
64,636
$ 
4,060
Commingled funds measured at NAV 
51,404
Total U.S. pension 
plan assets 
$ 
120,550
Foreign Pension Assets 
Cash and cash equivalents 
$ 
1,502
$ 
1,502
$ 
—
$ 
—
Insurance contract 
92,657
—
—
92,657
Diversified equity securities - registered investment companies 
8,604
—
8,604
—
Fixed income – foreign registered investment companies 
3,021
—
3,021
—
Fixed income government securities 
32,512
—
32,512
—
Real estate 
5,521
—
—
5,521
Other - alternative investments 
9,436
—
—
9,436
Sub-total of foreign pension assets in fair value hierarchy 
$ 
153,253
$ 
1,502
$ 
44,137
$ 
107,614
Commingled funds measured at NAV 
2,037
Diversified investment fund - 
registered investment 
companies measured at NAV 
39,809
Total foreign pension 
assets 
$ 
195,099
Total pension 
assets in fair value hierarchy 
$ 
222,399
$ 
1,952
$ 
108,773
$ 
111,674
Total pension 
assets measured at NAV 
93,250
Total pension 
assets 
$ 
315,649
Certain investments that are measured at fair value using 
the NAV 
per share (or its equivalent) have not been classified in 
the fair 
value hierarchy. 
The fair value amounts presented for these investments in the 
preceding tables are intended to permit reconciliation 
of the fair value hierarchies to the line items presented 
in the statements of net assets available for benefits. 
Changes in the fair value of the plans’ Level 3 investments 
during the years ended December 31, 2020 and 2019 
were as follows:
 
Insurance 
Alternative 
Contract 
Real Estate 
Investments 
Total 
Balance as of December 31, 2018 
$ 
79,873
2,382
—
$ 
82,255
Purchases 
3,762
—
1,029
4,791
Assets acquired in business combinations 
129
7,058
8,914
16,101
Sales 
—
(238)
(278)
(516)
Settlements 
(1,730)
—
—
(1,730)
Unrealized (losses) gains 
12,199
403
(960)
11,642
Currency translation adjustment 
(1,576)
(24)
731
(869)
Balance as of December 31, 2019 
92,657
9,581
9,436
111,674
Purchases 
3,902
18
989
4,909
Settlements 
(2,027)
—
—
(2,027)
Unrealized gains (losses) 
8,917
(16)
(171)
8,730
Currency translation adjustment 
9,471
192
384
10,047
Balance as of December 31, 2020 
$ 
112,920
$ 
9,775
$ 
10,638
$ 
133,333

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
93 
In the fourth quarter of 2018, the Company began the 
process of terminating its Legacy Quaker noncontributory U.S. pension 
plan (“Legacy Quaker U.S. Pension Plan”). 
During the third quarter of 2019, the Company received a favorable 
termination 
determination letter from the Internal Revenue Service 
(“I.R.S.”) and completed the Legacy Quaker U.S. Pension Plan 
termination 
during the first quarter of 2020. 
In order to terminate the Legacy Quaker U.S. Pension Plan 
in accordance with I.R.S. and Pension 
Benefit Guaranty Corporation requirements, the Company 
was required to fully fund the Legacy Quaker U.S. Pension Plan 
on a 
termination basis and the amount necessary to do so 
was approximately $
1.8
 
million, subject to final true up adjustments. 
In the third 
quarter of 2020, the Company finalized the amount 
of the liability and related annuity payments and received 
a refund in premium of 
approximately $
1.6
 
million. 
In addition, the Company recorded a non-cash pension settlement 
charge at plan termination of 
approximately $
22.7
 
million. 
This settlement charge included the immediate 
recognition into expense of the related unrecognized 
losses within AOCI on the balance sheet as of the plan 
termination date. 
In connection with the Combination, the Company indirectly 
acquired all of Houghton’s 
defined benefit pension plans, which are 
included in the tables set forth above. 
The pension plans cover certain U.S. salaried and hourly 
employees as well as certain 
employees in the U.K., France and Germany. 
The Houghton U.S. plans provide benefits based on an employee’s 
years of service and 
compensation received for the highest five consecutive 
years of earnings. 
The foreign plans provide benefits based on a formula of 
years and service and a percentage of compensation 
which varies among the various countries. 
The Company contributes to a multiemployer defined 
benefit pension plan under terms of a collective bargaining 
union contract 
(the Cleveland Bakers and Teamsters 
Pension Fund, Employer Identification Number: 34-0904419 
-001). 
The expiration date of the 
collective bargaining contract is 
May 1, 2022
. 
As of January 1, 2019, the last valuation date available for the multiemployer 
plan, 
total plan liabilities were approximately $
589
 
million. 
As of December 31, 2019, the multiemployer pension plan 
had total plan assets 
of approximately $
364
 
million. 
The Company’s contribution 
rate to the multiemployer pension plan is specified in the 
collective 
bargaining union contract and contributions are 
made to the plan based on its union employee payroll. 
The Company contributed $
0.1
 
million during the year ended December 31, 2020. 
The Employee Retirement Income Security Act of 1974, 
as amended by the Multi-
Employer Pension Plan Amendments Act of 1980, imposes 
certain contingent liabilities upon an employer who is a 
contributor to a 
multiemployer pension plan if the employer withdraws 
from the plan or the plan is terminated or experiences a mass withdrawal. 
While the Company may also have additional liabilities imposed 
by law as a result of its participation in the multiemployer 
defined 
benefit pension plan, there is 
no
 
liability as of December 31, 2020. 
The Pension Protection Act of 2006 (the “PPA”) 
also added special funding and operational rules generally 
applicable to plan 
years beginning after 2007 for multiemployer plans with 
certain classifications based on a multitude of factors (including, 
for 
example, the plan’s funded 
percentage, cash flow position and whether the plan is projected 
to experience a minimum funding 
deficiency). 
The plan to which the Company contributes is in “critical” status. 
Plans in the “critical” status classification must adopt 
measures to improve their funded status through a 
funding improvement or rehabilitation plan which may require additional 
contributions from employers (which may take the form 
of a surcharge on benefit contributions) and/or 
modifications to retiree 
benefits. 
The amount of additional funds that the Company may be obligated 
to contribute to the plan in the future cannot be 
estimated as such amounts will be likely based on 
future levels of work that require the specific use of those 
union employees covered 
by the plan, and the amount of that future work and 
the number of affected employees that may be 
needed is not reasonably estimable. 
Cash Flows 
Contributions 
The Company expects to make minimum cash contributions 
of approximately 
$10.0
 
million to its pension plans (approximately 
$5.9
 
million U.S. and 
$4.1
 
million Foreign) and approximately 
$0.3
 
million to its other postretirement benefit plan in 2021.
 
Estimated Future Benefit Payments 
Excluding any impact related to the PPA 
noted above, the following benefit payments, which reflect 
expected future service, as 
appropriate, are expected to be paid:
 
Other Post- 
Pension Benefits 
Retirement 
Foreign 
U.S. 
Total 
Benefits 
2021 
$ 
6,658
$ 
5,923
$ 
12,581
$ 
286
2022 
6,939
5,298
12,237
278
2023 
7,024
6,072
13,096
265
2024 
6,745
6,234
12,979
245
2025 
7,394
6,228
13,622
226
2025 to 2029 
42,522
30,443
72,965
923

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
94 
The Company maintains a plan under which supplemental 
retirement benefits are provided to certain officers. 
Benefits payable 
under the plan are based on a combination of years of 
service and existing postretirement benefits. 
Included in total pension costs are 
charges of $
2.5
 
million, $
1.8
 
million and $
1.6
 
million for the years ended December 31, 2020, 2019 and 2018, 
respectively, 
representing the annual accrued benefits under this 
plan. 
Defined Contribution Plan 
The Company has a 401(k) plan with an employer 
match covering a majority of its U.S. employees. 
The plan allows for and the 
Company previously paid a nonelective contribution 
on behalf of participants who have completed one year 
of service equal to 3% of 
the eligible participants’ compensation in the form 
of Company common stock. 
During 2019 and 2018, the Company made both non-
elective and elective 401(k) matching contributions 
in cash, rather than stock. 
Beginning in April 2020, the Company began matching 
both non-elective and elective 401(k) contributions in 
fully vested shared 
of the Company’s common 
stock rather than cash. 
See Note 
8 of Notes to Consolidated Financial Statements. 
Total Company 
contributions were $
5.7
 
million, $
4.0
 
million and $
3.1
 
million for 
the years ended December 31, 2020, 2019 and 2018, 
respectively.
 
Note 22 – Other Non-Current Liabilities 
Other non-current liabilities as of December 31, 2020 
and 2019 were as follows:
 
2020 
2019 
Inactive subsidiary litigation and settlement reserve 
$ 
542
 
$ 
19,678
Non-current income taxes payable 
8,500
8,500
Uncertain tax positions (includes interest and penalties) 
 
28,961
 
 
24,609
Fair value of interest rate swaps 
 
4,672
 
 
415
Environmental reserves 
4,610
5,259
Deferred and other long-term compensation 
6,257
6,625
Other 
1,627
1,298
Total other 
non-current liabilities 
$ 
55,169
 
$ 
66,384
       
The line item Inactive subsidiary litigation and settlement 
reserve in the table above was previously titled Restricted insurance 
settlement and has been updated in the current year 
related to the December 2020 termination of restrictions on 
the previously 
restricted amounts, as described in Note 12 of Notes to 
Consolidated Financial Statements.
 
Note 23 – Equity and Accumulated Other Comprehensive 
Loss
 
The Company has 
30,000,000
 
shares of common stock authorized with a par value 
of $
1
, and 
17,850,616
 
and 
17,735,162
 
shares 
issued and outstanding as of December 31, 2020 
and 2019, respectively. 
The change in shares issued and outstanding during 2020 
was primarily related to 
49,906
 
shares issued for share-based compensation plans and 
65,548
 
shares issued for the exercise of stock 
options and other share activity. 
The Company is authorized to issue 
10,000,000
 
shares of preferred stock with $
1
 
par value, subject to approval by the Board of 
Directors. 
The Board of Directors may designate one or more series of preferred 
stock and the number of shares, rights, preferences, 
and limitations of each series. 
As of December 31, 2020, no preferred stock had been issued. 
The Company has a share repurchase program that was approved 
by its Board of Directors in 2015 for the repurchase of up to 
$
100.0
 
million of Quaker Chemical Corporation common stock. 
The Company has not repurchased any shares under the program 
for 
the years ended December 31, 2020, 2019 and 2018. 
As of December 31, 2020, there was approximately $
86.9
 
million of common 
stock remaining to be purchased under this share repurchase 
program.
 

 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
95 
The following table shows the reclassifications from and 
resulting balances of AOCI for the years ended December 
31, 2020, 
2019 and 2018:
 
Defined 
Unrealized 
Gain (Loss) in 
Currency 
Benefit 
Translation 
Pension 
Available-for 
- 
Derivative 
Adjustments 
Plans 
Sale Securities 
Instruments 
Total 
Balance as of December 31, 2017 
$ 
(31,893)
$ 
(34,093)
$ 
886
$ 
—
$ 
(65,100)
Other comprehensive (loss) income before 
 
reclassifications 
(17,429)
1,543
(2,622)
—
(18,508)
Amounts reclassified from AOCI 
—
3,085
435
—
3,520
Related tax amounts 
—
(1,086)
459
—
(627)
Balance as of December 31, 2018 
(49,322)
(30,551)
(842)
—
(80,715)
Other comprehensive income (loss) before 
 
reclassifications 
4,754
(8,088)
2,951
(415)
(798)
Amounts reclassified from AOCI 
—
3,169
(301)
—
2,868
Related tax amounts 
—
937
(557)
95
475
Balance as of December 31, 2019 
(44,568)
(34,533)
1,251
(320)
(78,170)
Other comprehensive income (loss) before 
 
reclassifications 
41,693
(6,617)
2,848
(4,257)
33,667
Amounts reclassified from AOCI 
—
24,141
(202)
—
23,939
Related tax amounts 
—
(6,458)
(555)
979
(6,034)
Balance as of December 31, 2020 
$ 
(2,875)
$ 
(23,467)
$ 
3,342
$ 
(3,598)
$ 
(26,598)
All reclassifications related to unrealized gain (loss) in 
available-for-sale securities relate to the Company’s 
equity interest in a 
captive insurance company and are recorded in equity 
in net income of associated companies. 
The amounts reported in other 
comprehensive income for non-controlling interest are 
related to currency translation adjustments.
 
Note 24 – Fair Value 
Measures 
The Company has valued its company-owned life insurance 
policies at fair value. 
These assets are subject to fair value 
measurement as follows:
 
Fair Value 
Measurements at December 31, 2020 
Total 
Using Fair Value 
Hierarchy 
Assets 
Fair Value 
Level 1 
Level 2 
Level 3 
Company-owned life insurance 
$ 
1,961
$ 
—
$ 
1,961
$ 
—
Total 
$ 
1,961
$ 
—
$ 
1,961
$ 
—
 
Fair Value 
Measurements at December 31, 2019 
Total 
Using Fair Value 
Hierarchy 
Assets 
Fair Value 
Level 1 
Level 2 
Level 3 
Company-owned life insurance 
$ 
1,782
$ 
—
$ 
1,782
$ 
—
Total 
$ 
1,782
$ 
—
$ 
1,782
$ 
—
The fair values of Company-owned life insurance assets are based 
on quotes for like instruments with similar credit ratings and 
terms. 
The Company did not hold any Level 3 investments as of December 
31, 2020 or 2019, 
respectively, so 
related disclosures have 
not been included.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
96 
Note 25 – Hedging Activities 
In order to satisfy certain requirements of the Credit 
Facility as well as to manage the Company’s 
exposure to variable interest 
rate risk associated with the Credit Facility, 
in November 2019, the Company entered into $
170.0
 
million notional amounts of three-
year interest rate swaps. 
See Note 20 of Notes to Consolidated Financial Statements. 
These interest rate swaps are designated as cash 
flow hedges and, as such, the contracts are marked-to-market 
at each reporting date and any unrealized gains or losses are included 
in 
AOCI to the extent effective and reclassified 
to interest expense in the period during which the transaction 
effects earnings or it 
becomes probable that the forecasted transaction will not occur. 
The Company did not utilize derivatives designated as cash flow 
hedges during the year ended December 31, 2018. 
The balance sheet classification and fair values of the 
Company’s derivative instruments, 
which are Level 2 measurements, are as 
follows:
 
Fair Value 
Consolidated Balance Sheet 
December 31, 
Location 
2020 
2019 
Derivatives designated as cash flow hedges: 
Interest rate swaps 
Other non-current liabilities 
$ 
4,672
$ 
415
$ 
4,672
$ 
415
The following table presents the net unrealized loss deferred to 
AOCI:
 
December 31, 
2020 
2019 
Derivatives designated as cash flow hedges: 
Interest rate swaps 
AOCI 
$ 
3,598
$ 
320
$ 
3,598
$ 
320
The following table presents the net loss reclassified from 
AOCI to earnings:
 
For the Years 
Ended 
December 31, 
2020 
2019 
2018 
Amount and location of (expense) income reclassified 
from AOCI into (expense) income (Effective Portion) 
Interest expense, net 
$ 
(1,754)
$ 
29
$ 
—
Interest rate swaps are entered into with a limited number 
of counterparties, each of which allows for net settlement 
of all 
contracts through a single payment in a single currency 
in the event of a default on or termination of any one 
contract. 
As such, in 
accordance with the Company’s 
accounting policy, 
these derivative instruments are recorded on a net basis within 
the Consolidated 
Balance Sheets.
 
Note 26 – Commitments and Contingencies 
In 1992, the Company identified certain soil and groundwater 
contamination at AC Products, Inc. (“ACP”), a wholly 
owned 
subsidiary. 
In voluntary coordination with the Santa Ana California Regional 
Water Quality Board, 
ACP has been remediating the 
contamination, the principal contaminant of which 
is perchloroethylene (“PERC”). 
In 2004, the Orange County Water 
District 
(“OCWD”) filed a civil complaint against ACP and other 
parties seeking to recover compensatory and other damages 
related to the 
investigation and remediation of the contamination in the 
groundwater. 
Pursuant to a settlement agreement with OCWD, ACP agreed, 
among other things, to operate the two groundwater treatment 
systems to hydraulically contain groundwater contamination 
emanating 
from ACP’s site until the concentrations 
of PERC released by ACP fell below the current Federal maximum 
contaminant level for 
four consecutive quarterly sampling events. 
In 2014, ACP ceased operation at one of its two groundwater 
treatment systems, as it had 
met the above condition for closure. 
In 2020, the Santa Ana Regional Water 
Quality Control Board asked that ACP conduct some 
additional indoor and outdoor soil vapor testing on and 
near the ACP site to confirm that ACP continues to meet the applicable 
local 
standards and ACP has begun the testing program. 
As of December 31, 2020, 
ACP believes it is close to meeting the conditions 
for 
closure of the remaining groundwater treatment system 
but continues to operate this system while in discussions with the 
relevant 
authorities.
 
 

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
97 
As of December 31, 2020, the Company believes that 
the range of potential-known liabilities associated with the balance 
of ACP 
water remediation program is approximately $
0.1
 
million to $
1.0
 
million. 
The low and high ends of the range are based on the length 
of operation of the treatment system as determined 
by groundwater modeling. 
Costs of operation include the operation and 
maintenance of the extraction well, groundwater monitoring 
and program management. 
An inactive subsidiary of the Company that was acquired 
in 1978 sold certain products containing asbestos, primarily on an 
installed basis, and is among the defendants in numerous 
lawsuits alleging injury due to exposure to asbestos. 
The subsidiary 
discontinued operations in 1991 and has no remaining 
assets other than proceeds received from insurance settlements. 
To date, the 
overwhelming majority of these claims have been 
disposed of without payment and there have been no adverse judgments 
against the 
subsidiary. 
Based on a continued analysis of the existing and anticipated 
future claims against this subsidiary, 
it is currently projected 
that the subsidiary’s total 
liability over the next 50 years for these claims is approximately 
$
0.5
 
million (excluding costs of defense). 
Although the Company has also been named as a defendant 
in certain of these cases, no claims have been actively pursued 
against the 
Company, and 
the Company has not contributed to the defense or settlement of any 
of these cases pursued against the subsidiary. 
These cases were handled by the subsidiary’s 
primary and excess insurers who had agreed in 1997 to 
pay all defense costs and be 
responsible for all damages assessed against the subsidiary arising 
out of existing and future asbestos claims up to the aggregate 
limits 
of their policies. 
A significant portion of this primary insurance coverage was provided 
by an insurer that is insolvent, and the other 
primary insurers asserted that the aggregate limits of their 
policies had been exhausted. 
The subsidiary challenged the applicability of 
these limits to the claims being brought against the subsidiary. 
In response, two of the three carriers entered into separate settlement 
and release agreements with the subsidiary in 2005 and 
2007 for $
15.0
 
million and $
20.0
 
million, respectively. 
The proceeds of both settlements were restricted and could 
only be used to pay claims and costs of defense associated with 
the 
subsidiary’s asbestos litigation. 
In 2007, the subsidiary and the remaining primary insurance 
carrier entered into a Claim Handling 
and Funding Agreement, under which the carrier is paying 
27
% of defense and indemnity costs incurred by or on behalf 
of the 
subsidiary in connection with asbestos bodily injury 
claims. 
The agreement continues until terminated and can only 
be terminated by 
either party by providing a minimum of two years prior 
written notice. 
As of December 31, 2020, 
no notice of termination has been 
given under this agreement. 
At the end of the term of the agreement, the subsidiary 
may choose to again pursue its claim against this insurer regarding 
the 
application of the policy limits. 
The Company believes that, if the coverage issues under the primary 
policies with the remaining 
carrier are resolved adversely to the subsidiary and all 
settlement proceeds were used, the subsidiary may have limited 
additional 
coverage from a state guarantee fund established following 
the insolvency of one of the subsidiary’s 
primary insurers. 
Nevertheless, 
liabilities in respect of claims may exceed the assets and coverage 
available to the subsidiary. 
If the subsidiary’s assets and 
insurance coverage were to be exhausted, claimants of the 
subsidiary may actively pursue claims 
against the Company because of the parent-subsidiary relationship. 
The Company does not believe that such claims would have merit 
or that the Company would be held to have liability for any 
unsatisfied obligations of the subsidiary as a result of such 
claims. 
After 
evaluating the nature of the claims filed against the subsidiary 
and the small number of such claims that have resulted in any 
payment, 
the potential availability of additional insurance 
coverage at the subsidiary level, the additional availability of the 
Company’s own 
insurance and the Company’s 
strong defenses to claims that it should be held responsible 
for the subsidiary’s obligati 
ons because of 
the parent-subsidiary relationship, the Company believes 
it is not probable that the Company will incur losses. 
The Company has 
been successful to date having any claims naming it 
dismissed during initial proceedings. 
Since the Company may be in this stage of 
litigation for some time, it is not possible to estimate additional 
losses or range of loss, if any. 
As a result of the closing of the Combination on August 
1, 2019, the Company is party to environmental matters related 
to certain 
Houghton domestic and foreign properties currently or previously 
owned, described below. 
These environmental matters primarily 
require the Company to perform long-term monitoring 
as well as operating and maintenance at each of the applicable 
sites. 
The 
Company continually evaluates its obligations related to such 
matters, and based on historical costs incurred and projected 
costs to be 
incurred over the next 28 years, has estimated the present 
value range of costs for all of the Houghton environmental 
matters, on a 
discounted basis, to be between approximately $
5.5
 
million and $
6.5
 
million as of December 31, 2020, for which $
6.0
 
million is 
accrued within other accrued liabilities and other non-current 
liabilities on the Company’s 
Consolidated Balance Sheet as of 
December 31, 2020. 
Comparatively, as of 
December 31, 2019, the Company had $
6.6
 
million accrued for with respect to these 
matters. 
Houghton’s Sao Paulo, 
Brazil site was required under Brazilian environmental, health 
and safety regulations to perform an 
environmental assessment as part of a permit renewal 
process. 
Initial investigations identified soil and ground 
water contamination in 
select areas of the site. 
The site has conducted a multi-year soil and groundwater 
investigation and corresponding risk assessments 
based on the result of the investigations. 
In 2017, the site had to submit a new 5-year permit renewal request 
and was asked to 
complete additional investigations to further delineate 
the site based on review of the technical data by the local regulatory 
agency, 
Companhia Ambiental do Estado de São Paulo (“CETESB”). 
Based on review of the updated investigation data, CETESB issued 
a 

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
98 
Technical Opinion 
regarding the investigation and remedial actions taken to 
date. 
The site developed an action plan and submitted it 
to CETESB in 2018 based on CETESB requirements. 
The site intervention plan primarily requires the site, amongst other 
actions, to 
conduct periodic monitoring for methane in soil vapors, 
source zone delineation, groundwater plume delineation, 
bedrock aquifer 
assessment, update the human health risk assessment, develop 
a current site conceptual model and conduct a remedial feasibility study 
and provide a revised intervention plan. 
In December 2019, the site submitted a report on the activities completed 
including the revised site conceptual model and results 
of the remedial feasibility study and recommended remedial 
strategy for the site. 
Other Houghton environmental matters include 
participation in certain payments in connection with four 
currently active environmental consent orders related to 
certain hazardous 
waste cleanup activities under the U.S. Federal Superfund 
statute. 
Houghton has been designated a potentially responsible party 
(“PRP”) by the Environmental Protection Agency along 
with other PRPs depending on the site, and has other obligations 
to perform 
cleanup activities at certain other foreign subsidiaries. 
These environmental matters primarily require the Company 
to perform long-
term monitoring as well as operating and maintenance 
at each of the applicable sites. 
The Company believes, although there can be no assurance 
regarding the outcome of other unrelated environmental matters, that 
it has made adequate accruals for costs associated with other 
environmental problems of which it is aware. 
Approximately $
0.1
 
million and $
0.2
 
million were accrued as of December 31, 2020 and 2019, respectively, 
to provide for such anticipated future 
environmental assessments and remediation costs. 
During the fourth quarter of 2020, one of the Company’s 
subsidiaries received a notice of inspection from a taxing authority 
in a 
country where certain of its subsidiaries operate which 
related to a non-income (indirect) tax that may be applicable to 
certain products 
the subsidiary sells. 
To date, the Company 
has not received any assessment from the authority related 
to potential liabilities that may 
be due from the Company’s 
subsidiary. 
Consequently, there is substantial uncertainty 
with respect to the Company’s 
ultimate liability 
with respect to this indirect tax, as the application of 
this tax in its given 
market is ambiguous and interpreted differently among 
other 
peer companies and taxing authorities. 
The Company, with 
assistance from independent experts, has performed an 
evaluation of the 
applicability of this indirect tax to the Company’s 
subsidiaries in this country. 
Information available to the Company at this time is 
only sufficient to establish a range of probable 
liability, and no amount 
within the range is considered a better estimate than another. 
Based on this evaluation, the Company recorded a liability 
of $
1.5
 
million in other accrued liabilities, which reflects the low end 
of the 
range of probable indirect tax owed, including interest 
and taking into account applicable statutes of limitations. 
Because these 
amounts in part relate to a Houghton entity acquired 
in the Combination and for periods prior to the Combination, the 
Company has 
submitted an indemnification claim with Houghton’s 
former owners related to this potential indirect tax liability. 
The Company 
recorded a receivable in other assets for approximately $
1.1
 
million, which reflects the amount of the $
1.5
 
million recorded liability 
for which the Company anticipates being indemnified. 
The impact of this indirect tax, net of the recorded indemnification 
asset, was 
approximately $
0.4
 
million and was recorded as a component of SG&A during 
the fourth quarter of 2020. 
As noted, the Company 
believes there is substantial uncertainty with respect to 
its ultimate liability given the ambiguous application of this indirect tax. 
At 
this time, the Company’s 
best estimate of a potential range for possible assessments, including 
additional amounts that may be 
assessed under these indirect tax laws, would be approximately 
$
0.4
 
million to $
34
 
million, which is net of approximately $
9
 
million 
of estimated income tax deductions and approximately $
22
 
million of applicable rights to indemnification from Houghton’s 
former 
owners. 
The Company is party to other litigation which management 
currently believes will not have a material adverse 
effect on the 
Company’s results of 
operations, cash flows or financial condition. In addition, 
the Company has an immaterial amount of contractual 
purchase obligations.
 
Note 27 – COVID-19 Global Pandemic 
In early 2020, a global outbreak of COVID-19 occurred 
initially in China and then across all locations where the Company does 
business, and which continued throughout the rest of the 
year. 
In March 2020, the World 
Health Organization formally identified the 
COVID-19 outbreak as a pandemic. 
In an effort to halt the outbreak of COVID-19, 
the governments of impacted countries, including 
but not limited to the U.S., the European Union, and 
China, have taken various actions to reduce its spread, including 
travel 
restrictions, shutdowns of businesses deemed nonessential, 
and stay-at-home or similar orders.
 
This outbreak and associated 
measures to reduce its spread have caused significant disruptions 
to the operations of the Company and its suppliers and customers. 
The disruptions and negative impact to the Company 
include significant volume declines and lower net sales initially at its China 
subsidiaries in the first quarter of 2020 and beginning 
in late March continued throughout the rest of 2020 at almost 
all of its other 
sites as the global economy slowed significantly in response 
to the pandemic. 
Management continues to monitor the impact that the 
COVID-19 pandemic is having on the Company, 
the overall specialty chemical industry, 
and the economies and markets in which the 
Company operates. 
Further, management continues to 
evaluate how COVID-19-related circumstances, such as remote 
work arrangements, have 
affected financial reporting processes, internal control 
over financial reporting, and disclosure controls and procedures. 
While the 
circumstances have presented and are expected to continue 
to present challenges, at this time, management does not believe 
that 

QUAKER CHEMICAL CORPORATION 
NOTES TO CONSOLIDATED 
FINANCIAL STATEMENTS 
- Continued 
(
Dollars in thousands, except share and per share amounts, 
unless otherwise stated
) 
 
99 
COVID-19 has had a material impact on financial reporting 
processes, internal control over financial reporting, 
and disclosure 
controls and procedures. 
The full extent of the COVID-19 pandemic related 
business and travel restrictions and changes to business and 
consumer 
behavior intended to reduce its spread are uncertain as of 
the date of this Report as COVID-19 and the responses of governmental 
authorities continue to evolve globally. 
The Company cannot reasonably estimate the magnitude of the effects 
these conditions will 
have on the Company’s 
operations in the future as they are subject to significant uncertainties relating 
to the ultimate geographic 
spread of the virus, the incidence and severity of 
the symptoms, the duration or resurgence of the outbreak, 
the length of the travel 
restrictions and business closures imposed by governments 
of impacted countries, and the economic response by governments 
of 
impacted countries. 
To the extent 
that the Company’s customers and 
suppliers continue to be significantly and adversely impacted by 
COVID-19, this 
could reduce the availability, 
or result in delays, of materials or supplies to or from 
the Company, which in 
turn could significantly 
interrupt the Company’s 
business operations. 
Such impacts could grow and become more significant to the 
Company’s operations 
and the Company’s liquidity 
or financial position. 
Therefore, given the speed and frequency of continuously 
evolving developments 
with respect to this pandemic, the Company cannot reasonably 
estimate the magnitude or the full extent to which COVID-19 
may 
impact the Company’s results 
of operations, liquidity or financial position.

 
100 
Item 9. 
Changes in and Disagreements With Accountants on 
Accounting and Financial Disclosure.
 
Not Applicable. 
Item 9A. 
Controls and Procedures.
 
Conclusion Regarding the Effectiveness of Disclosure 
Controls and Procedures 
As required by Rule 13a-15(b) under the Securities Exchange 
Act of 1934, as amended (the “Exchange Act”), our management, 
including our principal executive officer 
and principal financial officer, 
has evaluated the effectiveness of our disclosure controls 
and 
procedures (as defined in Rule 13a-15(e) under the Exchange Act) 
as of the end of the period covered by this report. 
Based on that 
evaluation, our principal executive officer and 
our principal financial officer have concluded that, 
as of the end of the period covered 
by this Report, our disclosure controls and procedures 
(as defined in Rule 13a-15(e) under the Exchange Act) were 
not effective as of 
December 31, 2020 because of the material weaknesses in 
our internal control over financial reporting, as described 
below. 
Notwithstanding these material weaknesses, the Company 
has concluded that the audited consolidated financial statements 
included in this Report present fairly, 
in all material respects, the financial position of the Company 
as of December 31, 2020 and 
2019, and the results of its operations and its cash flows 
and changes in equity for each of the years in the three 
-year period ended 
December 31, 2020, in conformity with accounting 
principles generally accepted in the United States. 
Management’s Report on Internal 
Control over Financial Reporting 
Management is responsible for establishing and maintaining 
adequate internal control over financial reporting as such term 
is 
defined in Rule 13a-15(f) under the Exchange Act. 
Internal control over financial reporting is a process designed 
to provide 
reasonable assurance regarding the reliability of financial 
reporting and the preparation 
of financial statements for external purposes in 
accordance with generally accepted accounting principles. 
Because of its inherent limitations, internal control 
over financial reporting may not prevent or detect misstatements. 
Also, 
projections of any evaluation of effectiveness 
to future periods are subject to the risk that controls may 
become inadequate because of 
changes in conditions or that the degree of compliance 
with the policies or procedures may deteriorate. 
Our management, with the participation of our principal 
executive officer and principal financial officer, 
assessed the 
effectiveness of the Company’s 
internal control over financial reporting as of December 
31, 2020. 
In making this assessment, our 
management used the criteria set forth by the Committee 
of Sponsoring Organizations of the Treadway 
Commission in Internal 
Control—Integrated Framework (2013) (the “COSO framework”). 
A material weakness is a deficiency, 
or combination of 
deficiencies, in internal control over financial reporting, 
such that there is a reasonable possibility that a material misstatement 
of 
annual or interim financial statements will not be prevented 
or detected on a timely basis. 
We identified 
certain deficiencies in our 
application 
of the principles associated with the COSO framework that 
management concluded constituted a material weakness. 
We 
did not design and maintain effective controls in 
response to the risks of material misstatement. 
Specifically, changes 
to existing 
controls or the implementation of new controls were not 
sufficient to respond to changes to the risks of material 
misstatement in 
financial reporting as a result of becoming a larger, 
more complex global organization due to the Combination. 
This material 
weakness also contributed to an additional material weakness as we did 
not design and maintain effective controls 
over the review of 
pricing, quantity and customer data to verify that revenue 
recognized was complete and accurate. 
These material weaknesses did not 
result in material misstatements to the interim or annual 
consolidated financial statements. 
However, these material weaknesses could 
result in misstatements to our account balances and disclosures 
that could result in a material misstatement to the interim 
or annual 
consolidated financial statements that would not be 
prevented or detected. 
Therefore, management concluded that the Company’s 
internal control over financial reporting was not effective 
as of December 31, 2020. 
Management has excluded the internal controls of Tel 
Nordic ApS and Coral Chemical Company from our assessment of internal 
control over financial reporting as of December 31, 2020, 
because these entities were acquired by the Company in 
purchase business 
combinations in May 2020 and December 2020, respectively. 
These excluded entities are wholly owned subsidiaries, whose 
total 
assets represent less than 1% and approximately 2%, 
respectively, and whose 
total revenues each represent less than 1%, of the related 
consolidated financial statement amounts as of and 
for the year ended December 31, 2020. 
The effectiveness of the Company’s 
internal control over financial reporting as of December 31, 
2020 has been audited by 
PricewaterhouseCoopers LLP, 
an independent registered public accounting firm, as 
stated in its report which is included in “Item 8. 
Financial Statements and Supplementary Data.” 
Progress on Remediation of 
Material Weaknesses 
The aforementioned material weaknesses, as well as the remediated 
business combination material weakness discussed below, 
were previously disclosed in 
“Item 9A. Controls and Procedures.” 
in the Company’s 2019 
Form 10-K. 
The Company and its Board 
of Directors are committed to maintaining a strong 
internal control environment. 
Since identifying the material weaknesses, the 
Company has dedicated a significant amount of time 
and resources to remediate all of the previously identified material 
weaknesses as 
quickly and effectively as possible. 
In 2020, the Company dedicated multiple internal resources 
and supplemented those internal 
resources with various third-party specialists to assist with the 
formalization of a robust and detailed remediation 
plan. 
In undertaking 

 
101 
remediation activities, the Company has hired additional 
personnel dedicated to financial and information technology 
compliance to 
further supplement its internal resources. 
In addition, the Company has established a global network 
of personnel to assist local 
management in understanding control performance and 
documentation requirements. 
In order to sustain this network, the Company 
conducts periodic trainings and hosts discussions to address 
questions on a current basis. 
However, 
the impact of COVID-19, 
including travel restrictions and remote work arrangements 
required the Company to adapt and make changes to its internal 
controls 
integration plans as well as its remediation plans, and 
has presented and is expected to continue to present challenges 
with regards to 
the timing of the Company’s 
remediation and integration plan activities. 
In addition, the Company was executing its plan of 
remediation in the current year while also integrating 
its past Houghton and Norman Hay acquisitions into the Company’s 
control 
framework.
 
Remediation of Business Combination Material Weakness
 
Through these efforts described above, the 
Company was able to implement its plan to remediate the previously 
identified 
material weakness concerning the reliability of data used 
to support the reasonableness of certain assumptions in the accounting 
for 
business combinations, including updating the Company’s 
design and documentation as well as implementing changes to 
certain 
internal controls to specifically address this control deficiency. 
The Company was able to document, test and evaluate the updated 
internal controls in the given year so as to successfully 
remediate this material weakness as of December 31, 2020. 
Management’s 
Remediation Initiatives for the Risk Assessment and Revenue 
– Price and Quantity Material Weaknesses 
Despite the challenges brought on by COVID-19 and 
driven by the Company’s 
priority of creating a long-term sustainable control 
structure to ensure stability for a Company that has more 
than doubled in size since August 2019, the Company did 
make substantial 
strides towards remediating the underlying causes of the 
previously disclosed material weaknesses in our risk assessment process 
and 
within our revenue process in the current year, 
as further discussed below. 
Risk Assessment – 
Specific to the material weakness in our risk assessment process 
that was previously disclosed in 
“Item 9A. 
Controls and Procedures.” 
in the Company’s 2019 
Form 10-K , we previously determined that our risk assessment process 
was not 
designed adequately to respond to changes to the 
risks of material misstatement to financial reporting. 
In order to remediate this 
material weakness, we have designed and implemented 
an improved risk assessment process, including identifying 
and assessing 
those risks attendant to the significant changes within the 
Company as a result of becoming a larger, 
more complex global 
organization due to the Combination. 
During 2020, a full review was performed of our processes and controls 
across significant 
locations in order to identify and address potential design 
gaps. 
In addition to individual transactional-level control enhancements, 
this review resulted in (i) an enhanced financial statement 
risk assessment, (ii) the standardization of existing legal entity and 
newly 
implemented segment quarterly analytics and quarterly 
closing packages completed by key financial reporting 
personnel, (iii) a global 
account reconciliation review program and (iv) enhancements 
to our quarterly identification and reassessment of new and 
existing 
business and information technology risks that could 
affect our financial reporting. 
Monitoring is also performed through our 
enhanced quarterly controls certification process, whereby 
changes in business or information technology processes or control 
owners 
are identified and addressed timely. 
Although we have implemented and tested the additional controls 
as noted in our remediation 
plan and found them to be effective, this material 
weakness will not be considered remediated as of December 
31, 2020 due to the 
Revenue – Price and Quantity material weakness, discussed 
below. 
Once the Revenue – Price and Quantity material weakness is 
remediated, we expect the Risk Assessment material weakness will also 
be remediated.
 
Revenue – Price and Quantity – 
Specific to the material weakness in our revenue process that 
was previously disclosed in 
“Item 9A. 
Controls and Procedures.” 
in the Company’s 2019 
Form 10-K, we did not design and maintain effective 
controls over the review of 
pricing, quantity and customer data to verify that revenue 
recognized was complete and accurate. 
In order to remediate this material 
weakness, the Company has made significant progress in 
its redesign of certain aspects of its revenue process and 
related controls 
during 2020. 
As of the date of this report on Form 10-K, the Company has identified 
and agreed upon design enhancements and 
requirements for each revenue sub-process. 
The design includes enhancements to entity-level and 
transactional-level manual controls 
as well as IT general and application controls and the 
Company is in the process of implementing these design changes 
both centrally 
and locally. 
However, because the additional 
controls had not been implemented and tested as of December 
31, 2020, this material 
weakness is not yet remediated.
 
This existing material weakness will not be considered remediated 
until the applicable remedial 
controls operate for a sufficient period of 
time and management has concluded, through testing, that the controls 
are operating 
effectively. 
Given the significant resources the Company has dedicated 
to remediation of its material weaknesses, the Company is committed 
to remediation and expects that in 2021 it will successfully implement 
the enhanced design of its revenue processes and have a 
sufficient operational effectiveness period 
to evidence material weakness remediation over its price and 
quantity material weakness 
and, concurrently, 
evidence material weakness remediation over its risk assessment material 
weakness in 2021 as well. 
 
Changes in Internal Control Over Financial 
Reporting 
As required by Rule 13a-15(d) under the Exchange Act, 
our management, including our principal executive officer 
and principal 
financial officer, has 
evaluated our internal control over financial reporting to 
determine whether any changes to our internal control 
over financial reporting occurred during the fourth quarter 
of the year ended December 31, 2020 that have materially affected, 
or are 

 
102 
reasonably likely to materially affect, our 
internal control over financial reporting. 
Based on that evaluation, there were no changes 
that have materially affected, or are reasonably 
likely to materially affect, our internal control over financial 
reporting during the 
fourth quarter of the year ended December 31, 2020. 
Item 9B. 
Other Information.
 
As previously reported by the Company on February 25, 
2021, Michael F. 
Barry on February 24, 2021 informed the Board of 
Directors of the Company (the “Board”) that he plans to 
retire as President and Chief Executive Officer 
of Quaker Houghton on 
December 31, 2021. 
Mr. Barry, 
who has been nominated for re-election as a director at 
the 2021 annual meeting of the Company’s 
shareholders, is expected to serve his full three-year term 
as a director and will retain the role of Chairman of the Board following 
his 
retirement. 
The Board is committed to a strong, orderly process and transition 
with a comprehensive search that will include internal 
and external candidates. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
103 
PART 
III 
Item 10. 
Directors, Executive Officers and Corporate Governance.
 
Incorporated by reference is (i) the information 
beginning with and including the caption “Proposal 1—Election 
of Directors and 
Nominee Biographies” in Quaker Houghton’s 
definitive Proxy Statement relating to the 2021 Annual 
Meeting of Shareholders, to be 
filed with the Securities and Exchange Commission no 
later than 120 days after the close of its fiscal year ended 
December 31, 2020 
(the “2021 Proxy Statement”) to, but not including, 
the sub-caption “Governance Committee Procedures for Selecting 
Director 
Nominees,” (ii) the information appearing in Item 4(a) 
of this Report, (iii) the information in the 2021 Proxy Statement 
beginning with 
and including the caption, “Delinquent Section 16(a) 
Reports” to, but not including, the caption “Certain Relationships 
and Related 
Transactions,” (iv) the information in 
the 2021 Proxy Statement beginning with and including the 
sub-caption “Code of Conduct” to, 
but not including, the caption “Compensation Committee 
Interlocks and Insider Participation,” and (v) the information 
in the 2021 
Proxy Statement beginning with and including the 
sub-caption “Shareholder Nominations and Recommendations” 
to, but not 
including, the sub-caption “Board Oversight 
of Risk.” 
Information about our Executive Officers is included 
in Item 4(a) of this 
Report. 
Item 11. 
Executive Compensation. 
Incorporated by reference is (i) the information 
in the 2021 Proxy Statement beginning with and including the caption 
“Compensation Committee Interlocks and Insider Participation” 
to, but not including the caption “Stock Ownership of 
Certain 
Beneficial Owners and Management.” 
Item 12. 
Security Ownership of Certain Beneficial Owners and Management 
and Related Stockholder Matters.
 
Incorporated by reference is the information in the 2021 
Proxy Statement beginning with and including the caption 
“Stock 
Ownership of Certain Beneficial Owners and Management” 
to, but not including, the caption “Delinquent Section 16(a) 
Reports.” 
Equity Compensation Plans
 
The following table sets forth certain information 
relating to the Company’s equity 
compensation plans as of December 31, 2020. 
Each number of securities reflected in the table is a reference 
to shares of Quaker common stock. 
Equity Compensation Plan Information 
Number of securities 
Number of securities 
remaining available for 
to be issued upon 
Weighted-average 
future issuance under 
exercise of 
exercise price of 
equity compensation plans 
outstanding options, 
outstanding options, 
(excluding securities 
Plan Category 
warrants and rights 
warrants and rights 
reflected in column (a)) 
(a) 
(b) 
(c) 
Equity compensation plans approved 
by security holders 
110,336 
$ 
143.51 
650,060 
(1) 
Equity compensation plans not approved 
by security holders 
— 
— 
— 
Total 
110,336 
$ 
143.51 
650,060 
(1) 
 
(1) 
As of December 31, 2020, 304,900 of these shares were 
available for issuance as restricted stock awards under 
the Company’s 
2001 Global Annual Incentive Plan, 283,508 shares were 
available for issuance upon the exercise of stock options and/or as 
restricted stock awards and/or restricted stock unit awards 
under the Company’s 2016 
Long-Term Performance 
Incentive Plan, and 
61,652 shares were available for issuance under the 
2013 Director Stock Ownership Plan. 
Item 13. 
Certain Relationships and Related Transact 
ions, and Director Independence.
 
Incorporated by reference is (i) the information 
in the 2021 Proxy Statement beginning with and including the caption 
“Certain 
Relationships and Related Party Transactions” 
to, but not including, the caption “Proposal 2 — Ratification of 
Appointment of 
Independent Registered Public Accounting Firm,” (ii) 
the information in the 2021 Proxy Statement beginning with 
and including the 
sub-caption “Director Independence” to, but not including, 
the sub-caption “Governance Committee Procedures for Selecting 
Director 
Nominees,” and (iii) the information in the 2021 Proxy 
Statement beginning with and including the caption “Meetings 
and 
Committees of the Board” to, but not including, the 
caption “Compensation Committee Interlocks and Insider Participation.” 
Item 14. 
Principal Accountant Fees and Services.
 
Incorporated by reference is the information in the 2021 
Proxy Statement beginning with and including the sub-caption 
“Audit 
Fees” to, but not including, the statement recommending 
a vote for ratification of the appointment of PricewaterhouseCoopers 
LLP as 
the Company’s independent 
registered public accounting firm for the year ending December 
31, 2021. 

 
 
104 
PART 
IV 
 
 
Item 15.
 
Exhibits and Financial Statement Schedules. 
(a)
 
Exhibits and Financial Statement Schedules 
1.
 
Financial Statements and Supplementary Data 
 
 
 
 
 
Page 
Financial Statements: 
 
 
 
Report of Independent Registered Public Accounting Firm
 
44 
Consolidated Statements of Income
 
47 
Consolidated Statements of Comprehensive Income
48 
Consolidated Balance Sheets
 
49 
Consolidated Statements of Cash Flows
 
50 
 
Consolidated Statements of Changes in Equity
 
51 
Notes to Consolidated Financial Statements
 
52 
2.
 
Financial Statement Schedules 
All schedules are omitted because they are not applicable 
or the required information is shown in the financial statements or 
notes 
thereto. 
Financial statements of 50% or less owned companies have been 
omitted because none of the companies meets the criteria 
requiring inclusion of such statements. 
 
3.    Exhibits - filed pursuant to, 
and numbered in accordance with Item 601 
of Regulation S-K (all of which are under 
Commission File number 001-12019, except as otherwise noted): 
 
2.1 — 
Share Purchase Agreement, dated April 4, 2017, by and among Quaker Chemical Corporation, a Pennsylvania
corporation, Gulf Houghton Lubricants, Ltd., an exempte d company incorporated under the laws of the Cayman Islands,
Global Houghton Ltd., an exempted company incorporated under the laws of the Cayman Islands, and certain members
of the management of Global Houghton Ltd. and Gulf Houghton Lubricants, Ltd., as agent for the Sellers. Incorporated
by reference to Exhibit 10.1 as filed by the Registrant with Form 8-K, filed on April 5, 2017. ***
3.1 — 
Amended and Restated Articles of Incorporation (as amended through July 24, 2019). Incorporated by reference to
Exhibit 3.1 as filed by the Registrant with its quarterly report on Form 10-Q on August 1, 2019.
3.2 — 
Restated By-laws (effective May 6, 2015, as amended through March 27, 2020). Incorporated by reference to Exhibit
3.2 as filed by Registrant within its quarterly report on Form 10-Q on May 11, 2020.
4.1 — 
Registration Rights, dated August 1, 2019, issued to certain members of the management of Global Houghton Ltd. and
Gulf Houghton Lubricants, Ltd. by Quaker Chemical Corporation. Incorporated by reference to Exhibit 4.5 as filed by
Registrant on Form S-3 on August 29, 2019
.
4.2 — 
Description of Quaker Houghton common stock. Incorporated by reference to Exhibit 4.2 as filed by the Registrant with
Form 10-K for the year ended 2019.
4.3 — 
Convertible Note, Dated May 7, 2020, by and among Quaker Chemical Corporation, TEL Nordic Holdings ApS, and
Lars Skogstad-Jensen. Incorporated by reference to Exhibit 4.3 as filed by Registrant on Form S-3 on May 19, 2020.
10.1 — 
Settlement Agreement and Release between Registrant, an inactive subsidiary of the Registrant, and Hartford Accident
and Indemnity Company dated December 12, 2005. Incorporated by reference to Exhibit 10 (nnn) as filed by the
Registrant with Form 10-K for the year 2005.
10.2 — 
Settlement Agreement and Release between Registrant, an inactive subsidiary of Registrant and Federal Insurance
Company dated March 26, 2007. Incorporated by reference to Exhibit 10(zzz) as filed by the Registrant with Form 10-
Q for the quarter ended March 31, 2007.
10.3 — 
Claim Handling and Funding Agreement between SB Decking, Inc., an inactive subsidiary of Registrant, and
Employers Insurance Company of Wausau dated September 25, 2007. Incorporated by reference to Exhibit 10(ffff) as
filed by the Registrant with Form 10-Q for the quarter ended September 30, 2007.
10.4 — 
Settlement Agreement and Mutual Release entered into between AC Products, Inc., wholly owned subsidiary of
Registrant, and Orange County Water District, effective November 8, 2007. Incorporated by reference to Exhibit

 
105 
10.47 as filed by the Registrant with Form 10-K for the year ended 2007.
10.5 — 
Employment Agreement by and between Registrant and Michael F. Barry dated July 1, 2008. Incorporated by
reference to Exhibit 10.5 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2008. †
10.6 — 
Change in Control Agreement by and between Registrant and Michael F. Barry dated July 1, 2008. Incorporated by
reference to Exhibit 10.6 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2008. †
10.7 — 
Employment Agreement by and between L. Willem Platzer and Quaker Chemical B.V., a Netherlands corporation
and a subsidiary of Registrant, dated August 21, 2006. Incorporated by reference to Exhibit 10 as filed by the
Registrant with Form 8-K filed on August 22, 2006. †
10.8 — 
Change in Control Agreement by and between Registrant and L. Willem Platzer dated April 2, 2007, effective
January 1, 2007. Incorporated by reference to Exhibit 10(aaaa) as filed by the Registrant with Form 10-Q for the
quarter ended March 31, 2007. †
10.9 — 
Memorandum of Employment by and between Registrant and Joseph Berquist dated April 1, 2010. Incorporated by
reference to Exhibit 10.2 as filed by the Registrant with Form 10-Q for the quarter ended March 31, 2010. †
10.10 — 
Change in Control Agreement by and between Registrant and Joseph Berquist dated April 1, 2010. Incorporated by
reference to Exhibit 10.3 as filed by the Registrant with Form 10-Q for the quarter ended March 31, 2010.
 
† 
10.11 — 
Employment Agreement by and between Dieter Laininger and Quaker Chemical B.V., a subsidiary of the registrant,
dated June 1, 2011, effe ctive June 15, 2011. Incorporated by reference to Exhibit 10.1 as filed by the Registrant with
Form 10-Q for the quarter ended June 30, 2011
.
 
† 
10.12 — 
Change in Control Agreement by and between Registrant and Dieter Laininger dated May 31, 2011, effective June 15,
2011. Incorporated by reference to Exhibit 10.2 as filed by the Registrant with Form 10-Q for the quarter ended June
30, 2011
.
 
† 
10.13 — 
Expatriate Agreement by and between the Registrant and Dieter Laininger, dated September 27, 2017, effective
August 1, 2019. Incorporated by reference to Exhibit 10.1 as filed by the Registrant with Form 10-Q, filed on
November 12, 2019.†
10.14 — 
Expatriate Agreement by and between the Registrant and Adrian Steeples, dated October 12, 2017, effective August 1,
2019. Incorporated by reference to Exhibit 10.2 as filed by the Registrant with Form 10-Q, filed on November 12,
2019
.†
10.15 — 
Form of Memorandum of Employment by and between the Registrant and certain executive officers (including Robert
Traub, Jeewat Bijlani, Kym Johnson and David Slinkman). Incorporated by reference to Exhibit 10.3 as filed by the
Registrant with Form 10-Q, filed on November 12, 2019
.†
10.16 — 
Form of Change of Control Agreement by and between the Registrant and certain executive officers (including Robert
Traub, Jeewat Bijlani, Kym Johnson and David Slinkman). Incorporated by reference to Exhibit 10.4 as filed by the
Registrant with Form 10-Q, filed on November 12, 2019
.†
10.17 — 
Memorandum of Employment by and between Registrant and Mary Dean Hall, dated and effective November 30,
2015. Incorporated by reference to Exhibit 10.60 as filed by the Registrant with Form 10-K for the year ended 2015
.† 
10.18 — 
Change in control agreement by and between Registrant and Mary Dean Hall, dated and effective November 30, 2015.
 
Incorporated by reference to Exhibit 10.61 as filed by the Registrant with Form 10-K for the year ended 2015
.
 
† 
10.19 — 
Terms and Conditions of Employment by and between Quaker Chemical Ltd and Adrian Steeples, dated December 7,
2010. Incorporated by reference to Exhibit 10.19 as filed by the Registrant with Form 10-K for the year ended 2019.†
10.20 — 
Amendment to Terms and Conditions of Employment by and between Quaker Chemical Ltd and Adrian Steeples,
dated June 15, 2011. Incorporated by reference to Exhibit 10.20 as filed by the Registrant with Form 10-K for the year
ended 2019. †
10.21 — 
Supplemental Retirement Income Program (as amended and restated effective January 1, 2008), approved November
19, 2008. Incorporated by reference to Exhibit 10.58 as filed by the Registrant with Form 10-K for the year ended
2008. †
10.22 — 
2013 Director Stock Ownership Plan as approved May 8, 2013. Incorporated by reference to Appendix B to the
Registrant’s definitive proxy statement filed on March 28, 2013. †

 
106 
10.23 — 
Retirement Savings Plan, as amended and restated effective January 1, 2016. Incorporated by reference to Exhibit
10.62 as filed by the Registrant with Form 10-K for the year ended 2015. †
10.24 — 
Global Annual Incentive Plan (as amended and restated effective February 24, 2016). Incorporated by reference to
Appendix B to the Registrant’s definitive proxy statement filed on March 28, 2016. †
10.25 — 
2011 Long-Term Performance Incentive Plan. Incorporated by reference to Appendix C to the Registrant’s definitive
proxy statement filed on March 31, 2011
.
 
† 
10.26 — 
Form of Restricted Stock Unit Agreement for executive officers and other employees under Registrant’s 2011 Long-
Term Performance Incentive Plan. Incorporated by reference to Exhibit 10.1 as filed by the Registrant with Form 10-
Q for the quarter ended March 31, 2012
.
 
† 
10.27 — 
2016 Long-Term Performance Incentive Plan. Incorporated by reference to Appendix C to the Registrant’s definitive
proxy statement filed on March 28, 2016. †
10.28 — 
Form of Restricted Stock Award Agreement for executive officers and other employees under Registrant’s 2016 Long-
Term Performance Incentive Plan. Incorporated by reference to Exhibit 10.3 as filed by Registrant with Form 8-K
filed on May 6, 2016. †
10.29 — 
Form of Restricted Stock Unit Agreement for executive officers and other employees under Registrant’s 2016 Long-
Term Performance Incentive Plan. Incorporated by reference to Exhibit 10.4 as filed by Registrant with Form 8-K
filed on May 6, 2016. †
10.30 — 
Form of Stock Option Agreement for executive officers and other employees under Registrant’s 2016 Long-Term
Performance Incentive Plan. Incorporated by reference to Exhibit 10.30 as filed by the Registrant with Form 10-K for
the year ended 2019. †
10.31 — 
Financing Agreement by and among Butler County Port Authority and Registrant and Brown Brothers Harriman &
Co. dated May 15, 2008. Incorporated by reference to Exhibit 10.1 as filed by the Registrant with Form 10-Q for the
quarter ended June 30, 2008.
10.32 — 
Butler County Port Authority Industrial Development Revenue Bond dated May 15, 2008. Incorporated by reference
to Exhibit 10.7 as filed by the Registrant with Form 10-Q for the quarter ended June 30, 2008.
10.33 — 
Senior Secured Credit Facilities Commitment Letter, dated April 4, 2017, by and among Quaker Chemical
Corporation, Bank of America, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Deutsche Bank AG New
York Branch and Deutsche Bank Securities Inc. Incorporated by reference to Exhibit 10.1 as filed by the Registrant
with Form 8-K, filed on April 7, 2017.
10.34 — 
Credit Agreement, dated as of August 1, 2019, among Quaker Chemical Corporation and certain of its subsidiaries,
Banks of America, N.A. and each of the lenders from time to time party thereto. Incorporated by reference to Exhibit
10.3 as filed by Registrant with Form 8-K filed on August 2, 2019.
 
***
10.35 — 
Amendment No. 1, dated as of March 17, 2020, to the Credit Agreement, dated as of August 1, 2019. Incorporated by
reference to Exhibit 10.1 as filed by the Registrant with Form 8-K filed on March 17, 2020.
10.36 — 
Shareholder Agreement, dated August 1, 2019, among Quaker Chemical Corporation, Gulf Hungary Holding Korlátolt
Felelősségű Társaság, Gulf Oil International, Ltd. and GOCL Corporation Limited. Inc. Incorporated by reference to
Exhibit 10.1 as filed by Registrant with Form 8-K filed on August 2, 2019
.
10.37 — 
Non-Competition and Non-Solicitation Agreement, dated as of August 1, 2019, among Quaker Chemical Corporation,
Gulf Houghton Lubricants Ltd., Gulf Oil International, Ltd., GOCL Corporation Limited and Gulf Oil Lubricants
India, Ltd. Incorporated by reference to Exhibit 10.2 as filed by Registrant with Form 8-K filed on August 2, 2019.***
10.38 — 
Escrow Agreement, dated August 1, 2019, among Quaker Chemical Corporation, Gulf Houghton Lubricants, Ltd. and
Citibank N.A. Incorporated by reference to Exhibit 4.4 as filed by Registrant on Form S-3 on August 29, 2019.***
10.39 — 
Amendment No 1, effective March 1, 2020, to the Quaker Houghton Retirement Savings Plan. Incorporated by
reference to Exhibit 10.2 as filed by the Registrant with its quarterly report on Form 10-Q on May 11, 2020. †
10.40 — 
Amendment No 2, effective February 10, 2020, to the Quaker Houghton Retirement Savings Plan. Incorporated by
reference to Exhibit 10.1 as filed by the Registrant with its quarterly report on Form 10-Q on August 5, 2020. †
10.41 — 
Amendment No 3, effective April 17, 2020, to the Quaker Houghton Retirement Savings Plan. Incorporated by
reference to Exhibit 10.2 as filed by the Registrant with its quarterly report on Form 10-Q on August 5, 2020. †

 
107 
21 — 
Subsidiaries and Affiliates of the Registrant.*
23 — 
Consent of Independent Registered Public Accounting Firm.*
31.1 — 
Certification of Chief Executive Officer of the Company pursuant to Rule 13a-14(a) of the Securities Exchange Act of
1934.*
31.2 — 
Certification of Chief Financial Officer of the Company pursuant to Rule 13a-14(a) of the Securities Exchange Act of
1934.*
32.1 — 
Certification of Michael F. Barry pursuant to 18 U.S.C. Section 1350.**
32.2 — 
Certification of Mary Dean Hall pursuant to 18 U.S.C. Section 1350.**
101.INS — 
Inline XBRL Instance Document* 
101.SCH — 
Inline XBRL Taxonomy 
Extension Schema Document* 
101.CAL — 
Inline XBRL Taxonomy 
Calculation Linkbase 
Document* 
101.DEF — 
Inline XBRL Taxonomy 
Definition Linkbase Document* 
101.LAB — 
Inline XBRL Taxonomy 
Label Linkbase Document* 
101.PRE — 
Inline XBRL Taxonomy 
Presentation Linkbase Document* 
104 — 
Cover Page Interactive Data File (formatted as Inline XBRL and 
contained in Exhibit 101.INS) * 
* Filed herewith. 
** Furnished herewith. 
*** Certain exhibits and schedules have been omitted, 
and the Company agrees to furnish supplementally to 
the Securities and 
Exchange commission a copy of any omitted exhibits and 
schedules upon request. 
† Management contract or compensatory plan 
 
Item 16. 
Form 10-K Summary.
 
The Company has elected not to include a Form 10-K summary 
under this Item 16. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
108 
SIGNATURES 
 
Pursuant to the requirements of Section 
13 or 15(d) of the Securities Exchange Act of 1934, the 
Registrant has duly 
caused this Report to be signed on its behalf by the undersigned, 
thereunto duly authorized. 
 
 
 
 
 
QUAKER CHEMICAL CORPORATION 
Registrant 
 
 
By: 
/s/ 
MICHAEL F. BARRY 
 
 
Michael F. 
Barry 
Chairman of the Board, Chief Executive Officer and 
President 
 
Date: March 1, 2021 
 
Pursuant to the requirements of the 
Securities Exchange Act of 1934, this Report has been signed below 
by the following 
persons on behalf of the Registrant and in the capacities and 
on the dates indicated. 
 
Signatures 
Capacity 
Date 
/s/ 
MICHAEL F. BARRY 
Principal Executive Officer and 
March 1, 2021 
Michael F. Barry 
Director 
Chairman of the Board, Chief Executive Officer and President 
/s/ 
MARY DEAN HALL 
Principal Financial Officer 
March 1, 2021 
Mary Dean Hall 
Senior Vice President, Chief Financial Officer and Treasurer 
 
/s/ 
SHANE W. HOSTETTER 
Principal Accounting Officer 
March 1, 2021 
Shane W. Hostetter 
Vice President, Finance and Chief Accounting Officer 
/s/ 
DONALD R. CALDWELL 
Director 
March 1, 2021 
Donald R. Caldwell 
/s/ 
CHARLOTTE C. DECKER 
Director 
March 1, 2021 
Charlotte C. Decker 
/s/ 
MARK A. DOUGLAS 
Director 
March 1, 2021 
Mark A. Douglas 
/s/ 
JEFFRY D. FRISBY 
Director 
March 1, 2021 
Jeffry D. Frisby 
/s/ 
WILLIAM H. OSBORNE 
Director 
March 1, 2021 
William H. Osborne 
/s/ 
ROBERT H. ROCK 
Director 
March 1, 2021 
Robert H. Rock 
/s/ 
FAY 
WEST 
Director 
March 1, 2021 
Fay West 
/s/ 
SANJAY HINDUJA 
Director 
March 1, 2021 
Sanjay Hinduja 
/s/ 
RAMASWAMI SESHASAYEE 
Director 
March 1, 2021 
Ramaswami Seshasayee 
/s/ 
MICHAEL SHANNON 
Director 
March 1, 2021 
Michael Shannon 
 

exhibit21

 
 
 
 
1 
EXHIBIT 21 
 
SUBSIDIARIES AND AFFILIATES 
OF THE REGISTRANT 
Jurisdiction of 
Percentage of Voting 
Securities Owned 
Name 
Incorporation 
Directly or Indirectly by Quaker 
* 
Quaker Chemical, S.A. 
Argentina 
100% 
* 
Houghton Argentina S.A. 
Argentina 
100% 
+* 
Quaker Australia Holdings Pty. 
Limited 
Australia 
100% 
* 
Quaker Chemical (Australasia) Pty. 
Limited 
Australia 
100% 
+* 
Houghton Australia Pty. 
Ltd. 
Australia 
100% 
* 
Surface Technology 
Australia 
Australia 
100% 
** 
Primex, Ltd. 
Barbados 
33% 
+* 
Quaker Chemical Participacoes, Ltda. 
Brazil 
100% 
* 
Quaker Chemical Industria e Comercio Ltda. 
Brazil 
100% 
* 
Quaker Chemical Operacoes, Ltda. 
Brazil 
100% 
* 
Ultraseal Asia Limited 
British Virgin Islands 
100% 
* 
Quaker Chemical Canada Limited 
Canada 
100% 
+* 
Quaker Chemical Canada Holdings, Inc. 
Canada 
100% 
* 
Quaker Houghton Canada Inc. (formerly Lubricor, 
Inc.) 
Canada 
100% 
* 
Houghton Canada Inc. 
Canada 
100% 
+* 
Global Houghton Ltd. 
Cayman Islands 
100% 
* 
Quaker Chemical (China) Co. Ltd. 
China 
100% 
* 
Quaker Shanghai Trading Company 
Limited 
China 
100% 
+* 
Quaker Chemical Investment Management (Shanghai) 
Co., Ltd. 
China 
100% 
* 
Wuhan Quaker Technology 
Co., Ltd 
China 
60% 
* 
Houghton (Shanghai) Specialty Industrial Fluids Co., 
Ltd 
China 
100% 
* 
DA Stuart Shanghai Co 
China 
100% 
* 
Ultraseal Chongqing Limited 
China 
100% 
* 
Ultraseal Machinery Dongguan Ltd 
China 
100% 
* 
Ultraseal Shanghai Limited 
China 
100% 
* 
Houghton CZ s.r.o 
Czech Republic 
100% 
+* 
Quaker Denmark ApS 
Denmark 
100% 
* 
Houghton Denmark AS 
Denmark 
100% 
* 
Tel Nordic ApS 
Denmark 
100% 
* 
Houghton S.A.S. 
France 
100% 
* 
SIFCO Concepts Sarl 
France 
100% 
* 
Quaker Chemical Services EURL 
France 
100% 
* 
Engineered Custom Lubricants GmbH 
Germany 
100% 
* 
Houghton Deutschland GmbH 
Germany 
100% 
* 
Ultraseal Germany GmbH 
Germany 
100% 
* 
Internationale Metall Impragnier GmbH 
Germany 
100% 
* 
Maldaner GmbH 
Germany 
100% 
* 
Sterr & Eder Industrieservice GmbH 
Germany 
100% 
* 
Quaker Chemical Limited 
Hong Kong 
100% 
* 
Houghton Magyarország Kft 
Hungary 
100% 
* 
Quaker Chemical India Private Limited 
India 
100% 
* 
DA Stuart India Private Limited 
India 
100% 
* 
Ultraseal India Private Ltd 
India 
30% 

 
 
 
 
2 
EXHIBIT 21 
 
SUBSIDIARIES AND AFFILIATES 
OF THE REGISTRANT, 
continued 
Jurisdiction of 
Percentage of Voting 
Securities Owned 
Name 
Incorporation 
Directly or Indirectly by Quaker 
* 
Quaker Italia S.r.l. 
Italy 
100% 
* 
Quaker Chemical S.r.l. 
Italy 
100% 
* 
Houghton Italia S.p.A. 
Italy 
100% 
* 
Houghton Japan Co., Ltd. 
Japan 
100% 
** 
Nippon Quaker Chemical, Ltd. 
Japan 
50% 
* 
Houghton Oil (Malaysia) Sdn, Bhd. 
Malaysia 
100% 
+* 
Quaker Houghton (Finco) Ltd. 
Malta 
100% 
+* 
Quaker Houghton Ltd. 
Malta 
100% 
+* 
Quaker Houghton Holdings Ltd. 
Malta 
100% 
+* 
Quaker Hougton Investments Limited 
Malta 
100% 
* 
Tecniquimia 
Mexicana S.A. de C.V. 
Mexico 
100% 
* 
Unitek Servicios De Asesoria Especializad S.A de C.V. 
Mexico 
100% 
* 
Houghton Mexico S.A. de C.V. 
Mexico 
100% 
* 
Lubricor Mexicana S.A. de C.V. 
Mexico 
100% 
+* 
Quaker Chemical Europe B.V. 
Netherlands 
100% 
* 
Quaker Chemical B.V. 
Netherlands 
100% 
+* 
Quaker Russia B.V. 
(formerly KWR Holdings B.V.) 
Netherlands 
100% 
+* 
Quaker China Holdings B.V. 
Netherlands 
100% 
+* 
Houghton Europe BV 
Netherlands 
100% 
* 
Houghton Benelux BV 
Netherlands 
100% 
+* 
QH Europe BV 
Netherlands 
100% 
* 
Quaker Sales Europe, BV 
Netherlands 
100% 
** 
Kelko Quaker Chemical, S.A. 
Panama 
50% 
* 
Houghton Polska Sp. Zo.o. 
Poland 
100% 
+* 
Quaker Chemical Holdings South Africa (Pty) Limited 
Republic of South Africa 
100% 
* 
Quaker Chemical South Africa (Pty.) 
Limited 
Republic of South Africa 
100% 
* 
Houghton Romania S.R.L. 
Romania 
100% 
+* 
GHI Asia Pacific Pte. Ltd. 
Singapore 
100% 
* 
Houghton Singapore 
Singapore 
100% 
** 
Korea Houghton Corporation 
South Korea 
50% 
* 
Quaker Chemical, S.A. 
Spain 
100% 
* 
Verkol 
S.A.U. 
Spain 
100% 
+* 
Quaker Spain Holding, SLU 
Spain 
100% 
* 
Houghton Iberica S.A. 
Spain 
100% 
* 
Binol AB 
Sweden 
100% 
* 
Houghton Sverige AB 
Sweden 
100% 
* 
SIFCO Concepts Sweden 
Sweden 
100% 
* 
Houghton Taiwan 
Co. Limited 
Taiwan 
100% 
* 
Quaker (Thailand) Ltd. 
Thailand 
100% 
* 
Quaker Houghton Thailand (formerly Thai Houghton 
1993 Co., Ltd) 
Thailand 
100% 
* 
Houghton Kimya Sanayi AS 
Turkey 
100% 

 
 
 
 
3 
EXHIBIT 21 
 
SUBSIDIARIES AND AFFILIATES 
OF THE REGISTRANT, 
continued 
Jurisdiction of 
Percentage of Voting 
Securities Owned 
Name 
Incorporation 
Directly or Indirectly by Quaker 
* 
Quaker Chemical Corporation 
U.S.A. 
100% 
+* 
SB Decking, Inc. (formerly Selby, 
Battersby & Co.) 
U.S.A. 
100% 
* 
AC Products, Inc. 
U.S.A. 
100% 
* 
Epmar Corporation 
U.S.A. 
100% 
* 
Summit Lubricants, Inc. 
U.S.A. 
100% 
* 
ECLI Products, LLC 
U.S.A. 
100% 
+* 
EFHCO, LLC 
U.S.A. 
100% 
+* 
GH Holdings Inc. 
U.S.A. 
100% 
+* 
Houghton Technical 
Corp. 
U.S.A. 
100% 
* 
SIFCO Applied Surface Concepts, LLC 
U.S.A. 
100% 
* 
Quaker Houghton PA, 
Inc. (formerly Houghton 
International) 
U.S.A. 
100% 
* 
Ultraseal USA Inc. 
U.S.A. 
100% 
+* 
Wallover Enterprises, 
Inc. 
U.S.A. 
100% 
* 
Wallover Oil Company 
Incorporated 
U.S.A. 
100% 
* 
Wallover Oil Hamilton 
Inc. 
U.S.A. 
100% 
+* 
Quaker International Holdings, LLC 
U.S.A. 
100% 
+* 
MIH Acquisition Company, 
LLC 
U.S.A. 
100% 
* 
Coral Chemical Company, 
LLC 
U.S.A. 
100% 
* 
Houghton Ukraine ToV 
Ukraine 
100% 
* 
Quaker Chemical Limited 
United Kingdom 
100% 
+* 
GHGL London Ltd. 
United Kingdom 
100% 
+* 
GHG Lubricants Holdings Limited 
United Kingdom 
100% 
+* 
Houghton Holdings Limited 
United Kingdom 
100% 
* 
Houghton Limited (formerly Houghton plc) 
United Kingdom 
100% 
+* 
Applied Surface Concepts Holdings Ltd. 
United Kingdom 
100% 
* 
Norman Hay Engineering Ltd. 
United Kingdom 
100% 
* 
SIFCO Applied Surface Concepts (UK) Ltd 
United Kingdom 
100% 
* 
Surface Technology 
Holdings Ltd. 
United Kingdom 
100% 
* 
Surface Technology 
(Leeds) Ltd 
United Kingdom 
100% 
* 
Surface Technology 
Aberdeen Ltd 
United Kingdom 
100% 
* 
Surface Technology 
(East Kilbride) Ltd. 
United Kingdom 
100% 
* 
Surface Technology 
(Coventry) Ltd 
United Kingdom 
100% 
* 
Ultraseal International Group Ltd 
United Kingdom 
100% 
* 
MX Systems International Ltd 
United Kingdom 
100% 
+* 
Quaker Houghton International LP 
United Kingdom 
100% 
+* 
Quaker Houghton Holdings Limited 
United Kingdom 
100% 
+* 
QH Holdings Limited 
United Kingdom 
100% 
+* 
QH Chemical Limited 
United Kingdom 
100% 
+* 
QH International Limited 
United Kingdom 
100% 
+* 
Quaker Specialty Chemicals (UK) Limited 
United Kingdom 
100% 
* 
Quaker Houghton Support Deutschland 
United Kingdom 
100% 
Kelko Quaker Chemical, S.A. 
Venezuela 
50% 
+ 
A non-operating company 
* 
Included in the consolidated financial statements 
** 
Accounted for in the consolidated financial statements under 
the equity method 
 

exhibit23

 
1 
EXHIBIT 23 
 
CONSENT OF INDEPENDENT REGISTERED PUBLIC 
ACCOUNTING FIRM 
 
We hereby 
consent to the incorporation by reference in the Registration Statements 
on Forms 
S-3 (Registration Nos. 333-155607, 333-
233530, 333-233956 and 333-238508) and on Forms 
S-8 (Registration Nos. 033-54158, 333-58676, 333-115713, 
333-159513, 333-
174145, 333-208188, 333-188594 and 333-211238) 
of Quaker Chemical Corporation of our report dated March 
1, 2021 relating to the 
financial statements and the effectiveness of 
internal control over financial reporting, which appears in this Form 
10-K. 
/s/ PricewaterhouseCoopers LLP 
Philadelphia, Pennsylvania 
March 1, 2021 

exhibit311

 
 
1 
 
EXHIBIT 31.1 
 
CERTIFICATION 
OF CHIEF EXECUTIVE OFFICER OF THE COMPANY 
PURSUANT TO RULE 13a-14(a) OF THE 
SECURITIES EXCHANGE ACT OF 1934 
 
I, Michael F. 
Barry, certify that: 
 
1.
 
I have reviewed this Annual Report on Form 10-K of Quaker 
Chemical Corporation; 
2.
 
Based on my knowledge, this report does not contain 
any untrue statement of a material fact or omit to state a material 
fact 
necessary to make the statements made, in light of the circumstances 
under which such statements were made, not 
misleading with respect to the period covered by this report; 
 
3.
 
Based on my knowledge, the financial statements, and 
other financial information included in this report, fairly 
present in 
all material respects the financial condition, results of operations 
and cash flows of the registrant as of, and for, 
the periods 
presented in this report; 
 
4.
 
The registrant’s other certifying 
officer and I are responsible for establishing and maintaining 
disclosure controls and 
procedures (as defined in Exchange Act Rules 13a-15(e) and 
15d-15(e)) and internal control over financial reporting 
(as 
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 
for the registrant and have: 
 
(a)
 
Designed such disclosure controls and procedures, or caused such 
disclosure controls and procedures to be designed 
under our supervision, to ensure that material information 
relating to the registrant, including its consolidated 
subsidiaries, is made known to us by others within those entities, 
particularly during the period in which this report is 
being prepared; 
 
(b)
 
Designed such internal control over financial reporting, 
or caused such internal control over financial reporting 
to be 
designed under our supervision, to provide reasonable 
assurance regarding the reliability of financial reporting and the 
preparation of financial statements for external purposes in 
accordance with generally accepted accounting principles; 
 
(c)
 
Evaluated the effectiveness of the registrant’s 
disclosure controls and procedures and presented in this report 
our 
conclusions about the effectiveness of the disclosure 
controls and procedures, as of the end of the period covered 
by 
this report based on such evaluation; and 
 
(d)
 
Disclosed in this report any change in the registrant’s 
internal control over financial reporting that occurred during 
the 
registrant’s most recent 
fiscal quarter (the registrant’s fourth 
fiscal quarter in the case of an annual report) that has 
materially affected, or is reasonably likely 
to materially affect, the registrant’s 
internal control over financial reporting; 
and 
 
5.
 
The registrant’s other certifying 
officer and I have disclosed, based on our most recent 
evaluation of internal control over 
financial reporting, to the registrant’s 
auditors and the audit committee of the registrant’s 
board of directors (or persons 
performing the equivalent functions): 
 
(a)
 
All significant deficiencies and material weaknesses in the 
design or operation of internal control over financial 
reporting which are reasonably likely to adversely affect 
the registrant’s ability to record, 
process, summarize and 
report financial information; and 
 
(b)
 
Any fraud, whether or not material, that involves management 
or other employees who have a significant role in the 
registrant’s internal control 
over financial reporting. 
 
 
 
Date: March 1, 2021 
 
 
/s/ 
MICHAEL F. BARRY 
Michael F. 
Barry 
Chief Executive Officer 
 

exhibit312

 
 
1 
EXHIBIT 31.2 
 
CERTIFICATION 
OF CHIEF FINANCIAL OFFICER OF THE COMPANY 
PURSUANT TO RULE 13a-14(a) OF THE 
SECURITIES EXCHANGE ACT OF 1934 
 
I, Mary Dean Hall, certify that: 
 
1.
 
I have reviewed this Annual Report on Form 10-K of Quaker 
Chemical Corporation; 
2.
 
Based on my knowledge, this report does not contain 
any untrue statement of a material fact or omit to state a material 
fact 
necessary to make the statements made, in light of the circumstances 
under which such statements were made, not 
misleading with respect to the period covered by this report; 
 
3.
 
Based on my knowledge, the financial statements, and 
other financial information included in this report, fairly 
present in 
all material respects the financial condition, results of operations 
and cash flows of the registrant as of, and for, 
the periods 
presented in this report; 
 
4.
 
The registrant’s other certifying 
officer and I are responsible for establishing and maintaining 
disclosure controls and 
procedures (as defined in Exchange Act Rules 13a-15(e) and 
15d-15(e)) and internal control over financial reporting 
(as 
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 
for the registrant and have: 
 
(a)
 
Designed such disclosure controls and procedures, or caused such 
disclosure controls and procedures to be designed 
under our supervision, to ensure that material information 
relating to the registrant, including its consolidated 
subsidiaries, is made known to us by others within those entities, 
particularly during the period in which this report is 
being prepared; 
 
(b)
 
Designed such internal control over financial reporting, 
or caused such internal control over financial reporting 
to be 
designed under our supervision, to provide reasonable 
assurance regarding the reliability of financial reporting and the 
preparation of financial statements for external purposes in 
accordance with generally accepted accounting principles; 
 
(c)
 
Evaluated the effectiveness of the registrant’s 
disclosure controls and procedures and presented in this report 
our 
conclusions about the effectiveness of the disclosure 
controls and procedures, as of the end of the period covered 
by 
this report based on such evaluation; and 
 
(d)
 
Disclosed in this report any change in the registrant’s 
internal control over financial reporting that occurred during 
the 
registrant’s most recent 
fiscal quarter (the registrant’s fourth 
fiscal quarter in the case of an annual report) that has 
materially affected, or is reasonably likely 
to materially affect, the registrant’s 
internal control over financial reporting; 
and 
 
5.
 
The registrant’s other certifying 
officer and I have disclosed, based on our most recent 
evaluation of internal control over 
financial reporting, to the registrant’s 
auditors and the audit committee of the registrant’s 
board of directors (or persons 
performing the equivalent functions): 
 
(a)
 
All significant deficiencies and material weaknesses in the 
design or operation of internal control over financial 
reporting which are reasonably likely to adversely affect 
the registrant’s ability to record, 
process, summarize and 
report financial information; and 
 
(b)
 
Any fraud, whether or not material, that involves management 
or other employees who have a significant role in the 
registrant’s internal control 
over financial reporting. 
 
 
 
Date: March 1, 2021 
 
 
/s/ 
MARY DEAN HALL 
Mary Dean Hall 
Chief Financial Officer 
 

exhibit321

 
1 
EXHIBIT 32.1 
 
CERTIFICATION 
PURSUANT TO 18 U.S.C. SECTION 1350 
 
The undersigned hereby certifies that the Form 10-K Annual 
Report of Quaker Chemical Corporation (the “Company”) 
for the 
annual period ended December 31, 2020 filed with the Securities and 
Exchange Commission (the “Report”) fully complies with the 
requirements of Section 13(a) or 15(d) of the Securities Exchange 
Act of 1934 and that the information contained in the Report fairly 
presents, in all material respects, the financial condition 
and results of operations of the Company. 
 
Dated: March 1, 2021 
 
/s/ 
MICHAEL F. BARRY 
Michael F. 
Barry 
Chief Executive Officer of Quaker Chemical Corporation

exhibit322

 
 
1 
EXHIBIT 32.2 
 
CERTIFICATION 
PURSUANT TO 18 U.S.C. SECTION 1350 
 
The undersigned hereby certifies that the Form 10-K Annual 
Report of Quaker Chemical Corporation (the “Company”) 
for the 
annual period ended December 31, 2020 filed with the Securities and 
Exchange Commission (the “Report”) fully complies with the 
requirements of Section 13(a) or 15(d) of the Securities Exchange 
Act of 1934 and that the information contained in the Report fairly 
presents, in all material respects, the financial condition 
and results of operations of the Company. 
 
Dated: March 1, 2021 
 
 
/s/ 
MARY DEAN HALL 
Mary Dean Hall 
Chief Financial Officer of Quaker Chemical Corporation 
 