0000081362 2011-01-01 2011-09-30 0000081362 2011-09-30 0000081362 2010-07-01 2010-09-30 0000081362 2010-01-01 2010-09-30 0000081362 2011-07-01 2011-09-30 0000081362 2010-12-31 0000081362 2009-12-31 0000081362 2010-09-30 xbrli:shares iso4217:USD 10-Q 2011-09-30 false 2011 FY --12-31 0000081362 Yes Accelerated Filer Quaker Chemical Corporation No No 12875113 20579000 25766000 147414000 116266000 44718000 31909000 34150000 28932000 15744000 12609000 262605000 215257000 135066000 80191000 57764000 26315000 7937000 22862000 42159000 499833000 754000 73616000 13997000 23314000 111681000 43397000 7492000 78033000 240603000 12875000 88492000 169265000 -19097000 251535000 7695000 259230000 499833000 215482000 449430000 76535000 205359000 128824000 52758000 24030000 9218000 28846000 42561000 101191000 890000 63893000 17140000 19268000 73855000 6108000 81177000 262331000 11492000 38275000 144347000 -13736000 180378000 6721000 187099000 449430000 0.01 0.01 30000000 12875113 11492142 30000000 137669000 401980000 509970000 122827000 88641000 343984000 257081000 59486000 49028000 165986000 144899000 41982000 34699000 119441000 103486000 17504000 9431000 46545000 36515000 2740000 -320000 4070000 1566000 1166000 1345000 3584000 4042000 262000 313000 805000 840000 19340000 8079000 47836000 34879000 5640000 1661000 12961000 8985000 13700000 6418000 34875000 25894000 105000 439000 715000 734000 13805000 6857000 35590000 26628000 447000 517000 1791000 1716000 13358000 6340000 33799000 24912000 182313000 1.04 0.56 2.77 2.22 1.03 0.55 2.73 0.24 2.19 0.70 0.715 0.235 3581000 0 3581000 0 1317000 0 1317000 0 8527000 1596000 136000 6987000 2675000 61000 -1242000 4099000 29390000 16334000 3061000 6196000 8914000 221000 61000 -1181000 -18432000 -185000 30613000 8492000 629000 9635000 -920000 -5187000 25051000 7448000 736000 523000 1559000 2371000 24000 3184000 -1225000 7982000 8645000 2656000 5007000 19510000 6259000 147000 5099000 1516000 -9391000 -1394000 5367000 7768000 3829000 -8377000 356000 2098000 27149000 0 5000000 153000 2294000 48143000 0 4530000 10981000 6862000 0 29000 2718000 0 <p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;font-weight:bold;margin-left:0px;">Note 1 &#8211; Condensed Financial Information</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:6pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">The condensed consolidated financial statements included herein are unaudited and have been prepared in accordance with generally accepted accounting principles in the </font><font style="font-family:Times New Roman;font-size:10pt;">United States</font><font style="font-family:Times New Roman;font-size:10pt;"> for interim financial reporting and the United States Securities and Exchange Commission regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the </font><font style="font-family:Times New Roman;font-size:10pt;">United States</font><font style="font-family:Times New Roman;font-size:10pt;"> have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as discussed below) which are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods. The results for </font><font style="font-family:Times New Roman;font-size:10pt;">the three and nine months ended September 30, 2011</font><font style="font-family:Times New Roman;font-size:10pt;"> are not necessarily indicative of the results to be expected for the full year. 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border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 62px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:62px;">&#160;</td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;">&#160;</td><td style="width: 12px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 62px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:62px;">&#160;</td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;">&#160;</td><td style="width: 12px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 62px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:62px;">&#160;</td></tr><tr style="height: 16px"><td colspan="2" style="width: 351px; 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border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:62px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 8pt;COLOR: #000000;">2,033</font></td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;">&#160;</td><td style="width: 12px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 8pt;COLOR: #000000;">$</font></td><td style="width: 62px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:62px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 8pt;COLOR: #000000;">0</font></td></tr><tr style="height: 15px"><td colspan="2" style="width: 351px; text-align:left;border-color:#000000;min-width:351px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: left;">Company-owned life insurance - Deferred compensation assets</font></td><td style="width: 12px; 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text-align:left;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 62px; text-align:left;border-color:#000000;min-width:62px;">&#160;</td><td style="width: 16px; text-align:left;border-color:#000000;min-width:16px;">&#160;</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 62px; text-align:left;border-color:#000000;min-width:62px;">&#160;</td></tr><tr style="height: 15px"><td style="width: 27px; text-align:left;border-color:#000000;min-width:27px;">&#160;</td><td style="width: 324px; text-align:left;border-color:#000000;min-width:324px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 8pt;COLOR: #000000;">Large capitalization registered investment companies</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 91px; text-align:right;border-color:#000000;min-width:91px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 8pt;COLOR: #000000;">69</font></td><td style="width: 12px; 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text-align:left;border-color:#000000;min-width:69px;">&#160;</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 69px; text-align:left;border-color:#000000;min-width:69px;">&#160;</td><td style="width: 34px; text-align:left;border-color:#000000;min-width:34px;">&#160;</td><td style="width: 12px; text-align:center;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 69px; text-align:left;border-color:#000000;min-width:69px;">&#160;</td></tr><tr style="height: 15px"><td colspan="2" style="width: 313px; text-align:left;border-color:#000000;min-width:313px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 8pt;COLOR: #000000;TEXT-ALIGN: left;">Diluted Earnings per Common Share</font></td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 69px; text-align:left;border-color:#000000;min-width:69px;">&#160;</td><td style="width: 34px; text-align:left;border-color:#000000;min-width:34px;">&#160;</td><td style="width: 12px; text-align:center;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 69px; text-align:left;border-color:#000000;min-width:69px;">&#160;</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 69px; text-align:left;border-color:#000000;min-width:69px;">&#160;</td><td style="width: 34px; text-align:left;border-color:#000000;min-width:34px;">&#160;</td><td style="width: 12px; text-align:center;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 69px; text-align:left;border-color:#000000;min-width:69px;">&#160;</td></tr><tr style="height: 15px"><td style="width: 13px; text-align:left;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 300px; text-align:left;border-color:#000000;min-width:300px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 8pt;COLOR: #000000;">Net income attributable to Quaker Chemical Corporation</font></td><td style="width: 12px; 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text-align:left;border-color:#000000;min-width:34px;">&#160;</td><td style="width: 12px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 69px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:69px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 8pt;COLOR: #000000;">(516)</font></td></tr><tr style="height: 15px"><td style="width: 13px; text-align:left;border-color:#000000;min-width:13px;">&#160;</td><td style="width: 300px; text-align:left;border-color:#000000;min-width:300px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 8pt;COLOR: #000000;">Net income available to common shareholders</font></td><td style="width: 12px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:12px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 8pt;COLOR: #000000;">$</font></td><td style="width: 69px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:69px;"><font style="FONT-FAMILY: Times New Roman;FONT-SIZE: 8pt;COLOR: #000000;">13,136</font></td><td style="width: 34px; 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text-align:left;border-color:#000000;min-width:50px;">&#160;</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;">&#160;</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;">&#160;</td><td style="width: 72px; text-align:left;border-color:#000000;min-width:72px;">&#160;</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;">&#160;</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;">&#160;</td><td style="width: 72px; text-align:left;border-color:#000000;min-width:72px;">&#160;</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;">&#160;</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;">&#160;</td><td style="width: 72px; text-align:left;border-color:#000000;min-width:72px;">&#160;</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;">&#160;</td><td style="width: 10px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:10px;">&#160;</td><td style="width: 50px; 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Liabilities assumed include </font><font style="font-family:Times New Roman;font-size:10pt;">a hold-back of consideration</font><font style="font-family:Times New Roman;font-size:10pt;"> to be paid to the former shareholders </font><font style="font-family:Times New Roman;font-size:10pt;">at one year from the purchase date, absen</font><font style="font-family:Times New Roman;font-size:10pt;">t</font><font style="font-family:Times New Roman;font-size:10pt;"> the occurrence of unforeseen obligations</font><font style="font-family:Times New Roman;font-size:10pt;">.</font></p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">The following table</font><font style="font-family:Times New Roman;font-size:10pt;">s show</font><font style="font-family:Times New Roman;font-size:10pt;"> the allocation of the purchase price of the assets and liabilities acquired as of </font><font style="font-family:Times New Roman;font-size:10pt;">September</font><font style="font-family:Times New Roman;font-size:10pt;"> 30</font><font style="font-family:Times New Roman;font-size:10pt;">, 2011</font><font style="font-family:Times New Roman;font-size:10pt;"> and December 31, 2010</font><font style="font-family:Times New Roman;font-size:10pt;">. 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text-align:left;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 67px; text-align:left;border-color:#000000;min-width:67px;">&#160;</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 67px; text-align:left;border-color:#000000;min-width:67px;">&#160;</td><td style="width: 43px; text-align:left;border-color:#000000;min-width:43px;">&#160;</td></tr><tr style="height: 13px"><td style="width: 43px; text-align:left;border-color:#000000;min-width:43px;">&#160;</td><td style="width: 367px; text-align:left;border-color:#000000;min-width:367px;">&#160;</td><td colspan="2" style="width: 79px; text-align:center;border-color:#000000;min-width:79px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 6.5pt;COLOR: #000000;TEXT-ALIGN: center;">Process</font></td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:center;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 67px; text-align:center;border-color:#000000;min-width:67px;">&#160;</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;">&#160;</td><td style="width: 12px; text-align:left;border-color:#000000;min-width:12px;">&#160;</td><td style="width: 67px; text-align:left;border-color:#000000;min-width:67px;">&#160;</td><td style="width: 43px; text-align:left;border-color:#000000;min-width:43px;">&#160;</td></tr><tr style="height: 13px"><td style="width: 43px; text-align:left;border-color:#000000;min-width:43px;">&#160;</td><td style="width: 367px; text-align:left;border-color:#000000;min-width:367px;">&#160;</td><td colspan="2" style="width: 79px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:79px;"><font style="FONT-WEIGHT: bold;FONT-FAMILY: Times New Roman;FONT-SIZE: 6.5pt;COLOR: #000000;TEXT-ALIGN: center;">Chemicals</font></td><td style="width: 15px; 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Costs of operation include the operation and maintenance of the extraction wells, groundwater monitoring and program management. The duration of the well operation was estimated based on historical trends in concentrations in the monitoring wells within the proximity of the applicable extraction wells. Also factored into the model was the impact of water injected into the underground aquifer from a planned recharge basin adjacent to ACP. Based on the modeling, it is estimated that P-2 will operate for another three to five years and P-3 will operate for one</font><font style="font-family:Times New Roman;font-size:10pt;"> year</font><font style="font-family:Times New Roman;font-size:10pt;"> to up to two years. Operation and maintenance costs were based on historical expenditures and estimated inflation. As mentioned above, a significantly higher maintenance expense was factored into the range if the system operates for the longer period. Also included in the reserve are anticipated expenditures to operate an on-site soil vapor extraction system.</font></p><p style='margin-top:0pt; margin-bottom:6pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">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 $</font><font style="font-family:Times New Roman;font-size:10pt;">493</font><font style="font-family:Times New Roman;font-size:10pt;"> and $374 were accrued at </font><font style="font-family:Times New Roman;font-size:10pt;">September 30, 2011</font><font style="font-family:Times New Roman;font-size:10pt;"> and </font><font style="font-family:Times New Roman;font-size:10pt;">December 31, 2010</font><font style="font-family:Times New Roman;font-size:10pt;">, respectively, to provide for such anticipated future environmental assessments and remediation costs.</font></p><p style='margin-top:0pt; margin-bottom:6pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">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 the proceeds from insurance settlements received. 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 $7,700 (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 the policies. A significant portion of this primary insurance coverage was provided by an insurer that is now insolvent, and the other primary insurers have asserted that the aggregate limits of their policies have 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 late 2005 and in the first quarter of 2007 for $15,000 and $20,000, respectively. The payments under the latest settlement and release agreement were structured to be received over a four-year period with annual installments of $5,000, the final installment of which was received in the first quarter of 2010. The proceeds of both settlements are restricted and can only be used to pay claims and costs of defense associated with the subsidiary's asbestos litigation. During the third quarter of 2007, the subsidiary and the remaining primary insurance carrier entered into a Claim Handling and Funding Agreement, under which the carrier will pay 27% of defense and indemnity costs incurred by or on behalf of the subsidiary in connection with asbestos bodily injury claims for a minimum of five years beginning July&#160;1, 2007. 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 also believes that, if the coverage issues under the primary policies with the remaining carrier are resolved adversely to the subsidiary and all settlement proceeds are 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. </font></p><p style='margin-top:0pt; margin-bottom:6pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">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. Although asbestos litigation is particularly difficult to predict, especially with respect to claims that are currently not being actively pursued against the Company, 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 obligations because of the parent-subsidiary relationship, the Company believes it is not probable that the Company will incur any material losses. All of the active asbestos cases against the Company challenging the parent-subsidiary relationship are in the early stages of litigation. The Company has been successful in the past having claims naming it dismissed during initial proceedings. Since the Company may be in this early stage of litigation for some time, it is not possible to estimate additional losses or range of loss, if any.</font></p><p style='margin-top:0pt; margin-bottom:6pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">As initially disclosed in the Company's second quarter 2010 Form 10-Q, one of the Company's subsidiaries may have paid certain value-added-taxes (&#8220;VAT&#8221;) incorrectly and, in certain cases, may not have collected sufficient VAT from certain customers. The VAT rules and regulations at issue are complex, vary among the jurisdictions and can be contradictory, in particular as to how they relate to the subsidiary's products and to sales between jurisdictions.</font></p><p style='margin-top:0pt; margin-bottom:6pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">Since its inception, the subsidiary had been consistent in its VAT collection and remittance practices and had never been contacted by any tax authority relative to VAT. Now the subsidiary has determined that for certain products, a portion of the VAT was incorrectly paid and that the total VAT due exceeds the amount originally collected and remitted by the subsidiary. In 2010, three jurisdictions contacted the subsidiary</font><font style="font-family:Times New Roman;font-size:10pt;"> and since then</font><font style="font-family:Times New Roman;font-size:10pt;">, the subsidiary has either participated in an amnesty program or entered into a settlement whereby it paid a reduced portion of the amounts owed in resolution of those jurisdictions' claims. </font><font style="font-family:Times New Roman;font-size:10pt;">T</font><font style="font-family:Times New Roman;font-size:10pt;">he subsidiary has modified its VAT invoicing and payment procedures to eliminate or mitigate future exposure.</font></p><p style='margin-top:0pt; margin-bottom:6pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">In analyzing the subsidiary's exposure, it is difficult to estimate both the probability and the amount of any potential liabilities due to a number of factors, including: the decrease in exposure over time due to applicable statutes of limitations and actions taken by the subsidiary, the joint liability of customers and suppliers for a portion of the VAT, the availability of a VAT refund for VAT incorrectly paid through an administrative process, any amounts which may have been or will be paid by customers, as well as the timing and structure of any tax amnesties or settlements. In addition, interest and penalties on any VAT due can be a multiple of the base tax. The subsidiary may contest any tax assessment administratively and/or judicially for an extended period of time, but may ultimately resolve its disputes through participation in tax amnesty programs, which are a common practice for settling tax disputes in the jurisdictions in question and which have historically occurred on a regular basis, resulting in significant reductions of interest and penalties. Also, the timing of payments and refunds of VAT may not be contemporaneous, and, if additional VAT is owed, it may not be fully recoverable from customers. As a result, this matter has the potential to have a material adverse impact on the Company's financial position, liquidity and capital resources and the results of operations.</font></p><p style='margin-top:0pt; margin-bottom:6pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">In 2010, the Company recorded a net charge of $4,132, which consisted of a net $3,901 charge related to two tax dispute settlements entered into by the subsidiary, as well as a net $231 charge representing management's best estimate based on the information available to it, including the factors noted above, of the amount that ultimately may be paid related to the other jurisdiction that has made inquiries. At </font><font style="font-family:Times New Roman;font-size:10pt;">September</font><font style="font-family:Times New Roman;font-size:10pt;"> 30</font><font style="font-family:Times New Roman;font-size:10pt;">, 2011 and December 31, 2010, the Company had $</font><font style="font-family:Times New Roman;font-size:10pt;">302</font><font style="font-family:Times New Roman;font-size:10pt;"> and $</font><font style="font-family:Times New Roman;font-size:10pt;">1,805</font><font style="font-family:Times New Roman;font-size:10pt;">, respectively, accrued for remaining payments to be made under tax dispute settlements entered into by the subsidiary. The change in the accrual from December 31, 2010 reflects </font><font style="font-family:Times New Roman;font-size:10pt;">year-to-date </font><font style="font-family:Times New Roman;font-size:10pt;">payment</font><font style="font-family:Times New Roman;font-size:10pt;">s</font><font style="font-family:Times New Roman;font-size:10pt;"> made in accordance with the Company's tax dispute settlements. </font></p><p style='margin-top:0pt; margin-bottom:6pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">The charges taken by the Company in 2010 assume a successful recovery of the VAT incorrectly paid, as well as reductions in interest and penalties from anticipated future amnesty programs or settlements. On a similar basis, if all other potentially impacted jurisdictions were to initiate audits and issue assessments, the remaining exposure, net of refunds, could be from $0 to $</font><font style="font-family:Times New Roman;font-size:10pt;">28,000</font><font style="font-family:Times New Roman;font-size:10pt;"> with one jurisdiction representing approximat</font><font style="font-family:Times New Roman;font-size:10pt;">ely </font><font style="font-family:Times New Roman;font-size:10pt;">84</font><font style="font-family:Times New Roman;font-size:10pt;"> percent of this additional exposure, assuming the continued availability of future amnesty programs or settlements to reduce the interest and penalties. If there are future assessments but no such future amnesty programs or settlements, the potential exposure could be higher.</font></p><p style='margin-top:0pt; margin-bottom:6pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">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.</font></p>