Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'SENSIENT TECHNOLOGIES CORP | ' |
Entity Central Index Key | '0000310142 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 48,219,181 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
CONSOLIDATED_CONDENSED_STATEME
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract] | ' | ' | ' | ' |
Revenue | $374,666 | $378,806 | $742,797 | $744,446 |
Cost of products sold | 245,002 | 256,285 | 488,625 | 504,788 |
Selling and administrative expenses | 81,455 | 73,843 | 204,384 | 154,642 |
Operating income | 48,209 | 48,678 | 49,788 | 85,016 |
Interest expense (loss) | 3,718 | 4,008 | 7,849 | 8,269 |
Earnings (loss) before income taxes | 44,491 | 44,670 | 41,939 | 76,747 |
Income taxes | 15,430 | 12,388 | 14,953 | 23,026 |
Net earnings | $29,061 | $32,282 | $26,986 | $53,721 |
Weighted average number of shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 48,665 | 49,751 | 49,256 | 49,731 |
Diluted (in shares) | 48,953 | 49,917 | 49,512 | 49,892 |
Earnings per common share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.60 | $0.65 | $0.55 | $1.08 |
Diluted (in dollars per share) | $0.59 | $0.65 | $0.55 | $1.08 |
Dividends declared per common share (in dollars per share) | $0 | $0.23 | $0.48 | $0.45 |
CONSOLIDATED_CONDENSED_STATEME1
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ' | ' | ' | ' |
Comprehensive Income | $34,130 | $24,657 | $32,210 | $28,043 |
CONSOLIDATED_CONDENSED_BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $28,428 | $19,836 |
Trade accounts receivable, net | 265,641 | 233,751 |
Inventories | 479,450 | 474,452 |
Prepaid expenses and other current assets | 74,373 | 61,786 |
TOTAL CURRENT ASSETS | 847,892 | 789,825 |
OTHER ASSETS | 89,305 | 47,786 |
INTANGIBLE ASSETS, NET | 9,694 | 10,546 |
GOODWILL | 459,554 | 457,269 |
PROPERTY, PLANT AND EQUIPMENT: | ' | ' |
Land | 45,630 | 56,343 |
Buildings | 329,721 | 374,388 |
Machinery and equipment | 747,956 | 751,267 |
Construction in progress | 64,792 | 55,236 |
Property, Plant and Equipment, Gross, Total | 1,188,099 | 1,237,234 |
Less accumulated depreciation | -668,072 | -671,926 |
Property, Plant and Equipment, Net, Total | 520,027 | 565,308 |
TOTAL ASSETS | 1,926,472 | 1,870,734 |
CURRENT LIABILITIES: | ' | ' |
Trade accounts payable | 98,693 | 99,117 |
Accrued salaries, wages and withholdings from employees | 28,120 | 32,669 |
Other accrued expenses | 95,422 | 78,579 |
Income taxes | 3,450 | 5,478 |
Short-term borrowings | 22,521 | 7,050 |
TOTAL CURRENT LIABILITIES | 248,206 | 222,893 |
OTHER LIABILITIES | 32,521 | 28,495 |
ACCRUED EMPLOYEE AND RETIREE BENEFITS | 27,145 | 28,538 |
LONG-TERM DEBT | 472,105 | 348,124 |
SHAREHOLDERS' EQUITY: | ' | ' |
Common stock | 5,396 | 5,396 |
Additional paid-in capital | 108,202 | 105,119 |
Earnings reinvested in the business | 1,221,051 | 1,217,874 |
Treasury stock, at cost | -199,380 | -91,707 |
Accumulated other comprehensive loss | 11,226 | 6,002 |
TOTAL SHAREHOLDERS' EQUITY | 1,146,495 | 1,242,684 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,926,472 | $1,870,734 |
CONSOLIDATED_CONDENSED_STATEME2
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net earnings | $26,986 | $53,721 |
Adjustments to arrive at net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 26,395 | 25,893 |
Share-based compensation | 2,849 | 1,330 |
Loss on assets | 48,260 | 3,073 |
Deferred income taxes | -6,590 | -222 |
Changes in operating assets and liabilities | -28,461 | -13,751 |
Net cash provided by operating activities | 69,439 | 70,044 |
Cash flows from investing activities: | ' | ' |
Acquisition of property, plant and equipment | -29,752 | -55,241 |
Proceeds from sale of assets | 930 | 31 |
Other investing activity | -620 | -132 |
Net cash used in investing activities | -29,442 | -55,342 |
Cash flows from financing activities: | ' | ' |
Proceeds from additional borrowings | 174,741 | 75,596 |
Debt payments | -73,478 | -55,127 |
Purchase of treasury stock | -108,753 | 0 |
Dividends paid | -23,809 | -22,507 |
Proceeds from options exercised and other equity transactions | 396 | 420 |
Net cash used in financing activities | -30,903 | -1,618 |
Effect of exchange rate changes on cash and cash equivalents | -502 | -1,481 |
Net increase in cash and cash equivalents | 8,592 | 11,603 |
Cash and cash equivalents at beginning of period | 19,836 | 15,062 |
Cash and cash equivalents at end of period | $28,428 | $26,665 |
Accounting_Policies
Accounting Policies | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract ] | ' | |
Accounting Policies | ' | |
1 | Accounting Policies | |
In the opinion of Sensient Technologies Corporation (the “Company”), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) which are necessary to present fairly the financial position of the Company as of June 30, 2014, and December 31, 2013, and the results of operations, comprehensive income and cash flows for the three and six months ended June 30, 2014 and 2013. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. | ||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | ||
Expenses are charged to operations in the year incurred. However, for interim reporting purposes, certain expenses are charged to operations based on a proportionate share of estimated annual amounts rather than as they are actually incurred. In interim periods, depreciation expense is estimated using actual depreciation on fixed assets that have been placed in service at the beginning of the year, combined with an estimate of depreciation expense on expected current year additions. | ||
On January 1, 2014, the Company adopted Accounting Standards Update (ASU) No. 2013-11, Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which requires companies to change the balance sheet presentation of certain unrecognized tax benefits and deferred tax assets. The adoption of this ASU had no material impact on the Company’s balance sheet presentation, financial condition or results of operations. | ||
Refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2013, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change. |
Fair_Value
Fair Value | 6 Months Ended | |
Jun. 30, 2014 | ||
Fair Value [Abstract] | ' | |
Fair Value | ' | |
2 | Fair Value | |
Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, defines fair value for financial assets and liabilities, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. As of June 30, 2014, and December 31, 2013, the Company’s assets and liabilities subject to this standard are forward exchange contracts and investments in a money market fund and municipal investments. The fair value of the forward exchange contracts based on current pricing obtained for comparable derivative products (Level 2 inputs) was negligible and an asset of $0.2 million as of June 30, 2014 and December 31, 2013, respectively. The fair value of the investments based on June 30, 2014, and December 31, 2013, market quotes (Level 1 inputs) was an asset of $21.1 million and $19.8 million, respectively, and is reported in Other Assets in the Consolidated Condensed Balance Sheets. | ||
The carrying values of the Company’s cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses and short-term borrowings approximated fair values as of June 30, 2014. The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2 inputs). The carrying value of the long-term debt at June 30, 2014, was $472.1 million. The fair value of the long-term debt at June 30, 2014, was $485.3 million. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
3 | Segment Information | ||||||||||||||||
Operating results by segment for the periods and at the dates presented are as follows: | |||||||||||||||||
(In thousands) | Flavors & | Corporate | |||||||||||||||
Fragrances | Color | & Other | Consolidated | ||||||||||||||
Three months ended June 30, 2014: | |||||||||||||||||
Revenue from external customers | $ | 207,961 | $ | 127,824 | $ | 38,881 | $ | 374,666 | |||||||||
Intersegment revenue | 8,231 | 5,401 | 111 | 13,743 | |||||||||||||
Total revenue | $ | 216,192 | $ | 133,225 | $ | 38,992 | $ | 388,409 | |||||||||
Operating income (loss) | $ | 33,554 | $ | 30,858 | $ | (16,203 | ) | $ | 48,209 | ||||||||
Interest expense | - | - | 3,718 | 3,718 | |||||||||||||
Earnings (loss) before income taxes | $ | 33,554 | $ | 30,858 | $ | (19,921 | ) | $ | 44,491 | ||||||||
Three months ended June 30, 2013: | |||||||||||||||||
Revenue from external customers | $ | 218,315 | $ | 122,871 | $ | 37,620 | $ | 378,806 | |||||||||
Intersegment revenue | 8,311 | 5,360 | 33 | 13,704 | |||||||||||||
Total revenue | $ | 226,626 | $ | 128,231 | $ | 37,653 | $ | 392,510 | |||||||||
Operating income (loss) | $ | 31,984 | $ | 28,432 | $ | (11,738 | ) | $ | 48,678 | ||||||||
Interest expense | - | - | 4,008 | 4,008 | |||||||||||||
Earnings (loss) before income taxes | $ | 31,984 | $ | 28,432 | $ | (15,746 | ) | $ | 44,670 | ||||||||
(In thousands) | Flavors & | Corporate | |||||||||||||||
Fragrances | Color | & Other | Consolidated | ||||||||||||||
Six months ended June 30, 2014: | |||||||||||||||||
Revenue from external customers | $ | 412,081 | $ | 256,493 | $ | 74,223 | $ | 742,797 | |||||||||
Intersegment revenue | 17,490 | 10,370 | 111 | 27,971 | |||||||||||||
Total revenue | $ | 429,571 | $ | 266,863 | $ | 74,334 | $ | 770,768 | |||||||||
Operating income (loss) | $ | 63,493 | $ | 60,265 | $ | (73,970 | ) | $ | 49,788 | ||||||||
Interest expense | - | - | 7,849 | 7,849 | |||||||||||||
Earnings (loss) before income taxes | $ | 63,493 | $ | 60,265 | $ | (81,819 | ) | $ | 41,939 | ||||||||
Six months ended June 30, 2013: | |||||||||||||||||
Revenue from external customers | $ | 425,311 | $ | 246,654 | $ | 72,481 | $ | 744,446 | |||||||||
Intersegment revenue | 17,156 | 11,056 | 48 | 28,260 | |||||||||||||
Total revenue | $ | 442,467 | $ | 257,710 | $ | 72,529 | $ | 772,706 | |||||||||
Operating income (loss) | $ | 60,390 | $ | 55,115 | $ | (30,489 | ) | $ | 85,016 | ||||||||
Interest expense | - | - | 8,269 | 8,269 | |||||||||||||
Earnings (loss) before income taxes | $ | 60,390 | $ | 55,115 | $ | (38,758 | ) | $ | 76,747 | ||||||||
Beginning in the first quarter of 2014, the results of operations for the Company’s fragrances businesses in Asia Pacific and China, previously reported in the Corporate & Other segment, are reported in the Flavors & Fragrances Group, and the results of operations for the Company’s pharmaceutical flavors business, previously reported in the Flavors & Fragrances Group, are reported in the Color Group with the pharmaceutical colors business. Results for 2013 have been restated to reflect these changes. | |||||||||||||||||
The Company evaluates performance based on operating income of the respective segments before restructuring and other costs, interest expense and income taxes. The 2014 and 2013 restructuring and other costs are included in the Corporate & Other segment. |
Inventories
Inventories | 6 Months Ended | |
Jun. 30, 2014 | ||
Inventories [Abstract] | ' | |
Inventories | ' | |
4 | Inventories | |
At June 30, 2014, and December 31, 2013, inventories included finished and in-process products totaling $339.4 million and $317.1 million, respectively, and raw materials and supplies of $140.1 million and $157.4 million, respectively. |
Retirement_Plans
Retirement Plans | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Retirement Plans [Abstract] | ' | ||||||||||||||||
Retirement Plans | ' | ||||||||||||||||
5 | Retirement Plans | ||||||||||||||||
The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 635 | $ | 755 | $ | 1,267 | $ | 1,513 | |||||||||
Interest cost | 603 | 600 | 1,202 | 1,204 | |||||||||||||
Expected return on plan assets | (480 | ) | (362 | ) | (954 | ) | (727 | ) | |||||||||
Amortization of prior service cost | 43 | 43 | 86 | 86 | |||||||||||||
Amortization of actuarial (gain) loss | (157 | ) | 799 | (317 | ) | 1,599 | |||||||||||
Curtailment gain | (115 | ) | - | (115 | ) | - | |||||||||||
Total defined benefit expense | $ | 529 | $ | 1,835 | $ | 1,169 | $ | 3,675 |
Shareholders_Equity
Shareholders' Equity | 6 Months Ended | |
Jun. 30, 2014 | ||
Shareholders' Equity [Abstract] | ' | |
Shareholders' Equity | ' | |
6 | Shareholders’ Equity | |
During the three and six months ended June 30, 2014, the Company repurchased 1.8 million and 2 million shares of its common stock for an aggregate price of $97.8 million and $108.8 million, respectively. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activity | 6 Months Ended | |
Jun. 30, 2014 | ||
Derivative Instruments and Hedging Activity [Abstract] | ' | |
Derivative Instruments and Hedging Activity | ' | |
7 | Derivative Instruments and Hedging Activity | |
The Company may use forward exchange contracts and foreign currency denominated debt to manage its exposure to foreign exchange risk by reducing the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales and other known foreign currency exposures. These forward exchange contracts have maturities of less than twelve months. The Company’s primary hedging activities and their accounting treatment are summarized below: | ||
Forward exchange contracts – The forward exchange contracts that have been designated as hedges are accounted for as cash flow hedges. The Company had $28.1 million and $29.6 million of forward exchange contracts, designated as hedges, outstanding as of June 30, 2014, and December 31, 2013, respectively. Due to the short term nature of these contracts, the results of these transactions are not material to the financial statements. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges and the results of these transactions are not material to the financial statements. | ||
Net investment hedges – The Company has certain debt denominated in Euros and Swiss Francs. These debt instruments have been designated as partial hedges of the Company’s Euro and Swiss Franc net asset positions. Changes in the fair value of this debt attributable to changes in the spot foreign exchange rate are recorded in foreign currency translation in other comprehensive income (“OCI”). As of June 30, 2014, and December 31, 2013, the total value of the Company’s Euro and Swiss Franc debt was $109.8 million and $96.5 million, respectively. For the three and six months ended June 30, 2014, the impact of foreign exchange rates on these debt instruments decreased debt by $0.5 million and $0.2 million, respectively, and has been recorded as foreign currency translation in OCI. |
Income_Taxes
Income Taxes | 6 Months Ended | |
Jun. 30, 2014 | ||
Income Taxes [Abstract] | ' | |
Income Taxes | ' | |
8 | Income Taxes | |
The effective income tax rates for the quarters ended June 30, 2014 and 2013, were 34.7% and 27.7%, respectively. For the six-month periods ended June 30, 2014 and 2013, the effective income tax rates were 35.7% and 30.0%, respectively. The effective tax rates in both 2014 and 2013 were impacted by changes in estimates associated with the finalization of prior year foreign and domestic tax items, including the reversal of valuation allowances related to tax loss carryovers and from the restructuring activities. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||
9 | Accumulated Other Comprehensive Income | ||||||||||||||||
The following tables summarize the changes in Accumulated Other Comprehensive Income (OCI) during the three- and six-month periods ended June 30, 2014: | |||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
(In thousands) | Cash Flow | Pension | Foreign | Total | |||||||||||||
Hedges (a) | Items (a) | Currency | |||||||||||||||
Items | |||||||||||||||||
Balance as of March 31, 2014 | $ | 97 | $ | (6,830 | ) | $ | 12,890 | $ | 6,157 | ||||||||
Other comprehensive loss before reclassifications | 489 | - | 4,885 | 5,374 | |||||||||||||
Amounts reclassified from OCI | (245 | ) | (60 | ) | - | (305 | ) | ||||||||||
Balance as of June 30, 2014 | $ | 341 | $ | (6,890 | ) | $ | 17,775 | $ | 11,226 | ||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||
(In thousands) | Cash Flow | Pension | Foreign | Total | |||||||||||||
Hedges (a) | Items (a) | Currency | |||||||||||||||
Items | |||||||||||||||||
Balance as of December 31, 2013 | $ | (99 | ) | $ | (6,768 | ) | $ | 12,869 | $ | 6,002 | |||||||
Other comprehensive loss before reclassifications | 750 | - | 4,906 | 5,656 | |||||||||||||
Amounts reclassified from OCI | (310 | ) | (122 | ) | - | (432 | ) | ||||||||||
Balance as of June 30, 2014 | $ | 341 | $ | (6,890 | ) | $ | 17,775 | $ | 11,226 | ||||||||
(a) | Cash Flow Hedges and Pension Items are net of tax. | ||||||||||||||||
The following tables summarize the pension items reclassified out of OCI and into the Statement of Earnings during the three- and six-month periods ended June 30, 2014 and 2013: | |||||||||||||||||
(In thousands) | Three Months Ended | Three Months Ended | |||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||
Amortization of pension expense included in selling and administrative expense: | |||||||||||||||||
Prior service cost | $ | 43 | $ | 43 | |||||||||||||
Actuarial (gain) loss | (157 | ) | 799 | ||||||||||||||
Total before income taxes | (114 | ) | 842 | ||||||||||||||
Tax expense (benefit) | 54 | (315 | ) | ||||||||||||||
Total net of tax | $ | (60 | ) | $ | 527 | ||||||||||||
(In thousands) | Six Months Ended | Six Months Ended | |||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||
Amortization of pension expense included in selling and administrative expense: | |||||||||||||||||
Prior service cost | $ | 86 | $ | 86 | |||||||||||||
Actuarial (gain) loss | (317 | ) | 1,599 | ||||||||||||||
Total before income taxes | (231 | ) | 1,685 | ||||||||||||||
Tax expense (benefit) | 109 | (630 | ) | ||||||||||||||
Total net of tax | $ | (122 | ) | $ | 1,055 |
Restructuring
Restructuring | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Restructuring [Abstract] | ' | ||||||||||||
Restructuring | ' | ||||||||||||
10 | Restructuring | ||||||||||||
In March of this year, the Company announced a restructuring plan (2014 Restructuring Plan) related to eliminating underperforming operations, consolidating manufacturing facilities and improving efficiencies within the Company. The Company anticipates that the 2014 Restructuring Plan will impact several facilities and will generate cost savings estimated to be approximately $30 million per year, with incremental savings expected to be achieved over the next few years and the full benefit expected to be achieved after 2015. The Company also anticipates that the 2014 Restructuring Plan will include a reduction in headcount by approximately 300 employees, primarily direct and indirect manufacturing labor, and pre-tax charges of approximately $120 million to $130 million. In connection with the 2014 Restructuring Plan, less than 10 employees were terminated as of June 30, 2014 and limited savings were recognized by June 30, 2014. | |||||||||||||
The Company determined that certain long-lived assets, including land, buildings and certain pieces of equipment associated with the identified underperforming operations were impaired. As a result, the Company has reduced the carrying amounts of these assets to approximately $28.1 million, their aggregate respective fair values, which were determined based on independent market valuations for these assets. | |||||||||||||
For the three and six months ended June 30, 2014, the Company recorded restructuring and other costs of $13.0 million ($10.7 million after-tax) and $65.7 million ($48.2 million after-tax). The Company determined that was the appropriate amount of restructuring and other costs to record in each period in accordance with GAAP and based on an internal review of the affected facilities and consultation with legal and other advisors. Included within the restructuring and other costs, the Company incurred $2.2 million and $3.1 million, respectively, related to the 2014 proxy contest during the three and six months ended June 30, 2014. These costs are included in Other costs in the table below and mainly relate to proxy solicitation, public relations, technical consulting and legal services. | |||||||||||||
Detail of the restructuring and other costs recorded in selling and administrative expenses in the Corporate & Other segment during the three- and six-month periods ended June 30, 2014 are as follows: | |||||||||||||
Three Months | Six Months | ||||||||||||
Ended, | Ended, | ||||||||||||
(In thousands) | 30-Jun-14 | 30-Jun-14 | |||||||||||
Employee separation | $ | 1,256 | $ | 13,578 | |||||||||
Long-lived asset impairment | 9,212 | 47,872 | |||||||||||
Intangibles impairment | - | 1,049 | |||||||||||
Gain on asset sales | - | (602 | ) | ||||||||||
Other costs (1) | 2,511 | 3,804 | |||||||||||
Total | $ | 12,979 | $ | 65,701 | |||||||||
-1 | Other costs include decommissioning costs, professional services, personnel moving costs, other related costs and 2014 proxy contest costs. | ||||||||||||
The Company expects to incur approximately $30 million to $35 million of additional restructuring costs by the end of December 2014 and $25 million to $30 million of additional restructuring costs by the end of 2016, consisting primarily of employee separations, asset impairments, and other restructuring related costs. | |||||||||||||
For the three and six months ended June 30, 2013, the Company recorded restructuring costs of $6.6 million ($4.7 million after-tax) and $19.4 million ($14.1 million after-tax), respectively, related to the 2013 restructuring program to relocate the Flavors & Fragrances Group headquarters to Chicago, as well as a profit improvement plan across all segments of the Company. Detail of the restructuring expenses recorded in Corporate & Other segment is as follows: | |||||||||||||
Three months ended June 30, 2013 | |||||||||||||
Selling & | Cost of | ||||||||||||
(In thousands) | Administrative | Products Sold | Total | ||||||||||
Employee separation | $ | 2,428 | $ | - | $ | 2,428 | |||||||
Long-lived asset impairment | 880 | - | 880 | ||||||||||
Write-down of inventory | - | 277 | 277 | ||||||||||
Other costs(1) | 3,057 | - | 3,057 | ||||||||||
Total | $ | 6,365 | $ | 277 | $ | 6,642 | |||||||
Six months ended June 30, 2013 | |||||||||||||
Selling & | Cost of | ||||||||||||
(In thousands) | Administrative | Products Sold | Total | ||||||||||
Employee separation | $ | 11,340 | $ | - | $ | 11,340 | |||||||
Long-lived asset impairment | 3,406 | - | 3,406 | ||||||||||
Write-down of inventory | - | 872 | 872 | ||||||||||
Other costs(1) | 3,797 | - | 3,797 | ||||||||||
Total | $ | 18,543 | $ | 872 | $ | 19,415 | |||||||
-1 | Other costs include decommissioning, professional services, personnel (other than employee separations) and moving related costs. | ||||||||||||
The Company evaluates performance based on operating income of each segment before restructuring costs. The restructuring and other costs are recorded in the Corporate & Other segment. The following table summarizes the restructuring and other costs by segment that the costs relate to for the three and six months ended June 30, 2014 and 2013: | |||||||||||||
Three Months Ended, | |||||||||||||
(In thousands) | 30-Jun-14 | 30-Jun-13 | |||||||||||
Flavors & Fragrances | $ | 9,068 | $ | 5,951 | |||||||||
Color | 1,411 | 600 | |||||||||||
Corporate & Other | 2,500 | 91 | |||||||||||
Total | $ | 12,979 | $ | 6,642 | |||||||||
Six Months Ended, | |||||||||||||
(In thousands) | 30-Jun-14 | 30-Jun-13 | |||||||||||
Flavors & Fragrances | $ | 54,051 | $ | 14,490 | |||||||||
Color | 7,950 | 4,310 | |||||||||||
Corporate & Other | 3,700 | 615 | |||||||||||
Total | $ | 65,701 | $ | 19,415 | |||||||||
The following table summarizes the accrual for the restructuring and other charges for the six-month period ended June 30, 2014: | |||||||||||||
Employee | Asset Related | ||||||||||||
(In thousands) | Separations | and Other | Total | ||||||||||
Balance as of December 31, 2013 | $ | 4,562 | $ | 1,588 | $ | 6,150 | |||||||
Restructuring and other costs | 13,578 | 52,123 | 65,701 | ||||||||||
Gain on sale of assets | - | 602 | 602 | ||||||||||
Cash spent | (2,831 | ) | (1,808 | ) | (4,639 | ) | |||||||
Reduction of assets | - | (48,921 | ) | (48,921 | ) | ||||||||
Translation adjustment | (87 | ) | - | (87 | ) | ||||||||
Balance as of June 30, 2014 | $ | 15,222 | $ | 3,584 | $ | 18,806 |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |
Jun. 30, 2014 | ||
Commitments and Contingencies [Abstract] | ' | |
Commitments and Contingencies | ' | |
11 | Commitments and Contingencies | |
The Company is involved in various claims and litigation arising in the normal course of business. In the judgment of management, which relies in part on information from Company counsel, the ultimate resolution of these actions will not materially affect the consolidated financial statements of the Company. |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
Operating results by segment for the periods and at the dates presented are as follows: | |||||||||||||||||
(In thousands) | Flavors & | Corporate | |||||||||||||||
Fragrances | Color | & Other | Consolidated | ||||||||||||||
Three months ended June 30, 2014: | |||||||||||||||||
Revenue from external customers | $ | 207,961 | $ | 127,824 | $ | 38,881 | $ | 374,666 | |||||||||
Intersegment revenue | 8,231 | 5,401 | 111 | 13,743 | |||||||||||||
Total revenue | $ | 216,192 | $ | 133,225 | $ | 38,992 | $ | 388,409 | |||||||||
Operating income (loss) | $ | 33,554 | $ | 30,858 | $ | (16,203 | ) | $ | 48,209 | ||||||||
Interest expense | - | - | 3,718 | 3,718 | |||||||||||||
Earnings (loss) before income taxes | $ | 33,554 | $ | 30,858 | $ | (19,921 | ) | $ | 44,491 | ||||||||
Three months ended June 30, 2013: | |||||||||||||||||
Revenue from external customers | $ | 218,315 | $ | 122,871 | $ | 37,620 | $ | 378,806 | |||||||||
Intersegment revenue | 8,311 | 5,360 | 33 | 13,704 | |||||||||||||
Total revenue | $ | 226,626 | $ | 128,231 | $ | 37,653 | $ | 392,510 | |||||||||
Operating income (loss) | $ | 31,984 | $ | 28,432 | $ | (11,738 | ) | $ | 48,678 | ||||||||
Interest expense | - | - | 4,008 | 4,008 | |||||||||||||
Earnings (loss) before income taxes | $ | 31,984 | $ | 28,432 | $ | (15,746 | ) | $ | 44,670 | ||||||||
(In thousands) | Flavors & | Corporate | |||||||||||||||
Fragrances | Color | & Other | Consolidated | ||||||||||||||
Six months ended June 30, 2014: | |||||||||||||||||
Revenue from external customers | $ | 412,081 | $ | 256,493 | $ | 74,223 | $ | 742,797 | |||||||||
Intersegment revenue | 17,490 | 10,370 | 111 | 27,971 | |||||||||||||
Total revenue | $ | 429,571 | $ | 266,863 | $ | 74,334 | $ | 770,768 | |||||||||
Operating income (loss) | $ | 63,493 | $ | 60,265 | $ | (73,970 | ) | $ | 49,788 | ||||||||
Interest expense | - | - | 7,849 | 7,849 | |||||||||||||
Earnings (loss) before income taxes | $ | 63,493 | $ | 60,265 | $ | (81,819 | ) | $ | 41,939 | ||||||||
Six months ended June 30, 2013: | |||||||||||||||||
Revenue from external customers | $ | 425,311 | $ | 246,654 | $ | 72,481 | $ | 744,446 | |||||||||
Intersegment revenue | 17,156 | 11,056 | 48 | 28,260 | |||||||||||||
Total revenue | $ | 442,467 | $ | 257,710 | $ | 72,529 | $ | 772,706 | |||||||||
Operating income (loss) | $ | 60,390 | $ | 55,115 | $ | (30,489 | ) | $ | 85,016 | ||||||||
Interest expense | - | - | 8,269 | 8,269 | |||||||||||||
Earnings (loss) before income taxes | $ | 60,390 | $ | 55,115 | $ | (38,758 | ) | $ | 76,747 |
Retirement_Plans_Tables
Retirement Plans (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Retirement Plans [Abstract] | ' | ||||||||||||||||
Components of annual benefit cost | ' | ||||||||||||||||
The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 635 | $ | 755 | $ | 1,267 | $ | 1,513 | |||||||||
Interest cost | 603 | 600 | 1,202 | 1,204 | |||||||||||||
Expected return on plan assets | (480 | ) | (362 | ) | (954 | ) | (727 | ) | |||||||||
Amortization of prior service cost | 43 | 43 | 86 | 86 | |||||||||||||
Amortization of actuarial (gain) loss | (157 | ) | 799 | (317 | ) | 1,599 | |||||||||||
Curtailment gain | (115 | ) | - | (115 | ) | - | |||||||||||
Total defined benefit expense | $ | 529 | $ | 1,835 | $ | 1,169 | $ | 3,675 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||||||||||
Changes in accumulated other comprehensive income (AOCI) | ' | ||||||||||||||||
The following tables summarize the changes in Accumulated Other Comprehensive Income (OCI) during the three- and six-month periods ended June 30, 2014: | |||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
(In thousands) | Cash Flow | Pension | Foreign | Total | |||||||||||||
Hedges (a) | Items (a) | Currency | |||||||||||||||
Items | |||||||||||||||||
Balance as of March 31, 2014 | $ | 97 | $ | (6,830 | ) | $ | 12,890 | $ | 6,157 | ||||||||
Other comprehensive loss before reclassifications | 489 | - | 4,885 | 5,374 | |||||||||||||
Amounts reclassified from OCI | (245 | ) | (60 | ) | - | (305 | ) | ||||||||||
Balance as of June 30, 2014 | $ | 341 | $ | (6,890 | ) | $ | 17,775 | $ | 11,226 | ||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||
(In thousands) | Cash Flow | Pension | Foreign | Total | |||||||||||||
Hedges (a) | Items (a) | Currency | |||||||||||||||
Items | |||||||||||||||||
Balance as of December 31, 2013 | $ | (99 | ) | $ | (6,768 | ) | $ | 12,869 | $ | 6,002 | |||||||
Other comprehensive loss before reclassifications | 750 | - | 4,906 | 5,656 | |||||||||||||
Amounts reclassified from OCI | (310 | ) | (122 | ) | - | (432 | ) | ||||||||||
Balance as of June 30, 2014 | $ | 341 | $ | (6,890 | ) | $ | 17,775 | $ | 11,226 | ||||||||
(a) | Cash Flow Hedges and Pension Items are net of tax. | ||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||
The following tables summarize the pension items reclassified out of OCI and into the Statement of Earnings during the three- and six-month periods ended June 30, 2014 and 2013: | |||||||||||||||||
(In thousands) | Three Months Ended | Three Months Ended | |||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||
Amortization of pension expense included in selling and administrative expense: | |||||||||||||||||
Prior service cost | $ | 43 | $ | 43 | |||||||||||||
Actuarial (gain) loss | (157 | ) | 799 | ||||||||||||||
Total before income taxes | (114 | ) | 842 | ||||||||||||||
Tax expense (benefit) | 54 | (315 | ) | ||||||||||||||
Total net of tax | $ | (60 | ) | $ | 527 | ||||||||||||
(In thousands) | Six Months Ended | Six Months Ended | |||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||
Amortization of pension expense included in selling and administrative expense: | |||||||||||||||||
Prior service cost | $ | 86 | $ | 86 | |||||||||||||
Actuarial (gain) loss | (317 | ) | 1,599 | ||||||||||||||
Total before income taxes | (231 | ) | 1,685 | ||||||||||||||
Tax expense (benefit) | 109 | (630 | ) | ||||||||||||||
Total net of tax | $ | (122 | ) | $ | 1,055 |
Restructuring_Tables
Restructuring (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Restructuring [Abstract] | ' | ||||||||||||
Summary of restructuring costs | ' | ||||||||||||
Detail of the restructuring and other costs recorded in selling and administrative expenses in the Corporate & Other segment during the three- and six-month periods ended June 30, 2014 are as follows: | |||||||||||||
Three Months | Six Months | ||||||||||||
Ended, | Ended, | ||||||||||||
(In thousands) | 30-Jun-14 | 30-Jun-14 | |||||||||||
Employee separation | $ | 1,256 | $ | 13,578 | |||||||||
Long-lived asset impairment | 9,212 | 47,872 | |||||||||||
Intangibles impairment | - | 1,049 | |||||||||||
Gain on asset sales | - | (602 | ) | ||||||||||
Other costs (1) | 2,511 | 3,804 | |||||||||||
Total | $ | 12,979 | $ | 65,701 | |||||||||
-1 | Other costs include decommissioning costs, professional services, personnel moving costs, other related costs and 2014 proxy contest costs. | ||||||||||||
The Company expects to incur approximately $30 million to $35 million of additional restructuring costs by the end of December 2014 and $25 million to $30 million of additional restructuring costs by the end of 2016, consisting primarily of employee separations, asset impairments, and other restructuring related costs. | |||||||||||||
For the three and six months ended June 30, 2013, the Company recorded restructuring costs of $6.6 million ($4.7 million after-tax) and $19.4 million ($14.1 million after-tax), respectively, related to the 2013 restructuring program to relocate the Flavors & Fragrances Group headquarters to Chicago, as well as a profit improvement plan across all segments of the Company. Detail of the restructuring expenses recorded in Corporate & Other segment is as follows: | |||||||||||||
Three months ended June 30, 2013 | |||||||||||||
Selling & | Cost of | ||||||||||||
(In thousands) | Administrative | Products Sold | Total | ||||||||||
Employee separation | $ | 2,428 | $ | - | $ | 2,428 | |||||||
Long-lived asset impairment | 880 | - | 880 | ||||||||||
Write-down of inventory | - | 277 | 277 | ||||||||||
Other costs(1) | 3,057 | - | 3,057 | ||||||||||
Total | $ | 6,365 | $ | 277 | $ | 6,642 | |||||||
Six months ended June 30, 2013 | |||||||||||||
Selling & | Cost of | ||||||||||||
(In thousands) | Administrative | Products Sold | Total | ||||||||||
Employee separation | $ | 11,340 | $ | - | $ | 11,340 | |||||||
Long-lived asset impairment | 3,406 | - | 3,406 | ||||||||||
Write-down of inventory | - | 872 | 872 | ||||||||||
Other costs(1) | 3,797 | - | 3,797 | ||||||||||
Total | $ | 18,543 | $ | 872 | $ | 19,415 | |||||||
-1 | Other costs include decommissioning, professional services, personnel (other than employee separations) and moving related costs. | ||||||||||||
Restructuring cost by segment | ' | ||||||||||||
The Company evaluates performance based on operating income of each segment before restructuring costs. The restructuring and other costs are recorded in the Corporate & Other segment. The following table summarizes the restructuring and other costs by segment that the costs relate to for the three and six months ended June 30, 2014 and 2013: | |||||||||||||
Three Months Ended, | |||||||||||||
(In thousands) | 30-Jun-14 | 30-Jun-13 | |||||||||||
Flavors & Fragrances | $ | 9,068 | $ | 5,951 | |||||||||
Color | 1,411 | 600 | |||||||||||
Corporate & Other | 2,500 | 91 | |||||||||||
Total | $ | 12,979 | $ | 6,642 | |||||||||
Six Months Ended, | |||||||||||||
(In thousands) | 30-Jun-14 | 30-Jun-13 | |||||||||||
Flavors & Fragrances | $ | 54,051 | $ | 14,490 | |||||||||
Color | 7,950 | 4,310 | |||||||||||
Corporate & Other | 3,700 | 615 | |||||||||||
Total | $ | 65,701 | $ | 19,415 | |||||||||
Summary of accrual for restructuring and other charges | ' | ||||||||||||
The following table summarizes the accrual for the restructuring and other charges for the six-month period ended June 30, 2014: | |||||||||||||
Employee | Asset Related | ||||||||||||
(In thousands) | Separations | and Other | Total | ||||||||||
Balance as of December 31, 2013 | $ | 4,562 | $ | 1,588 | $ | 6,150 | |||||||
Restructuring and other costs | 13,578 | 52,123 | 65,701 | ||||||||||
Gain on sale of assets | - | 602 | 602 | ||||||||||
Cash spent | (2,831 | ) | (1,808 | ) | (4,639 | ) | |||||||
Reduction of assets | - | (48,921 | ) | (48,921 | ) | ||||||||
Translation adjustment | (87 | ) | - | (87 | ) | ||||||||
Balance as of June 30, 2014 | $ | 15,222 | $ | 3,584 | $ | 18,806 |
Fair_Value_Details
Fair Value (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mutual fund investments | $21.10 | $19.80 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Forward exchange contracts, asset | 0.2 | 0.2 |
Level 2 [Member] | Carrying Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long term debt | 472.1 | ' |
Level 2 [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long term debt | $485.30 | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue from external customers | $374,666 | $378,806 | $742,797 | $744,446 |
Operating income (loss) | 48,209 | 48,678 | 49,788 | 85,016 |
Interest expense | 3,718 | 4,008 | 7,849 | 8,269 |
Earnings (loss) before income taxes | 44,491 | 44,670 | 41,939 | 76,747 |
Flavors & Fragrances [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue from external customers | 207,961 | 218,315 | 412,081 | 425,311 |
Color [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue from external customers | 127,824 | 122,871 | 256,493 | 246,654 |
Corporate and Other [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue from external customers | 38,881 | 37,620 | 74,223 | 72,481 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 388,409 | 392,510 | 770,768 | 772,706 |
Operating Segments [Member] | Flavors & Fragrances [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 216,192 | 226,626 | 429,571 | 442,467 |
Operating income (loss) | 33,554 | 31,984 | 63,493 | 60,390 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings (loss) before income taxes | 33,554 | 31,984 | 63,493 | 60,390 |
Operating Segments [Member] | Color [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 133,225 | 128,231 | 266,863 | 257,710 |
Operating income (loss) | 30,858 | 28,432 | 60,265 | 55,115 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings (loss) before income taxes | 30,858 | 28,432 | 60,265 | 55,115 |
Operating Segments [Member] | Corporate and Other [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 38,992 | 37,653 | 74,334 | 72,529 |
Operating income (loss) | -16,203 | -11,738 | -73,970 | -30,489 |
Interest expense | 3,718 | 4,008 | 7,849 | 8,269 |
Earnings (loss) before income taxes | -19,921 | -15,746 | -81,819 | -38,758 |
Intersegment Eliminations [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 13,743 | 13,704 | 27,971 | 28,260 |
Intersegment Eliminations [Member] | Flavors & Fragrances [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 8,231 | 8,311 | 17,490 | 17,156 |
Intersegment Eliminations [Member] | Color [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 5,401 | 5,360 | 10,370 | 11,056 |
Intersegment Eliminations [Member] | Corporate and Other [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | $111 | $33 | $111 | $48 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Inventories, including finished and in-process products | $339.40 | $317.10 |
Raw materials and supplies | $140.10 | $157.40 |
Retirement_Plans_Details
Retirement Plans (Details) (Pension Plans, Defined Benefit [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $635 | $755 | $1,267 | $1,513 |
Interest cost | 603 | 600 | 1,202 | 1,204 |
Expected return on plan assets | -480 | -362 | -954 | -727 |
Amortization of prior service cost | 43 | 43 | 86 | 86 |
Amortization of actuarial (gain) loss | -157 | 799 | -317 | 1,599 |
Curtailment gain | -115 | 0 | -115 | 0 |
Total defined benefit expense | $529 | $1,835 | $1,169 | $3,675 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 |
Shareholders' Equity [Abstract] | ' | ' |
Common stock repurchased during the period (in shares) | 1.8 | 2 |
Common stock repurchased during the period, value | $97.80 | $108.80 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activity (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Currency Denominated Debt, Net Investment Hedging [Member] | Foreign Currency Denominated Debt, Net Investment Hedging [Member] | |||
Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | |||||
Derivative instruments and hedging activity for the period [Abstract] | ' | ' | ' | ' | ' | ' |
Derivative, fair value | ' | ' | $28.10 | $29.60 | ' | ' |
Carrying value of foreign denominated debt | ' | ' | ' | ' | 109.8 | 96.5 |
Impact of foreign exchange rates on debt instruments recorded in Other Comprehensive Income | ($0.50) | ($0.20) | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Taxes [Abstract] | ' | ' | ' | ' |
Effective income tax rates (in hundredths) | 34.70% | 27.70% | 35.70% | 30.00% |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ||
Accumulated Other Comprehensive Income, beginning balance | $6,157 | $6,002 | ||
Other comprehensive loss before reclassifications | 5,374 | 5,656 | ||
Amounts reclassified from OCI | -305 | -432 | ||
Accumulated Other Comprehensive Income, ending balance | 11,226 | 11,226 | ||
Cash Flow Hedges [Member] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ||
Accumulated Other Comprehensive Income, beginning balance | 97 | [1] | -99 | [1] |
Other comprehensive loss before reclassifications | 489 | [1] | 750 | [1] |
Amounts reclassified from OCI | -245 | [1] | -310 | [1] |
Accumulated Other Comprehensive Income, ending balance | 341 | [1] | 341 | [1] |
Pension Items [Member] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ||
Accumulated Other Comprehensive Income, beginning balance | -6,830 | [1] | -6,768 | [1] |
Other comprehensive loss before reclassifications | 0 | [1] | 0 | [1] |
Amounts reclassified from OCI | -60 | [1] | -122 | [1] |
Accumulated Other Comprehensive Income, ending balance | -6,890 | [1] | -6,890 | [1] |
Foreign Currency Items [Member] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ||
Accumulated Other Comprehensive Income, beginning balance | 12,890 | 12,869 | ||
Other comprehensive loss before reclassifications | 4,885 | 4,906 | ||
Amounts reclassified from OCI | 0 | 0 | ||
Accumulated Other Comprehensive Income, ending balance | $17,775 | $17,775 | ||
[1] | Cash Flow Hedges and Pension Items are net of tax. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income, Reclassification out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Pension items reclassified out of other comprehensive income [Abstract] | ' | ' | ' | ' |
Selling and administrative expense | $81,455 | $73,843 | $204,384 | $154,642 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Pension items reclassified out of other comprehensive income [Abstract] | ' | ' | ' | ' |
Total before income taxes | -114 | 842 | -231 | 1,685 |
Tax expense (benefit) | 54 | -315 | 109 | -630 |
Net earnings | -60 | 527 | -122 | 1,055 |
Prior Service Cost [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Pension items reclassified out of other comprehensive income [Abstract] | ' | ' | ' | ' |
Selling and administrative expense | 43 | 43 | 86 | 86 |
Actuarial (Gain) Loss [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Pension items reclassified out of other comprehensive income [Abstract] | ' | ' | ' | ' |
Selling and administrative expense | ($157) | $799 | ($317) | $1,599 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Employee | ||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Expected annual savings from restructuring | $30,000,000 | ' | ' | ' | ||||
Headcount reduction due to restructuring | ' | ' | 300 | ' | ||||
Carrying amount reduction due to asset impairment | 28,100,000 | ' | 28,100,000 | ' | ||||
Restructuring charge, after tax | 10,700,000 | 4,700,000 | 48,200,000 | 14,100,000 | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Employee separation | 1,256,000 | 2,428,000 | 13,578,000 | 11,340,000 | ||||
Long-lived asset impairment | 9,212,000 | 880,000 | 47,872,000 | 3,406,000 | ||||
Intangibles impairment | 0 | ' | 1,049,000 | ' | ||||
Gain on asset sales | 0 | ' | -602,000 | ' | ||||
Write-down of inventory | ' | 277,000 | ' | 872,000 | ||||
Other costs | 2,511,000 | [1] | 3,057,000 | [2] | 3,804,000 | [1] | 3,797,000 | [2] |
Total | 12,979,000 | 6,642,000 | 65,701,000 | 19,415,000 | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total | 12,979,000 | 6,642,000 | 65,701,000 | 19,415,000 | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Balance as of December 31, 2013 | ' | ' | 6,150,000 | ' | ||||
Restructuring and other costs | 12,979,000 | 6,642,000 | 65,701,000 | 19,415,000 | ||||
Gain on sale of assets | 0 | ' | 602,000 | ' | ||||
Cash spent | ' | ' | -4,639,000 | ' | ||||
Reduction of assets | ' | ' | -48,921,000 | ' | ||||
Translation adjustment | ' | ' | -87,000 | ' | ||||
Balance as of June 30, 2014 | 18,806,000 | ' | 18,806,000 | ' | ||||
Minimum [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Number of years of incremental savings (in years) | ' | ' | '2 years | ' | ||||
Reduction in manufacturing labor and pre-tax charges | ' | ' | 120,000,000 | ' | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Future restructuring costs, current year | ' | ' | 30,000,000 | ' | ||||
Future restructuring costs, 2016 | 25,000,000 | ' | 25,000,000 | ' | ||||
Maximum [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Number of years of incremental savings (in years) | ' | ' | '3 years | ' | ||||
Reduction in manufacturing labor and pre-tax charges | ' | ' | 130,000,000 | ' | ||||
Number of employees terminated due to restructuring | ' | ' | 10 | ' | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Future restructuring costs, current year | ' | ' | 35,000,000 | ' | ||||
Future restructuring costs, 2016 | 30,000,000 | ' | 30,000,000 | ' | ||||
Employee Separations [Member] | ' | ' | ' | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Gain on asset sales | ' | ' | 0 | ' | ||||
Total | ' | ' | 13,578,000 | ' | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total | ' | ' | 13,578,000 | ' | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Balance as of December 31, 2013 | ' | ' | 4,562,000 | ' | ||||
Restructuring and other costs | ' | ' | 13,578,000 | ' | ||||
Gain on sale of assets | ' | ' | 0 | ' | ||||
Cash spent | ' | ' | -2,831,000 | ' | ||||
Reduction of assets | ' | ' | 0 | ' | ||||
Translation adjustment | ' | ' | -87,000 | ' | ||||
Balance as of June 30, 2014 | 15,222,000 | ' | 15,222,000 | ' | ||||
Asset Related and Other [Member] | ' | ' | ' | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Gain on asset sales | ' | ' | -602,000 | ' | ||||
Total | ' | ' | 52,123,000 | ' | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total | ' | ' | 52,123,000 | ' | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Balance as of December 31, 2013 | ' | ' | 1,588,000 | ' | ||||
Restructuring and other costs | ' | ' | 52,123,000 | ' | ||||
Gain on sale of assets | ' | ' | 602,000 | ' | ||||
Cash spent | ' | ' | -1,808,000 | ' | ||||
Reduction of assets | ' | ' | -48,921,000 | ' | ||||
Translation adjustment | ' | ' | 0 | ' | ||||
Balance as of June 30, 2014 | 3,584,000 | ' | 3,584,000 | ' | ||||
Selling & Administrative [Member] | ' | ' | ' | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Employee separation | ' | 2,428,000 | ' | 11,340,000 | ||||
Long-lived asset impairment | ' | 880,000 | ' | 3,406,000 | ||||
Write-down of inventory | ' | 0 | ' | 0 | ||||
Other costs | ' | 3,057,000 | [2] | ' | 3,797,000 | [2] | ||
Total | 12,979,000 | 6,365,000 | 65,701,000 | 18,543,000 | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total | 12,979,000 | 6,365,000 | 65,701,000 | 18,543,000 | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Restructuring and other costs | 12,979,000 | 6,365,000 | 65,701,000 | 18,543,000 | ||||
Cost of Products Sold [Member] | ' | ' | ' | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Employee separation | ' | 0 | ' | 0 | ||||
Long-lived asset impairment | ' | 0 | ' | 0 | ||||
Write-down of inventory | ' | 277,000 | ' | 872,000 | ||||
Other costs | ' | 0 | [2] | ' | 0 | [2] | ||
Total | ' | 277,000 | ' | 872,000 | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total | ' | 277,000 | ' | 872,000 | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Restructuring and other costs | ' | 277,000 | ' | 872,000 | ||||
Flavors & Fragrances [Member] | ' | ' | ' | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Total | 9,068,000 | 5,951,000 | 54,051,000 | 14,490,000 | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total | 9,068,000 | 5,951,000 | 54,051,000 | 14,490,000 | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Restructuring and other costs | 9,068,000 | 5,951,000 | 54,051,000 | 14,490,000 | ||||
Color [Member] | ' | ' | ' | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Total | 1,411,000 | 600,000 | 7,950,000 | 4,310,000 | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total | 1,411,000 | 600,000 | 7,950,000 | 4,310,000 | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Restructuring and other costs | 1,411,000 | 600,000 | 7,950,000 | 4,310,000 | ||||
Corporate & Other [Member] | ' | ' | ' | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Total | 2,500,000 | 91,000 | 3,700,000 | 615,000 | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total | 2,500,000 | 91,000 | 3,700,000 | 615,000 | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Restructuring and other costs | 2,500,000 | 91,000 | 3,700,000 | 615,000 | ||||
2014 Proxy Contest [Member] | ' | ' | ' | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Other costs | $2,200,000 | ' | $3,100,000 | ' | ||||
[1] | Other costs include decommissioning costs, professional services, personnel moving costs, other related costs and 2014 proxy contest costs. | |||||||
[2] | Other costs include decommissioning, professional services, personnel (other than employee separations) and moving related costs. |