Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 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 | ' | 48,156,931 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
CONSOLIDATED_CONDENSED_STATEME
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract] | ' | ' | ' | ' |
Revenue | $364,504 | $370,457 | $1,105,002 | $1,112,006 |
Cost of products sold | 243,003 | 250,645 | 729,597 | 752,891 |
Selling and administrative expenses | 85,407 | 70,685 | 280,981 | 224,231 |
Operating income | 36,094 | 49,127 | 94,424 | 134,884 |
Interest expense | 4,016 | 4,048 | 11,866 | 12,317 |
Earnings before income taxes | 32,078 | 45,079 | 82,558 | 122,567 |
Income taxes | 9,414 | 13,315 | 27,116 | 36,558 |
Earnings from continuing operations | 22,664 | 31,764 | 55,442 | 86,009 |
Loss from discontinued operations, net of tax | -1,359 | -239 | -7,151 | -763 |
Net earnings | $21,305 | $31,525 | $48,291 | $85,246 |
Weighted average number of shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 47,902 | 49,761 | 48,799 | 49,741 |
Diluted (in shares) | 48,230 | 49,946 | 49,080 | 49,910 |
Basic: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.47 | $0.64 | $1.14 | $1.73 |
Discontinued operations (in dollars per share) | ($0.03) | $0 | ($0.15) | ($0.02) |
Earnings per common share (in dollars per share) | $0.44 | $0.63 | $0.99 | $1.71 |
Diluted: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.47 | $0.64 | $1.13 | $1.72 |
Discontinued operations (in dollars per share) | ($0.03) | $0 | ($0.15) | ($0.02) |
Earnings per common share (in dollars per share) | $0.44 | $0.63 | $0.98 | $1.71 |
Dividends declared per common share (in dollars per share) | $0.25 | $0.23 | $0.73 | $0.68 |
CONSOLIDATED_CONDENSED_STATEME1
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ' | ' | ' | ' |
Comprehensive Income | ($35,509) | $58,773 | ($3,299) | $86,816 |
CONSOLIDATED_CONDENSED_BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $25,789 | $19,836 |
Trade accounts receivable, net | 243,894 | 233,751 |
Inventories | 475,011 | 474,452 |
Prepaid expenses and other current assets | 74,729 | 61,786 |
Assets held for sale | 581 | 0 |
TOTAL CURRENT ASSETS | 820,004 | 789,825 |
OTHER ASSETS | 70,870 | 47,786 |
INTANGIBLE ASSETS, NET | 9,122 | 10,546 |
GOODWILL | 437,515 | 457,269 |
PROPERTY, PLANT AND EQUIPMENT: | ' | ' |
Land | 42,423 | 56,343 |
Buildings | 292,333 | 374,388 |
Machinery and equipment | 712,828 | 751,267 |
Construction in progress | 67,532 | 55,236 |
Property, Plant and Equipment, Gross, Total | 1,115,116 | 1,237,234 |
Less accumulated depreciation | -625,396 | -671,926 |
Property, Plant and Equipment, Net, Total | 489,720 | 565,308 |
TOTAL ASSETS | 1,827,231 | 1,870,734 |
CURRENT LIABILITIES: | ' | ' |
Trade accounts payable | 97,128 | 99,117 |
Accrued salaries, wages and withholdings from employees | 30,427 | 32,669 |
Other accrued expenses | 79,380 | 78,579 |
Income taxes | 3,471 | 5,478 |
Short-term borrowings | 18,953 | 7,050 |
TOTAL CURRENT LIABILITIES | 229,359 | 222,893 |
OTHER LIABILITIES | 34,580 | 28,495 |
ACCRUED EMPLOYEE AND RETIREE BENEFITS | 21,382 | 28,538 |
LONG-TERM DEBT | 441,610 | 348,124 |
SHAREHOLDERS' EQUITY: | ' | ' |
Common stock | 5,396 | 5,396 |
Additional paid-in capital | 109,269 | 105,119 |
Earnings reinvested in the business | 1,230,304 | 1,217,874 |
Treasury stock, at cost | -199,081 | -91,707 |
Accumulated other comprehensive (loss) income | -45,588 | 6,002 |
TOTAL SHAREHOLDERS' EQUITY | 1,100,300 | 1,242,684 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,827,231 | $1,870,734 |
CONSOLIDATED_CONDENSED_STATEME2
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net earnings | $48,291 | $85,246 |
Adjustments to arrive at net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 39,461 | 39,051 |
Share-based compensation | 4,035 | 1,963 |
Loss on assets | 66,553 | 357 |
Deferred income taxes | -8,562 | -1,100 |
Changes in operating assets and liabilities | -22,669 | -7,748 |
Net cash provided by operating activities | 127,109 | 117,769 |
Cash flows from investing activities: | ' | ' |
Acquisition of property, plant and equipment | -46,726 | -77,247 |
Proceeds from sale of assets | 926 | 5,931 |
Other investing activity | -685 | -165 |
Net cash used in investing activities | -46,485 | -71,481 |
Cash flows from financing activities: | ' | ' |
Proceeds from additional borrowings | 191,060 | 80,574 |
Debt payments | -115,636 | -82,365 |
Purchase of treasury stock | -108,753 | 0 |
Dividends paid | -35,861 | -34,016 |
Proceeds from options exercised and other equity transactions | 576 | 513 |
Net cash used in financing activities | -68,614 | -35,294 |
Effect of exchange rate changes on cash and cash equivalents | -6,057 | -1,801 |
Net increase in cash and cash equivalents | 5,953 | 9,193 |
Cash and cash equivalents at beginning of period | 19,836 | 15,062 |
Cash and cash equivalents at end of period | $25,789 | $24,255 |
Accounting_Policies
Accounting Policies | 9 Months Ended | |
Sep. 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 September 30, 2014, and December 31, 2013, the results of operations and comprehensive income for the three and nine months ended September 30, 2014 and 2013, and cash flows for the nine months ended September 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 period 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. | ||
On April 10, 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the definition of a discontinued operation in Accounting Standards Codification (“ASC”) 205-20 and requires companies to provide additional disclosures for disposal transactions. Under the revised standard, a discontinued operation represents a strategic shift that has or will have a major impact on an entity’s operations or financial results. ASU 2014-08 is required to be applied prospectively to all disposals that occur in annual periods beginning on or after December 15, 2014, with early adoption permitted. The Company will prospectively apply the guidance to applicable transactions beginning in 2015. | ||
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The requirements of the new standard are effective for interim and annual periods beginning after December 15, 2016 with early adoption not permitted. We are currently evaluating the expected impact of this new standard. | ||
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 | 9 Months Ended | |
Sep. 30, 2014 | ||
Fair Value [Abstract] | ' | |
Fair Value | ' | |
2 | Fair Value | |
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 September 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 September 30, 2014 and December 31, 2013, respectively. The fair value of the investments based on September 30, 2014, and December 31, 2013, market quotes (Level 1 inputs) was an asset of $2.0 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 September 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 September 30, 2014, was $441.6 million. The fair value of the long-term debt at September 30, 2014, was $452.3 million. |
Debt
Debt | 9 Months Ended | |
Sep. 30, 2014 | ||
Debt [Abstract] | ' | |
Debt | ' | |
3 | Debt | |
On October 24, 2014, the Company entered into a $450 million credit facility, consisting of a $350 million revolver and a $100 million term loan. The revolver will mature on October 24, 2019. Interest rates on borrowings under the revolver are at LIBOR plus a margin based on the Company’s leverage ratio. Currently, when fully drawn, the interest rate is at LIBOR plus 1.375% under the new agreement. The term loan bears interest at LIBOR plus 1.375% and matures on October 24, 2019. The credit facility will be used to repay maturing debt and for general corporate purposes. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
4 | Segment Information | ||||||||||||||||
Operating results by segment for the periods and at the dates presented are as follows: | |||||||||||||||||
(In thousands) | Flavors & Fragrances | Corporate | |||||||||||||||
Color | & Other | Consolidated | |||||||||||||||
Three months ended September 30, 2014: | |||||||||||||||||
Revenue from external customers | $ | 206,474 | $ | 121,856 | $ | 36,174 | $ | 364,504 | |||||||||
Intersegment revenue | 9,028 | 5,986 | 27 | 15,041 | |||||||||||||
Total revenue | $ | 215,502 | $ | 127,842 | $ | 36,201 | $ | 379,545 | |||||||||
Operating income (loss) | $ | 30,169 | $ | 29,100 | $ | (23,175 | ) | $ | 36,094 | ||||||||
Interest expense | - | - | 4,016 | 4,016 | |||||||||||||
Earnings (loss) before income taxes | $ | 30,169 | $ | 29,100 | $ | (27,191 | ) | $ | 32,078 | ||||||||
Three months ended September 30, 2013: | |||||||||||||||||
Revenue from external customers | $ | 216,076 | $ | 118,209 | $ | 36,172 | $ | 370,457 | |||||||||
Intersegment revenue | 8,926 | 5,848 | 20 | 14,794 | |||||||||||||
Total revenue | $ | 225,002 | $ | 124,057 | $ | 36,192 | $ | 385,251 | |||||||||
Operating income (loss) | $ | 31,205 | $ | 27,902 | $ | (9,980 | ) | $ | 49,127 | ||||||||
Interest expense | - | - | 4,048 | 4,048 | |||||||||||||
Earnings (loss) before income taxes | $ | 31,205 | $ | 27,902 | $ | (14,028 | ) | $ | 45,079 | ||||||||
(In thousands) | Flavors & Fragrances | Corporate | |||||||||||||||
Color | & Other | Consolidated | |||||||||||||||
Nine months ended September 30, 2014: | |||||||||||||||||
Revenue from external customers | $ | 618,555 | $ | 376,050 | $ | 110,397 | $ | 1,105,002 | |||||||||
Intersegment revenue | 26,518 | 16,356 | 138 | 43,012 | |||||||||||||
Total revenue | $ | 645,073 | $ | 392,406 | $ | 110,535 | $ | 1,148,014 | |||||||||
Operating income (loss) | $ | 93,662 | $ | 89,960 | $ | (89,198 | ) | $ | 94,424 | ||||||||
Interest expense | - | - | 11,866 | 11,866 | |||||||||||||
Earnings (loss) before income taxes | $ | 93,662 | $ | 89,960 | $ | (101,064 | ) | $ | 82,558 | ||||||||
Nine months ended September 30, 2013: | |||||||||||||||||
Revenue from external customers | $ | 641,387 | $ | 361,966 | $ | 108,653 | $ | 1,112,006 | |||||||||
Intersegment revenue | 26,082 | 16,904 | 68 | 43,054 | |||||||||||||
Total revenue | $ | 667,469 | $ | 378,870 | $ | 108,721 | $ | 1,155,060 | |||||||||
Operating income (loss) | $ | 91,595 | $ | 83,758 | $ | (40,469 | ) | $ | 134,884 | ||||||||
Interest expense | - | - | 12,317 | 12,317 | |||||||||||||
Earnings (loss) before income taxes | $ | 91,595 | $ | 83,758 | $ | (52,786 | ) | $ | 122,567 | ||||||||
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 segment, and the results of operations for the Company’s pharmaceutical flavors business, previously reported in the Flavors & Fragrances segment, are reported in the Color segment with the pharmaceutical colors business. Results for 2013 have been restated to reflect these changes. | |||||||||||||||||
During the quarter ended September 30, 2014, one of the business units in the Color segment met the criteria to be presented as a discontinued operation and is classified accordingly in the Company’s Consolidated Condensed Statement of Earnings for all reported periods. See Note 12 Discontinued Operations for additional information. 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 related to continuing operations are reported in the Corporate & Other segment. |
Inventories
Inventories | 9 Months Ended | |
Sep. 30, 2014 | ||
Inventories [Abstract] | ' | |
Inventories | ' | |
5 | Inventories | |
At September 30, 2014, and December 31, 2013, inventories included finished and in-process products totaling $333.4 million and $317.1 million, respectively, and raw materials and supplies of $141.6 million and $157.4 million, respectively. |
Retirement_Plans
Retirement Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Retirement Plans [Abstract] | ' | ||||||||||||||||
Retirement Plans | ' | ||||||||||||||||
6 | 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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 610 | $ | 752 | $ | 1,877 | $ | 2,265 | |||||||||
Interest cost | 502 | 599 | 1,704 | 1,803 | |||||||||||||
Expected return on plan assets | (478 | ) | (362 | ) | (1,432 | ) | (1,089 | ) | |||||||||
Amortization of prior service cost | 43 | 43 | 129 | 129 | |||||||||||||
Amortization of actuarial (gain) loss | (14 | ) | 798 | (331 | ) | 2,397 | |||||||||||
Settlement expense | 289 | - | 289 | - | |||||||||||||
Curtailment gain | - | - | (115 | ) | - | ||||||||||||
Total defined benefit expense | $ | 952 | $ | 1,830 | $ | 2,121 | $ | 5,505 |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | |
Sep. 30, 2014 | ||
Shareholders' Equity [Abstract] | ' | |
Shareholders' Equity | ' | |
7 | Shareholders’ Equity | |
During the nine months ended September 30, 2014, the Company repurchased 2 million shares of its common stock for an aggregate price of $108.8 million. The Company did not repurchase any shares during the three months ended September 30, 2014. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activity | 9 Months Ended | |
Sep. 30, 2014 | ||
Derivative Instruments and Hedging Activity [Abstract] | ' | |
Derivative Instruments and Hedging Activity | ' | |
8 | 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 $24.7 million and $29.6 million of forward exchange contracts, designated as hedges, outstanding as of September 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 September 30, 2014, and December 31, 2013, the total value of the Company’s Euro and Swiss Franc debt was $101.5 million and $96.5 million, respectively. For the three and nine months ended September 30, 2014, the impact of foreign exchange rates on these debt instruments decreased debt by $8.3 million and $8.5 million, respectively, and has been recorded as foreign currency translation in OCI. |
Income_Taxes
Income Taxes | 9 Months Ended | |
Sep. 30, 2014 | ||
Income Taxes [Abstract] | ' | |
Income Taxes | ' | |
9 | Income Taxes | |
The effective income tax rates for the quarters ended September 30, 2014 and 2013, were 29.3% and 29.5%, respectively. For the nine-month periods ended September 30, 2014 and 2013, the effective income tax rates were 32.8% and 29.8%, respectively. The effective tax rates in both 2014 and 2013 were impacted by restructuring activities and changes in estimates associated with the finalization of prior year foreign and domestic tax items, including the reversal of valuation allowances related to the impact of restructuring activities on tax loss and credit carryovers. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||
10 | Accumulated Other Comprehensive Income | ||||||||||||||||
The following tables summarize the changes in Accumulated Other Comprehensive Income (OCI) during the three- and nine-month periods ended September 30, 2014: | |||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||
(In thousands) | Cash Flow Hedges (a) | Pension | Foreign Currency | Total | |||||||||||||
Items (a) | Items | ||||||||||||||||
Balance as of June 30, 2014 | $ | 341 | $ | (6,890 | ) | $ | 17,775 | $ | 11,226 | ||||||||
Other comprehensive income (loss) before reclassifications | 207 | - | (57,020 | ) | (56,813 | ) | |||||||||||
Amounts reclassified from OCI | (28 | ) | 27 | - | (1 | ) | |||||||||||
Balance as of September 30, 2014 | $ | 520 | $ | (6,863 | ) | $ | (39,245 | ) | $ | (45,588 | ) | ||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||
(In thousands) | Cash Flow Hedges (a) | Pension | Foreign Currency | Total | |||||||||||||
Items (a) | Items | ||||||||||||||||
Balance as of December 31, 2013 | $ | (99 | ) | $ | (6,768 | ) | $ | 12,869 | $ | 6,002 | |||||||
Other comprehensive income (loss) before reclassifications | 957 | - | (52,114 | ) | (51,157 | ) | |||||||||||
Amounts reclassified from OCI | (338 | ) | (95 | ) | - | (433 | ) | ||||||||||
Balance as of September 30, 2014 | $ | 520 | $ | (6,863 | ) | $ | (39,245 | ) | $ | (45,588 | ) | ||||||
(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 nine-month periods ended September 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||
Amortization of pension expense included in selling and administrative expense: | |||||||||||||||||
Prior service cost | $ | 43 | $ | 43 | |||||||||||||
Actuarial (gain) loss | (14 | ) | 798 | ||||||||||||||
Total before income taxes | 29 | 841 | |||||||||||||||
Income tax benefit | (2 | ) | (315 | ) | |||||||||||||
Total net of tax | $ | 27 | $ | 526 | |||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||
Amortization of pension expense included in selling and administrative expense: | |||||||||||||||||
Prior service cost | $ | 129 | $ | 129 | |||||||||||||
Actuarial (gain) loss | (331 | ) | 2,397 | ||||||||||||||
Total before income taxes | (202 | ) | 2,526 | ||||||||||||||
Income tax expense (benefit) | 107 | (945 | ) | ||||||||||||||
Total net of tax | $ | (95 | ) | $ | 1,581 |
Restructuring
Restructuring | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Restructuring [Abstract] | ' | ||||||||||||
Restructuring | ' | ||||||||||||
11 | Restructuring | ||||||||||||
The Company incurred restructuring costs in both continuing and discontinued operations. The discussion in this note relates to the combination of both continuing and discontinued operations unless otherwise noted. Restructuring costs related to discontinued operations are recorded in discontinued operations within the Company’s Consolidated Condensed Statements of Earnings and are discussed in Note 12 Discontinued Operations in more detail. | |||||||||||||
In March of this year, the Company announced the 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 2016. 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 50 employees were terminated as of September 30, 2014 and limited savings were recognized by September 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 $34.9 million, their aggregate respective fair values, which were determined based on independent market valuations for these assets. | |||||||||||||
For the three and nine months ended September 30, 2014, the Company recorded restructuring and other costs of $23.1 million and $88.8 million, respectively. The Company determined that this was the appropriate amount of 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 $3.2 million for the nine months ended September 30, 2014, related to the 2014 proxy contest. The 2014 proxy contest costs recorded for the three months ended September 30, 2014, was not material. | |||||||||||||
The Company evaluates performance based on operating income of each segment before restructuring costs. The restructuring and other costs related to continuing operations are recorded in the Corporate & Other segment. The following table summarizes the restructuring and other costs by segment and discontinued operations for the three-and nine-month periods ended September 30, 2014 and 2013: | |||||||||||||
Three Months Ended September 30, | |||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||
Flavors & Fragrances | $ | 20,064 | $ | 4,167 | |||||||||
Color | - | 1,497 | |||||||||||
Corporate & Other | 968 | 922 | |||||||||||
Total Continuing Operations | $ | 21,032 | $ | 6,586 | |||||||||
Discontinued Operations | 2,071 | - | |||||||||||
Total Restructuring | $ | 23,103 | $ | 6,586 | |||||||||
Nine Months Ended September 30, | |||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||
Flavors & Fragrances | $ | 74,115 | $ | 18,657 | |||||||||
Color | - | 5,807 | |||||||||||
Corporate & Other | 4,672 | 1,537 | |||||||||||
Total Continuing Operations | $ | 78,787 | $ | 26,001 | |||||||||
Discontinued Operations | 10,017 | - | |||||||||||
Total Restructuring | $ | 88,804 | $ | 26,001 | |||||||||
Details of the restructuring and other costs recorded during the three and nine month periods ended September 30, 2014 are as follows: | |||||||||||||
(In thousands) | Three Months Ended | Nine Months Ended | |||||||||||
30-Sep-14 | 30-Sep-14 | ||||||||||||
Employee separation | $ | 1,033 | $ | 14,611 | |||||||||
Long-lived asset impairment | 18,210 | 66,082 | |||||||||||
Intangibles impairment | - | 1,049 | |||||||||||
Write-down of inventory | 2,671 | 2,671 | |||||||||||
Gain on asset sales | - | (602 | ) | ||||||||||
Other costs (1) | 1,189 | 4,993 | |||||||||||
Total | $ | 23,103 | $ | 88,804 | |||||||||
-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 $12 million to $17 million of additional restructuring costs by the end of December 2014 and $20 million to $25 million of additional restructuring costs by the end of 2016, consisting primarily of employee separations, asset impairments, and other restructuring related costs. These estimates relate to both continuing operations and discontinued operations. | |||||||||||||
For the three- and nine-month periods ended September 30, 2013, the Company recorded restructuring costs of $6.6 million ($4.4 million after-tax) and $26.0 million ($18.5 million after-tax), respectively, related to the 2013 restructuring program to relocate the Flavors & Fragrances Group headquarters to Chicago, and to implement a profit improvement plan across all segments of the Company. Details of the restructuring expenses recorded in Corporate & Other segment are as follows: | |||||||||||||
Three months ended September 30, 2013 | |||||||||||||
Selling & | Cost of | ||||||||||||
(In thousands) | Administrative | Products Sold | Total | ||||||||||
Employee separation | $ | 5,002 | $ | - | $ | 5,002 | |||||||
Long-lived asset impairment | 220 | - | 220 | ||||||||||
Gain on asset sales | (3,019 | ) | - | (3,019 | ) | ||||||||
Write-down of inventory | - | 545 | 545 | ||||||||||
Other costs(1) | 3,838 | - | 3,838 | ||||||||||
Total | $ | 6,041 | $ | 545 | $ | 6,586 | |||||||
Nine months ended September 30, 2013 | |||||||||||||
Selling & | Cost of | ||||||||||||
(In thousands) | Administrative | Products Sold | Total | ||||||||||
Employee separation | $ | 16,342 | $ | - | $ | 16,342 | |||||||
Long-lived asset impairment | 3,626 | - | 3,626 | ||||||||||
Gain on asset sales | (3,019 | ) | - | (3,019 | ) | ||||||||
Write-down of inventory | - | 1,417 | 1,417 | ||||||||||
Other costs(1) | 7,635 | - | 7,635 | ||||||||||
Total | $ | 24,584 | $ | 1,417 | $ | 26,001 | |||||||
-1 | Other costs include decommissioning, professional services, personnel (other than employee separations) and moving related costs. | ||||||||||||
The following table summarizes the accrual for the restructuring and other charges for the nine months ended September 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 | 14,611 | 74,193 | 88,804 | ||||||||||
Gain on sale of assets | - | 602 | 602 | ||||||||||
Cash spent | (4,812 | ) | (4,613 | ) | (9,425 | ) | |||||||
Reduction of assets | - | (69,802 | ) | (69,802 | ) | ||||||||
Translation adjustment | (1,034 | ) | - | (1,034 | ) | ||||||||
Balance as of September 30, 2014 | $ | 13,327 | $ | 1,968 | $ | 15,295 |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Discontinued Operations [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
12 | Discontinued Operations | ||||||||
In connection with the 2014 Restructuring Plan, the Company approved a plan to dispose of a business unit within the Color segment. As of September 30, 2014, production ceased and the business met the criteria to be presented as a discontinued operation as established in ASC Subtopic 205-20, Discontinued Operations. The results of this business have been reported as a discontinued operation in the Consolidated Condensed Statements of Earnings for all periods presented. The corresponding current assets, which include property, plant, and equipment, have met the held for sale criteria and have been properly presented on the Consolidated Condensed Balance Sheet. | |||||||||
The following tables summarize the discontinued operation’s results for the three and nine months ended September 30, 2014: | |||||||||
Three Months Ended September 30, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Revenue | $ | 910 | $ | 1,536 | |||||
Loss before income taxes | (2,351 | ) | (338 | ) | |||||
Income taxes | (992 | ) | (99 | ) | |||||
Loss from discontinued operations, net of tax | $ | (1,359 | ) | $ | (239 | ) | |||
Nine Months Ended September 30, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Revenue | $ | 3,209 | $ | 4,433 | |||||
Loss before income taxes | (10,893 | ) | (1,079 | ) | |||||
Income taxes | (3,742 | ) | (316 | ) | |||||
Loss from discontinued operations, net of tax | $ | (7,151 | ) | $ | (763 | ) | |||
Included in the loss before income taxes from discontinued operations are pre-tax restructuring costs of $2.1 million and $10.0 million for the three and nine months ended September 30, 2014, respectively. See Note 11 Restructuring for additional information. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
Sep. 30, 2014 | ||
Commitments and Contingencies [Abstract] | ' | |
Commitments and Contingencies | ' | |
13 | 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) | 9 Months Ended | ||||||||||||||||
Sep. 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 & Fragrances | Corporate | |||||||||||||||
Color | & Other | Consolidated | |||||||||||||||
Three months ended September 30, 2014: | |||||||||||||||||
Revenue from external customers | $ | 206,474 | $ | 121,856 | $ | 36,174 | $ | 364,504 | |||||||||
Intersegment revenue | 9,028 | 5,986 | 27 | 15,041 | |||||||||||||
Total revenue | $ | 215,502 | $ | 127,842 | $ | 36,201 | $ | 379,545 | |||||||||
Operating income (loss) | $ | 30,169 | $ | 29,100 | $ | (23,175 | ) | $ | 36,094 | ||||||||
Interest expense | - | - | 4,016 | 4,016 | |||||||||||||
Earnings (loss) before income taxes | $ | 30,169 | $ | 29,100 | $ | (27,191 | ) | $ | 32,078 | ||||||||
Three months ended September 30, 2013: | |||||||||||||||||
Revenue from external customers | $ | 216,076 | $ | 118,209 | $ | 36,172 | $ | 370,457 | |||||||||
Intersegment revenue | 8,926 | 5,848 | 20 | 14,794 | |||||||||||||
Total revenue | $ | 225,002 | $ | 124,057 | $ | 36,192 | $ | 385,251 | |||||||||
Operating income (loss) | $ | 31,205 | $ | 27,902 | $ | (9,980 | ) | $ | 49,127 | ||||||||
Interest expense | - | - | 4,048 | 4,048 | |||||||||||||
Earnings (loss) before income taxes | $ | 31,205 | $ | 27,902 | $ | (14,028 | ) | $ | 45,079 | ||||||||
(In thousands) | Flavors & Fragrances | Corporate | |||||||||||||||
Color | & Other | Consolidated | |||||||||||||||
Nine months ended September 30, 2014: | |||||||||||||||||
Revenue from external customers | $ | 618,555 | $ | 376,050 | $ | 110,397 | $ | 1,105,002 | |||||||||
Intersegment revenue | 26,518 | 16,356 | 138 | 43,012 | |||||||||||||
Total revenue | $ | 645,073 | $ | 392,406 | $ | 110,535 | $ | 1,148,014 | |||||||||
Operating income (loss) | $ | 93,662 | $ | 89,960 | $ | (89,198 | ) | $ | 94,424 | ||||||||
Interest expense | - | - | 11,866 | 11,866 | |||||||||||||
Earnings (loss) before income taxes | $ | 93,662 | $ | 89,960 | $ | (101,064 | ) | $ | 82,558 | ||||||||
Nine months ended September 30, 2013: | |||||||||||||||||
Revenue from external customers | $ | 641,387 | $ | 361,966 | $ | 108,653 | $ | 1,112,006 | |||||||||
Intersegment revenue | 26,082 | 16,904 | 68 | 43,054 | |||||||||||||
Total revenue | $ | 667,469 | $ | 378,870 | $ | 108,721 | $ | 1,155,060 | |||||||||
Operating income (loss) | $ | 91,595 | $ | 83,758 | $ | (40,469 | ) | $ | 134,884 | ||||||||
Interest expense | - | - | 12,317 | 12,317 | |||||||||||||
Earnings (loss) before income taxes | $ | 91,595 | $ | 83,758 | $ | (52,786 | ) | $ | 122,567 |
Retirement_Plans_Tables
Retirement Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 610 | $ | 752 | $ | 1,877 | $ | 2,265 | |||||||||
Interest cost | 502 | 599 | 1,704 | 1,803 | |||||||||||||
Expected return on plan assets | (478 | ) | (362 | ) | (1,432 | ) | (1,089 | ) | |||||||||
Amortization of prior service cost | 43 | 43 | 129 | 129 | |||||||||||||
Amortization of actuarial (gain) loss | (14 | ) | 798 | (331 | ) | 2,397 | |||||||||||
Settlement expense | 289 | - | 289 | - | |||||||||||||
Curtailment gain | - | - | (115 | ) | - | ||||||||||||
Total defined benefit expense | $ | 952 | $ | 1,830 | $ | 2,121 | $ | 5,505 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 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 nine-month periods ended September 30, 2014: | |||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||
(In thousands) | Cash Flow Hedges (a) | Pension | Foreign Currency | Total | |||||||||||||
Items (a) | Items | ||||||||||||||||
Balance as of June 30, 2014 | $ | 341 | $ | (6,890 | ) | $ | 17,775 | $ | 11,226 | ||||||||
Other comprehensive income (loss) before reclassifications | 207 | - | (57,020 | ) | (56,813 | ) | |||||||||||
Amounts reclassified from OCI | (28 | ) | 27 | - | (1 | ) | |||||||||||
Balance as of September 30, 2014 | $ | 520 | $ | (6,863 | ) | $ | (39,245 | ) | $ | (45,588 | ) | ||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||
(In thousands) | Cash Flow Hedges (a) | Pension | Foreign Currency | Total | |||||||||||||
Items (a) | Items | ||||||||||||||||
Balance as of December 31, 2013 | $ | (99 | ) | $ | (6,768 | ) | $ | 12,869 | $ | 6,002 | |||||||
Other comprehensive income (loss) before reclassifications | 957 | - | (52,114 | ) | (51,157 | ) | |||||||||||
Amounts reclassified from OCI | (338 | ) | (95 | ) | - | (433 | ) | ||||||||||
Balance as of September 30, 2014 | $ | 520 | $ | (6,863 | ) | $ | (39,245 | ) | $ | (45,588 | ) | ||||||
(a) | Cash Flow Hedges and Pension Items are net of tax. | ||||||||||||||||
Pension items reclassified 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 nine-month periods ended September 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||
Amortization of pension expense included in selling and administrative expense: | |||||||||||||||||
Prior service cost | $ | 43 | $ | 43 | |||||||||||||
Actuarial (gain) loss | (14 | ) | 798 | ||||||||||||||
Total before income taxes | 29 | 841 | |||||||||||||||
Income tax benefit | (2 | ) | (315 | ) | |||||||||||||
Total net of tax | $ | 27 | $ | 526 | |||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||||||
Amortization of pension expense included in selling and administrative expense: | |||||||||||||||||
Prior service cost | $ | 129 | $ | 129 | |||||||||||||
Actuarial (gain) loss | (331 | ) | 2,397 | ||||||||||||||
Total before income taxes | (202 | ) | 2,526 | ||||||||||||||
Income tax expense (benefit) | 107 | (945 | ) | ||||||||||||||
Total net of tax | $ | (95 | ) | $ | 1,581 |
Restructuring_Tables
Restructuring (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Restructuring [Abstract] | ' | ||||||||||||
Restructuring cost by segment | ' | ||||||||||||
The following table summarizes the restructuring and other costs by segment and discontinued operations for the three-and nine-month periods ended September 30, 2014 and 2013: | |||||||||||||
Three Months Ended September 30, | |||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||
Flavors & Fragrances | $ | 20,064 | $ | 4,167 | |||||||||
Color | - | 1,497 | |||||||||||
Corporate & Other | 968 | 922 | |||||||||||
Total Continuing Operations | $ | 21,032 | $ | 6,586 | |||||||||
Discontinued Operations | 2,071 | - | |||||||||||
Total Restructuring | $ | 23,103 | $ | 6,586 | |||||||||
Nine Months Ended September 30, | |||||||||||||
(In thousands) | 2014 | 2013 | |||||||||||
Flavors & Fragrances | $ | 74,115 | $ | 18,657 | |||||||||
Color | - | 5,807 | |||||||||||
Corporate & Other | 4,672 | 1,537 | |||||||||||
Total Continuing Operations | $ | 78,787 | $ | 26,001 | |||||||||
Discontinued Operations | 10,017 | - | |||||||||||
Total Restructuring | $ | 88,804 | $ | 26,001 | |||||||||
Summary of restructuring costs | ' | ||||||||||||
Details of the restructuring and other costs recorded during the three and nine month periods ended September 30, 2014 are as follows: | |||||||||||||
(In thousands) | Three Months Ended | Nine Months Ended | |||||||||||
30-Sep-14 | 30-Sep-14 | ||||||||||||
Employee separation | $ | 1,033 | $ | 14,611 | |||||||||
Long-lived asset impairment | 18,210 | 66,082 | |||||||||||
Intangibles impairment | - | 1,049 | |||||||||||
Write-down of inventory | 2,671 | 2,671 | |||||||||||
Gain on asset sales | - | (602 | ) | ||||||||||
Other costs (1) | 1,189 | 4,993 | |||||||||||
Total | $ | 23,103 | $ | 88,804 | |||||||||
-1 | Other costs include decommissioning costs, professional services, personnel moving costs, other related costs and 2014 proxy contest costs. | ||||||||||||
Summary of accrual for restructuring and other charges | ' | ||||||||||||
Details of the restructuring expenses recorded in Corporate & Other segment are as follows: | |||||||||||||
Three months ended September 30, 2013 | |||||||||||||
Selling & | Cost of | ||||||||||||
(In thousands) | Administrative | Products Sold | Total | ||||||||||
Employee separation | $ | 5,002 | $ | - | $ | 5,002 | |||||||
Long-lived asset impairment | 220 | - | 220 | ||||||||||
Gain on asset sales | (3,019 | ) | - | (3,019 | ) | ||||||||
Write-down of inventory | - | 545 | 545 | ||||||||||
Other costs(1) | 3,838 | - | 3,838 | ||||||||||
Total | $ | 6,041 | $ | 545 | $ | 6,586 | |||||||
Nine months ended September 30, 2013 | |||||||||||||
Selling & | Cost of | ||||||||||||
(In thousands) | Administrative | Products Sold | Total | ||||||||||
Employee separation | $ | 16,342 | $ | - | $ | 16,342 | |||||||
Long-lived asset impairment | 3,626 | - | 3,626 | ||||||||||
Gain on asset sales | (3,019 | ) | - | (3,019 | ) | ||||||||
Write-down of inventory | - | 1,417 | 1,417 | ||||||||||
Other costs(1) | 7,635 | - | 7,635 | ||||||||||
Total | $ | 24,584 | $ | 1,417 | $ | 26,001 | |||||||
-1 | Other costs include decommissioning, professional services, personnel (other than employee separations) and moving related costs. | ||||||||||||
The following table summarizes the accrual for the restructuring and other charges for the nine months ended September 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 | 14,611 | 74,193 | 88,804 | ||||||||||
Gain on sale of assets | - | 602 | 602 | ||||||||||
Cash spent | (4,812 | ) | (4,613 | ) | (9,425 | ) | |||||||
Reduction of assets | - | (69,802 | ) | (69,802 | ) | ||||||||
Translation adjustment | (1,034 | ) | - | (1,034 | ) | ||||||||
Balance as of September 30, 2014 | $ | 13,327 | $ | 1,968 | $ | 15,295 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Discontinued Operations [Abstract] | ' | ||||||||
Schedule of certain Consolidated Condensed Statements of Earnings information for discontinued operations | ' | ||||||||
The following tables summarize the discontinued operation’s results for the three and nine months ended September 30, 2014: | |||||||||
Three Months Ended September 30, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Revenue | $ | 910 | $ | 1,536 | |||||
Loss before income taxes | (2,351 | ) | (338 | ) | |||||
Income taxes | (992 | ) | (99 | ) | |||||
Loss from discontinued operations, net of tax | $ | (1,359 | ) | $ | (239 | ) | |||
Nine Months Ended September 30, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Revenue | $ | 3,209 | $ | 4,433 | |||||
Loss before income taxes | (10,893 | ) | (1,079 | ) | |||||
Income taxes | (3,742 | ) | (316 | ) | |||||
Loss from discontinued operations, net of tax | $ | (7,151 | ) | $ | (763 | ) |
Fair_Value_Details
Fair Value (Details) (USD $) | Sep. 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 | $2 | $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 | 441.6 | ' |
Level 2 [Member] | Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long term debt | $452.30 | ' |
Debt_Details
Debt (Details) (Subsequent Event [Member], USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Oct. 24, 2014 | Oct. 24, 2014 |
Debt Instrument [Line Items] | ' | ' |
Credit facility, amount | $450 | $450 |
Revolver [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Credit facility, amount | ' | 350 |
Maturity date | 24-Oct-19 | ' |
Revolver [Member] | LIBOR [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate, description | 'LIBOR Plus 1.375% | ' |
Interest rate (in hundredths) | 1.38% | ' |
Term Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Term loan, face amount | ' | $100 |
Term loan, maturity date | 24-Oct-19 | ' |
Term Loan [Member] | LIBOR [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate, description | 'LIBOR Plus 1.375% | ' |
Interest rate (in hundredths) | 1.38% | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue from external customers | $364,504 | $370,457 | $1,105,002 | $1,112,006 |
Operating income (loss) | 36,094 | 49,127 | 94,424 | 134,884 |
Interest expense | 4,016 | 4,048 | 11,866 | 12,317 |
Earnings before income taxes | 32,078 | 45,079 | 82,558 | 122,567 |
Flavors & Fragrances [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue from external customers | 206,474 | 216,076 | 618,555 | 641,387 |
Color [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue from external customers | 121,856 | 118,209 | 376,050 | 361,966 |
Corporate and Other [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue from external customers | 36,174 | 36,172 | 110,397 | 108,653 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 379,545 | 385,251 | 1,148,014 | 1,155,060 |
Operating Segments [Member] | Flavors & Fragrances [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 215,502 | 225,002 | 645,073 | 667,469 |
Operating income (loss) | 30,169 | 31,205 | 93,662 | 91,595 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings before income taxes | 30,169 | 31,205 | 93,662 | 91,595 |
Operating Segments [Member] | Color [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 127,842 | 124,057 | 392,406 | 378,870 |
Operating income (loss) | 29,100 | 27,902 | 89,960 | 83,758 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings before income taxes | 29,100 | 27,902 | 89,960 | 83,758 |
Operating Segments [Member] | Corporate and Other [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 36,201 | 36,192 | 110,535 | 108,721 |
Operating income (loss) | -23,175 | -9,980 | -89,198 | -40,469 |
Interest expense | 4,016 | 4,048 | 11,866 | 12,317 |
Earnings before income taxes | -27,191 | -14,028 | -101,064 | -52,786 |
Intersegment Revenue [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 15,041 | 14,794 | 43,012 | 43,054 |
Intersegment Revenue [Member] | Flavors & Fragrances [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 9,028 | 8,926 | 26,518 | 26,082 |
Intersegment Revenue [Member] | Color [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | 5,986 | 5,848 | 16,356 | 16,904 |
Intersegment Revenue [Member] | Corporate and Other [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total Revenue | $27 | $20 | $138 | $68 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Inventories, including finished and in-process products | $333.40 | $317.10 |
Raw materials and supplies | $141.60 | $157.40 |
Retirement_Plans_Details
Retirement Plans (Details) (Pension Plans, Defined Benefit [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $610 | $752 | $1,877 | $2,265 |
Interest cost | 502 | 599 | 1,704 | 1,803 |
Expected return on plan assets | -478 | -362 | -1,432 | -1,089 |
Amortization of prior service cost | 43 | 43 | 129 | 129 |
Amortization of actuarial (gain) loss | -14 | 798 | -331 | 2,397 |
Settlement expense | 289 | 0 | 289 | 0 |
Curtailment gain | 0 | 0 | -115 | 0 |
Total defined benefit expense | $952 | $1,830 | $2,121 | $5,505 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Shareholders' Equity [Abstract] | ' | ' |
Common stock repurchased during the period (in shares) | 0 | 2 |
Common stock repurchased during the period, value | ' | $108.80 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 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 | ' | ' | $24.70 | $29.60 | ' | ' |
Carrying value of foreign denominated debt | ' | ' | ' | ' | 101.5 | 96.5 |
Impact of foreign exchange rates on debt instruments recorded in Other Comprehensive Income | ($8.30) | ($8.50) | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Taxes [Abstract] | ' | ' | ' | ' |
Effective income tax rates (in hundredths) | 29.30% | 29.50% | 32.80% | 29.80% |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ||
Accumulated Other Comprehensive Income, beginning balance | $11,226 | $6,002 | ||
Other comprehensive income (loss) before reclassifications | -56,813 | -51,157 | ||
Amounts reclassified from OCI | -1 | -433 | ||
Accumulated Other Comprehensive Income, ending balance | -45,588 | -45,588 | ||
Cash Flow Hedges [Member] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ||
Accumulated Other Comprehensive Income, beginning balance | 341 | [1] | -99 | [1] |
Other comprehensive income (loss) before reclassifications | 207 | [1] | 957 | [1] |
Amounts reclassified from OCI | -28 | [1] | -338 | [1] |
Accumulated Other Comprehensive Income, ending balance | 520 | [1] | 520 | [1] |
Pension Items [Member] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ||
Accumulated Other Comprehensive Income, beginning balance | -6,890 | [1] | -6,768 | [1] |
Amounts reclassified from OCI | 27 | [1] | -95 | [1] |
Accumulated Other Comprehensive Income, ending balance | -6,863 | [1] | -6,863 | [1] |
Foreign Currency Items [Member] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ||
Accumulated Other Comprehensive Income, beginning balance | 17,775 | 12,869 | ||
Other comprehensive income (loss) before reclassifications | -57,020 | -52,114 | ||
Accumulated Other Comprehensive Income, ending balance | ($39,245) | ($39,245) | ||
[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 | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension items reclassified out of other comprehensive income [Abstract] | ' | ' | ' | ' |
Selling and administrative expense | $85,407 | $70,685 | $280,981 | $224,231 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Pension items reclassified out of other comprehensive income [Abstract] | ' | ' | ' | ' |
Total before income taxes | 29 | 841 | -202 | 2,526 |
Income tax expense (benefit) | -2 | -315 | 107 | -945 |
Total net of tax | 27 | 526 | -95 | 1,581 |
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 | 129 | 129 |
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 | ($14) | $798 | ($331) | $2,397 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 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 | 34,900,000 | ' | 34,900,000 | ' | ||||
Restructuring charge, after tax | 23,100,000 | 4,400,000 | 88,800,000 | 18,500,000 | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total Continuing Operations | 21,032,000 | 6,586,000 | 78,787,000 | 26,001,000 | ||||
Discontinued Operations | 2,071,000 | 0 | 10,017,000 | 0 | ||||
Total Restructuring | 23,103,000 | 6,586,000 | 88,804,000 | 26,001,000 | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Employee separation | 1,033,000 | 5,002,000 | 14,611,000 | 16,342,000 | ||||
Long-lived asset impairment | 18,210,000 | 220,000 | 66,082,000 | 3,626,000 | ||||
Intangibles impairment | 0 | ' | 1,049,000 | ' | ||||
Write-down of inventory | 2,671,000 | 545,000 | 2,671,000 | 1,417,000 | ||||
Gain on asset sales | 0 | -3,019,000 | -602,000 | -3,019,000 | ||||
Other costs | 1,189,000 | [1] | 3,838,000 | [2] | 4,993,000 | [1] | 7,635,000 | [2] |
Total Restructuring | 23,103,000 | 6,586,000 | 88,804,000 | 26,001,000 | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Balance as of December 31, 2013 | ' | ' | 6,150,000 | ' | ||||
Restructuring and other costs | 23,103,000 | 6,586,000 | 88,804,000 | 26,001,000 | ||||
Gain on sale of assets | 0 | 3,019,000 | 602,000 | 3,019,000 | ||||
Cash spent | ' | ' | -9,425,000 | ' | ||||
Reduction of assets | ' | ' | -69,802,000 | ' | ||||
Translation adjustment | ' | ' | -1,034,000 | ' | ||||
Balance as of September 30, 2014 | 15,295,000 | ' | 15,295,000 | ' | ||||
Minimum [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Reduction in manufacturing labor and pre-tax charges | ' | ' | 120,000,000 | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Future restructuring costs, current year | ' | ' | 12,000,000 | ' | ||||
Future restructuring costs, 2016 | 20,000,000 | ' | 20,000,000 | ' | ||||
Maximum [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Reduction in manufacturing labor and pre-tax charges | ' | ' | 130,000,000 | ' | ||||
Number of employees terminated due to restructuring | ' | ' | 50 | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Future restructuring costs, current year | ' | ' | 17,000,000 | ' | ||||
Future restructuring costs, 2016 | 25,000,000 | ' | 25,000,000 | ' | ||||
Employee Separations [Member] | ' | ' | ' | ' | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total Restructuring | ' | ' | 14,611,000 | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Gain on asset sales | ' | ' | 0 | ' | ||||
Total Restructuring | ' | ' | 14,611,000 | ' | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Balance as of December 31, 2013 | ' | ' | 4,562,000 | ' | ||||
Restructuring and other costs | ' | ' | 14,611,000 | ' | ||||
Gain on sale of assets | ' | ' | 0 | ' | ||||
Cash spent | ' | ' | -4,812,000 | ' | ||||
Reduction of assets | ' | ' | 0 | ' | ||||
Translation adjustment | ' | ' | -1,034,000 | ' | ||||
Balance as of September 30, 2014 | 13,327,000 | ' | 13,327,000 | ' | ||||
Asset Related and Other [Member] | ' | ' | ' | ' | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total Restructuring | ' | ' | 74,193,000 | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Gain on asset sales | ' | ' | -602,000 | ' | ||||
Total Restructuring | ' | ' | 74,193,000 | ' | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Balance as of December 31, 2013 | ' | ' | 1,588,000 | ' | ||||
Restructuring and other costs | ' | ' | 74,193,000 | ' | ||||
Gain on sale of assets | ' | ' | 602,000 | ' | ||||
Cash spent | ' | ' | -4,613,000 | ' | ||||
Reduction of assets | ' | ' | -69,802,000 | ' | ||||
Translation adjustment | ' | ' | 0 | ' | ||||
Balance as of September 30, 2014 | 1,968,000 | ' | 1,968,000 | ' | ||||
Selling & Administrative [Member] | ' | ' | ' | ' | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total Restructuring | ' | 6,041,000 | ' | 24,584,000 | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Employee separation | ' | 5,002,000 | ' | 16,342,000 | ||||
Long-lived asset impairment | ' | 220,000 | ' | 3,626,000 | ||||
Write-down of inventory | ' | 0 | ' | 0 | ||||
Gain on asset sales | ' | -3,019,000 | ' | -3,019,000 | ||||
Other costs | ' | 3,838,000 | [2] | ' | 7,635,000 | [2] | ||
Total Restructuring | ' | 6,041,000 | ' | 24,584,000 | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Restructuring and other costs | ' | 6,041,000 | ' | 24,584,000 | ||||
Gain on sale of assets | ' | 3,019,000 | ' | 3,019,000 | ||||
Cost of Products Sold [Member] | ' | ' | ' | ' | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total Restructuring | ' | 545,000 | ' | 1,417,000 | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Employee separation | ' | 0 | ' | 0 | ||||
Long-lived asset impairment | ' | 0 | ' | 0 | ||||
Write-down of inventory | ' | 545,000 | ' | 1,417,000 | ||||
Gain on asset sales | ' | 0 | ' | 0 | ||||
Other costs | ' | 0 | [2] | ' | 0 | [2] | ||
Total Restructuring | ' | 545,000 | ' | 1,417,000 | ||||
Summary of accrual for restructuring and other charges [Abstract] | ' | ' | ' | ' | ||||
Restructuring and other costs | ' | 545,000 | ' | 1,417,000 | ||||
Gain on sale of assets | ' | 0 | ' | 0 | ||||
Flavors & Fragrances [Member] | ' | ' | ' | ' | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total Continuing Operations | 20,064,000 | 4,167,000 | 74,115,000 | 18,657,000 | ||||
Color [Member] | ' | ' | ' | ' | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total Continuing Operations | 0 | 1,497,000 | 0 | 5,807,000 | ||||
Corporate & Other [Member] | ' | ' | ' | ' | ||||
Restructuring cost by segment [Abstract] | ' | ' | ' | ' | ||||
Total Continuing Operations | 968,000 | 922,000 | 4,672,000 | 1,537,000 | ||||
2014 Proxy Contest [Member] | ' | ' | ' | ' | ||||
Detail of the restructuring costs [Abstract] | ' | ' | ' | ' | ||||
Other costs | ' | ' | $3,200,000 | ' | ||||
[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. |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Certain Consolidated Condensed Statements of Earnings information for discontinued operations [Abstract] | ' | ' | ' | ' |
Revenue | $910 | $1,536 | $3,209 | $4,433 |
Loss before income taxes | -2,351 | -338 | -10,893 | -1,079 |
Income taxes | -992 | -99 | -3,742 | -316 |
Loss from discontinued operations, net of tax | -1,359 | -239 | -7,151 | -763 |
Pre-tax restructuring costs from discontinued operations | $2,071 | $0 | $10,017 | $0 |