Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SENSIENT TECHNOLOGIES CORP | ||
Entity Central Index Key | 310142 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $2,635,674,530 | ||
Entity Common Stock, Shares Outstanding | 47,521,901 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Earnings [Abstract] | |||
Revenue | $1,447,821 | $1,462,126 | $1,453,555 |
Cost of products sold | 959,311 | 987,080 | 990,911 |
Selling and administrative expenses | 357,845 | 301,266 | 269,765 |
Operating Income | 130,665 | 173,780 | 192,879 |
Interest expense | 16,067 | 16,147 | 16,901 |
Earnings Before Income Taxes | 114,598 | 157,633 | 175,978 |
Income taxes | 32,827 | 43,335 | 50,896 |
Earnings from continuing operations | 81,771 | 114,298 | 125,082 |
Loss from discontinued operations, net of tax | -8,125 | -1,003 | -1,174 |
Net Earnings | $73,646 | $113,295 | $123,908 |
Basic: | |||
Continuing operations (in dollars per share) | $1.69 | $2.30 | $2.52 |
Discontinued operations (in dollars per share) | ($0.17) | ($0.02) | ($0.02) |
Earnings per common share (in dollars per share) | $1.52 | $2.28 | $2.50 |
Diluted: | |||
Continuing operations (in dollars per share) | $1.67 | $2.29 | $2.51 |
Discontinued operations (in dollars per share) | ($0.17) | ($0.02) | ($0.02) |
Earnings per common share (in dollars per share) | $1.51 | $2.27 | $2.49 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 48,525 | 49,755 | 49,596 |
Diluted (in shares) | 48,819 | 49,934 | 49,822 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net earnings | $73,646 | $113,295 | $123,908 |
Cash flow hedges adjustment, net of tax of $153, $50 and $136, respectively | 423 | -134 | -350 |
Pension adjustment, net of tax of $226, $3,675 and $1,040, respectively | 1,598 | 5,294 | -2,216 |
Tax effect on losses previously recorded in other comprehensive income | 0 | 0 | 16,836 |
Foreign currency translation on net investment hedges | 12,677 | -4,020 | -1,251 |
Tax effect of current year activity on net investment hedges | -4,947 | 1,810 | 0 |
Foreign currency translation on long term intercompany loans | -8,325 | 5,781 | -1,540 |
Other foreign currency translation | -92,556 | 1,856 | 22,984 |
Total Comprehensive (Loss) Income | ($17,484) | $123,882 | $158,371 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Cash flow hedges adjustment, tax | $153 | ($50) | ($136) |
Pension adjustment, tax amount | $226 | ($3,675) | $1,040 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $20,329 | $19,836 |
Trade accounts receivable, less allowance for losses of $3,838 and $4,327, respectively | 228,907 | 233,751 |
Inventories | 449,409 | 474,452 |
Prepaid expenses and other current assets | 37,713 | 38,079 |
Deferred income taxes | 21,735 | 23,707 |
Assets held for sale | 1,296 | 0 |
Total current assets | 759,389 | 789,825 |
Other assets | 77,376 | 47,786 |
Intangible assets - at cost, less accumulated amortization of $14,390 and $15,634, respectively | 8,760 | 10,546 |
Goodwill | 424,114 | 457,269 |
Property, Plant and Equipment: | ||
Land | 42,868 | 56,343 |
Buildings | 295,381 | 374,388 |
Machinery and equipment | 723,631 | 751,267 |
Construction in progress | 54,579 | 55,236 |
Property, Plant and Equipment, Gross, Total | 1,116,459 | 1,237,234 |
Less accumulated depreciation | -620,892 | -671,926 |
Property, Plant and Equipment, Net, Total | 495,567 | 565,308 |
Total assets | 1,765,206 | 1,870,734 |
Current Liabilities: | ||
Trade accounts payable | 99,033 | 99,117 |
Accrued salaries, wages and withholdings from employees | 30,010 | 32,669 |
Other accrued expenses | 76,383 | 78,579 |
Income taxes | 3,591 | 5,478 |
Short-term borrowings | 15,888 | 7,050 |
Total current liabilities | 224,905 | 222,893 |
Deferred income taxes | 0 | 19,956 |
Other liabilities | 17,372 | 8,539 |
Accrued employee and retiree benefits | 24,983 | 28,538 |
Long-term debt | 451,011 | 348,124 |
Shareholders' Equity: | ||
Common stock, par value $0.10 a share, authorized 100,000,000 shares; issued 53,954,874 shares | 5,396 | 5,396 |
Additional paid-in capital | 110,969 | 105,119 |
Earnings reinvested in the business | 1,243,627 | 1,217,874 |
Treasury stock, 6,529,891 and 4,105,827 shares, respectively, at cost | -227,929 | -91,707 |
Accumulated other comprehensive (loss) income | -85,128 | 6,002 |
Total shareholders' equity | 1,046,935 | 1,242,684 |
Total liabilities and shareholders' equity | $1,765,206 | $1,870,734 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current Assets: | ||
Trade accounts receivable, allowance for losses | $3,838 | $4,327 |
Intangible assets, accumulated amortization | $14,390 | $15,634 |
Shareholders' Equity: | ||
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 53,954,874 | 53,954,874 |
Treasury stock, shares (in shares) | 6,529,891 | 4,105,827 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net earnings | $73,646 | $113,295 | $123,908 |
Adjustments to arrive at net cash provided by operating activities: | |||
Depreciation and amortization | 51,456 | 52,016 | 48,352 |
Share-based compensation | 6,265 | 8,430 | 10,086 |
Loss (gain) on assets | 70,745 | 695 | -869 |
Deferred income taxes | -16,780 | -6,178 | 2,916 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | -10,582 | 3,466 | -15,158 |
Inventories | 64 | -30,217 | -23,125 |
Prepaid expenses and other assets | 6,479 | 616 | -9,405 |
Accounts payable and other accrued expenses | 6,745 | 3,606 | 225 |
Accrued salaries, wages and withholdings from employees | -365 | 5,384 | -1,209 |
Income taxes | 7,047 | -100 | -1,689 |
Other liabilities | -5,532 | 2,540 | 5,334 |
Net cash provided by operating activities | 189,188 | 153,553 | 139,366 |
Cash Flows from Investing Activities | |||
Acquisition of property, plant and equipment | -79,398 | -104,246 | -103,806 |
Proceeds from sale of assets | 1,029 | 6,225 | 1,364 |
Other investing activities | -780 | -208 | -242 |
Net cash used in investing activities | -79,149 | -98,229 | -102,684 |
Cash Flows from Financing Activities | |||
Proceeds from additional borrowings | 213,985 | 194,973 | 73,903 |
Debt payments | -128,186 | -198,686 | -58,052 |
Purchase of treasury stock | -137,192 | 0 | -23,154 |
Dividends paid | -47,893 | -45,513 | -43,426 |
Proceeds from options exercised and other equity transactions | 733 | 1,007 | 1,957 |
Net cash used in financing activities | -98,553 | -48,219 | -48,772 |
Effect of exchange rate changes on cash and cash equivalents | -10,993 | -2,331 | 4,297 |
Net increase (decrease) in cash and cash equivalents | 493 | 4,774 | -7,793 |
Cash and cash equivalents at beginning of period | 19,836 | 15,062 | 22,855 |
Cash and cash equivalents at end of period | 20,329 | 19,836 | 15,062 |
Cash paid during the year for: | |||
Interest | 16,158 | 16,168 | 16,897 |
Income taxes | 42,335 | 47,436 | 53,492 |
Capitalized interest | $1,449 | $1,875 | $1,601 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Earnings Reinvested in the Business [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
In Thousands, except Share data | ||||||
Beginning Balance at Dec. 31, 2011 | $5,396 | $94,187 | $1,069,610 | ($80,935) | ($39,048) | |
Beginning Balance (in shares) at Dec. 31, 2011 | 4,038,011 | |||||
Net earnings | 123,908 | 123,908 | ||||
Other comprehensive income | 34,463 | |||||
Cash dividends paid | -43,426 | |||||
Share-based compensation | 10,086 | |||||
Stock options exercised | 52 | 1,438 | ||||
Stock options exercised (in shares) | -66,579 | |||||
Non-vested stock issued upon vesting | -6,999 | 6,999 | ||||
Non-vested stock issued upon vesting (in shares) | -313,812 | |||||
Benefit plans | 388 | 480 | ||||
Benefit plans (in shares) | -22,925 | |||||
Purchase of treasury stock | -23,154 | |||||
Purchase of treasury stock (in shares) | 626,251 | |||||
Other | 539 | -86 | ||||
Other (in shares) | 3,875 | |||||
Ending Balance at Dec. 31, 2012 | 5,396 | 98,253 | 1,150,092 | -95,258 | -4,585 | |
Ending Balance (in shares) at Dec. 31, 2012 | 4,264,821 | |||||
Net earnings | 113,295 | 113,295 | ||||
Other comprehensive income | 10,587 | |||||
Cash dividends paid | -45,513 | |||||
Share-based compensation | 8,430 | |||||
Stock options exercised | -63 | 1,063 | ||||
Stock options exercised (in shares) | -47,584 | |||||
Non-vested stock issued upon vesting | -2,113 | 2,113 | ||||
Non-vested stock issued upon vesting (in shares) | -94,600 | |||||
Benefit plans | 385 | 595 | ||||
Benefit plans (in shares) | -26,635 | |||||
Other | 227 | -220 | ||||
Other (in shares) | 9,825 | |||||
Ending Balance at Dec. 31, 2013 | 5,396 | 105,119 | 1,217,874 | -91,707 | 6,002 | 1,242,684 |
Ending Balance (in shares) at Dec. 31, 2013 | 4,105,827 | |||||
Net earnings | 73,646 | 73,646 | ||||
Other comprehensive income | -91,130 | |||||
Cash dividends paid | -47,893 | |||||
Share-based compensation | 6,265 | |||||
Stock options exercised | -161 | 753 | ||||
Stock options exercised (in shares) | -27,001 | |||||
Non-vested stock issued upon vesting | -1,206 | 1,206 | ||||
Non-vested stock issued upon vesting (in shares) | -40,300 | |||||
Benefit plans | 510 | 406 | ||||
Benefit plans (in shares) | -18,185 | |||||
Purchase of treasury stock | -138,288 | |||||
Purchase of treasury stock (in shares) | 2,500,000 | |||||
Other | 442 | -299 | ||||
Other (in shares) | 9,550 | |||||
Ending Balance at Dec. 31, 2014 | $5,396 | $110,969 | $1,243,627 | ($227,929) | ($85,128) | $1,046,935 |
Ending Balance (in shares) at Dec. 31, 2014 | 6,529,891 |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements of Shareholders' Equity [Abstract] | |||
Cash dividends per share (in dollars per share) | $0.98 | $0.91 | $0.87 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Nature of Operations Sensient Technologies Corporation, together with its subsidiaries (the “Company”), is a leading global manufacturer and marketer of colors, flavors and fragrances. The Company uses advanced technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, specialty inks and colors, and other specialty and fine chemicals. The Company’s reportable segments consist of the Flavors & Fragrances and Color Groups, which are managed on a products and services basis. The Asia Pacific Group and certain of the Company’s flavor businesses in Central and South America (Flavors Central & South America), which are managed on a geographic basis, are included in Corporate & Other. | |||||||||||||
Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||
The results of operations for one of the Company’s business units within the Color Group have been reported as a discontinued operation for all periods presented. The corresponding assets have been reclassified in accordance with the authoritative literature on assets held for sale as of December 31, 2014. See Note 12, Discontinued Operations, for further information regarding discontinued operations. | |||||||||||||
Use of Estimates The preparation of the consolidated financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets, liabilities, revenue and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. | |||||||||||||
Revenue Recognition The Company recognizes revenue (net of estimated discounts, allowances and returns) when title to goods passes, the customer is obligated to pay the Company and the Company has no remaining obligations. Such recognition typically corresponds with the shipment of goods. | |||||||||||||
Cost of Products Sold Cost of products sold includes materials, labor and overhead expenses incurred in the manufacture of our products. Cost of products sold also includes charges for obsolete and slow moving inventories, as well as costs for quality control, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, other costs of our internal distribution network and costs incurred for shipping and handling. The Company records fees billed to customers for shipping and handling as revenue. | |||||||||||||
Selling and Administrative Expenses Selling and administrative expenses primarily include the salaries and related costs for executive, finance, accounting, human resources, information technology, research and development and legal personnel as well as salaries and related costs of salespersons and commissions paid to external sales agents. | |||||||||||||
Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents. | |||||||||||||
Accounts Receivable Receivables are recorded at their face amount, less an allowance for doubtful accounts. The allowance for doubtful accounts is based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Specific accounts are written off against the allowance for doubtful accounts when it is deemed that the receivable is no longer collectible. | |||||||||||||
Inventories Inventories are stated at the lower of cost or market. Market is determined on the basis of estimated realizable values. Cost is determined using the first-in, first-out (“FIFO”) method with the exception of certain locations of the Flavors & Fragrances Group where cost is determined using a weighted average method. Inventories include finished and in-process products totaling $308.7 million and $317.1 million at December 31, 2014 and 2013, respectively, and raw materials and supplies of $140.7 million and $157.4 million at December 31, 2014 and 2013, respectively. | |||||||||||||
Property, Plant and Equipment Property, plant and equipment are recorded at cost reduced by accumulated depreciation. Depreciation is provided over the estimated useful life of the related asset using the straight-line method for financial reporting. The estimated useful lives for buildings and leasehold improvements range from 5 to 40 years. Machinery and equipment have estimated useful lives ranging from 3 to 20 years. Interest costs on significant projects constructed or developed for the Company’s own use are capitalized as part of the asset. | |||||||||||||
Goodwill and Other Intangible Assets The carrying value of goodwill is evaluated for impairment on an annual basis or more frequently when an indicator of impairment occurs. The impairment assessment includes comparing the carrying amount of net assets, including goodwill, of each reporting unit to its respective fair value as of the date of the assessment. Fair value was estimated based upon an evaluation of the reporting unit’s estimated future discounted cash flow as well as the public trading and private transaction valuation multiples for comparable companies. Such determination of fair value yielded no impairment in 2014, 2013 or 2012. | |||||||||||||
The cost of intangible assets with determinable useful lives is amortized on a straight-line basis to reflect the pattern of economic benefits consumed, ranging from 5 to 20 years. These assets include technological know-how, customer relationships, patents, trademarks and non-compete agreements, among others. | |||||||||||||
Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if potential impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on the difference between fair value and carrying value. Impairment losses were recorded as a result of the Company’s 2014 Restructuring Plan and 2013 restructuring plan. See Note 11, Restructuring Charges, for additional information. | |||||||||||||
Financial Instruments The Company may use derivative financial instruments for the purpose of hedging currency and interest rate exposures which exist as part of ongoing business operations. As a policy, the Company does not engage in speculative or leveraged transactions, nor does the Company hold or issue financial instruments for trading purposes. | |||||||||||||
Hedge effectiveness is determined by how closely the changes in the fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged item. Hedge accounting is permitted only if the hedging relationship is expected to be highly effective at the inception of the transaction and on an ongoing basis. Any ineffective portions are recognized in earnings immediately. | |||||||||||||
Interest Rate Hedging The Company is exposed to interest rate risk through its corporate borrowing activities. The objective of the Company’s interest rate risk management activities is to manage the levels of the Company’s fixed and floating interest rate exposure to be consistent with the Company’s preferred mix. The interest rate risk management program may include entering into interest rate swaps, which qualify as fair value hedges, when there is a desire to modify the Company’s exposure to interest rates. Gains or losses on fair value hedges are recognized in earnings, net of gains and losses on the fair value of the hedged instruments. | |||||||||||||
Cash Flow Hedges The primary objectives of the foreign exchange risk management activities are to understand and mitigate the impact of potential foreign exchange fluctuations on the Company’s financial results and its economic well-being. Generally, these risk management transactions involve the use of foreign currency derivatives to protect against exposure resulting from recorded accounts receivable and payable. The Company may utilize forward exchange contracts, generally with maturities of less than 12 months, which qualify as cash flow hedges. These foreign exchange contracts are intended to offset the effect of exchange rate fluctuations on recorded intercompany receivables and payables. Gains and losses on these instruments are deferred in accumulated other comprehensive (loss) income (“OCI”) until the underlying transaction is recognized in earnings. | |||||||||||||
The Company’s existing cash flow hedges are highly effective. As a result, any current impact on earnings due to cash flow hedge ineffectiveness is immaterial. | |||||||||||||
Net Investments Hedging The Company may enter into foreign-denominated debt to be used as a non-derivative instrument to hedge the Company’s net investment in foreign subsidiaries. The change in the carrying amount of the foreign-denominated debt on the Company’s books, attributable to changes in the spot foreign exchange rate, is a hedge of the net investment in its foreign subsidiaries. Changes in the fair value of debt designated as a net investment hedge are recorded in foreign currency translation in OCI. | |||||||||||||
Commodity Purchases The Company purchases certain commodities in the normal course of business that result in physical delivery of the goods and, hence, are excluded from Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging. | |||||||||||||
Translation of Foreign Currencies For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of foreign operations are translated into U.S. dollars at current exchange rates. Revenue and expense accounts are translated into U.S. dollars at average exchange rates prevailing during the year. Adjustments resulting from the translation of foreign accounts into U.S. dollars are recorded in foreign currency translation in OCI. Transaction gains and losses that occur as a result of transactions denominated in non-functional currencies are included in earnings and were not significant during the three-year period ended December 31, 2014. | |||||||||||||
Share-Based Compensation Share-based compensation expense is recognized over the vesting period of each award based on the fair value of the instrument at the time of grant as summarized in Note 5, Share-Based Compensation. | |||||||||||||
Income Taxes The Company recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax liability or asset for the estimated future tax effects attributable to temporary differences and carryforwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Deferred tax assets are reduced, if necessary, by the amount of any tax benefits for which the utilization of the asset is not considered likely. | |||||||||||||
Earnings Per Share The difference between basic and diluted earnings per share (“EPS”) is the dilutive effect of stock options and non-vested stock. Diluted EPS assumes that non-vested stock has vested and all dilutive stock options, for which the average market price exceeds the exercise price (in-the-money), are exercised. Stock options for which the exercise price exceeds the average market price (out-of-the-money) have an anti-dilutive effect on EPS, and accordingly, are excluded from the calculation. | |||||||||||||
The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the years ended December 31: | |||||||||||||
(in thousands except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Numerator: | |||||||||||||
Net earnings from continuing operations | $ | 81,771 | $ | 114,298 | $ | 125,082 | |||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share-weighted average common shares | 48,525 | 49,755 | 49,596 | ||||||||||
Effect of dilutive securities | 294 | 179 | 226 | ||||||||||
Denominator for diluted earnings per share-adjusted weighted average shares outstanding | 48,819 | 49,934 | 49,822 | ||||||||||
Earnings per common share from continuing operations | |||||||||||||
Basic | $ | 1.69 | $ | 2.3 | $ | 2.52 | |||||||
Diluted | $ | 1.67 | $ | 2.29 | $ | 2.51 | |||||||
The Company has a share-based compensation plan under which employees may be granted share-based awards in which non-forfeitable dividends are paid on non-vested shares for certain awards. As such, these shares are considered participating securities under the two-class method of calculating EPS as described in ASC Topic 260, Earnings per Share. The two-class method of calculating EPS did not have a material impact on the Company’s EPS calculations as of December 31, 2014, 2013 and 2012. | |||||||||||||
In 2014, 2013 and 2012, there were no anti-dilutive stock options. All EPS amounts are presented on a diluted basis unless otherwise noted. | |||||||||||||
Accumulated Other Comprehensive Income (Loss)Accumulated OCI is composed primarily of foreign currency translation, pension liability and unrealized gains or losses on cash flow hedges. See Note 7, Accumulated Other Comprehensive Income, for additional information. | |||||||||||||
Research and Development Research and development costs are recorded in selling and administrative expenses in the year they are incurred. Research and development costs related to continuing operations were $35.9 million, $34.1 million and $34.2 million during the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Advertising Advertising costs are recorded in selling and administrative expenses as they are incurred. Advertising costs related to continuing operations were $1.9 million, $1.6 million and $2.2 million during the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Environmental Liabilities The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and reasonably estimable. Such accruals are adjusted as further information becomes available or as circumstances change. Estimated future expenditures are discounted to their present value when the timing and amount of future cash flows are fixed and readily determinable. Recoveries of remediation costs from other parties, if any, are recognized as assets when their receipt is assured. | |||||||||||||
Subsequent Events The Company performed an evaluation of subsequent events through the date these financial statements were issued and no such events were identified. | |||||||||||||
New Pronouncements 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 Financial Accounting Standards Board (“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 ASC 205-20, “Discontinued Operations” 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 this guidance 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. The Company is currently evaluating the expected impact of this new standard. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | 2 | ||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||
At December 31, 2014 and 2013, goodwill is the only intangible asset that is not subject to amortization. | |||||||||||||||||||||
The following table summarizes intangible assets with determinable useful lives by major category as of December 31, 2014 and 2013: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(in thousands except weighted average amortization years) | Weighted Average Amortization Years | Cost | Accumulated Amortization | Cost | Accumulated Amortization | ||||||||||||||||
Technological know-how | 20 | $ | 6,459 | $ | (4,352 | ) | $ | 8,606 | $ | (5,328 | ) | ||||||||||
Customer relationships | 20 | 6,938 | (4,170 | ) | 7,944 | (4,359 | ) | ||||||||||||||
Patents, trademarks, non-compete agreements and other | 19.2 | 9,753 | (5,868 | ) | 9,630 | (5,947 | ) | ||||||||||||||
Total finite-lived intangibles | 19.7 | $ | 23,150 | $ | (14,390 | ) | $ | 26,180 | $ | (15,634 | ) | ||||||||||
Amortization of intangible assets was $1.2 million in 2014, $1.3 million in 2013 and $1.4 million in 2012. Estimated amortization expense each year for the five years subsequent to December 31, 2014, is $1.2 million in each year from 2015 through 2019. | |||||||||||||||||||||
The changes in goodwill for the years ended December 31, 2014 and 2013, by reportable business segment, were as follows: | |||||||||||||||||||||
(in thousands) | Flavors & Fragrances | Color | Corporate & Other | Consolidated | |||||||||||||||||
Balance as of December 31, 2012 | $ | 135,784 | $ | 311,650 | $ | 3,884 | $ | 451,318 | |||||||||||||
Currency translation impact | 853 | 5,673 | (575 | ) | 5,951 | ||||||||||||||||
Balance as of December 31, 2013 | $ | 136,637 | $ | 317,323 | $ | 3,309 | $ | 457,269 | |||||||||||||
Currency translation impact | (10,614 | ) | (22,050 | ) | (333 | ) | (32,997 | ) | |||||||||||||
Impairment | — | (158 | ) | — | (158 | ) | |||||||||||||||
Balance as of December 31, 2014 | $ | 126,023 | $ | 295,115 | $ | 2,976 | $ | 424,114 | |||||||||||||
A portion of the Color segment’s goodwill was written down in 2014 related to the discontinued operation. |
DEBT
DEBT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
DEBT [Abstract] | |||||||||
DEBT | 3 | ||||||||
DEBT | |||||||||
Long-term Debt Long-term debt consisted of the following unsecured obligations at December 31: | |||||||||
(in thousands) | 2014 | 2013 | |||||||
3.66% senior notes due November 2023 | $ | 75,000 | $ | 75,000 | |||||
3.06% Euro-denominated senior notes due November 2023 | 46,270 | 52,566 | |||||||
4.47% senior notes due November 2018 | 25,000 | 25,000 | |||||||
4.14% senior notes due November 2017 | 25,000 | 25,000 | |||||||
4.91% senior notes due through May 2017 | 88,000 | 99,000 | |||||||
3.77% senior notes due November 2016 | 25,000 | 25,000 | |||||||
Term loan | 98,750 | — | |||||||
Long-term revolving loan agreement | 65,987 | 43,982 | |||||||
Various other notes | 2,004 | 2,576 | |||||||
451,011 | 348,124 | ||||||||
Less current maturities | — | — | |||||||
Total long-term debt | $ | 451,011 | $ | 348,124 | |||||
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 has a final maturity date of October 24, 2019. The credit facility will be used to repay maturing debt and for general corporate purposes. | |||||||||
The borrowings under the long-term revolving loan agreement had an average interest rate of 1.54% for the years ended December 31, 2014 and 2013. | |||||||||
In April 2013, the Company entered into an agreement to issue $75 million and €38 million in ten-year, fixed-rate, senior notes at fixed coupon rates of 3.66% and 3.06%, respectively. These notes were issued in November 2013 and proceeds have been used to repay maturing notes and bank debt. | |||||||||
The aggregate amounts of contractual maturities on long-term debt each year for the five years subsequent to December 31, 2014, are as follows: 2015, $18.4 million; 2016, $43.8 million; 2017, $99.1 million; 2018, $35.0 million; and 2019, $133.5 million. | |||||||||
The Company has approximately $18.4 million of long-term debt that matures in 2015. It is the Company’s intention and ability to refinance these maturities under the long-term revolving loan agreement and accordingly, that maturing debt has been classified as long-term debt in the Consolidated Balance Sheet. | |||||||||
The Company has $277.7 million available under the revolving loan agreement and $41.8 million available under other lines of credit from several banks at December 31, 2014. | |||||||||
Substantially all of the senior loan agreements contain restrictions concerning interest coverage, borrowings, investments and tangible net worth amounts. The Company is in compliance with all of these restrictions at December 31, 2014. The following table summarizes the Company’s most restrictive loan covenants calculated in accordance with the applicable agreements as of December 31, 2014: | |||||||||
(dollars in thousands) | Actual | Required | |||||||
Debt to EBITDA (Maximum) | 1.74 | 3.5 | |||||||
Net Worth (Minimum) | $ | 1,046,935 | $ | 625,000 | |||||
Interest Coverage (Minimum) | 8.64 | 2 | |||||||
The Company has stand-by and trade letters of credit outstanding of $6.3 million as of December 31, 2014 and 2013. | |||||||||
Short-term Borrowings The Company’s short-term borrowings consisted of the following items at December 31: | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Uncommitted loans | $ | 14,086 | $ | 4,600 | |||||
Loans of foreign subsidiaries | 1,802 | 2,450 | |||||||
Total | $ | 15,888 | $ | 7,050 | |||||
The weighted average interest rates on short-term borrowings were 1.66% and 2.16% at December 31, 2014 and 2013, respectively. |
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITY | 12 Months Ended |
Dec. 31, 2014 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITY [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITY | 4 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITY | |
The Company may use derivative instruments for the purpose of hedging currency, commodity and interest rate exposures, which exist as part of ongoing business operations. As a policy, the Company does not engage in speculative or leveraged transactions, nor does the Company hold or issue financial instruments for trading purposes. Hedge effectiveness is determined by how closely the changes in the fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged transaction. Hedge accounting, which generally results in the deferral of derivative gains and losses until such time as the underlying transaction is recognized in net earnings, is permitted only if the hedging relationship is expected to be highly effective at the inception of the transaction and on an ongoing basis. Any ineffective portions are recognized in earnings immediately. | |
The Company manages its exposure to foreign exchange risk by the use of forward exchange contracts to reduce 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 generally have maturities of less than twelve months. The Company also uses certain debt denominated in foreign currencies to manage the net asset positions of the Company’s foreign subsidiaries. The Company’s primary hedging activities and their accounting treatment are summarized below: | |
Forward Exchange ContractsThe forward exchange contracts that have been designated as hedges are accounted for as cash flow hedges. The Company had $17.8 million and $29.6 million of forward exchange contracts, designated as hedges, outstanding as of December 31, 2014 and 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 also 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 OCI. As of December 31, 2014 and 2013, the total value of the Company’s Euro and Swiss Franc debt designated as net investment hedges was $97.3 million and $96.5 million, respectively. The impact of foreign exchange rates on these debt instruments has decreased debt by $12.7 million for the year ended December 31, 2014 and increased debt by $4.0 million for the year ended December 31, 2013. These amounts have been recorded as foreign currency translation in OCI. | |
Concentrations of Credit Risk Counterparties to forward exchange contracts consist of large international financial institutions. While these counterparties may expose the Company to potential losses due to the credit risk of non-performance, losses are not anticipated. Concentrations of credit risk with respect to trade accounts receivable are limited by the large number of customers, generally short payment terms and their dispersion across geographic areas. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SHARE-BASED COMPENSATION [Abstract] | |||||||||||||||||
SHARE-BASED COMPENSATION | 5 | ||||||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||||||
The Company has various stock plans under which employees and directors may be granted non-vested stock which vests over a specific time period. The 2007 Stock Plan also allows for the granting of non-qualified stock options or incentive stock options. Upon vesting, the stock options allow the participant to purchase common stock at 100% of the closing market price on the day the options were granted. No options were granted in 2014, 2013 or 2012. As of December 31, 2014, there were 1.2 million shares available to be granted as non-vested stock under the Company’s existing stock plans. | |||||||||||||||||
Stock options became exercisable over a three-year vesting period, or earlier upon retirement, and expire 10 years from the date of grant. Expense for stock options was recognized on a straight-line basis over three years from the date of grant or over the period from the date of grant until the participant was retirement-eligible, whichever was less. Treasury shares are issued for non-vested stock awards and for the exercise of stock options. | |||||||||||||||||
The following table summarizes the transactions involving the Company’s stock option plans: | |||||||||||||||||
(in thousands except exercise price and life) | Options | Weighted Average Exercise Price | Weighted Average Remaining Life (Years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding at December 31, 2011 | 207 | $ | 22.36 | 3.1 | $ | 3,222 | |||||||||||
Exercised | (66 | ) | 22.38 | ||||||||||||||
Outstanding at December 31, 2012 | 141 | 22.35 | 2.7 | 1,859 | |||||||||||||
Exercised | (48 | ) | 21 | ||||||||||||||
Outstanding at December 31, 2013 | 93 | 23.04 | 2.2 | 2,374 | |||||||||||||
Exercised | (27 | ) | 21.92 | ||||||||||||||
Outstanding at December 31, 2014 | 66 | $ | 23.49 | 1.7 | $ | 2,438 | |||||||||||
Exercisable at December 31, 2014 | 66 | $ | 23.49 | 1.7 | $ | 2,438 | |||||||||||
The aggregate intrinsic value of stock options exercised during 2014, 2013 and 2012, was $0.8 million, $1.1 million and $0.9 million, respectively. | |||||||||||||||||
As of December 31, 2014, all stock options outstanding were vested. | |||||||||||||||||
The following table summarizes information concerning outstanding and exercisable stock options at December 31, 2014: | |||||||||||||||||
Range of Exercise Price | |||||||||||||||||
(in thousands except life and exercise price) | $ | 18.57-23.08 | $ | 23.09-26.11 | $ | 26.12-30.07 | |||||||||||
Options outstanding | 25 | 20 | 21 | ||||||||||||||
Weighted average remaining contractual life, in years | 1.1 | 1.3 | 2.8 | ||||||||||||||
Weighted average exercise price | $ | 19.34 | $ | 23.86 | $ | 28.16 | |||||||||||
Options exercisable | 25 | 20 | 21 | ||||||||||||||
Weighted average exercise price | $ | 19.34 | $ | 23.86 | $ | 28.16 | |||||||||||
The Company’s stock plans also provide for the awarding of non-vested stock. Prior to December 2014, expense for shares of non-vested stock is recognized over the vesting period or during the period from the date of grant until the participant reaches age 65, whichever is shorter. The vesting period is five years for awards granted prior to December 2013 and three years beginning with awards granted in December 2013. During the period of restriction, the holder of non-vested stock has voting rights and is entitled to receive all dividends and other distributions paid with respect to the stock. | |||||||||||||||||
The December 2013 grant consisted of 50% performance stock units and 50% time-vesting stock. The number of shares issued under the performance stock units are based on certain performance metrics measured over a two-year performance period and the awards have a three-year vesting period. Two year performance that exceeds the stated performance metrics would result in an award up to 150% of the original grant. The holder of the performance stock units are not entitled to vote or receive dividends and other distributions paid with respect to the stock, until the units have vested and the shares of stock are issued. | |||||||||||||||||
The December 2014 grant consisted of 100% performance stock unit awards which are based on a three-year performance and vesting period and a pro-rata vesting upon retirement. Three year performance that exceeds the stated performance metrics would result in an award up to 150% of the original grant. The holder of the performance stock units are not entitled to vote or receive dividends and other distributions paid with respect to the stock, until the units have vested and the shares of stock are issued. | |||||||||||||||||
The Company expenses awards for non-vested stock based on the fair value of the Company’s common stock at the date of the grant. | |||||||||||||||||
The following table summarizes the non-vested stock and performance stock unit activity: | |||||||||||||||||
(in thousands except fair value) | Shares | Grant Date Weighted Average Fair Value | Aggregate Intrinsic Value | ||||||||||||||
Outstanding at December 31, 2011 | 400 | $ | 31.42 | $ | 15,142 | ||||||||||||
Granted | 293 | 36.09 | |||||||||||||||
Vested | (314 | ) | 33.59 | ||||||||||||||
Cancelled | (40 | ) | 33.41 | ||||||||||||||
Outstanding at December 31, 2012 | 339 | 33.22 | 12,046 | ||||||||||||||
Granted | 262 | 46.14 | |||||||||||||||
Vested | (94 | ) | 40.57 | ||||||||||||||
Cancelled | (10 | ) | 42.22 | ||||||||||||||
Outstanding at December 31, 2013 | 497 | 38.46 | 24,095 | ||||||||||||||
Granted | 171 | 55.21 | |||||||||||||||
Vested | (40 | ) | 27.15 | ||||||||||||||
Cancelled | (24 | ) | 40.84 | ||||||||||||||
Outstanding at December 31, 2014 | 604 | $ | 43.84 | $ | 36,454 | ||||||||||||
The total intrinsic values of shares vested during 2014, 2013 and 2012, was $2.2 million, $4.4 million and $11.2 million, respectively. | |||||||||||||||||
As of December 31, 2014, total remaining unearned compensation, net of expected forfeitures, related to non-vested stock and performance stock units was $15.7 million, which will be amortized over the weighted average remaining service period of 1.98 years. | |||||||||||||||||
Total pre-tax share-based compensation recognized in the Consolidated Statements of Earnings was $6.3 million, $8.4 million and $10.1 million in 2014, 2013 and 2012, respectively. Tax related benefits of $2.4 million, $2.6 million and $2.4 million were also recognized in 2014, 2013 and 2012, respectively. Cash received from the exercise of stock options was $0.6 million, $1.0 million and $1.5 million for 2014, 2013 and 2012, respectively, and is reflected in cash flows from financing activities in the Consolidated Statements of Cash Flows. |
RETIREMENT_PLANS
RETIREMENT PLANS | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
RETIREMENT PLANS [Abstract] | |||||||||||||||||||||||||||||||||
RETIREMENT PLANS | 6 | ||||||||||||||||||||||||||||||||
RETIREMENT PLANS | |||||||||||||||||||||||||||||||||
The Company provides benefits under defined contribution plans including a savings plan and an employee stock ownership plan (“ESOP”). The savings plan covers substantially all domestic salaried and certain non-union hourly employees and provides for matching contributions up to 4% of each employee’s salary. The ESOP covers substantially all domestic employees and provides for contributions based on a percentage of each employee’s compensation as determined by the Company’s Board of Directors. Total expense for the Company’s defined contribution plans was $5.0 million in 2014 and $4.7 million in 2013 and 2012. | |||||||||||||||||||||||||||||||||
Although the Company intends for these defined contribution plans to be the primary retirement benefit for most employees, the Company also has several defined benefit plans. The funded status of the defined benefit plans was as follows at December 31: | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 72,582 | $ | 76,957 | |||||||||||||||||||||||||||||
Service cost | 2,523 | 3,260 | |||||||||||||||||||||||||||||||
Interest cost | 2,390 | 2,557 | |||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | (1,889 | ) | (703 | ) | |||||||||||||||||||||||||||||
Benefits paid | (23,726 | ) | (5,194 | ) | |||||||||||||||||||||||||||||
Actuarial loss (gain) | 5,858 | (4,295 | ) | ||||||||||||||||||||||||||||||
Curtailment gain | (2,342 | ) | — | ||||||||||||||||||||||||||||||
Benefit obligation at end of year | 55,396 | 72,582 | |||||||||||||||||||||||||||||||
Plan assets at beginning of year | 37,122 | 35,141 | |||||||||||||||||||||||||||||||
Company contributions | 22,402 | 5,701 | |||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | (2,379 | ) | (539 | ) | |||||||||||||||||||||||||||||
Benefits paid | (23,726 | ) | (5,258 | ) | |||||||||||||||||||||||||||||
Actual gain on plan assets | 6,101 | 2,077 | |||||||||||||||||||||||||||||||
Plan assets at end of year | 39,520 | 37,122 | |||||||||||||||||||||||||||||||
Funded status | $ | (15,876 | ) | $ | (35,460 | ) | |||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 54,435 | $ | 68,391 | |||||||||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets at December 31: | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Accrued employee and retiree benefits | $ | (18,258 | ) | $ | (21,206 | ) | |||||||||||||||||||||||||||
Other accrued expenses | (7,263 | ) | (19,144 | ) | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets | 9,645 | 4,890 | |||||||||||||||||||||||||||||||
Net liability | $ | (15,876 | ) | $ | (35,460 | ) | |||||||||||||||||||||||||||
Components of annual benefit cost: | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Service cost | $ | 2,523 | $ | 3,260 | $ | 2,583 | |||||||||||||||||||||||||||
Interest cost | 2,390 | 2,557 | 2,659 | ||||||||||||||||||||||||||||||
Expected return on plan assets | (1,791 | ) | (1,689 | ) | (1,428 | ) | |||||||||||||||||||||||||||
Amortization of prior service cost | 171 | 172 | 1,971 | ||||||||||||||||||||||||||||||
Recognized actuarial (gain) loss | (305 | ) | 3,203 | 799 | |||||||||||||||||||||||||||||
Settlement expense | 1,467 | 1,177 | — | ||||||||||||||||||||||||||||||
Curtailment gain | (754 | ) | — | — | |||||||||||||||||||||||||||||
Defined benefit expense | $ | 3,701 | $ | 8,680 | $ | 6,584 | |||||||||||||||||||||||||||
Weighted average liability assumptions as of December 31: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Discount rate | 3.7 | % | 3.91 | % | |||||||||||||||||||||||||||||
Expected return on plan assets | 3.32 | % | 5.12 | % | |||||||||||||||||||||||||||||
Rate of compensation increase | 0.37 | % | 4.59 | % | |||||||||||||||||||||||||||||
Weighted average cost assumptions for the year ended December 31: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Discount rate | 3.91 | % | 3.27 | % | |||||||||||||||||||||||||||||
Expected return on plan assets | 5.12 | % | 4.76 | % | |||||||||||||||||||||||||||||
Rate of compensation increase | 4.59 | % | 4.01 | % | |||||||||||||||||||||||||||||
The aggregate amounts of benefits expected to be paid from defined benefit plans in each of the next five years subsequent to December 31, 2014, which include employees’ expected future service, are as follows: 2015, $9.6 million; 2016, $7.7 million; 2017, $2.3 million; 2018, $4.5 million; 2019, $2.5 million; and $17.5 million in total for the years 2020 through 2024. | |||||||||||||||||||||||||||||||||
The Company expects to contribute $9.7 million to defined benefit plans in 2015. | |||||||||||||||||||||||||||||||||
Amounts in accumulated other comprehensive income at December 31 were as follows: | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Prior service cost | $ | — | $ | 1,182 | |||||||||||||||||||||||||||||
Unrecognized net actuarial loss | 7,407 | 7,944 | |||||||||||||||||||||||||||||||
The pension adjustments, net of tax, recognized in OCI, were as follows: | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net actuarial (loss) gain arising during the period | $ | (387 | ) | $ | 3,180 | $ | (3,947 | ) | |||||||||||||||||||||||||
Amortization of actuarial loss, included in defined benefit expense | 1,252 | 2,006 | 526 | ||||||||||||||||||||||||||||||
Amortization of prior service cost, included in defined benefit expense | 733 | 108 | 1,205 | ||||||||||||||||||||||||||||||
Pension adjustment, net of tax | $ | 1,598 | $ | 5,294 | $ | (2,216 | ) | ||||||||||||||||||||||||||
The estimated actuarial loss for the defined benefit plans that will be amortized from accumulated other comprehensive loss into periodic benefit cost during 2015 is $0.3 million. | |||||||||||||||||||||||||||||||||
The investment objectives and target allocations for the Company’s pension plans related to the assets of the plans are reviewed on a regular basis. The investment objectives for the pension assets are to maximize the return on assets while maintaining an overall level of risk appropriate for a retirement fund and ensuring the availability of funds for the payment of retirement benefits. The levels of risk assumed by the pension plans are determined by market conditions, the rate of return expectations and the liquidity requirements of each pension plan. The actual asset allocations of each pension plan are reviewed on a regular basis to ensure that they are in line with the target allocations. | |||||||||||||||||||||||||||||||||
The following table presents the Company’s pension plan assets by asset category as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||
Fair value as of December 31, | Fair Value Measurements at December 31, 2014 Using Fair Value Hierarchy | Fair Value as of December 31, | Fair Value Measurements at December 31, 2013 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||
(in thousands) | 2014 | Level 1 | Level 2 | Level 3 | 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Equity Funds | |||||||||||||||||||||||||||||||||
Domestic | $ | 6,424 | $ | 6,424 | $ | — | $ | — | $ | 6,143 | $ | 6,143 | $ | — | $ | — | |||||||||||||||||
International | 242 | — | 242 | — | 7,294 | — | 7,294 | — | |||||||||||||||||||||||||
International Fixed Income Funds | 22,710 | 960 | 21,750 | — | 23,162 | 1,186 | 21,976 | — | |||||||||||||||||||||||||
Other investments | 10,144 | 38 | 10,106 | — | 523 | 40 | 483 | — | |||||||||||||||||||||||||
Total assets at fair value | $ | 39,520 | $ | 7,422 | $ | 32,098 | $ | — | $ | 37,122 | $ | 7,369 | $ | 29,753 | $ | — | |||||||||||||||||
The Company is required to categorize pension plan assets based on the following fair value hierarchy: | |||||||||||||||||||||||||||||||||
Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||||||||||||||||||
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data. | |||||||||||||||||||||||||||||||||
Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | |||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | 7 | ||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||
The following tables summarize the changes in OCI for 2014: | |||||||||||||||||
(in thousands) | Cash Flow Hedges(a) | Pension Items(a) | Foreign Currency Items | Total | |||||||||||||
Balance as of December 31, 2013 | $ | (99 | ) | $ | (6,768 | ) | $ | 12,869 | $ | 6,002 | |||||||
Other comprehensive income before reclassifications | 554 | (387 | ) | (93,151 | ) | (92,984 | ) | ||||||||||
Amounts reclassified from OCI | (131 | ) | 1,985 | — | 1,854 | ||||||||||||
Balance as of December 31, 2014 | $ | 324 | $ | (5,170 | ) | $ | (80,282 | ) | $ | (85,128 | ) | ||||||
(a) Cash Flow Hedges and Pension Items are net of tax. | |||||||||||||||||
See Note 6, Retirement Plans, for more information on the pension items reclassified out of OCI and into Selling and Administrative expenses in the Statement of Earnings during 2014. See Note 4, Derivative Instruments and Hedging Activity, for additional information on the Company’s cash flow hedges. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
INCOME TAXES | 8 | ||||||||||||
INCOME TAXES | |||||||||||||
The provision for income taxes for continuing operations was as follows: | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Currently payable: | |||||||||||||
Federal | $ | 18,642 | $ | 21,252 | $ | 22,394 | |||||||
State | 2,264 | 3,065 | 3,024 | ||||||||||
Foreign | 25,435 | 25,175 | 22,670 | ||||||||||
46,341 | 49,492 | 48,088 | |||||||||||
Deferred (benefit) expense: | |||||||||||||
Federal | 1,532 | (5,125 | ) | 170 | |||||||||
State | (935 | ) | 502 | 603 | |||||||||
Foreign | (14,111 | ) | (1,534 | ) | 2,035 | ||||||||
(13,514 | ) | (6,157 | ) | 2,808 | |||||||||
Income taxes | $ | 32,827 | $ | 43,335 | $ | 50,896 | |||||||
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following: | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Benefit plans | $ | 15,507 | $ | 21,148 | |||||||||
Liabilities and reserves | 19,384 | 11,499 | |||||||||||
Operating loss and credit carryovers | 57,128 | 51,292 | |||||||||||
Other | 6,872 | 17,151 | |||||||||||
Gross deferred tax assets | 98,891 | 101,090 | |||||||||||
Valuation allowance | (43,055 | ) | (43,048 | ) | |||||||||
Deferred tax assets | 55,836 | 58,042 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | (1,619 | ) | (21,139 | ) | |||||||||
Other assets | (1,462 | ) | (1,411 | ) | |||||||||
Goodwill | (28,583 | ) | (28,573 | ) | |||||||||
Other | (1,426 | ) | (3,168 | ) | |||||||||
Deferred tax liabilities | (33,090 | ) | (54,291 | ) | |||||||||
Net deferred tax assets | $ | 22,746 | $ | 3,751 | |||||||||
As of December 31, 2014, $1.0 million of the net deferred tax asset balance, is a non-current asset and is reported in the other assets line item in the Consolidated Balance Sheet. | |||||||||||||
In 2012, the Company recorded a correction of a prior period item related to the tax effect on certain foreign denominated loan losses that were previously recorded in OCI. As a result, net deferred tax assets increased by $10.8 million, other current assets by $6.0 million and OCI by $16.8 million. The tax effect was recognized in OCI in 2012 and was not material to any previously reported year. | |||||||||||||
At December 31, 2014, foreign operating loss carryovers were $116.2 million. Included in the foreign operating loss carryovers are losses of $10.1 million that expire through 2029 and $106.0 million that do not have an expiration date. At December 31, 2014, state operating loss carryovers were $99.3 million, all of which expire through 2029. | |||||||||||||
The effective tax rate for continuing operations differed from the statutory federal income tax rate of 35% as described below: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Taxes at statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal income tax benefit | 1.9 | 1.1 | 1.5 | ||||||||||
Tax credits | (0.4 | ) | (0.3 | ) | — | ||||||||
Taxes on foreign earnings | (4.7 | ) | (5.3 | ) | (4.1 | ) | |||||||
Resolution of prior years’ tax matters | (0.6 | ) | (0.7 | ) | (1.4 | ) | |||||||
U.S. manufacturing deduction | (2.0 | ) | (1.6 | ) | (1.8 | ) | |||||||
Valuation allowance adjustments | 0.2 | (0.8 | ) | (0.5 | ) | ||||||||
Other, net | (0.8 | ) | 0.1 | 0.2 | |||||||||
Effective tax rate | 28.6 | % | 27.5 | % | 28.9 | % | |||||||
Earnings from continuing operations before income taxes were as follows: | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
United States | $ | 56,211 | $ | 55,461 | $ | 79,118 | |||||||
Foreign | 58,387 | 102,172 | 96,860 | ||||||||||
Total | $ | 114,598 | $ | 157,633 | $ | 175,978 | |||||||
Federal and state income taxes are provided on international subsidiary income distributed to or taxable in the United States during the year. At December 31, 2014, federal and state taxes have not been provided for approximately $449.8 million of unremitted earnings of the foreign subsidiaries that are considered to be invested indefinitely. Determination of the deferred tax liability on such earnings is not practicable. | |||||||||||||
A reconciliation of the change in the liability for unrecognized tax benefits for 2014 and 2013 is as follows: | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Balance at beginning of year | $ | 5,295 | $ | 7,091 | |||||||||
Increases for tax positions taken in the current year | 718 | 818 | |||||||||||
Increases for tax positions taken in prior years | 10,238 | 875 | |||||||||||
Decreases related to settlements with tax authorities | (1,044 | ) | (3,113 | ) | |||||||||
Decreases as a result of lapse of the applicable statutes of limitations | (751 | ) | (374 | ) | |||||||||
Foreign currency exchange rate changes | (516 | ) | (2 | ) | |||||||||
Balance at the end of year | $ | 13,940 | $ | 5,295 | |||||||||
The amount of the unrecognized tax benefits that would affect the effective tax rate, if recognized, was approximately $4.3 million. The Company recognizes interest and penalties related to the unrecognized tax benefits in income tax expense. As of December 31, 2014 and 2013, $0.5 million and $0.7 million, respectively, of accrued interest and penalties were reported as an income tax liability. The liability for unrecognized tax benefits relates to multiple jurisdictions and is reported in Other liabilities on the Consolidated Balance Sheet at December 31, 2014. | |||||||||||||
The Company believes that it is reasonably possible that the total amount of liability for unrecognized tax benefits as of December 31, 2014, will decrease by approximately $10.2 million during 2015, of which $0.3 million is estimated to impact the effective tax rate. The potential decrease relates to various tax matters for which the statute of limitations may expire or will be otherwise settled in 2015. The amount that is ultimately recognized in the financial statements will be dependent upon various factors including potential increases or decreases to unrecognized tax benefits as a result of examinations, settlements and other unanticipated items that may occur during the year. With limited exceptions, the Company is no longer subject to federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2004. |
SEGMENT_AND_GEOGRAPHIC_INFORMA
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION [Abstract] | |||||||||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | 9 | ||||||||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | |||||||||||||||||
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on operating income of the respective business units before restructuring charges, interest expense and income taxes. Total revenue and operating income by business segment and geographic region include both sales to customers, as reported in the Company’s Consolidated Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation. Corporate & Other revenue consists primarily of flavor, fragrances and color products sold by the Asia Pacific Group and Flavors Central & South America Group. | |||||||||||||||||
Assets by business segment and geographic region are those assets used in the Company’s operations in each segment and geographic region. Segment assets reflect the allocation of goodwill to each segment. Corporate & Other assets consist primarily of property and investments. | |||||||||||||||||
Segment Information The Company determines its operating segments based on information utilized by the chief operating decision maker to allocate resources and assess performance. The Company’s reportable segments consist of Flavors & Fragrances and Color and are both managed on a products and services basis. The Company’s Flavors & Fragrances segment produces flavor and fragrance products that impart a desired taste, texture, aroma or other characteristic to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for pharmaceuticals, foods and beverages; colors and formulations for cosmetics; and technical colors for industrial applications. Two additional segments, Asia Pacific and Flavors Central & South America are managed on a geographic basis and included in Corporate & Other. | |||||||||||||||||
Beginning in 2014, the results of operations for the Company’s fragrances businesses in Asia Pacific, 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. The Color segment results have been restated to remove the impact of a discontinued operation. The prior year results have been restated as a result of these changes. | |||||||||||||||||
Restructuring and other costs related to continuing operations for the years ended December 31, 2014 and 2013, are further described in Note 11, Restructuring Charges, and are included in the Operating income (loss) results in the Corporate & Other segment below. Consistent with presentation in the Consolidated Balance Sheets and Statements of Cash Flows, the below amounts for Assets, Capital expenditures, and Depreciation and amortization include discontinued operations for all periods presented and are included in the Corporate & Other segment. | |||||||||||||||||
(in thousands) | Flavors & Fragrances | Color | Corporate & Other | Consolidated | |||||||||||||
2014 | |||||||||||||||||
Revenue from external customers | $ | 813,808 | $ | 487,503 | $ | 146,510 | $ | 1,447,821 | |||||||||
Intersegment revenue | 33,214 | 20,574 | 229 | 54,017 | |||||||||||||
Total revenue | 847,022 | 508,077 | 146,739 | 1,501,838 | |||||||||||||
Operating income (loss) | 119,093 | 114,884 | (103,312 | ) | 130,665 | ||||||||||||
Interest expense | — | — | 16,067 | 16,067 | |||||||||||||
Earnings (loss) before income taxes from continuing operations | 119,093 | 114,884 | (119,379 | ) | 114,598 | ||||||||||||
Assets | 814,215 | 732,364 | 218,627 | 1,765,206 | |||||||||||||
Capital expenditures | 41,131 | 31,883 | 6,384 | 79,398 | |||||||||||||
Depreciation and amortization | 26,180 | 18,785 | 6,491 | 51,456 | |||||||||||||
2013 | |||||||||||||||||
Revenue from external customers | $ | 843,233 | $ | 473,811 | $ | 145,082 | $ | 1,462,126 | |||||||||
Intersegment revenue | 33,269 | 21,246 | 97 | 54,612 | |||||||||||||
Total revenue | 876,502 | 495,057 | 145,179 | 1,516,738 | |||||||||||||
Operating income (loss) | 120,278 | 107,873 | (54,371 | ) | 173,780 | ||||||||||||
Interest expense | — | — | 16,147 | 16,147 | |||||||||||||
Earnings (loss) before income taxes from continuing operations | 120,278 | 107,873 | (70,518 | ) | 157,633 | ||||||||||||
Assets | 896,335 | 761,485 | 212,914 | 1,870,734 | |||||||||||||
Capital expenditures | 59,040 | 38,639 | 6,567 | 104,246 | |||||||||||||
Depreciation and amortization | 27,435 | 17,541 | 7,040 | 52,016 | |||||||||||||
2012 | |||||||||||||||||
Revenue from external customers | $ | 835,619 | $ | 478,341 | $ | 139,595 | $ | 1,453,555 | |||||||||
Intersegment revenue | 34,428 | 22,326 | 34 | 56,788 | |||||||||||||
Total revenue | 870,047 | 500,667 | 139,629 | 1,510,343 | |||||||||||||
Operating income (loss) | 120,825 | 101,062 | (29,008 | ) | 192,879 | ||||||||||||
Interest expense | — | — | 16,901 | 16,901 | |||||||||||||
Earnings (loss) before income taxes from continuing operations | 120,825 | 101,062 | (45,909 | ) | 175,978 | ||||||||||||
Assets | 859,303 | 715,683 | 201,657 | 1,776,643 | |||||||||||||
Capital expenditures | 49,781 | 45,858 | 8,167 | 103,806 | |||||||||||||
Depreciation and amortization | 26,996 | 14,393 | 6,963 | 48,352 | |||||||||||||
Geographic Information The Company has manufacturing facilities or sales offices in North America, Europe, Asia, Australia, South America and Africa. The Company’s annual revenue from continuing operations summarized by geographic location is as follows: | |||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Revenue from external customers: | |||||||||||||||||
North America | $ | 750,345 | $ | 782,088 | $ | 783,840 | |||||||||||
Europe | 389,588 | 382,077 | 370,490 | ||||||||||||||
Asia Pacific | 193,163 | 188,917 | 197,658 | ||||||||||||||
Other | 114,725 | 109,044 | 101,567 | ||||||||||||||
Consolidated | $ | 1,447,821 | $ | 1,462,126 | $ | 1,453,555 | |||||||||||
Long-lived assets: | |||||||||||||||||
North America | $ | 537,668 | $ | 531,005 | $ | 504,483 | |||||||||||
Europe | 423,972 | 506,352 | 472,865 | ||||||||||||||
Asia Pacific | 29,948 | 32,148 | 35,891 | ||||||||||||||
Other | 14,229 | 11,404 | 12,050 | ||||||||||||||
Consolidated | $ | 1,005,817 | $ | 1,080,909 | $ | 1,025,289 | |||||||||||
Sales in the United States, based on the final country of destination of the Company’s products, were $573.6 million, $590.0 million and $596.4 million in 2014, 2013 and 2012, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $450.8 million, $389.7 million and $360.1 million at December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Product InformationThe Company’s revenue from continuing operations summarized by product portfolio is as follows: | |||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Traditional Flavors & Fragrances | $ | 724,693 | $ | 736,107 | $ | 715,227 | |||||||||||
Natural Ingredients | 227,538 | 244,155 | 252,941 | ||||||||||||||
Food & Beverage Colors | 334,565 | 307,179 | 310,639 | ||||||||||||||
Non-Food Colors | 215,042 | 229,297 | 231,536 | ||||||||||||||
Interdivision Revenue | (54,017 | ) | (54,612 | ) | (56,788 | ) | |||||||||||
Consolidated | $ | 1,447,821 | $ | 1,462,126 | $ | 1,453,555 |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2014 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 10 |
FAIR VALUE MEASUREMENTS | |
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 December 31, 2014 and 2013, the Company’s only assets and liabilities subject to this standard are forward contracts, investments in a money market fund and municipal bonds, and defined benefit plan assets (See Note 6, Retirement Plans, for additional information on the defined benefit plan assets). The net fair value of the forward exchange contracts based on current pricing obtained for comparable derivative products (Level 2 inputs) was a liability of $0.1 million at December 31, 2014 and an asset of $0.2 million at December 31, 2013. The fair value of the investments based on December 31, 2014, and 2013, market quotes (Level 1 inputs) was an asset of $1.9 million and $19.8 million, respectively. | |
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 December 31, 2014 and 2013. | |
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 December 31, 2014 and 2013, was $451.0 million and $348.1 million, respectively. The fair value of the long-term debt at December 31, 2014 and 2013, was approximately $464.5 million and $351.0 million, respectively. |
RESTRUCTURING_CHARGES
RESTRUCTURING CHARGES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
RESTRUCTURING CHARGES [Abstract] | |||||||||||||
RESTRUCTURING CHARGES | 11 | ||||||||||||
RESTRUCTURING CHARGES | |||||||||||||
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 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, approximately 100 employees were terminated as of December 31, 2014, and approximately $2.6 million of savings were recognized by December 31, 2014. | |||||||||||||
The Company determined that certain long-lived assets, including land, buildings and certain pieces of equipment associated with the identified operations were impaired. As a result, the Company has reduced the carrying amounts of these assets to approximately $35 million, their aggregate respective fair values, which were determined based on independent market valuations for these assets. Also, certain machinery and equipment has been identified to be disposed of at the time of the facility closures, and the associated depreciation has been accelerated. In addition, certain intangible assets and inventory were determined to be impaired and were written down. | |||||||||||||
For the year ended December 31, 2014, the Company recorded restructuring and other costs of $101.5 million ($73.3 million after-tax), 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 year ended December 31, 2014, related to the 2014 proxy contest. For the year ended December 31, 2013, the Company recorded restructuring costs of $31.7 million ($22.0 million after-tax) 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. Costs incurred in 2014 related to the 2013 restructuring program were 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 years ended December 31, 2014 and 2013: | |||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Flavors & Fragrances | $ | 83,871 | $ | 22,284 | |||||||||
Color | — | 7,065 | |||||||||||
Corporate & Other | 6,679 | 2,386 | |||||||||||
Total Continuing Operations | 90,550 | 31,735 | |||||||||||
Discontinued Operations | 10,998 | — | |||||||||||
Total Restructuring | $ | 101,548 | $ | 31,735 | |||||||||
The Company recorded restructuring and other charges in continuing operations for the years ended December 31, 2014 and 2013, as follows: | |||||||||||||
(in thousands) | Selling & Administrative | Cost of Products Sold | Total | ||||||||||
2014 | |||||||||||||
Employee separations | $ | 17,794 | $ | — | $ | 17,794 | |||||||
Long-lived asset impairment | 63,431 | — | 63,431 | ||||||||||
Gain on asset sales | (602 | ) | — | (602 | ) | ||||||||
Write-down of inventory | — | 1,914 | 1,914 | ||||||||||
Other costs(1) | 8,013 | — | 8,013 | ||||||||||
Total | $ | 88,636 | $ | 1,914 | $ | 90,550 | |||||||
(1)Other costs include decommissioning costs, professional services, personnel moving costs, other related costs and 2014 proxy contest costs. | |||||||||||||
(in thousands) | Selling & Administrative | Cost of Products Sold | Total | ||||||||||
2013 | |||||||||||||
Employee separations | $ | 18,081 | $ | — | $ | 18,081 | |||||||
Long-lived asset impairment | 4,176 | — | 4,176 | ||||||||||
Gain on asset sales | (3,019 | ) | — | (3,019 | ) | ||||||||
Write-down of inventory | — | 1,840 | 1,840 | ||||||||||
Other costs(2) | 10,657 | — | 10,657 | ||||||||||
Total | $ | 29,895 | $ | 1,840 | $ | 31,735 | |||||||
(2)Other costs include decommissioning costs, professional services, personnel (other than employee separations) and moving related costs. | |||||||||||||
The Company expects to incur approximately $21 million to $31 million of additional restructuring costs by the end of 2016, consisting primarily of employee separations, asset impairments, and other restructuring related costs. | |||||||||||||
Activities impacting the Company’s reserve for restructuring and other charges for the years ended December 31, 2014 and 2013 were as follows: | |||||||||||||
(in thousands) | Employee Separations | Assets Related and Other | Total | ||||||||||
Balance as of December 31, 2012 | $ | — | $ | — | $ | — | |||||||
Restructuring and other costs | 18,081 | 13,654 | 31,735 | ||||||||||
Gain on sale of assets | — | 3,019 | 3,019 | ||||||||||
Cash spent | (13,505 | ) | (9,069 | ) | (22,574 | ) | |||||||
Reduction of assets | — | (6,016 | ) | (6,016 | ) | ||||||||
Translation adjustment | (14 | ) | — | (14 | ) | ||||||||
Balance as of December 31, 2013 | $ | 4,562 | $ | 1,588 | $ | 6,150 | |||||||
Restructuring and other costs | 18,951 | 82,597 | 101,548 | ||||||||||
Gain on sale of assets | — | 602 | 602 | ||||||||||
Cash spent | (7,067 | ) | (8,773 | ) | (15,840 | ) | |||||||
Reduction of assets | — | (75,117 | ) | (75,117 | ) | ||||||||
Translation adjustment | (1,537 | ) | — | (1,537 | ) | ||||||||
Balance as of December 31, 2014 | $ | 14,909 | $ | 897 | $ | 15,806 | |||||||
These reserves are classified as current liabilities in the Consolidated Balance Sheets. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended | ||||||||||||
Dec. 31, 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. The Company determined that as of September 30, 2014, 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 Statements of Earnings for all periods presented. The corresponding assets, which include property, plant, and equipment, have met the held for sale criteria and have been properly presented on the Consolidated Balance Sheets. | |||||||||||||
The following table summarizes the discontinued operation’s results, which are included in the loss from discontinued operations in the Consolidated Statements of Earnings for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Net sales | $ | 5,197 | $ | 5,424 | $ | 5,495 | |||||||
Loss from discontinued operations before income taxes | (11,496 | ) | (1,418 | ) | (1,671 | ) | |||||||
Income tax benefit | 3,371 | 415 | 497 | ||||||||||
Loss from discontinued operations, net of tax | $ | (8,125 | ) | $ | (1,003 | ) | $ | (1,174 | ) | ||||
Included in the loss before income taxes from discontinued operations are pre-tax restructuring costs of $11.0 million for the year ended December 31, 2014. See Note 11, Restructuring Charges, for additional information. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 13 |
COMMITMENTS AND CONTINGENCIES | |
Leases | |
The Company leases certain facilities and equipment under operating lease arrangements. Aggregate minimum rental commitments at December 31, 2014, for all noncancelable operating leases with an initial lease term greater than one year for the years ending December 31 are as follows: 2015, $7.7 million; 2016, $4.3 million; 2017, $2.5 million; 2018, $1.8 million; 2019, $1.4 and $1.8 million thereafter. | |
Rent expense from continuing operations totaled $10.7 million, $10.6 million and $10.7 million during the years ended December 31, 2014, 2013 and 2012, respectively. | |
Litigation and Other Claims | |
The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period. |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | Schedule II | ||||||||||||||||||||
Valuation and Qualifying Accounts (in thousands); Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||||||||||
Valuation Accounts Deducted in the Balance Sheet From the Assets to Which They Apply | Balance | Additions | Additions | Deductions | Balance at | ||||||||||||||||
at Beginning | Charged to | Recorded | (A) | End of | |||||||||||||||||
of Period | Costs and | During | Period | ||||||||||||||||||
Expenses | Acquisitions | ||||||||||||||||||||
2012 | $ | 3,588 | $ | 745 | $ | 0 | $ | 1,288 | $ | 3,045 | |||||||||||
Allowance for losses: | |||||||||||||||||||||
Trade accounts receivable | |||||||||||||||||||||
2013 | $ | 3,045 | $ | 1,413 | $ | 0 | $ | 130 | $ | 4,327 | |||||||||||
Allowance for losses: | |||||||||||||||||||||
Trade accounts receivable | |||||||||||||||||||||
2014 | $ | 4,327 | $ | 896 | $ | 0 | $ | 1,385 | $ | 3,838 | |||||||||||
Allowance for losses: | |||||||||||||||||||||
Trade accounts receivable | |||||||||||||||||||||
(A) Accounts written off, net of recoveries. | |||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||
Nature of Operations | Nature of Operations Sensient Technologies Corporation, together with its subsidiaries (the “Company”), is a leading global manufacturer and marketer of colors, flavors and fragrances. The Company uses advanced technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, specialty inks and colors, and other specialty and fine chemicals. The Company’s reportable segments consist of the Flavors & Fragrances and Color Groups, which are managed on a products and services basis. The Asia Pacific Group and certain of the Company’s flavor businesses in Central and South America (Flavors Central & South America), which are managed on a geographic basis, are included in Corporate & Other. | ||||||||||||
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||
The results of operations for one of the Company’s business units within the Color Group have been reported as a discontinued operation for all periods presented. The corresponding assets have been reclassified in accordance with the authoritative literature on assets held for sale as of December 31, 2014. See Note 12, Discontinued Operations, for further information regarding discontinued operations. | |||||||||||||
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets, liabilities, revenue and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. | ||||||||||||
Revenue Recognition | Revenue Recognition The Company recognizes revenue (net of estimated discounts, allowances and returns) when title to goods passes, the customer is obligated to pay the Company and the Company has no remaining obligations. Such recognition typically corresponds with the shipment of goods. | ||||||||||||
Cost of Products Sold | Cost of Products Sold Cost of products sold includes materials, labor and overhead expenses incurred in the manufacture of our products. Cost of products sold also includes charges for obsolete and slow moving inventories, as well as costs for quality control, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, other costs of our internal distribution network and costs incurred for shipping and handling. The Company records fees billed to customers for shipping and handling as revenue. | ||||||||||||
Selling and Administrative Expenses | Selling and Administrative Expenses Selling and administrative expenses primarily include the salaries and related costs for executive, finance, accounting, human resources, information technology, research and development and legal personnel as well as salaries and related costs of salespersons and commissions paid to external sales agents. | ||||||||||||
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents. | ||||||||||||
Accounts Receivable | Accounts Receivable Receivables are recorded at their face amount, less an allowance for doubtful accounts. The allowance for doubtful accounts is based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Specific accounts are written off against the allowance for doubtful accounts when it is deemed that the receivable is no longer collectible. | ||||||||||||
Inventories | Inventories Inventories are stated at the lower of cost or market. Market is determined on the basis of estimated realizable values. Cost is determined using the first-in, first-out (“FIFO”) method with the exception of certain locations of the Flavors & Fragrances Group where cost is determined using a weighted average method. Inventories include finished and in-process products totaling $308.7 million and $317.1 million at December 31, 2014 and 2013, respectively, and raw materials and supplies of $140.7 million and $157.4 million at December 31, 2014 and 2013, respectively. | ||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost reduced by accumulated depreciation. Depreciation is provided over the estimated useful life of the related asset using the straight-line method for financial reporting. The estimated useful lives for buildings and leasehold improvements range from 5 to 40 years. Machinery and equipment have estimated useful lives ranging from 3 to 20 years. Interest costs on significant projects constructed or developed for the Company’s own use are capitalized as part of the asset. | ||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The carrying value of goodwill is evaluated for impairment on an annual basis or more frequently when an indicator of impairment occurs. The impairment assessment includes comparing the carrying amount of net assets, including goodwill, of each reporting unit to its respective fair value as of the date of the assessment. Fair value was estimated based upon an evaluation of the reporting unit’s estimated future discounted cash flow as well as the public trading and private transaction valuation multiples for comparable companies. Such determination of fair value yielded no impairment in 2014, 2013 or 2012. | ||||||||||||
The cost of intangible assets with determinable useful lives is amortized on a straight-line basis to reflect the pattern of economic benefits consumed, ranging from 5 to 20 years. These assets include technological know-how, customer relationships, patents, trademarks and non-compete agreements, among others. | |||||||||||||
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if potential impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on the difference between fair value and carrying value. Impairment losses were recorded as a result of the Company’s 2014 Restructuring Plan and 2013 restructuring plan. See Note 11, Restructuring Charges, for additional information. | ||||||||||||
Financial Instruments | Financial Instruments The Company may use derivative financial instruments for the purpose of hedging currency and interest rate exposures which exist as part of ongoing business operations. As a policy, the Company does not engage in speculative or leveraged transactions, nor does the Company hold or issue financial instruments for trading purposes. | ||||||||||||
Hedge effectiveness is determined by how closely the changes in the fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged item. Hedge accounting is permitted only if the hedging relationship is expected to be highly effective at the inception of the transaction and on an ongoing basis. Any ineffective portions are recognized in earnings immediately. | |||||||||||||
Interest Rate Hedging | Interest Rate Hedging The Company is exposed to interest rate risk through its corporate borrowing activities. The objective of the Company’s interest rate risk management activities is to manage the levels of the Company’s fixed and floating interest rate exposure to be consistent with the Company’s preferred mix. The interest rate risk management program may include entering into interest rate swaps, which qualify as fair value hedges, when there is a desire to modify the Company’s exposure to interest rates. Gains or losses on fair value hedges are recognized in earnings, net of gains and losses on the fair value of the hedged instruments. | ||||||||||||
Cash Flow Hedges | Cash Flow Hedges The primary objectives of the foreign exchange risk management activities are to understand and mitigate the impact of potential foreign exchange fluctuations on the Company’s financial results and its economic well-being. Generally, these risk management transactions involve the use of foreign currency derivatives to protect against exposure resulting from recorded accounts receivable and payable. The Company may utilize forward exchange contracts, generally with maturities of less than 12 months, which qualify as cash flow hedges. These foreign exchange contracts are intended to offset the effect of exchange rate fluctuations on recorded intercompany receivables and payables. Gains and losses on these instruments are deferred in accumulated other comprehensive (loss) income (“OCI”) until the underlying transaction is recognized in earnings. | ||||||||||||
The Company’s existing cash flow hedges are highly effective. As a result, any current impact on earnings due to cash flow hedge ineffectiveness is immaterial. | |||||||||||||
Net Investments Hedging | Net Investments Hedging The Company may enter into foreign-denominated debt to be used as a non-derivative instrument to hedge the Company’s net investment in foreign subsidiaries. The change in the carrying amount of the foreign-denominated debt on the Company’s books, attributable to changes in the spot foreign exchange rate, is a hedge of the net investment in its foreign subsidiaries. Changes in the fair value of debt designated as a net investment hedge are recorded in foreign currency translation in OCI. | ||||||||||||
Commodity Purchases | Commodity Purchases The Company purchases certain commodities in the normal course of business that result in physical delivery of the goods and, hence, are excluded from Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging. | ||||||||||||
Translation of Foreign Currencies | Translation of Foreign Currencies For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of foreign operations are translated into U.S. dollars at current exchange rates. Revenue and expense accounts are translated into U.S. dollars at average exchange rates prevailing during the year. Adjustments resulting from the translation of foreign accounts into U.S. dollars are recorded in foreign currency translation in OCI. Transaction gains and losses that occur as a result of transactions denominated in non-functional currencies are included in earnings and were not significant during the three-year period ended December 31, 2014. | ||||||||||||
Share-Based Compensation | Share-Based Compensation Share-based compensation expense is recognized over the vesting period of each award based on the fair value of the instrument at the time of grant as summarized in Note 5, Share-Based Compensation. | ||||||||||||
Income Taxes | Income Taxes The Company recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax liability or asset for the estimated future tax effects attributable to temporary differences and carryforwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Deferred tax assets are reduced, if necessary, by the amount of any tax benefits for which the utilization of the asset is not considered likely. | ||||||||||||
Earnings Per Share | Earnings Per Share The difference between basic and diluted earnings per share (“EPS”) is the dilutive effect of stock options and non-vested stock. Diluted EPS assumes that non-vested stock has vested and all dilutive stock options, for which the average market price exceeds the exercise price (in-the-money), are exercised. Stock options for which the exercise price exceeds the average market price (out-of-the-money) have an anti-dilutive effect on EPS, and accordingly, are excluded from the calculation. | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the years ended December 31: | |||||||||||||
(in thousands except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Numerator: | |||||||||||||
Net earnings from continuing operations | $ | 81,771 | $ | 114,298 | $ | 125,082 | |||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share-weighted average common shares | 48,525 | 49,755 | 49,596 | ||||||||||
Effect of dilutive securities | 294 | 179 | 226 | ||||||||||
Denominator for diluted earnings per share-adjusted weighted average shares outstanding | 48,819 | 49,934 | 49,822 | ||||||||||
Earnings per common share from continuing operations | |||||||||||||
Basic | $ | 1.69 | $ | 2.3 | $ | 2.52 | |||||||
Diluted | $ | 1.67 | $ | 2.29 | $ | 2.51 | |||||||
The Company has a share-based compensation plan under which employees may be granted share-based awards in which non-forfeitable dividends are paid on non-vested shares for certain awards. As such, these shares are considered participating securities under the two-class method of calculating EPS as described in ASC Topic 260, Earnings per Share. The two-class method of calculating EPS did not have a material impact on the Company’s EPS calculations as of December 31, 2014, 2013 and 2012. | |||||||||||||
In 2014, 2013 and 2012, there were no anti-dilutive stock options. All EPS amounts are presented on a diluted basis unless otherwise noted. | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Accumulated OCI is composed primarily of foreign currency translation, pension liability and unrealized gains or losses on cash flow hedges. See Note 7, Accumulated Other Comprehensive Income, for additional information. | ||||||||||||
Research and Development | Research and Development Research and development costs are recorded in selling and administrative expenses in the year they are incurred. Research and development costs related to continuing operations were $35.9 million, $34.1 million and $34.2 million during the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Advertising | Advertising Advertising costs are recorded in selling and administrative expenses as they are incurred. Advertising costs related to continuing operations were $1.9 million, $1.6 million and $2.2 million during the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Environmental Liabilities | Environmental Liabilities The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and reasonably estimable. Such accruals are adjusted as further information becomes available or as circumstances change. Estimated future expenditures are discounted to their present value when the timing and amount of future cash flows are fixed and readily determinable. Recoveries of remediation costs from other parties, if any, are recognized as assets when their receipt is assured. | ||||||||||||
Subsequent Events | Subsequent Events The Company performed an evaluation of subsequent events through the date these financial statements were issued and no such events were identified. | ||||||||||||
New Pronouncements | New Pronouncements 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 Financial Accounting Standards Board (“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 ASC 205-20, “Discontinued Operations” 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 this guidance 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. The Company is currently evaluating the expected impact of this new standard. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||
Weighted-average common shares for the computation of EPS | The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the years ended December 31: | ||||||||||||
(in thousands except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Numerator: | |||||||||||||
Net earnings from continuing operations | $ | 81,771 | $ | 114,298 | $ | 125,082 | |||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share-weighted average common shares | 48,525 | 49,755 | 49,596 | ||||||||||
Effect of dilutive securities | 294 | 179 | 226 | ||||||||||
Denominator for diluted earnings per share-adjusted weighted average shares outstanding | 48,819 | 49,934 | 49,822 | ||||||||||
Earnings per common share from continuing operations | |||||||||||||
Basic | $ | 1.69 | $ | 2.3 | $ | 2.52 | |||||||
Diluted | $ | 1.67 | $ | 2.29 | $ | 2.51 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||
Schedule of intangible assets | The following table summarizes intangible assets with determinable useful lives by major category as of December 31, 2014 and 2013: | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(in thousands except weighted average amortization years) | Weighted Average Amortization Years | Cost | Accumulated Amortization | Cost | Accumulated Amortization | ||||||||||||||||
Technological know-how | 20 | $ | 6,459 | $ | (4,352 | ) | $ | 8,606 | $ | (5,328 | ) | ||||||||||
Customer relationships | 20 | 6,938 | (4,170 | ) | 7,944 | (4,359 | ) | ||||||||||||||
Patents, trademarks, non-compete agreements and other | 19.2 | 9,753 | (5,868 | ) | 9,630 | (5,947 | ) | ||||||||||||||
Total finite-lived intangibles | 19.7 | $ | 23,150 | $ | (14,390 | ) | $ | 26,180 | $ | (15,634 | ) | ||||||||||
Changes in goodwill by business segment | The changes in goodwill for the years ended December 31, 2014 and 2013, by reportable business segment, were as follows: | ||||||||||||||||||||
(in thousands) | Flavors & Fragrances | Color | Corporate & Other | Consolidated | |||||||||||||||||
Balance as of December 31, 2012 | $ | 135,784 | $ | 311,650 | $ | 3,884 | $ | 451,318 | |||||||||||||
Currency translation impact | 853 | 5,673 | (575 | ) | 5,951 | ||||||||||||||||
Balance as of December 31, 2013 | $ | 136,637 | $ | 317,323 | $ | 3,309 | $ | 457,269 | |||||||||||||
Currency translation impact | (10,614 | ) | (22,050 | ) | (333 | ) | (32,997 | ) | |||||||||||||
Impairment | — | (158 | ) | — | (158 | ) | |||||||||||||||
Balance as of December 31, 2014 | $ | 126,023 | $ | 295,115 | $ | 2,976 | $ | 424,114 |
DEBT_Tables
DEBT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
DEBT [Abstract] | |||||||||
Long-term debt | Long-term debt consisted of the following unsecured obligations at December 31: | ||||||||
(in thousands) | 2014 | 2013 | |||||||
3.66% senior notes due November 2023 | $ | 75,000 | $ | 75,000 | |||||
3.06% Euro-denominated senior notes due November 2023 | 46,270 | 52,566 | |||||||
4.47% senior notes due November 2018 | 25,000 | 25,000 | |||||||
4.14% senior notes due November 2017 | 25,000 | 25,000 | |||||||
4.91% senior notes due through May 2017 | 88,000 | 99,000 | |||||||
3.77% senior notes due November 2016 | 25,000 | 25,000 | |||||||
Term loan | 98,750 | — | |||||||
Long-term revolving loan agreement | 65,987 | 43,982 | |||||||
Various other notes | 2,004 | 2,576 | |||||||
451,011 | 348,124 | ||||||||
Less current maturities | — | — | |||||||
Total long-term debt | $ | 451,011 | $ | 348,124 | |||||
Restrictive loan covenants | The following table summarizes the Company’s most restrictive loan covenants calculated in accordance with the applicable agreements as of December 31, 2014: | ||||||||
(dollars in thousands) | Actual | Required | |||||||
Debt to EBITDA (Maximum) | 1.74 | 3.5 | |||||||
Net Worth (Minimum) | $ | 1,046,935 | $ | 625,000 | |||||
Interest Coverage (Minimum) | 8.64 | 2 | |||||||
Short-term borrowings | The Company’s short-term borrowings consisted of the following items at December 31: | ||||||||
(in thousands) | 2014 | 2013 | |||||||
Uncommitted loans | $ | 14,086 | $ | 4,600 | |||||
Loans of foreign subsidiaries | 1,802 | 2,450 | |||||||
Total | $ | 15,888 | $ | 7,050 |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SHARE-BASED COMPENSATION [Abstract] | |||||||||||||||||
Summary of transaction involving stock options | The following table summarizes the transactions involving the Company’s stock option plans: | ||||||||||||||||
(in thousands except exercise price and life) | Options | Weighted Average Exercise Price | Weighted Average Remaining Life (Years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding at December 31, 2011 | 207 | $ | 22.36 | 3.1 | $ | 3,222 | |||||||||||
Exercised | (66 | ) | 22.38 | ||||||||||||||
Outstanding at December 31, 2012 | 141 | 22.35 | 2.7 | 1,859 | |||||||||||||
Exercised | (48 | ) | 21 | ||||||||||||||
Outstanding at December 31, 2013 | 93 | 23.04 | 2.2 | 2,374 | |||||||||||||
Exercised | (27 | ) | 21.92 | ||||||||||||||
Outstanding at December 31, 2014 | 66 | $ | 23.49 | 1.7 | $ | 2,438 | |||||||||||
Exercisable at December 31, 2014 | 66 | $ | 23.49 | 1.7 | $ | 2,438 | |||||||||||
Summary of information concerning outstanding and exercisable stock options | The following table summarizes information concerning outstanding and exercisable stock options at December 31, 2014: | ||||||||||||||||
Range of Exercise Price | |||||||||||||||||
(in thousands except life and exercise price) | $ | 18.57-23.08 | $ | 23.09-26.11 | $ | 26.12-30.07 | |||||||||||
Options outstanding | 25 | 20 | 21 | ||||||||||||||
Weighted average remaining contractual life, in years | 1.1 | 1.3 | 2.8 | ||||||||||||||
Weighted average exercise price | $ | 19.34 | $ | 23.86 | $ | 28.16 | |||||||||||
Options exercisable | 25 | 20 | 21 | ||||||||||||||
Weighted average exercise price | $ | 19.34 | $ | 23.86 | $ | 28.16 | |||||||||||
Summary of nonvested stock and performance unit activity | The following table summarizes the non-vested stock and performance stock unit activity: | ||||||||||||||||
(in thousands except fair value) | Shares | Grant Date Weighted Average Fair Value | Aggregate Intrinsic Value | ||||||||||||||
Outstanding at December 31, 2011 | 400 | $ | 31.42 | $ | 15,142 | ||||||||||||
Granted | 293 | 36.09 | |||||||||||||||
Vested | (314 | ) | 33.59 | ||||||||||||||
Cancelled | (40 | ) | 33.41 | ||||||||||||||
Outstanding at December 31, 2012 | 339 | 33.22 | 12,046 | ||||||||||||||
Granted | 262 | 46.14 | |||||||||||||||
Vested | (94 | ) | 40.57 | ||||||||||||||
Cancelled | (10 | ) | 42.22 | ||||||||||||||
Outstanding at December 31, 2013 | 497 | 38.46 | 24,095 | ||||||||||||||
Granted | 171 | 55.21 | |||||||||||||||
Vested | (40 | ) | 27.15 | ||||||||||||||
Cancelled | (24 | ) | 40.84 | ||||||||||||||
Outstanding at December 31, 2014 | 604 | $ | 43.84 | $ | 36,454 |
RETIREMENT_PLANS_Tables
RETIREMENT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
RETIREMENT PLANS [Abstract] | |||||||||||||||||||||||||||||||||
Funded status of defined benefit plan | The funded status of the defined benefit plans was as follows at December 31: | ||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 72,582 | $ | 76,957 | |||||||||||||||||||||||||||||
Service cost | 2,523 | 3,260 | |||||||||||||||||||||||||||||||
Interest cost | 2,390 | 2,557 | |||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | (1,889 | ) | (703 | ) | |||||||||||||||||||||||||||||
Benefits paid | (23,726 | ) | (5,194 | ) | |||||||||||||||||||||||||||||
Actuarial loss (gain) | 5,858 | (4,295 | ) | ||||||||||||||||||||||||||||||
Curtailment gain | (2,342 | ) | — | ||||||||||||||||||||||||||||||
Benefit obligation at end of year | 55,396 | 72,582 | |||||||||||||||||||||||||||||||
Plan assets at beginning of year | 37,122 | 35,141 | |||||||||||||||||||||||||||||||
Company contributions | 22,402 | 5,701 | |||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | (2,379 | ) | (539 | ) | |||||||||||||||||||||||||||||
Benefits paid | (23,726 | ) | (5,258 | ) | |||||||||||||||||||||||||||||
Actual gain on plan assets | 6,101 | 2,077 | |||||||||||||||||||||||||||||||
Plan assets at end of year | 39,520 | 37,122 | |||||||||||||||||||||||||||||||
Funded status | $ | (15,876 | ) | $ | (35,460 | ) | |||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 54,435 | $ | 68,391 | |||||||||||||||||||||||||||||
Amount recognized in the consolidated balance sheet | Amounts recognized in the Consolidated Balance Sheets at December 31: | ||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Accrued employee and retiree benefits | $ | (18,258 | ) | $ | (21,206 | ) | |||||||||||||||||||||||||||
Other accrued expenses | (7,263 | ) | (19,144 | ) | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets | 9,645 | 4,890 | |||||||||||||||||||||||||||||||
Net liability | $ | (15,876 | ) | $ | (35,460 | ) | |||||||||||||||||||||||||||
Components of annual benefit cost | Components of annual benefit cost: | ||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Service cost | $ | 2,523 | $ | 3,260 | $ | 2,583 | |||||||||||||||||||||||||||
Interest cost | 2,390 | 2,557 | 2,659 | ||||||||||||||||||||||||||||||
Expected return on plan assets | (1,791 | ) | (1,689 | ) | (1,428 | ) | |||||||||||||||||||||||||||
Amortization of prior service cost | 171 | 172 | 1,971 | ||||||||||||||||||||||||||||||
Recognized actuarial (gain) loss | (305 | ) | 3,203 | 799 | |||||||||||||||||||||||||||||
Settlement expense | 1,467 | 1,177 | — | ||||||||||||||||||||||||||||||
Curtailment gain | (754 | ) | — | — | |||||||||||||||||||||||||||||
Defined benefit expense | $ | 3,701 | $ | 8,680 | $ | 6,584 | |||||||||||||||||||||||||||
Summary of weighted average assumptions | Weighted average liability assumptions as of December 31: | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Discount rate | 3.7 | % | 3.91 | % | |||||||||||||||||||||||||||||
Expected return on plan assets | 3.32 | % | 5.12 | % | |||||||||||||||||||||||||||||
Rate of compensation increase | 0.37 | % | 4.59 | % | |||||||||||||||||||||||||||||
Weighted average cost assumptions for the year ended December 31: | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Discount rate | 3.91 | % | 3.27 | % | |||||||||||||||||||||||||||||
Expected return on plan assets | 5.12 | % | 4.76 | % | |||||||||||||||||||||||||||||
Rate of compensation increase | 4.59 | % | 4.01 | % | |||||||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive income | Amounts in accumulated other comprehensive income at December 31 were as follows: | ||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Prior service cost | $ | — | $ | 1,182 | |||||||||||||||||||||||||||||
Unrecognized net actuarial loss | 7,407 | 7,944 | |||||||||||||||||||||||||||||||
Pension adjustments recognized in accumulated other comprehensive income | The pension adjustments, net of tax, recognized in OCI, were as follows: | ||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net actuarial (loss) gain arising during the period | $ | (387 | ) | $ | 3,180 | $ | (3,947 | ) | |||||||||||||||||||||||||
Amortization of actuarial loss, included in defined benefit expense | 1,252 | 2,006 | 526 | ||||||||||||||||||||||||||||||
Amortization of prior service cost, included in defined benefit expense | 733 | 108 | 1,205 | ||||||||||||||||||||||||||||||
Pension adjustment, net of tax | $ | 1,598 | $ | 5,294 | $ | (2,216 | ) | ||||||||||||||||||||||||||
Pension plan assets by asset category | The following table presents the Company’s pension plan assets by asset category as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
Fair value as of December 31, | Fair Value Measurements at December 31, 2014 Using Fair Value Hierarchy | Fair Value as of December 31, | Fair Value Measurements at December 31, 2013 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||
(in thousands) | 2014 | Level 1 | Level 2 | Level 3 | 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Equity Funds | |||||||||||||||||||||||||||||||||
Domestic | $ | 6,424 | $ | 6,424 | $ | — | $ | — | $ | 6,143 | $ | 6,143 | $ | — | $ | — | |||||||||||||||||
International | 242 | — | 242 | — | 7,294 | — | 7,294 | — | |||||||||||||||||||||||||
International Fixed Income Funds | 22,710 | 960 | 21,750 | — | 23,162 | 1,186 | 21,976 | — | |||||||||||||||||||||||||
Other investments | 10,144 | 38 | 10,106 | — | 523 | 40 | 483 | — | |||||||||||||||||||||||||
Total assets at fair value | $ | 39,520 | $ | 7,422 | $ | 32,098 | $ | — | $ | 37,122 | $ | 7,369 | $ | 29,753 | $ | — |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | |||||||||||||||||
Changes in Accumulated Other Comprehensive Income | The following tables summarize the changes in OCI for 2014: | ||||||||||||||||
(in thousands) | Cash Flow Hedges(a) | Pension Items(a) | Foreign Currency Items | Total | |||||||||||||
Balance as of December 31, 2013 | $ | (99 | ) | $ | (6,768 | ) | $ | 12,869 | $ | 6,002 | |||||||
Other comprehensive income before reclassifications | 554 | (387 | ) | (93,151 | ) | (92,984 | ) | ||||||||||
Amounts reclassified from OCI | (131 | ) | 1,985 | — | 1,854 | ||||||||||||
Balance as of December 31, 2014 | $ | 324 | $ | (5,170 | ) | $ | (80,282 | ) | $ | (85,128 | ) | ||||||
(a) Cash Flow Hedges and Pension Items are net of tax. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INCOME TAXES [Abstract] | |||||||||||||
Provision for income taxes | The provision for income taxes for continuing operations was as follows: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Currently payable: | |||||||||||||
Federal | $ | 18,642 | $ | 21,252 | $ | 22,394 | |||||||
State | 2,264 | 3,065 | 3,024 | ||||||||||
Foreign | 25,435 | 25,175 | 22,670 | ||||||||||
46,341 | 49,492 | 48,088 | |||||||||||
Deferred (benefit) expense: | |||||||||||||
Federal | 1,532 | (5,125 | ) | 170 | |||||||||
State | (935 | ) | 502 | 603 | |||||||||
Foreign | (14,111 | ) | (1,534 | ) | 2,035 | ||||||||
(13,514 | ) | (6,157 | ) | 2,808 | |||||||||
Income taxes | $ | 32,827 | $ | 43,335 | $ | 50,896 | |||||||
Tax effects of temporary differences - Deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following: | ||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Benefit plans | $ | 15,507 | $ | 21,148 | |||||||||
Liabilities and reserves | 19,384 | 11,499 | |||||||||||
Operating loss and credit carryovers | 57,128 | 51,292 | |||||||||||
Other | 6,872 | 17,151 | |||||||||||
Gross deferred tax assets | 98,891 | 101,090 | |||||||||||
Valuation allowance | (43,055 | ) | (43,048 | ) | |||||||||
Deferred tax assets | 55,836 | 58,042 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | (1,619 | ) | (21,139 | ) | |||||||||
Other assets | (1,462 | ) | (1,411 | ) | |||||||||
Goodwill | (28,583 | ) | (28,573 | ) | |||||||||
Other | (1,426 | ) | (3,168 | ) | |||||||||
Deferred tax liabilities | (33,090 | ) | (54,291 | ) | |||||||||
Net deferred tax assets | $ | 22,746 | $ | 3,751 | |||||||||
Effective income tax rate reconciliation | The effective tax rate for continuing operations differed from the statutory federal income tax rate of 35% as described below: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Taxes at statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal income tax benefit | 1.9 | 1.1 | 1.5 | ||||||||||
Tax credits | (0.4 | ) | (0.3 | ) | — | ||||||||
Taxes on foreign earnings | (4.7 | ) | (5.3 | ) | (4.1 | ) | |||||||
Resolution of prior years’ tax matters | (0.6 | ) | (0.7 | ) | (1.4 | ) | |||||||
U.S. manufacturing deduction | (2.0 | ) | (1.6 | ) | (1.8 | ) | |||||||
Valuation allowance adjustments | 0.2 | (0.8 | ) | (0.5 | ) | ||||||||
Other, net | (0.8 | ) | 0.1 | 0.2 | |||||||||
Effective tax rate | 28.6 | % | 27.5 | % | 28.9 | % | |||||||
Earnings before income taxes | Earnings from continuing operations before income taxes were as follows: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
United States | $ | 56,211 | $ | 55,461 | $ | 79,118 | |||||||
Foreign | 58,387 | 102,172 | 96,860 | ||||||||||
Total | $ | 114,598 | $ | 157,633 | $ | 175,978 | |||||||
Reconciliation of the change in liability for unrecognized tax benefits | A reconciliation of the change in the liability for unrecognized tax benefits for 2014 and 2013 is as follows: | ||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Balance at beginning of year | $ | 5,295 | $ | 7,091 | |||||||||
Increases for tax positions taken in the current year | 718 | 818 | |||||||||||
Increases for tax positions taken in prior years | 10,238 | 875 | |||||||||||
Decreases related to settlements with tax authorities | (1,044 | ) | (3,113 | ) | |||||||||
Decreases as a result of lapse of the applicable statutes of limitations | (751 | ) | (374 | ) | |||||||||
Foreign currency exchange rate changes | (516 | ) | (2 | ) | |||||||||
Balance at the end of year | $ | 13,940 | $ | 5,295 |
SEGMENT_AND_GEOGRAPHIC_INFORMA1
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION [Abstract] | |||||||||||||||||
Segment Disclosure | Consistent with presentation in the Consolidated Balance Sheets and Statements of Cash Flows, the below amounts for Assets, Capital expenditures, and Depreciation and amortization include discontinued operations for all periods presented and are included in the Corporate & Other segment. | ||||||||||||||||
(in thousands) | Flavors & Fragrances | Color | Corporate & Other | Consolidated | |||||||||||||
2014 | |||||||||||||||||
Revenue from external customers | $ | 813,808 | $ | 487,503 | $ | 146,510 | $ | 1,447,821 | |||||||||
Intersegment revenue | 33,214 | 20,574 | 229 | 54,017 | |||||||||||||
Total revenue | 847,022 | 508,077 | 146,739 | 1,501,838 | |||||||||||||
Operating income (loss) | 119,093 | 114,884 | (103,312 | ) | 130,665 | ||||||||||||
Interest expense | — | — | 16,067 | 16,067 | |||||||||||||
Earnings (loss) before income taxes from continuing operations | 119,093 | 114,884 | (119,379 | ) | 114,598 | ||||||||||||
Assets | 814,215 | 732,364 | 218,627 | 1,765,206 | |||||||||||||
Capital expenditures | 41,131 | 31,883 | 6,384 | 79,398 | |||||||||||||
Depreciation and amortization | 26,180 | 18,785 | 6,491 | 51,456 | |||||||||||||
2013 | |||||||||||||||||
Revenue from external customers | $ | 843,233 | $ | 473,811 | $ | 145,082 | $ | 1,462,126 | |||||||||
Intersegment revenue | 33,269 | 21,246 | 97 | 54,612 | |||||||||||||
Total revenue | 876,502 | 495,057 | 145,179 | 1,516,738 | |||||||||||||
Operating income (loss) | 120,278 | 107,873 | (54,371 | ) | 173,780 | ||||||||||||
Interest expense | — | — | 16,147 | 16,147 | |||||||||||||
Earnings (loss) before income taxes from continuing operations | 120,278 | 107,873 | (70,518 | ) | 157,633 | ||||||||||||
Assets | 896,335 | 761,485 | 212,914 | 1,870,734 | |||||||||||||
Capital expenditures | 59,040 | 38,639 | 6,567 | 104,246 | |||||||||||||
Depreciation and amortization | 27,435 | 17,541 | 7,040 | 52,016 | |||||||||||||
2012 | |||||||||||||||||
Revenue from external customers | $ | 835,619 | $ | 478,341 | $ | 139,595 | $ | 1,453,555 | |||||||||
Intersegment revenue | 34,428 | 22,326 | 34 | 56,788 | |||||||||||||
Total revenue | 870,047 | 500,667 | 139,629 | 1,510,343 | |||||||||||||
Operating income (loss) | 120,825 | 101,062 | (29,008 | ) | 192,879 | ||||||||||||
Interest expense | — | — | 16,901 | 16,901 | |||||||||||||
Earnings (loss) before income taxes from continuing operations | 120,825 | 101,062 | (45,909 | ) | 175,978 | ||||||||||||
Assets | 859,303 | 715,683 | 201,657 | 1,776,643 | |||||||||||||
Capital expenditures | 49,781 | 45,858 | 8,167 | 103,806 | |||||||||||||
Depreciation and amortization | 26,996 | 14,393 | 6,963 | 48,352 | |||||||||||||
Geographical Information | The Company’s annual revenue from continuing operations summarized by geographic location is as follows: | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Revenue from external customers: | |||||||||||||||||
North America | $ | 750,345 | $ | 782,088 | $ | 783,840 | |||||||||||
Europe | 389,588 | 382,077 | 370,490 | ||||||||||||||
Asia Pacific | 193,163 | 188,917 | 197,658 | ||||||||||||||
Other | 114,725 | 109,044 | 101,567 | ||||||||||||||
Consolidated | $ | 1,447,821 | $ | 1,462,126 | $ | 1,453,555 | |||||||||||
Long-lived assets: | |||||||||||||||||
North America | $ | 537,668 | $ | 531,005 | $ | 504,483 | |||||||||||
Europe | 423,972 | 506,352 | 472,865 | ||||||||||||||
Asia Pacific | 29,948 | 32,148 | 35,891 | ||||||||||||||
Other | 14,229 | 11,404 | 12,050 | ||||||||||||||
Consolidated | $ | 1,005,817 | $ | 1,080,909 | $ | 1,025,289 | |||||||||||
Product Information | The Company’s revenue from continuing operations summarized by product portfolio is as follows: | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Traditional Flavors & Fragrances | $ | 724,693 | $ | 736,107 | $ | 715,227 | |||||||||||
Natural Ingredients | 227,538 | 244,155 | 252,941 | ||||||||||||||
Food & Beverage Colors | 334,565 | 307,179 | 310,639 | ||||||||||||||
Non-Food Colors | 215,042 | 229,297 | 231,536 | ||||||||||||||
Interdivision Revenue | (54,017 | ) | (54,612 | ) | (56,788 | ) | |||||||||||
Consolidated | $ | 1,447,821 | $ | 1,462,126 | $ | 1,453,555 |
RESTRUCTURING_CHARGES_Tables
RESTRUCTURING CHARGES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
RESTRUCTURING CHARGES [Abstract] | |||||||||||||
Restructuring cost by segment | The following table summarizes the restructuring and other costs by segment and discontinued operations for the years ended December 31, 2014 and 2013: | ||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||
Flavors & Fragrances | $ | 83,871 | $ | 22,284 | |||||||||
Color | — | 7,065 | |||||||||||
Corporate & Other | 6,679 | 2,386 | |||||||||||
Total Continuing Operations | 90,550 | 31,735 | |||||||||||
Discontinued Operations | 10,998 | — | |||||||||||
Total Restructuring | $ | 101,548 | $ | 31,735 | |||||||||
Summary of restructuring costs | The Company recorded restructuring and other charges in continuing operations for the years ended December 31, 2014 and 2013, as follows: | ||||||||||||
(in thousands) | Selling & Administrative | Cost of Products Sold | Total | ||||||||||
2014 | |||||||||||||
Employee separations | $ | 17,794 | $ | — | $ | 17,794 | |||||||
Long-lived asset impairment | 63,431 | — | 63,431 | ||||||||||
Gain on asset sales | (602 | ) | — | (602 | ) | ||||||||
Write-down of inventory | — | 1,914 | 1,914 | ||||||||||
Other costs(1) | 8,013 | — | 8,013 | ||||||||||
Total | $ | 88,636 | $ | 1,914 | $ | 90,550 | |||||||
(1)Other costs include decommissioning costs, professional services, personnel moving costs, other related costs and 2014 proxy contest costs. | |||||||||||||
(in thousands) | Selling & Administrative | Cost of Products Sold | Total | ||||||||||
2013 | |||||||||||||
Employee separations | $ | 18,081 | $ | — | $ | 18,081 | |||||||
Long-lived asset impairment | 4,176 | — | 4,176 | ||||||||||
Gain on asset sales | (3,019 | ) | — | (3,019 | ) | ||||||||
Write-down of inventory | — | 1,840 | 1,840 | ||||||||||
Other costs(2) | 10,657 | — | 10,657 | ||||||||||
Total | $ | 29,895 | $ | 1,840 | $ | 31,735 | |||||||
(2)Other costs include decommissioning costs, professional services, personnel (other than employee separations) and moving related costs. | |||||||||||||
Summary of accrual for restructuring and other charges | Activities impacting the Company’s reserve for restructuring and other charges for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||
(in thousands) | Employee Separations | Assets Related and Other | Total | ||||||||||
Balance as of December 31, 2012 | $ | — | $ | — | $ | — | |||||||
Restructuring and other costs | 18,081 | 13,654 | 31,735 | ||||||||||
Gain on sale of assets | — | 3,019 | 3,019 | ||||||||||
Cash spent | (13,505 | ) | (9,069 | ) | (22,574 | ) | |||||||
Reduction of assets | — | (6,016 | ) | (6,016 | ) | ||||||||
Translation adjustment | (14 | ) | — | (14 | ) | ||||||||
Balance as of December 31, 2013 | $ | 4,562 | $ | 1,588 | $ | 6,150 | |||||||
Restructuring and other costs | 18,951 | 82,597 | 101,548 | ||||||||||
Gain on sale of assets | — | 602 | 602 | ||||||||||
Cash spent | (7,067 | ) | (8,773 | ) | (15,840 | ) | |||||||
Reduction of assets | — | (75,117 | ) | (75,117 | ) | ||||||||
Translation adjustment | (1,537 | ) | — | (1,537 | ) | ||||||||
Balance as of December 31, 2014 | $ | 14,909 | $ | 897 | $ | 15,806 |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
DISCONTINUED OPERATIONS [Abstract] | |||||||||||||
Schedule of certain Consolidated Condensed Statements of Earnings information for discontinued operations | The following table summarizes the discontinued operation’s results, which are included in the loss from discontinued operations in the Consolidated Statements of Earnings for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Net sales | $ | 5,197 | $ | 5,424 | $ | 5,495 | |||||||
Loss from discontinued operations before income taxes | (11,496 | ) | (1,418 | ) | (1,671 | ) | |||||||
Income tax benefit | 3,371 | 415 | 497 | ||||||||||
Loss from discontinued operations, net of tax | $ | (8,125 | ) | $ | (1,003 | ) | $ | (1,174 | ) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Inventories [Abstract] | |||
Inventories include finished and in-process products | $308,700,000 | $317,100,000 | |
Raw materials and supplies | 140,700,000 | 157,400,000 | |
Cash Flow Hedges [Abstract] | |||
Maximum number of months for forward exchange contracts to mature | 12 months | ||
Numerator [Abstract] | |||
Net earnings from continuing operations | 81,771,000 | 114,298,000 | 125,082,000 |
Denominator [Abstract] | |||
Denominator for basic earnings per share - weighted - average common shares (in shares) | 48,525,000 | 49,755,000 | 49,596,000 |
Effect of dilutive securities (in shares) | 294,000 | 179,000 | 226,000 |
Denominator for diluted earnings per share - adjusted weighted - average shares outstanding (in shares) | 48,819,000 | 49,934,000 | 49,822,000 |
Basic: | |||
Basic (in dollars per share) | $1.69 | $2.30 | $2.52 |
Diluted: | |||
Diluted (in dollars per share) | $1.67 | $2.29 | $2.51 |
Number of antidilutive shares excluded from the diluted EPS calculation (in shares) | 0 | 0 | 0 |
Research and Development [Abstract] | |||
Research and development costs | 35,900,000 | 34,100,000 | 34,200,000 |
Advertising [Abstract] | |||
Advertising costs | $1,900,000 | $1,600,000 | $2,200,000 |
Minimum [Member] | |||
Intangible assets [Abstract] | |||
Useful lives of intangible assets | 5 years | ||
Maximum [Member] | |||
Intangible assets [Abstract] | |||
Useful lives of intangible assets | 20 years | ||
Building and Leasehold Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 5 years | ||
Building and Leasehold Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 40 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 20 years |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Intangible assets [Abstract] | |||
Cost | $23,150,000 | $26,180,000 | |
Accumulated Amortization | -14,390,000 | -15,634,000 | |
Intangible assets expense [Abstract] | |||
Amortization expense of intangible assets | 1,200,000 | 1,300,000 | 1,400,000 |
2015 | 1,200,000 | ||
2016 | 1,200,000 | ||
2017 | 1,200,000 | ||
2018 | 1,200,000 | ||
2019 | 1,200,000 | ||
Goodwill activity [Roll Forward] | |||
Balance as of beginning of period | 457,269,000 | 451,318,000 | |
Currency translation impact | -32,997,000 | 5,951,000 | |
Impairment | -158,000 | ||
Balance as of end of period | 424,114,000 | 457,269,000 | 451,318,000 |
Flavor and Fragrances [Member] | |||
Goodwill activity [Roll Forward] | |||
Balance as of beginning of period | 136,637,000 | 135,784,000 | |
Currency translation impact | -10,614,000 | 853,000 | |
Impairment | 0 | ||
Balance as of end of period | 126,023,000 | 136,637,000 | |
Color [Member] | |||
Goodwill activity [Roll Forward] | |||
Balance as of beginning of period | 317,323,000 | 311,650,000 | |
Currency translation impact | -22,050,000 | 5,673,000 | |
Impairment | -158,000 | ||
Balance as of end of period | 295,115,000 | 317,323,000 | |
Corporate and Other [Member] | |||
Goodwill activity [Roll Forward] | |||
Balance as of beginning of period | 3,309,000 | 3,884,000 | |
Currency translation impact | -333,000 | -575,000 | |
Impairment | 0 | ||
Balance as of end of period | 2,976,000 | 3,309,000 | |
Weighted Average [Member] | |||
Intangible assets [Abstract] | |||
Weighted Average Amortization Years | 19 years 8 months 12 days | ||
Technological Know How [Member] | |||
Intangible assets [Abstract] | |||
Cost | 6,459,000 | 8,606,000 | |
Accumulated Amortization | -4,352,000 | -5,328,000 | |
Technological Know How [Member] | Weighted Average [Member] | |||
Intangible assets [Abstract] | |||
Weighted Average Amortization Years | 20 years | ||
Customer Relationships [Member] | |||
Intangible assets [Abstract] | |||
Cost | 6,938,000 | 7,944,000 | |
Accumulated Amortization | -4,170,000 | -4,359,000 | |
Customer Relationships [Member] | Weighted Average [Member] | |||
Intangible assets [Abstract] | |||
Weighted Average Amortization Years | 20 years | ||
Patents, Trademarks, Noncompete Agreements and Other [Member] | |||
Intangible assets [Abstract] | |||
Cost | 9,753,000 | 9,630,000 | |
Accumulated Amortization | ($5,868,000) | ($5,947,000) | |
Patents, Trademarks, Noncompete Agreements and Other [Member] | Weighted Average [Member] | |||
Intangible assets [Abstract] | |||
Weighted Average Amortization Years | 19 years 2 months 12 days |
DEBT_Details
DEBT (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Oct. 24, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
USD ($) | USD ($) | Uncommitted Loans [Member] | Uncommitted Loans [Member] | Loans of foreign subsidiaries [Member] | Loans of foreign subsidiaries [Member] | Euro Denominated Senior Notes Due November2023 at 3.06 Percent [Member] | Euro Denominated Senior Notes Due November2023 at 3.06 Percent [Member] | Euro Denominated Senior Notes Due November2023 at 3.06 Percent [Member] | Euro Denominated Senior Notes Due November2023 at 3.06 Percent [Member] | Senior Notes Due November 2023 at 3.66 Percent [Member] | Senior Notes Due November 2023 at 3.66 Percent [Member] | Senior Notes Due November 2018 at 4.47 percent [Member] | Senior Notes Due November 2018 at 4.47 percent [Member] | Senior Notes Due November 2017 at 4.14 percent [Member] | Senior Notes Due November 2017 at 4.14 percent [Member] | Senior Notes Due Through May 2017 at 4.91 Percent [Member] | Senior Notes Due Through May 2017 at 4.91 Percent [Member] | Senior Notes Due November 2016 at 3.77 Percent [Member] | Senior Notes Due November 2016 at 3.77 Percent [Member] | Long-term Debt [Member] | Long-term Debt [Member] | Various Other Notes [Member] | Various Other Notes [Member] | Term Loan [Member] | Term Loan [Member] | Revolver [Member] | Revolver [Member] | Revolver [Member] | Line of Credit [Member] | Line of Credit [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | LIBOR [Member] | USD ($) | LIBOR [Member] | USD ($) | USD ($) | ||||
Schedule of long term debt [Abstract] | |||||||||||||||||||||||||||||||
Long-term debt, gross | $451,011,000 | $348,124,000 | $46,270,000 | € 38,000,000 | $52,566,000 | € 38,000,000 | $75,000,000 | $75,000,000 | $25,000,000 | $25,000,000 | $25,000,000 | $25,000,000 | $88,000,000 | $99,000,000 | $25,000,000 | $25,000,000 | $98,750,000 | $0 | $2,004,000 | $2,576,000 | $65,987,000 | $43,982,000 | |||||||||
Less current maturities | 0 | 0 | |||||||||||||||||||||||||||||
Long-term debt, net | 451,011,000 | 348,124,000 | |||||||||||||||||||||||||||||
Interest rate, stated percentage | 3.06% | 3.06% | 3.66% | 4.47% | 4.14% | 4.91% | 3.77% | ||||||||||||||||||||||||
Maturity date | 24-Oct-19 | ||||||||||||||||||||||||||||||
Term loan, maturity date | 30-Nov-23 | 30-Nov-23 | 30-Nov-23 | 30-Nov-18 | 30-Nov-17 | 31-May-17 | 30-Nov-16 | 24-Oct-19 | |||||||||||||||||||||||
Term loan, face amount | 100,000,000 | ||||||||||||||||||||||||||||||
Interest rate, description | LIBOR Plus 1.375% | LIBOR Plus 1.375% | |||||||||||||||||||||||||||||
Interest rate (in hundredths) | 1.38% | 1.38% | |||||||||||||||||||||||||||||
Credit facility, amount | 350,000,000 | 450,000,000 | |||||||||||||||||||||||||||||
Long term debt additional disclosures [Abstract] | |||||||||||||||||||||||||||||||
Average effective interest rate (in hundredths) | 1.54% | 1.54% | |||||||||||||||||||||||||||||
Remaining borrowing capacity | 277,700,000 | 41,800,000 | |||||||||||||||||||||||||||||
Aggregate amounts of contractual maturities of long-term debt for the next five years [Abstract] | |||||||||||||||||||||||||||||||
Amounts due in 2015 | 18,400,000 | ||||||||||||||||||||||||||||||
Amounts due in 2016 | 43,800,000 | ||||||||||||||||||||||||||||||
Amounts due in 2017 | 99,100,000 | ||||||||||||||||||||||||||||||
Amounts due in 2018 | 35,000,000 | ||||||||||||||||||||||||||||||
Amounts due in 2019 | 133,500,000 | ||||||||||||||||||||||||||||||
Debt covenants [Abstract] | |||||||||||||||||||||||||||||||
Debt to EBITDA (Maximum), Actual | 1.74 | ||||||||||||||||||||||||||||||
Net Worth (Minimum), Actual | 1,046,935,000 | 1,242,684,000 | |||||||||||||||||||||||||||||
Interest Coverage (Minimum), Actual | 8.64 | ||||||||||||||||||||||||||||||
Debt to EBITDA (Maximum), Required | 3.5 | ||||||||||||||||||||||||||||||
Net Worth (Minimum), Required | 625,000,000 | ||||||||||||||||||||||||||||||
Interest Coverage (Minimum), Required | 2 | ||||||||||||||||||||||||||||||
Stand-by letters of credit outstanding | 6,300,000 | 6,300,000 | |||||||||||||||||||||||||||||
Short-term borrowings [Abstract] | |||||||||||||||||||||||||||||||
Short-term borrowings | $15,888,000 | $7,050,000 | $14,086,000 | $4,600,000 | $1,802,000 | $2,450,000 | |||||||||||||||||||||||||
Weighted-average interest rates on short-term borrowings (in hundredths) | 1.66% | 2.16% |
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITY (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative instruments and hedging activity for the period [Abstract] | |||
Impact of foreign exchange rates on debt instruments recorded in Other Comprehensive Income | ($12,677,000) | $4,020,000 | $1,251,000 |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Derivative, fair value | 17,800,000 | 29,600,000 | |
Foreign Currency Denominated Debt, Net Investment Hedging [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Carrying value of foreign denominated debt | $97,300,000 | $96,500,000 |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
SHARE-BASED COMPENSATION [Abstract] | ||||
Percent of market price (in hundredths) | 100.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available to be granted under existing stock plans (in shares) | 1,200,000 | |||
Aggregate intrinsic value [Abstract] | ||||
Age participant attains for recognition of expenses from date of grant | 65 years | |||
Grant Date Weighted Average Fair Value [Abstract] | ||||
Total pre-tax share-based compensation recognized in the Consolidated Statements of Earnings | $6,300,000 | $8,400,000 | $10,100,000 | |
Tax related benefits | 2,400,000 | 2,600,000 | 2,400,000 | |
Cash received from the exercise of stock options | 600,000 | 1,000,000 | 1,500,000 | |
Range of Exercise Price 1 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price range, lower range (in dollars per share) | $18.57 | |||
Exercise price range, upper range (in dollars per share) | $23.08 | |||
Options outstanding (in shares) | 25,000 | |||
Weighted average remaining contractual life | 1 year 1 month 6 days | |||
Weighted average exercise price (in dollars per share) | $19.34 | |||
Options exercisable (in shares) | 25,000 | |||
Weighted average exercise price (in dollars per share) | $19.34 | |||
Range of Exercise Price 2 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price range, lower range (in dollars per share) | $23.09 | |||
Exercise price range, upper range (in dollars per share) | $26.11 | |||
Options outstanding (in shares) | 20,000 | |||
Weighted average remaining contractual life | 1 year 3 months 18 days | |||
Weighted average exercise price (in dollars per share) | $23.86 | |||
Options exercisable (in shares) | 20,000 | |||
Weighted average exercise price (in dollars per share) | $23.86 | |||
Range of Exercise Price 3 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price range, lower range (in dollars per share) | $26.12 | |||
Exercise price range, upper range (in dollars per share) | $30.07 | |||
Options outstanding (in shares) | 21,000 | |||
Weighted average remaining contractual life | 2 years 9 months 18 days | |||
Weighted average exercise price (in dollars per share) | $28.16 | |||
Options exercisable (in shares) | 21,000 | |||
Weighted average exercise price (in dollars per share) | $28.16 | |||
Non-vested Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense recognition period (in years) | 5 years | |||
Aggregate intrinsic value [Abstract] | ||||
Percentage of future grants that will be performance stock unit awards | 100.00% | 50.00% | ||
Percentage of future grants that will be time vesting stock unit awards | 50.00% | |||
Percentage of stated performance metrics award of grant | 150.00% | 150.00% | ||
Number of years to measure performance metrics | 3 years | 2 years | ||
Non-vested Stock [Roll Forward] | ||||
Outstanding, Beginning (in shares) | 497,000 | 339,000 | 400,000 | |
Granted (in shares) | 171,000 | 262,000 | 293,000 | |
Vested (in shares) | -40,000 | -94,000 | -314,000 | |
Cancelled (in shares) | -24,000 | -10,000 | -40,000 | |
Outstanding, Ending (in shares) | 604,000 | 497,000 | 339,000 | |
Grant Date Weighted Average Fair Value [Abstract] | ||||
Outstanding, Beginning (in dollars per share) | $38.46 | $33.22 | $31.42 | |
Granted (in dollars per share) | $55.21 | $46.14 | $36.09 | |
Vested (in dollars per share) | $27.15 | $40.57 | $33.59 | |
Cancelled ( in dollars per share) | $40.84 | $42.22 | $33.41 | |
Outstanding, Ending Balance (in dollars per share) | $43.84 | $38.46 | $33.22 | |
Aggregate Intrinsic Value | 36,454,000 | 24,095,000 | 12,046,000 | 15,142,000 |
Total intrinsic values of shares vested | 2,200,000 | 4,400,000 | 11,200,000 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period (in shares) | 0 | 0 | 0 | |
Expense recognition period (in years) | 3 years | |||
Expiration from date of grant (in years) | 10 years | |||
Stock Options [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 93,000 | 141,000 | 207,000 | |
Exercised (in shares) | -27,000 | -48,000 | -66,000 | |
Outstanding, end of period (in shares) | 66,000 | 93,000 | 141,000 | 207,000 |
Exercisable, end of period (in shares) | 66,000 | |||
Weighted Average Exercise Price [Abstract] | ||||
Outstanding, beginning of period (in dollars per share) | $23.04 | $22.35 | $22.36 | |
Exercised (in dollars per share) | $21.92 | $21 | $22.38 | |
Outstanding, end of period (in dollars per share) | $23.49 | $23.04 | $22.35 | $22.36 |
Exercisable, end of period (in dollars per share) | $23.49 | |||
Weighted average remaining life [Abstract] | ||||
Weighted average remaining life | 1 year 8 months 12 days | 2 years 2 months 12 days | 2 years 8 months 12 days | 3 years 1 month 6 days |
Exercisable, weighted average remaining life | 1 year 8 months 12 days | |||
Aggregate intrinsic value [Abstract] | ||||
Aggregate intrinsic value of stock options, outstanding | 2,438,000 | 2,374,000 | 1,859,000 | 3,222,000 |
Aggregate intrinsic value of stock options, exercisable | 2,438,000 | |||
Aggregate intrinsic values of stock options exercised | 800,000 | 1,100,000 | 900,000 | |
Non-vested stock and performance stock units [Member] | ||||
Grant Date Weighted Average Fair Value [Abstract] | ||||
Compensation cost net yet recognized | $15,700,000 | |||
Compensation cost not yet recognized, period for recognition | 1 year 11 months 23 days |
RETIREMENT_PLANS_Details
RETIREMENT PLANS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Contribution Plan [Member] | |||
Defined Contribution Plans Disclosure [Abstract] | |||
Percentage of matching contributions under defined contribution plan (in hundredths) | 4.00% | ||
Total expense for defined contribution plans | $5,000,000 | $4,700,000 | $4,700,000 |
Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 39,520,000 | 37,122,000 | 35,141,000 |
Benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 72,582,000 | 76,957,000 | |
Service cost | 2,523,000 | 3,260,000 | 2,583,000 |
Interest cost | 2,390,000 | 2,557,000 | 2,659,000 |
Foreign currency exchange rate changes | -1,889,000 | -703,000 | |
Benefits paid | -23,726,000 | -5,194,000 | |
Actuarial loss (gain) | 5,858,000 | -4,295,000 | |
Curtailment gain | -2,342,000 | 0 | |
Benefit obligation at end of year | 55,396,000 | 72,582,000 | 76,957,000 |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at beginning of year | 37,122,000 | 35,141,000 | |
Company contributions | 22,402,000 | 5,701,000 | |
Foreign currency exchange rate changes | -2,379,000 | -539,000 | |
Benefits paid | -23,726,000 | -5,258,000 | |
Actual gain on plan assets | 6,101,000 | 2,077,000 | |
Plan assets at end of year | 39,520,000 | 37,122,000 | 35,141,000 |
Funded status | -15,876,000 | -35,460,000 | |
Accumulated benefit obligation | 54,435,000 | 68,391,000 | |
Amounts recognized in Consolidated Balance Sheets [Abstract] | |||
Accrued employee and retiree benefits | -18,258,000 | -21,206,000 | |
Other accrued expenses | -7,263,000 | -19,144,000 | |
Prepaid expenses and other current assets | 9,645,000 | 4,890,000 | |
Net liability | -15,876,000 | -35,460,000 | |
Components of annual benefit cost [Abstract] | |||
Service cost | 2,523,000 | 3,260,000 | 2,583,000 |
Interest cost | 2,390,000 | 2,557,000 | 2,659,000 |
Expected return on plan assets | -1,791,000 | -1,689,000 | -1,428,000 |
Amortization of prior service cost | 171,000 | 172,000 | 1,971,000 |
Recognized actuarial (gain) loss | -305,000 | 3,203,000 | 799,000 |
Settlement expense | 1,467,000 | 1,177,000 | 0 |
Curtailment gain | -754,000 | 0 | 0 |
Defined benefit expense | 3,701,000 | 8,680,000 | 6,584,000 |
Weighted average liability assumptions [Abstract] | |||
Discount rate (in hundredths) | 3.70% | 3.91% | |
Expected return on plan assets (in hundredths) | 3.32% | 5.12% | |
Rate of compensation increase (in hundredths) | 0.37% | 4.59% | |
Weighted average cost assumption [Abstract] | |||
Discount rate (in hundredths) | 3.91% | 3.27% | |
Expected return on plan assets (in hundredths) | 5.12% | 4.76% | |
Rate of compensation increase (in hundredths) | 4.59% | 4.01% | |
Amounts recognized in Accumulated Other Comprehensive Income [Abstract] | |||
Prior service cost | 0 | 1,182,000 | |
Unrecognized net actuarial loss | 7,407,000 | 7,944,000 | |
Other Comprehensive Income (Loss), Pension Adjustment, Net of Tax [Abstract] | |||
Net actuarial (loss) gain arising during the period | -387,000 | 3,180,000 | -3,947,000 |
Amortization of actuarial loss, included in defined benefit expense | 1,252,000 | 2,006,000 | 526,000 |
Amortization of prior service cost, included in defined benefit expense | 733,000 | 108,000 | 1,205,000 |
Pension adjustment, net of tax | 1,598,000 | 5,294,000 | -2,216,000 |
Estimated Future Benefit Payments [Abstract] | |||
Expected Future Benefit Payments in Year One | 9,600,000 | ||
Expected Future Benefit Payments in Year Two | 7,700,000 | ||
Expected Future Benefit Payments in Year Three | 2,300,000 | ||
Expected Future Benefit Payments in Year Four | 4,500,000 | ||
Expected Future Benefit Payments in Year Five | 2,500,000 | ||
Expected Future Benefit Payments in Five Fiscal Years Thereafter | 17,500,000 | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 9,700,000 | ||
Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||
Expected amortization of actuarial gain in next fiscal year | 300,000 | ||
Pension Plans, Defined Benefit [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 7,422,000 | 7,369,000 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 7,422,000 | 7,369,000 | |
Pension Plans, Defined Benefit [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 32,098,000 | 29,753,000 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 32,098,000 | 29,753,000 | |
Pension Plans, Defined Benefit [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 0 | 0 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 6,424,000 | 6,143,000 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 6,424,000 | 6,143,000 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Domestic [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 6,424,000 | 6,143,000 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 6,424,000 | 6,143,000 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Domestic [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 0 | 0 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Domestic [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 0 | 0 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Foreign [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 242,000 | 7,294,000 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 242,000 | 7,294,000 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Foreign [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 0 | 0 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Foreign [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 242,000 | 7,294,000 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 242,000 | 7,294,000 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Foreign [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 0 | 0 | |
Pension Plans, Defined Benefit [Member] | Fixed Income Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 22,710,000 | 23,162,000 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 22,710,000 | 23,162,000 | |
Pension Plans, Defined Benefit [Member] | Fixed Income Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 960,000 | 1,186,000 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 960,000 | 1,186,000 | |
Pension Plans, Defined Benefit [Member] | Fixed Income Funds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 21,750,000 | 21,976,000 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 21,750,000 | 21,976,000 | |
Pension Plans, Defined Benefit [Member] | Fixed Income Funds [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 0 | 0 | |
Pension Plans, Defined Benefit [Member] | Other Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 10,144,000 | 523,000 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 10,144,000 | 523,000 | |
Pension Plans, Defined Benefit [Member] | Other Investments [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 38,000 | 40,000 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 38,000 | 40,000 | |
Pension Plans, Defined Benefit [Member] | Other Investments [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 10,106,000 | 483,000 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | 10,106,000 | 483,000 | |
Pension Plans, Defined Benefit [Member] | Other Investments [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assets for Plan Benefits | 0 | 0 | |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at end of year | $0 | $0 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | $6,002 | |
Other comprehensive income before reclassifications | -92,984 | |
Amounts reclassified from OCI | 1,854 | |
Accumulated Other Comprehensive Income, ending balance | -85,128 | |
Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | -99 | [1] |
Other comprehensive income before reclassifications | 554 | [1] |
Amounts reclassified from OCI | -131 | [1] |
Accumulated Other Comprehensive Income, ending balance | 324 | [1] |
Pension Items [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | -6,768 | [1] |
Other comprehensive income before reclassifications | -387 | [1] |
Amounts reclassified from OCI | 1,985 | [1] |
Accumulated Other Comprehensive Income, ending balance | -5,170 | [1] |
Foreign Currency Items [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | 12,869 | |
Other comprehensive income before reclassifications | -93,151 | |
Amounts reclassified from OCI | 0 | |
Accumulated Other Comprehensive Income, ending balance | ($80,282) | |
[1] | Cash Flow Hedges and Pension Items are net of tax. |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Currently payable [Abstract] | |||
Federal | $18,642,000 | $21,252,000 | $22,394,000 |
State | 2,264,000 | 3,065,000 | 3,024,000 |
Foreign | 25,435,000 | 25,175,000 | 22,670,000 |
Current income tax (expense), total | 46,341,000 | 49,492,000 | 48,088,000 |
Deferred (benefit) expense [Abstract] | |||
Federal | 1,532,000 | -5,125,000 | 170,000 |
State | -935,000 | 502,000 | 603,000 |
Foreign | -14,111,000 | -1,534,000 | 2,035,000 |
Deferred income tax (expense), total | -13,514,000 | -6,157,000 | 2,808,000 |
Income taxes | 32,827,000 | 43,335,000 | 50,896,000 |
Deferred tax assets [Abstract] | |||
Benefit plans | 15,507,000 | 21,148,000 | |
Liabilities and reserves | 19,384,000 | 11,499,000 | |
Operating loss and credit carryovers | 57,128,000 | 51,292,000 | |
Other | 6,872,000 | 17,151,000 | |
Gross deferred tax assets | 98,891,000 | 101,090,000 | |
Valuation allowance | -43,055,000 | -43,048,000 | |
Deferred tax assets | 55,836,000 | 58,042,000 | |
Deferred tax liabilities [Abstract] | |||
Property, plant and equipment | -1,619,000 | -21,139,000 | |
Other assets | -1,462,000 | -1,411,000 | |
Goodwill | -28,583,000 | -28,573,000 | |
Other | -1,426,000 | -3,168,000 | |
Deferred tax liabilities | -33,090,000 | -54,291,000 | |
Net deferred tax assets, noncurrent | 1,000,000 | ||
Increase in Net Deferred Tax Assets | 10,800,000 | ||
Increase in Other Current Assets | 6,000,000 | ||
Increase in Other Comprehensive Income | 16,800,000 | ||
Net deferred tax assets | 22,746,000 | 3,751,000 | |
Effective tax rate reconciliation [Abstract] | |||
Taxes at statutory rate (in hundredths) | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit (in hundredths) | 1.90% | 1.10% | 1.50% |
Tax credits (in hundredths) | -0.40% | -0.30% | 0.00% |
Taxes on foreign earnings (in hundredths) | -4.70% | -5.30% | -4.10% |
Resolution of prior years' tax matters (in hundredths) | -0.60% | -0.70% | -1.40% |
U.S. manufacturing deduction (in hundredths) | -2.00% | -1.60% | -1.80% |
Valuation allowance adjustments (in hundredths) | 0.20% | -0.80% | -0.50% |
Other, net (in hundredths) | -0.80% | 0.10% | 0.20% |
Effective tax rate (in hundredths) | 28.60% | 27.50% | 28.90% |
Earnings from continuing operations before income taxes [Abstract] | |||
United States | 56,211,000 | 55,461,000 | 79,118,000 |
Foreign | 58,387,000 | 102,172,000 | 96,860,000 |
Total | 114,598,000 | 157,633,000 | 175,978,000 |
Unremitted earnings of foreign subsidiaries | 449,800,000 | ||
Reconciliation of change in liability for unrecognized tax benefits [Roll Forward] | |||
Balance at beginning of year | 5,295,000 | 7,091,000 | |
Increases for tax positions taken in the current year | 718,000 | 818,000 | |
Increases for tax positions taken in prior years | 10,238,000 | 875,000 | |
Decreases related to settlements with tax authorities | -1,044,000 | -3,113,000 | |
Decreases as a result of lapse of the applicable statutes of limitations | -751,000 | -374,000 | |
Foreign currency exchange rate changes | -516,000 | -2,000 | |
Balance at the end of year | 13,940,000 | 5,295,000 | 7,091,000 |
Unrecognized tax benefits that would impact the effective tax rate, if recognized | 4,300,000 | ||
Income tax interest and penalties accrued | 500,000 | 700,000 | |
Expected decrease in liability for unrecognized tax benefits in the next fiscal year | 10,200,000 | ||
Unrecognized tax benefits that would impact the effective tax rate in the next fiscal year | 300,000 | ||
Foreign Country [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryovers | 116,200,000 | ||
Operating loss carryovers, subject to expiration | 10,100,000 | ||
Operating loss carryovers, not subject to expiration | 106,000,000 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryovers | 99,300,000 | ||
Operating loss carryovers, subject to expiration | $99,300,000 |
SEGMENT_AND_GEOGRAPHIC_INFORMA2
SEGMENT AND GEOGRAPHIC INFORMATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | $1,447,821 | $1,462,126 | $1,453,555 |
Total revenue | 1,501,838 | 1,516,738 | 1,510,343 |
Operating income (loss) | 130,665 | 173,780 | 192,879 |
Interest expense | 16,067 | 16,147 | 16,901 |
Earnings Before Income Taxes | 114,598 | 157,633 | 175,978 |
Assets | 1,765,206 | 1,870,734 | 1,776,643 |
Capital expenditures | 79,398 | 104,246 | 103,806 |
Depreciation and amortization | 51,456 | 52,016 | 48,352 |
Number of additional segments managed on a geographical basis | 2 | ||
Intersegment Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | -54,017 | -54,612 | -56,788 |
Total revenue | 54,017 | 54,612 | 56,788 |
Flavors & Fragrances [Member] | Reportable Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 813,808 | 843,233 | 835,619 |
Total revenue | 847,022 | 876,502 | 870,047 |
Operating income (loss) | 119,093 | 120,278 | 120,825 |
Interest expense | 0 | 0 | 0 |
Earnings Before Income Taxes | 119,093 | 120,278 | 120,825 |
Assets | 814,215 | 896,335 | 859,303 |
Capital expenditures | 41,131 | 59,040 | 49,781 |
Depreciation and amortization | 26,180 | 27,435 | 26,996 |
Flavors & Fragrances [Member] | Intersegment Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 33,214 | 33,269 | 34,428 |
Color [Member] | Reportable Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 487,503 | 473,811 | 478,341 |
Total revenue | 508,077 | 495,057 | 500,667 |
Operating income (loss) | 114,884 | 107,873 | 101,062 |
Interest expense | 0 | 0 | 0 |
Earnings Before Income Taxes | 114,884 | 107,873 | 101,062 |
Assets | 732,364 | 761,485 | 715,683 |
Capital expenditures | 31,883 | 38,639 | 45,858 |
Depreciation and amortization | 18,785 | 17,541 | 14,393 |
Color [Member] | Intersegment Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 20,574 | 21,246 | 22,326 |
Corporate & Other [Member] | Reportable Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 146,510 | 145,082 | 139,595 |
Total revenue | 146,739 | 145,179 | 139,629 |
Operating income (loss) | -103,312 | -54,371 | -29,008 |
Interest expense | 16,067 | 16,147 | 16,901 |
Earnings Before Income Taxes | -119,379 | -70,518 | -45,909 |
Assets | 218,627 | 212,914 | 201,657 |
Capital expenditures | 6,384 | 6,567 | 8,167 |
Depreciation and amortization | 6,491 | 7,040 | 6,963 |
Corporate & Other [Member] | Intersegment Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $229 | $97 | $34 |
SEGMENT_AND_GEOGRAPHIC_INFORMA3
SEGMENT AND GEOGRAPHIC INFORMATION, SEGMENT AND GEOGRAPHIC INFO (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $1,447,821 | $1,462,126 | $1,453,555 |
Long-lived assets | 1,005,817 | 1,080,909 | 1,025,289 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 573,600 | 590,000 | 596,400 |
Long-lived assets | 450,800 | 389,700 | 360,100 |
Reportable Geographical Components [Member] | North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 750,345 | 782,088 | 783,840 |
Long-lived assets | 537,668 | 531,005 | 504,483 |
Reportable Geographical Components [Member] | Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 389,588 | 382,077 | 370,490 |
Long-lived assets | 423,972 | 506,352 | 472,865 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 193,163 | 188,917 | 197,658 |
Long-lived assets | 29,948 | 32,148 | 35,891 |
Reportable Geographical Components [Member] | Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 114,725 | 109,044 | 101,567 |
Long-lived assets | $14,229 | $11,404 | $12,050 |
SEGMENT_AND_GEOGRAPHIC_INFORMA4
SEGMENT AND GEOGRAPHIC INFORMATION, REVENUE FROM EXTERNAL CUSTOMERS BY PRODUCTS AND SERVICES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Revenue from External Customer [Line Items] | |||
Revenue | $1,447,821 | $1,462,126 | $1,453,555 |
Traditional Flavors & Fragrances [Member] | |||
Product Revenue from External Customer [Line Items] | |||
Revenue | 724,693 | 736,107 | 715,227 |
Natural Ingredients [Member] | |||
Product Revenue from External Customer [Line Items] | |||
Revenue | 227,538 | 244,155 | 252,941 |
Food & Beverage Colors [Member] | |||
Product Revenue from External Customer [Line Items] | |||
Revenue | 334,565 | 307,179 | 310,639 |
Non-Food Colors [Member] | |||
Product Revenue from External Customer [Line Items] | |||
Revenue | 215,042 | 229,297 | 231,536 |
Intersegment Revenue [Member] | |||
Product Revenue from External Customer [Line Items] | |||
Revenue | ($54,017) | ($54,612) | ($56,788) |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $1.90 | $19.80 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Forward exchange contracts, asset | 0.1 | 0.2 |
Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long term debt | 464.5 | 351 |
Level 2 [Member] | Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long term debt | $451 | $348.10 |
RESTRUCTURING_CHARGES_Details
RESTRUCTURING CHARGES (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Employee | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected annual savings from restructuring | $30,000,000 | |||
Headcount reduction due to restructuring | 300 | |||
Number of employees terminated due to restructuring | 100 | |||
Savings recognized in restructuring plan | 2,600,000 | |||
Carrying amount reduction due to asset impairment | 35,000,000 | |||
Restructuring charge, after tax | 73,300,000 | 22,000,000 | ||
Detail of the restructuring costs [Abstract] | ||||
Employee separation | 17,794,000 | 18,081,000 | ||
Long-lived asset impairment | 63,431,000 | 4,176,000 | ||
Gain on asset sales | -602,000 | -3,019,000 | ||
Write-down of inventory | 1,914,000 | 1,840,000 | ||
Other Costs | 8,013,000 | [1] | 10,657,000 | [2] |
Restructuring cost by segment [Abstract] | ||||
Continuing Operations | 90,550,000 | 31,735,000 | ||
Discontinued Operations | 10,998,000 | |||
Total Restructuring | 101,548,000 | 31,735,000 | ||
Summary of accrual for restructuring and other charges [Abstract] | ||||
Balance | 6,150,000 | 0 | ||
Restructuring and other costs | 101,548,000 | 31,735,000 | ||
Gain on sale of assets | 602,000 | 3,019,000 | ||
Cash spent | -15,840,000 | -22,574,000 | ||
Reduction of assets | -75,117,000 | -6,016,000 | ||
Translation adjustment | -1,537,000 | -14,000 | ||
Balance | 15,806,000 | 6,150,000 | ||
Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in manufacturing labor and pre-tax charges | 120,000,000 | |||
Additional restructuring cost | 21,000,000 | |||
Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in manufacturing labor and pre-tax charges | 130,000,000 | |||
Additional restructuring cost | 31,000,000 | |||
Employee Separations [Member] | ||||
Detail of the restructuring costs [Abstract] | ||||
Gain on asset sales | 0 | 0 | ||
Restructuring cost by segment [Abstract] | ||||
Total Restructuring | 18,951,000 | 18,081,000 | ||
Summary of accrual for restructuring and other charges [Abstract] | ||||
Balance | 4,562,000 | 0 | ||
Restructuring and other costs | 18,951,000 | 18,081,000 | ||
Gain on sale of assets | 0 | 0 | ||
Cash spent | -7,067,000 | -13,505,000 | ||
Reduction of assets | 0 | 0 | ||
Translation adjustment | -1,537,000 | -14,000 | ||
Balance | 14,909,000 | 4,562,000 | ||
Asset Related and Other [Member] | ||||
Detail of the restructuring costs [Abstract] | ||||
Gain on asset sales | -602,000 | -3,019,000 | ||
Restructuring cost by segment [Abstract] | ||||
Total Restructuring | 82,597,000 | 13,654,000 | ||
Summary of accrual for restructuring and other charges [Abstract] | ||||
Balance | 1,588,000 | 0 | ||
Restructuring and other costs | 82,597,000 | 13,654,000 | ||
Gain on sale of assets | 602,000 | 3,019,000 | ||
Cash spent | -8,773,000 | -9,069,000 | ||
Reduction of assets | -75,117,000 | -6,016,000 | ||
Translation adjustment | 0 | 0 | ||
Balance | 897,000 | 1,588,000 | ||
Selling & Administrative [Member] | ||||
Detail of the restructuring costs [Abstract] | ||||
Employee separation | 17,794,000 | 18,081,000 | ||
Long-lived asset impairment | 63,431,000 | 4,176,000 | ||
Gain on asset sales | -602,000 | -3,019,000 | ||
Write-down of inventory | 0 | 0 | ||
Other Costs | 8,013,000 | [1] | 10,657,000 | [2] |
Restructuring cost by segment [Abstract] | ||||
Continuing Operations | 88,636,000 | 29,895,000 | ||
Summary of accrual for restructuring and other charges [Abstract] | ||||
Gain on sale of assets | 602,000 | 3,019,000 | ||
Cost of Products Sold [Member] | ||||
Detail of the restructuring costs [Abstract] | ||||
Employee separation | 0 | 0 | ||
Long-lived asset impairment | 0 | 0 | ||
Gain on asset sales | 0 | 0 | ||
Write-down of inventory | 1,914,000 | 1,840,000 | ||
Other Costs | 0 | [1] | 0 | [2] |
Restructuring cost by segment [Abstract] | ||||
Continuing Operations | 1,914,000 | 1,840,000 | ||
Summary of accrual for restructuring and other charges [Abstract] | ||||
Gain on sale of assets | 0 | 0 | ||
Flavors & Fragrances [Member] | ||||
Restructuring cost by segment [Abstract] | ||||
Continuing Operations | 83,871,000 | 22,284,000 | ||
Color [Member] | ||||
Restructuring cost by segment [Abstract] | ||||
Continuing Operations | 0 | 7,065,000 | ||
Corporate & Other [Member] | ||||
Restructuring cost by segment [Abstract] | ||||
Continuing Operations | 6,679,000 | 2,386,000 | ||
Discontinued Operations | 10,998,000 | 0 | ||
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 costs, professional services, personnel (other than employee separations) and moving related costs. |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Certain Consolidated Condensed Statements of Earnings information for discontinued operations [Abstract] | |||
Net sales | $5,197 | $5,424 | $5,495 |
Loss from discontinued operations before income taxes | -11,496 | -1,418 | -1,671 |
Income tax benefit | 3,371 | 415 | 497 |
Loss from discontinued operations, net of tax | -8,125 | -1,003 | -1,174 |
Pre-tax restructuring costs from discontinued operations | $10,998 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating leases, future minimum payments due [Abstract] | |||
Operating leases, due in 2015 | $7.70 | ||
Operating leases, due in 2016 | 4.3 | ||
Operating leases, due in 2017 | 2.5 | ||
Operating leases, due in 2018 | 1.8 | ||
Operating leases, due in 2019 | 1.4 | ||
Operating leases, due thereafter | 1.8 | ||
Rent expense | $10.70 | $10.60 | $10.70 |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Period | $4,327 | $3,045 | $3,588 | |||
Additions Charged to Costs and Expenses | 896 | 1,413 | 745 | |||
Additions Recorded During Acquisitions | 0 | 0 | 0 | |||
Deductions | 1,385 | [1] | 130 | [1] | 1,288 | [1] |
Balance at End of Period | $3,838 | $4,327 | $3,045 | |||
[1] | Accounts written off, net of recoveries. |