Sensient Technologies (SXT) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	SENSIENT TECHNOLOGIES CORP
Entity Central Index Key	310,142
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		45,829,475
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract]
Revenue	$ 346,009	$ 373,373	$ 692,235	$ 740,498
Cost of products sold	227,854	243,965	456,647	486,594
Selling and administrative expenses	73,088	79,664	144,075	195,574
Operating income	45,067	49,744	91,513	58,330
Interest expense	4,106	3,718	8,021	7,849
Earnings (Loss) before income taxes	40,961	46,026	83,492	50,481
Income taxes	11,419	15,879	23,215	17,703
Earnings from continuing operations	29,542	30,147	60,277	32,778
Loss from discontinued operations, net of tax	(92)	(1,086)	(301)	(5,792)
Net earnings	$ 29,450	$ 29,061	$ 59,976	$ 26,986
Weighted average number of shares outstanding:
Basic (in shares)	46,168	48,665	46,670	49,256
Diluted (in shares)	46,470	48,953	46,984	49,512
Basic:
Continuing operations (in dollars per share)	$ 0.64	$ 0.62	$ 1.29	$ 0.67
Discontinued operations (in dollars per share)	0	(0.02)	(0.01)	(0.12)
Earnings per common share (in dollars per share)	0.64	0.60	1.29	0.55
Diluted:
Continuing operations (in dollars per share)	0.64	0.62	1.28	0.66
Discontinued operations (in dollars per share)	0	(0.02)	(0.01)	(0.12)
Earnings per common share (in dollars per share)	0.63	0.59	1.28	0.55
Dividends declared per common share (in dollars per share)	$ 0.25	$ 0	$ 0.50	$ 0.48

CONSOLIDATED CONDENSED STATEME3

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Comprehensive Income	$ 48,758	$ 34,130	$ 17,845	$ 32,210

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 21,785	$ 20,329
Trade accounts receivable, net	248,110	228,907
Inventories	428,444	449,409
Prepaid expenses and other current assets	38,425	37,713
Deferred income taxes	21,977	21,735
Assets held for sale	2,057	1,296
TOTAL CURRENT ASSETS	760,798	759,389
OTHER ASSETS	72,097	77,376
INTANGIBLE ASSETS, NET	10,416	8,760
GOODWILL	413,503	424,114
PROPERTY, PLANT AND EQUIPMENT:
Land	37,808	42,868
Buildings	283,807	295,381
Machinery and equipment	711,337	723,631
Construction in progress	57,557	54,579
Property, Plant and Equipment, Gross, Total	1,090,509	1,116,459
Less accumulated depreciation	(613,693)	(620,892)
Property, Plant and Equipment, Net, Total	476,816	495,567
TOTAL ASSETS	1,733,630	1,765,206
CURRENT LIABILITIES:
Trade accounts payable	106,960	99,033
Accrued salaries, wages and withholdings from employees	24,913	30,010
Other accrued expenses	71,012	76,383
Income taxes	3,847	3,591
Short-term borrowings	24,073	15,888
TOTAL CURRENT LIABILITIES	230,805	224,905
OTHER LIABILITIES	11,620	17,372
ACCRUED EMPLOYEE AND RETIREE BENEFITS	25,498	24,983
LONG-TERM DEBT	549,475	451,011
SHAREHOLDERS' EQUITY:
Common stock	5,396	5,396
Additional paid-in capital	111,204	110,969
Earnings reinvested in the business	1,280,003	1,243,627
Treasury stock, at cost	(353,112)	(227,929)
Accumulated other comprehensive loss	(127,259)	(85,128)
TOTAL SHAREHOLDERS' EQUITY	916,232	1,046,935
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,733,630	$ 1,765,206

CONSOLIDATED CONDENSED STATEME5

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net earnings	$ 59,976	$ 26,986
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization	24,258	26,395
Share-based compensation	711	2,849
Loss on assets	6,168	48,260
Deferred income taxes	3,032	(6,590)
Changes in operating assets and liabilities	(17,268)	(28,461)
Net cash provided by operating activities	76,877	69,439
Cash flows from investing activities:
Acquisition of property, plant and equipment	(36,970)	(29,752)
Proceeds from sale of assets	12,627	930
Acquisition of new business	(8,393)	0
Other investing activity	(101)	(620)
Net cash used in investing activities	(32,837)	(29,442)
Cash flows from financing activities:
Proceeds from additional borrowings	130,240	174,741
Debt payments	(20,097)	(73,478)
Purchase of treasury stock	(123,094)	(108,753)
Dividends paid	(23,600)	(23,809)
Proceeds from options exercised and other equity transactions	554	396
Net cash used in financing activities	(35,997)	(30,903)
Effect of exchange rate changes on cash and cash equivalents	(6,587)	(502)
Net increase in cash and cash equivalents	1,456	8,592
Cash and cash equivalents at beginning of period	20,329	19,836
Cash and cash equivalents at end of period	$ 21,785	$ 28,428

Accounting Policies

Accounting Policies	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract ]
Accounting Policies	1. Accounting Policies In the opinion of Sensient Technologies Corporation (the “Company”), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) which are necessary to present fairly the financial position of the Company as of June 30, 2015, and December 31, 2014, the results of operations and comprehensive income for the three and six months ended June 30, 2015 and 2014, and cash flows for the six months ended June 30, 2015 and 2014. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred. However, for interim reporting purposes, certain expenses are charged to operations based on a proportionate share of estimated annual amounts rather than as they are actually incurred. In interim periods, depreciation expense is estimated using actual depreciation on fixed assets that have been placed in service at the beginning of the year, combined with an estimate of depreciation expense on expected current year additions. On July 9, 2015, the Financial Accounting Standards Board (“FASB”) affirmed its proposed one-year deferral of the effective date for Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. Refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2014, for additional details of the Company's financial condition and a description of the Company’s accounting policies, which have been continued without change.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2015
Acquisitions [Abstract]
Acquisitions	2. Acquisitions On June 29, 2015, the Company completed the acquisition of the net assets and business of Xennia Technology Ltd. (“Xennia”). The Company paid $8.4 million of cash for this acquisition. Xennia is a European manufacturer of specialty inks used in digital printing. Xennia’s operations are included in the Color segment. The assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date. The purchase price exceeded the carrying value of the net assets by approximately $6 million. The excess was allocated to intangible assets, principally technological know-how, and goodwill. The Company recorded $0.9 million of acquisition related costs.

Fair Value

Fair Value	6 Months Ended
	Jun. 30, 2015
Fair Value [Abstract]
Fair Value	3. Fair Value Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures The carrying values of the Company’s cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses and short-term borrowings approximated fair values as of June 30, 2015. The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2 inputs). The carrying value of the long-term debt at June 30, 2015, was $549.5 million. The fair value of the long-term debt at June 30, 2015, was $562.6 million.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Information [Abstract]
Segment Information	4. Segment Information Operating results by segment for the periods presented are as follows: (In thousands) Flavors & Fragrances Color Corporate & Other Consolidated Three months ended June 30, 2015: Revenue from external customers $ 198,077 $ 114,078 $ 33,854 $ 346,009 Intersegment revenue 6,555 5,271 53 11,879 Total revenue $ 204,632 $ 119,349 $ 33,907 $ 357,888 Operating income (loss) $ 32,526 $ 24,808 $ (12,267 ) $ 45,067 Interest expense - - 4,106 4,106 Earnings (loss) before income taxes $ 32,526 $ 24,808 $ (16,373 ) $ 40,961 Three months ended June 30, 2014: Revenue from external customers $ 211,266 $ 126,833 $ 35,274 $ 373,373 Intersegment revenue 6,224 5,401 111 11,736 Total revenue $ 217,490 $ 132,234 $ 35,385 $ 385,109 Operating income (loss) $ 34,144 $ 30,726 $ (15,126 ) $ 49,744 Interest expense - - 3,718 3,718 Earnings (loss) before income taxes $ 34,144 $ 30,726 $ (18,844 ) $ 46,026 (In thousands) Flavors & Fragrances Color Corporate & Other Consolidated Six months ended June 30, 2015: Revenue from external customers $ 397,177 $ 229,615 $ 65,443 $ 692,235 Intersegment revenue 13,433 10,249 85 23,767 Total revenue $ 410,610 $ 239,864 $ 65,528 $ 716,002 Operating income (loss) $ 62,985 $ 50,947 $ (22,419 ) $ 91,513 Interest expense - - 8,021 8,021 Earnings (loss) before income taxes $ 62,985 $ 50,947 $ (30,440 ) $ 83,492 Six months ended June 30, 2014: Revenue from external customers $ 418,128 $ 254,855 $ 67,515 $ 740,498 Intersegment revenue 13,695 10,370 111 24,176 Total revenue $ 431,823 $ 265,225 $ 67,626 $ 764,674 Operating income (loss) $ 64,388 $ 60,500 $ (66,558 ) $ 58,330 Interest expense - - 7,849 7,849 Earnings (loss) before income taxes $ 64,388 $ 60,500 $ (74,407 ) $ 50,481 Beginning in the first quarter of 2015, the results of operations for the Company’s businesses in Central and South America, previously reported in the Corporate & Other segment, are now reported in the Flavors & Fragrances segment. Results for 2014 have been restated to reflect these changes. The Company evaluates performance based on operating income of the respective segments before restructuring and other costs, interest expense and income taxes. The 2015 and 2014 restructuring, acquisition, and other costs related to continuing operations are reported in the Corporate & Other segment.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2015
Inventories [Abstract]
Inventories	5. Inventories At June 30, 2015, and December 31, 2014, inventories included finished and in-process products totaling $306.2 million and $308.7 million, respectively, and raw materials and supplies of $122.2 million and $140.7 million, respectively.

Retirement Plans

Retirement Plans	6 Months Ended
	Jun. 30, 2015
Retirement Plans [Abstract]
Retirement Plans	6. Retirement Plans The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Service cost $ 661 $ 635 $ 1,323 $ 1,267 Interest cost 473 603 945 1,202 Expected return on plan assets (324 ) (480 ) (646 ) (954 ) Amortization of prior service cost - 43 - 86 Amortization of actuarial loss (gain) 74 (157 ) 147 (317 ) Curtailment gain - (115 ) - (115 ) Total defined benefit expense $ 884 $ 529 $ 1,769 $ 1,169

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2015
Shareholders' Equity [Abstract]
Shareholders' Equity	7. Shareholders’ Equity The Company repurchased 1.0 million and 1.9 million shares of its common stock for an aggregate cost of $66.3 million and $127.2 million during the three and six months ended June 30, 2015, respectively, and 1.8 million and 2.0 million shares of its common stock for an aggregate price of $97.8 million and $108.8 million during the three and six months ended June 30, 2014, respectively. The amount of treasury stock purchases reported in the Company’s Consolidated Condensed Statements of Cash Flow represent purchases that have settled within each respective quarter.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activity	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activity [Abstract]
Derivative Instruments and Hedging Activity	8. Derivative Instruments and Hedging Activity The Company may use forward exchange contracts and foreign currency denominated debt to manage its exposure to foreign exchange risk by reducing the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales and other known foreign currency exposures. These forward exchange contracts have maturities of less than twelve months. The Company’s primary hedging activities and their accounting treatment are summarized below: Forward exchange contracts Net investment hedges

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes [Abstract]
Income Taxes	9. Income Taxes The effective income tax rates for continuing operations for the quarters ended June 30, 2015 and 2014, were 27.9% and 34.5%, respectively. For the six-month periods ended June 30, 2015 and 2014, the effective income tax rates for continuing operations were 27.8% and 35.1%, respectively. The rates in both periods were impacted by the respective restructuring costs which were more significant in 2014. In addition, the 2015 rate was lower due to the mix of foreign earnings. Both the 2015 and 2014 rates were also impacted by changes in estimates associated with the finalization of prior year foreign and domestic tax items and audit settlements.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	6 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Income [Abstract]
Accumulated Other Comprehensive Income	10. Accumulated Other Comprehensive Income The following table summarizes the changes in Accumulated Other Comprehensive Income (OCI) during the three- and six-month periods ended June 30, 2015: Three Months Ended June 30, 2015 (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balance as of March 31, 2015 $ 395 $ (5,121 ) $ (141,841 ) $ (146,567 ) Other comprehensive (loss) income before reclassifications (677 ) - 19,924 19,247 Amounts reclassified from OCI 11 50 - 61 Balance as of June 30, 2015 $ (271 ) $ (5,071 ) $ (121,917 ) $ (127,259 ) Six Months Ended June 30, 2015 (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balance as of December 31, 2014 $ 324 $ (5,170 ) $ (80,282 ) $ (85,128 ) Other comprehensive loss before reclassifications (783 ) - (41,635 ) (42,418 ) Amounts reclassified from OCI 188 99 - 287 Balance as of June 30, 2015 $ (271 ) $ (5,071 ) $ (121,917 ) $ (127,259 ) (a) Cash Flow Hedges and Pension Items are net of tax.

Restructuring

Restructuring	6 Months Ended
	Jun. 30, 2015
Restructuring [Abstract]
Restructuring	11. Restructuring The Company incurred restructuring costs in both continuing and discontinued operations. The discussion in this note relates to the combination of both continuing and discontinued operations unless otherwise noted. Restructuring costs related to discontinued operations are recorded in discontinued operations within the Company’s Consolidated Condensed Statements of Earnings and are discussed in more detail in Note 12, Discontinued Operations In March of 2014, the Company announced that it was initiating a restructuring plan (2014 Restructuring Plan or “Plan”) to eliminate underperforming operations, consolidate manufacturing facilities and improve efficiencies within the Company. The Company determined that it had redundant manufacturing capabilities in both North America and Europe and that it could lower costs and operate more efficiently by consolidating into fewer facilities. The Company also discontinued one of the businesses in the Color Group because it did not fit with the Company’s long term strategic plan and it had generated losses for several years. Based on this Plan, the Company determined that certain long-lived assets associated with the underperforming operations were impaired. The Company reduced the carrying amounts of these assets to their aggregate respective fair values which were determined based on independent market valuations for these assets. The fair values of the remaining long-lived assets are estimated to be approximately $22.0 million. Also, certain machinery and equipment has been identified to be disposed of at the time of the facility closures and the associated depreciation for these assets has been accelerated. In addition, certain intangible assets and inventory were also determined to be impaired and were written down. The Company has also incurred employee separation and other restructuring costs as a result of this Plan. The Company will reduce headcount by approximately 377 positions at impacted facilities, primarily in the Flavors & Fragrances Group, related to direct and indirect labor at manufacturing sites. As of June 30, 2015, approximately 180 positions have been eliminated as a result of this Plan. For the three and six months ended June 30, 2015, the Company recorded total restructuring costs of $9.7 million and $16.9 million, respectively, in accordance with GAAP and based on an internal review of the affected facilities and consultation with legal and other advisors. Since initiating the 2014 Restructuring Plan, the Company has incurred $115.4 million of restructuring costs through June 30, 2015. During the current quarter, the Company identified an additional opportunity to consolidate certain manufacturing operations at one of the Color Group’s facilities in Europe. Including the costs related to this facility, the Company expects to incur approximately $16 million of additional restructuring costs by the end of 2015 and approximately $9 million of additional restructuring costs by the end of 2016. For the three and six months ended June 30, 2014, the Company recorded restructuring and other costs of $13.0 million and $65.7 million, respectively. Included within the restructuring and other costs, the Company incurred $2.2 million and $3.1 million, respectively, related to the 2014 proxy contest during the three and six months ended June 30, 2014. The closure of these operations will significantly lower the Company’s operating costs, which will be realized over the next few years. The full benefit of the restructuring will be achieved after 2016. For the three and six months ended June 30, 2015, the Company achieved approximately $1.6 million and $3.1 million of savings in continuing operations, respectively, related to the 2014 Restructuring Plan. Upon implementing the Plan, the Company estimated the cost reductions to be approximately $30 million, but the actual cost reductions could vary based upon changes in exchange rates and other assumptions. The Company achieved cost savings of approximately $3 million in 2014. Based on current exchange rates, the annual cost savings are estimated to be approximately $7 million in 2015, for total cost savings of $9 to $10 million through the end of 2015. Furthermore, the Company expects to realize incremental savings of approximately $6 million in 2016 and an additional $8 to $9 million in 2017. In cases where the estimated cost savings have been reduced because of changes in foreign currency exchange rates, the Company has implemented price increases to reduce the impact of foreign currency movements. The Company evaluates performance based on operating income of each segment before restructuring costs. The restructuring and other costs related to continuing operations are recorded in the Corporate & Other segment. The following table summarizes the restructuring and other costs by segment and discontinued operations for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, (In thousands) 2015 2014 Flavors & Fragrances $ 7,191 $ 9,068 Color 1,422 - Corporate & Other 1,009 2,500 Total Continuing Operations 9,622 11,568 Discontinued Operations 85 1,411 Total Restructuring $ 9,707 $ 12,979 Six Months Ended June 30, (In thousands) 2015 2014 Flavors & Fragrances $ 13,020 $ 54,051 Color 1,583 - Corporate & Other 2,134 3,704 Total Continuing Operations 16,737 57,755 Discontinued Operations 114 7,946 Total Restructuring $ 16,851 $ 65,701 The Company recorded restructuring costs in continuing operations for the three and six months ended June 30, 2015, as follows: Three Months Ended June 30, 2015 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 1,796 $ - $ 1,796 Long-lived asset impairment 3,665 - 3,665 Write-down of inventory - 140 140 Other costs (1) 4,021 - 4,021 Total $ 9,482 $ 140 $ 9,622 Six Months Ended June 30, 2015 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 3,704 $ - $ 3,704 Long-lived asset impairment 7,480 - 7,480 Gain on asset sales (1,301 ) - (1,301 ) Write-down of inventory - 281 281 Other costs (1) 6,573 - 6,573 Total $ 16,456 $ 281 $ 16,737 (1) Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs. The Company recorded restructuring and other costs in continuing operations for the three and six months ended June 30, 2014, as follows: Three Months Ended June 30, 2014 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 1,024 $ - $ 1,024 Long-lived asset impairment 8,033 - 8,033 Other costs (1) 2,511 - 2,511 Total $ 11,568 $ - $ 11,568 Six Months Ended June 30, 2014 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 12,291 $ - $ 12,291 Long-lived asset impairment 42,263 - 42,263 Gain on asset sales (602 ) - (602 ) Other costs (1) 3,803 - 3,803 Total $ 57,755 $ - $ 57,755 (1) Other costs include decommissioning, professional services, personnel moving costs, other related costs and 2014 proxy contest costs. The following table summarizes the accrual activity for the restructuring liabilities for the six months ended June 30, 2015: (In thousands) Employee Separations Other Costs Total Balance as of December 31, 2014 $ 14,909 $ 897 $ 15,806 Expense activity 3,313 7,130 10,443 Cash spent (4,977 ) (7,344 ) (12,321 ) Translation adjustment (967 ) - (967 ) Balance as of June 30, 2015 $ 12,278 $ 683 $ 12,961

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2015
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. In 2014, the business met the criteria to be presented as a discontinued operation as established in ASC Subtopic 205-20, Discontinued Operations The following table summarizes the discontinued operation’s results for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Revenue $ - $ 1,293 $ 187 $ 2,299 Loss from discontinued operations before income taxes (134 ) (1,535 ) (428 ) (8,542 ) Income tax benefit 42 449 127 2,750 Loss from discontinued operations, net of tax $ (92 ) $ (1,086 ) $ (301 ) $ (5,792 ) Pre-tax restructuring costs are included in the loss before income taxes from discontinued operations. For the three and six months ended June 30, 2015, the restructuring costs were $0.1 million in both periods and for the three and six months ended June 30, 2014, these costs were $1.4 million and $7.9 million, respectively. See Note 11, Restructuring,

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies 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.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Information [Abstract]
Segment information	Operating results by segment for the periods presented are as follows: (In thousands) Flavors & Fragrances Color Corporate & Other Consolidated Three months ended June 30, 2015: Revenue from external customers $ 198,077 $ 114,078 $ 33,854 $ 346,009 Intersegment revenue 6,555 5,271 53 11,879 Total revenue $ 204,632 $ 119,349 $ 33,907 $ 357,888 Operating income (loss) $ 32,526 $ 24,808 $ (12,267 ) $ 45,067 Interest expense - - 4,106 4,106 Earnings (loss) before income taxes $ 32,526 $ 24,808 $ (16,373 ) $ 40,961 Three months ended June 30, 2014: Revenue from external customers $ 211,266 $ 126,833 $ 35,274 $ 373,373 Intersegment revenue 6,224 5,401 111 11,736 Total revenue $ 217,490 $ 132,234 $ 35,385 $ 385,109 Operating income (loss) $ 34,144 $ 30,726 $ (15,126 ) $ 49,744 Interest expense - - 3,718 3,718 Earnings (loss) before income taxes $ 34,144 $ 30,726 $ (18,844 ) $ 46,026 (In thousands) Flavors & Fragrances Color Corporate & Other Consolidated Six months ended June 30, 2015: Revenue from external customers $ 397,177 $ 229,615 $ 65,443 $ 692,235 Intersegment revenue 13,433 10,249 85 23,767 Total revenue $ 410,610 $ 239,864 $ 65,528 $ 716,002 Operating income (loss) $ 62,985 $ 50,947 $ (22,419 ) $ 91,513 Interest expense - - 8,021 8,021 Earnings (loss) before income taxes $ 62,985 $ 50,947 $ (30,440 ) $ 83,492 Six months ended June 30, 2014: Revenue from external customers $ 418,128 $ 254,855 $ 67,515 $ 740,498 Intersegment revenue 13,695 10,370 111 24,176 Total revenue $ 431,823 $ 265,225 $ 67,626 $ 764,674 Operating income (loss) $ 64,388 $ 60,500 $ (66,558 ) $ 58,330 Interest expense - - 7,849 7,849 Earnings (loss) before income taxes $ 64,388 $ 60,500 $ (74,407 ) $ 50,481

Retirement Plans (Tables)

Retirement Plans (Tables)	6 Months Ended
	Jun. 30, 2015
Retirement Plans [Abstract]
Components of annual benefit cost	The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Service cost $ 661 $ 635 $ 1,323 $ 1,267 Interest cost 473 603 945 1,202 Expected return on plan assets (324 ) (480 ) (646 ) (954 ) Amortization of prior service cost - 43 - 86 Amortization of actuarial loss (gain) 74 (157 ) 147 (317 ) Curtailment gain - (115 ) - (115 ) Total defined benefit expense $ 884 $ 529 $ 1,769 $ 1,169

Accumulated Other Comprehensi21

Accumulated Other Comprehensive Income (Tables)	6 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Income [Abstract]
Changes in accumulated other comprehensive income (AOCI)	The following table summarizes the changes in Accumulated Other Comprehensive Income (OCI) during the three- and six-month periods ended June 30, 2015: Three Months Ended June 30, 2015 (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balance as of March 31, 2015 $ 395 $ (5,121 ) $ (141,841 ) $ (146,567 ) Other comprehensive (loss) income before reclassifications (677 ) - 19,924 19,247 Amounts reclassified from OCI 11 50 - 61 Balance as of June 30, 2015 $ (271 ) $ (5,071 ) $ (121,917 ) $ (127,259 ) Six Months Ended June 30, 2015 (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balance as of December 31, 2014 $ 324 $ (5,170 ) $ (80,282 ) $ (85,128 ) Other comprehensive loss before reclassifications (783 ) - (41,635 ) (42,418 ) Amounts reclassified from OCI 188 99 - 287 Balance as of June 30, 2015 $ (271 ) $ (5,071 ) $ (121,917 ) $ (127,259 ) (a) Cash Flow Hedges and Pension Items are net of tax.

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Jun. 30, 2015
Restructuring [Abstract]
Restructuring cost by segment	The following table summarizes the restructuring and other costs by segment and discontinued operations for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, (In thousands) 2015 2014 Flavors & Fragrances $ 7,191 $ 9,068 Color 1,422 - Corporate & Other 1,009 2,500 Total Continuing Operations 9,622 11,568 Discontinued Operations 85 1,411 Total Restructuring $ 9,707 $ 12,979 Six Months Ended June 30, (In thousands) 2015 2014 Flavors & Fragrances $ 13,020 $ 54,051 Color 1,583 - Corporate & Other 2,134 3,704 Total Continuing Operations 16,737 57,755 Discontinued Operations 114 7,946 Total Restructuring $ 16,851 $ 65,701
Summary of restructuring costs	The Company recorded restructuring costs in continuing operations for the three and six months ended June 30, 2015, as follows: Three Months Ended June 30, 2015 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 1,796 $ - $ 1,796 Long-lived asset impairment 3,665 - 3,665 Write-down of inventory - 140 140 Other costs (1) 4,021 - 4,021 Total $ 9,482 $ 140 $ 9,622 Six Months Ended June 30, 2015 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 3,704 $ - $ 3,704 Long-lived asset impairment 7,480 - 7,480 Gain on asset sales (1,301 ) - (1,301 ) Write-down of inventory - 281 281 Other costs (1) 6,573 - 6,573 Total $ 16,456 $ 281 $ 16,737 (1) Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs. The Company recorded restructuring and other costs in continuing operations for the three and six months ended June 30, 2014, as follows: Three Months Ended June 30, 2014 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 1,024 $ - $ 1,024 Long-lived asset impairment 8,033 - 8,033 Other costs (1) 2,511 - 2,511 Total $ 11,568 $ - $ 11,568 Six Months Ended June 30, 2014 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 12,291 $ - $ 12,291 Long-lived asset impairment 42,263 - 42,263 Gain on asset sales (602 ) - (602 ) Other costs (1) 3,803 - 3,803 Total $ 57,755 $ - $ 57,755 (1) Other costs include decommissioning, professional services, personnel moving costs, other related costs and 2014 proxy contest costs.
Summary of accrual for restructuring and other charges	The following table summarizes the accrual activity for the restructuring liabilities for the six months ended June 30, 2015: (In thousands) Employee Separations Other Costs Total Balance as of December 31, 2014 $ 14,909 $ 897 $ 15,806 Expense activity 3,313 7,130 10,443 Cash spent (4,977 ) (7,344 ) (12,321 ) Translation adjustment (967 ) - (967 ) Balance as of June 30, 2015 $ 12,278 $ 683 $ 12,961

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2015
Discontinued Operations [Abstract]
Schedule of certain Consolidated Condensed Statements of Earnings information for discontinued operations	The following table summarizes the discontinued operation’s results for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Revenue $ - $ 1,293 $ 187 $ 2,299 Loss from discontinued operations before income taxes (134 ) (1,535 ) (428 ) (8,542 ) Income tax benefit 42 449 127 2,750 Loss from discontinued operations, net of tax $ (92 ) $ (1,086 ) $ (301 ) $ (5,792 )

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	Jun. 29, 2015	Jun. 30, 2015	Jun. 30, 2014
Business Acquisition [Line Items]
Payments to acquire business		$ 8,393	$ 0
Xennia Technology Ltd. [Member]
Business Acquisition [Line Items]
Payments to acquire business	$ 8,393
Purchase price excess on carrying value of the net assets allocated to intangible assets and goodwill	6,000
Acquisition related costs	$ 900

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 2.7	$ 1.9
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Forward exchange contracts, liability	0.5	$ 0.1
Level 2 [Member] | Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term debt	549.5
Level 2 [Member] | Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term debt	$ 562.6

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Revenue from external customers	$ 346,009	$ 373,373	$ 692,235	$ 740,498
Total Revenue	357,888	385,109	716,002	764,674
Operating income (loss)	45,067	49,744	91,513	58,330
Interest expense	4,106	3,718	8,021	7,849
Earnings (Loss) before income taxes	40,961	46,026	83,492	50,481
Flavors & Fragrances [Member]
Segment Reporting Information [Line Items]
Total Revenue	204,632	217,490	410,610	431,823
Color [Member]
Segment Reporting Information [Line Items]
Total Revenue	119,349	132,234	239,864	265,225
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total Revenue	33,907	35,385	65,528	67,626
Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	346,009	373,373	692,235	740,498
Operating Segments [Member] | Flavors & Fragrances [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	198,077	211,266	397,177	418,128
Operating income (loss)	32,526	34,144	62,985	64,388
Interest expense	0	0	0	0
Earnings (Loss) before income taxes	32,526	34,144	62,985	64,388
Operating Segments [Member] | Color [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	114,078	126,833	229,615	254,855
Operating income (loss)	24,808	30,726	50,947	60,500
Interest expense	0	0	0	0
Earnings (Loss) before income taxes	24,808	30,726	50,947	60,500
Operating Segments [Member] | Corporate and Other [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	33,854	35,274	65,443	67,515
Operating income (loss)	(12,267)	(15,126)	(22,419)	(66,558)
Interest expense	4,106	3,718	8,021	7,849
Earnings (Loss) before income taxes	(16,373)	(18,844)	(30,440)	(74,407)
Intersegment Revenue [Member]
Segment Reporting Information [Line Items]
Total Revenue	11,879	11,736	23,767	24,176
Intersegment Revenue [Member] | Flavors & Fragrances [Member]
Segment Reporting Information [Line Items]
Total Revenue	6,555	6,224	13,433	13,695
Intersegment Revenue [Member] | Color [Member]
Segment Reporting Information [Line Items]
Total Revenue	5,271	5,401	10,249	10,370
Intersegment Revenue [Member] | Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total Revenue	$ 53	$ 111	$ 85	$ 111

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Inventories [Abstract]
Inventories, including finished and in-process products	$ 306.2	$ 308.7
Raw materials and supplies	$ 122.2	$ 140.7

Retirement Plans (Details)

Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 661	$ 635	$ 1,323	$ 1,267
Interest cost	473	603	945	1,202
Expected return on plan assets	(324)	(480)	(646)	(954)
Amortization of prior service cost	0	43	0	86
Amortization of actuarial loss (gain)	74	(157)	147	(317)
Curtailment gain	0	(115)	0	(115)
Total defined benefit expense	$ 884	$ 529	$ 1,769	$ 1,169

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Shareholders' Equity [Abstract]
Common stock repurchased during the period (in shares)	1	1.8	1.9	2
Common stock repurchased during the period, value	$ 66.3	$ 97.8	$ 127.2	$ 108.8

Derivative Instruments and He30

Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Derivative instruments and hedging activity for the period [Abstract]
Impact of foreign exchange rates on debt instruments recorded in Other Comprehensive Income	$ 3.5	$ (3.8)
Forward Exchange Contracts [Member] | Cash Flow Hedges [Member]
Derivative instruments and hedging activity for the period [Abstract]
Derivative, fair value	28.4	28.4	$ 17.8
Foreign Currency Denominated Debt, Net Investment Hedging [Member]
Derivative instruments and hedging activity for the period [Abstract]
Carrying value of foreign denominated debt	$ 93.5	$ 93.5	$ 97.3

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Taxes [Abstract]
Effective income tax rates (in hundredths)	27.90%	34.50%	27.80%	35.10%

Accumulated Other Comprehensi32

Accumulated Other Comprehensive Income (Details) - Jun. 30, 2015 - USD ($) $ in Thousands		Total	Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), Beginning balance		$ (146,567)	$ (85,128)
Other comprehensive loss before reclassifications		19,247	(42,418)
Amounts reclassified from OCI		61	287
Accumulated other comprehensive income (loss), Ending balance		(127,259)	(127,259)
Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), Beginning balance	[1]	395	324
Other comprehensive loss before reclassifications	[1]	(677)	(783)
Amounts reclassified from OCI	[1]	11	188
Accumulated other comprehensive income (loss), Ending balance	[1]	(271)	(271)
Pension Items [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), Beginning balance	[1]	(5,121)	(5,170)
Other comprehensive loss before reclassifications	[1]	0	0
Amounts reclassified from OCI	[1]	50	99
Accumulated other comprehensive income (loss), Ending balance	[1]	(5,071)	(5,071)
Foreign Currency Items [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated other comprehensive income (loss), Beginning balance		(141,841)	(80,282)
Other comprehensive loss before reclassifications		19,924	(41,635)
Amounts reclassified from OCI		0	0
Accumulated other comprehensive income (loss), Ending balance		$ (121,917)	$ (121,917)
[1]	Cash Flow Hedges and Pension Items are net of tax.

Restructuring (Details)

Restructuring (Details) $ in Thousands	3 Months Ended				6 Months Ended				12 Months Ended
	Jun. 30, 2015USD ($)		Jun. 30, 2014USD ($)		Jun. 30, 2015USD ($)Positions		Jun. 30, 2014USD ($)		Dec. 31, 2014USD ($)
Restructuring Cost and Reserve [Line Items]
Position reduction due to restructuring | Positions					377
Number of positions eliminated due to restructuring | Positions					180
Total restructuring costs incurred to date	$ 115,400				$ 115,400
Savings recognized in restructuring plan	1,600				3,100				$ 3,000
Estimated cost savings due to restructuring	30,000
Estimated cost savings in 2015	7,000
Expected incremental savings in 2016	6,000				6,000
Estimated fair values of the remaining long-lived assets	22,000				22,000
Restructuring cost by segment [Abstract]
Total Continuing Operations	9,622		$ 11,568		16,737		$ 57,755
Discontinued Operations	85		1,411		114		7,946
Total Restructuring	9,707		12,979		16,851		65,701
Detail of the restructuring costs [Abstract]
Employee separation	1,796		1,024		3,704		12,291
Long-lived asset impairment	3,665		8,033		7,480		42,263
Gain on asset sales					(1,301)		(602)
Write-down of inventory	140				281
Other costs	4,021	[1]	2,511	[2]	6,573	[1]	3,803	[2]
Future restructuring costs, current year	16,000
Future restructuring costs, 2016	9,000				9,000
Summary of accrual for restructuring and other charges [Abstract]
Balance as of December 31, 2014					15,806
Expense activity					10,443
Cash spent					(12,321)
Translation adjustment					(967)
Balance as of June 30, 2015	12,961				12,961				15,806
Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Estimated cost savings in through the end of 2015	9,000				9,000
Expected incremental savings in 2017	8,000				8,000
Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Estimated cost savings in through the end of 2015	10,000				10,000
Expected incremental savings in 2017	9,000				9,000
Selling & Administrative [Member]
Restructuring cost by segment [Abstract]
Total Continuing Operations	9,482		11,568		16,456		57,755
Detail of the restructuring costs [Abstract]
Employee separation	1,796		1,024		3,704		12,291
Long-lived asset impairment	3,665		8,033		7,480		42,263
Gain on asset sales					(1,301)		(602)
Write-down of inventory	0				0
Other costs	4,021	[1]	2,511	[2]	6,573	[1]	3,803	[2]
Cost of Products Sold [Member]
Restructuring cost by segment [Abstract]
Total Continuing Operations	140		0		281		0
Detail of the restructuring costs [Abstract]
Employee separation	0		0		0		0
Long-lived asset impairment	0		0		0		0
Gain on asset sales					0		0
Write-down of inventory	140				281
Other costs	0	[1]	0	[2]	0	[1]	0	[2]
Flavors & Fragrances [Member]
Restructuring cost by segment [Abstract]
Total Continuing Operations	7,191		9,068		13,020		54,051
Color [Member]
Restructuring cost by segment [Abstract]
Total Continuing Operations	1,422		0		1,583		0
Corporate & Other [Member]
Restructuring cost by segment [Abstract]
Total Continuing Operations	1,009		2,500		2,134		3,704
2014 Proxy Contest [Member]
Detail of the restructuring costs [Abstract]
Other costs			$ 2,200				$ 3,100
Employee Separations [Member]
Summary of accrual for restructuring and other charges [Abstract]
Balance as of December 31, 2014					14,909
Expense activity					3,313
Cash spent					(4,977)
Translation adjustment					(967)
Balance as of June 30, 2015	12,278				12,278				14,909
Other Costs [Member]
Summary of accrual for restructuring and other charges [Abstract]
Balance as of December 31, 2014					897
Expense activity					7,130
Cash spent					(7,344)
Translation adjustment					0
Balance as of June 30, 2015	$ 683				$ 683				$ 897
[1]	Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs.
[2]	Other costs include decommissioning, professional services, personnel moving costs, other related costs and 2014 proxy contest costs.

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Certain Consolidated Condensed Statements of Earnings information for discontinued operations [Abstract]
Revenue	$ 0	$ 1,293	$ 187	$ 2,299
Loss from discontinued operations before income taxes	(134)	(1,535)	(428)	(8,542)
Income tax benefit	42	449	127	2,750
Loss from discontinued operations, net of tax	(92)	(1,086)	(301)	(5,792)
Pre-tax restructuring costs from discontinued operations	$ 85	$ 1,411	$ 114	$ 7,946