Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 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 | 45,221,215 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract] | ||||
Revenue | $ 344,533 | $ 364,504 | $ 1,036,768 | $ 1,105,002 |
Cost of products sold | 231,761 | 243,003 | 688,408 | 729,597 |
Selling and administrative expenses | 69,552 | 85,407 | 213,627 | 280,981 |
Operating income | 43,220 | 36,094 | 134,733 | 94,424 |
Interest expense | 4,295 | 4,016 | 12,316 | 11,866 |
Earnings (loss) before income taxes | 38,925 | 32,078 | 122,417 | 82,558 |
Income taxes | 11,287 | 9,414 | 34,502 | 27,116 |
Earnings from continuing operations | 27,638 | 22,664 | 87,915 | 55,442 |
Loss from discontinued operations, net of tax | (47) | (1,359) | (348) | (7,151) |
Net earnings | $ 27,591 | $ 21,305 | $ 87,567 | $ 48,291 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 45,392 | 47,902 | 46,239 | 48,799 |
Diluted (in shares) | 45,675 | 48,230 | 46,543 | 49,080 |
Basic: | ||||
Continuing operations (in dollars per share) | $ 0.61 | $ 0.47 | $ 1.90 | $ 1.14 |
Discontinued operations (in dollars per share) | 0 | (0.03) | (0.01) | (0.15) |
Earnings per common share (in dollars per share) | 0.61 | 0.44 | 1.89 | 0.99 |
Diluted: | ||||
Continuing operations (in dollars per share) | 0.61 | 0.47 | 1.89 | 1.13 |
Discontinued operations (in dollars per share) | 0 | (0.03) | (0.01) | (0.15) |
Earnings per common share (in dollars per share) | 0.60 | 0.44 | 1.88 | 0.98 |
Dividends declared per common share (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.77 | $ 0.73 |
CONSOLIDATED CONDENSED STATEME3
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Comprehensive Income (Loss) | $ 7,077 | $ (35,509) | $ 24,922 | $ (3,299) |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 24,180 | $ 20,329 |
Trade accounts receivable, net | 246,166 | 228,907 |
Inventories | 442,352 | 449,409 |
Prepaid expenses and other current assets | 41,710 | 37,713 |
Deferred income taxes | 22,171 | 21,735 |
Assets held for sale | 1,963 | 1,296 |
TOTAL CURRENT ASSETS | 778,542 | 759,389 |
OTHER ASSETS | 71,148 | 77,376 |
INTANGIBLE ASSETS, NET | 9,479 | 8,760 |
GOODWILL | 408,540 | 424,114 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land | 37,388 | 42,868 |
Buildings | 281,379 | 295,381 |
Machinery and equipment | 711,340 | 723,631 |
Construction in progress | 67,117 | 54,579 |
Property, Plant and Equipment, Gross, Total | 1,097,224 | 1,116,459 |
Less accumulated depreciation | (621,284) | (620,892) |
Property, Plant and Equipment, Net, Total | 475,940 | 495,567 |
TOTAL ASSETS | 1,743,649 | 1,765,206 |
CURRENT LIABILITIES: | ||
Trade accounts payable | 110,077 | 99,033 |
Accrued salaries, wages and withholdings from employees | 25,524 | 30,010 |
Other accrued expenses | 68,617 | 76,383 |
Income taxes | 1,738 | 3,591 |
Short-term borrowings | 24,945 | 15,888 |
TOTAL CURRENT LIABILITIES | 230,901 | 224,905 |
OTHER LIABILITIES | 11,305 | 17,372 |
ACCRUED EMPLOYEE AND RETIREE BENEFITS | 24,684 | 24,983 |
LONG-TERM DEBT | 604,629 | 451,011 |
SHAREHOLDERS' EQUITY: | ||
Common stock | 5,396 | 5,396 |
Additional paid-in capital | 110,507 | 110,969 |
Earnings reinvested in the business | 1,295,293 | 1,243,627 |
Treasury stock, at cost | (391,293) | (227,929) |
Accumulated other comprehensive loss | (147,773) | (85,128) |
TOTAL SHAREHOLDERS' EQUITY | 872,130 | 1,046,935 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,743,649 | $ 1,765,206 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net earnings | $ 87,567 | $ 48,291 |
Adjustments to arrive at net cash provided by operating activities: | ||
Depreciation and amortization | 36,374 | 39,461 |
Share-based compensation | 14 | 4,035 |
Loss on assets | 8,725 | 66,553 |
Deferred income taxes | 4,466 | (8,562) |
Changes in operating assets and liabilities | (43,672) | (22,669) |
Net cash provided by operating activities | 93,474 | 127,109 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (55,508) | (46,726) |
Proceeds from sale of assets | 12,826 | 926 |
Acquisition of new business | (8,393) | 0 |
Other investing activity | (168) | (685) |
Net cash used in investing activities | (51,243) | (46,485) |
Cash flows from financing activities: | ||
Proceeds from additional borrowings | 198,857 | 191,060 |
Debt payments | (31,850) | (115,636) |
Purchase of treasury stock | (160,990) | (108,753) |
Dividends paid | (35,901) | (35,861) |
Proceeds from options exercised and other equity transactions | 554 | 576 |
Net cash used in financing activities | (29,330) | (68,614) |
Effect of exchange rate changes on cash and cash equivalents | (9,050) | (6,057) |
Net increase in cash and cash equivalents | 3,851 | 5,953 |
Cash and cash equivalents at beginning of period | 20,329 | 19,836 |
Cash and cash equivalents at end of period | $ 24,180 | $ 25,789 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 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 September 30, 2015, and December 31, 2014, the results of operations and comprehensive income for the three and nine months ended September 30, 2015 and 2014, and cash flows for the nine months ended September 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 September 25, 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-16, Simplifying the Accounting for Measurement-Period Adjustments On July 22, 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory On July 9, 2015, the FASB affirmed its proposed one-year deferral of the effective date for ASU No. 2014-09, Revenue from Contracts with Customers. On April 7, 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements 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 | 9 Months Ended |
Sep. 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, trade name, and goodwill. The Company incurred an immaterial amount of costs related to the acquisition for the three months ended September 30, 2015 and incurred $0.9 million of acquisition related costs for the nine months ended September 30, 2015, which are recorded in the Corporate & Other segment. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 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 September 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 September 30, 2015, was $604.6 million. The fair value of the long-term debt at September 30, 2015, was $617.0 million. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 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 September 30, 2015: Revenue from external customers $ 201,049 $ 112,047 $ 31,437 $ 344,533 Intersegment revenue 6,324 4,399 34 10,757 Total revenue $ 207,373 $ 116,446 $ 31,471 $ 355,290 Operating income (loss) $ 31,369 $ 22,859 $ (11,008 ) $ 43,220 Interest expense - - 4,295 4,295 Earnings (loss) before income taxes $ 31,369 $ 22,859 $ (15,303 ) $ 38,925 Three months ended September 30, 2014: Revenue from external customers $ 209,638 $ 122,140 $ 32,726 $ 364,504 Intersegment revenue 6,997 5,986 27 13,010 Total revenue $ 216,635 $ 128,126 $ 32,753 $ 377,514 Operating income (loss) $ 30,613 $ 28,799 $ (23,318 ) $ 36,094 Interest expense - - 4,016 4,016 Earnings (loss) before income taxes $ 30,613 $ 28,799 $ (27,334 ) $ 32,078 (In thousands) Flavors & Fragrances Color Corporate & Other Consolidated Nine months ended September 30, 2015: Revenue from external customers $ 598,226 $ 341,662 $ 96,880 $ 1,036,768 Intersegment revenue 19,757 14,648 119 34,524 Total revenue $ 617,983 $ 356,310 $ 96,999 $ 1,071,292 Operating income (loss) $ 94,354 $ 73,806 $ (33,427 ) $ 134,733 Interest expense - - 12,316 12,316 Earnings (loss) before income taxes $ 94,354 $ 73,806 $ (45,743 ) $ 122,417 Nine months ended September 30, 2014: Revenue from external customers $ 627,766 $ 376,995 $ 100,241 $ 1,105,002 Intersegment revenue 20,692 16,356 138 37,186 Total revenue $ 648,458 $ 393,351 $ 100,379 $ 1,142,188 Operating income (loss) $ 95,001 $ 89,299 $ (89,876 ) $ 94,424 Interest expense - - 11,866 11,866 Earnings (loss) before income taxes $ 95,001 $ 89,299 $ (101,742 ) $ 82,558 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 | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Inventories | 5. Inventories At September 30, 2015, and December 31, 2014, inventories included finished and in-process products totaling $313.8 million and $308.7 million, respectively, and raw materials and supplies of $128.5 million and $140.7 million, respectively. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Service cost $ 654 $ 610 $ 1,977 $ 1,877 Interest cost 467 502 1,412 1,704 Expected return on plan assets (321 ) (478 ) (967 ) (1,432 ) Amortization of prior service cost - 43 - 129 Amortization of actuarial loss (gain) 72 (14 ) 219 (331 ) Settlement expense 506 289 506 289 Curtailment gain - - - (115 ) Total defined benefit expense $ 1,378 $ 952 $ 3,147 $ 2,121 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 7. Shareholders’ Equity The Company repurchased 0.6 million and 2.5 million shares of its common stock for an aggregate cost of $38.2 million and $165.4 million during the three and nine months ended September 30, 2015, respectively, and 2.0 million shares of its common stock for an aggregate price of $108.8 million during the nine months ended September 30, 2014. The Company did not repurchase any shares during the three months ended September 30, 2014. 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 | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income Taxes The effective income tax rates for continuing operations for the quarters ended September 30, 2015 and 2014, were 29.0% and 29.3%, respectively. For the nine-month periods ended September 30, 2015 and 2014, the effective income tax rates for continuing operations were 28.2% and 32.8%, 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 | 9 Months Ended |
Sep. 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 nine-month periods ended September 30, 2015: Three Months Ended September 30, 2015 (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balance as of June 30, 2015 $ (271 ) $ (5,071 ) $ (121,917 ) $ (127,259 ) Other comprehensive loss before reclassifications (664 ) - (20,280 ) (20,944 ) Amounts reclassified from OCI 382 48 - 430 Balance as of September 30, 2015 $ (553 ) $ (5,023 ) $ (142,197 ) $ (147,773 ) Nine Months Ended September 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 (1,447 ) - (61,915 ) (63,362 ) Amounts reclassified from OCI 570 147 - 717 Balance as of September 30, 2015 $ (553 ) $ (5,023 ) $ (142,197 ) $ (147,773 ) (a) Cash Flow Hedges and Pension Items are net of tax. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 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. Eight facilities were identified for consolidation in the Flavors & Fragrances segment, four in North America and four in Europe. To date, closures have been announced in Indianapolis, Indiana, United States; Cornwall, Mississauga and Halton Hills, Canada; Bremen, Germany; and Milan, Italy. The Company also discontinued one of the businesses in the Color Group, located near Leipzig, Germany, 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. The Company recorded long-lived asset impairments, including the impairment charges and accelerated depreciation, of $2.6 million and $18.2 million, during the three months ended September 30, 2015 and 2014, respectively, and $10.1 million and $66.1 million, during the nine months ended September 30, 2015 and 2014, respectively. Since initiating the Plan, the Company has recorded $80.3 million of long-lived asset impairments, including the impairment charges and accelerated depreciation. 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 400 positions at impacted facilities, primarily in the Flavors & Fragrances Group, related to direct and indirect labor at manufacturing sites. As of September 30, 2015, approximately 185 positions have been eliminated as a result of this Plan. For the three and nine months ended September 30, 2015, the Company recorded total restructuring costs of $10.9 million and $27.7 million, respectively, in accordance with GAAP and based on an internal review of the affected facilities and consultation with legal and other advisors. For the three and nine months ended September 30, 2014, the Company recorded restructuring costs of $23.1 million and $85.6 million, respectively. Since initiating the 2014 Restructuring Plan, the Company has incurred $126.3 million of restructuring costs through September 30, 2015. Subsequent to September 30, 2015, the Company identified an additional opportunity to eliminate approximately 25 additional positions in the Flavors & Fragrances European business as a result of the 2014 Restructuring Plan. Including these additional severance related costs, the Company expects to incur approximately $9 million of additional restructuring costs by the end of 2015 and approximately $7 million of additional restructuring costs by the end of 2016. 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. Upon initiating the Plan, the Company estimated the annual cost reductions to be approximately $30 million when fully implemented, but the actual cost reductions will vary based upon changes in exchange rates and other assumptions. The Company achieved cost savings of approximately $3 million in 2014. For the three and nine months ended September 30, 2015, the Company achieved approximately $2.3 million and $5.4 million of incremental savings in continuing operations, respectively, related to the 2014 Restructuring Plan. Based on current exchange rates, the annual incremental cost savings are estimated to be approximately $8 million in full-year 2015. Furthermore, the Company expects to realize incremental savings of approximately $6 million in 2016 and an additional $8 to $9 million in 2017. The current estimate for the annual cost reductions, when fully implemented, is approximately $25 million and 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. All restructuring costs related to continuing operations are recorded in the Corporate & Other segment. The following table summarizes the restructuring by segment and discontinued operations for the three and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, (In thousands) 2015 2014 Flavors & Fragrances $ 10,035 $ 20,064 Color 245 - Corporate & Other 672 922 Total Continuing Operations 10,952 20,986 Discontinued Operations (71 ) 2,071 Total Restructuring $ 10,881 $ 23,057 Nine Months Ended September 30, (In thousands) 2015 2014 Flavors & Fragrances $ 23,055 $ 74,115 Color 1,828 - Corporate & Other 2,806 1,508 Total Continuing Operations 27,689 75,623 Discontinued Operations 43 10,017 Total Restructuring $ 27,732 $ 85,640 The Company recorded restructuring costs in continuing operations for the three and nine months ended September 30, 2015, as follows: Three Months Ended September 30, 2015 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 745 $ - $ 745 Long-lived asset impairment 2,610 - 2,610 Write-down of inventory - 2,814 2,814 Other costs (1) 4,783 - 4,783 Total $ 8,138 $ 2,814 $ 10,952 Nine Months Ended September 30, 2015 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 4,449 $ - $ 4,449 Long-lived asset impairment 10,090 - 10,090 Gain on asset sales (1,301 ) - (1,301 ) Write-down of inventory - 3,095 3,095 Other costs (1) 11,356 - 11,356 Total $ 24,594 $ 3,095 $ 27,689 (1) Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs. The Company recorded restructuring costs in continuing operations for the three and nine months ended September 30, 2014, as follows: Three Months Ended September 30, 2014 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 908 $ - $ 908 Long-lived asset impairment 17,072 - 17,072 Write-down of inventory - 1,914 1,914 Other costs (1) 1,092 - 1,092 Total $ 19,072 $ 1,914 $ 20,986 Nine Months Ended September 30, 2014 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 13,199 $ - $ 13,199 Long-lived asset impairment 59,335 - 59,335 Gain on asset sales (602 ) - (602 ) Write-down of inventory - 1,914 1,914 Other costs (1) 1,777 - 1,777 Total $ 73,709 $ 1,914 $ 75,623 (1) Other costs include facility decommissioning costs, professional services, personnel moving costs and other related costs. The following table summarizes the accrual activity for the restructuring liabilities for the nine months ended September 30, 2015: (In thousands) Employee Separations Other Costs Total Balance as of December 31, 2014 $ 14,909 $ 897 $ 15,806 Expense activity 4,038 11,913 15,951 Cash spent (6,317 ) (12,170 ) (18,487 ) Translation adjustment (1,126 ) - (1,126 ) Balance as of September 30, 2015 $ 11,504 $ 640 $ 12,144 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 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 nine months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Revenue $ - $ 910 $ 187 $ 3,209 Loss from discontinued operations before income taxes (11 ) (2,351 ) (439 ) (10,893 ) Income tax (expense) / benefit (36 ) 992 91 3,742 Loss from discontinued operations, net of tax $ (47 ) $ (1,359 ) $ (348 ) $ (7,151 ) Pre-tax restructuring costs are included in the loss before income taxes from discontinued operations. For the three and nine months ended September 30, 2015, the restructuring costs were not material and for the three and nine months ended September 30, 2014, these costs were $2.1 million and $10.0 million, respectively. See Note 11, Restructuring, |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 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. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events On November 6, 2015, the Company increased its credit facility term loan from $95 million to $170 million. The credit facility, consisting of the $170 million term loan and a $350 million revolver, will mature on November 6, 2020. Interest rates on borrowings under the credit facility are at LIBOR plus a margin based on the Company’s leverage ratio. Currently, when fully drawn, the interest rate is at LIBOR plus 1.50%. Also on November 6, 2015, the Company issued 7-year, fixed-rate notes of €67 million (approximately $75 million) at a fixed rate of 1.85%. The notes will have a final maturity in November 2022. Proceeds from the increased term loan and the sale of the notes will be used to refinance existing debt. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 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 September 30, 2015: Revenue from external customers $ 201,049 $ 112,047 $ 31,437 $ 344,533 Intersegment revenue 6,324 4,399 34 10,757 Total revenue $ 207,373 $ 116,446 $ 31,471 $ 355,290 Operating income (loss) $ 31,369 $ 22,859 $ (11,008 ) $ 43,220 Interest expense - - 4,295 4,295 Earnings (loss) before income taxes $ 31,369 $ 22,859 $ (15,303 ) $ 38,925 Three months ended September 30, 2014: Revenue from external customers $ 209,638 $ 122,140 $ 32,726 $ 364,504 Intersegment revenue 6,997 5,986 27 13,010 Total revenue $ 216,635 $ 128,126 $ 32,753 $ 377,514 Operating income (loss) $ 30,613 $ 28,799 $ (23,318 ) $ 36,094 Interest expense - - 4,016 4,016 Earnings (loss) before income taxes $ 30,613 $ 28,799 $ (27,334 ) $ 32,078 (In thousands) Flavors & Fragrances Color Corporate & Other Consolidated Nine months ended September 30, 2015: Revenue from external customers $ 598,226 $ 341,662 $ 96,880 $ 1,036,768 Intersegment revenue 19,757 14,648 119 34,524 Total revenue $ 617,983 $ 356,310 $ 96,999 $ 1,071,292 Operating income (loss) $ 94,354 $ 73,806 $ (33,427 ) $ 134,733 Interest expense - - 12,316 12,316 Earnings (loss) before income taxes $ 94,354 $ 73,806 $ (45,743 ) $ 122,417 Nine months ended September 30, 2014: Revenue from external customers $ 627,766 $ 376,995 $ 100,241 $ 1,105,002 Intersegment revenue 20,692 16,356 138 37,186 Total revenue $ 648,458 $ 393,351 $ 100,379 $ 1,142,188 Operating income (loss) $ 95,001 $ 89,299 $ (89,876 ) $ 94,424 Interest expense - - 11,866 11,866 Earnings (loss) before income taxes $ 95,001 $ 89,299 $ (101,742 ) $ 82,558 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Service cost $ 654 $ 610 $ 1,977 $ 1,877 Interest cost 467 502 1,412 1,704 Expected return on plan assets (321 ) (478 ) (967 ) (1,432 ) Amortization of prior service cost - 43 - 129 Amortization of actuarial loss (gain) 72 (14 ) 219 (331 ) Settlement expense 506 289 506 289 Curtailment gain - - - (115 ) Total defined benefit expense $ 1,378 $ 952 $ 3,147 $ 2,121 |
Accumulated Other Comprehensi22
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 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 nine-month periods ended September 30, 2015: Three Months Ended September 30, 2015 (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balance as of June 30, 2015 $ (271 ) $ (5,071 ) $ (121,917 ) $ (127,259 ) Other comprehensive loss before reclassifications (664 ) - (20,280 ) (20,944 ) Amounts reclassified from OCI 382 48 - 430 Balance as of September 30, 2015 $ (553 ) $ (5,023 ) $ (142,197 ) $ (147,773 ) Nine Months Ended September 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 (1,447 ) - (61,915 ) (63,362 ) Amounts reclassified from OCI 570 147 - 717 Balance as of September 30, 2015 $ (553 ) $ (5,023 ) $ (142,197 ) $ (147,773 ) (a) Cash Flow Hedges and Pension Items are net of tax. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring [Abstract] | |
Restructuring cost by segment | The following table summarizes the restructuring by segment and discontinued operations for the three and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, (In thousands) 2015 2014 Flavors & Fragrances $ 10,035 $ 20,064 Color 245 - Corporate & Other 672 922 Total Continuing Operations 10,952 20,986 Discontinued Operations (71 ) 2,071 Total Restructuring $ 10,881 $ 23,057 Nine Months Ended September 30, (In thousands) 2015 2014 Flavors & Fragrances $ 23,055 $ 74,115 Color 1,828 - Corporate & Other 2,806 1,508 Total Continuing Operations 27,689 75,623 Discontinued Operations 43 10,017 Total Restructuring $ 27,732 $ 85,640 |
Summary of restructuring costs | The Company recorded restructuring costs in continuing operations for the three and nine months ended September 30, 2015, as follows: Three Months Ended September 30, 2015 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 745 $ - $ 745 Long-lived asset impairment 2,610 - 2,610 Write-down of inventory - 2,814 2,814 Other costs (1) 4,783 - 4,783 Total $ 8,138 $ 2,814 $ 10,952 Nine Months Ended September 30, 2015 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 4,449 $ - $ 4,449 Long-lived asset impairment 10,090 - 10,090 Gain on asset sales (1,301 ) - (1,301 ) Write-down of inventory - 3,095 3,095 Other costs (1) 11,356 - 11,356 Total $ 24,594 $ 3,095 $ 27,689 (1) Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs. The Company recorded restructuring costs in continuing operations for the three and nine months ended September 30, 2014, as follows: Three Months Ended September 30, 2014 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 908 $ - $ 908 Long-lived asset impairment 17,072 - 17,072 Write-down of inventory - 1,914 1,914 Other costs (1) 1,092 - 1,092 Total $ 19,072 $ 1,914 $ 20,986 Nine Months Ended September 30, 2014 (In thousands) Selling & Administrative Cost of Products Sold Total Employee separation $ 13,199 $ - $ 13,199 Long-lived asset impairment 59,335 - 59,335 Gain on asset sales (602 ) - (602 ) Write-down of inventory - 1,914 1,914 Other costs (1) 1,777 - 1,777 Total $ 73,709 $ 1,914 $ 75,623 (1) Other costs include facility decommissioning costs, professional services, personnel moving costs and other related costs. |
Summary of accrual for restructuring and other charges | The following table summarizes the accrual activity for the restructuring liabilities for the nine months ended September 30, 2015: (In thousands) Employee Separations Other Costs Total Balance as of December 31, 2014 $ 14,909 $ 897 $ 15,806 Expense activity 4,038 11,913 15,951 Cash spent (6,317 ) (12,170 ) (18,487 ) Translation adjustment (1,126 ) - (1,126 ) Balance as of September 30, 2015 $ 11,504 $ 640 $ 12,144 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Revenue $ - $ 910 $ 187 $ 3,209 Loss from discontinued operations before income taxes (11 ) (2,351 ) (439 ) (10,893 ) Income tax (expense) / benefit (36 ) 992 91 3,742 Loss from discontinued operations, net of tax $ (47 ) $ (1,359 ) $ (348 ) $ (7,151 ) |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Jun. 29, 2015 | Sep. 30, 2015 | Sep. 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 | Sep. 30, 2015 | Dec. 31, 2014 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 1.5 | $ 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 | 604.6 | |
Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long term debt | $ 617 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenue from external customers | $ 344,533 | $ 364,504 | $ 1,036,768 | $ 1,105,002 |
Total Revenue | 355,290 | 377,514 | 1,071,292 | 1,142,188 |
Operating income (loss) | 43,220 | 36,094 | 134,733 | 94,424 |
Interest expense | 4,295 | 4,016 | 12,316 | 11,866 |
Earnings (loss) before income taxes | 38,925 | 32,078 | 122,417 | 82,558 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from external customers | 344,533 | 364,504 | 1,036,768 | 1,105,002 |
Intersegment Revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from external customers | 10,757 | 13,010 | 34,524 | 37,186 |
Flavors & Fragrances [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 207,373 | 216,635 | 617,983 | 648,458 |
Flavors & Fragrances [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from external customers | 201,049 | 209,638 | 598,226 | 627,766 |
Operating income (loss) | 31,369 | 30,613 | 94,354 | 95,001 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings (loss) before income taxes | 31,369 | 30,613 | 94,354 | 95,001 |
Flavors & Fragrances [Member] | Intersegment Revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from external customers | 6,324 | 6,997 | 19,757 | 20,692 |
Color [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 116,446 | 128,126 | 356,310 | 393,351 |
Color [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from external customers | 112,047 | 122,140 | 341,662 | 376,995 |
Operating income (loss) | 22,859 | 28,799 | 73,806 | 89,299 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings (loss) before income taxes | 22,859 | 28,799 | 73,806 | 89,299 |
Color [Member] | Intersegment Revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from external customers | 4,399 | 5,986 | 14,648 | 16,356 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 31,471 | 32,753 | 96,999 | 100,379 |
Corporate and Other [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from external customers | 31,437 | 32,726 | 96,880 | 100,241 |
Operating income (loss) | (11,008) | (23,318) | (33,427) | (89,876) |
Interest expense | 4,295 | 4,016 | 12,316 | 11,866 |
Earnings (loss) before income taxes | (15,303) | (27,334) | (45,743) | (101,742) |
Corporate and Other [Member] | Intersegment Revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from external customers | $ 34 | $ 27 | $ 119 | $ 138 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Inventories, including finished and in-process products | $ 313.8 | $ 308.7 |
Raw materials and supplies | $ 128.5 | $ 140.7 |
Retirement Plans (Details)
Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 654 | $ 610 | $ 1,977 | $ 1,877 |
Interest cost | 467 | 502 | 1,412 | 1,704 |
Expected return on plan assets | (321) | (478) | (967) | (1,432) |
Amortization of prior service cost | 0 | 43 | 0 | 129 |
Amortization of actuarial loss (gain) | 72 | (14) | 219 | (331) |
Settlement expense | 506 | 289 | 506 | 289 |
Curtailment gain | 0 | 0 | 0 | (115) |
Total defined benefit expense | $ 1,378 | $ 952 | $ 3,147 | $ 2,121 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Shareholders' Equity [Abstract] | ||||
Common stock repurchased during the period (in shares) | 0.6 | 0 | 2.5 | 2 |
Common stock repurchased during the period, value | $ 38.2 | $ 165.4 | $ 108.8 |
Derivative Instruments and He31
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 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 | $ (1) | $ (4.8) | |
Forward Exchange Contracts [Member] | Cash Flow Hedges [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Derivative, fair value | 22.9 | 22.9 | $ 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 | $ 92.5 | $ 92.5 | $ 97.3 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Abstract] | ||||
Effective income tax rates | 29.00% | 29.30% | 28.20% | 32.80% |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning balance | $ (127,259) | $ (85,128) | |
Other comprehensive loss before reclassifications | (20,944) | (63,362) | |
Amounts reclassified from OCI | 430 | 717 | |
Accumulated other comprehensive income (loss), Ending balance | (147,773) | (147,773) | |
Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning balance | [1] | (271) | 324 |
Other comprehensive loss before reclassifications | [1] | (664) | (1,447) |
Amounts reclassified from OCI | [1] | 382 | 570 |
Accumulated other comprehensive income (loss), Ending balance | [1] | (553) | (553) |
Pension Items [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning balance | [1] | (5,071) | (5,170) |
Other comprehensive loss before reclassifications | [1] | 0 | 0 |
Amounts reclassified from OCI | [1] | 48 | 147 |
Accumulated other comprehensive income (loss), Ending balance | [1] | (5,023) | (5,023) |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive income (loss), Beginning balance | (121,917) | (80,282) | |
Other comprehensive loss before reclassifications | (20,280) | (61,915) | |
Amounts reclassified from OCI | [1] | 0 | 0 |
Accumulated other comprehensive income (loss), Ending balance | $ (142,197) | $ (142,197) | |
[1] | Cash Flow Hedges and Pension Items are net of tax. |
Restructuring (Details)
Restructuring (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2014Facilities | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Positions | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Estimated fair values of the remaining long-lived assets | $ 22,000 | $ 22,000 | ||||||||
Long lived asset impairments | 2,600 | $ 18,200 | 10,100 | $ 66,100 | ||||||
Long lived asset impairments recorded to date | 80,300 | $ 80,300 | ||||||||
Position reduction due to restructuring | Positions | 400 | |||||||||
Number of positions eliminated due to restructuring | Positions | 185 | |||||||||
Total restructuring costs incurred to date | 126,300 | $ 126,300 | ||||||||
Savings recognized in restructuring plan | 2,300 | 5,400 | $ 3,000 | |||||||
Estimated cost savings due to restructuring | 30,000 | |||||||||
Estimated cost savings in 2015 | 8,000 | |||||||||
Expected incremental savings in 2016 | 6,000 | 6,000 | ||||||||
Current estimated cost savings due to restructuring | 25,000 | 25,000 | ||||||||
Restructuring cost by segment [Abstract] | ||||||||||
Total Continuing Operations | 10,952 | 20,986 | 27,689 | 75,623 | ||||||
Discontinued Operations | (71) | 2,071 | 43 | 10,017 | ||||||
Total Restructuring | 10,881 | 23,057 | 27,732 | 85,640 | ||||||
Detail of the restructuring costs [Abstract] | ||||||||||
Employee separation | 745 | 908 | 4,449 | 13,199 | ||||||
Long-lived asset impairment | 2,610 | 17,072 | 10,090 | 59,335 | ||||||
Gain on asset sales | (1,301) | (602) | ||||||||
Write-down of inventory | 2,814 | 1,914 | 3,095 | 1,914 | ||||||
Other costs | 4,783 | [1] | 1,092 | [2] | 11,356 | [1] | 1,777 | [2] | ||
Future restructuring costs, current year | 9,000 | |||||||||
Future restructuring costs, 2016 | 7,000 | 7,000 | ||||||||
Summary of accrual for restructuring and other charges [Abstract] | ||||||||||
Balance as of beginning of period | 15,806 | |||||||||
Expense activity | 15,951 | |||||||||
Cash spent | (18,487) | |||||||||
Translation adjustment | (1,126) | |||||||||
Balance as of end of period | 12,144 | 12,144 | 15,806 | |||||||
Minimum [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Expected incremental savings in 2017 | 8,000 | 8,000 | ||||||||
Maximum [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Expected incremental savings in 2017 | 9,000 | 9,000 | ||||||||
Selling & Administrative [Member] | ||||||||||
Restructuring cost by segment [Abstract] | ||||||||||
Total Continuing Operations | 8,138 | 19,072 | 24,594 | 73,709 | ||||||
Detail of the restructuring costs [Abstract] | ||||||||||
Employee separation | 745 | 908 | 4,449 | 13,199 | ||||||
Long-lived asset impairment | 2,610 | 17,072 | 10,090 | 59,335 | ||||||
Gain on asset sales | (1,301) | (602) | ||||||||
Write-down of inventory | 0 | 0 | 0 | 0 | ||||||
Other costs | 4,783 | [1] | 1,092 | [2] | 11,356 | [1] | 1,777 | [2] | ||
Cost of Products Sold [Member] | ||||||||||
Restructuring cost by segment [Abstract] | ||||||||||
Total Continuing Operations | 2,814 | 1,914 | 3,095 | 1,914 | ||||||
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 | 2,814 | 1,914 | 3,095 | 1,914 | ||||||
Other costs | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | ||
Flavors & Fragrances [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Facilities identified for consolidation | Facilities | 8 | |||||||||
Restructuring cost by segment [Abstract] | ||||||||||
Total Continuing Operations | 10,035 | 20,064 | $ 23,055 | 74,115 | ||||||
Flavors & Fragrances [Member] | North America [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Facilities identified for consolidation | Facilities | 4 | |||||||||
Flavors & Fragrances [Member] | Europe [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Facilities identified for consolidation | Facilities | 4 | |||||||||
Number of additional positions identified for elimination subsequent to current period | Positions | 25 | |||||||||
Color [Member] | ||||||||||
Restructuring cost by segment [Abstract] | ||||||||||
Total Continuing Operations | 245 | 0 | $ 1,828 | 0 | ||||||
Corporate & Other [Member] | ||||||||||
Restructuring cost by segment [Abstract] | ||||||||||
Total Continuing Operations | 672 | $ 922 | 2,806 | $ 1,508 | ||||||
Employee Separations [Member] | ||||||||||
Summary of accrual for restructuring and other charges [Abstract] | ||||||||||
Balance as of beginning of period | 14,909 | |||||||||
Expense activity | 4,038 | |||||||||
Cash spent | (6,317) | |||||||||
Translation adjustment | (1,126) | |||||||||
Balance as of end of period | 11,504 | 11,504 | 14,909 | |||||||
Other Costs [Member] | ||||||||||
Summary of accrual for restructuring and other charges [Abstract] | ||||||||||
Balance as of beginning of period | 897 | |||||||||
Expense activity | 11,913 | |||||||||
Cash spent | (12,170) | |||||||||
Translation adjustment | 0 | |||||||||
Balance as of end of period | $ 640 | $ 640 | $ 897 | |||||||
[1] | Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs. | |||||||||
[2] | Other costs include facility decommissioning costs, professional services, personnel moving costs and other related costs. |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Certain Consolidated Condensed Statements of Earnings information for discontinued operations [Abstract] | ||||
Revenue | $ 0 | $ 910 | $ 187 | $ 3,209 |
Loss from discontinued operations before income taxes | (11) | (2,351) | (439) | (10,893) |
Income tax (expense)/benefit | (36) | 992 | 91 | 3,742 |
Loss from discontinued operations, net of tax | (47) | (1,359) | (348) | (7,151) |
Pre-tax restructuring costs from discontinued operations | $ (71) | $ 2,071 | $ 43 | $ 10,017 |
Subsequent Events (Details)
Subsequent Events (Details) € in Millions, $ in Millions | Nov. 06, 2015USD ($) | Nov. 06, 2015EUR (€) | Sep. 30, 2015USD ($) |
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Term loan, face amount | $ 95 | ||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, amount | $ 350 | ||
Subsequent Event [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.50% | ||
Subsequent Event [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Term loan, face amount | $ 170 | ||
Credit facility maturity date | Nov. 6, 2020 | ||
Subsequent Event [Member] | Euro Denominated Senior Notes Due November 2022 at 1.85 Percent [Member] | |||
Debt Instrument [Line Items] | |||
Tenure of fixed-rate notes | 7 years | ||
Long term notes | $ 75 | € 67 | |
Fixed-notes rate of interest | 1.85% | 1.85% | |
Term loan, maturity date | Nov. 30, 2022 |