Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 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 Public Float | $ 3,076,116,649 | ||
Entity Common Stock, Shares Outstanding | 44,965,308 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF EARNINGS [Abstract] | |||
Revenue | $ 1,375,964 | $ 1,447,821 | $ 1,462,126 |
Cost of products sold | 921,531 | 959,311 | 987,080 |
Selling and administrative expenses | 288,092 | 357,845 | 301,266 |
Operating income | 166,341 | 130,665 | 173,780 |
Interest expense | 16,945 | 16,067 | 16,147 |
Earnings before income taxes | 149,396 | 114,598 | 157,633 |
Income taxes | 42,149 | 32,827 | 43,335 |
Earnings from continuing operations | 107,247 | 81,771 | 114,298 |
Loss from discontinued operations, net of tax | (462) | (8,125) | (1,003) |
Net earnings | $ 106,785 | $ 73,646 | $ 113,295 |
Basic: | |||
Continuing operations (in dollars per share) | $ 2.34 | $ 1.69 | $ 2.30 |
Discontinued operations (in dollars per share) | (0.01) | (0.17) | (0.02) |
Earnings per common share (in dollars per share) | 2.33 | 1.52 | 2.28 |
Diluted: | |||
Continuing operations (in dollars per share) | 2.32 | 1.67 | 2.29 |
Discontinued operations (in dollars per share) | (0.01) | (0.17) | (0.02) |
Earnings per common share (in dollars per share) | $ 2.31 | $ 1.51 | $ 2.27 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 45,910 | 48,525 | 49,755 |
Diluted (in shares) | 46,204 | 48,819 | 49,934 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net earnings | $ 106,785 | $ 73,646 | $ 113,295 |
Cash flow hedges adjustment, net of tax of $61, $153 and $50, respectively | (160) | 423 | (134) |
Pension adjustment, net of tax of $613, $226 and $3,675 respectively | 777 | 1,598 | 5,294 |
Foreign currency translation on net investment hedges | 7,542 | 12,677 | (4,020) |
Tax effect of current year activity on net investment hedges | (2,966) | (4,947) | 1,810 |
Foreign currency translation on long-term intercompany loans | (10,681) | (8,325) | 5,781 |
Other foreign currency translation | (79,446) | (92,556) | 1,856 |
Total Comprehensive Income (Loss) | $ 21,851 | $ (17,484) | $ 123,882 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Cash flow hedges adjustment, tax | $ (61) | $ 153 | $ (50) |
Pension adjustment, tax amount | $ (613) | $ 226 | $ (3,675) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 11,997 | $ 20,329 |
Trade accounts receivable, less allowance for losses of $3,871 and $3,838, respectively | 232,047 | 228,907 |
Inventories | 409,159 | 449,409 |
Prepaid expenses and other current assets | 44,673 | 37,713 |
Deferred income taxes | 24,438 | 21,735 |
Assets held for sale | 31,029 | 1,296 |
Total current assets | 753,343 | 759,389 |
Other assets | 79,561 | 77,376 |
Intangible assets - at cost, less accumulated amortization of $15,176 and $14,390, respectively | 9,209 | 8,760 |
Goodwill | 399,646 | 424,114 |
Property, Plant and Equipment: | ||
Land | 33,975 | 42,868 |
Buildings | 274,318 | 295,381 |
Machinery and equipment | 664,917 | 723,631 |
Construction in progress | 62,515 | 54,579 |
Property, Plant and Equipment, Gross, Total | 1,035,725 | 1,116,459 |
Less accumulated depreciation | (566,047) | (620,892) |
Property, Plant and Equipment, Net, Total | 469,678 | 495,567 |
Total assets | 1,711,437 | 1,765,206 |
Current Liabilities: | ||
Trade accounts payable | 95,442 | 99,033 |
Accrued salaries, wages and withholdings from employees | 23,530 | 30,010 |
Other accrued expenses | 61,701 | 76,383 |
Income taxes | 7,504 | 3,591 |
Short-term borrowings | 20,655 | 15,888 |
Liabilities held for sale | 4,090 | 0 |
Total current liabilities | 212,922 | 224,905 |
Deferred income taxes | 12,970 | 0 |
Other liabilities | 7,534 | 17,372 |
Accrued employee and retiree benefits | 19,007 | 24,983 |
Long-term debt | 613,877 | 451,011 |
Shareholders' Equity: | ||
Common stock, par value $0.10 a share, authorized 100,000,000 shares; issued 53,954,874 shares | 5,396 | 5,396 |
Additional paid-in capital | 109,974 | 110,969 |
Earnings reinvested in the business | 1,302,302 | 1,243,627 |
Treasury stock, 9,174,843 and 6,529,891 shares, respectively, at cost | (402,483) | (227,929) |
Accumulated other comprehensive loss | (170,062) | (85,128) |
Total shareholders' equity | 845,127 | 1,046,935 |
Total liabilities and shareholders' equity | $ 1,711,437 | $ 1,765,206 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Trade accounts receivable, allowance for losses | $ 3,871 | $ 3,838 |
Intangible assets, accumulated amortization | $ 15,176 | $ 14,390 |
Shareholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 53,954,874 | 53,954,874 |
Treasury stock, shares (in shares) | 9,174,843 | 6,529,891 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | |||
Net earnings | $ 106,785 | $ 73,646 | $ 113,295 |
Adjustments to arrive at net cash provided by operating activities: | |||
Depreciation and amortization | 47,939 | 51,456 | 52,016 |
Share-based compensation | 1,598 | 6,265 | 8,430 |
Loss on assets | 13,190 | 70,745 | 695 |
Deferred income taxes | (4,452) | (16,780) | (6,178) |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (21,721) | (10,582) | 3,466 |
Inventories | 3,041 | 64 | (30,217) |
Prepaid expenses and other assets | 2,698 | 6,479 | 616 |
Accounts payable and other accrued expenses | (8,792) | 6,745 | 3,606 |
Accrued salaries, wages and withholdings from employees | (2,851) | (365) | 5,384 |
Income taxes | (5,520) | 7,047 | (100) |
Other liabilities | (3,868) | (5,532) | 2,540 |
Net cash provided by operating activities | 128,047 | 189,188 | 153,553 |
Cash Flows from Investing Activities | |||
Acquisition of property, plant and equipment | (79,941) | (79,398) | (104,246) |
Proceeds from sale of assets | 12,912 | 1,029 | 6,225 |
Acquisition of new business | (8,393) | 0 | 0 |
Other investing activities | (372) | (780) | (208) |
Net cash used in investing activities | (75,794) | (79,149) | (98,229) |
Cash Flows from Financing Activities | |||
Proceeds from additional borrowings | 331,277 | 213,985 | 194,973 |
Debt payments | (156,662) | (128,186) | (198,686) |
Purchase of treasury stock | (176,566) | (137,192) | 0 |
Dividends paid | (48,110) | (47,893) | (45,513) |
Proceeds from options exercised and other equity transactions | (73) | 733 | 1,007 |
Net cash used in financing activities | (50,134) | (98,553) | (48,219) |
Effect of exchange rate changes on cash and cash equivalents | (10,451) | (10,993) | (2,331) |
Net (decrease) increase in cash and cash equivalents | (8,332) | 493 | 4,774 |
Cash and cash equivalents at beginning of period | 20,329 | 19,836 | 15,062 |
Cash and cash equivalents at end of period | 11,997 | 20,329 | 19,836 |
Cash paid during the year for: | |||
Interest | 16,839 | 16,158 | 16,168 |
Income taxes | 46,281 | 42,335 | 47,436 |
Capitalized interest | $ 944 | $ 1,449 | $ 1,875 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Earnings Reinvested in the Business [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2012 | $ 5,396 | $ 98,253 | $ 1,150,092 | $ (95,258) | $ (4,585) | |
Beginning Balance (in shares) at Dec. 31, 2012 | 4,264,821 | |||||
Net earnings | 113,295 | $ 113,295 | ||||
Other comprehensive income | 10,587 | |||||
Cash dividends paid | (45,513) | |||||
Share-based compensation | 8,430 | |||||
Stock options exercised | (63) | $ 1,063 | ||||
Stock options exercised (in shares) | (47,584) | |||||
Non-vested stock issued upon vesting | (2,113) | $ 2,113 | ||||
Non-vested stock issued upon vesting (in shares) | (94,600) | |||||
Benefit plans | 385 | $ 595 | ||||
Benefit plans (in shares) | (26,635) | |||||
Other | 227 | $ (220) | ||||
Other (in shares) | 9,825 | |||||
Ending Balance at Dec. 31, 2013 | 5,396 | 105,119 | 1,217,874 | $ (91,707) | 6,002 | |
Ending Balance (in shares) at Dec. 31, 2013 | 4,105,827 | |||||
Net earnings | 73,646 | 73,646 | ||||
Other comprehensive income | (91,130) | |||||
Cash dividends paid | (47,893) | |||||
Share-based compensation | 6,265 | |||||
Stock options exercised | (161) | $ 753 | ||||
Stock options exercised (in shares) | (27,001) | |||||
Non-vested stock issued upon vesting | (1,206) | $ 1,206 | ||||
Non-vested stock issued upon vesting (in shares) | (40,300) | |||||
Benefit plans | 510 | $ 406 | ||||
Benefit plans (in shares) | (18,185) | |||||
Purchase of treasury stock | $ (138,288) | |||||
Purchase of treasury stock (in shares) | 2,500,000 | |||||
Other | 442 | $ (299) | ||||
Other (in shares) | 9,550 | |||||
Ending Balance at Dec. 31, 2014 | 5,396 | 110,969 | 1,243,627 | $ (227,929) | (85,128) | 1,046,935 |
Ending Balance (in shares) at Dec. 31, 2014 | 6,529,891 | |||||
Net earnings | 106,785 | 106,785 | ||||
Other comprehensive income | (84,934) | |||||
Cash dividends paid | (48,110) | |||||
Share-based compensation | 1,598 | |||||
Stock options exercised | (356) | $ 788 | ||||
Stock options exercised (in shares) | (21,000) | |||||
Non-vested stock issued upon vesting | (3,080) | $ 3,080 | ||||
Non-vested stock issued upon vesting (in shares) | (74,300) | |||||
Benefit plans | 416 | $ 546 | ||||
Benefit plans (in shares) | (15,165) | |||||
Purchase of treasury stock | $ (178,037) | |||||
Purchase of treasury stock (in shares) | 2,733,301 | |||||
Other | 427 | $ (931) | ||||
Other (in shares) | 22,116 | |||||
Ending Balance at Dec. 31, 2015 | $ 5,396 | $ 109,974 | $ 1,302,302 | $ (402,483) | $ (170,062) | $ 845,127 |
Ending Balance (in shares) at Dec. 31, 2015 | 9,174,843 |
CONSOLIDATED STATEMENTS OF SHA9
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 1.04 | $ 0.98 | $ 0.91 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Operations Sensient Technologies Corporation, together with its subsidiaries (the “Company”), is a leading global manufacturer and marketer of colors, flavors and fragrances. The Company uses advanced technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, specialty inks and colors, and other specialty and fine chemicals. The Company’s reportable segments consist of the Flavors & Fragrances and Color Groups, which are managed on a products and services basis; the Asia Pacific Group, which is managed on a geographic basis; and Corporate & Other. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations for one of the Company’s business units within the Color Group have been reported as a discontinued operation for all periods presented. The corresponding assets have been reclassified in accordance with the authoritative literature on assets held for sale as of December 31, 2015. See Note 13, Discontinued Operations, Use of Estimates The preparation of the consolidated financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets, liabilities, revenue and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. Revenue Recognition The Company recognizes revenue (net of estimated discounts, allowances and returns) when title to goods passes, the customer is obligated to pay the Company and the Company has no remaining obligations. Such recognition typically corresponds with the shipment of goods. Cost of Products Sold Cost of products sold includes materials, labor and overhead expenses incurred in the manufacture of our products. Cost of products sold also includes charges for obsolete and slow moving inventories, as well as costs for quality control, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, other costs of our internal distribution network and costs incurred for shipping and handling. The Company records fees billed to customers for shipping and handling as revenue. Selling and Administrative Expenses Selling and administrative expenses primarily include the salaries and related costs for executive, finance, accounting, human resources, information technology, research and development and legal personnel as well as salaries and related costs of salespersons and commissions paid to external sales agents. Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents. Accounts Receivable Receivables are recorded at their face amount, less an allowance for doubtful accounts. The allowance for doubtful accounts is based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Specific accounts are written off against the allowance for doubtful accounts when it is deemed that the receivable is no longer collectible. Inventories Inventories are stated at the lower of cost or market. Market is determined on the basis of estimated realizable values. Cost is determined using the first-in, first-out (“FIFO”) method with the exception of certain locations of the Flavors & Fragrances Group where cost is determined using a weighted average method. Inventories include finished and in-process products totaling $291.9 million and $308.7 million at December 31, 2015 and 2014, respectively, and raw materials and supplies of $117.3 million and $140.7 million at December 31, 2015 and 2014, respectively. Property, Plant and Equipment Property, plant and equipment are recorded at cost reduced by accumulated depreciation. Depreciation is provided over the estimated useful life of the related asset using the straight-line method for financial reporting. The estimated useful lives for buildings and leasehold improvements range from 5 to 40 years. Machinery and equipment have estimated useful lives ranging from 3 to 20 years. Interest costs on significant projects constructed or developed for the Company’s own use are capitalized as part of the asset. Goodwill and Other Intangible Assets The carrying value of goodwill is evaluated for impairment on an annual basis or more frequently when an indicator of impairment occurs. The impairment assessment includes comparing the carrying amount of net assets, including goodwill, of each reporting unit to its respective fair value as of the date of the assessment. Fair value was estimated based upon an evaluation of the reporting unit’s estimated future discounted cash flow as well as the public trading and private transaction valuation multiples for comparable companies. The Company performed such a quantitative analysis in 2014, which indicated a substantial premium compared to the carrying value of net assets, including goodwill. In 2015, the Company completed a qualitative assessment in comparison to the 2014 quantitative assessment, noting no indicators of a change in fair value. The Company did not record impairment charges for any of its reporting units in 2015, 2014 or 2013. The cost of intangible assets with determinable useful lives is amortized on a straight-line basis to reflect the pattern of economic benefits consumed, ranging from 5 to 20 years. These assets include technological know-how, customer relationships, patents, trademarks and non-compete agreements, among others. Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if potential impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on the difference between fair value and carrying value. Impairment losses were recorded as a result of the Company’s 2014 Restructuring Plan. See Note 12, Restructuring Charges, Derivative Financial Instruments The Company selectively uses derivative financial instruments to reduce market risk associated with changes in foreign currency and interest rate exposures which exist as part of ongoing business operations. All derivative transactions are authorized and executed pursuant to the Company’s risk management policies and procedures, which strictly prohibit the use of financial instruments for speculative trading purposes. The primary objectives of the foreign exchange risk management activities are to understand and mitigate the impact of potential foreign exchange fluctuations on the Company’s financial results and its economic well-being. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. Generally, these risk management transactions involve the use of foreign currency derivatives to protect against exposure resulting from recorded accounts receivable and payable. The Company may utilize forward exchange contracts, generally with maturities of less than 18 months, which qualify as cash flow hedges. Generally, these foreign exchange contracts are intended to offset the effect of exchange rate fluctuations on non-functional currency denominated sales and purchases. For derivative instruments that are designated as cash flow hedges, gains and losses are deferred in accumulated other comprehensive (loss) income (“OCI”) until the underlying transaction is recognized in earnings. Hedge effectiveness is determined by how closely the changes in the fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged item. Hedge accounting is permitted only if the hedging relationship is expected to be highly effective at the inception of the transaction and on an ongoing basis. Any ineffective portions are recognized in earnings immediately. The Company’s existing cash flow hedges are highly effective. As a result, any current impact on earnings due to cash flow hedge ineffectiveness is immaterial. Interest Rate Hedging The Company is exposed to interest rate risk through its corporate borrowing activities. The objective of the Company’s interest rate risk management activities is to manage the levels of the Company’s fixed and floating interest rate exposure to be consistent with the Company’s preferred mix. The interest rate risk management program may include entering into interest rate swaps, which qualify as fair value hedges, when there is a desire to modify the Company’s exposure to interest rates. Gains or losses on fair value hedges are recognized in earnings, net of gains and losses on the fair value of the hedged instruments. Net Investments Hedging The Company may enter into foreign-denominated debt to be used as a non-derivative instrument to hedge the Company’s net investment in foreign subsidiaries. The change in the carrying amount of the foreign-denominated debt on the Company’s books, attributable to changes in the spot foreign exchange rate, is a hedge of the net investment in its foreign subsidiaries. Changes in the fair value of debt designated as a net investment hedge are recorded in foreign currency translation in OCI. Commodity Purchases The Company purchases certain commodities in the normal course of business that result in physical delivery of the goods and, hence, are excluded from ASC 815, Derivatives and Hedging Translation of Foreign Currencies For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of foreign operations are translated into U.S. dollars at current exchange rates. Revenue and expense accounts are translated into U.S. dollars at average exchange rates prevailing during the year. Adjustments resulting from the translation of foreign accounts into U.S. dollars are recorded in foreign currency translation in OCI. Transaction gains and losses that occur as a result of transactions denominated in non-functional currencies are included in earnings and were not significant during the three-year period ended December 31, 2015. Share-Based Compensation Share-based compensation expense is recognized over the vesting period of each award based on the fair value of the instrument at the time of grant as summarized in Note 6, Share-Based Compensation. Income Taxes The Company recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax liability or asset for the estimated future tax effects attributable to temporary differences and carryforwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Deferred tax assets are reduced, if necessary, by the amount of any tax benefits for which the utilization of the asset is not considered likely. Earnings Per Share The difference between basic and diluted earnings per share (“EPS”) is the dilutive effect of stock options and non-vested stock. Diluted EPS assumes that non-vested stock has vested and all dilutive stock options, for which the average market price exceeds the exercise price (in-the-money), are exercised. Stock options for which the exercise price exceeds the average market price (out-of-the-money) have an anti-dilutive effect on EPS, and accordingly, are excluded from the calculation. The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the years ended December 31: Years Ended December 31, (in thousands except per share amounts) 2015 2014 2013 Numerator: Net earnings from continuing operations $ 107,247 $ 81,771 $ 114,298 Denominator: Denominator for basic earnings per share - weighted average common shares 45,910 48,525 49,755 Effect of dilutive securities 294 294 179 Denominator for diluted earnings per share - diluted weighted average shares outstanding 46,204 48,819 49,934 Earnings per common share from continuing operations Basic $ 2.34 $ 1.69 $ 2.30 Diluted $ 2.32 $ 1.67 $ 2.29 The Company has a share-based compensation plan under which employees may be granted share-based awards in which non-forfeitable dividends are paid on non-vested shares for certain awards. As such, these shares are considered participating securities under the two-class method of calculating EPS as described in ASC 260, Earnings per Share. In 2015, 2014 and 2013, there were no anti-dilutive stock options. All EPS amounts are presented on a diluted basis unless otherwise noted. Accumulated Other Comprehensive Income (Loss) Accumulated OCI is composed primarily of foreign currency translation, pension liability and unrealized gains or losses on cash flow hedges. See Note 8, Accumulated Other Comprehensive Income, Research and Development Research and development costs are recorded in selling and administrative expenses in the year they are incurred. Research and development costs related to continuing operations were $35.1 million, $35.9 million and $34.1 million during the years ended December 31, 2015, 2014 and 2013, respectively. Advertising Advertising costs are recorded in selling and administrative expenses as they are incurred. Advertising costs related to continuing operations were $1.7 million, $1.9 million and $1.6 million during the years ended December 31, 2015, 2014 and 2013, respectively. Environmental Liabilities The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and reasonably estimable. Such accruals are adjusted as further information becomes available or as circumstances change. Estimated future expenditures are discounted to their present value when the timing and amount of future cash flows are fixed and readily determinable. Recoveries of remediation costs from other parties, if any, are recognized as assets when their receipt is realizable. Subsequent Events The Company performed an evaluation of subsequent events through the date these financial statements were issued and no such events were identified. New Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Balance Sheet Classification of Deferred Taxes In April 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 In July 2015, the FASB affirmed its proposed one-year deferral of the effective date for ASU No. 2014-09, Revenue from Contracts with Customers. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions [Abstract] | |
Acquisitions | 2. 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 $6.2 million. The Company identified intangible assets, principally technological know-how of $1.1 million, trade names of $0.6 million, and allocated the remaining excess of $4.5 million to goodwill. The Company incurred $0.8 million of acquisition related costs for the year ended December 31, 2015, which are recorded in the Corporate & Other segment. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 3 . At December 31, 2015 and 2014, goodwill is the only intangible asset that is not subject to amortization. The following table summarizes intangible assets with determinable useful lives by major category as of December 31, 2015 and 2014: 2015 2014 (In thousands except weighted average amortization years) Weighted Average Amortization Years Cost Accumulated Amortization Cost Accumulated Amortization Technological know-how 20.0 $ 7,387 $ (4,738 ) $ 6,459 $ (4,352 ) Customer relationships 20.0 6,575 (4,332 ) 6,938 (4,170 ) Patents, trademarks, non-compete agreements and other 19.3 10,423 (6,106 ) 9,753 (5,868 ) Total finite-lived intangibles 19.7 $ 24,385 $ (15,176 ) $ 23,150 $ (14,390 ) In 2015, the Company identified $1.7 million of acquisition related intangible assets, primarily technological know-how and trade names, which are included in the above table. Amortization of intangible assets was $1.2 million in both 2015 and 2014 and $1.3 million in 2013. Estimated amortization expense each year for the five years subsequent to December 31, 2015, is $1.2 million in 2016, $1.1 million in 2017, $1.0 million in 2018 and 2019, and $0.9 million in 2020. The changes in goodwill for the years ended December 31, 2015 and 2014, by reportable business segment, were as follows: (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Balance as of December 31, 2013 $ 136,637 $ 317,323 $ 3,309 $ 457,269 Currency translation impact (10,614 ) (22,050 ) (333 ) (32,997 ) Impairment (1) — (158 ) — (158 ) Balance as of December 31, 2014 126,023 295,115 2,976 424,114 Currency translation impact (11,675 ) (17,272 ) (26 ) (28,973 ) Acquisition — 4,505 — 4,505 Balance as of December 31, 2015 $ 114,348 $ 282,348 $ 2,950 $ 399,646 (1) A portion of the Color segment’s goodwill that was written down in 2014 related to the discontinued operation. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt [Abstract] | |
Debt | 4. Debt Long-term Debt Long-term debt consisted of the following unsecured obligations at December 31: (in thousands) 2015 2014 3.66% senior notes due November 2023 $ 75,000 $ 75,000 3.06% Euro-denominated senior notes due November 2023 41,545 46,270 1.85% Euro-denominated senior notes due November 2022 72,623 — 4.47% senior notes due November 2018 25,000 25,000 4.14% senior notes due November 2017 25,000 25,000 4.91% senior notes due through May 2017 77,000 88,000 3.77% senior notes due November 2016 25,000 25,000 Term loan 167,875 98,750 Long-term revolving loan agreement 103,343 65,987 Various other notes 1,491 2,004 613,877 451,011 Less current maturities — — Total long-term debt $ 613,877 $ 451,011 On November 6, 2015, the Company increased and extended the maturity of its credit facility. The credit facility, consisting of a $170 million term loan and a $350 million revolver, will mature on November 6, 2020. It replaces the $450 million credit facility originally entered into in October 2014, consisting of a $100 million term loan and a $350 million revolver. Interest rates on borrowings under the current 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, notes of €67 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 were used to refinance existing debt. The borrowings under the long-term revolving loan agreement had an average interest rate of 1.36% and 1.54% for the years ended December 31, 2015 and 2014, respectively. The aggregate amounts of contractual maturities on long-term debt each year for the five years subsequent to December 31, 2015, are as follows: 2016, $45.9 million; 2017, $103.9 million; 2018, $38.9 million; 2019, $17.1 million; and 2020, $218.2 million. The Company has approximately $45.9 million of long-term debt that matures in 2016. It is the Company’s intention and ability to refinance these maturities under the long-term revolving loan agreement and accordingly, that maturing debt has been classified as long-term debt in the Consolidated Balance Sheet. The Company had $255.3 million available under the revolving loan agreement and $86.3 million available under other lines of credit from several banks at December 31, 2015. Substantially all of the senior loan agreements contain restrictions concerning interest coverage, borrowings and investments. The Company is in compliance with all of these restrictions at December 31, 2015. The following table summarizes the Company’s most restrictive loan covenants calculated in accordance with the applicable agreements as of December 31, 2015: Actual Required Debt to EBITDA (1) 2.49 3.50 Interest Coverage (Minimum) 7.60 2.00 (1) Debt to EBITDA is defined in the Company’s debt covenants as total funded debt divided by the Company’s consolidated operating income excluding non-operating gains and losses and depreciation and amortization. The Company had stand-by and trade letters of credit outstanding of $6.3 million as of December 31, 2015 and 2014. Short-term Borrowings The Company’s short-term borrowings consisted of the following items at December 31: (in thousands) 2015 2014 Uncommitted loans $ 18,580 $ 14,086 Loans of foreign subsidiaries 2,075 1,802 Total $ 20,655 $ 15,888 The weighted average interest rates on short-term borrowings were 1.62% and 1.66% at December 31, 2015 and 2014, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activity [Abstract] | |
Derivative Instruments and Hedging Activity | 5. Derivative Instruments and Hedging Activity The Company may use derivative instruments for the purpose of hedging currency, commodity and interest rate exposures, which exist as part of ongoing business operations. As a policy, the Company does not engage in speculative or leveraged transactions, nor does the Company hold or issue financial instruments for trading purposes. Hedge effectiveness is determined by how closely the changes in the fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged transaction. Hedge accounting, which generally results in the deferral of derivative gains and losses until such time as the underlying transaction is recognized in net earnings, is permitted only if the hedging relationship is expected to be highly effective at the inception of the transaction and on an ongoing basis. Any ineffective portions are recognized in earnings immediately. The Company manages its exposure to foreign exchange risk by the use of forward exchange contracts to reduce the effect of fluctuating foreign currencies on non-functional currency sales, purchases, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company also uses certain debt denominated in foreign currencies to manage the net asset positions of the Company’s foreign subsidiaries. The Company’s primary hedging activities and their accounting treatment are summarized below: Forward Exchange Contracts Certain forward exchange contracts have been designated as cash flow hedges. The Company had $35.2 million and $17.8 million of forward exchange contracts, designated as hedges, outstanding as of December 31, 2015 and 2014, respectively. As of December 31, 2015 the amount deferred in OCI was not material to the financial statements. For the years ended December 31, 2015 and 2014, a loss of $1.2 million and a gain of $0.1 million, respectively, were reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the earnings impact of the related non-functional asset or liability hedged in the same period. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges and the results of these transactions are not material to the financial statements. Net Investment Hedges The Company has certain debt denominated in Euros and Swiss Francs. These debt instruments have been designated as partial hedges of the Company’s Euro and Swiss Franc net asset positions. Changes in the fair value of this debt attributable to changes in the spot foreign exchange rate are recorded in foreign currency translation in OCI. As of December 31, 2015 and 2014, the total value of the Company’s Euro and Swiss Franc debt designated as net investment hedges was $162.5 million and $97.3 million, respectively. The impact of foreign exchange rates on these debt instruments has decreased debt by $7.5 million and $12.7 million for the years ended December 31, 2015 and 2014, respectively. These amounts have been recorded as foreign currency translation in OCI. Concentrations of Credit Risk Counterparties to forward exchange contracts consist of large international financial institutions. While these counterparties may expose the Company to potential losses due to the credit risk of non-performance, losses are not anticipated. Concentrations of credit risk with respect to trade accounts receivable are limited by the large number of customers, generally short payment terms and their dispersion across geographic areas. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 6. Share-Based Compensation The Company has various stock plans under which employees and directors may be granted non-vested stock which vests over a specific time period. The 2007 Stock Plan also allows for the granting of non-qualified stock options or incentive stock options. Upon vesting, the stock options allow the participant to purchase common stock at 100% of the closing market price on the day the options were granted. No options were granted in 2015, 2014 or 2013. As of December 31, 2015, there were 1.2 million shares available to be granted as non-vested stock under the Company’s existing stock plans. Stock options became exercisable over a three-year vesting period, or earlier upon retirement, and expire 10 years from the date of grant. Expense for stock options was recognized on a straight-line basis over three years from the date of grant or over the period from the date of grant until the participant was retirement-eligible, whichever was less. Treasury shares are issued for non-vested stock awards and for the exercise of stock options. The following table summarizes the transactions involving the Company’s stock option plans: (In thousands except exercise price and life) Options Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value Outstanding at December 31, 2012 141 $ 22.35 2.7 $ 1,859 Exercised (48 ) 21.00 Outstanding at December 31, 2013 93 23.04 2.2 2,374 Exercised (27 ) 21.92 Outstanding at December 31, 2014 66 23.49 1.7 2,438 Exercised (21 ) 20.59 Outstanding at December 31, 2015 45 24.84 1.2 1,715 Exercisable at December 31, 2015 45 $ 24.84 1.2 $ 1,715 The aggregate intrinsic value of stock options exercised during 2015, 2014 and 2013, was $0.9 million, $0.8 million and $1.1 million, respectively. As of December 31, 2015, all stock options outstanding were vested. The following table summarizes information concerning outstanding and exercisable stock options at December 31, 2015: Range of Exercise Price (In thousands except life and exercise price) $ 19.03 – 24.14 $ 24.15 – 26.11 $ 26.12 – 30.07 Options outstanding 12 12 21 Weighted average remaining contractual life, in years 0.2 1.1 1.8 Weighted average exercise price $ 19.64 $ 24.35 $ 28.16 Options exercisable 12 12 21 Weighted average exercise price $ 19.64 $ 24.35 $ 28.16 The Company’s stock plans also provide for the awarding of non-vested stock. Prior to December 2014, expense for shares of non-vested stock is recognized over the vesting period or during the period from the date of grant until the participant reaches age 65, whichever is shorter. The vesting period is five years for awards granted prior to December 2013 and three years beginning with awards granted in December 2013. During the period of restriction, the holder of non-vested stock has voting rights and is entitled to receive all dividends and other distributions paid with respect to the stock. The December 2013 grant consisted of 50% performance stock units and 50% time-vesting stock. The number of shares issued under the performance stock units is based on certain performance metrics measured over a two-year performance period and the awards have a three-year vesting period. Two year performance that exceeds the stated performance metrics would result in an award up to 150% of the original grant. The holders of the performance stock units are not entitled to vote or receive dividends and other distributions paid with respect to the stock, until the units have vested and the shares of stock are issued. The December 2014 and 2015 grants consisted of 100% performance stock unit awards which are based on a three-year performance and vesting period and a pro-rata vesting upon retirement. Three year performance that exceeds the stated performance metrics would result in an award up to 150% of the original grant. The holders of the performance stock units are not entitled to vote or receive dividends and other distributions paid with respect to the stock, until the units have vested and the shares of stock are issued. The Company expenses awards for non-vested stock, including time-vesting stock and performance stock units, based on the fair value of the Company’s common stock at the date of the grant. The following table summarizes the non-vested stock and performance stock unit activity: (In thousands except fair value) Shares Grant Date Weighted Average Fair Value Aggregate Intrinsic Value Outstanding at December 31, 2012 339 $ 33.22 $ 12,046 Granted 262 46.14 Vested (94 ) 40.57 Cancelled (10 ) 42.22 Outstanding at December 31, 2013 497 38.46 24,095 Granted 171 55.21 Vested (40 ) 27.15 Cancelled (24 ) 40.84 Outstanding at December 31, 2014 604 43.84 36,454 Granted 154 60.65 Vested (74 ) 35.51 Cancelled (142 ) 47.02 Outstanding at December 31, 2015 542 $ 48.94 $ 34,063 The total intrinsic values of shares vested during 2015, 2014 and 2013, was $4.8 million, $2.2 million and $4.4 million, respectively. As of December 31, 2015, total remaining unearned compensation, net of expected forfeitures, related to non-vested stock and performance stock units was $14.9 million, which will be amortized over the weighted average remaining service period of 1.68 years. Total pre-tax share-based compensation recognized in the Consolidated Statements of Earnings was $1.6 million, $6.3 million and $8.4 million in 2015, 2014 and 2013, respectively. Tax related benefits of $1.4 million, $2.4 million and $2.6 million were also recognized in 2015, 2014 and 2013, respectively. Cash received from the exercise of stock options was $0.4 million, $0.6 million and $1.0 million for 2015, 2014 and 2013, respectively, and is reflected in cash flows from financing activities in the Consolidated Statements of Cash Flows. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Retirement Plans [Abstract] | |
Retirement Plans | 7. Retirement Plans The Company provides benefits under defined contribution plans including a savings plan and an employee stock ownership plan (“ESOP”). The savings plan covers substantially all domestic salaried and certain non-union hourly employees and provides for matching contributions up to 4% of each employee’s salary. The ESOP covers substantially all domestic employees and provides for contributions based on a percentage of each employee’s compensation as determined by the Company’s Board of Directors. Total expense for the Company’s defined contribution plans was $5.4 million in 2015, $5.0 million in 2014, and $4.7 million in 2013. Although the Company intends for these defined contribution plans to be the primary retirement benefit for most employees, the Company also has several defined benefit plans. The funded status of the defined benefit plans was as follows at December 31: (in thousands) 2015 2014 Benefit obligation at beginning of year $ 55,396 $ 72,582 Service cost 2,692 2,523 Interest cost 1,803 2,390 Foreign currency exchange rate changes (2,379 ) (1,889 ) Benefits paid (10,708 ) (23,726 ) Actuarial (gain) loss (1,173 ) 5,858 Curtailment gain (121 ) (2,342 ) Other 849 - Benefit obligation at end of year 46,359 55,396 Plan assets at beginning of year 39,520 37,122 Company contributions 10,204 22,402 Foreign currency exchange rate changes (2,859 ) (2,379 ) Benefits paid (10,708 ) (23,726 ) Actual gain on plan assets 79 6,101 Plan assets at end of year 36,236 39,520 Funded status $ (10,123 ) $ (15,876 ) Accumulated benefit obligation $ 45,217 $ 54,435 In 2014, two of the Company’s defined benefit plans were frozen resulting in the recognition of a curtailment gain. The changes to these plans will limit the plans to the current participants as well as freeze their respective benefits. In addition, a curtailment loss was recognized for a certain defined benefit plan associated with a closure of a facility. These changes did not have a material impact on the Company’s 2015 or 2014 results, and are not expected to have a material impact on future years’ results. The decrease in benefit payments in 2015 from 2014, was primarily due to the retirement of the Company’s former Chief Executive Officer, who received his defined benefit pension in a lump sum payment during 2014. Amounts recognized in the Consolidated Balance (in thousands) 2015 2014 Accrued employee and retiree benefits $ (14,129 ) $ (18,258 ) Other accrued expenses (5,927 ) (7,263 ) Prepaid expenses and other current assets 9,933 9,645 Net liability $ (10,123 ) $ (15,876 ) Components of annual benefit cost: (In thousands) 2015 2014 2013 Service cost $ 2,692 $ 2,523 $ 3,260 Interest cost 1,803 2,390 2,557 Expected return on plan assets (1,210 ) (1,791 ) (1,689 ) Amortization of prior service cost — 171 172 Recognized actuarial loss (gain) 228 (305 ) 3,203 Settlement expense 1,119 1,467 1,177 Curtailment gain (104 ) (754 ) — Defined benefit expense $ 4,528 $ 3,701 $ 8,680 Weighted average liability assumptions as of December 31: 2015 2014 Discount rate 3.94 % 3.70 % Expected return on plan assets 3.40 % 3.32 % Rate of compensation increase 0.35 % 0.37 % Weighted average cost assumptions for the year ended December 31: 2015 2014 Discount rate 3.70 % 3.91 % Expected return on plan assets 3.32 % 5.12 % Rate of compensation increase 0.37 % 4.59 % The aggregate amounts of benefits expected to be paid from defined benefit plans in each of the next five years subsequent to December 31, 2015, which include employees’ expected future service, are as follows: 2016, $7.1 million; 2017, $2.0 million; 2018, $4.2 million; 2019, $1.9 million; 2020, $2.1 million and $15.0 million in total for the years 2021 through 2025. The Company expects to contribute $6.5 million to defined benefit plans in 2016. Amounts in accumulated other comprehensive income at December 31 were as follows: (In thousands) 2015 2014 Unrecognized net actuarial loss $ 5,725 $ 7,407 The pension adjustments, net of tax, recognized in OCI, were as follows: (In thousands) 2015 2014 2013 Net actuarial (loss) gain arising during the period $ (140 ) $ (387 ) $ 3,180 Amortization of actuarial loss, included in defined benefit expense 917 1,252 2,006 Amortization of prior service cost, included in defined benefit expense — 733 108 Pension adjustment, net of tax $ 777 $ 1,598 $ 5,294 The estimated actuarial loss for the defined benefit plans that will be amortized from accumulated other comprehensive loss into periodic benefit cost during 2016 is $0.3 million. The investment objectives and target allocations for the Company’s pension plans related to the assets of the plans are reviewed on a regular basis. The investment objectives for the pension assets are to maximize the return on assets while maintaining an overall level of risk appropriate for a retirement fund and ensuring the availability of funds for the payment of retirement benefits. The levels of risk assumed by the pension plans are determined by market conditions, the rate of return expectations and the liquidity requirements of each pension plan. The actual asset allocations of each pension plan are reviewed on a regular basis to ensure that they are in line with the target allocations. The following table presents the Company’s pension plan assets by asset category as of December 31, 2015 and 2014: Fair Value as of December 31, Fair Value Measurements at December 31, 2015 Using Fair Value Hierarchy Fair Value as of December 31, Fair Value Measurements at December 31, 2014 Using Fair Value Hierarchy (in thousands) 2015 Level 1 Level 2 Level 3 2014 Level 1 Level 2 Level 3 Equity Funds Domestic $ 6,064 $ 6,064 $ — $ — $ 6,424 $ 6,424 $ — $ — International 179 3 176 — 242 — 242 — International Fixed Income Funds 22,374 711 21,663 — 22,710 960 21,750 — Other investments 7,619 40 7,579 — 10,144 38 10,106 — Total assets at fair value $ 36,236 $ 6,818 $ 29,418 $ — $ 39,520 $ 7,422 $ 32,098 $ — The Company is required to categorize pension plan assets based on the following fair value hierarchy: Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data. Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 8. Accumulated Other Comprehensive Income The following tables summarize the changes in OCI for 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 income before reclassifications (993 ) (140 ) (85,551 ) (86,684 ) Amounts reclassified from OCI 833 917 - 1,750 Balance as of December 31, 2015 $ 164 $ (4,393 ) $ (165,833 ) $ (170,062 ) (a) Cash Flow Hedges and Pension Items are net of tax. See Note 7, Retirement Plans, Derivative Instruments and Hedging Activity, |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income Taxes The provision for income taxes for continuing operations was as follows: (In thousands) 2015 2014 2013 Currently payable: Federal $ 20,794 $ 18,642 $ 21,252 State 2,936 2,264 3,065 Foreign 23,873 25,435 25,175 47,603 46,341 49,492 Deferred (benefit) expense: Federal 5,779 1,532 (5,125 ) State (772 ) (935 ) 502 Foreign (10,461 ) (14,111 ) (1,534 ) (5,454 ) (13,514 ) (6,157 ) Income taxes $ 42,149 $ 32,827 $ 43,335 The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following: (in thousands) 2015 2014 Deferred tax assets: Benefit plans $ 12,901 $ 15,507 Liabilities and reserves 18,986 19,384 Operating loss and credit carryovers 59,013 57,128 Other 3,226 6,872 Gross deferred tax assets 94,126 98,891 Valuation allowance (36,008 ) (43,055 ) Deferred tax assets 58,118 55,836 Deferred tax liabilities: Property, plant and equipment (1,850 ) (1,619 ) Other assets (907 ) (1,462 ) Goodwill (27,824 ) (28,583 ) Other (8,000 ) (1,426 ) Deferred tax liabilities (38,581 ) (33,090 ) Net deferred tax assets $ 19,537 $ 22,746 As of December 31, 2015, $8.1 million of the net deferred tax asset balance, is a non-current asset and is reported in the other assets line item in the Consolidated Balance Sheet. At December 31, 2015, foreign operating loss carryovers were $117.3 million. Included in the foreign operating loss carryovers are losses of $14.8 million that expire through 2030 and $102.5 million that do not have an expiration date. At December 31, 2015, state operating loss carryovers were $145.2 million, all of which expire through 2030. The effective tax rate for continuing operations differed from the statutory federal income tax rate of 35% as described below: 2015 2014 2013 Taxes at statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 1.7 1.9 1.1 Tax credits (0.7 ) (0.4 ) (0.3 ) Taxes on foreign earnings (0.8 ) (4.7 ) (5.3 ) Resolution of prior years’ tax matters (0.3 ) (0.6 ) (0.7 ) U.S. manufacturing deduction (1.9 ) (2.0 ) (1.6 ) Valuation allowance adjustments (5.0 ) 0.2 (0.8 ) Other, net 0.2 (0.8 ) 0.1 Effective tax rate 28.2 % 28.6 % 27.5 % Taxes on foreign earnings include the difference between the tax rates applied to foreign earnings relative to the U.S. statutory tax rate, accruals for foreign unrecognized tax benefits, and the impact of the U.S. foreign tax credit. The impact on the Company’s effective tax rate varies from year to year based on the mix of earnings, increases in foreign unrecognized tax benefits, and the expected realization of U.S. foreign tax credits generated each year. The 2015 reduction in the effective tax rate from the valuation allowance adjustments is the result of a tax audit settlement and a change in projections on the utilization of certain deferred tax assets. Earnings from continuing operations before income taxes were as follows: (In thousands) 2015 2014 2013 United States $ 87,749 $ 56,211 $ 55,461 Foreign 61,647 58,387 102,172 Total $ 149,396 $ 114,598 $ 157,633 Federal and state income taxes are provided on international subsidiary income distributed to or taxable in the United States during the year. At December 31, 2015, federal and state taxes have not been provided for approximately $430.2 million of unremitted earnings of the foreign subsidiaries that are considered to be invested indefinitely. Determination of the deferred tax liability on such earnings is not practicable. A reconciliation of the change in the liability for unrecognized tax benefits for 2015 and 2014 is as follows: (in thousands) 2015 2014 Balance at beginning of year $ 13,940 $ 5,295 Increases for tax positions taken in the current year 1,322 718 Increases for tax positions taken in prior years 1,061 10,238 Decreases related to settlements with tax authorities (10,610 ) (1,044 ) Decreases as a result of lapse of the applicable statutes of limitations (278 ) (751 ) Foreign currency exchange rate changes (472 ) (516 ) Balance at the end of year $ 4,963 $ 13,940 The amount of the unrecognized tax benefits that would affect the effective tax rate, if recognized, was approximately $4.3 million. The Company recognizes interest and penalties related to the unrecognized tax benefits in income tax expense. As of December 31, 2015 and 2014, $0.5 million of accrued interest and penalties were reported as an income tax liability in each period. The $10.6 million decrease related to Settlements with Tax Authorities The Company believes that it is reasonably possible that the total amount of liability for unrecognized tax benefits as of December 31, 2015, will decrease by approximately $0.5 million during 2016, of which $0.5 million is estimated to impact the effective tax rate. The potential decrease relates to various tax matters for which the statute of limitations may expire or will be otherwise settled in 2016. The amount that is ultimately recognized in the financial statements will be dependent upon various factors including potential increases or decreases in unrecognized tax benefits as a result of examinations, settlements and other unanticipated items that may occur during the year. With limited exceptions, the Company is no longer subject to federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2010. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment and Geographic Information [Abstract] | |
Segment and Geographic Information | 10. Segment and Geographic Information The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on operating income of the respective business units before restructuring and other charges, interest expense and income taxes (“ segment operating income Assets by business segment and geographic region are those assets used in the Company’s operations in each segment and geographic region. Segment assets reflect the allocation of goodwill to each segment. Corporate & Other assets consist primarily of fixed assets and investments. Segment Information The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. Segment performance is evaluated on operating income of the respective business units before restructuring charges which are reported in the Corporate & Other segment. The Company’s reportable segments consist of the Flavors & Fragrances, Color, and Asia Pacific segments. The Asia Pacific segment, which was previously reported in the Corporate & Other segment, meets the quantitative thresholds outlined in ASC 280 The Company’s Flavors & Fragrances segment produces flavor and fragrance products that impart a desired taste, texture, aroma or other characteristic to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for pharmaceuticals, foods and beverages; colors and formulations for cosmetics; and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces color, flavor and fragrance products for the Asia Pacific countries. The results of operations for the Company’s businesses in Central and South America have been included in the Flavors & Fragrances segment, beginning in 2015. Previously, they had been reported in the Corporate & Other segment. All prior year results have been restated to reflect each of these changes. Restructuring and other costs related to continuing operations for the years ended December 31, 2015, 2014, and 2013, are further described in Note 12, Restructuring Charges, (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated 2015: Revenue from external customers $ 793,386 $ 452,203 $ 130,375 $ — $ 1,375,964 Intersegment revenue 25,623 18,736 180 — 44,539 Total revenue 819,009 470,939 130,555 — 1,420,503 Operating income (loss) 121,874 94,799 25,496 (75,828 ) 166,341 Interest expense — — — 16,945 16,945 Earnings (loss) before income taxes from continuing operations 121,874 94,799 25,496 (92,773 ) 149,396 Assets 806,401 706,769 82,696 115,571 1,711,437 Capital expenditures 56,233 18,933 2,643 2,132 79,941 Depreciation and amortization 24,049 18,529 2,349 3,012 47,939 2014: Revenue from external customers $ 825,976 $ 488,762 $ 133,083 $ — $ 1,447,821 Intersegment revenue 25,570 20,574 229 — 46,373 Total revenue 851,546 509,336 133,312 — 1,494,194 Operating income (loss) 120,888 114,014 25,122 (129,359 ) 130,665 Interest expense — — — 16,067 16,067 Earnings (loss) before income taxes from continuing operations 120,888 114,014 25,122 (145,426 ) 114,598 Assets 819,366 747,738 84,842 113,260 1,765,206 Capital expenditures 41,244 31,883 2,010 4,261 79,398 Depreciation and amortization 26,316 18,843 2,473 3,824 51,456 2013: Revenue from external customers $ 854,515 $ 475,061 $ 132,550 $ — $ 1,462,126 Intersegment revenue 26,071 21,246 97 — 47,414 Total revenue 880,586 496,307 132,647 — 1,509,540 Operating income (loss) 121,806 107,214 22,161 (77,401 ) 173,780 Interest expense — — — 16,147 16,147 Earnings (loss) before income taxes from continuing operations 121,806 107,214 22,161 (93,548 ) 157,633 Assets 901,870 778,864 87,708 102,292 1,870,734 Capital expenditures 59,086 38,639 1,670 4,851 104,246 Depreciation and amortization 27,575 17,607 2,543 4,291 52,016 Geographic Information The Company has manufacturing facilities or sales offices in North America, Europe, Asia, Australia, South America and Africa. The Company’s annual revenue from continuing operations summarized by geographic location is as follows: (In thousands) 2015 2014 2013 Revenue from external customers: North America $ 744,481 $ 750,345 $ 782,088 Europe 349,100 389,588 382,077 Asia Pacific 177,559 193,163 188,917 Other 104,824 114,725 109,044 Consolidated $ 1,375,964 $ 1,447,821 $ 1,462,126 Long-lived assets: North America $ 524,921 $ 537,668 $ 531,005 Europe 397,244 423,972 506,352 Asia Pacific 26,589 29,948 32,148 Other 9,340 14,229 11,404 Consolidated $ 958,094 $ 1,005,817 $ 1,080,909 Sales in the United States, based on the final country of destination of the Company’s products, were $592.9 million, $573.6 million and $590.0 million in 2015, 2014 and 2013, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $469.4 million, $450.8 million and $389.7 million at December 31, 2015, 2014 and 2013, respectively. Product Information The Company’s revenue from continuing operations summarized by product portfolio is as follows: (In thousands) 2015 2014 2013 Traditional Flavors & Fragrances $ 667,941 $ 715,789 $ 727,659 Natural Ingredients 240,793 227,538 244,155 Food & Beverage Colors 328,200 335,771 308,371 Non-Food Colors 183,569 215,096 229,355 Interdivision Revenue (44,539 ) (46,373 ) (47,414 ) Consolidated $ 1,375,964 $ 1,447,821 $ 1,462,126 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 11. Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, Retirement Plans, The carrying values of the Company’s cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses and short-term borrowings approximated fair values as of December 31, 2015 and 2014. The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2 inputs). The carrying value of the long-term debt at December 31, 2015 and 2014, was $613.9 million and $451.0 million, respectively. The fair value of the long-term debt at December 31, 2015 and 2014, was approximately $625.3 million and $464.5 million, respectively |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges Abstract] | |
Restructuring Charges | 12. Restructuring Charges The Company incurred restructuring costs in both continuing and discontinued operations. The discussion in this note relates to the combination of both continuing and discontinued operations unless otherwise noted. Restructuring costs related to discontinued operations are recorded in discontinued operations within the Company’s Consolidated Statements of Earnings and are discussed in more detail in Note 13, 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 segment, 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. In 2015, the Company identified additional opportunities to consolidate manufacturing operations at one of the Color segment’s facilities in Europe and eliminate additional positions in the European Flavors & Fragrances businesses. 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. The fair values of the remaining long-lived assets are estimated to be approximately $19 million, which includes certain of the land, buildings and equipment in the assets held for sale, noted below. 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 $14.5 million and $70.2 million, during the years ended December 31, 2015 and 2014, respectively. Since initiating the Plan, the Company has recorded $84.7 million of long-lived asset impairments, including the impairment charges and accelerated depreciation. In addition, certain intangible assets, inventory and other current assets 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 the affected facilities, primarily in the Flavors & Fragrances segment, related to direct and indirect labor at manufacturing sites. As of December 31, 2015, approximately 220 positions have been eliminated as a result of this Plan. As a part of the Plan, the Company anticipates selling its European Natural Ingredients business, a business in the Flavors & Fragrances segment, in 2016. This business has two facilities, located in Marchais, France and Elburg, the Netherlands, which will be included in the expected sale. The European Natural Ingredients business has not generated significant profits for several years and it does not fit with the Company’s long-term strategic plan. In connection with the anticipated sale of the European Natural Ingredients business, the Company has recorded an impairment charge of $2.0 million in 2015, reducing the carrying value of the long-lived assets for this business to zero. An estimate of the fair value of this business less cost to sell, was determined to be lower than its carrying value. The difference between the fair value and its carrying value exceeded the existing net book value of the long-lived assets. Upon completion of the sale, the Company expects to recognize an additional non-cash loss of approximately $12.0 million. The Company has recorded assets held for sale of land, buildings and equipment of $9.6 million related to the 2014 Restructuring Plan, and inventory, receivable and other assets of $21.4 million related to the anticipated sale of the European Natural Ingredients business. The Company also has $4.1 million of liabilities held for sale related to the anticipated sale of the European Natural Ingredients business. The Company recorded total restructuring costs of $42.8 million and $98.4 million in the years ended December 31, 2015 and 2014, 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 $141 million of restructuring costs through December 31, 2015. The Company expects to incur approximately $16 million of additional restructuring costs by the end of 2016. The Company expects that the closure and sale of these operations will significantly lower the Company’s operating costs over the next few years. Upon initiating the Plan, the Company estimated the annual cost reductions to be approximately $30 million, when fully implemented. The U.S. dollar has strengthened considerably since the initiation of the Plan, and based on the current exchange rates, the dollar value of the same cost savings would now be approximately $22 million. In 2015, the Company identified additional cost savings opportunities, and as a result of these actions, the current estimate of annual cost savings is approximately $27 million. The Company has already realized approximately $12 million of these cost savings, with approximately $3 million realized in 2014 and an additional $9 million in 2015. The Company expects to realize approximately $6 million to $7 million of incremental savings in 2016 and the remaining savings in 2017. The Company has also implemented price increases to further mitigate the impact of foreign currency movements. In connection with the 2014 Restructuring Plan, the Company approved a plan to dispose of a certain business within the Color segment. Production ceased in 2014 and the business met the criteria to be reported as a discontinued operation. The pre-tax loss from discontinued operations, which includes restructuring costs, was not material in 2015 and $11.5 million in 2014. 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 expense by segment and discontinued operations for the years ended December 31, 2015, 2014, and 2013: (In thousands) 2015 2014 2013 Flavors & Fragrances $ 37,309 $ 83,871 $ 22,284 Color 2,113 - 7,065 Asia Pacific 82 261 665 Corporate and Other 3,299 3,240 1,721 Total Continuing Operations 42,803 87,372 31,735 Discontinued Operations 43 10,998 - Total Restructuring (1) $ 42,846 $ 98,370 $ 31,735 (1) In 2014, the Company recorded $3.2 million of proxy costs related to the 2014 proxy contest. These costs were included in this disclosure in the Company’s 2014 Annual Report to Shareholders. These costs have been removed from the disclosure to conform to current year presentation. The Company recorded restructuring costs in continuing operations for the year ended December 31, 2015, as follows: (In thousands) Selling & Cost of Total Employee separation $ 7,155 $ - $ 7,155 Long-lived asset impairment 14,551 - 14,551 Gain on asset sales (1,301 ) - (1,301 ) Write-down of inventory - 6,098 6,098 Other costs (1) 16,300 - 16,300 Total $ 36,705 $ 6,098 $ 42,803 (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 year ended December 31, 2014, as follows: (In thousands) Selling & Cost of Total Employee separation $ 17,794 $ - $ 17,794 Long-lived asset impairment 63,431 - 63,431 Gain on asset sales (602 ) - (602 ) Write-down of inventory - 1,914 1,914 Other costs (1) 4,835 - 4,835 Total (2) $ 85,458 $ 1,914 $ 87,372 (1) Other costs include decommissioning costs, professional services, moving costs and other related costs. (2) In 2014, the Company recorded $3.2 million of proxy costs related to the 2014 proxy contest. These costs were included in this disclosure in the Company’s 2014 Annual Report to Shareholders. These costs have been removed from the disclosure to conform to current year presentation. The Company recorded restructuring costs in continuing operations for the year ended December 31, 2013, as follows: (In thousands) Selling & Cost of Total Employee separation $ 18,081 $ - $ 18,081 Long-lived asset impairment 4,176 - 4,176 Gain on asset sales (3,019 ) - (3,019 ) Write-down of inventory - 1,840 1,840 Other costs (1) 10,657 - 10,657 Total $ 29,895 $ 1,840 $ 31,735 (1) Other costs include decommissioning costs, professional services, moving costs and other related costs. In 2013, the Company completed its 2013 restructuring program related to relocating the Flavors & Fragrances segment headquarters to Chicago and generating operating efficiencies across all segments of the Company by consolidating multiple facilities throughout Europe and North America. The Company recorded $31.7 million of restructuring costs in 2013. The plan resulted in the reduction of global headcount by approximately 280 employees performing various functions. The following table summarizes the accrual activity for the restructuring liabilities for the years ended December 31, 2015 and 2014: (In thousands) Employee Other Costs Total Balance as of December 31, 2013 $ 4,562 $ 1,588 $ 6,150 Expense activity (1) 18,951 4,904 23,855 Cash spent (1) (7,067 ) (5,595 ) (12,662 ) Translation adjustment (1,537 ) - (1,537 ) Balance as of December 31, 2014 $ 14,909 $ 897 $ 15,806 Expense activity 6,853 16,748 23,601 Cash spent (10,174 ) (16,733 ) (26,907 ) Translation adjustment (1,328 ) - (1,328 ) Balance as of December 31, 2015 $ 10,260 $ 912 $ 11,172 (1) In 2014, the Company recorded $3.2 million of proxy costs related to the 2014 proxy contest. These costs were included in this disclosure in the Company’s 2014 Annual Report to Shareholders. These costs have been removed from the disclosure to conform to current year presentation. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 13. Discontinued Operations In connection with the 2014 Restructuring Plan, the Company approved a plan to dispose of a business unit within the Color segment. The Company determined that as of September 30, 2014, the business met the criteria to be presented as a discontinued operation as established in ASC Subtopic 205-20, Discontinued Operations. The following table summarizes the discontinued operation’s results, which are included in the loss from discontinued operations in the Consolidated Statements of Earnings for the years ended December 31, 2015, 2014, and 2013: (In thousands) 2015 2014 2013 Net sales $ 187 $ 5,197 $ 5,424 Loss from discontinued operations before income taxes (471 ) (11,496 ) (1,418 ) Income tax benefit 9 3,371 415 Loss from discontinued operations, net of tax $ (462 ) $ (8,125 ) $ (1,003 ) Pre-tax restructuring costs are included in the loss before income taxes from discontinued operations. For the year ended December 31, 2015, the restructuring costs were not material and for the year ended December 31, 2014, these costs were $11.0 million. See Note 12, Restructuring Charges, for additional information. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Leases The Company leases certain facilities and equipment under operating lease arrangements. Aggregate minimum rental commitments at December 31, 2015, for all noncancelable operating leases with an initial lease term greater than one year for the years ending December 31 are as follows: 2016, $9.8 million; 2017, $6.3 million; 2018, $4.2 million; 2019, $2.3 million; 2020, $1.6 million and $1.8 million thereafter. Rent expense from continuing operations totaled $12.3 million, $10.7 million and $10.6 million during the years ended December 31, 2015, 2014 and 2013, respectively. Commercial Litigation U.S. Equal Employment Opportunity Commission Civil Complaint On September 21, 2015, the U.S. Equal Employment Opportunity Commission filed a civil complaint against Sensient Natural Ingredients LLC (SNI) in the U.S. District Court for the Eastern District of California. SNI is a wholly owned subsidiary of the Company. The EEOC’s complaint alleges that SNI failed to comply with the Americans with Disabilities Act (ADA), as amended, when it terminated five employees in 2011. The EEOC seeks to enjoin SNI from engaging in employment practices that discriminate on the basis of disability; asks the Court to order SNI to implement policies, practices, and programs to ensure it does not violate the ADA; and requests back pay with prejudgment interest, reinstatement, front pay, compensation for past and future pecuniary and non-pecuniary losses, and punitive damages on behalf of the five named former employees and any similarly aggrieved individuals. Recoverable compensatory and punitive damages are subject to statutory caps. The complaint does not request a specific damages amount. To date, the EEOC has provided the Company with a list of 13 additional potentially aggrieved former employees not listed in the complaint who may have been terminated in violation of the ADA during the relevant time period. The Company is vigorously investigating the facts alleged in the complaint to determine what exposure SNI may have. Since 2013, SNI’s on-site human resources representatives have worked closely with both Company counsel and outside labor and employment counsel to ensure that all policies, procedures and actions, including terminations, comply with applicable law. At this early stage, it is not possible to assess the probability of any legal or financial exposure in this matter. Other Claims The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts (in thousands); Years Ended December 31, 2015, 2014 and 2013 Valuation Accounts Deducted in the Balance Sheet From the Assets to Which They Apply Balance at Beginning of Period Additions Charged to Costs and Expenses Additions Recorded During Acquisitions Deductions (A) Balance at End of Period 2013 Allowance for losses: Trade accounts receivable $ 3,045 $ 1,413 $ 0 $ 130 $ 4,327 2014 Allowance for losses: Trade accounts receivable $ 4,327 $ 896 $ 0 $ 1,385 $ 3,838 2015 Allowance for losses: Trade accounts receivable $ 3,838 $ 1,459 $ 0 $ 1,426 $ 3,871 (A) Accounts written off, net of recoveries. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Sensient Technologies Corporation, together with its subsidiaries (the “Company”), is a leading global manufacturer and marketer of colors, flavors and fragrances. The Company uses advanced technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, specialty inks and colors, and other specialty and fine chemicals. The Company’s reportable segments consist of the Flavors & Fragrances and Color Groups, which are managed on a products and services basis; the Asia Pacific Group, which is managed on a geographic basis; and Corporate & Other. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations for one of the Company’s business units within the Color Group have been reported as a discontinued operation for all periods presented. The corresponding assets have been reclassified in accordance with the authoritative literature on assets held for sale as of December 31, 2015. See Note 13, Discontinued Operations, |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets, liabilities, revenue and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue (net of estimated discounts, allowances and returns) when title to goods passes, the customer is obligated to pay the Company and the Company has no remaining obligations. Such recognition typically corresponds with the shipment of goods. |
Cost of Products Sold | Cost of Products Sold Cost of products sold includes materials, labor and overhead expenses incurred in the manufacture of our products. Cost of products sold also includes charges for obsolete and slow moving inventories, as well as costs for quality control, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, other costs of our internal distribution network and costs incurred for shipping and handling. The Company records fees billed to customers for shipping and handling as revenue. |
Selling and Administrative Expenses | Selling and Administrative Expenses Selling and administrative expenses primarily include the salaries and related costs for executive, finance, accounting, human resources, information technology, research and development and legal personnel as well as salaries and related costs of salespersons and commissions paid to external sales agents. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the date of acquisition as cash equivalents. |
Accounts Receivable | Accounts Receivable Receivables are recorded at their face amount, less an allowance for doubtful accounts. The allowance for doubtful accounts is based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Specific accounts are written off against the allowance for doubtful accounts when it is deemed that the receivable is no longer collectible. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Market is determined on the basis of estimated realizable values. Cost is determined using the first-in, first-out (“FIFO”) method with the exception of certain locations of the Flavors & Fragrances Group where cost is determined using a weighted average method. Inventories include finished and in-process products totaling $291.9 million and $308.7 million at December 31, 2015 and 2014, respectively, and raw materials and supplies of $117.3 million and $140.7 million at December 31, 2015 and 2014, respectively. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost reduced by accumulated depreciation. Depreciation is provided over the estimated useful life of the related asset using the straight-line method for financial reporting. The estimated useful lives for buildings and leasehold improvements range from 5 to 40 years. Machinery and equipment have estimated useful lives ranging from 3 to 20 years. Interest costs on significant projects constructed or developed for the Company’s own use are capitalized as part of the asset. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The carrying value of goodwill is evaluated for impairment on an annual basis or more frequently when an indicator of impairment occurs. The impairment assessment includes comparing the carrying amount of net assets, including goodwill, of each reporting unit to its respective fair value as of the date of the assessment. Fair value was estimated based upon an evaluation of the reporting unit’s estimated future discounted cash flow as well as the public trading and private transaction valuation multiples for comparable companies. The Company performed such a quantitative analysis in 2014, which indicated a substantial premium compared to the carrying value of net assets, including goodwill. In 2015, the Company completed a qualitative assessment in comparison to the 2014 quantitative assessment, noting no indicators of a change in fair value. The Company did not record impairment charges for any of its reporting units in 2015, 2014 or 2013. The cost of intangible assets with determinable useful lives is amortized on a straight-line basis to reflect the pattern of economic benefits consumed, ranging from 5 to 20 years. These assets include technological know-how, customer relationships, patents, trademarks and non-compete agreements, among others. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if potential impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on the difference between fair value and carrying value. Impairment losses were recorded as a result of the Company’s 2014 Restructuring Plan. See Note 12, Restructuring Charges, |
Derivative Financial Instruments | Derivative Financial Instruments The Company selectively uses derivative financial instruments to reduce market risk associated with changes in foreign currency and interest rate exposures which exist as part of ongoing business operations. All derivative transactions are authorized and executed pursuant to the Company’s risk management policies and procedures, which strictly prohibit the use of financial instruments for speculative trading purposes. The primary objectives of the foreign exchange risk management activities are to understand and mitigate the impact of potential foreign exchange fluctuations on the Company’s financial results and its economic well-being. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. Generally, these risk management transactions involve the use of foreign currency derivatives to protect against exposure resulting from recorded accounts receivable and payable. The Company may utilize forward exchange contracts, generally with maturities of less than 18 months, which qualify as cash flow hedges. Generally, these foreign exchange contracts are intended to offset the effect of exchange rate fluctuations on non-functional currency denominated sales and purchases. For derivative instruments that are designated as cash flow hedges, gains and losses are deferred in accumulated other comprehensive (loss) income (“OCI”) until the underlying transaction is recognized in earnings. Hedge effectiveness is determined by how closely the changes in the fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged item. Hedge accounting is permitted only if the hedging relationship is expected to be highly effective at the inception of the transaction and on an ongoing basis. Any ineffective portions are recognized in earnings immediately. The Company’s existing cash flow hedges are highly effective. As a result, any current impact on earnings due to cash flow hedge ineffectiveness is immaterial. |
Interest Rate Hedging | Interest Rate Hedging The Company is exposed to interest rate risk through its corporate borrowing activities. The objective of the Company’s interest rate risk management activities is to manage the levels of the Company’s fixed and floating interest rate exposure to be consistent with the Company’s preferred mix. The interest rate risk management program may include entering into interest rate swaps, which qualify as fair value hedges, when there is a desire to modify the Company’s exposure to interest rates. Gains or losses on fair value hedges are recognized in earnings, net of gains and losses on the fair value of the hedged instruments. |
Net Investments Hedging | Net Investments Hedging The Company may enter into foreign-denominated debt to be used as a non-derivative instrument to hedge the Company’s net investment in foreign subsidiaries. The change in the carrying amount of the foreign-denominated debt on the Company’s books, attributable to changes in the spot foreign exchange rate, is a hedge of the net investment in its foreign subsidiaries. Changes in the fair value of debt designated as a net investment hedge are recorded in foreign currency translation in OCI. |
Commodity Purchases | Commodity Purchases The Company purchases certain commodities in the normal course of business that result in physical delivery of the goods and, hence, are excluded from ASC 815, Derivatives and Hedging |
Translation of Foreign Currencies | Translation of Foreign Currencies For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of foreign operations are translated into U.S. dollars at current exchange rates. Revenue and expense accounts are translated into U.S. dollars at average exchange rates prevailing during the year. Adjustments resulting from the translation of foreign accounts into U.S. dollars are recorded in foreign currency translation in OCI. Transaction gains and losses that occur as a result of transactions denominated in non-functional currencies are included in earnings and were not significant during the three-year period ended December 31, 2015. |
Share-Based Compensation | Share-Based Compensation Share-based compensation expense is recognized over the vesting period of each award based on the fair value of the instrument at the time of grant as summarized in Note 6, Share-Based Compensation. |
Income Taxes | Income Taxes The Company recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax liability or asset for the estimated future tax effects attributable to temporary differences and carryforwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Deferred tax assets are reduced, if necessary, by the amount of any tax benefits for which the utilization of the asset is not considered likely. |
Earnings Per Share | Earnings Per Share The difference between basic and diluted earnings per share (“EPS”) is the dilutive effect of stock options and non-vested stock. Diluted EPS assumes that non-vested stock has vested and all dilutive stock options, for which the average market price exceeds the exercise price (in-the-money), are exercised. Stock options for which the exercise price exceeds the average market price (out-of-the-money) have an anti-dilutive effect on EPS, and accordingly, are excluded from the calculation. The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the years ended December 31: Years Ended December 31, (in thousands except per share amounts) 2015 2014 2013 Numerator: Net earnings from continuing operations $ 107,247 $ 81,771 $ 114,298 Denominator: Denominator for basic earnings per share - weighted average common shares 45,910 48,525 49,755 Effect of dilutive securities 294 294 179 Denominator for diluted earnings per share - diluted weighted average shares outstanding 46,204 48,819 49,934 Earnings per common share from continuing operations Basic $ 2.34 $ 1.69 $ 2.30 Diluted $ 2.32 $ 1.67 $ 2.29 The Company has a share-based compensation plan under which employees may be granted share-based awards in which non-forfeitable dividends are paid on non-vested shares for certain awards. As such, these shares are considered participating securities under the two-class method of calculating EPS as described in ASC 260, Earnings per Share. In 2015, 2014 and 2013, there were no anti-dilutive stock options. All EPS amounts are presented on a diluted basis unless otherwise noted. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated OCI is composed primarily of foreign currency translation, pension liability and unrealized gains or losses on cash flow hedges. See Note 8, Accumulated Other Comprehensive Income, |
Research and Development | Research and Development Research and development costs are recorded in selling and administrative expenses in the year they are incurred. Research and development costs related to continuing operations were $35.1 million, $35.9 million and $34.1 million during the years ended December 31, 2015, 2014 and 2013, respectively. |
Advertising | Advertising Advertising costs are recorded in selling and administrative expenses as they are incurred. Advertising costs related to continuing operations were $1.7 million, $1.9 million and $1.6 million during the years ended December 31, 2015, 2014 and 2013, respectively. |
Environmental Liabilities | Environmental Liabilities The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and reasonably estimable. Such accruals are adjusted as further information becomes available or as circumstances change. Estimated future expenditures are discounted to their present value when the timing and amount of future cash flows are fixed and readily determinable. Recoveries of remediation costs from other parties, if any, are recognized as assets when their receipt is realizable. |
Subsequent Events | Subsequent Events The Company performed an evaluation of subsequent events through the date these financial statements were issued and no such events were identified. |
New Pronouncements | New Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Balance Sheet Classification of Deferred Taxes In April 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 In July 2015, the FASB affirmed its proposed one-year deferral of the effective date for ASU No. 2014-09, Revenue from Contracts with Customers. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Weighted-average common shares for the computation of EPS | The following table sets forth the computation of basic and diluted earnings per share from continuing operations for the years ended December 31: Years Ended December 31, (in thousands except per share amounts) 2015 2014 2013 Numerator: Net earnings from continuing operations $ 107,247 $ 81,771 $ 114,298 Denominator: Denominator for basic earnings per share - weighted average common shares 45,910 48,525 49,755 Effect of dilutive securities 294 294 179 Denominator for diluted earnings per share - diluted weighted average shares outstanding 46,204 48,819 49,934 Earnings per common share from continuing operations Basic $ 2.34 $ 1.69 $ 2.30 Diluted $ 2.32 $ 1.67 $ 2.29 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule of intangible assets | At December 31, 2015 and 2014, goodwill is the only intangible asset that is not subject to amortization. The following table summarizes intangible assets with determinable useful lives by major category as of December 31, 2015 and 2014: 2015 2014 (In thousands except weighted average amortization years) Weighted Average Amortization Years Cost Accumulated Amortization Cost Accumulated Amortization Technological know-how 20.0 $ 7,387 $ (4,738 ) $ 6,459 $ (4,352 ) Customer relationships 20.0 6,575 (4,332 ) 6,938 (4,170 ) Patents, trademarks, non-compete agreements and other 19.3 10,423 (6,106 ) 9,753 (5,868 ) Total finite-lived intangibles 19.7 $ 24,385 $ (15,176 ) $ 23,150 $ (14,390 ) |
Changes in goodwill by business segment | The changes in goodwill for the years ended December 31, 2015 and 2014, by reportable business segment, were as follows: (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Balance as of December 31, 2013 $ 136,637 $ 317,323 $ 3,309 $ 457,269 Currency translation impact (10,614 ) (22,050 ) (333 ) (32,997 ) Impairment (1) — (158 ) — (158 ) Balance as of December 31, 2014 126,023 295,115 2,976 424,114 Currency translation impact (11,675 ) (17,272 ) (26 ) (28,973 ) Acquisition — 4,505 — 4,505 Balance as of December 31, 2015 $ 114,348 $ 282,348 $ 2,950 $ 399,646 (1) A portion of the Color segment’s goodwill that was written down in 2014 related to the discontinued operation. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt [Abstract] | |
Long-term debt | Long-term Debt Long-term debt consisted of the following unsecured obligations at December 31: (in thousands) 2015 2014 3.66% senior notes due November 2023 $ 75,000 $ 75,000 3.06% Euro-denominated senior notes due November 2023 41,545 46,270 1.85% Euro-denominated senior notes due November 2022 72,623 — 4.47% senior notes due November 2018 25,000 25,000 4.14% senior notes due November 2017 25,000 25,000 4.91% senior notes due through May 2017 77,000 88,000 3.77% senior notes due November 2016 25,000 25,000 Term loan 167,875 98,750 Long-term revolving loan agreement 103,343 65,987 Various other notes 1,491 2,004 613,877 451,011 Less current maturities — — Total long-term debt $ 613,877 $ 451,011 |
Restrictive loan covenants | The Company is in compliance with all of these restrictions at December 31, 2015. The following table summarizes the Company’s most restrictive loan covenants calculated in accordance with the applicable agreements as of December 31, 2015: Actual Required Debt to EBITDA (1) 2.49 3.50 Interest Coverage (Minimum) 7.60 2.00 (1) Debt to EBITDA is defined in the Company’s debt covenants as total funded debt divided by the Company’s consolidated operating income excluding non-operating gains and losses and depreciation and amortization. |
Short-term borrowings | Short-term Borrowings The Company’s short-term borrowings consisted of the following items at December 31: (in thousands) 2015 2014 Uncommitted loans $ 18,580 $ 14,086 Loans of foreign subsidiaries 2,075 1,802 Total $ 20,655 $ 15,888 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-Based Compensation [Abstract] | |
Summary of transaction involving stock options | The following table summarizes the transactions involving the Company’s stock option plans: (In thousands except exercise price and life) Options Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value Outstanding at December 31, 2012 141 $ 22.35 2.7 $ 1,859 Exercised (48 ) 21.00 Outstanding at December 31, 2013 93 23.04 2.2 2,374 Exercised (27 ) 21.92 Outstanding at December 31, 2014 66 23.49 1.7 2,438 Exercised (21 ) 20.59 Outstanding at December 31, 2015 45 24.84 1.2 1,715 Exercisable at December 31, 2015 45 $ 24.84 1.2 $ 1,715 |
Summary of information concerning outstanding and exercisable stock options | The following table summarizes information concerning outstanding and exercisable stock options at December 31, 2015: Range of Exercise Price (In thousands except life and exercise price) $ 19.03 – 24.14 $ 24.15 – 26.11 $ 26.12 – 30.07 Options outstanding 12 12 21 Weighted average remaining contractual life, in years 0.2 1.1 1.8 Weighted average exercise price $ 19.64 $ 24.35 $ 28.16 Options exercisable 12 12 21 Weighted average exercise price $ 19.64 $ 24.35 $ 28.16 |
Summary of nonvested stock and performance unit activity | The following table summarizes the non-vested stock and performance stock unit activity: (In thousands except fair value) Shares Grant Date Weighted Average Fair Value Aggregate Intrinsic Value Outstanding at December 31, 2012 339 $ 33.22 $ 12,046 Granted 262 46.14 Vested (94 ) 40.57 Cancelled (10 ) 42.22 Outstanding at December 31, 2013 497 38.46 24,095 Granted 171 55.21 Vested (40 ) 27.15 Cancelled (24 ) 40.84 Outstanding at December 31, 2014 604 43.84 36,454 Granted 154 60.65 Vested (74 ) 35.51 Cancelled (142 ) 47.02 Outstanding at December 31, 2015 542 $ 48.94 $ 34,063 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Retirement Plans [Abstract] | |
Funded status of defined benefit plan | Although the Company intends for these defined contribution plans to be the primary retirement benefit for most employees, the Company also has several defined benefit plans. The funded status of the defined benefit plans was as follows at December 31: (in thousands) 2015 2014 Benefit obligation at beginning of year $ 55,396 $ 72,582 Service cost 2,692 2,523 Interest cost 1,803 2,390 Foreign currency exchange rate changes (2,379 ) (1,889 ) Benefits paid (10,708 ) (23,726 ) Actuarial (gain) loss (1,173 ) 5,858 Curtailment gain (121 ) (2,342 ) Other 849 - Benefit obligation at end of year 46,359 55,396 Plan assets at beginning of year 39,520 37,122 Company contributions 10,204 22,402 Foreign currency exchange rate changes (2,859 ) (2,379 ) Benefits paid (10,708 ) (23,726 ) Actual gain on plan assets 79 6,101 Plan assets at end of year 36,236 39,520 Funded status $ (10,123 ) $ (15,876 ) Accumulated benefit obligation $ 45,217 $ 54,435 |
Amount recognized in the consolidated balance sheet | Amounts recognized in the Consolidated Balance (in thousands) 2015 2014 Accrued employee and retiree benefits $ (14,129 ) $ (18,258 ) Other accrued expenses (5,927 ) (7,263 ) Prepaid expenses and other current assets 9,933 9,645 Net liability $ (10,123 ) $ (15,876 ) |
Components of annual benefit cost | Components of annual benefit cost: (In thousands) 2015 2014 2013 Service cost $ 2,692 $ 2,523 $ 3,260 Interest cost 1,803 2,390 2,557 Expected return on plan assets (1,210 ) (1,791 ) (1,689 ) Amortization of prior service cost — 171 172 Recognized actuarial loss (gain) 228 (305 ) 3,203 Settlement expense 1,119 1,467 1,177 Curtailment gain (104 ) (754 ) — Defined benefit expense $ 4,528 $ 3,701 $ 8,680 |
Summary of weighted average assumptions | Weighted average liability assumptions as of December 31: 2015 2014 Discount rate 3.94 % 3.70 % Expected return on plan assets 3.40 % 3.32 % Rate of compensation increase 0.35 % 0.37 % Weighted average cost assumptions for the year ended December 31: 2015 2014 Discount rate 3.70 % 3.91 % Expected return on plan assets 3.32 % 5.12 % Rate of compensation increase 0.37 % 4.59 % |
Amounts recognized in accumulated other comprehensive income | Amounts in accumulated other comprehensive income at December 31 were as follows: (In thousands) 2015 2014 Unrecognized net actuarial loss $ 5,725 $ 7,407 |
Pension adjustments recognized in accumulated other comprehensive income | The pension adjustments, net of tax, recognized in OCI, were as follows: (In thousands) 2015 2014 2013 Net actuarial (loss) gain arising during the period $ (140 ) $ (387 ) $ 3,180 Amortization of actuarial loss, included in defined benefit expense 917 1,252 2,006 Amortization of prior service cost, included in defined benefit expense — 733 108 Pension adjustment, net of tax $ 777 $ 1,598 $ 5,294 |
Pension plan assets by asset category | The following table presents the Company’s pension plan assets by asset category as of December 31, 2015 and 2014: Fair Value as of December 31, Fair Value Measurements at December 31, 2015 Using Fair Value Hierarchy Fair Value as of December 31, Fair Value Measurements at December 31, 2014 Using Fair Value Hierarchy (in thousands) 2015 Level 1 Level 2 Level 3 2014 Level 1 Level 2 Level 3 Equity Funds Domestic $ 6,064 $ 6,064 $ — $ — $ 6,424 $ 6,424 $ — $ — International 179 3 176 — 242 — 242 — International Fixed Income Funds 22,374 711 21,663 — 22,710 960 21,750 — Other investments 7,619 40 7,579 — 10,144 38 10,106 — Total assets at fair value $ 36,236 $ 6,818 $ 29,418 $ — $ 39,520 $ 7,422 $ 32,098 $ — |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in accumulated other comprehensive income | The following tables summarize the changes in OCI for 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 income before reclassifications (993 ) (140 ) (85,551 ) (86,684 ) Amounts reclassified from OCI 833 917 - 1,750 Balance as of December 31, 2015 $ 164 $ (4,393 ) $ (165,833 ) $ (170,062 ) (a) Cash Flow Hedges and Pension Items are net of tax. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Provision for income taxes | The provision for income taxes for continuing operations was as follows: (In thousands) 2015 2014 2013 Currently payable: Federal $ 20,794 $ 18,642 $ 21,252 State 2,936 2,264 3,065 Foreign 23,873 25,435 25,175 47,603 46,341 49,492 Deferred (benefit) expense: Federal 5,779 1,532 (5,125 ) State (772 ) (935 ) 502 Foreign (10,461 ) (14,111 ) (1,534 ) (5,454 ) (13,514 ) (6,157 ) Income taxes $ 42,149 $ 32,827 $ 43,335 |
Tax effects of temporary differences - Deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following: (in thousands) 2015 2014 Deferred tax assets: Benefit plans $ 12,901 $ 15,507 Liabilities and reserves 18,986 19,384 Operating loss and credit carryovers 59,013 57,128 Other 3,226 6,872 Gross deferred tax assets 94,126 98,891 Valuation allowance (36,008 ) (43,055 ) Deferred tax assets 58,118 55,836 Deferred tax liabilities: Property, plant and equipment (1,850 ) (1,619 ) Other assets (907 ) (1,462 ) Goodwill (27,824 ) (28,583 ) Other (8,000 ) (1,426 ) Deferred tax liabilities (38,581 ) (33,090 ) Net deferred tax assets $ 19,537 $ 22,746 |
Effective income tax rate reconciliation | The effective tax rate for continuing operations differed from the statutory federal income tax rate of 35% as described below: 2015 2014 2013 Taxes at statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 1.7 1.9 1.1 Tax credits (0.7 ) (0.4 ) (0.3 ) Taxes on foreign earnings (0.8 ) (4.7 ) (5.3 ) Resolution of prior years’ tax matters (0.3 ) (0.6 ) (0.7 ) U.S. manufacturing deduction (1.9 ) (2.0 ) (1.6 ) Valuation allowance adjustments (5.0 ) 0.2 (0.8 ) Other, net 0.2 (0.8 ) 0.1 Effective tax rate 28.2 % 28.6 % 27.5 % |
Earnings before income taxes | Earnings from continuing operations before income taxes were as follows: (In thousands) 2015 2014 2013 United States $ 87,749 $ 56,211 $ 55,461 Foreign 61,647 58,387 102,172 Total $ 149,396 $ 114,598 $ 157,633 |
Reconciliation of the change in liability for unrecognized tax benefits | A reconciliation of the change in the liability for unrecognized tax benefits for 2015 and 2014 is as follows: (in thousands) 2015 2014 Balance at beginning of year $ 13,940 $ 5,295 Increases for tax positions taken in the current year 1,322 718 Increases for tax positions taken in prior years 1,061 10,238 Decreases related to settlements with tax authorities (10,610 ) (1,044 ) Decreases as a result of lapse of the applicable statutes of limitations (278 ) (751 ) Foreign currency exchange rate changes (472 ) (516 ) Balance at the end of year $ 4,963 $ 13,940 |
Segment and Geographic Inform33
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment and Geographic Information [Abstract] | |
Segment Disclosure | Consistent with presentation in the Consolidated Balance Sheets and Statements of Cash Flows, the below amounts for assets, capital expenditures, and depreciation and amortization include discontinued operations for all periods presented and are included in the Corporate & Other segment. (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated 2015: Revenue from external customers $ 793,386 $ 452,203 $ 130,375 $ — $ 1,375,964 Intersegment revenue 25,623 18,736 180 — 44,539 Total revenue 819,009 470,939 130,555 — 1,420,503 Operating income (loss) 121,874 94,799 25,496 (75,828 ) 166,341 Interest expense — — — 16,945 16,945 Earnings (loss) before income taxes from continuing operations 121,874 94,799 25,496 (92,773 ) 149,396 Assets 806,401 706,769 82,696 115,571 1,711,437 Capital expenditures 56,233 18,933 2,643 2,132 79,941 Depreciation and amortization 24,049 18,529 2,349 3,012 47,939 2014: Revenue from external customers $ 825,976 $ 488,762 $ 133,083 $ — $ 1,447,821 Intersegment revenue 25,570 20,574 229 — 46,373 Total revenue 851,546 509,336 133,312 — 1,494,194 Operating income (loss) 120,888 114,014 25,122 (129,359 ) 130,665 Interest expense — — — 16,067 16,067 Earnings (loss) before income taxes from continuing operations 120,888 114,014 25,122 (145,426 ) 114,598 Assets 819,366 747,738 84,842 113,260 1,765,206 Capital expenditures 41,244 31,883 2,010 4,261 79,398 Depreciation and amortization 26,316 18,843 2,473 3,824 51,456 2013: Revenue from external customers $ 854,515 $ 475,061 $ 132,550 $ — $ 1,462,126 Intersegment revenue 26,071 21,246 97 — 47,414 Total revenue 880,586 496,307 132,647 — 1,509,540 Operating income (loss) 121,806 107,214 22,161 (77,401 ) 173,780 Interest expense — — — 16,147 16,147 Earnings (loss) before income taxes from continuing operations 121,806 107,214 22,161 (93,548 ) 157,633 Assets 901,870 778,864 87,708 102,292 1,870,734 Capital expenditures 59,086 38,639 1,670 4,851 104,246 Depreciation and amortization 27,575 17,607 2,543 4,291 52,016 |
Geographical Information | The Company’s annual revenue from continuing operations summarized by geographic location is as follows: (In thousands) 2015 2014 2013 Revenue from external customers: North America $ 744,481 $ 750,345 $ 782,088 Europe 349,100 389,588 382,077 Asia Pacific 177,559 193,163 188,917 Other 104,824 114,725 109,044 Consolidated $ 1,375,964 $ 1,447,821 $ 1,462,126 Long-lived assets: North America $ 524,921 $ 537,668 $ 531,005 Europe 397,244 423,972 506,352 Asia Pacific 26,589 29,948 32,148 Other 9,340 14,229 11,404 Consolidated $ 958,094 $ 1,005,817 $ 1,080,909 |
Product Information | The Company’s revenue from continuing operations summarized by product portfolio is as follows: (In thousands) 2015 2014 2013 Traditional Flavors & Fragrances $ 667,941 $ 715,789 $ 727,659 Natural Ingredients 240,793 227,538 244,155 Food & Beverage Colors 328,200 335,771 308,371 Non-Food Colors 183,569 215,096 229,355 Interdivision Revenue (44,539 ) (46,373 ) (47,414 ) Consolidated $ 1,375,964 $ 1,447,821 $ 1,462,126 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges Abstract] | |
Restructuring cost by segment | The following table summarizes the restructuring expense by segment and discontinued operations for the years ended December 31, 2015, 2014, and 2013: (In thousands) 2015 2014 2013 Flavors & Fragrances $ 37,309 $ 83,871 $ 22,284 Color 2,113 - 7,065 Asia Pacific 82 261 665 Corporate and Other 3,299 3,240 1,721 Total Continuing Operations 42,803 87,372 31,735 Discontinued Operations 43 10,998 - Total Restructuring (1) $ 42,846 $ 98,370 $ 31,735 (1) In 2014, the Company recorded $3.2 million of proxy costs related to the 2014 proxy contest. These costs were included in this disclosure in the Company’s 2014 Annual Report to Shareholders. These costs have been removed from the disclosure to conform to current year presentation. |
Summary of restructuring costs | The Company recorded restructuring costs in continuing operations for the year ended December 31, 2015, as follows: (In thousands) Selling & Cost of Total Employee separation $ 7,155 $ - $ 7,155 Long-lived asset impairment 14,551 - 14,551 Gain on asset sales (1,301 ) - (1,301 ) Write-down of inventory - 6,098 6,098 Other costs (1) 16,300 - 16,300 Total $ 36,705 $ 6,098 $ 42,803 (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 year ended December 31, 2014, as follows: (In thousands) Selling & Cost of Total Employee separation $ 17,794 $ - $ 17,794 Long-lived asset impairment 63,431 - 63,431 Gain on asset sales (602 ) - (602 ) Write-down of inventory - 1,914 1,914 Other costs (1) 4,835 - 4,835 Total (2) $ 85,458 $ 1,914 $ 87,372 (1) Other costs include decommissioning costs, professional services, moving costs and other related costs. (2) In 2014, the Company recorded $3.2 million of proxy costs related to the 2014 proxy contest. These costs were included in this disclosure in the Company’s 2014 Annual Report to Shareholders. These costs have been removed from the disclosure to conform to current year presentation. The Company recorded restructuring costs in continuing operations for the year ended December 31, 2013, as follows: (In thousands) Selling & Cost of Total Employee separation $ 18,081 $ - $ 18,081 Long-lived asset impairment 4,176 - 4,176 Gain on asset sales (3,019 ) - (3,019 ) Write-down of inventory - 1,840 1,840 Other costs (1) 10,657 - 10,657 Total $ 29,895 $ 1,840 $ 31,735 (1) Other costs include decommissioning costs, professional services, 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 years ended December 31, 2015 and 2014: (In thousands) Employee Other Costs Total Balance as of December 31, 2013 $ 4,562 $ 1,588 $ 6,150 Expense activity (1) 18,951 4,904 23,855 Cash spent (1) (7,067 ) (5,595 ) (12,662 ) Translation adjustment (1,537 ) - (1,537 ) Balance as of December 31, 2014 $ 14,909 $ 897 $ 15,806 Expense activity 6,853 16,748 23,601 Cash spent (10,174 ) (16,733 ) (26,907 ) Translation adjustment (1,328 ) - (1,328 ) Balance as of December 31, 2015 $ 10,260 $ 912 $ 11,172 (1) In 2014, the Company recorded $3.2 million of proxy costs related to the 2014 proxy contest. These costs were included in this disclosure in the Company’s 2014 Annual Report to Shareholders. These costs have been removed from the disclosure to conform to current year presentation. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 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, which are included in the loss from discontinued operations in the Consolidated Statements of Earnings for the years ended December 31, 2015, 2014, and 2013: (In thousands) 2015 2014 2013 Net sales $ 187 $ 5,197 $ 5,424 Loss from discontinued operations before income taxes (471 ) (11,496 ) (1,418 ) Income tax benefit 9 3,371 415 Loss from discontinued operations, net of tax $ (462 ) $ (8,125 ) $ (1,003 ) |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventories [Abstract] | |||
Inventories include finished and in-process products | $ 291,900,000 | $ 308,700,000 | |
Raw materials and supplies | 117,300,000 | 140,700,000 | |
Property, Plant and Equipment [Abstract] | |||
Impairment charge | $ 0 | 0 | $ 0 |
Derivative Financial Instruments [Abstract] | |||
Maximum number of months for forward exchange contracts to mature | 18 months | ||
Numerator [Abstract] | |||
Net earnings from continuing operations | $ 107,247,000 | $ 81,771,000 | $ 114,298,000 |
Denominator [Abstract] | |||
Denominator for basic earnings per share - weighted average common shares (in shares) | 45,910,000 | 48,525,000 | 49,755,000 |
Effect of dilutive securities (in shares) | 294,000 | 294,000 | 179,000 |
Denominator for diluted earnings per share - diluted weighted average shares outstanding (in shares) | 46,204,000 | 48,819,000 | 49,934,000 |
Earnings per common share from continuing operations [Abstract] | |||
Basic (in dollars per share) | $ 2.34 | $ 1.69 | $ 2.30 |
Diluted (in dollars per share) | $ 2.32 | $ 1.67 | $ 2.29 |
Number of antidilutive shares excluded from the diluted EPS calculation (in shares) | 0 | 0 | 0 |
Research and Development [Abstract] | |||
Research and development costs | $ 35,100,000 | $ 35,900,000 | $ 34,100,000 |
Advertising [Abstract] | |||
Advertising costs | $ 1,700,000 | $ 1,900,000 | $ 1,600,000 |
Minimum [Member] | |||
Intangible assets [Abstract] | |||
Useful lives of intangible assets | 5 years | ||
Maximum [Member] | |||
Intangible assets [Abstract] | |||
Useful lives of intangible assets | 20 years | ||
Building and Leasehold Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 5 years | ||
Building and Leasehold Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 40 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 20 years |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Jun. 29, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Payments to acquire business | $ 8,393 | $ 0 | $ 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 | 6,200 | |||
Acquisition related costs | $ 800 | |||
Xennia Technology Ltd. [Member] | Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price excess on carrying value of the net assets allocated to intangible assets and goodwill | 1,100 | |||
Xennia Technology Ltd. [Member] | Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price excess on carrying value of the net assets allocated to intangible assets and goodwill | 600 | |||
Xennia Technology Ltd. [Member] | Goodwill [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price excess on carrying value of the net assets allocated to intangible assets and goodwill | $ 4,500 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Intangible assets [Abstract] | ||||
Cost | $ 24,385 | $ 23,150 | ||
Accumulated Amortization | (15,176) | (14,390) | ||
Intangible assets expense [Abstract] | ||||
Acquisition related intangible assets | 1,700 | |||
Amortization expense of intangible assets | 1,200 | 1,200 | $ 1,300 | |
2,016 | 1,200 | |||
2,017 | 1,100 | |||
2,018 | 1,000 | |||
2,019 | 1,000 | |||
2,020 | 900 | |||
Goodwill activity [Roll Forward] | ||||
Balance as of beginning of period | 424,114 | 457,269 | ||
Currency translation impact | (28,973) | (32,997) | ||
Impairment | [1] | (158) | ||
Acquisition | 4,505 | |||
Balance as of end of period | $ 399,646 | 424,114 | 457,269 | |
Weighted Average [Member] | ||||
Intangible assets [Abstract] | ||||
Weighted Average Amortization Years | 19 years 8 months 12 days | |||
Flavor and Fragrances [Member] | ||||
Goodwill activity [Roll Forward] | ||||
Balance as of beginning of period | $ 126,023 | 136,637 | ||
Currency translation impact | (11,675) | (10,614) | ||
Impairment | [1] | 0 | ||
Acquisition | 0 | |||
Balance as of end of period | 114,348 | 126,023 | 136,637 | |
Color [Member] | ||||
Goodwill activity [Roll Forward] | ||||
Balance as of beginning of period | 295,115 | 317,323 | ||
Currency translation impact | (17,272) | (22,050) | ||
Impairment | [1] | (158) | ||
Acquisition | 4,505 | |||
Balance as of end of period | 282,348 | 295,115 | 317,323 | |
Asia Pacific [Member] | ||||
Goodwill activity [Roll Forward] | ||||
Balance as of beginning of period | 2,976 | 3,309 | ||
Currency translation impact | (26) | (333) | ||
Impairment | [1] | 0 | ||
Acquisition | 0 | |||
Balance as of end of period | 2,950 | 2,976 | $ 3,309 | |
Technological Know How [Member] | ||||
Intangible assets [Abstract] | ||||
Cost | 7,387 | 6,459 | ||
Accumulated Amortization | $ (4,738) | (4,352) | ||
Technological Know How [Member] | Weighted Average [Member] | ||||
Intangible assets [Abstract] | ||||
Weighted Average Amortization Years | 20 years | |||
Customer Relationships [Member] | ||||
Intangible assets [Abstract] | ||||
Cost | $ 6,575 | 6,938 | ||
Accumulated Amortization | $ (4,332) | (4,170) | ||
Customer Relationships [Member] | Weighted Average [Member] | ||||
Intangible assets [Abstract] | ||||
Weighted Average Amortization Years | 20 years | |||
Patents, Trademarks, Noncompete Agreements and Other [Member] | ||||
Intangible assets [Abstract] | ||||
Cost | $ 10,423 | 9,753 | ||
Accumulated Amortization | $ (6,106) | $ (5,868) | ||
Patents, Trademarks, Noncompete Agreements and Other [Member] | Weighted Average [Member] | ||||
Intangible assets [Abstract] | ||||
Weighted Average Amortization Years | 19 years 3 months 18 days | |||
[1] | A portion of the Color segment's goodwill that was written down in 2014 related to the discontinued operation. |
Debt (Details)
Debt (Details) $ in Thousands, € in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)Debt / EBITDAInterest / Debt | Dec. 31, 2014USD ($) | Dec. 31, 2015EUR (€)Debt / EBITDAInterest / Debt | ||
Schedule of long term debt [Abstract] | ||||
Long-term debt, gross | $ 613,877 | $ 451,011 | ||
Less current maturities | 0 | 0 | ||
Total long-term debt | 613,877 | 451,011 | ||
Aggregate amounts of contractual maturities of long-term debt for the next five years [Abstract] | ||||
Amounts due in 2016 | 45,900 | |||
Amounts due in 2017 | 103,900 | |||
Amounts due in 2018 | 38,900 | |||
Amounts due in 2019 | 17,100 | |||
Amounts due in 2020 | $ 218,200 | |||
Debt covenants [Abstract] | ||||
Debt to EBITDA (Maximum), Actual | Debt / EBITDA | [1] | 2.49 | 2.49 | |
Interest Coverage (Minimum), Actual | Interest / Debt | 7.60 | 7.60 | ||
Debt to Adjusted EBITDA (Maximum), Required | Debt / EBITDA | [1] | 3.50 | 3.50 | |
Interest Coverage (Minimum), Required | Interest / Debt | 2 | 2 | ||
Stand-by letters of credit outstanding | $ 6,300 | 6,300 | ||
Short-term borrowings [Abstract] | ||||
Short-term borrowings | $ 20,655 | $ 15,888 | ||
Weighted-average interest rates on short-term borrowings | 1.62% | 1.66% | 1.62% | |
Uncommitted Loans [Member] | ||||
Short-term borrowings [Abstract] | ||||
Short-term borrowings | $ 18,580 | $ 14,086 | ||
Loans of Foreign Subsidiaries [Member] | ||||
Short-term borrowings [Abstract] | ||||
Short-term borrowings | 2,075 | 1,802 | ||
3.66% Senior Notes due November 2023 [Member] | ||||
Schedule of long term debt [Abstract] | ||||
Long-term debt, gross | $ 75,000 | 75,000 | ||
Interest rate, stated percentage | 3.66% | 3.66% | ||
Term loan, maturity date | Nov. 30, 2023 | |||
3.06% Euro-denominated Senior Notes due November 2023 [Member] | ||||
Schedule of long term debt [Abstract] | ||||
Long-term debt, gross | $ 41,545 | 46,270 | ||
Interest rate, stated percentage | 3.06% | 3.06% | ||
Term loan, maturity date | Nov. 30, 2023 | |||
1.85% Euro-denominated Senior Notes due November 2022 [Member] | ||||
Schedule of long term debt [Abstract] | ||||
Long-term debt, gross | $ 72,623 | 0 | ||
Interest rate, stated percentage | 1.85% | 1.85% | ||
Term loan, maturity date | Nov. 30, 2022 | |||
Term loan, face amount | € | € 67 | |||
Tenure of fixed-rate notes | 7 years | |||
4.47% Senior Notes due November 2018 [Member] | ||||
Schedule of long term debt [Abstract] | ||||
Long-term debt, gross | $ 25,000 | 25,000 | ||
Interest rate, stated percentage | 4.47% | 4.47% | ||
Term loan, maturity date | Nov. 30, 2018 | |||
4.14% Senior Notes due November 2017 [Member] | ||||
Schedule of long term debt [Abstract] | ||||
Long-term debt, gross | $ 25,000 | 25,000 | ||
Interest rate, stated percentage | 4.14% | 4.14% | ||
Term loan, maturity date | Nov. 30, 2017 | |||
4.91% Senior Notes due through May 2017 [Member] | ||||
Schedule of long term debt [Abstract] | ||||
Long-term debt, gross | $ 77,000 | 88,000 | ||
Interest rate, stated percentage | 4.91% | 4.91% | ||
Term loan, maturity date | May 31, 2017 | |||
3.77% Senior Notes due November 2016 [Member] | ||||
Schedule of long term debt [Abstract] | ||||
Long-term debt, gross | $ 25,000 | 25,000 | ||
Interest rate, stated percentage | 3.77% | 3.77% | ||
Term loan, maturity date | Nov. 30, 2016 | |||
Term Loan [Member] | ||||
Schedule of long term debt [Abstract] | ||||
Long-term debt, gross | $ 167,875 | 98,750 | ||
Term loan, face amount | $ 170,000 | 100,000 | ||
Credit facility maturity date | Nov. 6, 2020 | |||
Term Loan [Member] | LIBOR [Member] | ||||
Schedule of long term debt [Abstract] | ||||
Interest rate | 1.50% | |||
Long-term Revolving Loan Agreement [Member] | ||||
Schedule of long term debt [Abstract] | ||||
Long-term debt, gross | $ 103,343 | 65,987 | ||
Credit facility, amount | $ 450,000 | |||
Long term debt additional disclosures [Abstract] | ||||
Average effective interest rate | 1.36% | 1.54% | ||
Remaining borrowing capacity | $ 86,300 | |||
Various Other Notes [Member] | ||||
Schedule of long term debt [Abstract] | ||||
Long-term debt, gross | 1,491 | $ 2,004 | ||
Revolving Credit Facility [Member] | ||||
Schedule of long term debt [Abstract] | ||||
Credit facility, amount | 350,000 | |||
Long term debt additional disclosures [Abstract] | ||||
Remaining borrowing capacity | $ 255,300 | |||
[1] | Debt to EBITDA is defined in the Company's debt covenants as total funded debt divided by the Company's consolidated operating income excluding non-operating gains and losses and depreciation and amortization. |
Derivative Instruments and He40
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative instruments and hedging activity for the period [Abstract] | |||
Maximum number of months for forward exchange contracts to mature | 18 months | ||
Impact of foreign exchange rates on debt instruments recorded in Other Comprehensive Income | $ 7,542 | $ 12,677 | $ (4,020) |
Forward Exchange Contracts [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Amount of gain (loss) reclassified into net earnings | (1,200) | 100 | |
Forward Exchange Contracts [Member] | Cash Flow Hedging [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Derivative, fair value | 35,200 | 17,800 | |
Foreign Currency Denominated Debt, Net Investment Hedging [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Carrying value of foreign denominated debt | $ 162,500 | $ 97,300 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-Based Compensation [Abstract] | ||||
Percent of market price | 100.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available to be granted under existing stock plans (in shares) | 1,200 | |||
Aggregate Intrinsic Value [Abstract] | ||||
Age participant attains for recognition of expenses from date of grant | 65 years | |||
Grant Date Weighted Average Fair Value [Abstract] | ||||
Total pre-tax share-based compensation recognized in the Consolidated Statements of Earnings | $ 1,600 | $ 6,300 | $ 8,400 | |
Tax related benefits | 1,400 | 2,400 | 2,600 | |
Cash received from the exercise of stock options | $ 400 | $ 600 | $ 1,000 | |
Range of Exercise Price 1 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price range, lower range (in dollars per share) | $ 19.03 | |||
Exercise price range, upper range (in dollars per share) | $ 24.14 | |||
Options outstanding (in shares) | 12 | |||
Weighted average remaining contractual life, in years | 2 months 12 days | |||
Weighted average exercise price (in dollars per share) | $ 19.64 | |||
Options exercisable (in shares) | 12 | |||
Weighted average exercise price (in dollars per share) | $ 19.64 | |||
Range of Exercise Price 2 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price range, lower range (in dollars per share) | 24.15 | |||
Exercise price range, upper range (in dollars per share) | $ 26.11 | |||
Options outstanding (in shares) | 12 | |||
Weighted average remaining contractual life, in years | 1 year 1 month 6 days | |||
Weighted average exercise price (in dollars per share) | $ 24.35 | |||
Options exercisable (in shares) | 12 | |||
Weighted average exercise price (in dollars per share) | $ 24.35 | |||
Range of Exercise Price 3 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price range, lower range (in dollars per share) | 26.12 | |||
Exercise price range, upper range (in dollars per share) | $ 30.07 | |||
Options outstanding (in shares) | 21 | |||
Weighted average remaining contractual life, in years | 1 year 9 months 18 days | |||
Weighted average exercise price (in dollars per share) | $ 28.16 | |||
Options exercisable (in shares) | 21 | |||
Weighted average exercise price (in dollars per share) | $ 28.16 | |||
Non-vested Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense recognition period | 5 years | |||
Aggregate Intrinsic Value [Abstract] | ||||
Percentage of future grants that will be performance stock unit awards | 100.00% | 100.00% | 50.00% | |
Percentage of future grants that will be time vesting stock unit awards | 50.00% | |||
Percentage of stated performance metrics award of grant | 150.00% | 150.00% | 150.00% | |
Number of years to measure performance metrics | 3 years | 3 years | 2 years | |
Non-vested Stock [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 604 | 497 | 339 | |
Granted (in shares) | 154 | 171 | 262 | |
Vested (in shares) | (74) | (40) | (94) | |
Cancelled (in shares) | (142) | (24) | (10) | |
Outstanding, end of period (in shares) | 542 | 604 | 497 | 339 |
Grant Date Weighted Average Fair Value [Abstract] | ||||
Outstanding, beginning of period (in dollars per share) | $ 43.84 | $ 38.46 | $ 33.22 | |
Granted (in dollars per share) | 60.65 | 55.21 | 46.14 | |
Vested (in dollars per share) | 35.51 | 27.15 | 40.57 | |
Cancelled (in dollars per share) | 47.02 | 40.84 | 42.22 | |
Outstanding, end of period (in dollars per share) | $ 48.94 | $ 43.84 | $ 38.46 | $ 33.22 |
Outstanding, aggregate intrinsic value | $ 34,063 | $ 36,454 | $ 24,095 | $ 12,046 |
Total intrinsic values of shares vested | $ 4,800 | $ 2,200 | $ 4,400 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period (in shares) | 0 | 0 | 0 | |
Expense recognition period | 3 years | |||
Expiration from date of grant | 10 years | |||
Stock Options [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 66 | 93 | 141 | |
Exercised (in shares) | (21) | (27) | (48) | |
Outstanding, end of period (in shares) | 45 | 66 | 93 | 141 |
Exercisable, end of period (in shares) | 45 | |||
Weighted Average Exercise Price [Abstract] | ||||
Outstanding, beginning of period (in dollars per share) | $ 23.49 | $ 23.04 | $ 22.35 | |
Exercised (in dollars per share) | 20.59 | 21.92 | 21 | |
Outstanding, end of period (in dollars per share) | 24.84 | $ 23.49 | $ 23.04 | $ 22.35 |
Exercisable, end of period (in dollars per share) | $ 24.84 | |||
Weighted Average Remaining Life [Abstract] | ||||
Outstanding | 1 year 2 months 12 days | 1 year 8 months 12 days | 2 years 2 months 12 days | 2 years 8 months 12 days |
Exercisable | 1 year 2 months 12 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Aggregate intrinsic value, outstanding | $ 1,715 | $ 2,438 | $ 2,374 | $ 1,859 |
Aggregate intrinsic value, exercisable | 1,715 | |||
Aggregate intrinsic values of stock options exercised | 900 | $ 800 | $ 1,100 | |
Non-vested Stock and Performance Stock Units [Member] | ||||
Grant Date Weighted Average Fair Value [Abstract] | ||||
Compensation cost net yet recognized | $ 14,900 | |||
Compensation cost not yet recognized, period for recognition | 1 year 8 months 5 days |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan [Member] | |||
Defined Contribution Plans Disclosure [Abstract] | |||
Percentage of matching contributions under defined contribution plan | 4.00% | ||
Total expense for defined contribution plans | $ 5,400 | $ 5,000 | $ 4,700 |
Pension Plans, Defined Benefit [Member] | |||
Benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 55,396 | 72,582 | |
Service cost | 2,692 | 2,523 | 3,260 |
Interest cost | 1,803 | 2,390 | 2,557 |
Foreign currency exchange rate changes | (2,379) | (1,889) | |
Benefits paid | (10,708) | (23,726) | |
Actuarial (gain) loss | (1,173) | 5,858 | |
Curtailment gain | (121) | (2,342) | |
Other | 849 | 0 | |
Benefit obligation at end of year | 46,359 | 55,396 | 72,582 |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at beginning of year | 39,520 | 37,122 | |
Company contributions | 10,204 | 22,402 | |
Foreign currency exchange rate changes | (2,859) | (2,379) | |
Benefits paid | (10,708) | (23,726) | |
Actual gain on plan assets | 79 | 6,101 | |
Defined benefit plan, assets for plan benefits at end of year | 36,236 | 39,520 | 37,122 |
Funded status | (10,123) | (15,876) | |
Accumulated benefit obligation | 45,217 | 54,435 | |
Amounts recognized in Consolidated Balance Sheets [Abstract] | |||
Accrued employee and retiree benefits | (14,129) | (18,258) | |
Other accrued expenses | (5,927) | (7,263) | |
Prepaid expenses and other current assets | 9,933 | 9,645 | |
Net liability | (10,123) | (15,876) | |
Components of annual benefit cost [Abstract] | |||
Service cost | 2,692 | 2,523 | 3,260 |
Interest cost | 1,803 | 2,390 | 2,557 |
Expected return on plan assets | (1,210) | (1,791) | (1,689) |
Amortization of prior service cost | 0 | 171 | 172 |
Recognized actuarial loss (gain) | 228 | (305) | 3,203 |
Settlement expense | 1,119 | 1,467 | 1,177 |
Curtailment gain | (104) | (754) | 0 |
Defined benefit expense | $ 4,528 | $ 3,701 | 8,680 |
Weighted average liability assumptions [Abstract] | |||
Discount rate | 3.94% | 3.70% | |
Expected return on plan assets | 3.40% | 3.32% | |
Rate of compensation increase | 0.35% | 0.37% | |
Weighted average cost assumption [Abstract] | |||
Discount rate | 3.70% | 3.91% | |
Expected return on plan assets | 3.32% | 5.12% | |
Rate of compensation increase | 0.37% | 4.59% | |
Amounts recognized in Accumulated Other Comprehensive Income [Abstract] | |||
Unrecognized net actuarial loss | $ 5,725 | $ 7,407 | |
Other Comprehensive Income (Loss), Pension Adjustment, Net of Tax [Abstract] | |||
Net actuarial (loss) gain arising during the period | (140) | (387) | 3,180 |
Amortization of actuarial loss, included in defined benefit expense | 917 | 1,252 | 2,006 |
Amortization of prior service cost, included in defined benefit expense | 0 | 733 | 108 |
Pension adjustment, net of tax | 777 | 1,598 | $ 5,294 |
Estimated Future Benefit Payments [Abstract] | |||
Expected Future Benefit Payments in Year One | 7,100 | ||
Expected Future Benefit Payments in Year Two | 2,000 | ||
Expected Future Benefit Payments in Year Three | 4,200 | ||
Expected Future Benefit Payments in Year Four | 1,900 | ||
Expected Future Benefit Payments in Year Five | 2,100 | ||
Expected Future Benefit Payments in Five Fiscal Years Thereafter | 15,000 | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 6,500 | ||
Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||
Expected amortization of actuarial loss in next fiscal year | (300) | ||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 36,236 | 39,520 | |
Pension Plans, Defined Benefit [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 6,818 | 7,422 | |
Pension Plans, Defined Benefit [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 29,418 | 32,098 | |
Pension Plans, Defined Benefit [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Domestic [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 6,064 | 6,424 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Domestic [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 6,064 | 6,424 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Domestic [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Domestic [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Foreign [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 179 | 242 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Foreign [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 3 | 0 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Foreign [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 176 | 242 | |
Pension Plans, Defined Benefit [Member] | Private Equity Funds, Foreign [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Pension Plans, Defined Benefit [Member] | Fixed Income Funds [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 22,374 | 22,710 | |
Pension Plans, Defined Benefit [Member] | Fixed Income Funds [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 711 | 960 | |
Pension Plans, Defined Benefit [Member] | Fixed Income Funds [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 21,663 | 21,750 | |
Pension Plans, Defined Benefit [Member] | Fixed Income Funds [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Pension Plans, Defined Benefit [Member] | Other Investments [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 7,619 | 10,144 | |
Pension Plans, Defined Benefit [Member] | Other Investments [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 40 | 38 | |
Pension Plans, Defined Benefit [Member] | Other Investments [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 7,579 | 10,106 | |
Pension Plans, Defined Benefit [Member] | Other Investments [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | $ 0 | $ 0 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | $ (85,128) | |
Other comprehensive income before reclassifications | (86,684) | |
Amounts reclassified from OCI | 1,750 | |
Accumulated Other Comprehensive Income, ending balance | (170,062) | |
Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | 324 | [1] |
Other comprehensive income before reclassifications | (993) | [1] |
Amounts reclassified from OCI | 833 | [1] |
Accumulated Other Comprehensive Income, ending balance | 164 | [1] |
Pension Items [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | (5,170) | [1] |
Other comprehensive income before reclassifications | (140) | [1] |
Amounts reclassified from OCI | 917 | [1] |
Accumulated Other Comprehensive Income, ending balance | (4,393) | [1] |
Foreign Currency Items [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | (80,282) | |
Other comprehensive income before reclassifications | (85,551) | |
Amounts reclassified from OCI | 0 | |
Accumulated Other Comprehensive Income, ending balance | $ (165,833) | |
[1] | (a) Cash Flow Hedges and Pension Items are net of tax. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Currently payable [Abstract] | |||
Federal | $ 20,794 | $ 18,642 | $ 21,252 |
State | 2,936 | 2,264 | 3,065 |
Foreign | 23,873 | 25,435 | 25,175 |
Current income tax (expense), total | 47,603 | 46,341 | 49,492 |
Deferred (benefit) expense [Abstract] | |||
Federal | 5,779 | 1,532 | (5,125) |
State | (772) | (935) | 502 |
Foreign | (10,461) | (14,111) | (1,534) |
Deferred income tax (expense), total | (5,454) | (13,514) | (6,157) |
Income taxes | 42,149 | 32,827 | $ 43,335 |
Deferred tax assets [Abstract] | |||
Benefit plans | 12,901 | 15,507 | |
Liabilities and reserves | 18,986 | 19,384 | |
Operating loss and credit carryovers | 59,013 | 57,128 | |
Other | 3,226 | 6,872 | |
Gross deferred tax assets | 94,126 | 98,891 | |
Valuation allowance | (36,008) | (43,055) | |
Deferred tax assets | 58,118 | 55,836 | |
Deferred tax liabilities [Abstract] | |||
Property, plant and equipment | (1,850) | (1,619) | |
Other assets | (907) | (1,462) | |
Goodwill | (27,824) | (28,583) | |
Other | (8,000) | (1,426) | |
Deferred tax liabilities | (38,581) | (33,090) | |
Net deferred tax assets, noncurrent | 8,100 | ||
Net deferred tax assets | $ 19,537 | $ 22,746 | |
Effective tax rate reconciliation [Abstract] | |||
Taxes at statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit | 1.70% | 1.90% | 1.10% |
Tax credits | (0.70%) | (0.40%) | (0.30%) |
Taxes on foreign earnings | (0.80%) | (4.70%) | (5.30%) |
Resolution of prior years' tax matters | (0.30%) | (0.60%) | (0.70%) |
U.S. manufacturing deduction | (1.90%) | (2.00%) | (1.60%) |
Valuation allowance adjustments | (5.00%) | 0.20% | (0.80%) |
Other, net | 0.20% | (0.80%) | 0.10% |
Effective tax rate | 28.20% | 28.60% | 27.50% |
Earnings from continuing operations before income taxes [Abstract] | |||
United States | $ 87,749 | $ 56,211 | $ 55,461 |
Foreign | 61,647 | 58,387 | 102,172 |
Total | 149,396 | 114,598 | 157,633 |
Unremitted earnings of foreign subsidiaries | 430,200 | ||
Reconciliation of change in liability for unrecognized tax benefits [Roll Forward] | |||
Balance at beginning of year | 13,940 | 5,295 | |
Increases for tax positions taken in the current year | 1,322 | 718 | |
Increases for tax positions taken in prior years | 1,061 | 10,238 | |
Decreases related to settlements with tax authorities | (10,610) | (1,044) | |
Decreases as a result of lapse of the applicable statutes of limitations | (278) | (751) | |
Foreign currency exchange rate changes | (472) | (516) | |
Balance at the end of year | 4,963 | 13,940 | $ 5,295 |
Unrecognized tax benefits that would impact the effective tax rate, if recognized | 4,300 | ||
Income tax interest and penalties accrued | 500 | $ 500 | |
Expected decrease in liability for unrecognized tax benefits in the next fiscal year | 500 | ||
Unrecognized tax benefits that would impact the effective tax rate in the next fiscal year | 500 | ||
Foreign Country [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryovers | 117,300 | ||
Operating loss carryovers, subject to expiration | 14,800 | ||
Operating loss carryovers, not subject to expiration | 102,500 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryovers | $ 145,200 |
Segment and Geographic Inform45
Segment and Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Revenue from external customers | $ 1,375,964 | $ 1,447,821 | $ 1,462,126 |
Total revenue | 1,420,503 | 1,494,194 | 1,509,540 |
Operating income (loss) | 166,341 | 130,665 | 173,780 |
Interest expense | 16,945 | 16,067 | 16,147 |
Earnings before income taxes | 149,396 | 114,598 | 157,633 |
Assets | 1,711,437 | 1,765,206 | 1,870,734 |
Capital expenditures | 79,941 | 79,398 | 104,246 |
Depreciation and amortization | 47,939 | 51,456 | 52,016 |
Intersegment Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | (44,539) | (46,373) | (47,414) |
Total revenue | 44,539 | 46,373 | 47,414 |
Flavors & Fragrances [Member] | Reportable Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 793,386 | 825,976 | 854,515 |
Total revenue | 819,009 | 851,546 | 880,586 |
Operating income (loss) | 121,874 | 120,888 | 121,806 |
Interest expense | 0 | 0 | 0 |
Earnings before income taxes | 121,874 | 120,888 | 121,806 |
Assets | 806,401 | 819,366 | 901,870 |
Capital expenditures | 56,233 | 41,244 | 59,086 |
Depreciation and amortization | 24,049 | 26,316 | 27,575 |
Flavors & Fragrances [Member] | Intersegment Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 25,623 | 25,570 | 26,071 |
Color [Member] | Reportable Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 452,203 | 488,762 | 475,061 |
Total revenue | 470,939 | 509,336 | 496,307 |
Operating income (loss) | 94,799 | 114,014 | 107,214 |
Interest expense | 0 | 0 | 0 |
Earnings before income taxes | 94,799 | 114,014 | 107,214 |
Assets | 706,769 | 747,738 | 778,864 |
Capital expenditures | 18,933 | 31,883 | 38,639 |
Depreciation and amortization | 18,529 | 18,843 | 17,607 |
Color [Member] | Intersegment Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 18,736 | 20,574 | 21,246 |
Asia Pacific [Member] | Reportable Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 130,375 | 133,083 | 132,550 |
Total revenue | 130,555 | 133,312 | 132,647 |
Operating income (loss) | 25,496 | 25,122 | 22,161 |
Interest expense | 0 | 0 | 0 |
Earnings before income taxes | 25,496 | 25,122 | 22,161 |
Assets | 82,696 | 84,842 | 87,708 |
Capital expenditures | 2,643 | 2,010 | 1,670 |
Depreciation and amortization | 2,349 | 2,473 | 2,543 |
Asia Pacific [Member] | Intersegment Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 180 | 229 | 97 |
Corporate & Other [Member] | Reportable Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue from external customers | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 |
Operating income (loss) | (75,828) | (129,359) | (77,401) |
Interest expense | 16,945 | 16,067 | 16,147 |
Earnings before income taxes | (92,773) | (145,426) | (93,548) |
Assets | 115,571 | 113,260 | 102,292 |
Capital expenditures | 2,132 | 4,261 | 4,851 |
Depreciation and amortization | 3,012 | 3,824 | 4,291 |
Corporate & Other [Member] | Intersegment Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 0 | $ 0 | $ 0 |
Segment and Geographic Inform46
Segment and Geographic Information, Segment and Geographic Info (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | $ 1,375,964 | $ 1,447,821 | $ 1,462,126 |
Long-lived assets | 958,094 | 1,005,817 | 1,080,909 |
Reportable Geographical Components [Member] | North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 744,781 | 750,345 | 782,088 |
Long-lived assets | 524,921 | 537,668 | 531,005 |
Reportable Geographical Components [Member] | Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 349,100 | 389,588 | 382,077 |
Long-lived assets | 397,244 | 423,972 | 506,352 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 177,559 | 193,163 | 188,917 |
Long-lived assets | 26,589 | 29,948 | 32,148 |
Reportable Geographical Components [Member] | Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 104,824 | 114,725 | 109,044 |
Long-lived assets | 9,340 | 14,229 | 11,404 |
Reportable Geographical Components [Member] | United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 592,900 | 573,600 | 590,000 |
Long-lived assets | $ 469,400 | $ 450,800 | $ 389,700 |
Segment and Geographic Inform47
Segment and Geographic Information, Revenue from External Customers by Products and Services (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product Revenue from External Customer [Line Items] | |||
Revenue | $ 1,375,964 | $ 1,447,821 | $ 1,462,126 |
Traditional Flavors & Fragrances [Member] | |||
Product Revenue from External Customer [Line Items] | |||
Revenue | 667,941 | 715,789 | 727,659 |
Natural Ingredients [Member] | |||
Product Revenue from External Customer [Line Items] | |||
Revenue | 240,793 | 227,538 | 244,155 |
Food & Beverage Colors [Member] | |||
Product Revenue from External Customer [Line Items] | |||
Revenue | 328,200 | 335,771 | 308,371 |
Non-Food Colors [Member] | |||
Product Revenue from External Customer [Line Items] | |||
Revenue | 183,569 | 215,096 | 229,355 |
Interdivision Revenue [Member] | |||
Product Revenue from External Customer [Line Items] | |||
Revenue | $ (44,539) | $ (46,373) | $ (47,414) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 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 | 0.2 | 0.1 |
Level 2 [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long term debt | 625.3 | 464.5 |
Level 2 [Member] | Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long term debt | $ 613.9 | $ 451 |
Restructuring Charges (Details)
Restructuring Charges (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015USD ($)FacilityPositions | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)Positions | ||||
Restructuring Cost and Reserve [Line Items] | ||||||
Estimated fair values of the remaining long-lived assets | $ 19,000 | |||||
Long lived asset impairments | 14,500 | $ 70,200 | ||||
Long lived asset impairments recorded to date | $ 84,700 | |||||
Position reduction due to restructuring | Positions | 400 | 280 | ||||
Number of positions eliminated due to restructuring | Positions | 220 | |||||
Impairment charge | $ 2,000 | |||||
Non-cash loss on sale of business | 12,000 | |||||
Assets held for sale of land, buildings and equipment | 9,600 | |||||
Assets held for sale of inventory, receivable and other assets | 21,400 | |||||
Liabilities held for sale | 4,100 | |||||
Total restructuring costs incurred to date | 141,000 | |||||
Future restructuring costs, 2016 | 16,000 | |||||
Estimated cost savings due to restructuring | 30,000 | |||||
Dollar value cost savings of sale of operations | 22,000 | |||||
Current estimated cost savings due to restructuring | 27,000 | |||||
Realized cost of savings | 9,000 | 3,000 | ||||
Pre-tax loss from discontinued operations | (471) | (11,496) | $ (1,418) | |||
Proxy related cost | 3,200 | |||||
Restructuring cost by segment [Abstract] | ||||||
Total Continuing Operations | 42,803 | 87,372 | [1] | 31,735 | ||
Discontinued Operations | 43 | 10,998 | 0 | |||
Total Restructuring | 42,846 | 98,370 | [1] | 31,735 | ||
Detail of the restructuring costs [Abstract] | ||||||
Employee separation | 7,155 | 17,794 | 18,081 | |||
Long-lived asset impairment | 14,551 | 63,431 | 4,176 | |||
Gain on asset sales | (1,301) | (602) | (3,019) | |||
Write-down of inventory | 6,098 | 1,914 | 1,840 | |||
Other Costs | 16,300 | [2] | 4,835 | [3] | 10,657 | [3] |
Total | 42,803 | 87,372 | [1] | 31,735 | ||
Summary of accrual for restructuring and other charges [Abstract] | ||||||
Balance as of beginning of period | 15,806 | 6,150 | ||||
Expense activity | 23,601 | 23,855 | [1] | |||
Cash spent | (26,907) | (12,662) | [1] | |||
Translation adjustment | (1,328) | (1,537) | ||||
Balance as of beginning of period | 11,172 | 15,806 | 6,150 | |||
Minimum [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected incremental savings in 2016 | 6,000 | |||||
Maximum [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected incremental savings in 2016 | 7,000 | |||||
Selling & Administrative [Member] | ||||||
Restructuring cost by segment [Abstract] | ||||||
Total Continuing Operations | 36,705 | 85,458 | [1] | 29,895 | ||
Detail of the restructuring costs [Abstract] | ||||||
Employee separation | 7,155 | 17,794 | 18,081 | |||
Long-lived asset impairment | 14,551 | 63,431 | 4,176 | |||
Gain on asset sales | (1,301) | (602) | (3,019) | |||
Write-down of inventory | 0 | 0 | 0 | |||
Other Costs | 16,300 | [2] | 4,835 | [3] | 10,657 | [3] |
Total | 36,705 | 85,458 | [1] | 29,895 | ||
Cost of Products Sold [Member] | ||||||
Restructuring cost by segment [Abstract] | ||||||
Total Continuing Operations | 6,098 | 1,914 | 1,840 | |||
Detail of the restructuring costs [Abstract] | ||||||
Employee separation | 0 | 0 | 0 | |||
Long-lived asset impairment | 0 | 0 | 0 | |||
Gain on asset sales | 0 | 0 | 0 | |||
Write-down of inventory | 6,098 | 1,914 | 1,840 | |||
Other Costs | 0 | 0 | 0 | |||
Total | $ 6,098 | 1,914 | 1,840 | |||
Flavors & Fragrances [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Facilities identified for consolidation | Facility | 8 | |||||
Restructuring cost by segment [Abstract] | ||||||
Total Continuing Operations | $ 37,309 | 83,871 | 22,284 | |||
Detail of the restructuring costs [Abstract] | ||||||
Total | $ 37,309 | 83,871 | 22,284 | |||
Flavors & Fragrances [Member] | North America [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Facilities identified for consolidation | Facility | 4 | |||||
Flavors & Fragrances [Member] | Europe [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Facilities identified for consolidation | Facility | 4 | |||||
Color [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Facilities identified for closure | Facility | 1 | |||||
Restructuring cost by segment [Abstract] | ||||||
Total Continuing Operations | $ 2,113 | 0 | 7,065 | |||
Detail of the restructuring costs [Abstract] | ||||||
Total | 2,113 | 0 | 7,065 | |||
Asia Pacific [Member] | ||||||
Restructuring cost by segment [Abstract] | ||||||
Total Continuing Operations | 82 | 261 | 665 | |||
Detail of the restructuring costs [Abstract] | ||||||
Total | 82 | 261 | 665 | |||
Corporate & Other [Member] | ||||||
Restructuring cost by segment [Abstract] | ||||||
Total Continuing Operations | 3,299 | 3,240 | 1,721 | |||
Detail of the restructuring costs [Abstract] | ||||||
Total | 3,299 | 3,240 | 1,721 | |||
Employee Separations [Member] | ||||||
Summary of accrual for restructuring and other charges [Abstract] | ||||||
Balance as of beginning of period | 14,909 | 4,562 | ||||
Expense activity | 6,853 | 18,951 | ||||
Cash spent | (10,174) | (7,067) | ||||
Translation adjustment | (1,328) | (1,537) | ||||
Balance as of beginning of period | 10,260 | 14,909 | 4,562 | |||
Other Costs [Member] | ||||||
Summary of accrual for restructuring and other charges [Abstract] | ||||||
Balance as of beginning of period | 897 | 1,588 | ||||
Expense activity | 16,748 | 4,904 | [1] | |||
Cash spent | (16,773) | (5,595) | [1] | |||
Translation adjustment | 0 | 0 | ||||
Balance as of beginning of period | $ 912 | $ 897 | $ 1,588 | |||
[1] | In 2014, the Company recorded $3.2 million of proxy costs related to the 2014 proxy contest. These costs were included in this disclosure in the Company's 2014 Annual Report to Shareholders. These costs have been removed from the disclosure to conform to current year presentation | |||||
[2] | Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs. | |||||
[3] | Other costs include decommissioning costs, professional services, moving costs and other related costs. |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Certain Consolidated Condensed Statements of Earnings information for discontinued operations [Abstract] | |||
Net sales | $ 187 | $ 5,197 | $ 5,424 |
Loss from discontinued operations before income taxes | (471) | (11,496) | (1,418) |
Income tax benefit | 9 | 3,371 | 415 |
Loss from discontinued operations, net of tax | (462) | (8,125) | (1,003) |
Pre-tax restructuring costs from discontinued operations | $ 43 | $ 10,998 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Employee | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Operating leases, future minimum payments due [Abstract] | |||
Operating leases, due in 2016 | $ 9.8 | ||
Operating leases, due in 2017 | 6.3 | ||
Operating leases, due in 2018 | 4.2 | ||
Operating leases, due in 2019 | 2.3 | ||
Operating leases, due in 2020 | 1.6 | ||
Operating leases, due thereafter | 1.8 | ||
Rent expense | $ 12.3 | $ 10.7 | $ 10.6 |
Sensient Natural Ingredients LLC [Member] | |||
Loss Contingencies [Line Items] | |||
Number of employees terminated | Employee | 5 | ||
Number of additional potentially aggrieved former employees | Employee | 13 |
Schedule II Valuation and Qua52
Schedule II Valuation and Qualifying Accounts (Details) - Allowance for Trade Receivables [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 3,838 | $ 4,327 | $ 3,045 | |
Additions Charged to Costs and Expenses | 1,459 | 896 | 1,413 | |
Additions Recorded During Acquisitions | 0 | 0 | 0 | |
Deductions | [1] | 1,426 | 1,385 | 130 |
Balance at End of Period | $ 3,871 | $ 3,838 | $ 4,327 | |
[1] | Accounts written off, net of recoveries. |