Sensient Technologies (SXT) 10-Q 7 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	SENSIENT TECHNOLOGIES CORP
Entity Central Index Key	310,142
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		42,336,473
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract]
Revenue	$ 356,477	$ 341,397
Cost of products sold	233,406	220,452
Selling and administrative expenses	67,390	96,908
Operating income	55,681	24,037
Interest expense	5,555	4,811
Earnings before income taxes	50,126	19,226
Income taxes	11,932	6,034
Net earnings	$ 38,194	$ 13,192
Weighted average number of shares outstanding:
Basic (in shares)	42,879	44,202
Diluted (in shares)	43,034	44,479
Earnings per common share:
Basic (in dollars per share)	$ 0.89	$ 0.30
Diluted (in dollars per share)	0.89	0.30
Dividends declared per common share (in dollars per share)	$ 0.33	$ 0.30

CONSOLIDATED CONDENSED STATEME3

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Comprehensive Income	$ 62,058	$ 37,271

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 30,420	$ 29,344
Trade accounts receivable, net	216,480	195,439
Inventories	467,996	463,517
Prepaid expenses and other current assets	45,023	43,206
Assets held for sale	2,022	1,969
TOTAL CURRENT ASSETS	761,941	733,475
OTHER ASSETS	67,432	68,251
DEFERRED TAX ASSETS	10,980	7,885
INTANGIBLE ASSETS, NET	7,680	7,211
GOODWILL	425,321	408,995
PROPERTY, PLANT AND EQUIPMENT:
Land	35,925	35,198
Buildings	323,001	317,464
Machinery and equipment	709,085	687,896
Construction in progress	35,966	40,833
Property, plant and equipment, gross	1,103,977	1,081,391
Less accumulated depreciation	(601,943)	(582,868)
Property, plant and equipment, net	502,034	498,523
TOTAL ASSETS	1,775,388	1,724,340
CURRENT LIABILITIES:
Trade accounts payable	96,136	109,780
Accrued salaries, wages and withholdings from employees	21,586	23,613
Other accrued expenses	50,230	51,764
Income taxes	15,049	11,036
Short-term borrowings	20,237	20,130
TOTAL CURRENT LIABILITIES	203,238	216,323
DEFERRED TAX LIABILITIES	17,722	18,724
OTHER LIABILITIES	13,686	13,539
ACCRUED EMPLOYEE AND RETIREE BENEFITS	22,021	19,294
LONG-TERM DEBT	691,265	604,159
SHAREHOLDERS' EQUITY:
Common stock	5,396	5,396
Additional paid-in capital	103,099	107,176
Earnings reinvested in the business	1,438,823	1,414,485
Treasury stock, at cost	(594,392)	(525,422)
Accumulated other comprehensive loss	(125,470)	(149,334)
TOTAL SHAREHOLDERS' EQUITY	827,456	852,301
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,775,388	$ 1,724,340

CONSOLIDATED CONDENSED STATEME5

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net earnings	$ 38,194	$ 13,192
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization	12,578	12,141
Share-based compensation	1,254	1,930
Net loss on assets	70	386
Loss on divestiture of business	0	31,882
Deferred income taxes	(4,346)	2,202
Changes in operating assets and liabilities	(29,499)	(30,574)
Net cash provided by operating activities	18,251	31,159
Cash flows from investing activities:
Acquisition of property, plant and equipment	(11,058)	(10,069)
Cash receipts on sold receivables	9,051	6,407
Proceeds from sale of assets	45	105
Proceeds from divesture of business	0	12,457
Acquisition of new businesses	(11,000)	0
Other investing activity	(798)	(63)
Net cash (used in) provided by investing activities	(13,760)	8,837
Cash flows from financing activities:
Proceeds from additional borrowings	92,348	5,657
Debt payments	(12,280)	(19,350)
Purchase of treasury stock	(72,704)	(12,365)
Dividends paid	(14,274)	(13,306)
Other financing activity	(2,715)	(477)
Net cash used in financing activities	(9,625)	(39,841)
Effect of exchange rate changes on cash and cash equivalents	6,210	3,089
Net increase in cash and cash equivalents	1,076	3,244
Cash and cash equivalents at beginning of year	29,344	25,865
Cash and cash equivalents at end of year	$ 30,420	$ 29,109

Accounting Policies

Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Accounting Policies	1. Accounting Policies In the opinion of Sensient Technologies Corporation (the “Company”), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of March 31, 2018, and the results of operations, comprehensive income, and cash flows for the three months ended March 31, 2018 and 2017. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred. Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2017, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change except for the Company’s Revenue Recognition accounting policy, which has been updated as a result of the Company’s adoption in the current quarter of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers Revenue Recognition The Company recognizes revenue as the transfer of control of its products to the Company’s customers in an amount reflecting the consideration the Company expects to be entitled. In order to achieve this core principle, the Company applies the following five-step approach: · Identification of the contract, or contracts, with a customer · Identification of the performance obligations in the contract · Determination of the transaction price · Allocation of the transaction price to the performance obligations in the contract · Recognition of revenue when, or as, we satisfy the performance obligations The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. In addition, the Company evaluates the customer’s ability to pay as part of its consideration of the contract. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under Accounting Standards Codification (ASC) 606-10-32-18, and determined that its contracts do not have a significant financing component. The Company allocates the transaction price to each distinct product based on the relative standalone selling price. Revenue is recognized when control of the product is transferred to the customer, the customer is obligated to pay the Company, and the Company has no remaining obligations, which is typically at shipment. In certain locations, primarily outside the United States, product shipping terms may vary. Thus, in such locations, the point at which control of the product transfers to the customer and revenue recognition occurs will vary accordingly. Customer returns of non-conforming products are estimated at the time revenue is recognized. In certain customer relationships, volume rebates exist, which are recognized according to the terms and conditions of the contractual relationship. Customer returns, rebates, and discounts are not material to the Company’s consolidated financial statements. The Company has elected to recognize the revenue and cost for freight and shipping when control over the products has transferred to the customer. The Company has elected to immediately expense contract costs from obtaining a contract as the amortization period of the asset the Company otherwise would have recognized would have been less than a year. The Company disaggregates its revenue with customers by certain product lines and geographic locations for the Flavors & Fragrances and Color segments. Revenue for the Asia Pacific segment is managed on a geographic basis. For more information on the Company’s disaggregated revenue, see Note 4, Segment Information New Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued, ASU No. 2014-09, Revenue from Contracts with Customers Segment Information Segment Information Management’s Discussion and Analysis of Financial Condition and Results of Operations. In February 2016, the FASB issued ASU No. 2016-02, Leases In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payment . This ASU clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Among these changes, is a requirement that a transferor’s receipt of a beneficial interest in securitized trade receivables be disclosed as an investing transaction. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company adopted this standard in the current quarter and included $9.1 million as an adjustment to net cash provided by investing activities. The Company has also reclassified the first quarter of 2017 to include $6.4 million collected on sold receivables in cash provided by investing activities rather than cash provided by operating activities as previously reported. In December 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory Earnings reinvested in the business Deferred Tax Assets Prepaid Expense and Other Current Assets Deferred Tax Liabilities In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Interest Expense Selling and Administrative Expenses In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities -

Acquisition

Acquisition	3 Months Ended
	Mar. 31, 2018
Acquisition [Abstract]
Acquisition	2. Acquisition On March 9, 2018, the Company completed the acquisition of certain net assets and the natural color business of GlobeNatural, GlobeNatural

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2018
Fair Value [Abstract]
Fair Value	3. Fair Value Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures Other Assets 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 March 31, 2018. 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 March 31, 2018, was $691.3 million. The fair value of the long-term debt at March 31, 2018, was $701.9 million.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2018
Segment Information [Abstract]
Segment Information	4. Segment Information Operating results by segment for the periods presented are as follows: (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated Three months ended March 31, 2018: Revenue from external customers $ 182,482 $ 143,728 $ 30,267 $ - $ 356,477 Intersegment revenue 5,864 3,432 - - 9,296 Total revenue $ 188,346 $ 147,160 $ 30,267 $ - $ 365,773 Operating income (loss) $ 25,327 $ 33,672 $ 4,872 $ (8,190 ) $ 55,681 Interest expense - - - 5,555 5,555 Earnings (loss) before income taxes $ 25,327 $ 33,672 $ 4,872 $ (13,745 ) $ 50,126 Three months ended March 31, 2017: Revenue from external customers $ 181,075 $ 130,840 $ 29,482 $ - $ 341,397 Intersegment revenue 5,800 3,226 154 - 9,180 Total revenue $ 186,875 $ 134,066 $ 29,636 $ - $ 350,577 Operating income (loss) $ 28,770 $ 30,217 $ 5,150 $ (40,100 ) $ 24,037 Interest expense - - - 4,811 4,811 Earnings (loss) before income taxes $ 28,770 $ 30,217 $ 5,150 $ (44,911 ) $ 19,226 The Company evaluates performance based on operating income of the respective segments before restructuring and other costs, interest expense, and income taxes. The 2017 restructuring and other costs are reported in Corporate & Other. The 2017 other costs pertain to the costs associated with the Company’s divestiture of a facility and certain related business lines within the Flavors & Fragrances business in Strasbourg, France. In addition to evaluating the Company’s performance based on the segments above, revenue is also disaggregated and analyzed by product line and geographic market. The following table displays our revenue by these major sources. Product Lines (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended March 31, 2018: Flavors $ 109,051 $ - $ - $ 109,051 Natural Ingredients 53,201 - - 53,201 Fragrances 26,094 - - 26,094 Food & Beverage Colors - 76,816 - 76,816 Cosmetics - 45,504 - 45,504 Other Colors - 24,840 - 24,840 Asia Pacific - - 30,267 30,267 Intersegment Revenue (5,864 ) (3,432 ) - (9,296 ) Total revenue from external customers $ 182,482 $ 143,728 $ 30,267 $ 356,477 Three months ended March 31, 2017: Flavors $ 113,617 $ - $ - $ 113,617 Natural Ingredients 53,522 - - 53,522 Fragrances 19,736 - - 19,736 Food & Beverage Colors - 71,388 - 71,388 Cosmetics - 37,459 - 37,459 Other Colors - 25,219 - 25,219 Asia Pacific - - 29,636 29,636 Intersegment Revenue (5,800 ) (3,226 ) (154 ) (9,180 ) Total revenue from external customers $ 181,075 $ 130,840 $ 29,482 $ 341,397 Geographic Markets (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended March 31, 2018: North America $ 119,055 $ 63,582 $ - $ 182,637 Europe 45,427 43,631 6 89,064 Asia Pacific 7,022 16,910 30,011 53,943 Other 10,978 19,605 250 30,833 Total revenue from external customers $ 182,482 $ 143,728 $ 30,267 $ 356,477 Three months ended March 31, 2017: North America $ 122,122 $ 61,734 $ - $ 183,856 Europe 42,507 36,323 61 78,891 Asia Pacific 6,324 14,778 29,316 50,418 Other 10,122 18,005 105 28,232 Total revenue from external customers $ 181,075 $ 130,840 $ 29,482 $ 341,397

Inventories

Inventories	3 Months Ended
	Mar. 31, 2018
Inventories [Abstract]
Inventories	5. Inventories At March 31, 2018, and December 31, 2017, inventories included finished and in-process products totaling $322.6 million and $310.4 million, respectively, and raw materials and supplies of $145.4 million and $153.1 million, respectively.

Retirement Plans

Retirement Plans	3 Months Ended
	Mar. 31, 2018
Retirement Plans [Abstract]
Retirement Plans	6. Retirement Plans The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows: Three Months Ended March 31, (In thousands) 2018 2017 Service cost $ 368 $ 461 Interest cost 289 355 Expected return on plan assets (245 ) (255 ) Amortization of actuarial gain (27 ) (21 ) Total defined benefit expense $ 385 $ 540 As noted in Note 1, Accounting Policies Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , Interest Expense Selling and Administrative Expenses

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2018
Shareholders' Equity [Abstract]
Shareholders' Equity	7. Shareholders’ Equity The Company repurchased 1 million shares of its common stock for an aggregate cost of $72.7 million during the three months ended March 31, 2018, and 155,849 shares of its common stock for an aggregate cost of $12.4 million during the three months ended March 31, 2017. The amount of treasury stock purchases reported in the Company’s Consolidated Condensed Statements of Cash Flow represent purchases that have settled within each respective three-month period.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activity	3 Months Ended
	Mar. 31, 2018
Derivative Instruments and Hedging Activity [Abstract]
Derivative Instruments and Hedging Activity	8. Derivative Instruments and Hedging Activity The Company may use forward exchange contracts and foreign currency denominated debt to manage its exposure to foreign exchange risk by reducing the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company’s primary hedging activities and their accounting treatment are summarized below: Forward exchange contracts Net investment hedges

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Taxes [Abstract]
Income Taxes	9. Income Taxes The effective income tax rates for continuing operations for the quarters ended March 31, 2018 and 2017, were 23.8% and 31.4%, respectively. The effective tax rates in both 2018 and 2017 were impacted by changes in estimates associated with the finalization of prior year foreign and domestic tax items, audit settlements, adjustments to valuation allowances, and mix of foreign earnings. The 2018 tax rate was also impacted by the 2017 Tax Cuts and Jobs Act which is commonly referred to as “2017 Tax Legislation” and the tax rate in 2017 was also impacted by the restructuring activities, the limited tax deductibility of losses related to the Company’s restructuring activities, and the now completed sale of a facility and certain related business lines within the Flavors & Fragrances segment in Strasbourg, France. Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Legislation. The Company is applying SAB 118, and believes the impact of the 2017 Tax Legislation on the 2018 and 2017 income tax expenses should be considered provisional estimates. The ultimate impact could differ from these provisional amounts, possibly materially, due to, additional guidance, changes in interpretation, and additional analysis and assumptions the Company has made. Any adjustments to the 2018 and 2017 provisional estimates will be reported in income tax expense in the reporting period in which any such adjustments are determined, which will be no later than the fourth quarter of 2018.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2018
Accumulated Other Comprehensive Income [Abstract]
Accumulated Other Comprehensive Income	10. Accumulated Other Comprehensive Income The following table summarizes the changes in OCI during the three-month period ended March 31, 2018: (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balance as of December 31, 2017 $ (669 ) $ (309 ) $ (148,356 ) $ (149,334 ) Other comprehensive income before reclassifications 670 - 23,186 23,856 Amounts reclassified from OCI 38 (30 ) - 8 Balance as of March 31, 2018 $ 39 $ (339 ) $ (125,170 ) $ (125,470 ) (a) Cash Flow Hedges and Pension Items are net of tax.

Accounts Receivable Securitizat

Accounts Receivable Securitization	3 Months Ended
	Mar. 31, 2018
Accounts Receivable Securitization [Abstract]
Accounts Receivable Securitization	11. Accounts Receivable Securitization The Company is engaged in an accounts receivable securitization program with a commitment size of $60 million, whereby transactions under the program are accounted for as sales of trade receivables in accordance with ASC Topic 860, Transfers and Servicing As of March 31, 2018 and 2017, the net trade receivables sold totaled $99.2 million and $56.6 million, respectively, and the fair value of the deferred purchase price receivable was $39.2 million and $16.6 million as of March 31, 2018 and 2017, respectively, which are recorded in Trade Accounts Receivable

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2018
Restructuring [Abstract]
Restructuring	12. Restructuring Between March 2014 and 2017, the Company executed a restructuring plan to eliminate underperforming operations, consolidate manufacturing facilities, and improve efficiencies within the Company. The Company recorded $20.2 million of restructuring costs in Corporate & Other for the three months ended March 31, 2017. There were no restructuring and other costs incurred in the three months ended March 31, 2018.

Divestiture

Divestiture	3 Months Ended
	Mar. 31, 2018
Divestiture [Abstract]
Divestiture	13. Divestiture In the first quarter of 2017, the Company completed the sale of a facility and certain business lines in Strasbourg, France, for $12.5 million. The Company recognized a non-cash loss of approximately $11.0 million in Corporate & Other during the three months ended March 31, 2017.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies [Abstract]
Commitments and Contingencies	14. Commitments and Contingencies The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period.

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition The Company recognizes revenue as the transfer of control of its products to the Company’s customers in an amount reflecting the consideration the Company expects to be entitled. In order to achieve this core principle, the Company applies the following five-step approach: · Identification of the contract, or contracts, with a customer · Identification of the performance obligations in the contract · Determination of the transaction price · Allocation of the transaction price to the performance obligations in the contract · Recognition of revenue when, or as, we satisfy the performance obligations The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. In addition, the Company evaluates the customer’s ability to pay as part of its consideration of the contract. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under Accounting Standards Codification (ASC) 606-10-32-18, and determined that its contracts do not have a significant financing component. The Company allocates the transaction price to each distinct product based on the relative standalone selling price. Revenue is recognized when control of the product is transferred to the customer, the customer is obligated to pay the Company, and the Company has no remaining obligations, which is typically at shipment. In certain locations, primarily outside the United States, product shipping terms may vary. Thus, in such locations, the point at which control of the product transfers to the customer and revenue recognition occurs will vary accordingly. Customer returns of non-conforming products are estimated at the time revenue is recognized. In certain customer relationships, volume rebates exist, which are recognized according to the terms and conditions of the contractual relationship. Customer returns, rebates, and discounts are not material to the Company’s consolidated financial statements. The Company has elected to recognize the revenue and cost for freight and shipping when control over the products has transferred to the customer. The Company has elected to immediately expense contract costs from obtaining a contract as the amortization period of the asset the Company otherwise would have recognized would have been less than a year. The Company disaggregates its revenue with customers by certain product lines and geographic locations for the Flavors & Fragrances and Color segments. Revenue for the Asia Pacific segment is managed on a geographic basis. For more information on the Company’s disaggregated revenue, see Note 4, Segment Information
New Pronouncements	New Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued, ASU No. 2014-09, Revenue from Contracts with Customers Segment Information Segment Information Management’s Discussion and Analysis of Financial Condition and Results of Operations. In February 2016, the FASB issued ASU No. 2016-02, Leases In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payment . This ASU clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Among these changes, is a requirement that a transferor’s receipt of a beneficial interest in securitized trade receivables be disclosed as an investing transaction. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company adopted this standard in the current quarter and included $9.1 million as an adjustment to net cash provided by investing activities. The Company has also reclassified the first quarter of 2017 to include $6.4 million collected on sold receivables in cash provided by investing activities rather than cash provided by operating activities as previously reported. In December 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory Earnings reinvested in the business Deferred Tax Assets Prepaid Expense and Other Current Assets Deferred Tax Liabilities In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Interest Expense Selling and Administrative Expenses In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities -

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Information [Abstract]
Segment Information	Operating results by segment for the periods presented are as follows: (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated Three months ended March 31, 2018: Revenue from external customers $ 182,482 $ 143,728 $ 30,267 $ - $ 356,477 Intersegment revenue 5,864 3,432 - - 9,296 Total revenue $ 188,346 $ 147,160 $ 30,267 $ - $ 365,773 Operating income (loss) $ 25,327 $ 33,672 $ 4,872 $ (8,190 ) $ 55,681 Interest expense - - - 5,555 5,555 Earnings (loss) before income taxes $ 25,327 $ 33,672 $ 4,872 $ (13,745 ) $ 50,126 Three months ended March 31, 2017: Revenue from external customers $ 181,075 $ 130,840 $ 29,482 $ - $ 341,397 Intersegment revenue 5,800 3,226 154 - 9,180 Total revenue $ 186,875 $ 134,066 $ 29,636 $ - $ 350,577 Operating income (loss) $ 28,770 $ 30,217 $ 5,150 $ (40,100 ) $ 24,037 Interest expense - - - 4,811 4,811 Earnings (loss) before income taxes $ 28,770 $ 30,217 $ 5,150 $ (44,911 ) $ 19,226
Product Information	Product Lines (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended March 31, 2018: Flavors $ 109,051 $ - $ - $ 109,051 Natural Ingredients 53,201 - - 53,201 Fragrances 26,094 - - 26,094 Food & Beverage Colors - 76,816 - 76,816 Cosmetics - 45,504 - 45,504 Other Colors - 24,840 - 24,840 Asia Pacific - - 30,267 30,267 Intersegment Revenue (5,864 ) (3,432 ) - (9,296 ) Total revenue from external customers $ 182,482 $ 143,728 $ 30,267 $ 356,477 Three months ended March 31, 2017: Flavors $ 113,617 $ - $ - $ 113,617 Natural Ingredients 53,522 - - 53,522 Fragrances 19,736 - - 19,736 Food & Beverage Colors - 71,388 - 71,388 Cosmetics - 37,459 - 37,459 Other Colors - 25,219 - 25,219 Asia Pacific - - 29,636 29,636 Intersegment Revenue (5,800 ) (3,226 ) (154 ) (9,180 ) Total revenue from external customers $ 181,075 $ 130,840 $ 29,482 $ 341,397
Geographical Information	Geographic Markets (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended March 31, 2018: North America $ 119,055 $ 63,582 $ - $ 182,637 Europe 45,427 43,631 6 89,064 Asia Pacific 7,022 16,910 30,011 53,943 Other 10,978 19,605 250 30,833 Total revenue from external customers $ 182,482 $ 143,728 $ 30,267 $ 356,477 Three months ended March 31, 2017: North America $ 122,122 $ 61,734 $ - $ 183,856 Europe 42,507 36,323 61 78,891 Asia Pacific 6,324 14,778 29,316 50,418 Other 10,122 18,005 105 28,232 Total revenue from external customers $ 181,075 $ 130,840 $ 29,482 $ 341,397

Retirement Plans (Tables)

Retirement Plans (Tables)	3 Months Ended
	Mar. 31, 2018
Retirement Plans [Abstract]
Components of Annual Benefit Cost	The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows: Three Months Ended March 31, (In thousands) 2018 2017 Service cost $ 368 $ 461 Interest cost 289 355 Expected return on plan assets (245 ) (255 ) Amortization of actuarial gain (27 ) (21 ) Total defined benefit expense $ 385 $ 540

Accumulated Other Comprehensi23

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2018
Accumulated Other Comprehensive Income [Abstract]
Summary of Changes in OCI	The following table summarizes the changes in OCI during the three-month period ended March 31, 2018: (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balance as of December 31, 2017 $ (669 ) $ (309 ) $ (148,356 ) $ (149,334 ) Other comprehensive income before reclassifications 670 - 23,186 23,856 Amounts reclassified from OCI 38 (30 ) - 8 Balance as of March 31, 2018 $ 39 $ (339 ) $ (125,170 ) $ (125,470 ) (a) Cash Flow Hedges and Pension Items are net of tax.

Accounting Policies (Details)

Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Collected on sold receivables	$ 9,051	$ 6,407
Increase to earnings reinvested in the business	1,438,823		$ 1,414,485
Increase to deferred tax assets	10,980		7,885
(Decrease) to prepaid expense and other current assets	(45,023)		(43,206)
(Decrease) to deferred tax liabilities	(17,722)		$ (18,724)
ASU 2016-15 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Collected on sold receivables	9,051	$ 6,407
ASU 2016-16 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase to earnings reinvested in the business	400
Increase to deferred tax assets	3,000
(Decrease) to prepaid expense and other current assets	(3,700)
(Decrease) to deferred tax liabilities	$ (1,100)

Acquisition (Details)

Acquisition (Details) - USD ($) $ in Thousands	Mar. 09, 2018	Mar. 31, 2018	Mar. 31, 2017
Business Acquisition [Line Items]
Payments to acquire business		$ 11,000	$ 0
Globe Natural [Member]
Business Acquisition [Line Items]
Payments to acquire business	$ 10,500
Purchase price excess on carrying value of the net assets allocated to intangible assets and goodwill	$ 8,400

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 100	$ 100
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Forward exchange contracts, asset	100
Forward exchange contracts, liability		$ 600
Level 2 [Member] | Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term debt	691,300
Level 2 [Member] | Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term debt	$ 701,900

Segment Information, Operating

Segment Information, Operating Results by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue [Abstract]
Revenue	$ 356,477	$ 341,397
Operating income (loss)	55,681	24,037
Interest expense	5,555	4,811
Earnings before income taxes	50,126	19,226
Flavors & Fragrances [Member]
Revenue [Abstract]
Revenue	182,482	181,075
Operating income (loss)	25,327	28,770
Interest expense	0	0
Earnings before income taxes	25,327	28,770
Color [Member]
Revenue [Abstract]
Revenue	143,728	130,840
Operating income (loss)	33,672	30,217
Interest expense	0	0
Earnings before income taxes	33,672	30,217
Asia Pacific [Member]
Revenue [Abstract]
Revenue	30,267	29,482
Operating income (loss)	4,872	5,150
Interest expense	0	0
Earnings before income taxes	4,872	5,150
Reportable Segments [Member]
Revenue [Abstract]
Revenue	365,773	350,577
Reportable Segments [Member] | Flavors & Fragrances [Member]
Revenue [Abstract]
Revenue	188,346	186,875
Reportable Segments [Member] | Color [Member]
Revenue [Abstract]
Revenue	147,160	134,066
Reportable Segments [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	30,267	29,636
Intersegment Revenue [Member]
Revenue [Abstract]
Revenue	(9,296)	(9,180)
Intersegment Revenue [Member] | Flavors & Fragrances [Member]
Revenue [Abstract]
Revenue	(5,864)	(5,800)
Intersegment Revenue [Member] | Color [Member]
Revenue [Abstract]
Revenue	(3,432)	(3,226)
Intersegment Revenue [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	0	(154)
Corporate & Other [Member]
Revenue [Abstract]
Revenue	0	0
Operating income (loss)	(8,190)	(40,100)
Interest expense	5,555	4,811
Earnings before income taxes	$ (13,745)	$ (44,911)

Segment Information, Revenue fr

Segment Information, Revenue from External Customers by Product Line (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue [Abstract]
Revenue	$ 356,477	$ 341,397
Flavors & Fragrances [Member]
Revenue [Abstract]
Revenue	182,482	181,075
Flavors [Member]
Revenue [Abstract]
Revenue	109,051	113,617
Natural Ingredients [Member]
Revenue [Abstract]
Revenue	53,201	53,522
Fragrances [Member]
Revenue [Abstract]
Revenue	26,094	19,736
Color [Member]
Revenue [Abstract]
Revenue	143,728	130,840
Food & Beverage Colors [Member]
Revenue [Abstract]
Revenue	76,816	71,388
Cosmetics [Member]
Revenue [Abstract]
Revenue	45,504	37,459
Other Colors [Member]
Revenue [Abstract]
Revenue	24,840	25,219
Asia Pacific [Member]
Revenue [Abstract]
Revenue	30,267	29,482
Intersegment Revenue [Member]
Revenue [Abstract]
Revenue	(9,296)	(9,180)
Intersegment Revenue [Member] | Flavors & Fragrances [Member]
Revenue [Abstract]
Revenue	(5,864)	(5,800)
Intersegment Revenue [Member] | Color [Member]
Revenue [Abstract]
Revenue	(3,432)	(3,226)
Intersegment Revenue [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	$ 0	$ (154)

Segment Information, Revenue 29

Segment Information, Revenue from External Customers by Geographic Markets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue [Abstract]
Revenue	$ 356,477	$ 341,397
North America [Member]
Revenue [Abstract]
Revenue	182,637	183,856
Europe [Member]
Revenue [Abstract]
Revenue	89,064	78,891
Asia Pacific [Member]
Revenue [Abstract]
Revenue	53,943	50,418
Other [Member]
Revenue [Abstract]
Revenue	30,833	28,232
Flavors & Fragrances [Member]
Revenue [Abstract]
Revenue	182,482	181,075
Color [Member]
Revenue [Abstract]
Revenue	143,728	130,840
Asia Pacific [Member]
Revenue [Abstract]
Revenue	30,267	29,482
Asia Pacific [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	30,267	29,482
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | North America [Member]
Revenue [Abstract]
Revenue	119,055	122,122
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Europe [Member]
Revenue [Abstract]
Revenue	45,427	42,507
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	7,022	6,324
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Other [Member]
Revenue [Abstract]
Revenue	10,978	10,122
Reportable Geographical Components [Member] | Color [Member] | North America [Member]
Revenue [Abstract]
Revenue	63,582	61,734
Reportable Geographical Components [Member] | Color [Member] | Europe [Member]
Revenue [Abstract]
Revenue	43,631	36,323
Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	16,910	14,778
Reportable Geographical Components [Member] | Color [Member] | Other [Member]
Revenue [Abstract]
Revenue	19,605	18,005
Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member]
Revenue [Abstract]
Revenue	0	0
Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member]
Revenue [Abstract]
Revenue	6	61
Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	30,011	29,316
Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member]
Revenue [Abstract]
Revenue	$ 250	$ 105

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventories [Abstract]
Inventories, including finished and in-process products	$ 322,600	$ 310,400
Raw materials and supplies	$ 145,400	$ 153,100

Retirement Plans (Details)

Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 368	$ 461
Interest cost	289	355
Expected return on plan assets	(245)	(255)
Amortization of actuarial gain	(27)	(21)
Total defined benefit expense	$ 385	$ 540

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Shareholders' Equity [Abstract]
Common stock repurchased during the period (in shares)	1,000,000	155,849
Common stock repurchased during the period, value	$ 72,700	$ 12,400

Derivative Instruments and He33

Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Maximum [Member]
Derivative instruments and hedging activity for the period [Abstract]
Number of months for contracts to mature	18 months
Forward Exchange Contracts [Member] | Cash Flow Hedges [Member]
Derivative instruments and hedging activity for the period [Abstract]
Derivative, fair value	$ 31,200	$ 44,900
Foreign Currency Denominated Debt, Net Investment Hedging [Member]
Derivative instruments and hedging activity for the period [Abstract]
Carrying value of foreign denominated debt	268,800	$ 261,900
Impact of foreign exchange rates on debt instruments recorded in Other Comprehensive Income	$ 6,900

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Taxes [Abstract]
Effective income tax rates for continuing operations	23.80%	31.40%

Accumulated Other Comprehensi35

Accumulated Other Comprehensive Income (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Accumulated Other Comprehensive Loss [Roll Forward]
Beginning balance	$ 852,301
Other comprehensive income before reclassifications	23,856
Amounts reclassified from OCI	8
Ending balance	827,456
Accumulated Other Comprehensive (Loss) Income [Member]
Accumulated Other Comprehensive Loss [Roll Forward]
Beginning balance	(149,334)
Ending balance	(125,470)
Cash Flow Hedges [Member]
Accumulated Other Comprehensive Loss [Roll Forward]
Beginning balance	(669)	[1]
Other comprehensive income before reclassifications	670	[1]
Amounts reclassified from OCI	38	[1]
Ending balance	39	[1]
Pension Items [Member]
Accumulated Other Comprehensive Loss [Roll Forward]
Beginning balance	(309)	[1]
Other comprehensive income before reclassifications	0	[1]
Amounts reclassified from OCI	(30)	[1]
Ending balance	(339)	[1]
Foreign Currency Items [Member]
Accumulated Other Comprehensive Loss [Roll Forward]
Beginning balance	(148,356)
Other comprehensive income before reclassifications	23,186
Amounts reclassified from OCI	0
Ending balance	$ (125,170)
[1]	Cash Flow Hedges and Pension Items are net of tax.

Accounts Receivable Securitiz36

Accounts Receivable Securitization (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accounts Receivable Securitization [Abstract]
Proceeds from accounts receivable securitization program	$ 60,000
Accounts receivable securitization program	99,200	$ 56,600
Fair value of the deferred purchase price receivable	$ 39,200	$ 16,600

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restructuring Cost and Reserve [Line Items]
Total restructuring	$ 0
Other costs	$ 0
Corporate & Other [Member]
Restructuring Cost and Reserve [Line Items]
Total restructuring		$ 20,200

Divestiture (Details)

Divestiture (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Long Lived Assets Held-for-sale [Line Items]
Proceeds from the sale of facility and related business lines	$ 0	$ 12,457
Corporate & Other [Member]
Long Lived Assets Held-for-sale [Line Items]
Non-cash loss on assets held for sale		$ 11,000