Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | SENSIENT TECHNOLOGIES CORP | |
Entity Central Index Key | 0000310142 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 42,318,528 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-07626 | |
Entity Tax Identification Number | 39-0561070 | |
Entity Incorporation, State or Country Code | WI | |
Entity Address, Address Line One | 777 EAST WISCONSIN AVENUE | |
Entity Address, City or Town | MILWAUKEE | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53202-5304 | |
City Area Code | 414 | |
Local Phone Number | 271-6755 | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Trading Symbol | SXT | |
Security Exchange Name | NYSE |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract] | ||||
Revenue | $ 317,650 | $ 342,734 | $ 1,004,349 | $ 1,062,252 |
Cost of products sold | 215,250 | 227,161 | 674,956 | 702,138 |
Selling and administrative expenses | 63,612 | 65,309 | 193,817 | 201,988 |
Operating income | 38,788 | 50,264 | 135,576 | 158,126 |
Interest expense | 4,936 | 5,407 | 15,538 | 16,517 |
Earnings before income taxes | 33,852 | 44,857 | 120,038 | 141,609 |
Income taxes (benefit) | 1,981 | (2,336) | 21,029 | 17,099 |
Net earnings | $ 31,871 | $ 47,193 | $ 99,009 | $ 124,510 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 42,272 | 42,240 | 42,261 | 42,464 |
Diluted (in shares) | 42,299 | 42,313 | 42,291 | 42,571 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.75 | $ 1.12 | $ 2.34 | $ 2.93 |
Diluted (in dollars per share) | 0.75 | 1.12 | 2.34 | 2.92 |
Dividends declared per common share (in dollars per share) | $ 0.36 | $ 0.33 | $ 1.08 | $ 0.99 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Comprehensive Income | $ 14,104 | $ 47,961 | $ 83,254 | $ 112,496 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 34,422 | $ 31,901 |
Trade accounts receivable, net | 244,610 | 255,350 |
Inventories | 470,136 | 490,757 |
Prepaid expenses and other current assets | 43,193 | 44,857 |
TOTAL CURRENT ASSETS | 792,361 | 822,865 |
OTHER ASSETS | 82,560 | 66,788 |
DEFERRED TAX ASSETS | 10,942 | 9,189 |
INTANGIBLE ASSETS, NET | 16,883 | 18,867 |
GOODWILL | 406,053 | 416,175 |
PROPERTY, PLANT, AND EQUIPMENT: | ||
Land | 35,894 | 36,787 |
Buildings | 319,472 | 318,463 |
Machinery and equipment | 700,030 | 688,003 |
Construction in progress | 28,656 | 34,772 |
Property, plant, and equipment, gross | 1,084,052 | 1,078,025 |
Less accumulated depreciation | (614,294) | (586,969) |
Property, plant, and equipment, net | 469,758 | 491,056 |
TOTAL ASSETS | 1,778,557 | 1,824,940 |
CURRENT LIABILITIES: | ||
Trade accounts payable | 103,557 | 131,812 |
Accrued salaries, wages, and withholdings from employees | 21,208 | 23,410 |
Other accrued expenses | 44,391 | 31,198 |
Income taxes | 2,828 | 8,234 |
Short-term borrowings | 20,207 | 20,046 |
TOTAL CURRENT LIABILITIES | 192,191 | 214,700 |
DEFERRED TAX LIABILITIES | 28,159 | 28,976 |
OTHER LIABILITIES | 20,568 | 8,554 |
ACCRUED EMPLOYEE AND RETIREE BENEFITS | 23,999 | 23,210 |
LONG-TERM DEBT | 616,967 | 689,553 |
SHAREHOLDERS' EQUITY: | ||
Common stock | 5,396 | 5,396 |
Additional paid-in capital | 98,347 | 101,663 |
Earnings reinvested in the business | 1,569,564 | 1,516,243 |
Treasury stock, at cost | (595,324) | (597,800) |
Accumulated other comprehensive loss | (181,310) | (165,555) |
TOTAL SHAREHOLDERS' EQUITY | 896,673 | 859,947 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,778,557 | $ 1,824,940 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 99,009 | $ 124,510 |
Adjustments to arrive at net cash provided by operating activities: | ||
Depreciation and amortization | 41,706 | 39,057 |
Share-based compensation | (816) | 1,541 |
Net (gain) loss on assets | (1,224) | 311 |
Deferred income taxes | (2,303) | 3,152 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 6,355 | (111,283) |
Inventories | 14,493 | (25,044) |
Prepaid expenses and other assets | (5,053) | (3,118) |
Accounts payable and accrued expenses | (19,565) | (9,266) |
Salaries, wages and withholdings from employees | (1,647) | (782) |
Income taxes | (5,294) | (12,647) |
Other deferred liabilities | 1,920 | 2,429 |
Net cash provided by operating activities | 127,581 | 8,860 |
Cash flows from investing activities: | ||
Acquisition of property, plant, and equipment | (26,073) | (34,090) |
Cash receipts on sold receivables | 0 | 91,142 |
Proceeds from sale of assets | 2,033 | 283 |
Acquisition of new businesses | 0 | (31,100) |
Other investing activity | 4,280 | 616 |
Net cash (used in) provided by investing activities | (19,760) | 26,851 |
Cash flows from financing activities: | ||
Proceeds from additional borrowings | 35,126 | 248,426 |
Debt payments | (90,966) | (158,214) |
Purchase of treasury stock | 0 | (76,734) |
Dividends paid | (45,688) | (42,195) |
Other financing activity | (1,027) | (2,777) |
Net cash used in financing activities | (102,555) | (31,494) |
Effect of exchange rate changes on cash and cash equivalents | (2,745) | 3,199 |
Net increase in cash and cash equivalents | 2,521 | 7,416 |
Cash and cash equivalents at beginning of period | 31,901 | 29,344 |
Cash and cash equivalents at end of period | $ 34,422 | $ 36,760 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - 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, 2017 | $ 5,396 | $ 107,176 | $ 1,414,485 | $ (525,422) | $ (149,334) | $ 852,301 |
Beginning balance (in shares) at Dec. 31, 2017 | 10,759,291 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 124,510 | $ 0 | 0 | 124,510 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (12,014) | (12,014) |
Cash dividends paid | 0 | 0 | (42,195) | 0 | 0 | (42,195) |
Share-based compensation | 0 | 1,541 | 0 | 0 | 0 | 1,541 |
Stock options exercised | 0 | (80) | 0 | $ 200 | 0 | 120 |
Stock options exercised (in shares) | (4,000) | |||||
Non-vested stock issued upon vesting | 0 | (5,454) | 0 | $ 5,454 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (111,185) | |||||
Benefit plans | 0 | 350 | 0 | $ 769 | 0 | 1,119 |
Benefit plans (in shares) | (15,126) | |||||
Purchase of treasury stock | 0 | 0 | 0 | $ (76,734) | 0 | (76,734) |
Purchase of treasury stock (in shares) | 1,060,000 | |||||
Other | 0 | (830) | 418 | $ (2,067) | 0 | (2,479) |
Other (in shares) | 42,243 | |||||
Ending balance at Sep. 30, 2018 | 5,396 | 102,703 | 1,497,218 | $ (597,800) | (161,348) | 846,169 |
Ending balance (in shares) at Sep. 30, 2018 | 11,731,223 | |||||
Beginning balance at Jun. 30, 2018 | 5,396 | 102,943 | 1,463,976 | $ (593,770) | (162,116) | 816,429 |
Beginning balance (in shares) at Jun. 30, 2018 | 11,671,223 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 47,193 | $ 0 | 0 | 47,193 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 768 | 768 |
Cash dividends paid | 0 | 0 | (13,951) | 0 | 0 | (13,951) |
Share-based compensation | 0 | (242) | 0 | 0 | 0 | (242) |
Purchase of treasury stock | 0 | 0 | 0 | $ (4,030) | 0 | (4,030) |
Purchase of treasury stock (in shares) | 60,000 | |||||
Other | 0 | 2 | 0 | $ 0 | 0 | 2 |
Other (in shares) | 0 | |||||
Ending balance at Sep. 30, 2018 | 5,396 | 102,703 | 1,497,218 | $ (597,800) | (161,348) | 846,169 |
Ending balance (in shares) at Sep. 30, 2018 | 11,731,223 | |||||
Beginning balance at Dec. 31, 2018 | 5,396 | 101,663 | 1,516,243 | $ (597,800) | (165,555) | 859,947 |
Beginning balance (in shares) at Dec. 31, 2018 | 11,731,223 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 99,009 | $ 0 | 0 | 99,009 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (15,755) | (15,755) |
Cash dividends paid | 0 | 0 | (45,688) | 0 | 0 | (45,688) |
Share-based compensation | 0 | (816) | 0 | 0 | 0 | (816) |
Non-vested stock issued upon vesting | 0 | (2,343) | 0 | $ 2,343 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (45,981) | |||||
Benefit plans | 0 | 72 | 0 | $ 948 | 0 | 1,020 |
Benefit plans (in shares) | (18,597) | |||||
Other | 0 | (229) | 0 | $ (815) | 0 | (1,044) |
Other (in shares) | 15,991 | |||||
Ending balance at Sep. 30, 2019 | 5,396 | 98,347 | 1,569,564 | $ (595,324) | (181,310) | 896,673 |
Ending balance (in shares) at Sep. 30, 2019 | 11,682,636 | |||||
Beginning balance at Jun. 30, 2019 | 5,396 | 98,037 | 1,552,928 | $ (595,336) | (163,543) | 897,482 |
Beginning balance (in shares) at Jun. 30, 2019 | 11,682,876 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 31,871 | $ 0 | 0 | 31,871 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (17,767) | (17,767) |
Cash dividends paid | 0 | 0 | (15,235) | 0 | 0 | (15,235) |
Share-based compensation | 0 | 339 | 0 | 0 | 0 | 339 |
Non-vested stock issued upon vesting | 0 | (12) | 0 | $ 12 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (240) | |||||
Other | 0 | (17) | 0 | $ 0 | 0 | (17) |
Other (in shares) | 0 | |||||
Ending balance at Sep. 30, 2019 | $ 5,396 | $ 98,347 | $ 1,569,564 | $ (595,324) | $ (181,310) | $ 896,673 |
Ending balance (in shares) at Sep. 30, 2019 | 11,682,636 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) [Abstract] | ||||
Cash dividends per share (in dollars per share) | $ 0.36 | $ 0.33 | $ 1.08 | $ 0.99 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019, and the results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended September 30, 2019 and 2018, and cash flows for the nine months ended September 30, 2019 and 2018. 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, 2018, 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 Lease and Derivative Financial Instruments accounting policies. These policies were updated as a result of the Company’s adoption of Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, Leases The Company enters into lease agreements for certain office space, warehouses, land, and equipment in the ordinary course of business. The Company determines if an arrangement is a lease at inception and evaluates the lease classification (i.e., operating lease or financing lease) at that time. Lease arrangements with an initial term of 12 months or less are considered short-term leases and are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the term of the lease. Operating leases are included in Other Assets Other Accrued Expenses Other Liabilities The Company uses its incremental borrowing rate on the commencement date for determining the present value of lease payments. The Company considers the likelihood of exercising options to extend or terminate the lease when determining the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected the practical expedient of accounting for the lease and non-lease components of each lease as a single lease component. Derivative Financial Instruments The Company selectively uses derivative financial instruments to reduce market risk associated with changes in foreign currency and interest rate exposures that 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 may 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, that 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, including any hedge ineffectiveness, are deferred in accumulated other comprehensive 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. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (Topic 842) Leases (Topic 842) Targeted Improvements 1. The Company will not re-assess an expired or existing contract to determine if it is a lease or contains a lease. 2. The Company will not re-assess the lease classification for an existing lease based on the new standard’s lease classification criteria. 3. The Company will not re-assess the accounting treatment for initial direct costs on existing leases based on the new standard’s guidance. 4. The Company will account for the lease and non-lease components as a single lease component for all leases. The adoption of this standard resulted in the recognition of $20.7 million in right-of-use assets and lease liabilities for operating leases as of January 1, 2019. The adoption of this standard did not have an impact on the Company’s Consolidated Statements of Earnings, or to cash provided by or used in operating, financing, or investing activities on the Company’s Consolidated Statements of Cash Flows. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2018, 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 as discussed above. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2019 | |
Acquisitions [Abstract] | |
Acquisitions | 2. Acquisitions On March 9, 2018, the Company completed the acquisition of certain net assets and the natural color business of GlobeNatural, On July 10, 2018, the Company completed the acquisition of Mazza Innovation Limited |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value [Abstract] | |
Fair Value | 3. Fair Value Accounting Standards Codification (ASC) 820, Fair Value Measurement |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 : Revenue from external customers $ 163,870 $ 123,710 $ 30,070 $ - $ 317,650 Intersegment revenue 3,707 3,295 55 - 7,057 Total revenue $ 167,577 $ 127,005 $ 30,125 $ - $ 324,707 Operating income (loss) $ 17,600 $ 23,436 $ 5,406 $ (7,654 ) $ 38,788 Interest expense - - - 4,936 4,936 Earnings (loss) before income taxes $ 17,600 $ 23,436 $ 5,406 $ (12,590 ) $ 33,852 Three months ended September 30, 2018 : Revenue from external customers $ 179,103 $ 132,356 $ 31,275 $ - $ 342,734 Intersegment revenue 5,294 2,774 - - 8,068 Total revenue $ 184,397 $ 135,130 $ 31,275 $ - $ 350,802 Operating income (loss) $ 24,814 $ 26,565 $ 5,750 $ (6,865 ) $ 50,264 Interest expense - - - 5,407 5,407 Earnings (loss) before income taxes $ 24,814 $ 26,565 $ 5,750 $ (12,272 ) $ 44,857 (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated Nine months ended September 30, 2019 : Revenue from external customers $ 517,148 $ 399,610 $ 87,591 $ - $ 1,004,349 Intersegment revenue 14,116 10,186 55 - 24,357 Total revenue $ 531,264 $ 409,796 $ 87,646 $ - $ 1,028,706 Operating income (loss) $ 60,775 $ 81,512 $ 13,825 $ (20,536 ) $ 135,576 Interest expense - - - 15,538 15,538 Earnings (loss) before income taxes $ 60,775 $ 81,512 $ 13,825 $ (36,074 ) $ 120,038 Nine months ended September 30, 2018 : Revenue from external customers $ 553,403 $ 416,786 $ 92,063 $ - $ 1,062,252 Intersegment revenue 17,998 9,795 - - 27,793 Total revenue $ 571,401 $ 426,581 $ 92,063 $ - $ 1,090,045 Operating income (loss) $ 74,142 $ 91,370 $ 15,256 $ (22,642 ) $ 158,126 Interest expense - - - 16,517 16,517 Earnings (loss) before income taxes $ 74,142 $ 91,370 $ 15,256 $ (39,159 ) $ 141,609 The Company evaluates performance based on operating income of the respective segments before restructuring and other costs, interest expense, and income taxes. There were no restructuring and other costs incurred in either the first nine months of 2019 or 2018. In July 2018, the Company completed the acquisition of Mazza Innovation Limited Acquisitions 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 tables display the Company’s revenue by these major sources. Product Lines (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended September 30, 2019 : Flavors $ 89,604 $ - $ - $ 89,604 Natural Ingredients 53,220 - - 53,220 Fragrances 24,753 - - 24,753 Food & Beverage Colors - 73,383 - 73,383 Cosmetics - 32,080 - 32,080 Other Colors - 21,542 - 21,542 Asia Pacific - - 30,125 30,125 Intersegment Revenue (3,707 ) (3,295 ) (55 ) (7,057 ) Total revenue from external customers $ 163,870 $ 123,710 $ 30,070 $ 317,650 Three months ended September 30, 2018 : Flavors $ 98,060 $ - $ - $ 98,060 Natural Ingredients 58,140 - - 58,140 Fragrances 28,197 - - 28,197 Food & Beverage Colors - 76,524 - 76,524 Cosmetics - 35,466 - 35,466 Other Colors - 23,140 - 23,140 Asia Pacific - - 31,275 31,275 Intersegment Revenue (5,294 ) (2,774 ) - (8,068 ) Total revenue from external customers $ 179,103 $ 132,356 $ 31,275 $ 342,734 Product Lines (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Nine months ended September 30, 2019 : Flavors $ 295,375 $ - $ - $ 295,375 Natural Ingredients 156,864 - - 156,864 Fragrances 79,025 - - 79,025 Food & Beverage Colors - 233,121 - 233,121 Cosmetics - 106,218 - 106,218 Other Colors - 70,457 - 70,457 Asia Pacific - - 87,646 87,646 Intersegment Revenue (14,116 ) (10,186 ) (55 ) (24,357 ) Total revenue from external customers $ 517,148 $ 399,610 $ 87,591 $ 1,004,349 Nine months ended September 30, 2018 : Flavors $ 322,333 $ - $ - $ 322,333 Natural Ingredients 167,538 - - 167,538 Fragrances 81,530 - - 81,530 Food & Beverage Colors - 230,807 - 230,807 Cosmetics - 121,697 - 121,697 Other Colors - 74,077 - 74,077 Asia Pacific - - 92,063 92,063 Intersegment Revenue (17,998 ) (9,795 ) - (27,793 ) Total revenue from external customers $ 553,403 $ 416,786 $ 92,063 $ 1,062,252 Geographic Markets (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended September 30, 2019 : North America $ 109,659 $ 60,801 $ 25 $ 170,485 Europe 35,964 33,027 132 69,123 Asia Pacific 7,002 12,903 29,731 49,636 Other 11,245 16,979 182 28,406 Total revenue from external customers $ 163,870 $ 123,710 $ 30,070 $ 317,650 Three months ended September 30, 2018 : North America $ 118,690 $ 63,945 $ - $ 182,635 Europe 42,866 34,929 81 77,876 Asia Pacific 7,053 15,910 31,032 53,995 Other 10,494 17,572 162 28,228 Total revenue from external customers $ 179,103 $ 132,356 $ 31,275 $ 342,734 Geographic Markets (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Nine months ended September 30, 2019 : North America $ 335,521 $ 192,109 $ 87 $ 527,717 Europe 125,288 113,844 280 239,412 Asia Pacific 24,041 44,440 86,719 155,200 Other 32,298 49,217 505 82,020 Total revenue from external customers $ 517,148 $ 399,610 $ 87,591 $ 1,004,349 Nine months ended September 30, 2018 : North America $ 364,941 $ 191,265 $ - $ 556,206 Europe 133,257 119,687 111 253,055 Asia Pacific 23,144 50,461 91,327 164,932 Other 32,061 55,373 625 88,059 Total revenue from external customers $ 553,403 $ 416,786 $ 92,063 $ 1,062,252 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventories [Abstract] | |
Inventories | 5. Inventories At September 30, 2019, and December 31, 2018, inventories included finished and in-process products totaling $318.7 million and $320.4 million, respectively, and raw materials and supplies of $151.4 million and $170.4 million, respectively. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Plans [Abstract] | |
Retirement Plans | 6. Retirement Plans The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2019 2018 2019 2018 Service cost $ 358 $ 366 $ 1,076 $ 1,100 Interest cost 315 282 954 857 Expected return on plan assets (224 ) (236 ) (684 ) (722 ) Recognized actuarial gain (40 ) (27 ) (118 ) (81 ) Total defined benefit expense $ 409 $ 385 $ 1,228 $ 1,154 The Company’s non-service cost portion of defined benefit expense is recorded in Interest Expense Selling and Administrative Expenses |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 7. Leases The Company leases certain office space, warehouses, land, and equipment under operating lease arrangements. Some of the Company’s leases include options to extend the leases for up to an additional five years. Some of the Company’s lease agreements also include rental payments that are adjusted periodically for inflation (i.e., CPI index). The Company recorded operating lease expense, which includes short-term lease expense and variable lease costs, of and for the and months ended September respectively. For the months ended September the Company paid in cash for operating leases, not including short-term lease expense or variable lease costs. The Company entered into operating leases that resulted in of right-of-use assets in exchange for operating lease obligations for the months ended September The Company included of right-of-use assets in Other Assets and and of operating lease liabilities in Other Accrued Expenses and Other Liabilities , respectively, on the Company’s Consolidated Condensed Balance Sheets as of September The Company’s weighted average remaining operating lease term was years as of September The Company’s weighted average discount rate for operating leases was as of September As of September 30, 2019 , maturities of operating lease liabilities for future annual periods are as follows: (In thousands) Year ending December 31, 2019 $ 2,383 2020 8,133 2021 4,696 2022 2,457 2023 1,474 Thereafter 2,682 Total lease payments 21,825 Less imputed interest (1,762 ) Present value of lease liabilities $ 20,063 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 9 Months Ended |
Sep. 30, 2019 | |
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 in order to reduce the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 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 | 9 Months Ended |
Sep. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income Taxes The effective income tax rates for the months ended September and were and , respectively. For the months ended September and the effective income tax rates were and , respectively. The effective tax rates for the months ended September and were both impacted by changes in estimates associated with the finalization of prior year foreign and domestic tax items, audit settlements, and the mix of foreign earnings. In addition, the effective tax rate for the months ended September was impacted by adjustments to valuation allowances, and the effective tax rate for the months ended September was impacted by an adjustment made to the provisional amount recorded in for the impact of the Tax Cuts and Jobs Act Tax Legislation), the U.S. tax accounting method changes that were filed with the IRS, and the generation of foreign tax credits. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
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 and nine month periods ended September 30, 2019 and 2018: (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at December 31, 2018 $ 147 $ 549 $ (166,251 ) $ (165,555 ) Other comprehensive loss before reclassifications (25 ) - (15,389 ) (15,414 ) Amounts reclassified from OCI (229 ) (112 ) - (341 ) Balances at September 30, 2019 $ (107 ) $ 437 $ (181,640 ) $ (181,310 ) (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at June 30, 2019 $ (58 ) $ 475 $ (163,960 ) $ (163,543 ) Other comprehensive loss before reclassifications (91 ) - (17,680 ) (17,771 ) Amounts reclassified from OCI 42 (38 ) - 4 Balances at September 30, 2019 $ (107 ) $ 437 $ (181,640 ) $ (181,310 ) (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at December 31, 2017 $ (669 ) $ (309 ) $ (148,356 ) $ (149,334 ) Other comprehensive income (loss) before reclassifications 404 - (12,426 ) (12,022 ) Amounts reclassified from OCI 98 (90 ) - 8 Balances at September 30, 2018 $ (167 ) $ (399 ) $ (160,782 ) $ (161,348 ) (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at June 30, 2018 $ (34 ) $ (369 ) $ (161,713 ) $ (162,116 ) Other comprehensive income (loss) before reclassifications (121 ) - 931 810 Amounts reclassified from OCI (12 ) (30 ) - (42 ) Balances at September 30, 2018 $ (167 ) $ (399 ) $ (160,782 ) $ (161,348 ) (a) Cash Flow Hedges and Pension Items are net of tax. |
Accounts Receivable Securitizat
Accounts Receivable Securitization | 9 Months Ended |
Sep. 30, 2019 | |
Accounts Receivable Securitization [Abstract] | |
Accounts Receivable Securitization | 11. Accounts Receivable Securitization The Company is engaged in an accounts receivable securitization program with Wells Fargo Bank N.A. (Wells Fargo). As of September commitment size under the program was $ million. Between October 2016 and June 2018, the Company accounted for sales of trade receivables under the program as a reduction in accounts receivable on the Company’s Consolidated Condensed Balance Sheets in accordance with ASC 860, Transfers and Servicing In June 2018, the Company amended the program. Following the amendment, the Company no longer accounts for sales of trade receivables in accordance with ASC 860, and instead now maintains the trade receivables and related debt on its Consolidated Condensed Balance Sheets. Under the amended program, Wells Fargo has extended a secured loan of up to $70 million to the Company secured by Wells Fargo’s undivided interests in certain of the Company’s trade accounts receivables. As of September 30, 2019, $70 million was borrowed under the program. In October the Company amended this program. See Note Subsequent Events , for additional information. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 12. 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. Agar v. Sensient Natural Ingredients LLC On March 29, 2019, Calvin Agar (Agar), a former employee, filed a Class Action Complaint in Stanislaus County Superior Court against Sensient Natural Ingredients LLC (SNI). On May 22, 2019, Agar filed a First Amended Class Action Complaint against SNI (the Complaint). Agar alleges that SNI improperly reported overtime pay on employees’ wage statements, in violation of the California Labor Code. The Complaint alleges two causes of action, and both concern the wage statements. The Complaint does not allege that SNI failed to pay any overtime due to Agar or any of the putative class or group members. The Complaint merely challenges the manner in which SNI has reported overtime pay on its wage statements. SNI maintains that it has accurately paid Agar and the putative class members for all overtime worked, and that they have not experienced any harm. SNI further maintains that the format of its wage statements does not violate the requirements of state law or any specific guidance from California decisional law, the California Division of Labor Standards Enforcement, or the California Labor Commissioner's Office. Finally, SNI contends that certain of the state law claims are subject to mandatory individual arbitration. SNI filed its Answer and Affirmative Defenses to the Complaint on July 10, 2019. SNI continues to evaluate the developing legal authority on this issue. SNI intends to vigorously defend its interests, absent a reasonable resolution. The parties have agreed to submit this case to mediation, which is currently scheduled for December 11, 2019. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events On October the Company amended its existing accounts receivable securitization program with Wells Fargo to decrease the commitment size from to and extended the expiration date of the program to October On October the Board of Directors approved the sale and a memorandum of understanding for the Global Inks product line, which is within the Color segment. The Company anticipates a sale within the next year. The Company estimates a non-cash net loss between and will be recorded in the months ending December This estimate will be finalized and adjusted as necessary upon the closing of the sale. The Company does not expect cash costs associated with the divestiture to have a material effect on our results of operations or cash flows. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Leases | Leases The Company enters into lease agreements for certain office space, warehouses, land, and equipment in the ordinary course of business. The Company determines if an arrangement is a lease at inception and evaluates the lease classification (i.e., operating lease or financing lease) at that time. Lease arrangements with an initial term of 12 months or less are considered short-term leases and are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the term of the lease. Operating leases are included in Other Assets Other Accrued Expenses Other Liabilities The Company uses its incremental borrowing rate on the commencement date for determining the present value of lease payments. The Company considers the likelihood of exercising options to extend or terminate the lease when determining the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected the practical expedient of accounting for the lease and non-lease components of each lease as a single lease component. |
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 that 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 may 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, that 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, including any hedge ineffectiveness, are deferred in accumulated other comprehensive 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. |
Recently Adopted/Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (Topic 842) Leases (Topic 842) Targeted Improvements 1. The Company will not re-assess an expired or existing contract to determine if it is a lease or contains a lease. 2. The Company will not re-assess the lease classification for an existing lease based on the new standard’s lease classification criteria. 3. The Company will not re-assess the accounting treatment for initial direct costs on existing leases based on the new standard’s guidance. 4. The Company will account for the lease and non-lease components as a single lease component for all leases. The adoption of this standard resulted in the recognition of $20.7 million in right-of-use assets and lease liabilities for operating leases as of January 1, 2019. The adoption of this standard did not have an impact on the Company’s Consolidated Statements of Earnings, or to cash provided by or used in operating, financing, or investing activities on the Company’s Consolidated Statements of Cash Flows. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2018, 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 as discussed above. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 : Revenue from external customers $ 163,870 $ 123,710 $ 30,070 $ - $ 317,650 Intersegment revenue 3,707 3,295 55 - 7,057 Total revenue $ 167,577 $ 127,005 $ 30,125 $ - $ 324,707 Operating income (loss) $ 17,600 $ 23,436 $ 5,406 $ (7,654 ) $ 38,788 Interest expense - - - 4,936 4,936 Earnings (loss) before income taxes $ 17,600 $ 23,436 $ 5,406 $ (12,590 ) $ 33,852 Three months ended September 30, 2018 : Revenue from external customers $ 179,103 $ 132,356 $ 31,275 $ - $ 342,734 Intersegment revenue 5,294 2,774 - - 8,068 Total revenue $ 184,397 $ 135,130 $ 31,275 $ - $ 350,802 Operating income (loss) $ 24,814 $ 26,565 $ 5,750 $ (6,865 ) $ 50,264 Interest expense - - - 5,407 5,407 Earnings (loss) before income taxes $ 24,814 $ 26,565 $ 5,750 $ (12,272 ) $ 44,857 (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated Nine months ended September 30, 2019 : Revenue from external customers $ 517,148 $ 399,610 $ 87,591 $ - $ 1,004,349 Intersegment revenue 14,116 10,186 55 - 24,357 Total revenue $ 531,264 $ 409,796 $ 87,646 $ - $ 1,028,706 Operating income (loss) $ 60,775 $ 81,512 $ 13,825 $ (20,536 ) $ 135,576 Interest expense - - - 15,538 15,538 Earnings (loss) before income taxes $ 60,775 $ 81,512 $ 13,825 $ (36,074 ) $ 120,038 Nine months ended September 30, 2018 : Revenue from external customers $ 553,403 $ 416,786 $ 92,063 $ - $ 1,062,252 Intersegment revenue 17,998 9,795 - - 27,793 Total revenue $ 571,401 $ 426,581 $ 92,063 $ - $ 1,090,045 Operating income (loss) $ 74,142 $ 91,370 $ 15,256 $ (22,642 ) $ 158,126 Interest expense - - - 16,517 16,517 Earnings (loss) before income taxes $ 74,142 $ 91,370 $ 15,256 $ (39,159 ) $ 141,609 |
Product Information | Product Lines (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended September 30, 2019 : Flavors $ 89,604 $ - $ - $ 89,604 Natural Ingredients 53,220 - - 53,220 Fragrances 24,753 - - 24,753 Food & Beverage Colors - 73,383 - 73,383 Cosmetics - 32,080 - 32,080 Other Colors - 21,542 - 21,542 Asia Pacific - - 30,125 30,125 Intersegment Revenue (3,707 ) (3,295 ) (55 ) (7,057 ) Total revenue from external customers $ 163,870 $ 123,710 $ 30,070 $ 317,650 Three months ended September 30, 2018 : Flavors $ 98,060 $ - $ - $ 98,060 Natural Ingredients 58,140 - - 58,140 Fragrances 28,197 - - 28,197 Food & Beverage Colors - 76,524 - 76,524 Cosmetics - 35,466 - 35,466 Other Colors - 23,140 - 23,140 Asia Pacific - - 31,275 31,275 Intersegment Revenue (5,294 ) (2,774 ) - (8,068 ) Total revenue from external customers $ 179,103 $ 132,356 $ 31,275 $ 342,734 (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Nine months ended September 30, 2019 : Flavors $ 295,375 $ - $ - $ 295,375 Natural Ingredients 156,864 - - 156,864 Fragrances 79,025 - - 79,025 Food & Beverage Colors - 233,121 - 233,121 Cosmetics - 106,218 - 106,218 Other Colors - 70,457 - 70,457 Asia Pacific - - 87,646 87,646 Intersegment Revenue (14,116 ) (10,186 ) (55 ) (24,357 ) Total revenue from external customers $ 517,148 $ 399,610 $ 87,591 $ 1,004,349 Nine months ended September 30, 2018 : Flavors $ 322,333 $ - $ - $ 322,333 Natural Ingredients 167,538 - - 167,538 Fragrances 81,530 - - 81,530 Food & Beverage Colors - 230,807 - 230,807 Cosmetics - 121,697 - 121,697 Other Colors - 74,077 - 74,077 Asia Pacific - - 92,063 92,063 Intersegment Revenue (17,998 ) (9,795 ) - (27,793 ) Total revenue from external customers $ 553,403 $ 416,786 $ 92,063 $ 1,062,252 |
Geographical Information | Geographic Markets (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended September 30, 2019 : North America $ 109,659 $ 60,801 $ 25 $ 170,485 Europe 35,964 33,027 132 69,123 Asia Pacific 7,002 12,903 29,731 49,636 Other 11,245 16,979 182 28,406 Total revenue from external customers $ 163,870 $ 123,710 $ 30,070 $ 317,650 Three months ended September 30, 2018 : North America $ 118,690 $ 63,945 $ - $ 182,635 Europe 42,866 34,929 81 77,876 Asia Pacific 7,053 15,910 31,032 53,995 Other 10,494 17,572 162 28,228 Total revenue from external customers $ 179,103 $ 132,356 $ 31,275 $ 342,734 (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Nine months ended September 30, 2019 : North America $ 335,521 $ 192,109 $ 87 $ 527,717 Europe 125,288 113,844 280 239,412 Asia Pacific 24,041 44,440 86,719 155,200 Other 32,298 49,217 505 82,020 Total revenue from external customers $ 517,148 $ 399,610 $ 87,591 $ 1,004,349 Nine months ended September 30, 2018 : North America $ 364,941 $ 191,265 $ - $ 556,206 Europe 133,257 119,687 111 253,055 Asia Pacific 23,144 50,461 91,327 164,932 Other 32,061 55,373 625 88,059 Total revenue from external customers $ 553,403 $ 416,786 $ 92,063 $ 1,062,252 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Plans [Abstract] | |
Annual Benefit Cost | The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2019 2018 2019 2018 Service cost $ 358 $ 366 $ 1,076 $ 1,100 Interest cost 315 282 954 857 Expected return on plan assets (224 ) (236 ) (684 ) (722 ) Recognized actuarial gain (40 ) (27 ) (118 ) (81 ) Total defined benefit expense $ 409 $ 385 $ 1,228 $ 1,154 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Maturities of Operating Lease Liabilities | As of September 30, 2019 , maturities of operating lease liabilities for future annual periods are as follows: (In thousands) Year ending December 31, 2019 $ 2,383 2020 8,133 2021 4,696 2022 2,457 2023 1,474 Thereafter 2,682 Total lease payments 21,825 Less imputed interest (1,762 ) Present value of lease liabilities $ 20,063 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in OCI | The following table summarizes the changes in OCI during the three and nine month periods ended September 30, 2019 and 2018: (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at December 31, 2018 $ 147 $ 549 $ (166,251 ) $ (165,555 ) Other comprehensive loss before reclassifications (25 ) - (15,389 ) (15,414 ) Amounts reclassified from OCI (229 ) (112 ) - (341 ) Balances at September 30, 2019 $ (107 ) $ 437 $ (181,640 ) $ (181,310 ) (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at June 30, 2019 $ (58 ) $ 475 $ (163,960 ) $ (163,543 ) Other comprehensive loss before reclassifications (91 ) - (17,680 ) (17,771 ) Amounts reclassified from OCI 42 (38 ) - 4 Balances at September 30, 2019 $ (107 ) $ 437 $ (181,640 ) $ (181,310 ) (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at December 31, 2017 $ (669 ) $ (309 ) $ (148,356 ) $ (149,334 ) Other comprehensive income (loss) before reclassifications 404 - (12,426 ) (12,022 ) Amounts reclassified from OCI 98 (90 ) - 8 Balances at September 30, 2018 $ (167 ) $ (399 ) $ (160,782 ) $ (161,348 ) (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at June 30, 2018 $ (34 ) $ (369 ) $ (161,713 ) $ (162,116 ) Other comprehensive income (loss) before reclassifications (121 ) - 931 810 Amounts reclassified from OCI (12 ) (30 ) - (42 ) Balances at September 30, 2018 $ (167 ) $ (399 ) $ (160,782 ) $ (161,348 ) (a) Cash Flow Hedges and Pension Items are net of tax. |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Right of use assets | $ 20,100 | |
Lease liabilities | $ 20,063 | |
ASU 2016-02 [Member] | ||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Right of use assets | $ 20,700 | |
Lease liabilities | $ 20,700 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Jul. 10, 2018 | Mar. 09, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Acquisition [Abstract] | |||||
Acquisition of new businesses | $ 0 | $ (31,100) | |||
Goodwill | $ 406,053 | $ 416,175 | |||
Globe Natural [Member] | |||||
Acquisition [Abstract] | |||||
Acquisition of new businesses | $ (10,800) | ||||
Net assets acquired | 1,400 | ||||
Goodwill | 7,400 | ||||
Globe Natural [Member] | Customer Relationships [Member] | |||||
Acquisition [Abstract] | |||||
Intangibles assets acquired | $ 2,000 | ||||
Mazza Innovation Limited [Member] | |||||
Acquisition [Abstract] | |||||
Acquisition of new businesses | $ (19,800) | ||||
Net assets acquired | 4,000 | ||||
Goodwill | 8,900 | ||||
Mazza Innovation Limited [Member] | Technological Know-how [Member] | |||||
Acquisition [Abstract] | |||||
Intangibles assets acquired | $ 6,900 |
Fair Value (Details)
Fair Value (Details) - Level 2 [Member] $ in Millions | Sep. 30, 2019USD ($) |
Carrying Value [Member] | |
Investments, Fair Value Disclosure [Abstract] | |
Long term debt | $ 617 |
Fair Value [Member] | |
Investments, Fair Value Disclosure [Abstract] | |
Long term debt | $ 636.3 |
Segment Information, Operating
Segment Information, Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue [Abstract] | ||||
Revenue | $ 317,650 | $ 342,734 | $ 1,004,349 | $ 1,062,252 |
Operating income (loss) | 38,788 | 50,264 | 135,576 | 158,126 |
Interest expense | 4,936 | 5,407 | 15,538 | 16,517 |
Earnings before income taxes | 33,852 | 44,857 | 120,038 | 141,609 |
Flavors & Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 163,870 | 179,103 | 517,148 | 553,403 |
Operating income (loss) | 17,600 | 24,814 | 60,775 | 74,142 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings before income taxes | 17,600 | 24,814 | 60,775 | 74,142 |
Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 123,710 | 132,356 | 399,610 | 416,786 |
Operating income (loss) | 23,436 | 26,565 | 81,512 | 91,370 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings before income taxes | 23,436 | 26,565 | 81,512 | 91,370 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 30,070 | 31,275 | 87,591 | 92,063 |
Operating income (loss) | 5,406 | 5,750 | 13,825 | 15,256 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings before income taxes | 5,406 | 5,750 | 13,825 | 15,256 |
Reportable Segments [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 324,707 | 350,802 | 1,028,706 | 1,090,045 |
Reportable Segments [Member] | Flavors & Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 167,577 | 184,397 | 531,264 | 571,401 |
Reportable Segments [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 127,005 | 135,130 | 409,796 | 426,581 |
Reportable Segments [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 30,125 | 31,275 | 87,646 | 92,063 |
Intersegment Revenue [Member] | ||||
Revenue [Abstract] | ||||
Revenue | (7,057) | (8,068) | (24,357) | (27,793) |
Intersegment Revenue [Member] | Flavors & Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | (3,707) | (5,294) | (14,116) | (17,998) |
Intersegment Revenue [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | (3,295) | (2,774) | (10,186) | (9,795) |
Intersegment Revenue [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | (55) | 0 | (55) | 0 |
Corporate & Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating income (loss) | (7,654) | (6,865) | (20,536) | (22,642) |
Interest expense | 4,936 | 5,407 | 15,538 | 16,517 |
Earnings before income taxes | $ (12,590) | $ (12,272) | $ (36,074) | $ (39,159) |
Segment Information, Revenue fr
Segment Information, Revenue from External Customers by Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue [Abstract] | ||||
Revenue | $ 317,650 | $ 342,734 | $ 1,004,349 | $ 1,062,252 |
Flavors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 89,604 | 98,060 | 295,375 | 322,333 |
Natural Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 53,220 | 58,140 | 156,864 | 167,538 |
Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 24,753 | 28,197 | 79,025 | 81,530 |
Food & Beverage Colors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 73,383 | 76,524 | 233,121 | 230,807 |
Cosmetics [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 32,080 | 35,466 | 106,218 | 121,697 |
Other Colors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 21,542 | 23,140 | 70,457 | 74,077 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 30,125 | 31,275 | 87,646 | 92,063 |
Flavors & Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 163,870 | 179,103 | 517,148 | 553,403 |
Flavors & Fragrances [Member] | Flavors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 89,604 | 98,060 | 295,375 | 322,333 |
Flavors & Fragrances [Member] | Natural Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 53,220 | 58,140 | 156,864 | 167,538 |
Flavors & Fragrances [Member] | Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 24,753 | 28,197 | 79,025 | 81,530 |
Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 123,710 | 132,356 | 399,610 | 416,786 |
Color [Member] | Food & Beverage Colors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 73,383 | 76,524 | 233,121 | 230,807 |
Color [Member] | Cosmetics [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 32,080 | 35,466 | 106,218 | 121,697 |
Color [Member] | Other Colors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 21,542 | 23,140 | 70,457 | 74,077 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 30,070 | 31,275 | 87,591 | 92,063 |
Asia Pacific [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 30,125 | 31,275 | 87,646 | 92,063 |
Intersegment Revenue [Member] | ||||
Revenue [Abstract] | ||||
Revenue | (7,057) | (8,068) | (24,357) | (27,793) |
Intersegment Revenue [Member] | Flavors & Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | (3,707) | (5,294) | (14,116) | (17,998) |
Intersegment Revenue [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | (3,295) | (2,774) | (10,186) | (9,795) |
Intersegment Revenue [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | $ (55) | $ 0 | $ (55) | $ 0 |
Segment Information, Revenue _2
Segment Information, Revenue from External Customers by Geographic Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue [Abstract] | ||||
Revenue | $ 317,650 | $ 342,734 | $ 1,004,349 | $ 1,062,252 |
North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 170,485 | 182,635 | 527,717 | 556,206 |
Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 69,123 | 77,876 | 239,412 | 253,055 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 49,636 | 53,995 | 155,200 | 164,932 |
Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 28,406 | 28,228 | 82,020 | 88,059 |
Flavors & Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 163,870 | 179,103 | 517,148 | 553,403 |
Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 123,710 | 132,356 | 399,610 | 416,786 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 30,070 | 31,275 | 87,591 | 92,063 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 109,659 | 118,690 | 335,521 | 364,941 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 35,964 | 42,866 | 125,288 | 133,257 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 7,002 | 7,053 | 24,041 | 23,144 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 11,245 | 10,494 | 32,298 | 32,061 |
Reportable Geographical Components [Member] | Color [Member] | North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 60,801 | 63,945 | 192,109 | 191,265 |
Reportable Geographical Components [Member] | Color [Member] | Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 33,027 | 34,929 | 113,844 | 119,687 |
Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 12,903 | 15,910 | 44,440 | 50,461 |
Reportable Geographical Components [Member] | Color [Member] | Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 16,979 | 17,572 | 49,217 | 55,373 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 25 | 0 | 87 | 0 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 132 | 81 | 280 | 111 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 29,731 | 31,032 | 86,719 | 91,327 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | $ 182 | $ 162 | $ 505 | $ 625 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Inventories, including finished and in-process products | $ 318.7 | $ 320.4 |
Raw materials and supplies | $ 151.4 | $ 170.4 |
Retirement Plans (Details)
Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 358 | $ 366 | $ 1,076 | $ 1,100 |
Interest cost | 315 | 282 | 954 | 857 |
Expected return on plan assets | (224) | (236) | (684) | (722) |
Recognized actuarial gain | (40) | (27) | (118) | (81) |
Total defined benefit expense | $ 409 | $ 385 | $ 1,228 | $ 1,154 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Extended lease term | 5 years | 5 years |
Operating lease expense | $ 2,700 | $ 8,500 |
Cash paid for operating leases | 7,400 | |
Right-of-use assets in exchange for operating lease obligations | 6,500 | |
Right of use assets | 20,100 | 20,100 |
Operating lease, other accrued expenses | 8,000 | 8,000 |
Operating lease, other liabilities | $ 12,100 | $ 12,100 |
Weighted average remaining operating lease term | 3 years 7 months 6 days | 3 years 7 months 6 days |
Weighted average discount rate for operating leases | 4.50% | 4.50% |
Maturities of Operating Lease Liabilities [Abstract] | ||
2019 | $ 2,383 | $ 2,383 |
2020 | 8,133 | 8,133 |
2021 | 4,696 | 4,696 |
2022 | 2,457 | 2,457 |
2023 | 1,474 | 1,474 |
Thereafter | 2,682 | 2,682 |
Total lease payments | 21,825 | 21,825 |
Less imputed interest | (1,762) | (1,762) |
Present value of lease liabilities | $ 20,063 | $ 20,063 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
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 | $ 22.5 | $ 22.5 | $ 76 |
Foreign Currency Denominated Debt, Net Investment Hedging [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Carrying value of foreign denominated debt | 350.2 | 350.2 | $ 366.5 |
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ (14) | $ (16.3) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Abstract] | ||||
Effective income tax rates for continuing operations | 5.90% | (5.20%) | 17.50% | 12.10% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 897,482 | $ 816,429 | $ 859,947 | $ 852,301 | |
Other comprehensive income (loss) before reclassifications | (17,771) | 810 | (15,414) | (12,022) | |
Amounts reclassified from OCI | 4 | (42) | (341) | 8 | |
Ending balance | 896,673 | 846,169 | 896,673 | 846,169 | |
Accumulated Other Comprehensive (Loss) Income [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (163,543) | (162,116) | (165,555) | (149,334) | |
Ending balance | (181,310) | (161,348) | (181,310) | (161,348) | |
Cash Flow Hedges [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | (58) | (34) | 147 | (669) |
Other comprehensive income (loss) before reclassifications | [1] | (91) | (121) | (25) | 404 |
Amounts reclassified from OCI | [1] | 42 | (12) | (229) | 98 |
Ending balance | [1] | (107) | (167) | (107) | (167) |
Pension Items [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | 475 | (369) | 549 | (309) |
Other comprehensive income (loss) before reclassifications | [1] | 0 | 0 | 0 | 0 |
Amounts reclassified from OCI | [1] | (38) | (30) | (112) | (90) |
Ending balance | [1] | 437 | (399) | 437 | (399) |
Foreign Currency Items [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (163,960) | (161,713) | (166,251) | (148,356) | |
Other comprehensive income (loss) before reclassifications | (17,680) | 931 | (15,389) | (12,426) | |
Amounts reclassified from OCI | 0 | 0 | 0 | 0 | |
Ending balance | $ (181,640) | $ (160,782) | $ (181,640) | $ (160,782) | |
[1] | Cash Flow Hedges and Pension Items are net of tax. |
Accounts Receivable Securitiz_2
Accounts Receivable Securitization (Details) $ in Millions | Sep. 30, 2019USD ($) |
Accounts Receivable Securitization [Abstract] | |
Accounts receivable securitization program commitment amount | $ 70 |
Maximum borrowing capacity, secured loan | 70 |
Credit facility, borrowings outstanding | $ 70 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Oct. 02, 2019 | Sep. 30, 2019 | |
Subsequent Events [Abstract] | |||
Accounts receivable securitization program commitment amount | $ 70 | ||
Forecast [Member] | Minimum [Member] | |||
Subsequent Events [Abstract] | |||
Non-cash net loss | $ (10) | ||
Forecast [Member] | Maximum [Member] | |||
Subsequent Events [Abstract] | |||
Non-cash net loss | $ (12) | ||
Subsequent Event [Member] | |||
Subsequent Events [Abstract] | |||
Accounts receivable securitization program commitment amount | $ 65 |