Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
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 | 42,357,694 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract] | ||
Revenue | $ 350,677 | $ 347,513 |
Cost of products sold | 238,784 | 232,288 |
Selling and administrative expenses | 77,332 | 65,805 |
Operating income | 34,561 | 49,420 |
Interest expense | 4,307 | 5,402 |
Earnings before income taxes | 30,254 | 44,018 |
Income taxes | 9,481 | 11,211 |
Net earnings | $ 20,773 | $ 32,807 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 42,284 | 42,239 |
Diluted (in shares) | 42,307 | 42,275 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.49 | $ 0.78 |
Diluted (in dollars per share) | 0.49 | 0.78 |
Dividends declared per common share (in dollars per share) | $ 0.39 | $ 0.36 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||
Comprehensive (loss) income | $ (23,580) | $ 32,091 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 23,085 | $ 21,153 |
Trade accounts receivable, net | 240,123 | 213,201 |
Inventories | 384,157 | 422,517 |
Prepaid expenses and other current assets | 38,768 | 40,049 |
Assets held for sale | 78,612 | 91,293 |
TOTAL CURRENT ASSETS | 764,745 | 788,213 |
OTHER ASSETS | 82,367 | 80,939 |
DEFERRED TAX ASSETS | 10,741 | 14,976 |
INTANGIBLE ASSETS, NET | 11,463 | 11,802 |
GOODWILL | 400,515 | 407,042 |
PROPERTY, PLANT, AND EQUIPMENT: | ||
Land | 30,078 | 31,431 |
Buildings | 293,331 | 298,733 |
Machinery and equipment | 645,866 | 652,063 |
Construction in progress | 25,328 | 24,613 |
Property, plant, and equipment, gross | 994,603 | 1,006,840 |
Less accumulated depreciation | (571,608) | (569,661) |
Property, plant, and equipment, net | 422,995 | 437,179 |
TOTAL ASSETS | 1,692,826 | 1,740,151 |
CURRENT LIABILITIES: | ||
Trade accounts payable | 91,437 | 94,653 |
Accrued salaries, wages, and withholdings from employees | 19,724 | 18,655 |
Other accrued expenses | 41,140 | 41,429 |
Income taxes | 8,410 | 6,841 |
Short-term borrowings | 20,105 | 20,612 |
Liabilities held for sale | 19,821 | 19,185 |
TOTAL CURRENT LIABILITIES | 200,637 | 201,375 |
DEFERRED TAX LIABILITIES | 14,511 | 15,053 |
OTHER LIABILITIES | 20,224 | 17,813 |
ACCRUED EMPLOYEE AND RETIREE BENEFITS | 25,457 | 25,822 |
LONG-TERM DEBT | 589,339 | 598,499 |
SHAREHOLDERS' EQUITY: | ||
Common stock | 5,396 | 5,396 |
Additional paid-in capital | 99,080 | 98,425 |
Earnings reinvested in the business | 1,539,520 | 1,536,100 |
Treasury stock, at cost | (593,977) | (595,324) |
Accumulated other comprehensive loss | (207,361) | (163,008) |
TOTAL SHAREHOLDERS' EQUITY | 842,658 | 881,589 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,692,826 | $ 1,740,151 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net earnings | $ 20,773 | $ 32,807 |
Adjustments to arrive at net cash provided by operating activities: | ||
Depreciation and amortization | 12,404 | 13,672 |
Share-based compensation | 1,177 | 687 |
Net loss (gain) on assets | 14 | (41) |
Loss on divestitures | 10,558 | 0 |
Deferred income taxes | 4,077 | 2,674 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (41,684) | (19,230) |
Inventories | 29,058 | 22,112 |
Prepaid expenses and other assets | (6,048) | (7,573) |
Accounts payable and other accrued expenses | 2,773 | (21,857) |
Accrued salaries, wages and withholdings from employees | 1,611 | (3,022) |
Income taxes | 1,662 | 2,213 |
Other liabilities | 553 | 982 |
Net cash provided by operating activities | 36,928 | 23,424 |
Cash flows from investing activities: | ||
Acquisition of property, plant, and equipment | (9,411) | (8,300) |
Proceeds from sale of assets | 6 | 45 |
Other investing activities | 4,505 | (301) |
Net cash used in investing activities | (4,900) | (8,556) |
Cash flows from financing activities: | ||
Proceeds from additional borrowings | 9,669 | 16,689 |
Debt payments | (11,104) | (12,577) |
Dividends paid | (16,500) | (15,218) |
Other financing activities | (249) | (803) |
Net cash used in financing activities | (18,184) | (11,909) |
Effect of exchange rate changes on cash and cash equivalents | (11,912) | (964) |
Net increase in cash and cash equivalents | 1,932 | 1,995 |
Cash and cash equivalents at beginning of period | 21,153 | 31,901 |
Cash and cash equivalents at end of period | $ 23,085 | $ 33,896 |
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, 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 | 32,807 | $ 0 | 0 | 32,807 |
Other comprehensive loss | 0 | 0 | 0 | 0 | (716) | (716) |
Cash dividends paid | 0 | 0 | (15,218) | 0 | 0 | (15,218) |
Share-based compensation | 0 | 687 | 0 | 0 | 0 | 687 |
Non-vested stock issued upon vesting | 0 | (1,784) | 0 | $ 1,784 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (35,016) | |||||
Benefit plans | 0 | 72 | 0 | $ 948 | 0 | 1,020 |
Benefit plans (in shares) | (18,597) | |||||
Other | 0 | (153) | 0 | $ (650) | 0 | (803) |
Other (in shares) | 12,769 | |||||
Ending balance at Mar. 31, 2019 | 5,396 | 100,485 | 1,533,832 | $ (595,718) | (166,271) | 877,724 |
Ending balance (in shares) at Mar. 31, 2019 | 11,690,379 | |||||
Beginning balance at Dec. 31, 2019 | 5,396 | 98,425 | 1,536,100 | $ (595,324) | (163,008) | 881,589 |
Beginning balance (in shares) at Dec. 31, 2019 | 11,682,636 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 20,773 | $ 0 | 0 | 20,773 |
Other comprehensive loss | 0 | 0 | 0 | 0 | (44,353) | (44,353) |
Cash dividends paid | 0 | 0 | (16,500) | 0 | 0 | (16,500) |
Share-based compensation | 0 | 1,177 | 0 | 0 | 0 | 1,177 |
Non-vested stock issued upon vesting | 0 | (724) | 0 | $ 724 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (14,200) | |||||
Benefit plans | 0 | 241 | 0 | $ 833 | 0 | 1,074 |
Benefit plans (in shares) | (16,344) | |||||
Other | 0 | (39) | 0 | $ (210) | 0 | (249) |
Other (in shares) | 4,114 | |||||
Ending balance at Mar. 31, 2020 | 5,396 | 99,080 | 1,539,520 | $ (593,977) | (207,361) | 842,658 |
Ending balance (in shares) at Mar. 31, 2020 | 11,656,206 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of ASU 2016-13 | ASU 2016-13 [Member] | $ 0 | $ 0 | $ (853) | $ 0 | $ 0 | $ (853) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) [Abstract] | ||
Cash dividends per share (in dollars per share) | $ 0.39 | $ 0.36 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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 and the results of operations, comprehensive income, cash flows, and shareholders’ equity for the months ended March and 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 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 Accounts Receivable accounting policy. This policy was updated in the quarter of as a result of the Company’s adoption of Accounting Standards Update (ASU) No. - Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments, and is described below. Accounts Receivable Receivables are recorded at their face amount, less an allowance for losses on doubtful accounts. The allowance for doubtful accounts is based on customer-specific analysis and expected future credit losses based on historical experience, current conditions, and expected future conditions. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible. Recently Adopted Accounting Pronouncements In June the Financial Accounting Standards Board (FASB) issued ASU No. - Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss impairment model with a methodology that reflects expected credit losses. Under the new standard, entities are required to measure expected credit losses on financial instruments held at amortized cost, including trade receivables, based on historical experience, current conditions, and reasonable forecasts. The Company adopted this standard in the quarter of The adoption of this standard resulted in an increase of to the allowance for losses on Trade Accounts Receivable and a corresponding decrease in Earnings Reinvested in the Business as of January The adoption of this standard did not have an impact on the Company’s Consolidated Condensed 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 January the FASB issued ASU No. - Intangibles-Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment , which eliminates step of the current goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. The Company adopted this standard in the quarter of and the adoption did not have a material impact on the Company’s consolidated financial statements. In August the FASB issued ASU No. - Fair Value Measurement (Topic 820) : Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , which changes the requirements for fair value measurements by removing, modifying, and adding certain disclosures. The Company adopted this standard in the quarter of and the adoption did not have a material impact on the Company’s consolidated financial statements or its related disclosures. Recently Issued Accounting Pronouncements In August the FASB issued ASU No. - Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans Subtopic 715 - 20, which amends Accounting Standards Codification (ASC) - Compensation – Retirement Benefits – Defined Benefit Plans – General . This standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The effective date is January with early adoption permitted. The Company is currently evaluating the potential impact of this standard on its disclosures. In March the FASB issued ASU No. - Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative rates. The guidance is effective upon issuance and generally can be applied through December The Company is currently evaluating the potential impact of this standard on its consolidated financial statements and its related disclosures. Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 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. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2020 | |
Divestitures [Abstract] | |
Divestitures | 2. Divestitures In October the Company announced its intent to divest its inks, fragrances (excluding its essential oils product line), and yogurt fruit preparations product lines. In October the Board of Directors approved the sale of the inks product line, which is within the Color segment. The Company has signed a memorandum of understanding with a potential buyer. In November the Board of Directors approved the sale of the fragrances product line (excluding its essential oils product line), which is within the Flavors & Fragrances segment. The Company has signed a memorandum of understanding with a potential buyer. As a result, the Company met all of the assets held for sale criteria for the inks and fragrances disposal groups. The divesting and exit of these products lines does not meet the criteria to be presented as a discontinued operation on the Consolidated Condensed Statements of Earnings. As of March the yogurt fruit preparations product line, which is included in the Flavors & Fragrances segment, did not meet all of the assets held for sale criteria. Subsequent to March the Board of Directors approved the sale of the yogurt fruit preparations product line. See Note Subsequent Events , for further information. The assets and liabilities related to the inks and fragrances product lines are recorded in Assets held for sale and Liabilities held for sale as of March and December as follows: (in thousands) March 31, 2020 December 31, 2019 Assets held for sale: Trade accounts receivable, net $ 34,610 $ 31,653 Inventories 30,104 34,612 Prepaid expenses and other current assets 6,628 5,528 Property, Plant, and Equipment, net 4,643 14,496 Intangible assets, net 2,627 5,004 Assets held for sale $ 78,612 $ 91,293 Liabilities held for sale: Trade accounts payable $ 13,532 $ 12,318 Accrued salaries, wages and withholdings from employees 1,222 1,677 Other accrued expenses 5,067 5,190 Liabilities held for sale $ 19,821 $ 19,185 During the year ended December the Company estimated that the fair value of the inks product line less costs to sell was lower than its carrying value resulting in a non-cash impairment charge of . As of March the Company revised its estimate of the fair value of the inks product line based on indicative bids resulting in an additional non-cash impairment charge of recorded in Selling and Administrative Expenses during the months ended March The charge adjusted the carrying value of certain long-lived assets, primarily property, plant, and equipment, intangible assets and allocated goodwill, to their estimated fair value. This estimate will be finalized and adjusted as necessary upon the closing of the sale or as estimates change. In addition, the Company currently estimates a non-cash gain of to upon closing the transaction related to the reclassification of accumulated foreign currency translation and related items from Accumulated Other Comprehensive Loss to Selling and Administrative Expenses in the Consolidated Condensed Statements of Earnings. During the year ended December the Company estimated that the fair value of the fragrances product line less costs to sell was lower than its carrying value resulting in a non-cash impairment charge of . As of March the Company revised its estimate of the fair value of the fragrances product line based on indicative bids resulting in an additional non-cash impairment charge of recorded in Selling and Administrative Expenses during the months ended March The charge adjusted the carrying value of certain long-lived assets, primarily property, plant and equipment and allocated goodwill, to their estimated fair value. This estimate will be finalized and adjusted as necessary upon the closing of the sale or as estimates change. In addition, the Company currently estimates an additional non-cash charge of to upon closing related to the reclassification of accumulated foreign currency translation and related items from Accumulated Other Comprehensive Loss (OCI) to Selling and Administrative Expenses in the Consolidated Condensed Statement of Earnings. In March the Company was notified by a potential buyer of the Company’s fragrances product line that environmental sampling conducted at the Company’s Granada, Spain, location had identified the presence of contaminants in soil and groundwater in certain areas of the property. The Company is in the process of conducting its own environmental investigation to confirm the presence and extent of these contaminants and plans to perform a quantitative risk assessment to determine whether or what remedial action is required under Spanish law. At the conclusion of this work, if necessary, the Company intends to report any confirmed contamination, along with a remediation plan to address the contamination, if necessary, to the relevant Spanish authorities. Due to the impacts of COVID- in Spain, the Company has not been able to conduct a quantitative assessment of the issues identified in the environmental sampling. Consequently, the Company is unable to quantify any potential remediation costs at this time. The Company also incurred of other divestiture and exit related costs, primarily severance and legal expenses, and of non-cash expenses charge related to other exit activities in the period ended March which is recorded in Selling and Administrative Expenses . Also during the period, the Company recorded a non-cash charge of in Costs of Products Sold related to the value of certain inventories. Excluding any potential remediation costs associated with the Granada, Spain, location of the fragrances product line, which the Company is unable to quantify at this time as discussed above, the Company expects total cash costs in and associated with the anticipated divestitures of all product lines to be between and , primarily related to severance and other exit activities. |
Trade Accounts Receivable
Trade Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Trade Accounts Receivable [Abstract] | |
Trade Accounts Receivable | 3. Trade Accounts Receivable Trade accounts receivables are recorded at their face amount, less an allowance for expected losses on doubtful accounts. The allowance for doubtful accounts is calculated based on customer-specific analysis and an aging methodology using historical loss information. The Company believes historical loss information is a reasonable basis for expected credit losses as the Company’s historical credit loss experience correlates with its customer delinquency status. This information is also adjusted for any known current economic conditions including the current and expected impact of COVID- Currently, the COVID- pandemic is not anticipated to have a material impact on trade accounts receivable. Forecasted economic conditions do not have a significant impact on the current credit loss estimate due to the short-term nature of the Company’s customer receivables, however, the Company will continue to monitor and evaluate the rapidly changing economic conditions. Additionally, as the Company only has portfolio segment, there are not different risks between portfolios. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible. The following table summarizes the changes in the allowance for doubtful accounts during the month period ended March : (In thousands) Allowance for Doubtful Accounts Balance at December $ 6,913 Adoption of ASU - 853 Provision for expected credit losses 240 Accounts written off (336 ) Translation and other activity (643 ) Balance at March $ 7,027 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventories [Abstract] | |
Inventories | 4. Inventories At March 31, 2020, and December 31, 2019, inventories included finished and in-process products totaling $282.9 million and $313.1 million, respectively, and raw materials and supplies of $101.3 million and $109.4 million, respectively. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value [Abstract] | |
Fair Value | 5. Fair Value ASC 820, Fair Value Measurement During the fourth quarter of 2019, the Company met the assets held for sale criteria for its inks and fragrances product lines. During the first quarter of 2020, the estimated fair value of the disposal groups was updated to $59.0 million, resulting in the recording of an additional impairment of $9.7 million in the three months ended March 31, 2020. The fair value of these product lines were determined based on indicative bids, which are classified as Level 3 inputs in the fair value measurement hierarchy. See Note 2, Divestitures |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information [Abstract] | |
Segment Information | 6. 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, 2020 : Revenue from external customers $ 181,187 $ 139,193 $ 30,297 $ - $ 350,677 Intersegment revenue 5,311 4,302 152 - 9,765 Total revenue $ 186,498 $ 143,495 $ 30,449 $ - $ 360,442 Operating income (loss) $ 20,871 $ 29,664 $ 5,059 $ (21,033 ) $ 34,561 Interest expense - - - 4,307 4,307 Earnings (loss) before income taxes $ 20,871 $ 29,664 $ 5,059 $ (25,340 ) $ 30,254 Three months ended March 31, 2019 : Revenue from external customers $ 178,744 $ 140,250 $ 28,519 $ - $ 347,513 Intersegment revenue 4,809 3,629 - - 8,438 Total revenue $ 183,553 $ 143,879 $ 28,519 $ - $ 355,951 Operating income (loss) $ 23,125 $ 30,199 $ 4,218 $ (8,122 ) $ 49,420 Interest expense - - - 5,402 5,402 Earnings (loss) before income taxes $ 23,125 $ 30,199 $ 4,218 $ (13,524 ) $ 44,018 The Company evaluates performance based on operating income before divestiture and other related costs, restructuring and other charges, interest expense, and income taxes (segment operating income). Total revenue and segment operating income by business segment and geographic region include both sales to customers, as reported in the Company’s Consolidated Condensed Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation. The 2020 divestiture and other related costs, which pertain to the anticipated divestitures of the Company’s inks, fragrances (excluding its essential oils product line), and yogurt fruit preparations product lines, are reported in Corporate & Other. There were no divestiture and other related costs or restructuring and other costs in the first three months of 2019. 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. During the first quarter of 2020, the Company updated its product line disclosures as a result of its previous announcement regarding its intent to divest its inks, fragrances (excluding its essential oils product line), and yogurt fruit preparations product lines. Flavors, Extracts & Flavor Ingredients now includes essential oils, which was previously reported in Fragrances. Fragrances now only includes the aroma chemicals and fragrance compounds product lines. Yogurt Fruit Preparations is now disclosed separately; previously it was reported in the Flavors product line. Food & Beverage Colors now includes pharmaceutical colors and natural extraction, which were previously reported in Other Colors. Personal Care includes cosmetic and non-food colors. Inks is now disclosed separately; previously it was reported in Other Colors. The results for 2019 have been restated to reflect these changes. Product Lines (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended March 31, 2020 : Flavors, Extracts & Flavor Ingredients $ 101,453 $ - $ - $ 101,453 Natural Ingredients 57,600 - - 57,600 Fragrances 22,284 - - 22,284 Yogurt Fruit Preparations 5,161 - - 5,161 Food & Beverage Colors - 90,793 - 90,793 Personal Care - 43,743 - 43,743 Inks - 8,959 - 8,959 Asia Pacific - - 30,449 30,449 Intersegment Revenue (5,311 ) (4,302 ) (152 ) (9,765 ) Total revenue from external customers $ 181,187 $ 139,193 $ 30,297 $ 350,677 Three months ended March 31, 2019 : Flavors, Extracts & Flavor Ingredients $ 103,528 $ - $ - $ 103,528 Natural Ingredients 51,219 - - 51,219 Fragrances 23,267 - - 23,267 Yogurt Fruit Preparations 5,539 - - 5,539 Food & Beverage Colors - 88,848 - 88,848 Personal Care - 44,921 - 44,921 Inks - 10,110 - 10,110 Asia Pacific - - 28,519 28,519 Intersegment Revenue (4,809 ) (3,629 ) - (8,438 ) Total revenue from external customers $ 178,744 $ 140,250 $ 28,519 $ 347,513 Geographic Markets (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended March 31, 2020 : North America $ 116,701 $ 66,265 $ - $ 182,966 Europe 43,877 38,738 22 82,637 Asia Pacific 9,355 15,975 29,122 54,452 Other 11,254 18,215 1,153 30,622 Total revenue from external customers $ 181,187 $ 139,193 $ 30,297 $ 350,677 Three months ended March 31, 2019 : North America $ 112,747 $ 66,007 $ 25 $ 178,779 Europe 48,001 42,135 41 90,177 Asia Pacific 7,609 16,425 28,266 52,300 Other 10,387 15,683 187 26,257 Total revenue from external customers $ 178,744 $ 140,250 $ 28,519 $ 347,513 |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Plans [Abstract] | |
Retirement Plans | 7. 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) 2020 2019 Service cost $ 400 $ 359 Interest cost 256 320 Expected return on plan assets (209 ) (231 ) Recognized actuarial loss (gain) 16 (39 ) Total defined benefit expense $ 463 $ 409 The Company’s non-service cost portion of defined benefit expense is recorded in Interest Expense Selling and Administrative Expenses |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 3 Months Ended |
Mar. 31, 2020 | |
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 – Certain forward exchange contracts have been designated as cash flow hedges. The Company had $ million and $ million of forward exchange contracts designated as cash flow hedges outstanding as of March 31, 2020, and December 31, 2019, respectively. For the three months ended March 31, 2020 and 2019, the amounts reclassified into net earnings in the Company’s Consolidated Condensed Statement of Earnings that offset the earnings in the same period were not material. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges. The results of these transactions were not material to the financial statements. Net investment hedges |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income Taxes The effective income tax rates for the months ended March 31, 2020 and were and , respectively. The effective tax rates for the thre months ended March 31, 2020 and were both impacted by changes in estimates associated with the finalization of prior year foreign tax items, audit settlements, and the mix of foreign earnings. On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The CARES Act allows for the deferral of income and social security tax payments, a five-year carryback for net operating losses, changes to interest expense and business loss limitation rules, certain new tax credits, and certain new loans and grants to businesses. The Company has reviewed its income tax assumptions and projections in light of the CARES Act and does not expect the CARES Act to materially impact the Company’s income tax expense or projections. As of March 31, 2020, the Company was considering the option to defer future tax payments (income taxes and certain payroll taxes) in accordance with the CARES Act. Subsequent to March 31, 2020, the Company has decided to defer certain tax payments in accordance with the CARES Act. The Company will continue to evaluate the CARES Act for opportunities as additional information is released on the CARES Act. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
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 periods ended March 31, 2020 and 2019: (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at December 31, 2019 $ (199 ) $ (672 ) $ (162,137 ) $ (163,008 ) Other comprehensive loss before reclassifications (1,865 ) - (42,925 ) (44,790 ) Amounts reclassified from OCI 429 8 - 437 Balances at March 31, 2020 $ (1,635 ) $ (664 ) $ (205,062 ) $ (207,361 ) (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 income (loss) before reclassifications 597 - (1,164 ) (567 ) Amounts reclassified from OCI (112 ) (37 ) - (149 ) Balances at March 31, 2019 $ 632 $ 512 $ (167,415 ) $ (166,271 ) (a) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies 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, both of which 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 contended 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. The parties participated in an early mediation in the case in December 2019, which was not successful. On March 17, 2020, the Court granted Agar leave to file a Second Amended Complaint, which removed the claim that SNI had asserted was subject to mandatory individual arbitration. SNI filed a Demurrer to the Second Amended Complaint, seeking dismissal of the remaining claim, on May 1, 2020. SNI continues to evaluate the developing legal authority on this issue. SNI intends to vigorously defend its interests, absent a reasonable resolution. Other Claims The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period. Refer to Note 2, Divestitures |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events On April the Board of Directors approved the sale of the yogurt fruit preparations product line. The Company has signed a memorandum of understanding with a potential buyer. The Company estimates a non-cash impairment charge of to will be recorded related to the sale. The Company anticipates that it will the sale and exit activities of this product line within the year. On the Company announced its quarterly dividend of cents per share would be payable on . |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounts Receivable | Accounts Receivable Receivables are recorded at their face amount, less an allowance for losses on doubtful accounts. The allowance for doubtful accounts is based on customer-specific analysis and expected future credit losses based on historical experience, current conditions, and expected future conditions. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible. |
Recently Adopted/Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June the Financial Accounting Standards Board (FASB) issued ASU No. - Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss impairment model with a methodology that reflects expected credit losses. Under the new standard, entities are required to measure expected credit losses on financial instruments held at amortized cost, including trade receivables, based on historical experience, current conditions, and reasonable forecasts. The Company adopted this standard in the quarter of The adoption of this standard resulted in an increase of to the allowance for losses on Trade Accounts Receivable and a corresponding decrease in Earnings Reinvested in the Business as of January The adoption of this standard did not have an impact on the Company’s Consolidated Condensed 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 January the FASB issued ASU No. - Intangibles-Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment , which eliminates step of the current goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. The Company adopted this standard in the quarter of and the adoption did not have a material impact on the Company’s consolidated financial statements. In August the FASB issued ASU No. - Fair Value Measurement (Topic 820) : Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , which changes the requirements for fair value measurements by removing, modifying, and adding certain disclosures. The Company adopted this standard in the quarter of and the adoption did not have a material impact on the Company’s consolidated financial statements or its related disclosures. Recently Issued Accounting Pronouncements In August the FASB issued ASU No. - Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans Subtopic 715 - 20, which amends Accounting Standards Codification (ASC) - Compensation – Retirement Benefits – Defined Benefit Plans – General . This standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The effective date is January with early adoption permitted. The Company is currently evaluating the potential impact of this standard on its disclosures. In March the FASB issued ASU No. - Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative rates. The guidance is effective upon issuance and generally can be applied through December The Company is currently evaluating the potential impact of this standard on its consolidated financial statements and its related disclosures. Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 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. |
Divestitures (Tables)
Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Divestitures [Abstract] | |
Assets and Liabilities Held for Sale | The assets and liabilities related to the inks and fragrances product lines are recorded in Assets held for sale and Liabilities held for sale as of March and December as follows: (in thousands) March 31, 2020 December 31, 2019 Assets held for sale: Trade accounts receivable, net $ 34,610 $ 31,653 Inventories 30,104 34,612 Prepaid expenses and other current assets 6,628 5,528 Property, Plant, and Equipment, net 4,643 14,496 Intangible assets, net 2,627 5,004 Assets held for sale $ 78,612 $ 91,293 Liabilities held for sale: Trade accounts payable $ 13,532 $ 12,318 Accrued salaries, wages and withholdings from employees 1,222 1,677 Other accrued expenses 5,067 5,190 Liabilities held for sale $ 19,821 $ 19,185 |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Trade Accounts Receivable [Abstract] | |
Changes in Allowance for Doubtful Accounts | The following table summarizes the changes in the allowance for doubtful accounts during the month period ended March : (In thousands) Allowance for Doubtful Accounts Balance at December $ 6,913 Adoption of ASU - 853 Provision for expected credit losses 240 Accounts written off (336 ) Translation and other activity (643 ) Balance at March $ 7,027 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 : Revenue from external customers $ 181,187 $ 139,193 $ 30,297 $ - $ 350,677 Intersegment revenue 5,311 4,302 152 - 9,765 Total revenue $ 186,498 $ 143,495 $ 30,449 $ - $ 360,442 Operating income (loss) $ 20,871 $ 29,664 $ 5,059 $ (21,033 ) $ 34,561 Interest expense - - - 4,307 4,307 Earnings (loss) before income taxes $ 20,871 $ 29,664 $ 5,059 $ (25,340 ) $ 30,254 Three months ended March 31, 2019 : Revenue from external customers $ 178,744 $ 140,250 $ 28,519 $ - $ 347,513 Intersegment revenue 4,809 3,629 - - 8,438 Total revenue $ 183,553 $ 143,879 $ 28,519 $ - $ 355,951 Operating income (loss) $ 23,125 $ 30,199 $ 4,218 $ (8,122 ) $ 49,420 Interest expense - - - 5,402 5,402 Earnings (loss) before income taxes $ 23,125 $ 30,199 $ 4,218 $ (13,524 ) $ 44,018 |
Product Information | Product Lines (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended March 31, 2020 : Flavors, Extracts & Flavor Ingredients $ 101,453 $ - $ - $ 101,453 Natural Ingredients 57,600 - - 57,600 Fragrances 22,284 - - 22,284 Yogurt Fruit Preparations 5,161 - - 5,161 Food & Beverage Colors - 90,793 - 90,793 Personal Care - 43,743 - 43,743 Inks - 8,959 - 8,959 Asia Pacific - - 30,449 30,449 Intersegment Revenue (5,311 ) (4,302 ) (152 ) (9,765 ) Total revenue from external customers $ 181,187 $ 139,193 $ 30,297 $ 350,677 Three months ended March 31, 2019 : Flavors, Extracts & Flavor Ingredients $ 103,528 $ - $ - $ 103,528 Natural Ingredients 51,219 - - 51,219 Fragrances 23,267 - - 23,267 Yogurt Fruit Preparations 5,539 - - 5,539 Food & Beverage Colors - 88,848 - 88,848 Personal Care - 44,921 - 44,921 Inks - 10,110 - 10,110 Asia Pacific - - 28,519 28,519 Intersegment Revenue (4,809 ) (3,629 ) - (8,438 ) Total revenue from external customers $ 178,744 $ 140,250 $ 28,519 $ 347,513 |
Geographical Information | Geographic Markets (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended March 31, 2020 : North America $ 116,701 $ 66,265 $ - $ 182,966 Europe 43,877 38,738 22 82,637 Asia Pacific 9,355 15,975 29,122 54,452 Other 11,254 18,215 1,153 30,622 Total revenue from external customers $ 181,187 $ 139,193 $ 30,297 $ 350,677 Three months ended March 31, 2019 : North America $ 112,747 $ 66,007 $ 25 $ 178,779 Europe 48,001 42,135 41 90,177 Asia Pacific 7,609 16,425 28,266 52,300 Other 10,387 15,683 187 26,257 Total revenue from external customers $ 178,744 $ 140,250 $ 28,519 $ 347,513 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, (In thousands) 2020 2019 Service cost $ 400 $ 359 Interest cost 256 320 Expected return on plan assets (209 ) (231 ) Recognized actuarial loss (gain) 16 (39 ) Total defined benefit expense $ 463 $ 409 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in OCI | The following table summarizes the changes in OCI during the three month periods ended March 31, 2020 and 2019: (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at December 31, 2019 $ (199 ) $ (672 ) $ (162,137 ) $ (163,008 ) Other comprehensive loss before reclassifications (1,865 ) - (42,925 ) (44,790 ) Amounts reclassified from OCI 429 8 - 437 Balances at March 31, 2020 $ (1,635 ) $ (664 ) $ (205,062 ) $ (207,361 ) (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 income (loss) before reclassifications 597 - (1,164 ) (567 ) Amounts reclassified from OCI (112 ) (37 ) - (149 ) Balances at March 31, 2019 $ 632 $ 512 $ (167,415 ) $ (166,271 ) (a) |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Allowance for losses on trade accounts receivable | $ 7,027 | $ 6,913 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASU 2016-13 [Member] | ||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Allowance for losses on trade accounts receivable | $ 900 |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Assets held for sale [Abstract] | ||
Assets held for sale | $ 78,612 | $ 91,293 |
Liabilities held for sale [Abstract] | ||
Liabilities held for sale | 19,821 | 19,185 |
Minimum [Member] | ||
Divestiture Transactions [Abstract] | ||
Expected cash costs associated with anticipated divestitures | 7,000 | |
Maximum [Member] | ||
Divestiture Transactions [Abstract] | ||
Expected cash costs associated with anticipated divestitures | 10,000 | |
Inks and Fragrances [Member] | ||
Assets held for sale [Abstract] | ||
Trade accounts receivable, net | 34,610 | 31,653 |
Inventories | 30,104 | 34,612 |
Prepaid expenses and other current assets | 6,628 | 5,528 |
Property, Plant, and Equipment, net | 4,643 | 14,496 |
Intangible assets, net | 2,627 | 5,004 |
Assets held for sale | 78,612 | 91,293 |
Liabilities held for sale [Abstract] | ||
Trade accounts payable | 13,532 | 12,318 |
Accrued salaries, wages and withholdings from employees | 1,222 | 1,677 |
Other accrued expenses | 5,067 | 5,190 |
Liabilities held for sale | 19,821 | 19,185 |
Inks [Member] | Minimum [Member] | ||
Divestiture Transactions [Abstract] | ||
Non-cash gain related to reclassification of accumulated foreign currency translation | 6,000 | |
Inks [Member] | Maximum [Member] | ||
Divestiture Transactions [Abstract] | ||
Non-cash gain related to reclassification of accumulated foreign currency translation | 8,000 | |
Fragrances [Member] | Minimum [Member] | ||
Divestiture Transactions [Abstract] | ||
Non-cash charges related to reclassification of accumulated foreign currency translation | 10,000 | |
Fragrances [Member] | Maximum [Member] | ||
Divestiture Transactions [Abstract] | ||
Non-cash charges related to reclassification of accumulated foreign currency translation | 12,000 | |
Selling, General and Administrative Expenses [Member] | ||
Divestiture Transactions [Abstract] | ||
Non-cash impairment charges | 600 | |
Other divestures and exit related costs | 1,300 | |
Selling, General and Administrative Expenses [Member] | Inks [Member] | ||
Divestiture Transactions [Abstract] | ||
Non-cash impairment charges | 9,400 | 15,800 |
Selling, General and Administrative Expenses [Member] | Fragrances [Member] | ||
Divestiture Transactions [Abstract] | ||
Non-cash impairment charges | 300 | $ 18,200 |
Cost of Products Sold [Member] | ||
Divestiture Transactions [Abstract] | ||
Non-cash impairment charges | $ 200 |
Trade Accounts Receivable (Deta
Trade Accounts Receivable (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)Segment | |
Trade Accounts Receivable [Abstract] | |
Number of portfolio segments | Segment | 1 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 6,913 |
Provision for expected credit losses | 240 |
Accounts written off | (336) |
Translation and other activity | (643) |
Ending balance | 7,027 |
ASU 2016-13 [Member] | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Adoption of ASU 2016-13 | $ 853 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventories [Abstract] | ||
Inventories, including finished and in-process products | $ 282.9 | $ 313.1 |
Raw materials and supplies | $ 101.3 | $ 109.4 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Level 2 [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Forward exchange contract, liability | $ 1.8 | $ 0.1 |
Level 2 [Member] | Carrying Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | 589.3 | |
Level 2 [Member] | Fair Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | 589.7 | |
Level 3 [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Fair value of disposal groups | 59 | |
Impairment on disposal groups | $ 9.7 |
Segment Information, Operating
Segment Information, Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue [Abstract] | ||
Revenue | $ 350,677 | $ 347,513 |
Operating income (loss) | 34,561 | 49,420 |
Interest expense | 4,307 | 5,402 |
Earnings before income taxes | 30,254 | 44,018 |
Flavors & Fragrances [Member] | ||
Revenue [Abstract] | ||
Revenue | 181,187 | 178,744 |
Operating income (loss) | 20,871 | 23,125 |
Interest expense | 0 | 0 |
Earnings before income taxes | 20,871 | 23,125 |
Color [Member] | ||
Revenue [Abstract] | ||
Revenue | 139,193 | 140,250 |
Operating income (loss) | 29,664 | 30,199 |
Interest expense | 0 | 0 |
Earnings before income taxes | 29,664 | 30,199 |
Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 30,297 | 28,519 |
Operating income (loss) | 5,059 | 4,218 |
Interest expense | 0 | 0 |
Earnings before income taxes | 5,059 | 4,218 |
Reportable Segments [Member] | ||
Revenue [Abstract] | ||
Revenue | 360,442 | 355,951 |
Reportable Segments [Member] | Flavors & Fragrances [Member] | ||
Revenue [Abstract] | ||
Revenue | 186,498 | 183,553 |
Reportable Segments [Member] | Color [Member] | ||
Revenue [Abstract] | ||
Revenue | 143,495 | 143,879 |
Reportable Segments [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 30,449 | 28,519 |
Intersegment Revenue [Member] | ||
Revenue [Abstract] | ||
Revenue | 9,765 | 8,438 |
Intersegment Revenue [Member] | Flavors & Fragrances [Member] | ||
Revenue [Abstract] | ||
Revenue | 5,311 | 4,809 |
Intersegment Revenue [Member] | Color [Member] | ||
Revenue [Abstract] | ||
Revenue | 4,302 | 3,629 |
Intersegment Revenue [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 152 | 0 |
Corporate & Other [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 0 |
Operating income (loss) | (21,033) | (8,122) |
Interest expense | 4,307 | 5,402 |
Earnings before income taxes | $ (25,340) | $ (13,524) |
Segment Information, Revenue fr
Segment Information, Revenue from External Customers by Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue [Abstract] | ||
Revenue | $ 350,677 | $ 347,513 |
Flavors, Extracts & Flavor Ingredients [Member] | ||
Revenue [Abstract] | ||
Revenue | 101,453 | 103,528 |
Natural Ingredients [Member] | ||
Revenue [Abstract] | ||
Revenue | 57,600 | 51,219 |
Fragrances [Member] | ||
Revenue [Abstract] | ||
Revenue | 22,284 | 23,267 |
Yogurt Fruit Preparations [Member] | ||
Revenue [Abstract] | ||
Revenue | 5,161 | 5,539 |
Food & Beverage Colors [Member] | ||
Revenue [Abstract] | ||
Revenue | 90,793 | 88,848 |
Personal Care [Member] | ||
Revenue [Abstract] | ||
Revenue | 43,743 | 44,921 |
Inks [Member] | ||
Revenue [Abstract] | ||
Revenue | 8,959 | 10,110 |
Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 30,449 | 28,519 |
Flavors & Fragrances [Member] | ||
Revenue [Abstract] | ||
Revenue | 181,187 | 178,744 |
Flavors & Fragrances [Member] | Flavors, Extracts & Flavor Ingredients [Member] | ||
Revenue [Abstract] | ||
Revenue | 101,453 | 103,528 |
Flavors & Fragrances [Member] | Natural Ingredients [Member] | ||
Revenue [Abstract] | ||
Revenue | 57,600 | 51,219 |
Flavors & Fragrances [Member] | Fragrances [Member] | ||
Revenue [Abstract] | ||
Revenue | 22,284 | 23,267 |
Flavors & Fragrances [Member] | Yogurt Fruit Preparations [Member] | ||
Revenue [Abstract] | ||
Revenue | 5,161 | 5,539 |
Color [Member] | ||
Revenue [Abstract] | ||
Revenue | 139,193 | 140,250 |
Color [Member] | Food & Beverage Colors [Member] | ||
Revenue [Abstract] | ||
Revenue | 90,793 | 88,848 |
Color [Member] | Personal Care [Member] | ||
Revenue [Abstract] | ||
Revenue | 43,743 | 44,921 |
Color [Member] | Inks [Member] | ||
Revenue [Abstract] | ||
Revenue | 8,959 | 10,110 |
Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 30,297 | 28,519 |
Asia Pacific [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 30,449 | 28,519 |
Intersegment Revenue [Member] | ||
Revenue [Abstract] | ||
Revenue | 9,765 | 8,438 |
Intersegment Revenue [Member] | Flavors & Fragrances [Member] | ||
Revenue [Abstract] | ||
Revenue | 5,311 | 4,809 |
Intersegment Revenue [Member] | Color [Member] | ||
Revenue [Abstract] | ||
Revenue | 4,302 | 3,629 |
Intersegment Revenue [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | $ 152 | $ 0 |
Segment Information, Revenue _2
Segment Information, Revenue from External Customers by Geographic Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue [Abstract] | ||
Revenue | $ 350,677 | $ 347,513 |
North America [Member] | ||
Revenue [Abstract] | ||
Revenue | 182,966 | 178,779 |
Europe [Member] | ||
Revenue [Abstract] | ||
Revenue | 82,637 | 90,177 |
Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 54,452 | 52,300 |
Other [Member] | ||
Revenue [Abstract] | ||
Revenue | 30,622 | 26,257 |
Flavors & Fragrances [Member] | ||
Revenue [Abstract] | ||
Revenue | 181,187 | 178,744 |
Color [Member] | ||
Revenue [Abstract] | ||
Revenue | 139,193 | 140,250 |
Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 30,297 | 28,519 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | North America [Member] | ||
Revenue [Abstract] | ||
Revenue | 116,701 | 112,747 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Europe [Member] | ||
Revenue [Abstract] | ||
Revenue | 43,877 | 48,001 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 9,355 | 7,609 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Other [Member] | ||
Revenue [Abstract] | ||
Revenue | 11,254 | 10,387 |
Reportable Geographical Components [Member] | Color [Member] | North America [Member] | ||
Revenue [Abstract] | ||
Revenue | 66,265 | 66,007 |
Reportable Geographical Components [Member] | Color [Member] | Europe [Member] | ||
Revenue [Abstract] | ||
Revenue | 38,738 | 42,135 |
Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 15,975 | 16,425 |
Reportable Geographical Components [Member] | Color [Member] | Other [Member] | ||
Revenue [Abstract] | ||
Revenue | 18,215 | 15,683 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 25 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member] | ||
Revenue [Abstract] | ||
Revenue | 22 | 41 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 29,122 | 28,266 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member] | ||
Revenue [Abstract] | ||
Revenue | $ 1,153 | $ 187 |
Retirement Plans (Details)
Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 400 | $ 359 |
Interest cost | 256 | 320 |
Expected return on plan assets | (209) | (231) |
Recognized actuarial loss (gain) | 16 | (39) |
Total defined benefit expense | $ 463 | $ 409 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
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 | $ 54.5 | $ 59.9 |
Foreign Currency Denominated Debt, Net Investment Hedging [Member] | ||
Derivative instruments and hedging activity for the period [Abstract] | ||
Carrying value of foreign denominated debt | 355 | $ 363.4 |
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ (8.4) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Taxes [Abstract] | ||
Effective income tax rates | 31.30% | 25.50% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 881,589 | $ 859,947 | |
Other comprehensive income (loss) before reclassifications | (44,790) | (567) | |
Amounts reclassified from OCI | 437 | (149) | |
Ending balance | 842,658 | 877,724 | |
Accumulated Other Comprehensive (Loss) Income [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (163,008) | (165,555) | |
Ending balance | (207,361) | (166,271) | |
Cash Flow Hedges [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | [1] | (199) | 147 |
Other comprehensive income (loss) before reclassifications | [1] | (1,865) | 597 |
Amounts reclassified from OCI | [1] | 429 | (112) |
Ending balance | [1] | (1,635) | 632 |
Pension Items [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | [1] | (672) | 549 |
Other comprehensive income (loss) before reclassifications | [1] | 0 | 0 |
Amounts reclassified from OCI | [1] | 8 | (37) |
Ending balance | [1] | (664) | 512 |
Foreign Currency Items [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (162,137) | (166,251) | |
Other comprehensive income (loss) before reclassifications | (42,925) | (1,164) | |
Amounts reclassified from OCI | 0 | 0 | |
Ending balance | $ (205,062) | $ (167,415) | |
[1] | Cash Flow Hedges and Pension Items are net of tax. |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions | Apr. 23, 2020 | Apr. 09, 2020 |
Subsequent Events [Abstract] | ||
Dividend declared date | Apr. 23, 2020 | |
Dividend payable (in dollars per share) | $ 0.39 | |
Dividend payable date | Jun. 1, 2020 | |
Minimum [Member] | ||
Subsequent Events [Abstract] | ||
Non-cash impairment charge | $ 7 | |
Maximum [Member] | ||
Subsequent Events [Abstract] | ||
Non-cash impairment charge | $ 9 |