Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity File Number | 001-07626 | |
Entity Registrant Name | Sensient Technologies Corp | |
Entity Central Index Key | 0000310142 | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-0561070 | |
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 $0.10 per share | |
Trading Symbol | SXT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,037,929 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONSOLIDATED STATEMENTS OF EARNINGS [Abstract] | ||||
Revenue | $ 371,706 | $ 335,827 | $ 727,227 | $ 695,529 |
Cost of products sold | 240,703 | 224,233 | 471,378 | 468,322 |
Selling and administrative expenses | 75,759 | 75,841 | 147,816 | 144,557 |
Operating income | 55,244 | 35,753 | 108,033 | 82,650 |
Interest expense | 3,083 | 3,322 | 6,076 | 6,755 |
Earnings (loss) before income taxes | 52,161 | 32,431 | 101,957 | 75,895 |
Income taxes | 13,514 | 6,495 | 26,239 | 18,291 |
Net earnings | $ 38,647 | $ 25,936 | $ 75,718 | $ 57,604 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 41,893 | 42,135 | 41,879 | 42,199 |
Diluted (in shares) | 42,208 | 42,267 | 42,178 | 42,328 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.92 | $ 0.62 | $ 1.81 | $ 1.37 |
Diluted (in dollars per share) | 0.92 | 0.61 | 1.80 | 1.36 |
Dividends declared per common share (in dollars per share) | $ 0.41 | $ 0.39 | $ 0.82 | $ 0.78 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Comprehensive income | $ 10,340 | $ 44,245 | $ 47,174 | $ 60,774 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 25,271 | $ 25,740 |
Trade accounts receivable | 295,948 | 261,121 |
Inventories | 452,161 | 411,635 |
Prepaid expenses and other current assets | 48,146 | 42,657 |
Total current assets | 821,526 | 741,153 |
Other assets | 100,863 | 92,952 |
Deferred tax assets | 19,620 | 29,901 |
Intangible assets, net | 13,962 | 14,975 |
Goodwill | 403,576 | 420,034 |
Property, Plant, and Equipment: | ||
Land | 29,725 | 31,028 |
Buildings | 309,609 | 315,207 |
Machinery and equipment | 710,294 | 715,344 |
Construction in progress | 49,389 | 32,801 |
Property, plant, and equipment, gross | 1,099,017 | 1,094,380 |
Less accumulated depreciation | (655,342) | (647,902) |
Property, plant, and equipment, net | 443,675 | 446,478 |
Total assets | 1,803,222 | 1,745,493 |
Current Liabilities: | ||
Trade accounts payable | 140,776 | 125,519 |
Accrued salaries, wages, and withholdings from employees | 35,755 | 40,939 |
Other accrued expenses | 47,772 | 46,292 |
Income taxes | 12,989 | 11,016 |
Short-term borrowings | 26,624 | 8,539 |
Total current liabilities | 263,916 | 232,305 |
Deferred tax liabilities | 15,538 | 14,349 |
Other liabilities | 37,893 | 28,829 |
Accrued employee and retiree benefits | 28,193 | 28,579 |
Long-term debt | 498,715 | 503,006 |
Shareholders' Equity: | ||
Common stock | 5,396 | 5,396 |
Additional paid-in capital | 116,596 | 111,352 |
Earnings reinvested in the business | 1,672,000 | 1,630,713 |
Treasury stock, at cost | (631,853) | (634,408) |
Accumulated other comprehensive loss | (203,172) | (174,628) |
Total shareholders' equity | 958,967 | 938,425 |
Total liabilities and shareholders' equity | $ 1,803,222 | $ 1,745,493 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net earnings | $ 75,718 | $ 57,604 |
Adjustments to arrive at net cash provided by operating activities: | ||
Depreciation and amortization | 26,180 | 25,817 |
Share-based compensation expense | 8,691 | 4,188 |
Net (gain) loss on assets | (38) | 206 |
Loss on divestitures and other charges | 0 | 13,511 |
Deferred income taxes | 12,244 | 1,702 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (41,592) | (26,902) |
Inventories | (51,768) | 19,357 |
Prepaid expenses and other assets | (25,919) | (15,573) |
Accounts payable and other accrued expenses | 20,501 | 9,632 |
Accrued salaries, wages, and withholdings from employees | (4,188) | (3,944) |
Income taxes | 2,765 | 1,953 |
Other liabilities | 199 | 1,710 |
Net cash provided by operating activities | 22,793 | 89,261 |
Cash Flows from Investing Activities: | ||
Acquisition of property, plant, and equipment | (32,468) | (25,550) |
Proceeds from sale of assets | 92 | 169 |
Proceeds from divestiture of businesses | 0 | 36,255 |
Other investing activities | 1,571 | (254) |
Net cash (used in) provided by investing activities | (30,805) | 10,620 |
Cash flows from financing activities: | ||
Proceeds from additional borrowings | 69,424 | 25,997 |
Debt payments | (31,547) | (62,578) |
Purchase of treasury stock | 0 | (22,507) |
Dividends paid | (34,446) | (33,027) |
Other financing activities | (2,056) | (582) |
Net cash provided by (used in) financing activities | 1,375 | (92,697) |
Effect of exchange rate changes on cash and cash equivalents | 6,168 | 1,352 |
Net (decrease) increase in cash and cash equivalents | (469) | 8,536 |
Cash and cash equivalents at beginning of period | 25,740 | 24,770 |
Cash and cash equivalents at end of period | $ 25,271 | $ 33,306 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Earnings Reinvested in the Business [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning balance at Dec. 31, 2020 | $ 5,396 | $ 102,909 | $ 1,578,662 | $ (593,540) | $ (159,091) | $ 934,336 |
Beginning balance (in shares) at Dec. 31, 2020 | 11,647,627 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 57,604 | $ 0 | 0 | 57,604 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 3,170 | 3,170 |
Cash dividends paid | 0 | 0 | (33,027) | 0 | 0 | (33,027) |
Share-based compensation | 0 | 4,188 | 0 | 0 | 0 | 4,188 |
Non-vested stock issued upon vesting | 0 | (1,264) | 0 | $ 1,264 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (24,711) | |||||
Benefit plans | 0 | 338 | 0 | $ 756 | 0 | 1,094 |
Benefit plans (in shares) | (14,791) | |||||
Purchase of treasury stock | 0 | 0 | 0 | $ (22,507) | 0 | (22,507) |
Purchase of treasury stock (in shares) | 276,993 | |||||
Other | 0 | (204) | 0 | $ (377) | 0 | (581) |
Other (in shares) | 7,379 | |||||
Ending balance at Jun. 30, 2021 | 5,396 | 105,967 | 1,603,239 | $ (614,404) | (155,921) | 944,277 |
Ending balance (in shares) at Jun. 30, 2021 | 11,892,497 | |||||
Beginning balance at Mar. 31, 2021 | 5,396 | 104,725 | 1,593,795 | $ (604,040) | (174,230) | 925,646 |
Beginning balance (in shares) at Mar. 31, 2021 | 11,776,654 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 25,936 | $ 0 | 0 | 25,936 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 18,309 | 18,309 |
Cash dividends paid | 0 | 0 | (16,492) | 0 | 0 | (16,492) |
Share-based compensation | 0 | 2,075 | 0 | 0 | 0 | 2,075 |
Non-vested stock issued upon vesting | 0 | (701) | 0 | $ 701 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (13,666) | |||||
Purchase of treasury stock | 0 | 0 | 0 | $ (10,842) | 0 | (10,842) |
Purchase of treasury stock (in shares) | 125,150 | |||||
Other | 0 | (132) | 0 | $ (223) | 0 | (355) |
Other (in shares) | 4,359 | |||||
Ending balance at Jun. 30, 2021 | 5,396 | 105,967 | 1,603,239 | $ (614,404) | (155,921) | 944,277 |
Ending balance (in shares) at Jun. 30, 2021 | 11,892,497 | |||||
Beginning balance at Dec. 31, 2021 | 5,396 | 111,352 | 1,630,713 | $ (634,408) | (174,628) | 938,425 |
Beginning balance (in shares) at Dec. 31, 2021 | 12,107,549 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 75,718 | $ 0 | 0 | 75,718 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (28,544) | (28,544) |
Cash dividends paid | 0 | 0 | (34,446) | 0 | 0 | (34,446) |
Share-based compensation | 0 | 8,691 | 0 | 0 | 0 | 8,691 |
Non-vested stock issued upon vesting | 0 | (3,239) | 0 | $ 3,239 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (61,821) | |||||
Benefit plans | 0 | 560 | 0 | $ 618 | 0 | 1,178 |
Benefit plans (in shares) | (11,786) | |||||
Other | 0 | (768) | 15 | $ (1,302) | 0 | (2,055) |
Other (in shares) | 24,831 | |||||
Ending balance at Jun. 30, 2022 | 5,396 | 116,596 | 1,672,000 | $ (631,853) | (203,172) | 958,967 |
Ending balance (in shares) at Jun. 30, 2022 | 12,058,773 | |||||
Beginning balance at Mar. 31, 2022 | 5,396 | 112,973 | 1,650,588 | $ (632,382) | (174,865) | 961,710 |
Beginning balance (in shares) at Mar. 31, 2022 | 12,068,868 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 38,647 | $ 0 | 0 | 38,647 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (28,307) | (28,307) |
Cash dividends paid | 0 | 0 | (17,235) | 0 | 0 | (17,235) |
Share-based compensation | 0 | 4,528 | 0 | 0 | 0 | 4,528 |
Non-vested stock issued upon vesting | 0 | (761) | 0 | $ 761 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (14,523) | |||||
Other | 0 | (144) | 0 | $ (232) | 0 | (376) |
Other (in shares) | 4,428 | |||||
Ending balance at Jun. 30, 2022 | $ 5,396 | $ 116,596 | $ 1,672,000 | $ (631,853) | $ (203,172) | $ 958,967 |
Ending balance (in shares) at Jun. 30, 2022 | 12,058,773 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | ||||
Cash dividends per share (in dollars per share) | $ 0.41 | $ 0.39 | $ 0.82 | $ 0.78 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022, and the results of operations, comprehensive income, and shareholders’ equity for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021. 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. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2021, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change. |
Divestitures
Divestitures | 6 Months Ended |
Jun. 30, 2022 | |
Divestitures [Abstract] | |
Divestitures | 2. Divestitures On June 30, 2020, the Company completed the sale of its inks product line. On September 18, 2020, the Company completed the sale of its yogurt fruit preparations product line. This sale also included an earnout based on future performance, which could result in additional cash consideration for the Company. On April 1, 2021, the Company completed the sale of its fragrances product line (excluding its essential oils product line) for $36.3 million of net cash. The Company reports all costs associated with the divestitures in Corporate & Other. There were no costs associated with the divestitures for the three and six months ended June 30, 2022. The following table summarizes the divestiture & other related costs for the three months ended June 30, 2021: (In thousands) Yogurt Fruit Preparations Fragrances Inks Corporate & Other Total Non-cash impairment charges – Selling and administrative expenses $ - $ 1,062 $ - $ - $ 1,062 Non-cash charges – Cost of products sold - 3 - - 3 Reclassification of foreign currency translation and related items – Selling and administrative expenses - 10,193 - - 10,193 Other costs - Selling and administrative expenses (1) 264 202 (98 ) 62 430 Total $ 264 $ 11,460 $ (98 ) $ 62 $ 11,688 (1) Other costs – Selling and administrative expenses include employee separation costs, professional services, accelerated depreciation, and other related costs. T he following table summarizes the divestiture & other related costs for the six months ended June 30, 2021 (In thousands) Yogurt Fruit Preparations Fragrances Inks Corporate & Other Total Non-cash impairment charges – Selling and administrative expenses $ - $ 1,062 $ - $ - $ 1,062 Non-cash charges – Cost of products sold - 37 (9 ) - 28 Reclassification of foreign currency translation and related items – Selling and administrative expenses - 10,193 - - 10,193 Other costs - Selling and administrative expenses (1) 529 1,216 (205 ) 437 1,977 Total $ 529 $ 12,508 $ (214 ) $ 437 $ 13,260 (1) Other costs – Selling and administrative expenses include environmental remediation, employee separation costs, professional services, accelerated depreciation, and other related costs. In March 2020, the Company was notified by the 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 records liabilities related to environmental remediation obligations when estimated future expenditures are probable and the amount of the liability is reasonably estimable. Based upon an environmental investigation and a quantitative risk assessment performed by a consultant hired by the Company, the Company recorded $0.3 million related to these obligations in Selling and Administrative Expenses |
Operational Improvement Plan
Operational Improvement Plan | 6 Months Ended |
Jun. 30, 2022 | |
Operational Improvement Plan [Abstract] | |
Operational Improvement Plan | 3. Operational Improvement Plan During the third quarter of 2020, the Company approved an operational improvement plan (Operational Improvement Plan) to consolidate manufacturing facilities and improve efficiencies within the Company. As part of the Operational Improvement Plan, the Company combined its New Jersey cosmetics manufacturing facility in the Personal Care product line of the Color segment into its existing Color segment facility in Missouri. In addition, the Company centralized certain Flavors & Extracts segment support functions in Europe into one location. In the Asia Pacific segment, the Company incurred costs in connection with the elimination of certain selling and administrative positions. The Company reports all costs and income associated with the Operational Improvement Plan in Corporate & Other. There were no costs associated with the Operational Improvement Plan for the three and six months ended June 30, 2022. The following table summarizes the Operational Improvement Plan expenses recorded in Selling and Administrative Expenses (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Employee separation costs $ 3 $ 26 $ (24 ) $ 5 Other income (1) - (3,624 ) - (3,624 ) Other costs (2) - 125 - 125 Total expense (income) $ 3 $ (3,473 ) $ (24 ) $ (3,494 ) (1) Other income includes cash received for the early termination of a lease less associated expenses. (2) Other costs include professional services, accelerated depreciation, and other related costs. The following table summarizes the Operational Improvement Plan expenses recorded in Selling and Administrative Expenses Flavors & Extracts Color Asia Pacific Consolidated Employee separation costs $ (16 ) $ 80 $ (68 ) $ (4 ) Other income (1) - (3,624 ) - (3,624 ) Other costs (2) - 1,134 1 1,135 Total expense (income) $ (16 ) $ (2,410 ) $ (67 ) $ (2,493 ) (1) Other income includes cash received for the early termination of a lease less associated expenses. (2) Other costs include professional services, accelerated depreciation, and other related costs. As of June 30, 2022 and December 31 2021, accrued liabilities in Other Accrued Expenses . |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2022 | |
Acquisition [Abstract] | |
Acquisition | 4. Acquisition On July 15, 2021, the Company acquired substantially all of the assets of Flavor Solutions, Inc. |
Trade Accounts Receivable
Trade Accounts Receivable | 6 Months Ended |
Jun. 30, 2022 | |
Trade Accounts Receivable [Abstract] | |
Trade Accounts Receivable | 5 . 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-19. Currently, the COVID-19 pandemic has not had and is not anticipated to have a material impact on trade accounts receivable. Forecasted economic conditions have not had 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 one 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 three and six month periods ended June 30, 2022 and 2021: (In thousands) Three Months Ended June 30, 2022 Allowance for Doubtful Accounts Balance at March 31, 2022 $ 4,912 Provision for expected credit losses 547 Accounts written off (729 ) Translation and other activity (236 ) Balance at June 30, 2022 $ 4,494 (In thousands) Three Months Ended June 30, 2021 Allowance for Doubtful Accounts Balance at March 31, 2021 $ 3,614 Provision for expected credit losses 138 Accounts written off (20 ) Translation and other activity 17 Balance at June 30, 2021 $ 3,749 (In thousands) Six Months Ended June 30, 2022 Allowance for Doubtful Accounts Balance at December 31, 2021 $ 4,877 Provision for expected credit losses 832 Accounts written off (1,096 ) Translation and other activity (119 ) Balance at June 30, 2022 $ 4,494 (In thousands) Six Months Ended June 30, 2021 Allowance for Doubtful Accounts Balance at December 31, 2020 $ 3,891 Provision for expected credit losses 294 Accounts written off (373 ) Translation and other activity (63 ) Balance at June 30, 2021 $ 3,749 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventories [Abstract] | |
Inventories | 6. Inventories At June 30, 2022, and December 31, 2021, inventories included finished and in-process products totaling $294.4 million and $280.2 million, respectively, and raw materials and supplies of $157.7 million and $131.4 million, respectively. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value [Abstract] | |
Fair Value | 7. Fair Value Accounting Standards Codification 820, Fair Value Measurement |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Information [Abstract] | |
Segment Information | 8 . Segment Information The Company evaluates performance based on operating income before divestiture & other related costs, share-based compensation, restructuring and other charges including operational improvement plan costs, 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 Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation. The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. The Company’s three reportable segments are the Flavors & Extracts and Color segments, which are both managed on a product line basis, and the Asia Pacific segment, which is managed on a geographic basis. The Company’s Flavors & Extracts segment produces flavor, extracts and essential oils products that impart a desired taste, texture, aroma, and other characteristics to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for cosmetics, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, such as colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color and flavor products for the Asia Pacific countries. The Company’s corporate expenses, divestiture & other related costs, share-based compensation, operational improvement plan expenses, and other costs are included in the “Corporate & Other” category. Divestiture & other related costs and restructuring and other costs, including the Operational Improvement Plan costs, for the three and six months ended June 30, 2021, are further described in Note 2, Divestitures Operational Improvement Plan Operating results by segment for the periods presented are as follows: (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated Three months ended June 30 2022 Revenue from external customers $ 182,415 $ 152,070 $ 37,221 $ - $ 371,706 Intersegment revenue 6,922 4,198 107 - 11,227 Total revenue $ 189,337 $ 156,268 $ 37,328 $ - $ 382,933 Operating income (loss) $ 30,013 $ 31,178 $ 7,721 $ (13,668 ) $ 55,244 Interest expense - - - 3,083 3,083 Earnings (loss) before income taxes $ 30,013 $ 31,178 $ 7,721 $ (16,751 ) $ 52,161 Three months ended June 30 2021 Revenue from external customers $ 174,699 $ 128,830 $ 32,298 $ - $ 335,827 Intersegment revenue 4,702 4,377 19 - 9,098 Total revenue $ 179,401 $ 133,207 $ 32,317 $ - $ 344,925 Operating income (loss) $ 24,536 $ 25,615 $ 5,793 $ (20,191 ) $ 35,753 Interest expense - - - 3,322 3,322 Earnings (loss) before income taxes $ 24,536 $ 25,615 $ 5,793 $ (23,513 ) $ 32,431 (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated Six June 30 2022 Revenue from external customers $ 357,617 $ 295,998 $ 73,612 $ - $ 727,227 Intersegment revenue 14,447 8,708 181 - 23,336 Total revenue $ 372,064 $ 304,706 $ 73,793 $ - $ 750,563 Operating income (loss) $ 57,592 $ 61,835 $ 15,925 $ (27,319 ) $ 108,033 Interest expense - - - 6,076 6,076 Earnings (loss) before income taxes $ 57,592 $ 61,835 $ 15,925 $ (33,395 ) $ 101,957 Six June 30 2021 Revenue from external customers $ 369,360 $ 260,031 $ 66,138 $ - $ 695,529 Intersegment revenue 10,952 8,896 19 - 19,867 Total revenue $ 380,312 $ 268,927 $ 66,157 $ - $ 715,396 Operating income (loss) $ 51,554 $ 52,209 $ 12,545 $ (33,658 ) $ 82,650 Interest expense - - - 6,755 6,755 Earnings (loss) before income taxes $ 51,554 $ 52,209 $ 12,545 $ (40,413 ) $ 75,895 Product Lines (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended June 30 2022 Flavors, Extracts & Flavor Ingredients $ 130,578 $ - $ - $ 130,578 Natural Ingredients 58,759 - - 58,759 Food & Pharmaceutical Colors - 113,784 - 113,784 Personal Care - 42,116 - 42,116 Inks - 368 - 368 Asia Pacific - - 37,328 37,328 Intersegment Revenue (6,922 ) (4,198 ) (107 ) (11,227 ) Total revenue from external customers $ 182,415 $ 152,070 $ 37,221 $ 371,706 Three months ended June 30 2021 Flavors, Extracts & Flavor Ingredients $ 117,684 $ - $ - $ 117,684 Natural Ingredients 60,302 - - 60,302 Yogurt Fruit Preparations 1,415 - - 1,415 Food & Pharmaceutical Colors - 94,092 - 94,092 Personal Care - 38,323 - 38,323 Inks - 792 - 792 Asia Pacific - - 32,317 32,317 Intersegment Revenue (4,702 ) (4,377 ) (19 ) (9,098 ) Total revenue from external customers $ 174,699 $ 128,830 $ 32,298 $ 335,827 (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Six June 30 2022 Flavors, Extracts & Flavor Ingredients $ 257,096 $ - $ - $ 257,096 Natural Ingredients 114,968 - - 114,968 Food & Pharmaceutical Colors - 216,893 - 216,893 Personal Care - 86,962 - 86,962 Inks - 851 - 851 Asia Pacific - - 73,793 73,793 Intersegment Revenue (14,447 ) (8,708 ) (181 ) (23,336 ) Total revenue from external customers $ 357,617 $ 295,998 $ 73,612 $ 727,227 Six months ended June 30, 2021: Flavors, Extracts & Flavor Ingredients $ 231,502 $ - $ - $ 231,502 Natural Ingredients 122,506 - - 122,506 Fragrances 22,739 - - 22,739 Yogurt Fruit Preparations 3,565 - - 3,565 Food & Pharmaceutical Colors - 187,877 - 187,877 Personal Care - 79,838 - 79,838 Inks - 1,212 - 1,212 Asia Pacific - - 66,157 66,157 Intersegment Revenue (10,952 ) (8,896 ) (19 ) (19,867 ) Total revenue from external customers $ 369,360 $ 260,031 $ 66,138 $ 695,529 Geographic Markets (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended June 30 2022 North America $ 138,885 $ 79,360 $ 2 $ 218,247 Europe 31,165 39,615 50 70,830 Asia Pacific 6,800 16,413 36,807 60,020 Other 5,565 16,682 362 22,609 Total revenue from external customers $ 182,415 $ 152,070 $ 37,221 $ 371,706 Three months ended June 30 2021 North America $ 128,665 $ 57,264 $ 37 $ 185,966 Europe 32,654 37,906 54 70,614 Asia Pacific 8,161 18,543 31,794 58,498 Other 5,219 15,117 413 20,749 Total revenue from external customers $ 174,699 $ 128,830 $ 32,298 $ 335,827 (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Six June 30 2022 North America $ 265,587 $ 149,288 $ 60 $ 414,935 Europe 63,770 81,593 131 145,494 Asia Pacific 16,537 32,429 70,789 119,755 Other 11,723 32,688 2,632 47,043 Total revenue from external customers $ 357,617 $ 295,998 $ 73,612 $ 727,227 Six June 30 2021 North America $ 258,308 $ 120,934 $ 62 $ 379,304 Europe 77,222 75,184 76 152,482 Asia Pacific 17,878 33,381 64,352 115,611 Other 15,952 30,532 1,648 48,132 Total revenue from external customers $ 369,360 $ 260,031 $ 66,138 $ 695,529 |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Plans [Abstract] | |
Retirement Plans | 9. 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 June 30, Six Months Ended June 30 (In thousands) 2022 2021 2022 2021 Service cost $ 407 $ 437 $ 815 $ 873 Interest cost 240 214 484 426 Expected return on plan assets (199 ) (185 ) (404 ) (369 ) Recognized actuarial loss 12 69 24 138 Total defined benefit expense $ 460 $ 535 $ 919 $ 1,068 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 | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activity [Abstract] | |
Derivative Instruments and Hedging Activity | 10. 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 30, 2022 Net investment hedges – The Company has designated certain foreign currency denominated long-term borrowings as partial hedges of the Company’s foreign currency net asset positions. As of June 30, 2022 and December 31, 2021 June 30, 2022 and 2021, increased debt by For the three and six months ended June 30, 2021, losses of $4.2 million were reclassified into net earnings in the Company’s Consolidated Statement of Earnings related to the Euro net investment hedge in connection with the sale of the fragrances product line. See Note 2, Divestitures |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | 11. Income Taxes The effective income tax ra tes for the three months ended June 30, 2022 and 2021 were 25.9% and 20.0%, respectively. For the six months ended June 30, 2022 and 2021, the effective income tax rates were 25.7% and 24.1%, respectively. The effective tax rates for the three and six months ended June 30, 2022 and 2021 were both impacted by changes in estimates associated with the finalization of prior year foreign tax items and the mix of foreign earnings. The three and six months ended June 30, 2021 were also impacted by changes in valuation allowances and an audit settlement. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 12. Accumulated Other Comprehensive Income The following table summarizes the changes in OCI during the three and six month periods ended June 30, 2022 and 2021: (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at December 31, 2021 $ 206 $ (353 ) $ (174,481 ) $ (174,628 ) Other comprehensive income (loss) before reclassifications 136 - (28,202 ) (28,066 ) Amounts reclassified from OCI (494 ) 16 - (478 ) Balances at June 30 2022 $ (152 ) $ (337 ) $ (202,683 ) $ (203,172 ) (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at March 31, 2022 $ 106 $ (345 ) $ (174,626 ) $ (174,865 ) Other comprehensive loss before reclassifications (106 ) - (28,057 ) (28,163 ) Amounts reclassified from OCI (152 ) 8 - (144 ) Balances at June 30 2022 $ (152 ) $ (337 ) $ (202,683 ) $ (203,172 ) (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at December 31, 2020 $ 749 $ (1,965 ) $ (157,875 ) $ (159,091 ) Other comprehensive income (loss) before reclassifications 844 - (7,196 ) (6,352 ) Amounts reclassified from OCI (776 ) 104 10,194 9,522 Balances at June 30 2021 $ 817 $ (1,861 ) $ (154,877 ) $ (155,921 ) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at March 31, 2021 $ 1,180 $ (1,913 ) $ (173,497 ) $ (174,230 ) Other comprehensive income before reclassifications 124 - 8,427 8,551 Amounts reclassified from OCI (487 ) 52 10,193 9,758 Balances at June 30 2021 $ 817 $ (1,861 ) $ (154,877 ) $ (155,921 ) (1) Cash Flow Hedges and Pension Items are net of tax. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 13. 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. The Court overruled the Demurrer on September 1, 2020. SNI requested discretionary appellate review of this decision. The Court of Appeal of the State of California, Fifth Appellate District granted SNI’s application on February 19, 2021 and ordered briefing by Kelley v. Sensient Natural Ingredients LLC; Walters v. Sensient Natural Ingredients LLC On March 4, 2020, Monique Kelley filed a Class Action Complaint against SNI in Merced County Superior Court in California. Ms. Kelley worked at SNI for less than a week in 2017 through a temporary staffing company. Ms. Kelley has brought suit for purported violations of the California Labor Code and the California Business and Professions Code on her own behalf, and on behalf of all current and former California-based hourly-paid or non-exempt employees of SNI. Ms. Kelley specifically asserts claims for unpaid overtime wages, unpaid minimum wages, unpaid meal and rest break premiums, failure to timely pay final wages upon termination, non-compliant wage statements, and unreimbursed business expenses. SNI filed a Demurrer on May 21, 2020, seeking dismissal of the Complaint in its entirety on the grounds that it contains only boilerplate allegations that fail to state facts sufficient to constitute a cause of action, and it is otherwise uncertain, ambiguous, and unintelligible. SNI further sought dismissal of one cause of action based upon the statute of limitations. SNI simultaneously filed a Motion to Strike certain allegations in the Complaint as improperly pled. The Court sustained the Demurrer with leave to amend on August 25, 2020. The Court also granted the Motion to Strike. Ms. Kelley has amended her original pleading, asserting the same causes of action, to which SNI has filed a responsive pleading. The parties have begun discovery. On April 26, 2021, the same law firm representing Ms. Kelley filed an additional notice with the State of California of the intent to pursue a claim on a representative basis pursuant to PAGA. This notice was served on behalf of Patrick Walters, an employee of SNI. The notice states the intent to pursue relief on behalf of Mr. Walters as well as other alleged aggrieved employees, identified as all current and former hourly or non-exempt employees of SNI, whether hired directly or through staffing agencies. The notice alleges that SNI failed to properly pay Mr. Walters and the other alleged aggrieved employees for all hours worked, failed to properly provide or compensate minimum and overtime wages and for meal and rest breaks, failed to issue compliant wage statements, and failed to reimburse for all necessary business-related expenses, in violation of the California Labor Code and California Industrial Welfare Commission Orders. On July 30, 2021, Mr. Walters filed a Complaint in Merced County Superior Court asserting the claims set forth in his PAGA notice. SNI filed its Answer and Affirmative Defenses in response. Ms. Kelley and Mr. Walters agreed to attempt a joint mediation with Ms. Sofia Rodriguez (see case description below), which was scheduled for August 2022. On June 15, 2022, the United States Supreme Court issued its decision in Viking River Cruises, Inc. v. Moriana Viking River Cruises Sofia Rodriguez v. Sensient Natural Ingredients LLC and One Source Staffing Solutions, Inc. On June 10, 2021, Sofia Rodriguez filed notice with the State of California of the intent to pursue a claim on a representative basis pursuant to PAGA. The notice was served on behalf of Ms. Rodriguez, who worked at SNI through One Source Staffing Solutions, Inc. for five months in 2020. The notice states the intent to pursue relief on behalf of Ms. Rodriguez as well as other alleged aggrieved employees, identified as all non-exempt employees who worked for Defendants in the State of California, and who were paid on an hourly basis. The notice alleges that SNI failed to allow Ms. Rodriguez and the other alleged aggrieved employees to take statutorily required meal and rest periods. The notice further alleges that Defendants suffered and permitted Ms. Rodriguez and other alleged aggrieved employees to work off the clock, failed to pay for all hours worked, failed to properly provide or compensate for minimum and overtime wages, failed to issue compliant wage statements, and failed to pay wages owed upon termination of employment, in violation of the California Labor Code. Ms. Rodriguez also asserts that she was taken off the schedule and not returned to work after complaining about the alleged wage and hour violations set forth in the PAGA notice. On August 17, 2021, Ms. Rodriguez filed a Complaint in Stanislaus County Superior Court asserting the claims set forth in her PAGA notice. SNI filed its Answer and Affirmative Defenses in response. Ms. Rodriguez agreed to attempt a joint mediation with Ms. Monique Kelley and Mr. Patrick Walters (see case descriptions above), which was scheduled for August 2022. SNI withdrew its agreement to a joint mediation following the issuance of the decision in Viking River Cruises, Inc. 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. See Note 2, Divestitures, |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Event [Abstract] | |
Subsequent Event | 14. Subsequent Event On July 21, 2022, the Company announced its quarterly dividend of $0.41 per share would be payable on September 1, 2022. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2021, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change. |
Divestitures (Tables)
Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Divestitures [Abstract] | |
Divestiture and Other Related Costs | The following table summarizes the divestiture & other related costs for the three months ended June 30, 2021: (In thousands) Yogurt Fruit Preparations Fragrances Inks Corporate & Other Total Non-cash impairment charges – Selling and administrative expenses $ - $ 1,062 $ - $ - $ 1,062 Non-cash charges – Cost of products sold - 3 - - 3 Reclassification of foreign currency translation and related items – Selling and administrative expenses - 10,193 - - 10,193 Other costs - Selling and administrative expenses (1) 264 202 (98 ) 62 430 Total $ 264 $ 11,460 $ (98 ) $ 62 $ 11,688 (1) Other costs – Selling and administrative expenses include employee separation costs, professional services, accelerated depreciation, and other related costs. T he following table summarizes the divestiture & other related costs for the six months ended June 30, 2021 (In thousands) Yogurt Fruit Preparations Fragrances Inks Corporate & Other Total Non-cash impairment charges – Selling and administrative expenses $ - $ 1,062 $ - $ - $ 1,062 Non-cash charges – Cost of products sold - 37 (9 ) - 28 Reclassification of foreign currency translation and related items – Selling and administrative expenses - 10,193 - - 10,193 Other costs - Selling and administrative expenses (1) 529 1,216 (205 ) 437 1,977 Total $ 529 $ 12,508 $ (214 ) $ 437 $ 13,260 (1) Other costs – Selling and administrative expenses include environmental remediation, employee separation costs, professional services, accelerated depreciation, and other related costs. |
Operational Improvement Plan (T
Operational Improvement Plan (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Operational Improvement Plan [Abstract] | |
Operational Improvement Plan Costs by Segment | The following table summarizes the Operational Improvement Plan expenses recorded in Selling and Administrative Expenses (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Employee separation costs $ 3 $ 26 $ (24 ) $ 5 Other income (1) - (3,624 ) - (3,624 ) Other costs (2) - 125 - 125 Total expense (income) $ 3 $ (3,473 ) $ (24 ) $ (3,494 ) (1) Other income includes cash received for the early termination of a lease less associated expenses. (2) Other costs include professional services, accelerated depreciation, and other related costs. The following table summarizes the Operational Improvement Plan expenses recorded in Selling and Administrative Expenses Flavors & Extracts Color Asia Pacific Consolidated Employee separation costs $ (16 ) $ 80 $ (68 ) $ (4 ) Other income (1) - (3,624 ) - (3,624 ) Other costs (2) - 1,134 1 1,135 Total expense (income) $ (16 ) $ (2,410 ) $ (67 ) $ (2,493 ) (1) Other income includes cash received for the early termination of a lease less associated expenses. (2) Other costs include professional services, accelerated depreciation, and other related costs. |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Trade Accounts Receivable [Abstract] | |
Changes in Allowance for Doubtful Accounts | The following table summarizes the changes in the allowance for doubtful accounts during the three and six month periods ended June 30, 2022 and 2021: (In thousands) Three Months Ended June 30, 2022 Allowance for Doubtful Accounts Balance at March 31, 2022 $ 4,912 Provision for expected credit losses 547 Accounts written off (729 ) Translation and other activity (236 ) Balance at June 30, 2022 $ 4,494 (In thousands) Three Months Ended June 30, 2021 Allowance for Doubtful Accounts Balance at March 31, 2021 $ 3,614 Provision for expected credit losses 138 Accounts written off (20 ) Translation and other activity 17 Balance at June 30, 2021 $ 3,749 (In thousands) Six Months Ended June 30, 2022 Allowance for Doubtful Accounts Balance at December 31, 2021 $ 4,877 Provision for expected credit losses 832 Accounts written off (1,096 ) Translation and other activity (119 ) Balance at June 30, 2022 $ 4,494 (In thousands) Six Months Ended June 30, 2021 Allowance for Doubtful Accounts Balance at December 31, 2020 $ 3,891 Provision for expected credit losses 294 Accounts written off (373 ) Translation and other activity (63 ) Balance at June 30, 2021 $ 3,749 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Information [Abstract] | |
Segment Information | Operating results by segment for the periods presented are as follows: (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated Three months ended June 30 2022 Revenue from external customers $ 182,415 $ 152,070 $ 37,221 $ - $ 371,706 Intersegment revenue 6,922 4,198 107 - 11,227 Total revenue $ 189,337 $ 156,268 $ 37,328 $ - $ 382,933 Operating income (loss) $ 30,013 $ 31,178 $ 7,721 $ (13,668 ) $ 55,244 Interest expense - - - 3,083 3,083 Earnings (loss) before income taxes $ 30,013 $ 31,178 $ 7,721 $ (16,751 ) $ 52,161 Three months ended June 30 2021 Revenue from external customers $ 174,699 $ 128,830 $ 32,298 $ - $ 335,827 Intersegment revenue 4,702 4,377 19 - 9,098 Total revenue $ 179,401 $ 133,207 $ 32,317 $ - $ 344,925 Operating income (loss) $ 24,536 $ 25,615 $ 5,793 $ (20,191 ) $ 35,753 Interest expense - - - 3,322 3,322 Earnings (loss) before income taxes $ 24,536 $ 25,615 $ 5,793 $ (23,513 ) $ 32,431 (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated Six June 30 2022 Revenue from external customers $ 357,617 $ 295,998 $ 73,612 $ - $ 727,227 Intersegment revenue 14,447 8,708 181 - 23,336 Total revenue $ 372,064 $ 304,706 $ 73,793 $ - $ 750,563 Operating income (loss) $ 57,592 $ 61,835 $ 15,925 $ (27,319 ) $ 108,033 Interest expense - - - 6,076 6,076 Earnings (loss) before income taxes $ 57,592 $ 61,835 $ 15,925 $ (33,395 ) $ 101,957 Six June 30 2021 Revenue from external customers $ 369,360 $ 260,031 $ 66,138 $ - $ 695,529 Intersegment revenue 10,952 8,896 19 - 19,867 Total revenue $ 380,312 $ 268,927 $ 66,157 $ - $ 715,396 Operating income (loss) $ 51,554 $ 52,209 $ 12,545 $ (33,658 ) $ 82,650 Interest expense - - - 6,755 6,755 Earnings (loss) before income taxes $ 51,554 $ 52,209 $ 12,545 $ (40,413 ) $ 75,895 |
Product Information | Product Lines (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended June 30 2022 Flavors, Extracts & Flavor Ingredients $ 130,578 $ - $ - $ 130,578 Natural Ingredients 58,759 - - 58,759 Food & Pharmaceutical Colors - 113,784 - 113,784 Personal Care - 42,116 - 42,116 Inks - 368 - 368 Asia Pacific - - 37,328 37,328 Intersegment Revenue (6,922 ) (4,198 ) (107 ) (11,227 ) Total revenue from external customers $ 182,415 $ 152,070 $ 37,221 $ 371,706 Three months ended June 30 2021 Flavors, Extracts & Flavor Ingredients $ 117,684 $ - $ - $ 117,684 Natural Ingredients 60,302 - - 60,302 Yogurt Fruit Preparations 1,415 - - 1,415 Food & Pharmaceutical Colors - 94,092 - 94,092 Personal Care - 38,323 - 38,323 Inks - 792 - 792 Asia Pacific - - 32,317 32,317 Intersegment Revenue (4,702 ) (4,377 ) (19 ) (9,098 ) Total revenue from external customers $ 174,699 $ 128,830 $ 32,298 $ 335,827 (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Six June 30 2022 Flavors, Extracts & Flavor Ingredients $ 257,096 $ - $ - $ 257,096 Natural Ingredients 114,968 - - 114,968 Food & Pharmaceutical Colors - 216,893 - 216,893 Personal Care - 86,962 - 86,962 Inks - 851 - 851 Asia Pacific - - 73,793 73,793 Intersegment Revenue (14,447 ) (8,708 ) (181 ) (23,336 ) Total revenue from external customers $ 357,617 $ 295,998 $ 73,612 $ 727,227 Six months ended June 30, 2021: Flavors, Extracts & Flavor Ingredients $ 231,502 $ - $ - $ 231,502 Natural Ingredients 122,506 - - 122,506 Fragrances 22,739 - - 22,739 Yogurt Fruit Preparations 3,565 - - 3,565 Food & Pharmaceutical Colors - 187,877 - 187,877 Personal Care - 79,838 - 79,838 Inks - 1,212 - 1,212 Asia Pacific - - 66,157 66,157 Intersegment Revenue (10,952 ) (8,896 ) (19 ) (19,867 ) Total revenue from external customers $ 369,360 $ 260,031 $ 66,138 $ 695,529 |
Geographical Information | Geographic Markets (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended June 30 2022 North America $ 138,885 $ 79,360 $ 2 $ 218,247 Europe 31,165 39,615 50 70,830 Asia Pacific 6,800 16,413 36,807 60,020 Other 5,565 16,682 362 22,609 Total revenue from external customers $ 182,415 $ 152,070 $ 37,221 $ 371,706 Three months ended June 30 2021 North America $ 128,665 $ 57,264 $ 37 $ 185,966 Europe 32,654 37,906 54 70,614 Asia Pacific 8,161 18,543 31,794 58,498 Other 5,219 15,117 413 20,749 Total revenue from external customers $ 174,699 $ 128,830 $ 32,298 $ 335,827 (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Six June 30 2022 North America $ 265,587 $ 149,288 $ 60 $ 414,935 Europe 63,770 81,593 131 145,494 Asia Pacific 16,537 32,429 70,789 119,755 Other 11,723 32,688 2,632 47,043 Total revenue from external customers $ 357,617 $ 295,998 $ 73,612 $ 727,227 Six June 30 2021 North America $ 258,308 $ 120,934 $ 62 $ 379,304 Europe 77,222 75,184 76 152,482 Asia Pacific 17,878 33,381 64,352 115,611 Other 15,952 30,532 1,648 48,132 Total revenue from external customers $ 369,360 $ 260,031 $ 66,138 $ 695,529 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30 (In thousands) 2022 2021 2022 2021 Service cost $ 407 $ 437 $ 815 $ 873 Interest cost 240 214 484 426 Expected return on plan assets (199 ) (185 ) (404 ) (369 ) Recognized actuarial loss 12 69 24 138 Total defined benefit expense $ 460 $ 535 $ 919 $ 1,068 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in OCI | The following table summarizes the changes in OCI during the three and six month periods ended June 30, 2022 and 2021: (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at December 31, 2021 $ 206 $ (353 ) $ (174,481 ) $ (174,628 ) Other comprehensive income (loss) before reclassifications 136 - (28,202 ) (28,066 ) Amounts reclassified from OCI (494 ) 16 - (478 ) Balances at June 30 2022 $ (152 ) $ (337 ) $ (202,683 ) $ (203,172 ) (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at March 31, 2022 $ 106 $ (345 ) $ (174,626 ) $ (174,865 ) Other comprehensive loss before reclassifications (106 ) - (28,057 ) (28,163 ) Amounts reclassified from OCI (152 ) 8 - (144 ) Balances at June 30 2022 $ (152 ) $ (337 ) $ (202,683 ) $ (203,172 ) (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at December 31, 2020 $ 749 $ (1,965 ) $ (157,875 ) $ (159,091 ) Other comprehensive income (loss) before reclassifications 844 - (7,196 ) (6,352 ) Amounts reclassified from OCI (776 ) 104 10,194 9,522 Balances at June 30 2021 $ 817 $ (1,861 ) $ (154,877 ) $ (155,921 ) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at March 31, 2021 $ 1,180 $ (1,913 ) $ (173,497 ) $ (174,230 ) Other comprehensive income before reclassifications 124 - 8,427 8,551 Amounts reclassified from OCI (487 ) 52 10,193 9,758 Balances at June 30 2021 $ 817 $ (1,861 ) $ (154,877 ) $ (155,921 ) (1) Cash Flow Hedges and Pension Items are net of tax. |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Apr. 01, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||
Divestiture of Product Line [Abstract] | |||||||
Proceed from sale of business | $ 0 | $ 36,255 | |||||
Divestiture & other related costs [Abstract] | |||||||
Other costs | $ 0 | $ 11,688 | $ 0 | 13,260 | |||
Corporate & Other [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Other costs | 62 | 437 | |||||
Yogurt Fruit Preparations [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Other costs | 264 | 529 | |||||
Fragrances [Member] | |||||||
Divestiture of Product Line [Abstract] | |||||||
Proceed from sale of business | $ 36,300 | ||||||
Divestiture & other related costs [Abstract] | |||||||
Other costs | 11,460 | 12,508 | |||||
Inks [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Other costs | (98) | (214) | |||||
Cost of Products Sold [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Non-cash charges | 3 | 28 | |||||
Cost of Products Sold [Member] | Corporate & Other [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Non-cash charges | 0 | 0 | |||||
Cost of Products Sold [Member] | Yogurt Fruit Preparations [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Non-cash charges | 0 | 0 | |||||
Cost of Products Sold [Member] | Fragrances [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Non-cash charges | 3 | 37 | |||||
Cost of Products Sold [Member] | Inks [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Non-cash charges | 0 | (9) | |||||
Selling & Administrative Expenses [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Non-cash charges | 1,062 | 1,062 | |||||
Reclassification of foreign currency translation and related items | 10,193 | 10,193 | |||||
Other costs | 430 | [1] | 1,977 | [2] | |||
Divestiture Transactions [Abstract] | |||||||
Expenses recorded related to environmental obligations | 300 | ||||||
Selling & Administrative Expenses [Member] | Corporate & Other [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Non-cash charges | 0 | 0 | |||||
Reclassification of foreign currency translation and related items | 0 | 0 | |||||
Other costs | 62 | [1] | 437 | [2] | |||
Selling & Administrative Expenses [Member] | Yogurt Fruit Preparations [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Non-cash charges | 0 | 0 | |||||
Reclassification of foreign currency translation and related items | 0 | 0 | |||||
Other costs | 264 | [1] | 529 | [2] | |||
Selling & Administrative Expenses [Member] | Fragrances [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Non-cash charges | 1,062 | 1,062 | |||||
Reclassification of foreign currency translation and related items | 10,193 | 10,193 | |||||
Other costs | 202 | [1] | 1,216 | [2] | |||
Selling & Administrative Expenses [Member] | Inks [Member] | |||||||
Divestiture & other related costs [Abstract] | |||||||
Non-cash charges | 0 | 0 | |||||
Reclassification of foreign currency translation and related items | 0 | 0 | |||||
Other costs | $ (98) | [1] | $ (205) | [2] | |||
[1]Other costs – Selling and administrative expenses include employee separation costs, professional services, accelerated depreciation, and other related costs.[2]Other costs – Selling and administrative expenses include environmental remediation, employee separation costs, professional services, accelerated depreciation, and other related costs. |
Operational Improvement Plan (D
Operational Improvement Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Restructuring Costs [Abstract] | ||||||
Accrued liabilities | $ 400 | $ 400 | $ 800 | |||
Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | $ 0 | $ (3,494) | $ 0 | $ (2,493) | ||
Employee Separation Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 5 | (4) | ||||
Other Income [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [1] | (3,624) | (3,624) | |||
Other Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | 125 | 1,135 | |||
Flavors & Extracts [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 3 | (16) | ||||
Flavors & Extracts [Member] | Employee Separation Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 3 | (16) | ||||
Flavors & Extracts [Member] | Other Income [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [1] | 0 | 0 | |||
Flavors & Extracts [Member] | Other Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | 0 | 0 | |||
Color [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | (3,473) | (2,410) | ||||
Color [Member] | Employee Separation Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 26 | 80 | ||||
Color [Member] | Other Income [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [1] | (3,624) | (3,624) | |||
Color [Member] | Other Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | 125 | 1,134 | |||
Asia Pacific [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | (24) | (67) | ||||
Asia Pacific [Member] | Employee Separation Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | (24) | (68) | ||||
Asia Pacific [Member] | Other Income [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [1] | 0 | 0 | |||
Asia Pacific [Member] | Other Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | $ 0 | $ 1 | |||
[1]Other income includes cash received for the early termination of a lease less associated expenses.[2]Other costs include professional services, accelerated depreciation, and other related costs. |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | Jul. 15, 2021 | Jun. 30, 2022 | Dec. 31, 2021 |
Acquisition [Abstract] | |||
Goodwill | $ 403,576 | $ 420,034 | |
Flavor Solutions, Inc. [Member] | |||
Acquisition [Abstract] | |||
Acquisition of new businesses | $ (14,900) | ||
Held back amount of cash | $ 1,000 | ||
Post-closing indemnification claims satisfy period | 12 months | ||
Net assets acquired | $ 400 | ||
Goodwill | 9,500 | ||
Flavor Solutions, Inc. [Member] | Customer Relationships [Member] | |||
Acquisition [Abstract] | |||
Intangibles assets acquired | $ 5,000 |
Trade Accounts Receivable (Deta
Trade Accounts Receivable (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Segment | Jun. 30, 2021 USD ($) | |
Trade Accounts Receivable [Abstract] | ||||
Number of portfolio segments | Segment | 1 | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 4,912 | $ 3,614 | $ 4,877 | $ 3,891 |
Provision for expected credit losses | 547 | 138 | 832 | 294 |
Accounts written off | (729) | (20) | (1,096) | (373) |
Translation and other activity | (236) | 17 | (119) | (63) |
Ending balance | $ 4,494 | $ 3,749 | $ 4,494 | $ 3,749 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Inventories [Abstract] | ||
Inventories, including finished and in-process products | $ 294.4 | $ 280.2 |
Raw materials and supplies | $ 157.7 | $ 131.4 |
Fair Value (Details)
Fair Value (Details) - Level 2 [Member] - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Investments, Fair Value Disclosure [Abstract] | ||
Forward exchange contract, Asset | $ 0.3 | $ 0.1 |
Carrying Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | 499.2 | 503.5 |
Fair Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | $ 497.9 | $ 520 |
Segment Information, Operating
Segment Information, Operating Results by Segment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Segment | Jun. 30, 2021 USD ($) | |
Segment Information [Abstract] | ||||
Number of reportable segments | Segment | 3 | |||
Revenue [Abstract] | ||||
Revenue | $ 371,706 | $ 335,827 | $ 727,227 | $ 695,529 |
Operating income (loss) | 55,244 | 35,753 | 108,033 | 82,650 |
Interest expense | 3,083 | 3,322 | 6,076 | 6,755 |
Earnings (loss) before income taxes | 52,161 | 32,431 | 101,957 | 75,895 |
Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 182,415 | 174,699 | 357,617 | 369,360 |
Operating income (loss) | 30,013 | 24,536 | 57,592 | 51,554 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings (loss) before income taxes | 30,013 | 24,536 | 57,592 | 51,554 |
Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 152,070 | 128,830 | 295,998 | 260,031 |
Operating income (loss) | 31,178 | 25,615 | 61,835 | 52,209 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings (loss) before income taxes | 31,178 | 25,615 | 61,835 | 52,209 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 37,221 | 32,298 | 73,612 | 66,138 |
Operating income (loss) | 7,721 | 5,793 | 15,925 | 12,545 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings (loss) before income taxes | 7,721 | 5,793 | 15,925 | 12,545 |
Reportable Segments [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 382,933 | 344,925 | 750,563 | 715,396 |
Reportable Segments [Member] | Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 189,337 | 179,401 | 372,064 | 380,312 |
Reportable Segments [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 156,268 | 133,207 | 304,706 | 268,927 |
Reportable Segments [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 37,328 | 32,317 | 73,793 | 66,157 |
Intersegment Revenue [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 11,227 | 9,098 | 23,336 | 19,867 |
Intersegment Revenue [Member] | Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 6,922 | 4,702 | 14,447 | 10,952 |
Intersegment Revenue [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 4,198 | 4,377 | 8,708 | 8,896 |
Intersegment Revenue [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 107 | 19 | 181 | 19 |
Corporate & Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating income (loss) | (13,668) | (20,191) | (27,319) | (33,658) |
Interest expense | 3,083 | 3,322 | 6,076 | 6,755 |
Earnings (loss) before income taxes | $ (16,751) | $ (23,513) | $ (33,395) | $ (40,413) |
Segment Information, Revenue fr
Segment Information, Revenue from External Customers by Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue [Abstract] | ||||
Revenue | $ 371,706 | $ 335,827 | $ 727,227 | $ 695,529 |
Flavors, Extracts & Flavor Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 130,578 | 117,684 | 257,096 | 231,502 |
Natural Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 58,759 | 60,302 | 114,968 | 122,506 |
Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 22,739 | |||
Yogurt Fruit Preparations [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 1,415 | 3,565 | ||
Food & Pharmaceutical Colors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 113,784 | 94,092 | 216,893 | 187,877 |
Personal Care [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 42,116 | 38,323 | 86,962 | 79,838 |
Inks [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 368 | 792 | 851 | 1,212 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 37,328 | 32,317 | 73,793 | 66,157 |
Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 182,415 | 174,699 | 357,617 | 369,360 |
Flavors & Extracts [Member] | Flavors, Extracts & Flavor Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 130,578 | 117,684 | 257,096 | 231,502 |
Flavors & Extracts [Member] | Natural Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 58,759 | 60,302 | 114,968 | 122,506 |
Flavors & Extracts [Member] | Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 22,739 | |||
Flavors & Extracts [Member] | Yogurt Fruit Preparations [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 1,415 | 3,565 | ||
Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 152,070 | 128,830 | 295,998 | 260,031 |
Color [Member] | Food & Pharmaceutical Colors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 113,784 | 94,092 | 216,893 | 187,877 |
Color [Member] | Personal Care [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 42,116 | 38,323 | 86,962 | 79,838 |
Color [Member] | Inks [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 368 | 792 | 851 | 1,212 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 37,221 | 32,298 | 73,612 | 66,138 |
Asia Pacific [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 37,328 | 32,317 | 73,793 | 66,157 |
Intersegment Revenue [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 11,227 | 9,098 | 23,336 | 19,867 |
Intersegment Revenue [Member] | Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 6,922 | 4,702 | 14,447 | 10,952 |
Intersegment Revenue [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 4,198 | 4,377 | 8,708 | 8,896 |
Intersegment Revenue [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | $ 107 | $ 19 | $ 181 | $ 19 |
Segment Information, Revenue _2
Segment Information, Revenue from External Customers by Geographic Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue [Abstract] | ||||
Revenue | $ 371,706 | $ 335,827 | $ 727,227 | $ 695,529 |
North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 218,247 | 185,966 | 414,935 | 379,304 |
Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 70,830 | 70,614 | 145,494 | 152,482 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 60,020 | 58,498 | 119,755 | 115,611 |
Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 22,609 | 20,749 | 47,043 | 48,132 |
Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 182,415 | 174,699 | 357,617 | 369,360 |
Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 152,070 | 128,830 | 295,998 | 260,031 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 37,221 | 32,298 | 73,612 | 66,138 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 138,885 | 128,665 | 265,587 | 258,308 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 31,165 | 32,654 | 63,770 | 77,222 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 6,800 | 8,161 | 16,537 | 17,878 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 5,565 | 5,219 | 11,723 | 15,952 |
Reportable Geographical Components [Member] | Color [Member] | North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 79,360 | 57,264 | 149,288 | 120,934 |
Reportable Geographical Components [Member] | Color [Member] | Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 39,615 | 37,906 | 81,593 | 75,184 |
Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 16,413 | 18,543 | 32,429 | 33,381 |
Reportable Geographical Components [Member] | Color [Member] | Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 16,682 | 15,117 | 32,688 | 30,532 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 2 | 37 | 60 | 62 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 50 | 54 | 131 | 76 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 36,807 | 31,794 | 70,789 | 64,352 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | $ 362 | $ 413 | $ 2,632 | $ 1,648 |
Retirement Plans (Details)
Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 407 | $ 437 | $ 815 | $ 873 |
Interest cost | 240 | 214 | 484 | 426 |
Expected return on plan assets | (199) | (185) | (404) | (369) |
Recognized actuarial loss | 12 | 69 | 24 | 138 |
Total defined benefit expense | $ 460 | $ 535 | $ 919 | $ 1,068 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
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 | $ 37 | $ 37 | $ 48.6 | ||
Amount of gains (losses) reclassified into net earnings | $ 0.5 | $ 0.8 | |||
Foreign Currency Denominated Debt, Net Investment Hedging [Member] | |||||
Derivative instruments and hedging activity for the period [Abstract] | |||||
Carrying value of foreign denominated debt | 265.4 | 265.4 | $ 289.5 | ||
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ (16.2) | 2.7 | $ (24.1) | (6.9) | |
Amount of gains (losses) reclassified into net earnings | $ (4.2) | $ (4.2) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Taxes [Abstract] | ||||
Effective income tax rates | 25.90% | 20% | 25.70% | 24.10% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 961,710 | $ 925,646 | $ 938,425 | $ 934,336 | |
Other comprehensive income (loss) before reclassifications | (28,163) | 8,551 | (28,066) | (6,352) | |
Amounts reclassified from OCI | (144) | 9,758 | (478) | 9,522 | |
Ending balance | 958,967 | 944,277 | 958,967 | 944,277 | |
Accumulated Other Comprehensive (Loss) Income [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (174,865) | (174,230) | (174,628) | (159,091) | |
Ending balance | (203,172) | (155,921) | (203,172) | (155,921) | |
Cash Flow Hedges [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | 106 | 1,180 | 206 | 749 |
Other comprehensive income (loss) before reclassifications | [1] | (106) | 124 | 136 | 844 |
Amounts reclassified from OCI | [1] | (152) | (487) | (494) | (776) |
Ending balance | [1] | (152) | 817 | (152) | 817 |
Pension Items [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | (345) | (1,913) | (353) | (1,965) |
Other comprehensive income (loss) before reclassifications | [1] | 0 | 0 | 0 | 0 |
Amounts reclassified from OCI | [1] | 8 | 52 | 16 | 104 |
Ending balance | [1] | (337) | (1,861) | (337) | (1,861) |
Foreign Currency Items [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (174,626) | (173,497) | (174,481) | (157,875) | |
Other comprehensive income (loss) before reclassifications | (28,057) | 8,427 | (28,202) | (7,196) | |
Amounts reclassified from OCI | 0 | 10,193 | 0 | 10,194 | |
Ending balance | $ (202,683) | $ (154,877) | $ (202,683) | $ (154,877) | |
[1]Cash Flow Hedges and Pension Items are net of tax. |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies [Abstract] | |
Employee working period in SNI | 5 months |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] | Jul. 21, 2022 $ / shares |
Subsequent Event [Abstract] | |
Dividend declared date | Jul. 21, 2022 |
Dividend payable (in dollars per share) | $ 0.41 |
Dividend payable date | Sep. 01, 2022 |