Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 07, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
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, $0.10 par value | ||
Trading Symbol | SXT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,338,132,789 | ||
Entity Common Stock, Shares Outstanding | 42,086,535 | ||
Auditor Firm ID | 42 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Milwaukee, Wisconsin |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF EARNINGS [Abstract] | |||
Revenue | $ 1,437,039 | $ 1,380,264 | $ 1,332,001 |
Cost of products sold | 947,928 | 925,603 | 908,254 |
Selling and administrative expenses | 292,360 | 284,633 | 271,091 |
Operating income | 196,751 | 170,028 | 152,656 |
Interest expense | 14,547 | 12,544 | 14,811 |
Earnings before income taxes | 182,204 | 157,484 | 137,845 |
Income taxes | 41,317 | 38,739 | 28,373 |
Net earnings | $ 140,887 | $ 118,745 | $ 109,472 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 3.36 | $ 2.82 | $ 2.59 |
Diluted (in dollars per share) | $ 3.34 | $ 2.81 | $ 2.59 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 41,888 | 42,077 | 42,301 |
Diluted (in shares) | 42,213 | 42,258 | 42,346 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net earnings | $ 140,887 | $ 118,745 | $ 109,472 |
Cash flow hedges adjustment, net of tax (benefit) expense of $(471), $(430), and $524, respectively | (805) | (543) | 948 |
Pension adjustment, net of tax (benefit) expense of $(462), $577, and $(475), respectively | (1,439) | 1,612 | (1,293) |
Foreign currency translation on net investment hedges | 19,340 | 17,937 | (24,044) |
Tax effect of current year activity on net investment hedges | (4,804) | (4,455) | 5,973 |
Foreign currency translation on long-term intercompany loans | (2,468) | 13,798 | (7,731) |
Tax effect of current year activity on intercompany long-term loans | (2,408) | (3,990) | 3,757 |
Reclassification of cumulative translation to net earnings | 0 | 10,203 | (8,625) |
Other foreign currency translation | (33,476) | (50,099) | 34,932 |
Total comprehensive income | $ 114,827 | $ 103,208 | $ 113,389 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Cash flow hedges adjustment, tax (benefit) expense | $ (471) | $ (430) | $ 524 |
Pension adjustment, tax (benefit) expense | $ (462) | $ 577 | $ (475) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 20,921 | $ 25,740 |
Trade accounts receivable | 302,109 | 261,121 |
Inventories | 564,110 | 411,635 |
Prepaid expenses and other current assets | 47,640 | 42,657 |
Total current assets | 934,780 | 741,153 |
Other assets | 96,609 | 92,952 |
Deferred tax assets | 32,717 | 29,901 |
Intangible assets, net | 18,600 | 14,975 |
Goodwill | 415,715 | 420,034 |
Property, Plant, and Equipment: | ||
Land | 31,444 | 31,028 |
Buildings | 322,268 | 315,207 |
Machinery and equipment | 722,294 | 715,344 |
Construction in progress | 65,809 | 32,801 |
Property, plant, and equipment, gross | 1,141,815 | 1,094,380 |
Less accumulated depreciation | (658,622) | (647,902) |
Property, plant, and equipment, net | 483,193 | 446,478 |
Total assets | 1,981,614 | 1,745,493 |
Current Liabilities: | ||
Trade accounts payable | 142,365 | 125,519 |
Accrued salaries, wages, and withholdings from employees | 43,738 | 40,939 |
Other accrued expenses | 51,231 | 46,292 |
Income taxes | 14,446 | 11,016 |
Short-term borrowings | 20,373 | 8,539 |
Total current liabilities | 272,153 | 232,305 |
Deferred tax liabilities | 15,977 | 14,349 |
Other liabilities | 37,191 | 28,829 |
Accrued employee and retiree benefits | 26,364 | 28,579 |
Long-term debt | 630,331 | 503,006 |
Shareholders' Equity: | ||
Common stock, par value $0.10 a share, authorized 100,000,000 shares; issued 53,954,874 shares | 5,396 | 5,396 |
Additional paid-in capital | 124,043 | 111,352 |
Earnings reinvested in the business | 1,702,700 | 1,630,713 |
Treasury stock, 12,058,773 and 12,107,549 shares, respectively, at cost | (631,853) | (634,408) |
Accumulated other comprehensive loss | (200,688) | (174,628) |
Total shareholders' equity | 999,598 | 938,425 |
Total liabilities and shareholders' equity | $ 1,981,614 | $ 1,745,493 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Shareholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 53,954,874 | 53,954,874 |
Treasury stock, shares (in shares) | 12,058,773 | 12,107,549 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | |||
Net earnings | $ 140,887 | $ 118,745 | $ 109,472 |
Adjustments to arrive at net cash provided by operating activities: | |||
Depreciation and amortization | 52,467 | 52,051 | 49,641 |
Share-based compensation expense | 16,138 | 9,573 | 5,608 |
Net loss (gain) on assets | 276 | 331 | (252) |
Net (gain) loss on divestitures and other charges | (2,532) | 14,021 | 6,904 |
Deferred income taxes | (11,010) | (6,071) | (8,705) |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (46,086) | (34,571) | (11,357) |
Inventories | (159,014) | (36,323) | 46,828 |
Prepaid expenses and other assets | (5,055) | (6,057) | (12,868) |
Trade accounts payable and other accrued expenses | 17,489 | 21,326 | 15,524 |
Accrued salaries, wages, and withholdings from employees | 3,486 | 7,321 | 15,140 |
Income taxes | 4,422 | 4,275 | 22 |
Other liabilities | 602 | 597 | 2,823 |
Net cash provided by operating activities | 12,070 | 145,218 | 218,780 |
Cash Flows from Investing Activities: | |||
Acquisition of property, plant, and equipment | (79,322) | (60,788) | (52,162) |
Proceeds from sale of assets | 264 | 216 | 1,075 |
Proceeds from divestiture of businesses | 2,532 | 37,790 | 12,595 |
Acquisition of new businesses | (22,714) | (13,875) | 0 |
Other investing activities | 792 | 1,097 | 5,071 |
Net cash used in investing activities | (98,448) | (35,560) | (33,421) |
Cash Flows from Financing Activities | |||
Proceeds from additional borrowings | 328,597 | 112,194 | 36,667 |
Debt payments | (171,447) | (110,168) | (154,348) |
Purchase of treasury stock | 0 | (42,511) | 0 |
Dividends paid | (68,915) | (66,694) | (66,057) |
Other financing activities | (2,056) | (582) | (415) |
Net cash provided by (used in) financing activities | 86,179 | (107,761) | (184,153) |
Effect of exchange rate changes on cash and cash equivalents | (4,620) | (927) | 2,411 |
Net (decrease) increase in cash and cash equivalents | (4,819) | 970 | 3,617 |
Cash and cash equivalents at beginning of year | 25,740 | 24,770 | 21,153 |
Cash and cash equivalents at end of year | 20,921 | 25,740 | 24,770 |
Cash paid during the year for: | |||
Interest | 14,716 | 12,593 | 14,751 |
Income taxes | 48,242 | 29,224 | 44,755 |
Capitalized interest | $ 910 | $ 471 | $ 514 |
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 (Loss) Income [Member] | Total |
Beginning balance at Dec. 31, 2019 | $ 5,396 | $ 98,425 | $ 1,536,100 | $ (595,324) | $ (163,008) | |
Beginning balance (in shares) at Dec. 31, 2019 | 11,682,636 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 109,472 | $ 109,472 | ||||
Other comprehensive income (loss) | 3,917 | |||||
Cash dividends paid | (66,057) | |||||
Share-based compensation | 5,608 | |||||
Non-vested stock issued upon vesting | (1,352) | $ 1,352 | ||||
Non-vested stock issued upon vesting (in shares) | (26,515) | |||||
Benefit plans | 241 | $ 833 | ||||
Benefit plans (in shares) | (16,344) | |||||
Other | (13) | (853) | $ (401) | |||
Other (in shares) | 7,850 | |||||
Ending balance at Dec. 31, 2020 | 5,396 | 102,909 | 1,578,662 | $ (593,540) | (159,091) | |
Ending balance (in shares) at Dec. 31, 2020 | 11,647,627 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 118,745 | 118,745 | ||||
Other comprehensive income (loss) | (15,537) | |||||
Cash dividends paid | (66,694) | |||||
Share-based compensation | 9,573 | |||||
Non-vested stock issued upon vesting | (1,264) | $ 1,264 | ||||
Non-vested stock issued upon vesting (in shares) | (24,711) | |||||
Benefit plans | 338 | $ 756 | ||||
Benefit plans (in shares) | (14,791) | |||||
Purchase of treasury stock | $ (42,511) | |||||
Purchase of treasury stock (in shares) | 492,045 | |||||
Other | (204) | $ (377) | ||||
Other (in shares) | 7,379 | |||||
Ending balance at Dec. 31, 2021 | 5,396 | 111,352 | 1,630,713 | $ (634,408) | (174,628) | $ 938,425 |
Ending balance (in shares) at Dec. 31, 2021 | 12,107,549 | 12,107,549 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 140,887 | $ 140,887 | ||||
Other comprehensive income (loss) | (26,060) | |||||
Cash dividends paid | (68,915) | |||||
Share-based compensation | 16,138 | |||||
Non-vested stock issued upon vesting | (3,239) | $ 3,239 | ||||
Non-vested stock issued upon vesting (in shares) | (61,821) | |||||
Benefit plans | 560 | $ 618 | ||||
Benefit plans (in shares) | (11,786) | |||||
Other | (768) | 15 | $ (1,302) | |||
Other (in shares) | 24,831 | |||||
Ending balance at Dec. 31, 2022 | $ 5,396 | $ 124,043 | $ 1,702,700 | $ (631,853) | $ (200,688) | $ 999,598 |
Ending balance (in shares) at Dec. 31, 2022 | 12,058,773 | 12,058,773 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 1.64 | $ 1.58 | $ 1.56 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Operations Sensient Technologies Corporation, together with its subsidiaries (the Company or Sensient), is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients. The Company uses advanced technologies at facilities around the world to develop specialty food and beverage systems; personal care, essential oils, pharmaceutical, and nutraceutical systems; specialty colors; and other specialty and fine chemicals. The Company’s three reportable segments are the Flavors & Extracts Group and the Color Group, which are managed on a product basis, and the Asia Pacific Group, which is managed on a geographic basis. The Company’s corporate expenses, restructuring including operational improvement plans, divestiture, share-based compensation, the one-time COVID-19 employee payment in 2020, and other costs are included in the “Corporate & Other” category. In the second quarter of 2020, the Company divested its inks product line; in the third quarter of 2020, the Company divested its yogurt fruit preparations product line; and in the second quarter of 2021, the Company divested its fragrances (excluding essential oils) product line. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets, liabilities, revenue, and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. Revenue Recognition The Company recognizes revenue at the transfer of control of its products to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve this core principle, the Company applies the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies the performance obligations The Company considers customer purchase orders, which in some cases are governed by master sales agreements, coupled with the Company’s purchase order acceptances, to be the contracts with the customer. For each contract, the Company considers the identified performance obligation to be the promise to transfer products. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment and then determines the net consideration to which the Company expects to be entitled. In addition, the Company assesses the customer’s ability to pay as part of its evaluation of the contract. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under Accounting Standards Codification (ASC) 606-10-32-18, and determined that its contracts do not have a significant financing component. The Company allocates the transaction price to each distinct product based on the relative standalone selling price. Revenue is recognized when control of the product is transferred to the customer, the customer is obligated to pay the Company, and the Company has no remaining obligations, which is typically at shipment. In certain locations, primarily outside the United States, product delivery terms may vary. Thus, in such locations, the point at which control of the product transfers to the customer and revenue recognition occurs will vary accordingly. Customer returns of non-conforming products are estimated at the time revenue is recognized. In certain customer relationships, volume rebates exist, which are recognized according to the terms and conditions of the contractual relationship. Customer returns, rebates, and discounts are not material to the Company’s consolidated financial statements. The Company has elected to recognize the revenue and cost for freight and shipping when control over the products has transferred to the customer. The Company has elected to immediately expense contract costs related to obtaining a contract as the amortization period of the asset the Company otherwise would have recognized would have been less than a year. 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 (See Note 12, Segment and Geographic Information, . Cost of Products Sold Cost of products sold includes materials, labor, and overhead expenses incurred in the manufacture of our products. Cost of products sold also includes charges for obsolete and slow-moving inventories as well as costs for quality control, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, other costs of our internal distribution network, and costs incurred for shipping and handling. The Company records fees billed to customers for shipping and handling as revenue. Selling and Administrative Expenses Selling and administrative expenses primarily include the salaries and related costs for executive, finance, accounting, human resources, information technology, research and development, and legal personnel as well as salaries and related costs of salespersons and commissions paid to external sales agents. Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of acquisition as cash equivalents. Accounts Receivable Receivables are recorded at their face amount, less an allowance for losses on doubtful accounts. The allowance for doubtful accounts is based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Specific accounts are written off against the allowance for doubtful accounts when it is deemed that the receivable is no longer collectible. Inventories Inventories are stated at the lower of cost or net realizable value. Net realizable value is determined on the basis of estimated realizable values. Cost is determined using the first-in, first-out (FIFO) method. Inventories include finished and in-process products totaling $385.2 million and $280.2 million at December 31, 2022 and 2021, respectively, and raw materials and supplies of $178.9 million and $131.4 million at December 31, 2022 and 2021, respectively. The Company recorded a non-cash charge of $0.1 million and $1.8 million in related to the divested product lines in 2021 and 2020, respectively. There were no non-cash charges recorded in 2022 related to the divested product lines. The non-cash charge reduced the carrying value of certain inventories, as they were determined to be excess. See Note 14, Divestitures , for additional information. Property, Plant, and Equipment Property, plant, and equipment are recorded at cost reduced by accumulated depreciation. Depreciation is provided over the estimated useful life of the related asset using the straight-line method for financial reporting. The estimated useful lives for buildings and leasehold improvements range from 5 to 40 years. Machinery and equipment have estimated useful lives ranging from 3 to 20 years. Interest costs on significant projects constructed or developed for the Company’s own use are capitalized as part of the asset. Goodwill and Other Intangible Assets The carrying value of goodwill is evaluated for impairment on an annual basis or more frequently when an indicator of impairment occurs. The impairment assessment includes comparing the carrying amount of net assets, including goodwill, of each reporting unit to its respective fair value as of the date of the assessment. Fair value was estimated based upon an evaluation of the reporting unit’s estimated future discounted cash flows as well as the public trading and private transaction valuation multiples for comparable companies. The Company performed such a quantitative analysis in 2022, which indicated a substantial premium compared to the carrying value of net assets, including goodwill, at the reporting unit level. In the fourth quarter of 2019, as a result of the Company meeting the assets held for sale criteria for its divestitures of its inks and fragrances (excluding its essential oils product line) product lines, the Company allocated $8.4 million of goodwill to those disposal groups. The $8.4 million of goodwill related to the disposal groups was determined to be fully impaired. In 2020, the fair value of the disposal groups decreased, which resulted in the previously allocated goodwill of $2.2 million to be reallocated to its respective financial reporting units. In 2021, the fair value of the disposal groups increased, which resulted in an additional $0.8 million of goodwill allocated to the disposal groups. See Note 14, Divestitures, for additional details. The cost of intangible assets with determinable useful lives is amortized on a straight-line basis to reflect the pattern of economic benefits consumed, ranging from 5 to 25 years. These assets include technological know-how, customer relationships, patents, trademarks, trade secrets, and non-compete agreements, among others. Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if potential impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on the difference between fair value and carrying value. Impairment losses were recorded as a result of the Company’s divestiture of its inks product line and its divestiture of its fragrances product line (excluding its essential oils product line). See Note 14 , Divestitures , for additional information. Leases The Company enters into lease agreements for certain office space, warehouses, land, and equipment in the ordinary course of business. The Company determines if an arrangement is a lease at inception and evaluates the lease classification (i.e., operating lease or financing lease) at that time. Lease arrangements with an initial term of 12 months or less are considered short-term leases and are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the term of the lease. Operating leases are included in Other Assets Other Accrued Expenses Other Liabilities The Company uses its incremental borrowing rate on the commencement date for determining the present value of lease payments. The Company considers the likelihood of exercising options to extend or terminate the lease when determining the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected the practical expedient of accounting for the lease and non-lease components of each lease as a single lease component. Derivative Financial Instruments The Company selectively uses derivative financial instruments to reduce market risk associated with changes in foreign currency and interest rate exposures, which exist as part of ongoing business operations. All derivative transactions are authorized and executed pursuant to the Company’s risk management policies and procedures, which strictly prohibit the use of financial instruments for speculative trading purposes. The primary objectives of the foreign exchange risk management activities are to understand and mitigate the impact of potential foreign exchange fluctuations on the Company’s financial results and its economic well-being. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. These risk management transactions may involve the use of foreign currency derivatives to protect against exposure resulting from recorded accounts receivable and payable. The Company may utilize forward exchange contracts, generally with maturities of less than 18 months, which qualify as cash flow hedges. Generally, these foreign exchange contracts are intended to offset the effect of exchange rate fluctuations on non-functional currency denominated sales and purchases. For derivative instruments that are designated as cash flow hedges, gains and losses are deferred in Accumulated Other Comprehensive Income For hedges designated as cash flow hedges, the Company elects critical terms that match at the onset of the hedge transaction. Hedge accounting is permitted only if the hedge meets the critical terms match requirements. The Company reviews the critical terms at each effectiveness testing date to ensure the respective terms match; therefore, achieving a highly effective hedge. Interest Rate Hedging The Company is exposed to interest rate risk through its corporate borrowing activities. The objective of the Company’s interest rate risk management activities is to manage the levels of the Company’s fixed and floating interest rate exposure to be consistent with the Company’s preferred mix. The interest rate risk management program may include entering into interest rate swaps, which qualify as fair value hedges, when there is a desire to modify the Company’s exposure to interest rates. Gains or losses on fair value hedges are recognized in earnings, net of gains and losses on the fair value of the hedged instruments. Net Investments Hedging The Company is exposed to risk related to its net investments in foreign subsidiaries. As part of its risk management activities, the Company may enter into foreign-denominated debt to be used as a non-derivative instrument to hedge the Company’s net investment in foreign subsidiaries. The change in the fair value of debt designated as a net investment hedge is recorded in foreign currency translation in OCI. Commodity Purchases The Company purchases certain commodities in the normal course of business that result in physical delivery of the goods and, hence, are excluded from ASC 815, Derivatives and Hedging Translation of Foreign Currencies For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of foreign operations are translated into U.S. dollars at current exchange rates. Revenue and expense accounts are translated into U.S. dollars at average exchange rates prevailing during the year. Adjustments resulting from the translation of foreign accounts into U.S. dollars are recorded in foreign currency translation in OCI. Transaction gains and losses that occur as a result of transactions denominated in non-functional currencies are included in earnings and were not significant during the years ended December 31, 2022, 2021, and 2020. Share-Based Compensation Share-based compensation expense is recognized over the vesting period of each award based on the fair value of the instrument at the time of grant as summarized in Note 8, Share-Based Compensation. Income Taxes The Company recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax liability or asset for the estimated future tax effects attributable to temporary differences and carryforwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Deferred tax assets are reduced, if necessary, by the amount of any tax benefits for which the utilization of the asset is not considered likely. Earnings Per Share The difference between basic and diluted earnings per share (EPS) is the dilutive effect of non-vested stock. Diluted EPS assumes that non-vested stock has vested. The following table sets forth the computation of basic and diluted EPS for the years ended December 31: Years Ended December 31, (In thousands except per share amounts) 2022 2021 2020 Numerator: Net earnings $ 140,887 $ 118,745 $ 109,472 Denominator: Denominator for basic EPS - weighted average common shares 41,888 42,077 42,301 Effect of dilutive securities 325 181 45 Denominator for diluted EPS - diluted weighted average shares outstanding 42,213 42,258 42,346 Earnings per Common Share: Basic $ 3.36 $ 2.82 $ 2.59 Diluted $ 3.34 $ 2.81 $ 2.59 The Company has a share-based compensation plan under which employees may be granted share-based awards in which non-forfeitable dividends are paid on non-vested shares for certain awards. As such, these shares are considered participating securities under the two-class method of calculating EPS as described in ASC 260, Earnings per Share. All EPS amounts are presented on a diluted basis unless otherwise noted. Accumulated Other Comprehensive Income (Loss) Accumulated OCI is composed primarily of foreign currency translation, pension liability, and unrealized gains or losses on cash flow hedges. See Note 10, Accumulated Other Comprehensive Income, Research and Development Research and development costs are recorded in S elling and Administrative Expenses in the year they are incurred. Research and development costs were $ million, $ million, and $ million, during the years ended December 31, 2022, 2021, and 2020, respectively. Advertising Advertising costs are recorded in Selling and Administrative Expenses as they are incurred. Advertising costs were $ million, $ million, and $2.0 million, during the years ended December 31, 2022, 2021, and 2020, respectively. Environmental Liabilities The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and reasonably estimable. Such accruals are adjusted as further information becomes available or as circumstances change. Estimated future expenditures are discounted to their present value when the timing and amount of future cash flows are fixed and readily determinable. Recoveries of remediation costs from other parties, if any, are recognized as assets when their receipt is realizable. Subsequent Events The Company performed an evaluation of subsequent events through the date these financial statements were issued. See Note 17, Subsequent Event |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions [Abstract] | |
Acquisitions | 2. Acquisitions On July 15, 2021, the Company acquired substantially all of the assets of Flavor Solutions, Inc . On October 3, 2022, the Company acquired Endemix Doğal Maddeler A.Ş. Teknoloji Yatırımları ve Danışmanlık Sanayi ve Ticaret A.Ş. |
Trade Accounts Receivable
Trade Accounts Receivable | 12 Months Ended |
Dec. 31, 2022 | |
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-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 for the years ended December 31, 2022 and 2021: (In thousands) Allowance for Doubtful Accounts Balance at December 31, 2020 $ 3,891 Provision for expected credit losses 1,631 Accounts written off (434 ) Translation and other activity (211 ) Balance at December 31, 2021 $ 4,877 Provision for expected credit losses 944 Accounts written off (1,305 ) Translation and other activity (80 ) Balance at December 31, 2022 $ 4,436 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets At December 31, 2022 and 2021, goodwill is the only intangible asset that is not subject to amortization. The following table summarizes intangible assets with determinable useful lives by major category as of December 31, 2022 and 2021: 2022 2021 (In thousands except weighted average amortization years) Weighted Average Amortization Years Cost Accumulated Amortization Cost Accumulated Amortization Technological know-how 14.4 $ 12,005 $ (3,383 ) $ 8,870 $ (2,314 ) Customer relationships 19.0 9,697 (2,691 ) 7,084 (2,269 ) Patents, trademarks, non-compete agreements, and other 15.6 11,596 (8,624 ) 11,606 (8,002 ) Total finite-lived intangibles 16.2 $ 33,298 $ (14,698 ) $ 27,560 $ (12,585 ) Amortization of intangible assets was $2.0 million in 2022, $1.8 million in 2021, and $1.5 million in 2020. Estimated amortization expense, for the five years subsequent to December 31, 2022, is $2.3 million in 2023; $2.0 million in 2024; $2.0 million in 2025; $1.8 million in 2026; and $1.6 million in 2027. The changes in goodwill for the years ended December 31, 2022 and 2021, by reportable business segment, were as follows: (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Balance as of December 31 2020 $ 112,370 $ 305,263 $ 5,657 $ 423,290 Currency translation impact (17,298 ) 6,001 (603 ) (11,900 ) Goodwill related to divestitures (1) (812 ) — — (812 ) Acquisitions (2) 9,456 — — 9,456 Balance as of December 31 2021 $ 103,716 $ 311,264 $ 5,054 $ 420,034 Currency translation impact (2,796 ) (10,625 ) (338 ) (13,759 ) Acquisitions (2) — 9,440 — 9,440 Balance as of December 31 2022 $ 100,920 $ 310,079 $ 4,716 $ 415,715 (1) In the fourth quarter of 2019, the Company met all of the assets held for sale criteria related to the divestitures of its inks product line and fragrances product line (excluding its essential oils product line). Goodwill was allocated to those disposal groups and was determined to be fully impaired based on the estimated fair value of each of the disposal groups. In 2021, the fair value of the fragrances product line (excluding its essential oils product line) disposal group increased, which increased the value of goodwill allocated to the disposal group by $0.8 million. See Note 14, Divestitures, for additional information. (2) In 2021, the Company acquired Flavor Solutions, Inc. In 2022, the Company acquired Endemix. See Note 2, Acquisitions, for additional information. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 5. Leases The Company leases certain office space, warehouses, land, and equipment under operating lease arrangements. Some of the Company’s leases include options to extend the leases for up to an additional five years. Some of the Company’s lease agreements also include rental payments that are adjusted periodically for inflation (i.e., CPI index). The Company recorded operating lease expense, which includes short-term lease expense and variable lease costs, of $11.3 million, during the years ended December 2022, 2021, and For the years ended December 2022, 2021, and the Company paid $9.3 million, , and $ million, respectively, in cash for operating leases, not including short-term lease expense or variable lease costs. The Company entered into operating leases that resulted in $17.2 million, and $ million of right-of-use assets in exchange for operating lease obligations for the years ended December The Company included $36.3 million and $26.5 million of right-of-use assets in Other Assets Other Accrued Expenses Other Liabilities The Company’s weighted average remaining operating lease term was years as of December The Company’s weighted average discount rate for operating leases was as of December As of December maturities of operating lease liabilities for future annual periods are as follows: (In s) Year ending December 2023 $ 9,297 2024 8,218 2025 4,827 2026 3,559 2027 2,969 Thereafter 12,035 Total lease payments 40,905 Less imputed interest (4,638 ) Present value of lease liabilities $ 36,267 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt [Abstract] | |
Debt | 6. Debt Long-term Debt Long-term debt consisted of the following unsecured obligations at December 31: (In thousands) 2022 2021 3.66 November 2023 $ 75,000 $ 75,000 3.65 May 2024 27,000 27,000 4.19 November 2025 25,000 25,000 1.85 November 2022 - 76,017 3.06 November 2023 40,945 43,487 1.27 May 2024 53,527 56,850 1.71 May 2027 42,822 45,480 2.53 November 2023 30,208 33,829 2.76 November 2025 30,208 33,829 Euro-denominated term loan 80,291 - Revolving Credit Facilities 225,469 86,000 Various other notes 622 1,137 Total debt 631,092 503,629 Less debt fees (260 ) (136 ) Less current portion (501 ) (487 ) Total long-term debt $ 630,331 $ 503,006 In May 2021, the Company executed an amended and restated credit agreement ( Credit Agreement million multi-currency revolving credit facility from May 2022 to May 2026 and to modify certain other provisions of the credit agreement as set forth therein. In December 2022, the Company amended the Credit Agreement to, among other things, transition from the London Inter-Bank Offered Rate to: (i) the Secured Overnight Financing Rate (SOFR) as the benchmark rate under the Credit Agreement for borrowings denominated in U.S. dollars and (ii) the Euro Interbank Offered Rate for borrowings denominated in Euros. Borrowings under the revolving credit facility bear interest at a variable rate, based upon the applicable reference rate and including a margin percentage dependent upon the Company’s leverage ratio, as described below. In August 2022, the Company amended its accounts receivable securitization program with Wells Fargo Bank N.A. (Wells Fargo) to the Company secured by Wells Fargo’s undivided interests in certain of the Company’s trade accounts receivables. The interest rate on the Secured Loan is the SOFR as administered by the Federal Reserve Bank of New York plus a 10 basis point Term SOFR Adjustment plus an Applicable Margin of 70 basis points. The Company has the intent and ability either to repay the Secured Loan with available funds from the Company’s existing long-term revolving credit facility or to extend its accounts receivable program with Wells Fargo when it matures. Accordingly, the Secured Loan has been classified as long-term debt on the Company’s Consolidated Balance Sheet and is included with the Revolving Credit Facilities above. In November 2022, the Company entered into a 75 million Euro unsecured term loan (Term Loan) with PNC Bank, N.A (PNC Bank) that matures in November 2024 Derivative Instruments and Hedging Activity The borrowings under the revolving credit facility, excluding borrowings on the accounts receivable securitization program, had The aggregate amounts of contractual maturities on long-term debt subsequent to December 31, 2022, are as follows: (In s) Year ending December 2023 $ 231,654 2024 160,939 2025 55,208 2026 140,469 2027 42,822 Total long-term debt maturities $ 631,092 The Company had $206.7 million available under the revolving credit facility and $25.5 million available under other lines of credit from several banks at December 31, 2022. Substantially all of the senior financing obligations contain restrictions concerning interest coverage, borrowings, and investments. The most restrictive loan covenants require a Leverage Ratio less than 3.5 and an Interest Coverage Ratio greater than 3.0, in each case, as defined in the Company’s Credit Agreement. The Company is in compliance with all of these restrictions at December 31, 2022. The Company had stand-by and trade letters of credit outstanding of $2.8 million as of both December 31, 2022 and 2021. Short-term Borrowings The Company’s short-term borrowings consisted of the following items at December 31: (In thousands) 2022 2021 U.S. credit facilities $ 19,872 $ 7,284 Current maturities of long-term debt 501 487 Loans of foreign subsidiaries - 768 Total $ 20,373 $ 8,539 The weighted average interest rates on short-term borrowings were 5.47% and 1.55% at December 31, 2022 and 2021, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activity [Abstract] | |
Derivative Instruments and Hedging Activity | 7. Derivative Instruments and Hedging Activity The Company may use derivative instruments for the purpose of hedging currency, commodity, and interest rate exposures, which exist as part of ongoing business operations. As a policy, the Company does not engage in speculative or leveraged transactions nor does the Company hold or issue financial instruments for trading purposes. Hedge effectiveness is determined by how closely the changes in the fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged transaction. Hedge accounting, which generally results in the deferral of derivative gains and losses until such time as the underlying transaction is recognized in net earnings, is permitted only if the hedging relationship is expected to be highly effective at the inception of the transaction and on an ongoing basis. The Company manages its exposure to foreign exchange risk by the use of forward exchange contracts to reduce the effect of fluctuating foreign currencies on non-functional currency sales, purchases, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company also uses certain debt denominated in foreign currencies to manage the net asset positions of the Company’s foreign subsidiaries. The Company’s primary hedging activities and their accounting treatment are summarized below. Forward Exchange Contracts Certain forward exchange contracts have been designated as cash flow hedges. The Company had $70.1 million and $48.6 million of forward exchange contracts, designated as cash flow hedges, outstanding as of December 31, 2022 and 2021, respectively. For the years ended December 31, 2022, 2021, and 2020, gains of $1.0 million and $1.3 million and a loss of $1.3 million, respectively, were reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the earnings impact of the related non-functional asset or liability hedged in the same period. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges and the results of these transactions are not material to the financial statements. Net Investment Hedges The Company has designated certain foreign currency denominated long-term borrowings as partial hedges of the Company’s foreign currency net asset positions. As of December 31, 2022 and 2021, the total value of the Company’s net investment hedges was $315.5 million and $289.5 million, respectively. These net investment hedges include Euro and British Pound denominated long-term debt. Changes in the fair value of this debt attributable to changes in the spot foreign exchange rate are recorded in foreign currency translation in OCI. The impact of foreign exchange rates on these debt instruments decreased debt by $19.3 million and $17.9 million for the years ended December 31, 2022 and 2021, respectively, and are recorded as foreign currency translation in OCI. For the year ended December 31, 2022, there was no reclassification of OCI with respect to net investment hedges into net earnings. For the years ended December 31, 2021 and 2020, losses of $4.2 million and $10.8 million, respectively, were reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the underlying transactions’ impact on earnings in the same period. In 2021, the losses were primarily associated with the partial termination of the net investment hedge related to the Euro debt in connection with the sale of the fragrances product line, including the Spanish legal entity. In 2020, the losses were primarily associated with the termination of the net investment hedge related to the Swiss Franc debt that terminated in connection with the sale of the inks product line, including its Swiss legal entity. See Note 14, Divestitures Concentrations of Credit Risk Counterparties to forward exchange contracts consist of large international financial institutions. While these counterparties may expose the Company to potential losses due to the credit risk of non-performance, losses are not anticipated. Concentrations of credit risk with respect to trade accounts receivable are limited by the large number of customers, generally short payment terms, and their dispersion across geographic areas. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 8. Share-Based Compensation The Company has traditionally maintained separate stock plans for non-employee directors, the 2012 Non-Employee Directors Stock Plan, and employees, the 2017 Stock Plan, under which directors and employees may be granted non-vested stock that vests over a specific time-period. In April 2017, the shareholders of the Company approved the 2017 Stock Plan authorizing 1.8 million shares for issuance as non-vested stock in the form of restricted stock, restricted stock units, performance stock units, non-qualified stock options, incentive stock options, and stock appreciation rights. In April 2022, the shareholders of the Company approved an Amended and Restated 2017 Stock Plan. The Amended and Restated 2017 Stock plan incorporates substantially all of the key terms of the Company’s 2012 Non-Employee Directors Stock Plan into the Company’s existing 2017 Stock Plan, creating one omnibus plan covering the Company’s non-employee directors, officers, and key employees. The total number of shares of common stock reserved for issuance under the Amended and Restated 2017 Stock Plan increased by 350 thousand shares (from 1.8 million to 2.15 million in aggregate), plus any cancellations of shares issued under the Amended and Restated 2017 Stock Plan. As of December 31, 2022, there were 1.3 million shares available to issue as non-vested stock under the Company’s Amended and Restated 2017 Stock Plan. The Company may also issue up to 0.2 million shares of stock pursuant to its 1999 Amended and Restated Directors Deferred Compensation Plan The Company recognizes expense for shares of non-vested stock over a three-year vesting period with a pro-rata vesting upon retirement. The holders of the performance stock units are not entitled to vote or receive dividends and other distributions paid with respect to the stock, until the units have vested and shares of stock issued Grants issued after December 2013 and before December 2020 to elected officers consist of 100% performance stock unit awards. These awards are based on a three-year performance period and a three-year vesting period with a pro-rata vesting upon retirement. Three-year performance that exceeds the stated performance metrics would result in an award up to of the original grant. Starting with the December 2020 grant, grants issued to elected officers consist of performance stock unit awards and non-vested restricted stock awards. The performance stock unit awards are based on a performance period and a vesting period with a pro-rata vesting upon retirement. performance that exceeds the stated performance metrics would result in an award up to of the original grant. The non-vested restricted stock awards granted are based on a vesting period with a pro-rata vesting upon retirement. The Company expenses awards for non-vested stock, including time-vesting stock and performance stock units, based on the fair value of the Company’s common stock at the date of the grant. The following table summarizes the non-vested stock and performance stock unit activity: (In thousands except fair value) Shares Grant Date Weighted Average Fair Value Aggregate Intrinsic Value Outstanding at December 31 404 $ 64.89 26,710 Granted 142 65.61 Vested (27 ) 74.21 Cancelled (68 ) 73.39 Outstanding at December 31 2020 451 $ 63.28 33,283 Granted 129 90.10 Vested (25 ) 61.91 Cancelled (73 ) 72.37 Outstanding at December 31 2021 482 $ 69.15 $ 48,271 Granted 168 73.52 Vested (62 ) 58.81 Cancelled (69 ) 58.62 Outstanding at December 31 2022 519 $ 73.19 $ 37,883 The total intrinsic values of shares vested during 2022, 2021, and 2020, was $5.1 million, $1.9 million, and $1.4 million, respectively. As of December 31, 2022, total remaining unearned compensation, net of expected forfeitures, related to non-vested stock and performance stock units was $23.3 million, which will be amortized over the weighted average remaining service period of 2.15 years. Total pre-tax share-based compensation expense The Company also recognized tax related benefits |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Plans [Abstract] | |
Retirement Plans | 9. Retirement Plans The Company provides benefits under defined contribution plans including a savings plan and an employee stock ownership plan (ESOP). The savings plan covers substantially all domestic salaried and certain non-union hourly employees and provides for matching contributions up to 4% of each employee’s salary. The ESOP covers substantially all domestic employees and provides for contributions based on a percentage of each employee’s compensation as determined by the Company’s Board of Directors. Total expense for the Company’s defined contribution plans was $7.8 million in 2022, $6.7 million in 2021, and $6.1 million in 2020. Although the Company intends for these defined contribution plans to be the primary retirement benefit for most employees, the Company also has several defined benefit plans. The funded status of the defined benefit plans was as follows at December 31: (In thousands) 2022 2021 Benefit obligation at beginning of year $ 41,780 $ 45,631 Service cost 1,622 1,740 Interest cost 953 851 Foreign currency exchange rate changes (1,488 ) (291 ) Benefits and settlements paid (1,724 ) (3,298 ) Actuarial gain (8,776 ) (2,853 ) Benefit obligation at end of year 32,367 41,780 Plan assets at beginning of year 32,982 35,676 Company contributions 1,027 947 Foreign currency exchange rate changes (2,430 ) (297 ) Benefits paid (1,724 ) (1,718 ) Settlement payments - (1,580 ) Actual loss on plan assets (9,926 ) (46 ) Plan assets at end of year 19,929 32,982 Funded status $ (12,438 ) $ (8,798 ) Accumulated benefit obligation $ 31,472 $ 40,873 Amounts recognized in the Consolidated Balance Sheets at December 31: (In thousands) 2022 2021 Accrued employee and retiree benefits $ (16,822 ) $ (18,375 ) Other accrued expenses (745 ) (693 ) Other assets 5,129 10,270 Net liability $ (12,438 ) $ (8,798 ) Components of annual benefit cost: (In thousands) 2022 2021 2020 Service cost $ 1,622 $ 1,740 $ 1,601 Interest cost 953 851 1,022 Expected return on plan assets (785 ) (728 ) (813 ) Recognized actuarial loss 32 267 41 Settlement income - (151 ) - Defined benefit expense $ 1,822 $ 1,979 $ 1,851 The Company’s non-service cost portion of defined benefit expense is recorded in Interest Expense Selling and Administrative Expenses Weighted average liability assumptions as of December 31: 2022 2021 Discount rate 5.12 % 2.35 % Expected return on plan assets 4.89 % 2.54 % Rate of compensation increase 0.90 % 1.02 % Weighted average cost assumptions for the year ended December 31: 2022 2021 2020 Discount rate 2.35 % 1.87 % 2.69 % Expected return on plan assets 2.54 % 2.17 % 2.68 % Rate of compensation increase 1.02 % 1.07 % 0.88 % The aggregate amounts of benefits expected to be paid from defined benefit plans in each of the next five years subsequent to December 31, 2022, which include employees’ expected future service, are as follows: 2023, $1.7 million; 2024, $9.0 million; 2025, $1.5 million; 2026, $1.6 million; 2027, $1.6 million; and $10.1 million in total for the years 2028 through 2032. The Company expects to contribute $0.8 million to defined benefit plans in 2023. Amounts in accumulated other comprehensive loss at December 31 were as follows: (In thousands) 2022 2021 Unrecognized net actuarial loss $ 2,210 $ 221 Prior service cost 153 179 Total before tax effects $ 2,363 $ 400 The pension adjustments, net of tax, recognized in OCI, were as follows: (In thousands) 2022 2021 2020 Net actuarial (loss) gain arising during the period $ (1,466 ) $ 1,528 $ (1,293 ) Prior service cost - - (32 ) Amortization of actuarial loss, included in defined benefit expense 27 84 32 Pension adjustment, net of tax $ (1,439 ) $ 1,612 $ (1,293 ) The investment objectives and target allocations for the Company’s pension plans related to the assets of the plans are reviewed on a regular basis. The investment objectives for the pension assets are to maximize the return on assets while maintaining an overall level of risk appropriate for a retirement fund and ensuring the availability of funds for the payment of retirement benefits. The levels of risk assumed by the pension plans are determined by market conditions, the rate of return expectations, and the liquidity requirements of each pension plan. The actual asset allocations of each pension plan are reviewed on a regular basis to ensure that they are in line with the target allocations. The following table presents the Company’s pension plan assets by asset category as of December 31, 2022 and 2021: Fair Value as of December 31, Fair Value Measurements at December 31, 2022 Using Fair Value Hierarchy Fair Value as of December 31, Fair Value Measurements at December 31, 2021 Using Fair Value Hierarchy (In thousands) 2022 Level 1 Level 2 Level 3 2021 Level 1 Level 2 Level 3 Equity Funds Domestic $ 5,208 $ 5,208 $ — $ — $ 7,033 $ 7,033 $ — $ — International 55 — 55 — 79 — 79 — International Fixed Income Funds 14,551 1,060 13,491 — 25,732 889 24,843 — Other investments 115 84 31 — 138 115 23 — Total assets at fair value $ 19,929 $ 6,352 $ 13,577 $ — $ 32,982 $ 8,037 $ 24,945 $ — The Company is required to categorize pension plan assets based on the following fair value hierarchy: Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data. Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 10. Accumulated Other Comprehensive Income The following table summarizes the changes in OCI for 2022, 2021, and 2020: (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balance as of December 31 $ (199 ) $ (672 ) $ (162,137 ) $ (163,008 ) Other comprehensive income (loss) before reclassifications (374 ) (1,325 ) 12,887 11,188 Amounts reclassified from OCI 1,322 32 (8,625 ) (7,271 ) Balance as of December 31 2020 $ 749 $ (1,965 ) $ (157,875 ) $ (159,091 ) Other comprehensive income (loss) before reclassifications 775 1,528 (26,809 ) (24,506 ) Amounts reclassified from OCI (1,318 ) 84 10,203 8,969 Balance as of December 31 2021 $ 206 $ (353 ) $ (174,481 ) $ (174,628 ) Other comprehensive income (loss) before reclassifications 215 (1,466 ) (23,816 ) (25,067 ) Amounts reclassified from OCI (1,020 ) 27 - (993 ) Balance as of December 31 2022 $ (599 ) $ (1,792 ) $ (198,297 ) $ (200,688 ) (1) Cash Flow Hedges and Pension Items are net of tax. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | 11. Income Taxes Earnings before income taxes were as follows: (In thousands) 2022 2021 2020 United States $ 73,192 $ 71,764 $ 72,593 Foreign 109,012 85,720 65,252 Total $ 182,204 $ 157,484 $ 137,845 The provision for income taxes was as follows: (In thousands) 2022 2021 2020 Current income tax expense: Federal $ 21,640 $ 16,807 $ 9,660 State 5,138 5,128 3,000 Foreign 25,549 22,875 24,418 52,327 44,810 37,078 Deferred benefit: Federal (8,520 ) (4,159 ) (6,918 ) State (1,353 ) (1,189 ) (565 ) Foreign (1,137 ) (723 ) (1,222 ) (11,010 ) (6,071 ) (8,705 ) Income taxes $ 41,317 $ 38,739 $ 28,373 The reconciliation between the U.S. Federal tax rate and the actual effective tax rate was as follows 2022 2021 2020 Taxes at statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefit 1.7 3.0 2.2 Tax credits (1.3 ) (1.4 ) (1.5 ) Taxes on foreign earnings 2.9 4.7 2.8 Global Intangible Low-Taxed Income 0.4 0.7 0.1 Foreign Derived Intangible Income (1.0 ) (0.9 ) (1.1 ) Loss on balance sheet hedge - 0.7 2.0 Resolution of prior years’ tax matters (0.1 ) (0.4 ) (0.1 ) Valuation allowance adjustments (2.7 ) (2.9 ) (3.7 ) Nondeductible compensation 1.9 1.1 - Other, net (0.1 ) (1.0 ) (1.1 ) Effective tax rate 22.7 % 24.6 % 20.6 % Certain reclassifications to prior year amounts have been made to conform to current year presentation. Taxes on foreign earnings include the difference between the tax rates applied to foreign earnings relative to the U.S. statutory tax rate, accruals for foreign unrecognized tax benefits, and the impact of the U.S. foreign tax credit, not including the impact from Global Intangible Low-Taxed Income (GILTI). The impact on the Company’s effective tax rate varies from year to year based on the finalization of prior year foreign and domestic tax items, audit settlements, and mix of foreign earnings. The effective tax rates in 2022, 2021, and were all impacted by tax costs related to the divestitures and the release of valuation allowances related to the foreign tax credit carryover and net operating losses. The Company’s valuation allowance at December was and . The increase of the 2021 effective tax rate from GILTI compared to 2020 is primarily related to not filing the high tax election given the foreign rate mix. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following: (In thousands) 2022 2021 Deferred tax assets: Benefit plans $ 8,601 $ 8,144 Liabilities and reserves 18,623 16,577 Operating loss and credit carryovers 60,070 68,646 Capitalized research and development costs 7,882 - Other 4,414 10,031 Gross deferred tax assets 99,590 103,398 Valuation allowance (28,073 ) (34,242 ) Deferred tax assets 71,517 69,156 Deferred tax liabilities: Property, plant, and equipment (34,174 ) (32,560 ) Goodwill (20,603 ) (21,044 ) Deferred tax liabilities (54,777 ) (53,604 ) Net deferred tax assets $ 16,740 $ 15,552 Certain reclassifications to prior year amounts have been made to conform to current year presentation. At December foreign tax credit carryovers were , all of which expires before At December foreign operating loss carryovers were The Company is electing to recognize GILTI as a period expense in the period the tax is incurred. Federal and state income taxes are provided on international subsidiary income distributed to or taxable in the U.S. during the year. At December 31, 2022, no additional income or withholding taxes have been provided for the $673.9 million of undistributed earnings or any additional outside basis differences inherent in these entities, as these amounts are considered to be invested indefinitely. If the undistributed earnings were repatriated, the Company A reconciliation of the change in the liability for unrecognized tax benefits for 2022 and 2021 is as follows: (In thousands) 2022 2021 Balance at beginning of year $ 3,761 $ 7,445 Increases for tax positions taken in the current year 800 715 Decreases related to settlements with tax authorities (209 ) (3,643 ) Decreases as a result of lapse of the applicable statutes of limitations (338 ) (367 ) Foreign currency exchange rate changes (75 ) (389 ) Balance at the end of year $ 3,939 $ 3,761 The amount of the unrecognized tax benefits that would affect the effective tax rate, if recognized, was approximately $3.9 million. The Company recognizes interest and penalties related to the unrecognized tax benefits in income tax expense. $0.4 million of accrued interest and penalties were reported as an income tax liability as of both December 31, 2022 and 2021. The liability for unrecognized tax benefits relates to multiple jurisdictions and is reported in Other Liabilities The Company believes that it is reasonably possible that the total amount of liability for unrecognized tax benefits as of December 31, 2022, will decrease by approximately $0.8 million during 2023, of which $0.7 million is estimated to impact the effective tax rate. The potential decrease relates to various tax matters for which the statute of limitations may expire or will be otherwise settled in 2023. The amount that is ultimately recognized in the financial statements will be dependent upon various factors including potential increases or decreases in unrecognized tax benefits as a result of examinations, settlements, and other unanticipated items that may occur during the year. With limited exceptions, the Company is no longer subject to federal, state, and local, or non-U.S. income tax examinations by tax authorities for years before 2018. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment and Geographic Information [Abstract] | |
Segment and Geographic Information | 12. Segment and Geographic Information The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on operating income before divestiture & other related costs and income, share-based compensation, restructuring and other charges including operational , 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. Assets by business segment and geographic region are those assets used in the Company’s operations in each segment and geographic region. Segment assets reflect the allocation of goodwill to each segment. Corporate & Other assets consist primarily of accounts receivables from the securitization program, investments, deferred tax assets, and fixed assets. Segment Information The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. Segment performance is evaluated on operating income of the respective business units before divestiture & other related costs and income, share-based compensation, and restructuring and other charges including operational improvement plan costs and income, which are reported in Corporate & Other. The Company’s three reportable segments are Flavors & Extracts Divestiture & other related costs and income and restructuring and other costs, including the operational improvement plan costs and income, for the years ended December , and , are further described in Note Divestitures, and Note Operational Improvement Plan, and are included in the operating income (loss) results in Corporate & Other below. In addition, the Company’s corporate expenses and share-based compensation are included in Corporate & Other. (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated 2022 : Revenue from external customers $ 710,592 $ 583,379 $ 143,068 $ — $ 1,437,039 Intersegment revenue 27,411 20,638 513 — 48,562 Total revenue 738,003 604,017 143,581 — 1,485,601 Operating income (loss) 105,424 114,619 29,492 (52,784 ) 196,751 Interest expense — — — 14,547 14,547 Earnings (loss) before income taxes 105,424 114,619 29,492 (67,331 ) 182,204 Assets 738,181 849,425 115,132 278,876 1,981,614 Capital expenditures 40,805 30,300 2,164 6,053 79,322 Depreciation and amortization 26,660 20,174 2,489 3,144 52,467 2021 : Revenue from external customers $ 717,688 $ 527,626 $ 134,950 $ — $ 1,380,264 Intersegment revenue 21,739 17,644 398 — 39,781 Total revenue 739,427 545,270 135,348 — 1,420,045 Operating income (loss) 98,660 103,575 26,330 (58,537 ) 170,028 Interest expense — — — 12,544 12,544 Earnings (loss) before income taxes 98,660 103,575 26,330 (71,081 ) 157,484 Assets 639,992 738,139 108,126 259,236 1,745,493 Capital expenditures 35,846 16,806 2,813 5,323 60,788 Depreciation and amortization 26,020 20,572 2,748 2,711 52,051 2020 : Revenue from external customers $ 724,483 $ 486,536 $ 120,982 $ — $ 1,332,001 Intersegment revenue 17,552 14,482 245 — 32,279 Total revenue 742,035 501,018 121,227 — 1,364,280 Operating income (loss) 90,974 96,034 22,075 (56,427 ) 152,656 Interest expense — — — 14,811 14,811 Earnings (loss) before income taxes 90,974 96,034 22,075 (71,238 ) 137,845 Assets 686,348 718,665 100,258 235,589 1,740,860 Capital expenditures 24,541 19,840 2,687 5,094 52,162 Depreciation and amortization 24,801 19,368 2,578 2,894 49,641 Geographic Information The Company has manufacturing facilities or sales offices in North America, Europe, Asia, Australia, South America, and Africa. The Company’s annual revenue summarized by geographic location is as follows: (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated 2022 : Revenue from external customers: North America $ 541,120 $ 304,778 $ 120 $ — $ 846,018 Europe 115,925 151,437 213 — 267,575 Asia Pacific 29,092 61,064 139,134 — 229,290 Other 24,455 66,100 3,601 — 94,156 Total revenue from external customers $ 710,592 $ 583,379 $ 143,068 $ — $ 1,437,039 Long-lived assets: North America $ 286,497 $ 271,075 $ — $ 107,784 $ 665,356 Europe 86,248 236,719 — 24 322,991 Asia Pacific 237 3,796 29,915 — 33,948 Other 389 24,150 — — 24,539 Total long-lived assets $ 373,371 $ 535,740 $ 29,915 $ 107,808 $ 1,046,834 2021 : Revenue from external customers: North America $ 523,960 $ 263,031 $ 116 $ — $ 787,107 Europe 135,348 142,741 140 — 278,229 Asia Pacific 29,880 59,914 131,772 — 221,566 Other 28,500 61,940 2,922 — 93,362 Total revenue from external customers $ 717,688 $ 527,626 $ 134,950 $ — $ 1,380,264 Long-lived assets: North America $ 268,934 $ 250,682 $ — $ 105,150 $ 624,766 Europe 91,934 225,916 — 25 317,875 Asia Pacific 275 4,513 32,901 — 37,689 Other 568 23,442 — — 24,010 Total long-lived assets $ 361,711 $ 504,553 $ 32,901 $ 105,175 $ 1,004,340 2020 : Revenue from external customers: North America $ 491,641 $ 241,608 $ 81 $ — $ 733,330 Europe 160,083 129,704 193 — 289,980 Asia Pacific 30,080 52,414 117,427 — 199,921 Other 42,679 62,810 3,281 — 108,770 Total revenue from external customers $ 724,483 $ 486,536 $ 120,982 $ — $ 1,332,001 Long-lived assets: North America $ 244,921 $ 252,906 $ — $ 102,577 $ 600,404 Europe 112,424 226,840 — — 339,264 Asia Pacific 204 4,670 31,834 — 36,708 Other 782 22,116 — — 22,898 Total long-lived assets $ 358,331 $ 506,532 $ 31,834 $ 102,577 $ 999,274 Sales in the United States, based on the final country of destination of the Company’s products, were , , and , in and respectively. No other country of destination exceeded of consolidated sales. Total long-lived assets in the United States amounted to , , and , at December and respectively. Product Information The Company’s revenue summarized by product portfolio is as follows: (In thousands) Flavors & Extracts Color Asia Pacific Consolidated 2022 : Flavors, Extracts & Flavor Ingredients $ 498,055 $ — $ — $ 498,055 Natural Ingredients 239,948 — — 239,948 Food & Pharmaceutical Colors — 437,065 — 437,065 Personal Care — 165,335 — 165,335 Inks — 1,617 — 1,617 Asia Pacific — — 143,581 143,581 Intersegment Revenue (27,411 ) (20,638 ) (513 ) (48,562 ) Total revenue from external customers $ 710,592 $ 583,379 $ 143,068 $ 1,437,039 2021 : Flavors, Extracts & Flavor Ingredients $ 455,818 $ — $ — $ 455,818 Natural Ingredients 255,772 — — 255,772 Fragrances 22,739 — — 22,739 Yogurt Fruit Preparations 5,098 — — 5,098 Food & Pharmaceutical Colors — 385,069 — 385,069 Personal Care — 158,237 — 158,237 Inks — 1,964 — 1,964 Asia Pacific — — 135,348 135,348 Intersegment Revenue (21,739 ) (17,644 ) (398 ) (39,781 ) Total revenue from external customers $ 717,688 $ 527,626 $ 134,950 $ 1,380,264 2020 : Flavors, Extracts & Flavor Ingredients $ 399,331 $ — $ — $ 399,331 Natural Ingredients 243,161 — — 243,161 Fragrances 85,354 — — 85,354 Yogurt Fruit Preparations 14,189 — — 14,189 Food & Pharmaceutical Colors — 346,269 — 346,269 Personal Care — 141,331 — 141,331 Inks — 13,418 — 13,418 Asia Pacific — — 121,227 121,227 Intersegment Revenue (17,552 ) (14,482 ) (245 ) (32,279 ) Total revenue from external customers $ 724,483 $ 486,536 $ 120,982 $ 1,332,001 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 13. Fair Value Measurements ASC 820, Fair Value Measurement |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2022 | |
Divestitures [Abstract] | |
Divestitures | 14. Divestitures On June 30, 2020, the Company completed the sale of its inks product line. In 2021 and 2020, the Company received $0.5 million and $11.6 million of net cash, respectively, as part of the sale. On September 18, 2020, the Company completed the sale of its yogurt fruit preparations product line.The Company received $2.5 million of net cash in 2022 and $1.0 million of net cash in each of 2021 and 2020, as part of the sale. 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. As a result of the completion of the sale, the Company recorded a non-cash net loss of $11.3 million for the year ended December 31, 2021, primarily related to the reclassification of accumulated foreign currency translation and related items from Accumulated Other Comprehensive Loss Selling and Administrative Expenses The Company reports all costs and income associated with the divestitures in Corporate & Other. For the year ended December 31, 2022, the Company recorded a $2.5 million gain in Selling and Administrative Expenses associated with the yogurt fruit preparations product line. The following table summarizes the divestiture & other related costs for the year ended December 31, 2021: (In thousands) Yogurt Fruit Preparations Fragrances Inks Corporate/ Other Consolidated Non-cash impairment charges – Selling and administrative expenses $ (1,000 ) $ 1,062 $ - $ - $ 62 Non-cash charges – Cost of products sold - 95 (9 ) - 86 Reclassification of foreign currency translation and related items – Selling and administrative expenses - 10,201 2 - 10,203 Other costs - Selling and administrative expenses (1) 917 2,553 (281 ) 598 3,787 Total $ (83 ) $ 13,911 $ (288 ) $ 598 $ 14,138 (1) Other costs – Selling and administrative expenses include employee separation costs, bad debt expense, environmental remediation costs, professional services, accelerated depreciation, and other related costs. The following table summarizes the divestiture & other related costs for the year ended December 31, 2020: (In thousands) Yogurt Fruit Preparations Fragrances Inks Corporate/ Other Consolidated Non-cash impairment charges – Selling and administrative expenses $ 2,597 $ 2,055 $ 8,928 $ (861 ) $ 12,719 Non-cash charges – Cost of products sold 1,679 77 (203 ) 242 1,795 Reclassification of foreign currency translation and related items – Selling and administrative expenses - - (8,625 ) - (8,625 ) Other costs - Selling and administrative expenses (1) 337 3,029 892 2,008 6,266 Total $ 4,613 $ 5,161 $ 992 $ 1,389 $ 12,155 (1) Other costs – Selling and administrative expenses include employee separation costs, environmental remediation costs, professional services, accelerated depreciation, and other related costs. The Company recorded non-cash impairment charges in Selling and Administrative Expenses, Cost of Products Sold Accumulated Other Comprehensive Loss Selling and Administrative Expenses 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 has recorded $0.3 million and $0.8 million related to these obligations in Selling and Administrative Expenses |
Operational Improvement Plan
Operational Improvement Plan | 12 Months Ended |
Dec. 31, 2022 | |
Operational Improvement Plan [Abstract] | |
Operational Improvement Plan | 15. 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. During the second quarter of 2021, the Company received cash proceeds, net of associated expenses, in connection with the termination of a New Jersey office and laboratory space lease. The terminated lease was originally executed in November 2020 as part of the Operational Improvement Plan; however, the landlord for the property requested to terminate the lease prior to the end of its term and compensated the Company as part of a negotiated resolution for that termination. The Company reports all costs and income associated with the Operational Improvement Plan in Corporate & Other. There were no Operational Improvement Plan costs recorded for the year ended December 31, 2022. The following table summarizes the Operational Improvement Plan income and expenses recorded in Selling and Administrative Expenses (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Employee separation $ (123 ) $ (8 ) $ (351 ) $ (482 ) Other income (1) - (3,624 ) - (3,624 ) Other costs (2) - 2,207 4 2,211 Total $ (123 ) $ (1,425 ) $ (347 ) $ (1,895 ) (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 by segment for the year ended December 31, 2020: (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Employee separation $ 352 $ 1,749 $ 589 $ 2,690 Other costs (1) - 640 9 649 Total $ 352 $ 2,389 $ 598 $ 3,339 (1) Other costs include professional services, accelerated depreciation, and other related costs. The Company recorded the Operational Improvement Plan expenses for the year ended December 31, 2020, as follows: (In thousands) Selling and Administrative Expenses Cost of Products Sold Consolidated Employee separation $ 2,690 $ - $ 2,690 Other costs (1) 614 35 649 Total $ 3,304 $ 35 $ 3,339 (1) Other costs include professional services, accelerated depreciation, and other related costs. As of December 31, 2021, accrued liabilities in Other Accrued Expenses million related to this plan. There were amounts accrued as of December 31, 2022 related to this plan. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period. See Note Divestitures , for information about estimated environmental remediation costs associated with our former Granada, Spain location. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | 17. Subsequent Event On , the Company announced its quarterly dividend of cents per share would be payable on . |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Financial Statement Schedule Schedule II Valuation and Qualifying Accounts (in thousands); Years Ended December 31, 2022, 2021, and 2020 Valuation Accounts Deducted in the Balance Sheet From the Assets to Which They Apply Balance at Beginning of Period Additions Charged to Costs and Expenses Additions Recorded During Acquisitions Deductions (A) Balance at End of Period 2020 Allowance for losses: Trade accounts receivable $ 4,563 $ 565 $ 0 $ 1,693 $ 3,435 2021 Allowance for losses: Trade accounts receivable $ 3,435 $ 1,631 $ 0 $ 189 $ 4,877 2022 Allowance for losses: Trade accounts receivable $ 4,877 $ 944 $ 0 $ 1,385 $ 4,436 (A) Accounts written off, net of recoveries. In 2021, $456 thousand was moved from Assets Held for Sale to All other schedules are omitted because they are inapplicable, not required by the instructions, or the information is included in the consolidated financial statements or notes thereto. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets, liabilities, revenue, and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue at the transfer of control of its products to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve this core principle, the Company applies the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies the performance obligations The Company considers customer purchase orders, which in some cases are governed by master sales agreements, coupled with the Company’s purchase order acceptances, to be the contracts with the customer. For each contract, the Company considers the identified performance obligation to be the promise to transfer products. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment and then determines the net consideration to which the Company expects to be entitled. In addition, the Company assesses the customer’s ability to pay as part of its evaluation of the contract. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under Accounting Standards Codification (ASC) 606-10-32-18, and determined that its contracts do not have a significant financing component. The Company allocates the transaction price to each distinct product based on the relative standalone selling price. Revenue is recognized when control of the product is transferred to the customer, the customer is obligated to pay the Company, and the Company has no remaining obligations, which is typically at shipment. In certain locations, primarily outside the United States, product delivery terms may vary. Thus, in such locations, the point at which control of the product transfers to the customer and revenue recognition occurs will vary accordingly. Customer returns of non-conforming products are estimated at the time revenue is recognized. In certain customer relationships, volume rebates exist, which are recognized according to the terms and conditions of the contractual relationship. Customer returns, rebates, and discounts are not material to the Company’s consolidated financial statements. The Company has elected to recognize the revenue and cost for freight and shipping when control over the products has transferred to the customer. The Company has elected to immediately expense contract costs related to obtaining a contract as the amortization period of the asset the Company otherwise would have recognized would have been less than a year. 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 (See Note 12, Segment and Geographic Information, . |
Cost of Products Sold | Cost of Products Sold Cost of products sold includes materials, labor, and overhead expenses incurred in the manufacture of our products. Cost of products sold also includes charges for obsolete and slow-moving inventories as well as costs for quality control, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, other costs of our internal distribution network, and costs incurred for shipping and handling. The Company records fees billed to customers for shipping and handling as revenue. |
Selling and Administrative Expenses | Selling and Administrative Expenses Selling and administrative expenses primarily include the salaries and related costs for executive, finance, accounting, human resources, information technology, research and development, and legal personnel as well as salaries and related costs of salespersons and commissions paid to external sales agents. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of acquisition as cash equivalents. |
Accounts Receivable | Accounts Receivable Receivables are recorded at their face amount, less an allowance for losses on doubtful accounts. The allowance for doubtful accounts is based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Specific accounts are written off against the allowance for doubtful accounts when it is deemed that the receivable is no longer collectible. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Net realizable value is determined on the basis of estimated realizable values. Cost is determined using the first-in, first-out (FIFO) method. Inventories include finished and in-process products totaling $385.2 million and $280.2 million at December 31, 2022 and 2021, respectively, and raw materials and supplies of $178.9 million and $131.4 million at December 31, 2022 and 2021, respectively. The Company recorded a non-cash charge of $0.1 million and $1.8 million in related to the divested product lines in 2021 and 2020, respectively. There were no non-cash charges recorded in 2022 related to the divested product lines. The non-cash charge reduced the carrying value of certain inventories, as they were determined to be excess. See Note 14, Divestitures , for additional information. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are recorded at cost reduced by accumulated depreciation. Depreciation is provided over the estimated useful life of the related asset using the straight-line method for financial reporting. The estimated useful lives for buildings and leasehold improvements range from 5 to 40 years. Machinery and equipment have estimated useful lives ranging from 3 to 20 years. Interest costs on significant projects constructed or developed for the Company’s own use are capitalized as part of the asset. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The carrying value of goodwill is evaluated for impairment on an annual basis or more frequently when an indicator of impairment occurs. The impairment assessment includes comparing the carrying amount of net assets, including goodwill, of each reporting unit to its respective fair value as of the date of the assessment. Fair value was estimated based upon an evaluation of the reporting unit’s estimated future discounted cash flows as well as the public trading and private transaction valuation multiples for comparable companies. The Company performed such a quantitative analysis in 2022, which indicated a substantial premium compared to the carrying value of net assets, including goodwill, at the reporting unit level. In the fourth quarter of 2019, as a result of the Company meeting the assets held for sale criteria for its divestitures of its inks and fragrances (excluding its essential oils product line) product lines, the Company allocated $8.4 million of goodwill to those disposal groups. The $8.4 million of goodwill related to the disposal groups was determined to be fully impaired. In 2020, the fair value of the disposal groups decreased, which resulted in the previously allocated goodwill of $2.2 million to be reallocated to its respective financial reporting units. In 2021, the fair value of the disposal groups increased, which resulted in an additional $0.8 million of goodwill allocated to the disposal groups. See Note 14, Divestitures, for additional details. The cost of intangible assets with determinable useful lives is amortized on a straight-line basis to reflect the pattern of economic benefits consumed, ranging from 5 to 25 years. These assets include technological know-how, customer relationships, patents, trademarks, trade secrets, and non-compete agreements, among others. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if potential impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on the difference between fair value and carrying value. Impairment losses were recorded as a result of the Company’s divestiture of its inks product line and its divestiture of its fragrances product line (excluding its essential oils product line). See Note 14 , Divestitures , for additional information. |
Leases | Leases The Company enters into lease agreements for certain office space, warehouses, land, and equipment in the ordinary course of business. The Company determines if an arrangement is a lease at inception and evaluates the lease classification (i.e., operating lease or financing lease) at that time. Lease arrangements with an initial term of 12 months or less are considered short-term leases and are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the term of the lease. Operating leases are included in Other Assets Other Accrued Expenses Other Liabilities The Company uses its incremental borrowing rate on the commencement date for determining the present value of lease payments. The Company considers the likelihood of exercising options to extend or terminate the lease when determining the lease term. The Company has lease agreements with lease and non-lease components. The Company has elected the practical expedient of accounting for the lease and non-lease components of each lease as a single lease component. |
Derivative Financial Instruments | Derivative Financial Instruments The Company selectively uses derivative financial instruments to reduce market risk associated with changes in foreign currency and interest rate exposures, which exist as part of ongoing business operations. All derivative transactions are authorized and executed pursuant to the Company’s risk management policies and procedures, which strictly prohibit the use of financial instruments for speculative trading purposes. The primary objectives of the foreign exchange risk management activities are to understand and mitigate the impact of potential foreign exchange fluctuations on the Company’s financial results and its economic well-being. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. These risk management transactions may involve the use of foreign currency derivatives to protect against exposure resulting from recorded accounts receivable and payable. The Company may utilize forward exchange contracts, generally with maturities of less than 18 months, which qualify as cash flow hedges. Generally, these foreign exchange contracts are intended to offset the effect of exchange rate fluctuations on non-functional currency denominated sales and purchases. For derivative instruments that are designated as cash flow hedges, gains and losses are deferred in Accumulated Other Comprehensive Income For hedges designated as cash flow hedges, the Company elects critical terms that match at the onset of the hedge transaction. Hedge accounting is permitted only if the hedge meets the critical terms match requirements. The Company reviews the critical terms at each effectiveness testing date to ensure the respective terms match; therefore, achieving a highly effective hedge. |
Interest Rate Hedging | Interest Rate Hedging The Company is exposed to interest rate risk through its corporate borrowing activities. The objective of the Company’s interest rate risk management activities is to manage the levels of the Company’s fixed and floating interest rate exposure to be consistent with the Company’s preferred mix. The interest rate risk management program may include entering into interest rate swaps, which qualify as fair value hedges, when there is a desire to modify the Company’s exposure to interest rates. Gains or losses on fair value hedges are recognized in earnings, net of gains and losses on the fair value of the hedged instruments. |
Net Investments Hedging | Net Investments Hedging The Company is exposed to risk related to its net investments in foreign subsidiaries. As part of its risk management activities, the Company may enter into foreign-denominated debt to be used as a non-derivative instrument to hedge the Company’s net investment in foreign subsidiaries. The change in the fair value of debt designated as a net investment hedge is recorded in foreign currency translation in OCI. |
Commodity Purchases | Commodity Purchases The Company purchases certain commodities in the normal course of business that result in physical delivery of the goods and, hence, are excluded from ASC 815, Derivatives and Hedging |
Translation of Foreign Currencies | Translation of Foreign Currencies For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of foreign operations are translated into U.S. dollars at current exchange rates. Revenue and expense accounts are translated into U.S. dollars at average exchange rates prevailing during the year. Adjustments resulting from the translation of foreign accounts into U.S. dollars are recorded in foreign currency translation in OCI. Transaction gains and losses that occur as a result of transactions denominated in non-functional currencies are included in earnings and were not significant during the years ended December 31, 2022, 2021, and 2020. |
Share-Based Compensation | Share-Based Compensation Share-based compensation expense is recognized over the vesting period of each award based on the fair value of the instrument at the time of grant as summarized in Note 8, Share-Based Compensation. |
Income Taxes | Income Taxes The Company recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax liability or asset for the estimated future tax effects attributable to temporary differences and carryforwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Deferred tax assets are reduced, if necessary, by the amount of any tax benefits for which the utilization of the asset is not considered likely. |
Earnings Per Share | Earnings Per Share The difference between basic and diluted earnings per share (EPS) is the dilutive effect of non-vested stock. Diluted EPS assumes that non-vested stock has vested. The following table sets forth the computation of basic and diluted EPS for the years ended December 31: Years Ended December 31, (In thousands except per share amounts) 2022 2021 2020 Numerator: Net earnings $ 140,887 $ 118,745 $ 109,472 Denominator: Denominator for basic EPS - weighted average common shares 41,888 42,077 42,301 Effect of dilutive securities 325 181 45 Denominator for diluted EPS - diluted weighted average shares outstanding 42,213 42,258 42,346 Earnings per Common Share: Basic $ 3.36 $ 2.82 $ 2.59 Diluted $ 3.34 $ 2.81 $ 2.59 The Company has a share-based compensation plan under which employees may be granted share-based awards in which non-forfeitable dividends are paid on non-vested shares for certain awards. As such, these shares are considered participating securities under the two-class method of calculating EPS as described in ASC 260, Earnings per Share. All EPS amounts are presented on a diluted basis unless otherwise noted. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated OCI is composed primarily of foreign currency translation, pension liability, and unrealized gains or losses on cash flow hedges. See Note 10, Accumulated Other Comprehensive Income, |
Research and Development | Research and Development Research and development costs are recorded in S elling and Administrative Expenses in the year they are incurred. Research and development costs were $ million, $ million, and $ million, during the years ended December 31, 2022, 2021, and 2020, respectively. |
Advertising | Advertising Advertising costs are recorded in Selling and Administrative Expenses as they are incurred. Advertising costs were $ million, $ million, and $2.0 million, during the years ended December 31, 2022, 2021, and 2020, respectively. |
Environmental Liabilities | Environmental Liabilities The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and reasonably estimable. Such accruals are adjusted as further information becomes available or as circumstances change. Estimated future expenditures are discounted to their present value when the timing and amount of future cash flows are fixed and readily determinable. Recoveries of remediation costs from other parties, if any, are recognized as assets when their receipt is realizable. |
Subsequent Events | Subsequent Events The Company performed an evaluation of subsequent events through the date these financial statements were issued. See Note 17, Subsequent Event |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Weighted-Average Common Shares for the Computation of EPS | The following table sets forth the computation of basic and diluted EPS for the years ended December 31: Years Ended December 31, (In thousands except per share amounts) 2022 2021 2020 Numerator: Net earnings $ 140,887 $ 118,745 $ 109,472 Denominator: Denominator for basic EPS - weighted average common shares 41,888 42,077 42,301 Effect of dilutive securities 325 181 45 Denominator for diluted EPS - diluted weighted average shares outstanding 42,213 42,258 42,346 Earnings per Common Share: Basic $ 3.36 $ 2.82 $ 2.59 Diluted $ 3.34 $ 2.81 $ 2.59 |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade Accounts Receivable [Abstract] | |
Changes in Allowance for Doubtful Accounts | The following table summarizes the changes in the allowance for doubtful accounts for the years ended December 31, 2022 and 2021: (In thousands) Allowance for Doubtful Accounts Balance at December 31, 2020 $ 3,891 Provision for expected credit losses 1,631 Accounts written off (434 ) Translation and other activity (211 ) Balance at December 31, 2021 $ 4,877 Provision for expected credit losses 944 Accounts written off (1,305 ) Translation and other activity (80 ) Balance at December 31, 2022 $ 4,436 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets [Abstract] | |
Intangible Assets | At December 31, 2022 and 2021, goodwill is the only intangible asset that is not subject to amortization. The following table summarizes intangible assets with determinable useful lives by major category as of December 31, 2022 and 2021: 2022 2021 (In thousands except weighted average amortization years) Weighted Average Amortization Years Cost Accumulated Amortization Cost Accumulated Amortization Technological know-how 14.4 $ 12,005 $ (3,383 ) $ 8,870 $ (2,314 ) Customer relationships 19.0 9,697 (2,691 ) 7,084 (2,269 ) Patents, trademarks, non-compete agreements, and other 15.6 11,596 (8,624 ) 11,606 (8,002 ) Total finite-lived intangibles 16.2 $ 33,298 $ (14,698 ) $ 27,560 $ (12,585 ) |
Changes in Goodwill by Business Segment | The changes in goodwill for the years ended December 31, 2022 and 2021, by reportable business segment, were as follows: (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Balance as of December 31 2020 $ 112,370 $ 305,263 $ 5,657 $ 423,290 Currency translation impact (17,298 ) 6,001 (603 ) (11,900 ) Goodwill related to divestitures (1) (812 ) — — (812 ) Acquisitions (2) 9,456 — — 9,456 Balance as of December 31 2021 $ 103,716 $ 311,264 $ 5,054 $ 420,034 Currency translation impact (2,796 ) (10,625 ) (338 ) (13,759 ) Acquisitions (2) — 9,440 — 9,440 Balance as of December 31 2022 $ 100,920 $ 310,079 $ 4,716 $ 415,715 (1) In the fourth quarter of 2019, the Company met all of the assets held for sale criteria related to the divestitures of its inks product line and fragrances product line (excluding its essential oils product line). Goodwill was allocated to those disposal groups and was determined to be fully impaired based on the estimated fair value of each of the disposal groups. In 2021, the fair value of the fragrances product line (excluding its essential oils product line) disposal group increased, which increased the value of goodwill allocated to the disposal group by $0.8 million. See Note 14, Divestitures, for additional information. (2) In 2021, the Company acquired Flavor Solutions, Inc. In 2022, the Company acquired Endemix. See Note 2, Acquisitions, for additional information. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Maturities of Operating Lease Liabilities | As of December maturities of operating lease liabilities for future annual periods are as follows: (In s) Year ending December 2023 $ 9,297 2024 8,218 2025 4,827 2026 3,559 2027 2,969 Thereafter 12,035 Total lease payments 40,905 Less imputed interest (4,638 ) Present value of lease liabilities $ 36,267 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt [Abstract] | |
Long-Term Debt | Long-term debt consisted of the following unsecured obligations at December 31: (In thousands) 2022 2021 3.66 November 2023 $ 75,000 $ 75,000 3.65 May 2024 27,000 27,000 4.19 November 2025 25,000 25,000 1.85 November 2022 - 76,017 3.06 November 2023 40,945 43,487 1.27 May 2024 53,527 56,850 1.71 May 2027 42,822 45,480 2.53 November 2023 30,208 33,829 2.76 November 2025 30,208 33,829 Euro-denominated term loan 80,291 - Revolving Credit Facilities 225,469 86,000 Various other notes 622 1,137 Total debt 631,092 503,629 Less debt fees (260 ) (136 ) Less current portion (501 ) (487 ) Total long-term debt $ 630,331 $ 503,006 |
Contractual Maturities on Long-Term Debt | The aggregate amounts of contractual maturities on long-term debt subsequent to December 31, 2022, are as follows: (In s) Year ending December 2023 $ 231,654 2024 160,939 2025 55,208 2026 140,469 2027 42,822 Total long-term debt maturities $ 631,092 |
Short-Term Borrowings | The Company’s short-term borrowings consisted of the following items at December 31: (In thousands) 2022 2021 U.S. credit facilities $ 19,872 $ 7,284 Current maturities of long-term debt 501 487 Loans of foreign subsidiaries - 768 Total $ 20,373 $ 8,539 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation [Abstract] | |
Non-vested Stock and Performance Unit Activity | The following table summarizes the non-vested stock and performance stock unit activity: (In thousands except fair value) Shares Grant Date Weighted Average Fair Value Aggregate Intrinsic Value Outstanding at December 31 404 $ 64.89 26,710 Granted 142 65.61 Vested (27 ) 74.21 Cancelled (68 ) 73.39 Outstanding at December 31 2020 451 $ 63.28 33,283 Granted 129 90.10 Vested (25 ) 61.91 Cancelled (73 ) 72.37 Outstanding at December 31 2021 482 $ 69.15 $ 48,271 Granted 168 73.52 Vested (62 ) 58.81 Cancelled (69 ) 58.62 Outstanding at December 31 2022 519 $ 73.19 $ 37,883 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Plans [Abstract] | |
Funded Status of Defined Benefit Plan | Although the Company intends for these defined contribution plans to be the primary retirement benefit for most employees, the Company also has several defined benefit plans. The funded status of the defined benefit plans was as follows at December 31: (In thousands) 2022 2021 Benefit obligation at beginning of year $ 41,780 $ 45,631 Service cost 1,622 1,740 Interest cost 953 851 Foreign currency exchange rate changes (1,488 ) (291 ) Benefits and settlements paid (1,724 ) (3,298 ) Actuarial gain (8,776 ) (2,853 ) Benefit obligation at end of year 32,367 41,780 Plan assets at beginning of year 32,982 35,676 Company contributions 1,027 947 Foreign currency exchange rate changes (2,430 ) (297 ) Benefits paid (1,724 ) (1,718 ) Settlement payments - (1,580 ) Actual loss on plan assets (9,926 ) (46 ) Plan assets at end of year 19,929 32,982 Funded status $ (12,438 ) $ (8,798 ) Accumulated benefit obligation $ 31,472 $ 40,873 |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the Consolidated Balance Sheets at December 31: (In thousands) 2022 2021 Accrued employee and retiree benefits $ (16,822 ) $ (18,375 ) Other accrued expenses (745 ) (693 ) Other assets 5,129 10,270 Net liability $ (12,438 ) $ (8,798 ) |
Annual Benefit Cost | Components of annual benefit cost: (In thousands) 2022 2021 2020 Service cost $ 1,622 $ 1,740 $ 1,601 Interest cost 953 851 1,022 Expected return on plan assets (785 ) (728 ) (813 ) Recognized actuarial loss 32 267 41 Settlement income - (151 ) - Defined benefit expense $ 1,822 $ 1,979 $ 1,851 |
Weighted Average Assumptions | Weighted average liability assumptions as of December 31: 2022 2021 Discount rate 5.12 % 2.35 % Expected return on plan assets 4.89 % 2.54 % Rate of compensation increase 0.90 % 1.02 % Weighted average cost assumptions for the year ended December 31: 2022 2021 2020 Discount rate 2.35 % 1.87 % 2.69 % Expected return on plan assets 2.54 % 2.17 % 2.68 % Rate of compensation increase 1.02 % 1.07 % 0.88 % |
Amounts Recognized in Accumulated Other Comprehensive Loss | Amounts in accumulated other comprehensive loss at December 31 were as follows: (In thousands) 2022 2021 Unrecognized net actuarial loss $ 2,210 $ 221 Prior service cost 153 179 Total before tax effects $ 2,363 $ 400 |
Pension Adjustments Recognized in Accumulated Other Comprehensive Income | The pension adjustments, net of tax, recognized in OCI, were as follows: (In thousands) 2022 2021 2020 Net actuarial (loss) gain arising during the period $ (1,466 ) $ 1,528 $ (1,293 ) Prior service cost - - (32 ) Amortization of actuarial loss, included in defined benefit expense 27 84 32 Pension adjustment, net of tax $ (1,439 ) $ 1,612 $ (1,293 ) |
Pension Plan Assets by Asset Category | The following table presents the Company’s pension plan assets by asset category as of December 31, 2022 and 2021: Fair Value as of December 31, Fair Value Measurements at December 31, 2022 Using Fair Value Hierarchy Fair Value as of December 31, Fair Value Measurements at December 31, 2021 Using Fair Value Hierarchy (In thousands) 2022 Level 1 Level 2 Level 3 2021 Level 1 Level 2 Level 3 Equity Funds Domestic $ 5,208 $ 5,208 $ — $ — $ 7,033 $ 7,033 $ — $ — International 55 — 55 — 79 — 79 — International Fixed Income Funds 14,551 1,060 13,491 — 25,732 889 24,843 — Other investments 115 84 31 — 138 115 23 — Total assets at fair value $ 19,929 $ 6,352 $ 13,577 $ — $ 32,982 $ 8,037 $ 24,945 $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in OCI | The following table summarizes the changes in OCI for 2022, 2021, and 2020: (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balance as of December 31 $ (199 ) $ (672 ) $ (162,137 ) $ (163,008 ) Other comprehensive income (loss) before reclassifications (374 ) (1,325 ) 12,887 11,188 Amounts reclassified from OCI 1,322 32 (8,625 ) (7,271 ) Balance as of December 31 2020 $ 749 $ (1,965 ) $ (157,875 ) $ (159,091 ) Other comprehensive income (loss) before reclassifications 775 1,528 (26,809 ) (24,506 ) Amounts reclassified from OCI (1,318 ) 84 10,203 8,969 Balance as of December 31 2021 $ 206 $ (353 ) $ (174,481 ) $ (174,628 ) Other comprehensive income (loss) before reclassifications 215 (1,466 ) (23,816 ) (25,067 ) Amounts reclassified from OCI (1,020 ) 27 - (993 ) Balance as of December 31 2022 $ (599 ) $ (1,792 ) $ (198,297 ) $ (200,688 ) (1) Cash Flow Hedges and Pension Items are net of tax. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Earnings Before Income Taxes | Earnings before income taxes were as follows: (In thousands) 2022 2021 2020 United States $ 73,192 $ 71,764 $ 72,593 Foreign 109,012 85,720 65,252 Total $ 182,204 $ 157,484 $ 137,845 |
Provision for Income Taxes | The provision for income taxes was as follows: (In thousands) 2022 2021 2020 Current income tax expense: Federal $ 21,640 $ 16,807 $ 9,660 State 5,138 5,128 3,000 Foreign 25,549 22,875 24,418 52,327 44,810 37,078 Deferred benefit: Federal (8,520 ) (4,159 ) (6,918 ) State (1,353 ) (1,189 ) (565 ) Foreign (1,137 ) (723 ) (1,222 ) (11,010 ) (6,071 ) (8,705 ) Income taxes $ 41,317 $ 38,739 $ 28,373 |
Effective Income Tax Rate Reconciliation | The reconciliation between the U.S. Federal tax rate and the actual effective tax rate was as follows 2022 2021 2020 Taxes at statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal income tax benefit 1.7 3.0 2.2 Tax credits (1.3 ) (1.4 ) (1.5 ) Taxes on foreign earnings 2.9 4.7 2.8 Global Intangible Low-Taxed Income 0.4 0.7 0.1 Foreign Derived Intangible Income (1.0 ) (0.9 ) (1.1 ) Loss on balance sheet hedge - 0.7 2.0 Resolution of prior years’ tax matters (0.1 ) (0.4 ) (0.1 ) Valuation allowance adjustments (2.7 ) (2.9 ) (3.7 ) Nondeductible compensation 1.9 1.1 - Other, net (0.1 ) (1.0 ) (1.1 ) Effective tax rate 22.7 % 24.6 % 20.6 % Certain reclassifications to prior year amounts have been made to conform to current year presentation. |
Tax Effects of Temporary Differences - Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following: (In thousands) 2022 2021 Deferred tax assets: Benefit plans $ 8,601 $ 8,144 Liabilities and reserves 18,623 16,577 Operating loss and credit carryovers 60,070 68,646 Capitalized research and development costs 7,882 - Other 4,414 10,031 Gross deferred tax assets 99,590 103,398 Valuation allowance (28,073 ) (34,242 ) Deferred tax assets 71,517 69,156 Deferred tax liabilities: Property, plant, and equipment (34,174 ) (32,560 ) Goodwill (20,603 ) (21,044 ) Deferred tax liabilities (54,777 ) (53,604 ) Net deferred tax assets $ 16,740 $ 15,552 Certain reclassifications to prior year amounts have been made to conform to current year presentation. |
Reconciliation of Change in Liability for Unrecognized Tax Benefits | A reconciliation of the change in the liability for unrecognized tax benefits for 2022 and 2021 is as follows: (In thousands) 2022 2021 Balance at beginning of year $ 3,761 $ 7,445 Increases for tax positions taken in the current year 800 715 Decreases related to settlements with tax authorities (209 ) (3,643 ) Decreases as a result of lapse of the applicable statutes of limitations (338 ) (367 ) Foreign currency exchange rate changes (75 ) (389 ) Balance at the end of year $ 3,939 $ 3,761 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment and Geographic Information [Abstract] | |
Segment Information | Divestiture & other related costs and income and restructuring and other costs, including the operational improvement plan costs and income, for the years ended December , and , are further described in Note Divestitures, and Note Operational Improvement Plan, and are included in the operating income (loss) results in Corporate & Other below. In addition, the Company’s corporate expenses and share-based compensation are included in Corporate & Other. (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated 2022 : Revenue from external customers $ 710,592 $ 583,379 $ 143,068 $ — $ 1,437,039 Intersegment revenue 27,411 20,638 513 — 48,562 Total revenue 738,003 604,017 143,581 — 1,485,601 Operating income (loss) 105,424 114,619 29,492 (52,784 ) 196,751 Interest expense — — — 14,547 14,547 Earnings (loss) before income taxes 105,424 114,619 29,492 (67,331 ) 182,204 Assets 738,181 849,425 115,132 278,876 1,981,614 Capital expenditures 40,805 30,300 2,164 6,053 79,322 Depreciation and amortization 26,660 20,174 2,489 3,144 52,467 2021 : Revenue from external customers $ 717,688 $ 527,626 $ 134,950 $ — $ 1,380,264 Intersegment revenue 21,739 17,644 398 — 39,781 Total revenue 739,427 545,270 135,348 — 1,420,045 Operating income (loss) 98,660 103,575 26,330 (58,537 ) 170,028 Interest expense — — — 12,544 12,544 Earnings (loss) before income taxes 98,660 103,575 26,330 (71,081 ) 157,484 Assets 639,992 738,139 108,126 259,236 1,745,493 Capital expenditures 35,846 16,806 2,813 5,323 60,788 Depreciation and amortization 26,020 20,572 2,748 2,711 52,051 2020 : Revenue from external customers $ 724,483 $ 486,536 $ 120,982 $ — $ 1,332,001 Intersegment revenue 17,552 14,482 245 — 32,279 Total revenue 742,035 501,018 121,227 — 1,364,280 Operating income (loss) 90,974 96,034 22,075 (56,427 ) 152,656 Interest expense — — — 14,811 14,811 Earnings (loss) before income taxes 90,974 96,034 22,075 (71,238 ) 137,845 Assets 686,348 718,665 100,258 235,589 1,740,860 Capital expenditures 24,541 19,840 2,687 5,094 52,162 Depreciation and amortization 24,801 19,368 2,578 2,894 49,641 |
Geographical Information | The Company’s annual revenue summarized by geographic location is as follows: (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated 2022 : Revenue from external customers: North America $ 541,120 $ 304,778 $ 120 $ — $ 846,018 Europe 115,925 151,437 213 — 267,575 Asia Pacific 29,092 61,064 139,134 — 229,290 Other 24,455 66,100 3,601 — 94,156 Total revenue from external customers $ 710,592 $ 583,379 $ 143,068 $ — $ 1,437,039 Long-lived assets: North America $ 286,497 $ 271,075 $ — $ 107,784 $ 665,356 Europe 86,248 236,719 — 24 322,991 Asia Pacific 237 3,796 29,915 — 33,948 Other 389 24,150 — — 24,539 Total long-lived assets $ 373,371 $ 535,740 $ 29,915 $ 107,808 $ 1,046,834 2021 : Revenue from external customers: North America $ 523,960 $ 263,031 $ 116 $ — $ 787,107 Europe 135,348 142,741 140 — 278,229 Asia Pacific 29,880 59,914 131,772 — 221,566 Other 28,500 61,940 2,922 — 93,362 Total revenue from external customers $ 717,688 $ 527,626 $ 134,950 $ — $ 1,380,264 Long-lived assets: North America $ 268,934 $ 250,682 $ — $ 105,150 $ 624,766 Europe 91,934 225,916 — 25 317,875 Asia Pacific 275 4,513 32,901 — 37,689 Other 568 23,442 — — 24,010 Total long-lived assets $ 361,711 $ 504,553 $ 32,901 $ 105,175 $ 1,004,340 2020 : Revenue from external customers: North America $ 491,641 $ 241,608 $ 81 $ — $ 733,330 Europe 160,083 129,704 193 — 289,980 Asia Pacific 30,080 52,414 117,427 — 199,921 Other 42,679 62,810 3,281 — 108,770 Total revenue from external customers $ 724,483 $ 486,536 $ 120,982 $ — $ 1,332,001 Long-lived assets: North America $ 244,921 $ 252,906 $ — $ 102,577 $ 600,404 Europe 112,424 226,840 — — 339,264 Asia Pacific 204 4,670 31,834 — 36,708 Other 782 22,116 — — 22,898 Total long-lived assets $ 358,331 $ 506,532 $ 31,834 $ 102,577 $ 999,274 |
Product Lines | The Company’s revenue summarized by product portfolio is as follows: (In thousands) Flavors & Extracts Color Asia Pacific Consolidated 2022 : Flavors, Extracts & Flavor Ingredients $ 498,055 $ — $ — $ 498,055 Natural Ingredients 239,948 — — 239,948 Food & Pharmaceutical Colors — 437,065 — 437,065 Personal Care — 165,335 — 165,335 Inks — 1,617 — 1,617 Asia Pacific — — 143,581 143,581 Intersegment Revenue (27,411 ) (20,638 ) (513 ) (48,562 ) Total revenue from external customers $ 710,592 $ 583,379 $ 143,068 $ 1,437,039 2021 : Flavors, Extracts & Flavor Ingredients $ 455,818 $ — $ — $ 455,818 Natural Ingredients 255,772 — — 255,772 Fragrances 22,739 — — 22,739 Yogurt Fruit Preparations 5,098 — — 5,098 Food & Pharmaceutical Colors — 385,069 — 385,069 Personal Care — 158,237 — 158,237 Inks — 1,964 — 1,964 Asia Pacific — — 135,348 135,348 Intersegment Revenue (21,739 ) (17,644 ) (398 ) (39,781 ) Total revenue from external customers $ 717,688 $ 527,626 $ 134,950 $ 1,380,264 2020 : Flavors, Extracts & Flavor Ingredients $ 399,331 $ — $ — $ 399,331 Natural Ingredients 243,161 — — 243,161 Fragrances 85,354 — — 85,354 Yogurt Fruit Preparations 14,189 — — 14,189 Food & Pharmaceutical Colors — 346,269 — 346,269 Personal Care — 141,331 — 141,331 Inks — 13,418 — 13,418 Asia Pacific — — 121,227 121,227 Intersegment Revenue (17,552 ) (14,482 ) (245 ) (32,279 ) Total revenue from external customers $ 724,483 $ 486,536 $ 120,982 $ 1,332,001 |
Divestitures (Tables)
Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Divestitures [Abstract] | |
Divestiture and Other Related Costs | The following table summarizes the divestiture & other related costs for the year ended December 31, 2021: (In thousands) Yogurt Fruit Preparations Fragrances Inks Corporate/ Other Consolidated Non-cash impairment charges – Selling and administrative expenses $ (1,000 ) $ 1,062 $ - $ - $ 62 Non-cash charges – Cost of products sold - 95 (9 ) - 86 Reclassification of foreign currency translation and related items – Selling and administrative expenses - 10,201 2 - 10,203 Other costs - Selling and administrative expenses (1) 917 2,553 (281 ) 598 3,787 Total $ (83 ) $ 13,911 $ (288 ) $ 598 $ 14,138 (1) Other costs – Selling and administrative expenses include employee separation costs, bad debt expense, environmental remediation costs, professional services, accelerated depreciation, and other related costs. The following table summarizes the divestiture & other related costs for the year ended December 31, 2020: (In thousands) Yogurt Fruit Preparations Fragrances Inks Corporate/ Other Consolidated Non-cash impairment charges – Selling and administrative expenses $ 2,597 $ 2,055 $ 8,928 $ (861 ) $ 12,719 Non-cash charges – Cost of products sold 1,679 77 (203 ) 242 1,795 Reclassification of foreign currency translation and related items – Selling and administrative expenses - - (8,625 ) - (8,625 ) Other costs - Selling and administrative expenses (1) 337 3,029 892 2,008 6,266 Total $ 4,613 $ 5,161 $ 992 $ 1,389 $ 12,155 (1) Other costs – Selling and administrative expenses include employee separation costs, environmental remediation costs, professional services, accelerated depreciation, and other related costs. |
Operational Improvement Plan (T
Operational Improvement Plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operational Improvement Plan [Abstract] | |
Operational Improvement Plan Costs by Segment | The following table summarizes the Operational Improvement Plan income and expenses recorded in Selling and Administrative Expenses (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Employee separation $ (123 ) $ (8 ) $ (351 ) $ (482 ) Other income (1) - (3,624 ) - (3,624 ) Other costs (2) - 2,207 4 2,211 Total $ (123 ) $ (1,425 ) $ (347 ) $ (1,895 ) (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 by segment for the year ended December 31, 2020: (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Employee separation $ 352 $ 1,749 $ 589 $ 2,690 Other costs (1) - 640 9 649 Total $ 352 $ 2,389 $ 598 $ 3,339 (1) Other costs include professional services, accelerated depreciation, and other related costs. The Company recorded the Operational Improvement Plan expenses for the year ended December 31, 2020, as follows: (In thousands) Selling and Administrative Expenses Cost of Products Sold Consolidated Employee separation $ 2,690 $ - $ 2,690 Other costs (1) 614 35 649 Total $ 3,304 $ 35 $ 3,339 (1) Other costs include professional services, accelerated depreciation, and other related costs. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies, Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Nature of Operations [Abstract] | |
Number of reportable segments | 3 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies, Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories [Abstract] | |||
Inventories include finished and in-process products | $ 385,200 | $ 280,200 | |
Raw materials and supplies | 178,900 | 131,400 | |
Non-cash impairment charges | $ 0 | $ 100 | $ 1,800 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies, Property Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Building and Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant, and Equipment [Abstract] | |
Estimated useful lives | 5 years |
Building and Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant, and Equipment [Abstract] | |
Estimated useful lives | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant, and Equipment [Abstract] | |
Estimated useful lives | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant, and Equipment [Abstract] | |
Estimated useful lives | 20 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies, Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Intangible assets [Abstract] | |||||
Impairment charge | $ 0 | $ 0 | $ 0 | ||
Goodwill related to divestitures | $ 8,400 | ||||
Goodwill related to divestitures | $ (812) | [1] | $ 2,200 | ||
Minimum [Member] | |||||
Intangible assets [Abstract] | |||||
Useful lives of intangible assets | 5 years | ||||
Maximum [Member] | |||||
Intangible assets [Abstract] | |||||
Useful lives of intangible assets | 25 years | ||||
[1]In the fourth quarter of 2019, the Company met all of the assets held for sale criteria related to the divestitures of its inks product line and fragrances product line (excluding its essential oils product line). Goodwill was allocated to those disposal groups and was determined to be fully impaired based on the estimated fair value of each of the disposal groups. In 2021, the fair value of the fragrances product line (excluding its essential oils product line) disposal group increased, which increased the value of goodwill allocated to the disposal group by $0.8 million. See Note 14, Divestitures, for additional information. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies, Derivative Financial Instruments (Details) - Maximum [Member] | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Financial Instruments [Abstract] | |
Number of months for contracts to mature | 18 months |
Forward Exchange Contracts [Member] | |
Derivative Financial Instruments [Abstract] | |
Number of months for contracts to mature | 18 months |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies, Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator [Abstract] | |||
Net earnings | $ 140,887 | $ 118,745 | $ 109,472 |
Denominator [Abstract] | |||
Denominator for basic EPS - weighted average common shares (in shares) | 41,888 | 42,077 | 42,301 |
Effect of dilutive securities (in shares) | 325 | 181 | 45 |
Denominator for diluted EPS - diluted weighted average shares outstanding (in shares) | 42,213 | 42,258 | 42,346 |
Earnings per Common Share [Abstract] | |||
Basic (in dollars per share) | $ 3.36 | $ 2.82 | $ 2.59 |
Diluted (in dollars per share) | $ 3.34 | $ 2.81 | $ 2.59 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies, Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Research and Development [Abstract] | |||
Research and development costs | $ 42.2 | $ 34.3 | $ 38.5 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies, Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Advertising [Abstract] | |||
Advertising costs | $ 1.9 | $ 2.4 | $ 2 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Oct. 03, 2022 | Jul. 15, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisition [Abstract] | |||||
Acquisition of new businesses | $ 22,714 | $ 13,875 | $ 0 | ||
Goodwill | $ 415,715 | $ 420,034 | $ 423,290 | ||
Flavor Solutions, Inc. [Member] | |||||
Acquisition [Abstract] | |||||
Acquisition of new businesses | $ 14,900 | ||||
Net assets acquired | 400 | ||||
Goodwill | 9,500 | ||||
Flavor Solutions, Inc. [Member] | Customer Relationships [Member] | |||||
Acquisition [Abstract] | |||||
Intangibles assets acquired | $ 5,000 | ||||
Endemix [Member] | |||||
Acquisition [Abstract] | |||||
Acquisition of new businesses | $ 23,300 | ||||
Debt assumed | 1,300 | ||||
Amount of cash held back for indemnification claims | 1,700 | ||||
Period for cash to be held back for post-closing working capital adjustments and indemnification claims | 12 months | ||||
Net assets acquired | 9,000 | ||||
Goodwill | 9,400 | ||||
Endemix [Member] | Technological Know-how and Customer Relationships [Member] | |||||
Acquisition [Abstract] | |||||
Intangibles assets acquired | $ 4,900 |
Trade Accounts Receivable (Deta
Trade Accounts Receivable (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | |
Trade Accounts Receivable [Abstract] | ||
Number of portfolio segments | Segment | 1 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 4,877 | $ 3,891 |
Provision for expected credit losses | 944 | 1,631 |
Accounts written off | (1,305) | (434) |
Translation and other activity | (80) | (211) |
Ending balance | $ 4,436 | $ 4,877 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible assets [Abstract] | |||
Cost | $ 33,298 | $ 27,560 | |
Accumulated Amortization | (14,698) | (12,585) | |
Intangible assets expense [Abstract] | |||
Amortization expense of intangible assets | 2,000 | 1,800 | $ 1,500 |
Estimated Amortization Expense [Abstract] | |||
2023 | 2,300 | ||
2024 | 2,000 | ||
2025 | 2,000 | ||
2026 | 1,800 | ||
2027 | $ 1,600 | ||
Weighted Average [Member] | |||
Intangible assets [Abstract] | |||
Weighted Average Amortization Years | 16 years 2 months 12 days | ||
Technological Know-how [Member] | |||
Intangible assets [Abstract] | |||
Cost | $ 12,005 | 8,870 | |
Accumulated Amortization | $ (3,383) | (2,314) | |
Technological Know-how [Member] | Weighted Average [Member] | |||
Intangible assets [Abstract] | |||
Weighted Average Amortization Years | 14 years 4 months 24 days | ||
Customer Relationships [Member] | |||
Intangible assets [Abstract] | |||
Cost | $ 9,697 | 7,084 | |
Accumulated Amortization | $ (2,691) | (2,269) | |
Customer Relationships [Member] | Weighted Average [Member] | |||
Intangible assets [Abstract] | |||
Weighted Average Amortization Years | 19 years | ||
Patents, Trademarks, Non-compete Agreements and Other [Member] | |||
Intangible assets [Abstract] | |||
Cost | $ 11,596 | 11,606 | |
Accumulated Amortization | $ (8,624) | $ (8,002) | |
Patents, Trademarks, Non-compete Agreements and Other [Member] | Weighted Average [Member] | |||
Intangible assets [Abstract] | |||
Weighted Average Amortization Years | 15 years 7 months 6 days |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Goodwill activity [Roll Forward] | |||||
Balance as of beginning of period | $ 420,034 | $ 423,290 | |||
Currency translation impact | (13,759) | (11,900) | |||
Goodwill related to divestitures | (812) | [1] | $ 2,200 | ||
Acquisitions | [2] | 9,440 | 9,456 | ||
Balance as of end of period | 415,715 | 420,034 | 423,290 | ||
Flavors & Extracts [Member] | |||||
Goodwill activity [Roll Forward] | |||||
Balance as of beginning of period | 103,716 | 112,370 | |||
Currency translation impact | (2,796) | (17,298) | |||
Goodwill related to divestitures | [1] | (812) | |||
Acquisitions | [2] | 0 | 9,456 | ||
Balance as of end of period | 100,920 | 103,716 | 112,370 | ||
Color [Member] | |||||
Goodwill activity [Roll Forward] | |||||
Balance as of beginning of period | 311,264 | 305,263 | |||
Currency translation impact | (10,625) | 6,001 | |||
Goodwill related to divestitures | [1] | 0 | |||
Acquisitions | [2] | 9,440 | 0 | ||
Balance as of end of period | 310,079 | 311,264 | 305,263 | ||
Asia Pacific [Member] | |||||
Goodwill activity [Roll Forward] | |||||
Balance as of beginning of period | 5,054 | 5,657 | |||
Currency translation impact | (338) | (603) | |||
Goodwill related to divestitures | [1] | 0 | |||
Acquisitions | [2] | 0 | 0 | ||
Balance as of end of period | $ 4,716 | $ 5,054 | $ 5,657 | ||
[1]In the fourth quarter of 2019, the Company met all of the assets held for sale criteria related to the divestitures of its inks product line and fragrances product line (excluding its essential oils product line). Goodwill was allocated to those disposal groups and was determined to be fully impaired based on the estimated fair value of each of the disposal groups. In 2021, the fair value of the fragrances product line (excluding its essential oils product line) disposal group increased, which increased the value of goodwill allocated to the disposal group by $0.8 million. See Note 14, Divestitures, for additional information.[2]In 2021, the Company acquired Flavor Solutions, Inc. In 2022, the Company acquired Endemix. See Note 2, Acquisitions, for additional information. |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Extended lease term | 5 years | ||
Operating lease expense | $ 11,300 | $ 9,600 | $ 10,600 |
Cash paid for operating leases | 9,300 | 8,200 | 9,200 |
Right-of-use assets in exchange for operating lease obligations | 17,200 | 9,800 | $ 13,000 |
Right-of-use assets | $ 36,300 | $ 26,500 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent | |
Operating lease, liability, Current | $ 8,200 | $ 6,200 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current | |
Operating lease, liability, Noncurrent | $ 28,000 | $ 20,600 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | |
Weighted average remaining operating lease term | 6 years 6 months | ||
Weighted average discount rate for operating leases | 3.60% | ||
Maturities of Operating Lease Liabilities [Abstract] | |||
2023 | $ 9,297 | ||
2024 | 8,218 | ||
2025 | 4,827 | ||
2026 | 3,559 | ||
2027 | 2,969 | ||
Thereafter | 12,035 | ||
Total lease payments | 40,905 | ||
Less imputed interest | (4,638) | ||
Present value of lease liabilities | $ 36,267 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent |
Debt (Details)
Debt (Details) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2022 EUR (€) | Aug. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) Interest / Debt | Jul. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | May 31, 2021 USD ($) | |
Schedule of long term debt [Abstract] | ||||||
Long term debt | $ 631,092 | $ 503,629 | ||||
Less debt fees | (260) | (136) | ||||
Less current portion | (501) | (487) | ||||
Total long-term debt | 630,331 | 503,006 | ||||
Accounts receivable securitization program commitment amount | $ 85,000 | $ 30,000 | ||||
Maximum borrowing capacity | 85,000 | |||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
2023 | 231,654 | |||||
2024 | 160,939 | |||||
2025 | 55,208 | |||||
2026 | 140,469 | |||||
2027 | 42,822 | |||||
Total long-term debt maturities | 631,092 | 503,629 | ||||
Stand-by letters of credit outstanding | 2,800 | 2,800 | ||||
Short-term borrowings [Abstract] | ||||||
Short-term borrowings | 20,373 | 8,539 | ||||
Current maturities of long-term debt | $ 501 | $ 487 | ||||
Weighted-average interest rates on short-term borrowings | 5.47% | 1.55% | ||||
Minimum [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Interest coverage, required | Interest / Debt | 3 | |||||
Maximum [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Debt to EBITDA, required | Interest / Debt | 3.5 | |||||
SOFR Adjustment [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Interest rate | 0.10% | |||||
Applicable Margin [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Interest rate, stated percentage | 0.70% | |||||
Interest rate on secured loan | 0.70% | |||||
Revolving Credit Facility [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Long term debt | $ 225,469 | $ 86,000 | ||||
Average interest rate | 3.01% | 1.33% | ||||
Maximum borrowing capacity | $ 350,000 | |||||
Long term debt additional disclosures [Abstract] | ||||||
Remaining borrowing capacity | $ 206,700 | |||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
Total long-term debt maturities | $ 225,469 | $ 86,000 | ||||
Revolving Credit Facility [Member] | Minimum [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Maturity date | May 30, 2022 | |||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Maturity date | May 31, 2026 | |||||
Other Line of Credit Facility [Member] | ||||||
Long term debt additional disclosures [Abstract] | ||||||
Remaining borrowing capacity | $ 25,500 | |||||
U.S. Credit Facilities [Member] | ||||||
Short-term borrowings [Abstract] | ||||||
Short-term borrowings | 19,872 | 7,284 | ||||
Loans of Foreign Subsidiaries [Member] | ||||||
Short-term borrowings [Abstract] | ||||||
Short-term borrowings | 0 | 768 | ||||
3.66% Senior Notes due November 2023 [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Long term debt | $ 75,000 | 75,000 | ||||
Interest rate, stated percentage | 3.66% | |||||
Maturity date | Nov. 30, 2023 | |||||
Interest rate on secured loan | 3.66% | |||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
Total long-term debt maturities | $ 75,000 | 75,000 | ||||
3.65% Senior Notes due May 2024 [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Long term debt | $ 27,000 | 27,000 | ||||
Interest rate, stated percentage | 3.65% | |||||
Maturity date | May 31, 2024 | |||||
Interest rate on secured loan | 3.65% | |||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
Total long-term debt maturities | $ 27,000 | 27,000 | ||||
4.19% Senior Notes due November 2025 [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Long term debt | $ 25,000 | 25,000 | ||||
Interest rate, stated percentage | 4.19% | |||||
Maturity date | Nov. 30, 2025 | |||||
Interest rate on secured loan | 4.19% | |||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
Total long-term debt maturities | $ 25,000 | 25,000 | ||||
1.85% Euro-denominated Senior Notes due November 2022 [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Long term debt | $ 0 | 76,017 | ||||
Interest rate, stated percentage | 1.85% | 1.85% | ||||
Maturity date | Nov. 30, 2022 | |||||
Interest rate on secured loan | 1.85% | 1.85% | ||||
Repayment of debt | € | € 66.9 | |||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
Total long-term debt maturities | $ 0 | 76,017 | ||||
3.06% Euro-denominated Senior Notes due November 2023 [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Long term debt | $ 40,945 | 43,487 | ||||
Interest rate, stated percentage | 3.06% | |||||
Maturity date | Nov. 30, 2023 | |||||
Interest rate on secured loan | 3.06% | |||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
Total long-term debt maturities | $ 40,945 | 43,487 | ||||
1.27% Euro-denominated Senior Notes due May 2024 [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Long term debt | $ 53,527 | 56,850 | ||||
Interest rate, stated percentage | 1.27% | |||||
Maturity date | May 31, 2024 | |||||
Interest rate on secured loan | 1.27% | |||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
Total long-term debt maturities | $ 53,527 | 56,850 | ||||
1.71% Euro-denominated Senior Notes due May 2027 [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Long term debt | $ 42,822 | 45,480 | ||||
Interest rate, stated percentage | 1.71% | |||||
Maturity date | May 31, 2027 | |||||
Interest rate on secured loan | 1.71% | |||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
Total long-term debt maturities | $ 42,822 | 45,480 | ||||
2.53% British Pound-denominated Notes due November 2023 [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Long term debt | $ 30,208 | 33,829 | ||||
Interest rate, stated percentage | 2.53% | |||||
Maturity date | Nov. 30, 2023 | |||||
Interest rate on secured loan | 2.53% | |||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
Total long-term debt maturities | $ 30,208 | 33,829 | ||||
2.76% British Pound-denominated Notes due November 2025 [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Long term debt | $ 30,208 | 33,829 | ||||
Interest rate, stated percentage | 2.76% | |||||
Maturity date | Nov. 30, 2025 | |||||
Interest rate on secured loan | 2.76% | |||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
Total long-term debt maturities | $ 30,208 | 33,829 | ||||
Euro Denominated Term Loan [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Long term debt | $ 80,291 | 0 | ||||
Average interest rate | 2.72% | |||||
Maturity date | Nov. 30, 2024 | |||||
Unsecured debt | € | € 75 | |||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
Total long-term debt maturities | $ 80,291 | 0 | ||||
Various Other Notes [Member] | ||||||
Schedule of long term debt [Abstract] | ||||||
Long term debt | 622 | 1,137 | ||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | ||||||
Total long-term debt maturities | $ 622 | $ 1,137 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative instruments and hedging activity for the period [Abstract] | |||
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ 19,340 | $ 17,937 | $ (24,044) |
Maximum [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Number of months for contracts to mature | 18 months | ||
Forward Exchange Contracts [Member] | 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 Hedging [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Derivative, fair value | $ 70,100 | 48,600 | |
Amount of gains (losses) reclassified into net earnings | 1,000 | 1,300 | (1,300) |
Foreign Currency Denominated Debt, Net Investment Hedging [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Amount of gains (losses) reclassified into net earnings | (4,200) | $ (10,800) | |
Carrying value of foreign denominated debt | 315,500 | 289,500 | |
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ (19,300) | $ (17,900) |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2017 | |
Additional Disclosures [Abstract] | ||||||
Total pre-tax share-based compensation expense (income) recognized in the Consolidated Statements of Earnings | $ 16,100 | $ 9,600 | $ 5,600 | |||
Tax related benefits (expense) | $ 1,200 | $ 1,000 | $ 800 | |||
Non-vested Stock [Member] | ||||||
Stock Unit Activity [Roll Forward] | ||||||
Outstanding, beginning of period (in shares) | 482 | 451 | 404 | |||
Granted (in shares) | 168 | 129 | 142 | |||
Vested (in shares) | (62) | (25) | (27) | |||
Cancelled (in shares) | (69) | (73) | (68) | |||
Outstanding, end of period (in shares) | 519 | 482 | 451 | |||
Grant Date Weighted Average Fair Value [Abstract] | ||||||
Outstanding, beginning of period (in dollars per share) | $ 69.15 | $ 63.28 | $ 64.89 | |||
Granted (in dollars per share) | 73.52 | 90.1 | 65.61 | |||
Vested (in dollars per share) | 58.81 | 61.91 | 74.21 | |||
Cancelled (in dollars per share) | 58.62 | 72.37 | 73.39 | |||
Outstanding, end of period (in dollars per share) | $ 73.19 | $ 69.15 | $ 63.28 | |||
Aggregate Intrinsic Value [Abstract] | ||||||
Outstanding, aggregate intrinsic value | $ 37,883 | $ 48,271 | $ 33,283 | $ 26,710 | ||
Additional Disclosures [Abstract] | ||||||
Total intrinsic values of shares vested | 5,100 | $ 1,900 | $ 1,400 | |||
Non-vested Stock and Performance Stock Units [Member] | ||||||
Additional Disclosures [Abstract] | ||||||
Compensation cost not yet recognized | $ 23,300 | |||||
Compensation cost not yet recognized, period for recognition | 2 years 1 month 24 days | |||||
2017 Stock Plan [Member] | Non-vested Stock [Member] | ||||||
Share-based Compensation Arrangement [Abstract] | ||||||
Number of shares authorized for issuance (in shares) | 1,800 | |||||
Award vesting period | 3 years | |||||
Percentage of grants to elected officers that will be performance stock unit awards | 60% | 60% | 100% | |||
Percentage of grants to elected officers, non-vested restricted stock awards | 40% | 40% | ||||
Number of years to measure performance metrics | 3 years | |||||
2017 Stock Plan [Member] | Non-vested Stock [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement [Abstract] | ||||||
Percentage of stated performance metrics award of grant | 200% | 200% | 200% | |||
Amended and Restated 2017 Stock Plan [Member] | Non-vested Stock [Member] | ||||||
Share-based Compensation Arrangement [Abstract] | ||||||
Number of shares authorized for issuance (in shares) | 2,150 | |||||
Increase in number of shares authorized for issuance (in shares) | 350 | |||||
Number of shares available for issuance (in shares) | 1,300 | |||||
Amended and Restated Directors Deferred Compensation Plan [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement [Abstract] | ||||||
Number of shares available for issuance (in shares) | 200 |
Retirement Plans, Defined Contr
Retirement Plans, Defined Contribution Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan [Member] | |||
Defined Contribution Pension and Other Postretirement Benefit Expense [Abstract] | |||
Percentage of matching contributions under defined contribution plan | 4% | ||
Total expense for defined contribution plans | $ 7,800 | $ 6,700 | $ 6,100 |
Pension Plan [Member] | |||
Benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 41,780 | 45,631 | |
Service cost | 1,622 | 1,740 | 1,601 |
Interest cost | 953 | 851 | 1,022 |
Foreign currency exchange rate changes | (1,488) | (291) | |
Benefits and settlements paid | (1,724) | (3,298) | |
Actuarial gain | (8,776) | (2,853) | |
Benefit obligation at end of year | 32,367 | 41,780 | 45,631 |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at beginning of year | 32,982 | 35,676 | |
Company contributions | 1,027 | 947 | |
Foreign currency exchange rate changes | (2,430) | (297) | |
Benefits paid | (1,724) | (1,718) | |
Settlement payments | 0 | (1,580) | |
Actual loss on plan assets | (9,926) | (46) | |
Plan assets at end of year | 19,929 | 32,982 | 35,676 |
Funded status | (12,438) | (8,798) | |
Accumulated benefit obligation | 31,472 | 40,873 | |
Amounts recognized in Consolidated Balance Sheets [Abstract] | |||
Accrued employee and retiree benefits | (16,822) | (18,375) | |
Other accrued expenses | (745) | (693) | |
Other assets | 5,129 | 10,270 | |
Net liability | (12,438) | (8,798) | |
Components of annual benefit cost [Abstract] | |||
Service cost | 1,622 | 1,740 | 1,601 |
Interest cost | 953 | 851 | 1,022 |
Expected return on plan assets | (785) | (728) | (813) |
Recognized actuarial loss | 32 | 267 | 41 |
Settlement income | 0 | (151) | 0 |
Defined benefit expense | $ 1,822 | $ 1,979 | $ 1,851 |
Weighted average liability assumptions [Abstract] | |||
Discount rate | 5.12% | 2.35% | |
Expected return on plan assets | 4.89% | 2.54% | |
Rate of compensation increase | 0.90% | 1.02% | |
Weighted average cost assumption [Abstract] | |||
Discount rate | 2.35% | 1.87% | 2.69% |
Expected return on plan assets | 2.54% | 2.17% | 2.68% |
Rate of compensation increase | 1.02% | 1.07% | 0.88% |
Estimated Future Benefit Payments [Abstract] | |||
2023 | $ 1,700 | ||
2024 | 9,000 | ||
2025 | 1,500 | ||
2026 | 1,600 | ||
2027 | 1,600 | ||
2028 through 2032 | 10,100 | ||
Estimated future employer contributions for next fiscal year | 800 | ||
Amounts recognized in Accumulated Other Comprehensive Loss [Abstract] | |||
Unrecognized net actuarial loss | 2,210 | $ 221 | |
Prior service cost | 153 | 179 | |
Total before tax effects | 2,363 | 400 | |
Other Comprehensive Income (Loss), Pension Adjustment, Net of Tax [Abstract] | |||
Net actuarial (loss) gain arising during the period | (1,466) | 1,528 | $ (1,293) |
Prior service cost | 0 | 0 | (32) |
Amortization of actuarial loss, included in defined benefit expense | 27 | 84 | 32 |
Pension adjustment, net of tax | $ (1,439) | $ 1,612 | $ (1,293) |
Retirement Plans, Pension Plan
Retirement Plans, Pension Plan Assets (Details) - Pension Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | $ 19,929 | $ 32,982 | $ 35,676 |
Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 6,352 | 8,037 | |
Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 13,577 | 24,945 | |
Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Domestic [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 5,208 | 7,033 | |
Domestic [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 5,208 | 7,033 | |
Domestic [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Domestic [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
International [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 55 | 79 | |
International [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
International [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 55 | 79 | |
International [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
International Fixed Income Funds [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 14,551 | 25,732 | |
International Fixed Income Funds [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 1,060 | 889 | |
International Fixed Income Funds [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 13,491 | 24,843 | |
International Fixed Income Funds [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Other Investments [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 115 | 138 | |
Other Investments [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 84 | 115 | |
Other Investments [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 31 | 23 | |
Other Investments [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 938,425 | |||
Other comprehensive income (loss) before reclassifications | (25,067) | $ (24,506) | $ 11,188 | |
Amounts reclassified from OCI | (993) | 8,969 | (7,271) | |
Ending balance | 999,598 | 938,425 | ||
Accumulated Other Comprehensive (Loss) Income [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (174,628) | (159,091) | (163,008) | |
Ending balance | (200,688) | (174,628) | (159,091) | |
Cash Flow Hedges [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | [1] | 206 | 749 | (199) |
Other comprehensive income (loss) before reclassifications | [1] | 215 | 775 | (374) |
Amounts reclassified from OCI | [1] | (1,020) | (1,318) | 1,322 |
Ending balance | [1] | (599) | 206 | 749 |
Pension Items [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | [1] | (353) | (1,965) | (672) |
Other comprehensive income (loss) before reclassifications | [1] | (1,466) | 1,528 | (1,325) |
Amounts reclassified from OCI | [1] | 27 | 84 | 32 |
Ending balance | [1] | (1,792) | (353) | (1,965) |
Foreign Currency Items [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (174,481) | (157,875) | (162,137) | |
Other comprehensive income (loss) before reclassifications | (23,816) | (26,809) | 12,887 | |
Amounts reclassified from OCI | 0 | 10,203 | (8,625) | |
Ending balance | $ (198,297) | $ (174,481) | $ (157,875) | |
[1]Cash Flow Hedges and Pension Items are net of tax. |
Income Taxes, Earnings Before I
Income Taxes, Earnings Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings before income taxes [Abstract] | |||
United States | $ 73,192 | $ 71,764 | $ 72,593 |
Foreign | 109,012 | 85,720 | 65,252 |
Earnings before income taxes | $ 182,204 | $ 157,484 | $ 137,845 |
Income Taxes, Provision for Inc
Income Taxes, Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current income tax expense [Abstract] | |||
Federal | $ 21,640 | $ 16,807 | $ 9,660 |
State | 5,138 | 5,128 | 3,000 |
Foreign | 25,549 | 22,875 | 24,418 |
Current income tax expense | 52,327 | 44,810 | 37,078 |
Deferred benefit [Abstract] | |||
Federal | (8,520) | (4,159) | (6,918) |
State | (1,353) | (1,189) | (565) |
Foreign | (1,137) | (723) | (1,222) |
Deferred income tax benefit | (11,010) | (6,071) | (8,705) |
Income taxes | $ 41,317 | $ 38,739 | $ 28,373 |
Income Taxes, Tax Reconciliatio
Income Taxes, Tax Reconciliation and Tax Cuts and Jobs Act (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective tax rate reconciliation [Abstract] | |||
Taxes at statutory rate | 21% | 21% | 21% |
State income taxes, net of federal income tax benefit | 1.70% | 3% | 2.20% |
Tax credits | (1.30%) | (1.40%) | (1.50%) |
Taxes on foreign earnings | 2.90% | 4.70% | 2.80% |
Global Intangible Low-Taxed Income | 0.40% | 0.70% | 0.10% |
Foreign Derived Intangible Income | (1.00%) | (0.90%) | (1.10%) |
Loss on balance sheet hedge | 0% | 0.70% | 2% |
Resolution of prior years' tax matters | (0.10%) | (0.40%) | (0.10%) |
Valuation allowance adjustments | (2.70%) | (2.90%) | (3.70%) |
Nondeductible compensation | 1.90% | 1.10% | 0% |
Other, net | (0.10%) | (1.00%) | (1.10%) |
Effective tax rate | 22.70% | 24.60% | 20.60% |
Valuation Allowance [Abstract] | |||
Valuation allowance | $ (28,073) | $ (34,242) |
Income Taxes, Deferred Tax Asse
Income Taxes, Deferred Tax Assets and Liabilities, Operating Loss Carryovers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred tax assets [Abstract] | ||
Benefit plans | $ 8,601 | $ 8,144 |
Liabilities and reserves | 18,623 | 16,577 |
Operating loss and credit carryovers | 60,070 | 68,646 |
Capitalized research and development costs | 7,882 | 0 |
Other | 4,414 | 10,031 |
Gross deferred tax assets | 99,590 | 103,398 |
Valuation allowance | (28,073) | (34,242) |
Deferred tax assets | 71,517 | 69,156 |
Deferred tax liabilities [Abstract] | ||
Property, plant, and equipment | (34,174) | (32,560) |
Goodwill | (20,603) | (21,044) |
Deferred tax liabilities | (54,777) | (53,604) |
Net deferred tax assets | 16,740 | $ 15,552 |
Operating Loss Carryforwards [Abstract] | ||
Operating loss carryovers, tax credit | 34,300 | |
Undistributed earnings | 673,900 | |
Withholding of tax liability | 34,700 | |
Foreign [Member] | ||
Operating Loss Carryforwards [Abstract] | ||
Operating loss carryovers | 68,200 | |
Operating loss carryovers, subject to expiration | 8,000 | |
Operating loss carryovers, not subject to expiration | 60,200 | |
State [Member] | ||
Operating Loss Carryforwards [Abstract] | ||
Operating loss carryovers | 119,000 | |
Operating loss carryovers, subject to expiration | $ 119,000 |
Income Taxes, Unrecognized Tax
Income Taxes, Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of change in liability for unrecognized tax benefits [Roll Forward] | ||
Balance at beginning of year | $ 3,761 | $ 7,445 |
Increases for tax positions taken in the current year | 800 | 715 |
Decreases related to settlements with tax authorities | (209) | (3,643) |
Decreases as a result of lapse of the applicable statutes of limitations | (338) | (367) |
Foreign currency exchange rate changes | (75) | (389) |
Balance at the end of year | 3,939 | 3,761 |
Income tax uncertainties [Abstract] | ||
Unrecognized tax benefits that would impact the effective tax rate, if recognized | 3,900 | |
Income tax interest and penalties accrued | 400 | $ 400 |
Expected decrease in liability for unrecognized tax benefits in the next fiscal year | 800 | |
Unrecognized tax benefits that would impact the effective tax rate in the next fiscal year | $ 700 |
Segment and Geographic Inform_3
Segment and Geographic Information, Reportable Segments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment and Geographic Information [Abstract] | |||
Number of reportable segment | Segment | 3 | ||
Revenue [Abstract] | |||
Revenue | $ 1,437,039 | $ 1,380,264 | $ 1,332,001 |
Operating income (loss) | 196,751 | 170,028 | 152,656 |
Interest expense | 14,547 | 12,544 | 14,811 |
Earnings before income taxes | 182,204 | 157,484 | 137,845 |
Assets | 1,981,614 | 1,745,493 | 1,740,860 |
Capital expenditures | 79,322 | 60,788 | 52,162 |
Depreciation and amortization | 52,467 | 52,051 | 49,641 |
Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue | 710,592 | 717,688 | 724,483 |
Operating income (loss) | 105,424 | 98,660 | 90,974 |
Interest expense | 0 | 0 | 0 |
Earnings before income taxes | 105,424 | 98,660 | 90,974 |
Assets | 738,181 | 639,992 | 686,348 |
Capital expenditures | 40,805 | 35,846 | 24,541 |
Depreciation and amortization | 26,660 | 26,020 | 24,801 |
Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 583,379 | 527,626 | 486,536 |
Operating income (loss) | 114,619 | 103,575 | 96,034 |
Interest expense | 0 | 0 | 0 |
Earnings before income taxes | 114,619 | 103,575 | 96,034 |
Assets | 849,425 | 738,139 | 718,665 |
Capital expenditures | 30,300 | 16,806 | 19,840 |
Depreciation and amortization | 20,174 | 20,572 | 19,368 |
Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 143,068 | 134,950 | 120,982 |
Operating income (loss) | 29,492 | 26,330 | 22,075 |
Interest expense | 0 | 0 | 0 |
Earnings before income taxes | 29,492 | 26,330 | 22,075 |
Assets | 115,132 | 108,126 | 100,258 |
Capital expenditures | 2,164 | 2,813 | 2,687 |
Depreciation and amortization | 2,489 | 2,748 | 2,578 |
Reportable Segments [Member] | |||
Revenue [Abstract] | |||
Revenue | 1,485,601 | 1,420,045 | 1,364,280 |
Reportable Segments [Member] | Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue | 738,003 | 739,427 | 742,035 |
Reportable Segments [Member] | Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 604,017 | 545,270 | 501,018 |
Reportable Segments [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 143,581 | 135,348 | 121,227 |
Intersegment Revenue [Member] | |||
Revenue [Abstract] | |||
Revenue | 48,562 | 39,781 | 32,279 |
Intersegment Revenue [Member] | Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue | 27,411 | 21,739 | 17,552 |
Intersegment Revenue [Member] | Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 20,638 | 17,644 | 14,482 |
Intersegment Revenue [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 513 | 398 | 245 |
Corporate & Other [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Operating income (loss) | (52,784) | (58,537) | (56,427) |
Interest expense | 14,547 | 12,544 | 14,811 |
Earnings before income taxes | (67,331) | (71,081) | (71,238) |
Assets | 278,876 | 259,236 | 235,589 |
Capital expenditures | 6,053 | 5,323 | 5,094 |
Depreciation and amortization | $ 3,144 | $ 2,711 | $ 2,894 |
Segment and Geographic Inform_4
Segment and Geographic Information, Segment and Geographic Info (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue [Abstract] | |||
Revenue from external customers | $ 1,437,039 | $ 1,380,264 | $ 1,332,001 |
Long-lived assets | 1,046,834 | 1,004,340 | 999,274 |
North America [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 846,018 | 787,107 | 733,330 |
Long-lived assets | 665,356 | 624,766 | 600,404 |
Europe [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 267,575 | 278,229 | 289,980 |
Long-lived assets | 322,991 | 317,875 | 339,264 |
Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 229,290 | 221,566 | 199,921 |
Long-lived assets | 33,948 | 37,689 | 36,708 |
Other [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 94,156 | 93,362 | 108,770 |
Long-lived assets | 24,539 | 24,010 | 22,898 |
Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 710,592 | 717,688 | 724,483 |
Long-lived assets | 373,371 | 361,711 | 358,331 |
Color [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 583,379 | 527,626 | 486,536 |
Long-lived assets | 535,740 | 504,553 | 506,532 |
Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 143,068 | 134,950 | 120,982 |
Long-lived assets | 29,915 | 32,901 | 31,834 |
Reportable Geographical Components [Member] | United States [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 711,100 | 658,000 | 614,300 |
Long-lived assets | 586,800 | 550,300 | 518,200 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | North America [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 541,120 | 523,960 | 491,641 |
Long-lived assets | 286,497 | 268,934 | 244,921 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Europe [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 115,925 | 135,348 | 160,083 |
Long-lived assets | 86,248 | 91,934 | 112,424 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 29,092 | 29,880 | 30,080 |
Long-lived assets | 237 | 275 | 204 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Other [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 24,455 | 28,500 | 42,679 |
Long-lived assets | 389 | 568 | 782 |
Reportable Geographical Components [Member] | Color [Member] | North America [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 304,778 | 263,031 | 241,608 |
Long-lived assets | 271,075 | 250,682 | 252,906 |
Reportable Geographical Components [Member] | Color [Member] | Europe [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 151,437 | 142,741 | 129,704 |
Long-lived assets | 236,719 | 225,916 | 226,840 |
Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 61,064 | 59,914 | 52,414 |
Long-lived assets | 3,796 | 4,513 | 4,670 |
Reportable Geographical Components [Member] | Color [Member] | Other [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 66,100 | 61,940 | 62,810 |
Long-lived assets | 24,150 | 23,442 | 22,116 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 120 | 116 | 81 |
Long-lived assets | 0 | 0 | 0 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 213 | 140 | 193 |
Long-lived assets | 0 | 0 | 0 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 139,134 | 131,772 | 117,427 |
Long-lived assets | 29,915 | 32,901 | 31,834 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 3,601 | 2,922 | 3,281 |
Long-lived assets | 0 | 0 | 0 |
Corporate & Other [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | 107,808 | 105,175 | 102,577 |
Corporate & Other [Member] | North America [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | 107,784 | 105,150 | 102,577 |
Corporate & Other [Member] | Europe [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | 24 | 25 | 0 |
Corporate & Other [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | 0 | 0 | 0 |
Corporate & Other [Member] | Other [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | $ 0 | $ 0 | $ 0 |
Segment and Geographic Inform_5
Segment and Geographic Information, Revenue from External Customers by Products Line (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue [Abstract] | |||
Revenue | $ 1,437,039 | $ 1,380,264 | $ 1,332,001 |
Flavors, Extracts & Flavor Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 498,055 | 455,818 | 399,331 |
Natural Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 239,948 | 255,772 | 243,161 |
Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | 22,739 | 85,354 | |
Yogurt Fruit Preparations [Member] | |||
Revenue [Abstract] | |||
Revenue | 5,098 | 14,189 | |
Food & Pharmaceutical Colors [Member] | |||
Revenue [Abstract] | |||
Revenue | 437,065 | 385,069 | 346,269 |
Personal Care [Member] | |||
Revenue [Abstract] | |||
Revenue | 165,335 | 158,237 | 141,331 |
Inks [Member] | |||
Revenue [Abstract] | |||
Revenue | 1,617 | 1,964 | 13,418 |
Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 143,581 | 135,348 | 121,227 |
Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue | 710,592 | 717,688 | 724,483 |
Flavors & Extracts [Member] | Flavors, Extracts & Flavor Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 498,055 | 455,818 | 399,331 |
Flavors & Extracts [Member] | Natural Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 239,948 | 255,772 | 243,161 |
Flavors & Extracts [Member] | Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | 22,739 | 85,354 | |
Flavors & Extracts [Member] | Yogurt Fruit Preparations [Member] | |||
Revenue [Abstract] | |||
Revenue | 5,098 | 14,189 | |
Flavors & Extracts [Member] | Food & Pharmaceutical Colors [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Flavors & Extracts [Member] | Personal Care [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Flavors & Extracts [Member] | Inks [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Flavors & Extracts [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 583,379 | 527,626 | 486,536 |
Color [Member] | Flavors, Extracts & Flavor Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Color [Member] | Natural Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Color [Member] | Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | |
Color [Member] | Yogurt Fruit Preparations [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | |
Color [Member] | Food & Pharmaceutical Colors [Member] | |||
Revenue [Abstract] | |||
Revenue | 437,065 | 385,069 | 346,269 |
Color [Member] | Personal Care [Member] | |||
Revenue [Abstract] | |||
Revenue | 165,335 | 158,237 | 141,331 |
Color [Member] | Inks [Member] | |||
Revenue [Abstract] | |||
Revenue | 1,617 | 1,964 | 13,418 |
Color [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 143,068 | 134,950 | 120,982 |
Asia Pacific [Member] | Flavors, Extracts & Flavor Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | Natural Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | |
Asia Pacific [Member] | Yogurt Fruit Preparations [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | |
Asia Pacific [Member] | Food & Pharmaceutical Colors [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | Personal Care [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | Inks [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 143,581 | 135,348 | 121,227 |
Intersegment Revenue [Member] | |||
Revenue [Abstract] | |||
Revenue | 48,562 | 39,781 | 32,279 |
Intersegment Revenue [Member] | Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue | 27,411 | 21,739 | 17,552 |
Intersegment Revenue [Member] | Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 20,638 | 17,644 | 14,482 |
Intersegment Revenue [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | $ 513 | $ 398 | $ 245 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Level 2 [Member] - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Fair Value Disclosure [Abstract] | ||
Forward exchange contract, liability | $ 0.2 | $ 0.2 |
Forward exchange contract, assets | 0.1 | 0.1 |
Carrying Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | 630.8 | 503.5 |
Fair Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | $ 622.2 | $ 520 |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Apr. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Divestiture Transactions [Abstract] | ||||||
Proceeds from divestiture of businesses | $ 2,532 | $ 37,790 | $ 12,595 | |||
Divestiture & other related costs [Abstract] | ||||||
Divestiture and other related costs | 14,138 | 12,155 | ||||
Yogurt Fruit Preparations [Member] | ||||||
Divestiture Transactions [Abstract] | ||||||
Proceeds from divestiture of businesses | 2,500 | 1,000 | 1,000 | |||
Divestiture & other related costs [Abstract] | ||||||
Divestiture and other related costs | (83) | 4,613 | ||||
Fragrances [Member] | ||||||
Divestiture Transactions [Abstract] | ||||||
Proceeds from divestiture of businesses | $ 36,300 | |||||
Non-cash gain (loss) on disposal of business | (11,300) | |||||
Divestiture & other related costs [Abstract] | ||||||
Divestiture and other related costs | 13,911 | 5,161 | ||||
Inks [Member] | ||||||
Divestiture Transactions [Abstract] | ||||||
Proceeds from divestiture of businesses | 500 | 11,600 | ||||
Divestiture & other related costs [Abstract] | ||||||
Divestiture and other related costs | (288) | 992 | ||||
Corporate & Other [Member] | ||||||
Divestiture & other related costs [Abstract] | ||||||
Divestiture and other related costs | 598 | 1,389 | ||||
Selling, General and Administrative Expenses [Member] | ||||||
Divestiture & other related costs [Abstract] | ||||||
Non-cash impairment charges | 62 | 12,719 | ||||
Reclassification of foreign currency translation and related items | 10,203 | (8,625) | ||||
Other costs | 3,787 | [1] | 6,266 | [2] | ||
Expenses recorded related to environmental obligations | 300 | 800 | ||||
Selling, General and Administrative Expenses [Member] | Yogurt Fruit Preparations [Member] | ||||||
Divestiture Transactions [Abstract] | ||||||
Non-cash gain (loss) on disposal of business | $ 2,500 | |||||
Divestiture & other related costs [Abstract] | ||||||
Non-cash impairment charges | (1,000) | 2,597 | ||||
Reclassification of foreign currency translation and related items | 0 | 0 | ||||
Other costs | 917 | [1] | 337 | [2] | ||
Selling, General and Administrative Expenses [Member] | Fragrances [Member] | ||||||
Divestiture & other related costs [Abstract] | ||||||
Non-cash impairment charges | 1,062 | 2,055 | ||||
Reclassification of foreign currency translation and related items | 10,201 | 0 | ||||
Other costs | 2,553 | [1] | 3,029 | [2] | ||
Selling, General and Administrative Expenses [Member] | Inks [Member] | ||||||
Divestiture & other related costs [Abstract] | ||||||
Non-cash impairment charges | 0 | 8,928 | ||||
Reclassification of foreign currency translation and related items | 2 | (8,625) | ||||
Other costs | (281) | [1] | 892 | [2] | ||
Selling, General and Administrative Expenses [Member] | Corporate & Other [Member] | ||||||
Divestiture & other related costs [Abstract] | ||||||
Non-cash impairment charges | 0 | (861) | ||||
Reclassification of foreign currency translation and related items | 0 | 0 | ||||
Other costs | 598 | [1] | 2,008 | [2] | ||
Cost of Products Sold [Member] | ||||||
Divestiture & other related costs [Abstract] | ||||||
Non-cash impairment charges | 86 | 1,795 | ||||
Cost of Products Sold [Member] | Yogurt Fruit Preparations [Member] | ||||||
Divestiture & other related costs [Abstract] | ||||||
Non-cash impairment charges | 0 | 1,679 | ||||
Cost of Products Sold [Member] | Fragrances [Member] | ||||||
Divestiture & other related costs [Abstract] | ||||||
Non-cash impairment charges | 95 | 77 | ||||
Cost of Products Sold [Member] | Inks [Member] | ||||||
Divestiture & other related costs [Abstract] | ||||||
Non-cash impairment charges | (9) | (203) | ||||
Cost of Products Sold [Member] | Corporate & Other [Member] | ||||||
Divestiture & other related costs [Abstract] | ||||||
Non-cash impairment charges | $ 0 | $ 242 | ||||
[1]Other costs – Selling and administrative expenses include employee separation costs, bad debt expense, environmental remediation costs, professional services, accelerated depreciation, and other related costs.[2]Other costs – Selling and administrative expenses include employee separation costs, environmental remediation costs, professional services, accelerated depreciation, and other related costs. |
Operational Improvement Plan (D
Operational Improvement Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | $ 3,339 | |||
Accrued liabilities related to the Operational Improvement Plan | $ 0 | $ 800 | ||
Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | $ 0 | (1,895) | 3,304 | |
Cost of Products Sold [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | 35 | |||
Employee Separation Costs [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | 2,690 | |||
Employee Separation Costs [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | (482) | 2,690 | ||
Employee Separation Costs [Member] | Cost of Products Sold [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | 0 | |||
Other Income [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [1] | (3,624) | ||
Other Costs [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [2] | 649 | ||
Other Costs [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [2] | 2,211 | 614 | |
Other Costs [Member] | Cost of Products Sold [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [2] | 35 | ||
Flavors & Extracts [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | 352 | |||
Flavors & Extracts [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | (123) | |||
Flavors & Extracts [Member] | Employee Separation Costs [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | 352 | |||
Flavors & Extracts [Member] | Employee Separation Costs [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | (123) | |||
Flavors & Extracts [Member] | Other Income [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [1] | 0 | ||
Flavors & Extracts [Member] | Other Costs [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [2] | 0 | ||
Flavors & Extracts [Member] | Other Costs [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [2] | 0 | ||
Color [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | 2,389 | |||
Color [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | (1,425) | |||
Color [Member] | Employee Separation Costs [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | 1,749 | |||
Color [Member] | Employee Separation Costs [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | (8) | |||
Color [Member] | Other Income [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [1] | (3,624) | ||
Color [Member] | Other Costs [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [2] | 640 | ||
Color [Member] | Other Costs [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [2] | 2,207 | ||
Asia Pacific [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | 598 | |||
Asia Pacific [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | (347) | |||
Asia Pacific [Member] | Employee Separation Costs [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | 589 | |||
Asia Pacific [Member] | Employee Separation Costs [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | (351) | |||
Asia Pacific [Member] | Other Income [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [1] | 0 | ||
Asia Pacific [Member] | Other Costs [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [2] | $ 9 | ||
Asia Pacific [Member] | Other Costs [Member] | Selling & Administrative Expenses [Member] | ||||
Restructuring Costs [Abstract] | ||||
Operational Improvement Plan costs | [2] | $ 4 | ||
[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. |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] | Jan. 20, 2023 $ / shares |
Subsequent Events [Abstract] | |
Dividend declared date | Jan. 20, 2023 |
Dividend payable (in dollars per share) | $ 0.41 |
Dividend payable date | Mar. 01, 2023 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Inks and Fragrances [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Allowance for credit loss | $ 456 | |||
Allowance for Trade Receivables [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 4,877 | 3,435 | $ 4,563 | |
Additions Charged to Costs and Expenses | 944 | 1,631 | 565 | |
Additions Recorded During Acquisitions | 0 | 0 | 0 | |
Deductions | [1] | 1,385 | 189 | 1,693 |
Balance at End of Period | $ 4,436 | $ 4,877 | $ 3,435 | |
[1]Accounts written off, net of recoveries. In 2021, $456 thousand was moved from Assets Held for Sale to Trade Accounts Receivable on the Consolidated Balance Sheet related to the fragrances divestiture. |