Sensient Technologies (SXT) 10-Q 7 May 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	Apr. 24, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	001-07626
Entity Registrant Name	Sensient Technologies Corp
Entity Central Index Key	0000310142
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-0561070
Entity Address, Address Line One	777 EAST WISCONSIN AVENUE
Entity Address, City or Town	MILWAUKEE
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53202-5304
City Area Code	414
Local Phone Number	271-6755
Title of 12(b) Security	Common stock, par value $0.10 per share
Trading Symbol	SXT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		42,364,905

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONSOLIDATED STATEMENTS OF EARNINGS [Abstract]
Revenue	$ 384,670	$ 369,006
Cost of products sold	258,121	244,343
Selling and administrative expenses	77,143	73,825
Operating income	49,406	50,838
Interest expense	7,045	6,002
Earnings before income taxes	42,361	44,836
Income taxes	11,421	11,185
Net earnings	$ 30,940	$ 33,651
Weighted average number of common shares outstanding:
Basic (in shares)	42,104	41,970
Diluted (in shares)	42,305	42,255
Earnings per common share:
Basic (in dollars per share)	$ 0.73	$ 0.8
Diluted (in dollars per share)	0.73	0.8
Dividends declared per common share (in dollars per share)	$ 0.41	$ 0.41

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Comprehensive income	$ 27,329	$ 49,952

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 25,417	$ 28,934
Trade accounts receivable	298,488	272,164
Inventories	568,547	598,399
Prepaid expenses and other current assets	50,391	37,119
Total current assets	942,843	936,616
Other assets	93,960	94,873
Deferred tax assets	38,444	41,564
Intangible assets, net	11,706	12,112
Goodwill	420,541	424,065
Property, Plant, and Equipment:
Land	31,496	31,901
Buildings	349,052	343,594
Machinery and equipment	794,891	781,789
Construction in progress	44,403	59,091
Property, plant, and equipment, gross	1,219,842	1,216,375
Less accumulated depreciation	(721,654)	(711,098)
Property, plant, and equipment, net	498,188	505,277
Total assets	2,005,682	2,014,507
Current Liabilities:
Trade accounts payable	104,834	131,114
Accrued salaries, wages, and withholdings from employees	26,079	26,412
Other accrued expenses	52,503	52,024
Income taxes	16,004	13,296
Short-term borrowings	19,439	13,460
Total current liabilities	218,859	236,306
Deferred tax liabilities	14,072	14,260
Other liabilities	37,028	37,817
Accrued employee and retiree benefits	28,276	27,715
Long-term debt	643,511	645,085
Shareholders' Equity:
Common stock	5,396	5,396
Additional paid-in capital	112,389	115,941
Earnings reinvested in the business	1,740,500	1,726,872
Treasury stock, at cost	(618,621)	(622,768)
Accumulated other comprehensive loss	(175,728)	(172,117)
Total shareholders' equity	1,063,936	1,053,324
Total liabilities and shareholders' equity	$ 2,005,682	$ 2,014,507

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net earnings	$ 30,940	$ 33,651
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization	14,709	14,150
Share-based compensation expense	1,995	2,267
Net (gain) loss on assets	(193)	8
Portfolio Optimization Plan costs	1,189	0
Deferred income taxes	(4)	(2,351)
Changes in operating assets and liabilities:
Trade accounts receivable	(28,331)	(7,142)
Inventories	26,624	(4,374)
Prepaid expenses and other assets	(13,655)	(2,062)
Accounts payable and other accrued expenses	(21,993)	(19,251)
Accrued salaries, wages, and withholdings from employees	29	(21,187)
Income taxes	3,150	2,548
Other liabilities	674	698
Net cash provided by (used in) operating activities	15,134	(3,045)
Cash flows from investing activities
Acquisition of property, plant, and equipment	(11,030)	(22,278)
Proceeds from sale of assets	93	1
Other investing activities	(1)	(602)
Net cash used in investing activities	(10,938)	(22,879)
Cash flows from financing activities:
Proceeds from additional borrowings	38,053	50,827
Debt payments	(27,031)	(1,351)
Dividends paid	(17,312)	(17,255)
Other financing activities	(2,828)	(7,669)
Net cash (used in) provided by financing activities	(9,118)	24,552
Effect of exchange rate changes on cash and cash equivalents	1,405	4,468
Net (decrease) increase in cash and cash equivalents	(3,517)	3,096
Cash and cash equivalents at beginning of period	28,934	20,921
Cash and cash equivalents at end of period	$ 25,417	$ 24,017

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Earnings Reinvested in the Business [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Beginning balance at Dec. 31, 2022	$ 5,396	$ 124,043	$ 1,702,700	$ (631,853)	$ (200,688)	$ 999,598
Beginning balance (in shares) at Dec. 31, 2022				12,058,773
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	0	0	33,651	$ 0	0	33,651
Other comprehensive income (loss)	0	0	0	0	16,301	16,301
Cash dividends paid	0	0	(17,255)	0	0	(17,255)
Share-based compensation	0	2,267	0	0	0	2,267
Non-vested stock issued upon vesting	0	(11,956)	0	$ 11,956	0	0
Non-vested stock issued upon vesting (in shares)				(228,181)
Benefit plans	0	375	0	$ 952	0	1,327
Benefit plans (in shares)				(18,172)
Other	0	(2,140)	0	$ (5,528)	0	(7,668)
Other (in shares)				105,524
Ending balance at Mar. 31, 2023	5,396	112,589	1,719,096	$ (624,473)	(184,387)	1,028,221
Ending balance (in shares) at Mar. 31, 2023				11,917,944
Beginning balance at Dec. 31, 2023	5,396	115,941	1,726,872	$ (622,768)	(172,117)	1,053,324
Beginning balance (in shares) at Dec. 31, 2023				11,885,398
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	0	0	30,940	$ 0	0	30,940
Other comprehensive income (loss)	0	0	0	0	(3,611)	(3,611)
Cash dividends paid	0	0	(17,312)	0	0	(17,312)
Share-based compensation	0	1,995	0	0	0	1,995
Non-vested stock issued upon vesting	0	(5,365)	0	$ 5,365	0	0
Non-vested stock issued upon vesting (in shares)				(102,396)
Benefit plans	0	299	0	$ 1,122	0	1,421
Benefit plans (in shares)				(21,405)
Other	0	(481)	0	$ (2,340)	0	(2,821)
Other (in shares)				44,652
Ending balance at Mar. 31, 2024	$ 5,396	$ 112,389	$ 1,740,500	$ (618,621)	$ (175,728)	$ 1,063,936
Ending balance (in shares) at Mar. 31, 2024				11,806,249

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract]
Cash dividends per share (in dollars per share)	$ 0.41	$ 0.41

Accounting Policies

Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Accounting Policies	1. Accounting Policies In the opinion of Sensient Technologies Corporation (the Company), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of March 31, 2024, and the results of operations, comprehensive income, cash flows, and shareholders’ equity for the three months ended March 31, 2024 and 2023. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2023, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change.

Portfolio Optimization Plan

Portfolio Optimization Plan	3 Months Ended
	Mar. 31, 2024
Portfolio Optimization Plan [Abstract]
Portfolio Optimization Plan	2. Portfolio Optimization Plan During the fourth quarter of 2023, the board of directors of the Company approved a plan to undertake an effort to optimize certain production facilities and improve efficiencies within the Company (Portfolio Optimization Plan). As part of the Portfolio Optimization Plan, in the Flavors & Extracts segment, the Company began evaluating the potential closure of its manufacturing facility in Felinfach, Wales, United Kingdom, the potential closure of its sales office in Granada, Spain, and the potential centralization and elimination of certain selling and administrative positions, with such proposals remaining subject to information and consultation processes in certain countries. In addition, in the Color segment, the Company’s proposals include closing a manufacturing facility in Delta, British Columbia, Canada, closing a sales office in Argentina, and centralizing and eliminating certain production positions as well as potentially eliminating some selling and administrative positions, with such proposals remaining subject to information and consultation processes in certain countries. The Company reports all costs associated with the Portfolio Optimization Plan in the Corporate & Other segment. Selling and Administrative Expenses The Company recorded $3.4 million and $3.7 million of accrued liabilities in Other Accrued Expenses The following table summarizes the Portfolio Optimization Plan expenses by segment for the three months ended March 31, 2024: (In thousands) Flavors & Extracts Color Corporate & Other Consolidated Non-cash impairment charges – Selling and administrative expenses $ - $ 975 $ - $ 975 Non-cash charges – Cost of products sold 125 (18 ) - 107 Employee separation – Selling and administrative expenses 611 491 28 1,130 Other costs – Selling and administrative expenses (1) 316 284 - 600 Total $ 1,052 $ 1,732 $ 28 $ 2,812 (1) Other costs include professional services, accelerated depreciation, accelerated lease costs, and other related costs.

Trade Accounts Receivable

Trade Accounts Receivable	3 Months Ended
	Mar. 31, 2024
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. 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. The following table summarizes the changes in the allowance for doubtful accounts during the three-month periods ended March 31, 2024 and 2023: (In thousands) Three Months Ended March 31, 2024 Allowance for Doubtful Accounts Balance at December 31, 2023 $ 4,373 Provision for expected credit losses 307 Accounts written off (747 ) Translation and other activity (51 ) Balance at March 31, 2024 $ 3,882 (In thousands) Three Months Ended March 31, 2023 Allowance for Doubtful Accounts Balance at December 31, 2022 $ 4,436 Provision for expected credit losses 120 Accounts written off (614 ) Translation and other activity 103 Balance at March 31, 2023 $ 4,045

Inventories

Inventories	3 Months Ended
	Mar. 31, 2024
Inventories [Abstract]
Inventories	4. Inventories At March 31, 2024, and December 31, 2023, inventories included finished and in-process products totaling $416.9 million and $437.1 million, respectively, and raw materials and supplies of $151.6 million and $161.3 million, respectively.

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2024
Fair Value [Abstract]
Fair Value	5. Fair Value Accounting Standards Codification 820, Fair Value Measurement March 31, 2024 March 31, 2024 March 31, 2024 March 31, 2024

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2024
Segment Information [Abstract]
Segment Information	6. Segment Information The Company evaluates performance based on operating income before share-based compensation; restructuring and other charges, including Portfolio Optimization Plan costs The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. The Company’s three reportable segments are the Flavors & Extracts and Color segments, which are both managed on a product line basis, and the Asia Pacific segment, which is managed on a geographic basis. The Company’s Flavors & Extracts segment produces flavor, extracts, and essential oils products that impart a desired taste, texture, aroma, or other characteristics to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, such as colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color, flavor, and essential oils products in the Asia Pacific countries. The Company’s corporate expenses, share-based compensation, and restructuring and other charges, including Portfolio Optimization Plan costs, are included in the “Corporate & Other” category. Operating results by segment for the periods presented are as follows: (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated Three months ended March 31 2024 Revenue from external customers $ 188,022 $ 156,364 $ 40,284 $ - $ 384,670 Intersegment revenue 5,070 3,661 22 - 8,753 Total revenue $ 193,092 $ 160,025 $ 40,306 $ - $ 393,423 Operating income (loss) $ 23,678 $ 31,679 $ 8,776 $ (14,727 ) $ 49,406 Interest expense - - - 7,045 7,045 Earnings (loss) before income taxes $ 23,678 $ 31,679 $ 8,776 $ (21,772 ) $ 42,361 Three months ended March 31 2023 Revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ - $ 369,006 Intersegment revenue 6,880 4,212 - - 11,092 Total revenue $ 178,852 $ 161,161 $ 40,085 $ - $ 380,098 Operating income (loss) $ 22,180 $ 31,885 $ 9,241 $ (12,468 ) $ 50,838 Interest expense - - - 6,002 6,002 Earnings (loss) before income taxes $ 22,180 $ 31,885 $ 9,241 $ (18,470 ) $ 44,836 Product Lines (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended March 31 2024 Flavors, Extracts & Flavor Ingredients $ 124,805 $ - $ - $ 124,805 Natural Ingredients 68,287 - - 68,287 Food & Pharmaceutical Colors - 117,058 - 117,058 Personal Care - 42,967 - 42,967 Asia Pacific - - 40,306 40,306 Intersegment Revenue (5,070 ) (3,661 ) (22 ) (8,753 ) Total revenue from external customers $ 188,022 $ 156,364 $ 40,284 $ 384,670 Three months ended March 31 2023 Flavors, Extracts & Flavor Ingredients $ 124,825 $ - $ - $ 124,825 Natural Ingredients 54,027 - - 54,027 Food & Pharmaceutical Colors - 118,747 - 118,747 Personal Care - 42,414 - 42,414 Asia Pacific - - 40,085 40,085 Intersegment Revenue (6,880 ) (4,212 ) - (11,092 ) Total revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ 369,006 Geographic Markets (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended March 31 2024 North America $ 146,952 $ 75,120 $ - $ 222,072 Europe 32,157 46,162 46 78,365 Asia Pacific 3,706 17,419 38,685 59,810 Other 5,207 17,663 1,553 24,423 Total revenue from external customers $ 188,022 $ 156,364 $ 40,284 $ 384,670 Three months ended March 31 2023 North America $ 131,968 $ 78,377 $ 62 $ 210,407 Europe 28,927 43,252 103 72,282 Asia Pacific 5,201 18,149 39,195 62,545 Other 5,876 17,171 725 23,772 Total revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ 369,006

Retirement Plans

Retirement Plans	3 Months Ended
	Mar. 31, 2024
Retirement Plans [Abstract]
Retirement Plans	7. Retirement Plans The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows: Three Months Ended March 31, (In thousands) 2024 2023 Service cost $ 372 $ 368 Interest cost 401 409 Expected return on plan assets (242 ) (239 ) Recognized actuarial gain (91 ) (139 ) Total defined benefit expense $ 440 $ 399 The Company’s non-service cost portion of defined benefit expense is recorded in Interest Expense Selling and Administrative Expenses

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activity	3 Months Ended
	Mar. 31, 2024
Derivative Instruments and Hedging Activity [Abstract]
Derivative Instruments and Hedging Activity	8. Derivative Instruments and Hedging Activity The Company may use forward exchange contracts and foreign currency denominated debt to manage its exposure to foreign exchange risk in order to reduce the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company’s primary hedging activities and their accounting treatment are summarized below. Forward exchange contracts of forward exchange contracts designated as cash flow hedges outstanding as of March 31, 2024 and December 31, 2023, respectively. For the three months ended March 31, 2024 and 2023, the amounts reclassified into net earnings in the Company’s Consolidated Statements of Earnings that offset the underlying transactions’ impact on earnings in the same period were not material. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges. The results of these transactions were not material to the financial statements. Net investment hedges – 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 March 31, 2024 and December 31, 2023 March 31, 2024 and 2023, $4.4 million, respectively, which has been recorded as foreign currency translation in OCI.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Taxes [Abstract]
Income Taxes	9. Income Taxes The effective income tax ra tes for the three months ended March 31, 2024 and 2023, were 27.0% and 24.9%, respectively. The effective tax rates for the

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2024
Accumulated Other Comprehensive Income [Abstract]
Accumulated Other Comprehensive Income	10. Accumulated Other Comprehensive Income The following table summarizes the changes in OCI during the three-month periods ended March 31, 2024 and 2023: (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at December 31, 2023 $ 997 $ (2,079 ) $ (171,035 ) $ (172,117 ) Other comprehensive income (loss) before reclassifications 702 - (4,023 ) (3,321 ) Amounts reclassified from OCI (222 ) (68 ) - (290 ) Balances at March 31, 2024 $ 1,477 $ (2,147 ) $ (175,058 ) $ (175,728 ) (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at December 31, 2022 $ (599 ) $ (1,792 ) $ (198,297 ) $ (200,688 ) Other comprehensive income before reclassifications 1,700 - 14,841 16,541 Amounts reclassified from OCI (118 ) (122 ) - (240 ) Balances at March 31, 2023 $ 983 $ (1,914 ) $ (183,456 ) $ (184,387 ) (1) Cash Flow Hedges and Pension Items are net of tax.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies [Abstract]
Commitments and Contingencies	11. 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.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2024
Subsequent Event [Abstract]
Subsequent Event	12. Subsequent Event On April 25, 2024, the Company announced its quarterly dividend of $0.41 per share would be payable on June 3, 2024.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Accounting	The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures,

Portfolio Optimization Plan (Ta

Portfolio Optimization Plan (Tables)	3 Months Ended
	Mar. 31, 2024
Portfolio Optimization Plan [Abstract]
Portfolio Optimization Plan Expenses by Segment	The following table summarizes the Portfolio Optimization Plan expenses by segment for the three months ended March 31, 2024: (In thousands) Flavors & Extracts Color Corporate & Other Consolidated Non-cash impairment charges – Selling and administrative expenses $ - $ 975 $ - $ 975 Non-cash charges – Cost of products sold 125 (18 ) - 107 Employee separation – Selling and administrative expenses 611 491 28 1,130 Other costs – Selling and administrative expenses (1) 316 284 - 600 Total $ 1,052 $ 1,732 $ 28 $ 2,812 (1) Other costs include professional services, accelerated depreciation, accelerated lease costs, and other related costs.

Trade Accounts Receivable (Tabl

Trade Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2024
Trade Accounts Receivable [Abstract]
Changes in Allowance for Doubtful Accounts	The following table summarizes the changes in the allowance for doubtful accounts during the three-month periods ended March 31, 2024 and 2023: (In thousands) Three Months Ended March 31, 2024 Allowance for Doubtful Accounts Balance at December 31, 2023 $ 4,373 Provision for expected credit losses 307 Accounts written off (747 ) Translation and other activity (51 ) Balance at March 31, 2024 $ 3,882 (In thousands) Three Months Ended March 31, 2023 Allowance for Doubtful Accounts Balance at December 31, 2022 $ 4,436 Provision for expected credit losses 120 Accounts written off (614 ) Translation and other activity 103 Balance at March 31, 2023 $ 4,045

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Information [Abstract]
Operating Results by Segment	Operating results by segment for the periods presented are as follows: (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated Three months ended March 31 2024 Revenue from external customers $ 188,022 $ 156,364 $ 40,284 $ - $ 384,670 Intersegment revenue 5,070 3,661 22 - 8,753 Total revenue $ 193,092 $ 160,025 $ 40,306 $ - $ 393,423 Operating income (loss) $ 23,678 $ 31,679 $ 8,776 $ (14,727 ) $ 49,406 Interest expense - - - 7,045 7,045 Earnings (loss) before income taxes $ 23,678 $ 31,679 $ 8,776 $ (21,772 ) $ 42,361 Three months ended March 31 2023 Revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ - $ 369,006 Intersegment revenue 6,880 4,212 - - 11,092 Total revenue $ 178,852 $ 161,161 $ 40,085 $ - $ 380,098 Operating income (loss) $ 22,180 $ 31,885 $ 9,241 $ (12,468 ) $ 50,838 Interest expense - - - 6,002 6,002 Earnings (loss) before income taxes $ 22,180 $ 31,885 $ 9,241 $ (18,470 ) $ 44,836
Product Lines	Product Lines (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended March 31 2024 Flavors, Extracts & Flavor Ingredients $ 124,805 $ - $ - $ 124,805 Natural Ingredients 68,287 - - 68,287 Food & Pharmaceutical Colors - 117,058 - 117,058 Personal Care - 42,967 - 42,967 Asia Pacific - - 40,306 40,306 Intersegment Revenue (5,070 ) (3,661 ) (22 ) (8,753 ) Total revenue from external customers $ 188,022 $ 156,364 $ 40,284 $ 384,670 Three months ended March 31 2023 Flavors, Extracts & Flavor Ingredients $ 124,825 $ - $ - $ 124,825 Natural Ingredients 54,027 - - 54,027 Food & Pharmaceutical Colors - 118,747 - 118,747 Personal Care - 42,414 - 42,414 Asia Pacific - - 40,085 40,085 Intersegment Revenue (6,880 ) (4,212 ) - (11,092 ) Total revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ 369,006
Geographical Markets	Geographic Markets (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended March 31 2024 North America $ 146,952 $ 75,120 $ - $ 222,072 Europe 32,157 46,162 46 78,365 Asia Pacific 3,706 17,419 38,685 59,810 Other 5,207 17,663 1,553 24,423 Total revenue from external customers $ 188,022 $ 156,364 $ 40,284 $ 384,670 Three months ended March 31 2023 North America $ 131,968 $ 78,377 $ 62 $ 210,407 Europe 28,927 43,252 103 72,282 Asia Pacific 5,201 18,149 39,195 62,545 Other 5,876 17,171 725 23,772 Total revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ 369,006

Retirement Plans (Tables)

Retirement Plans (Tables)	3 Months Ended
	Mar. 31, 2024
Retirement Plans [Abstract]
Annual Benefit Cost	The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows: Three Months Ended March 31, (In thousands) 2024 2023 Service cost $ 372 $ 368 Interest cost 401 409 Expected return on plan assets (242 ) (239 ) Recognized actuarial gain (91 ) (139 ) Total defined benefit expense $ 440 $ 399

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2024
Accumulated Other Comprehensive Income [Abstract]
Changes in OCI	The following table summarizes the changes in OCI during the three-month periods ended March 31, 2024 and 2023: (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at December 31, 2023 $ 997 $ (2,079 ) $ (171,035 ) $ (172,117 ) Other comprehensive income (loss) before reclassifications 702 - (4,023 ) (3,321 ) Amounts reclassified from OCI (222 ) (68 ) - (290 ) Balances at March 31, 2024 $ 1,477 $ (2,147 ) $ (175,058 ) $ (175,728 ) (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at December 31, 2022 $ (599 ) $ (1,792 ) $ (198,297 ) $ (200,688 ) Other comprehensive income before reclassifications 1,700 - 14,841 16,541 Amounts reclassified from OCI (118 ) (122 ) - (240 ) Balances at March 31, 2023 $ 983 $ (1,914 ) $ (183,456 ) $ (184,387 ) (1) Cash Flow Hedges and Pension Items are net of tax.

Portfolio Optimization Plan (De

Portfolio Optimization Plan (Details) $ in Thousands		3 Months Ended
		Mar. 31, 2024 USD ($) Positions	Dec. 31, 2023 USD ($)
Portfolio Optimization Plan [Abstract]
Accrued liabilities related to portfolio optimization plan		$ 3,400	$ 3,700
Expected plan cost		$ 40,000
Number of reduced positions | Positions		120
Portfolio Optimization Plan Expenses [Abstract]
Portfolio optimization plan expenses		$ 2,812
Minimum [Member]
Portfolio Optimization Plan [Abstract]
Reduction of annual operating costs		8,000
Maximum [Member]
Portfolio Optimization Plan [Abstract]
Reduction of annual operating costs		10,000
Selling and Administrative Expenses [Member]
Portfolio Optimization Plan Expenses [Abstract]
Non-cash impairment charges		975
Employee separation		1,130
Other costs	[1]	600
Cost of Products Sold [Member]
Portfolio Optimization Plan Expenses [Abstract]
Non-cash impairment charges		107
Flavors & Extracts [Member]
Portfolio Optimization Plan Expenses [Abstract]
Portfolio optimization plan expenses		1,052
Flavors & Extracts [Member] | Selling and Administrative Expenses [Member]
Portfolio Optimization Plan Expenses [Abstract]
Non-cash impairment charges		0
Employee separation		611
Other costs	[1]	316
Flavors & Extracts [Member] | Cost of Products Sold [Member]
Portfolio Optimization Plan Expenses [Abstract]
Non-cash impairment charges		125
Color [Member]
Portfolio Optimization Plan Expenses [Abstract]
Portfolio optimization plan expenses		1,732
Color [Member] | Selling and Administrative Expenses [Member]
Portfolio Optimization Plan Expenses [Abstract]
Non-cash impairment charges		975
Employee separation		491
Other costs	[1]	284
Color [Member] | Cost of Products Sold [Member]
Portfolio Optimization Plan Expenses [Abstract]
Non-cash impairment charges		(18)
Corporate & Other [Member]
Portfolio Optimization Plan Expenses [Abstract]
Portfolio optimization plan expenses		28
Corporate & Other [Member] | Selling and Administrative Expenses [Member]
Portfolio Optimization Plan Expenses [Abstract]
Non-cash impairment charges		0
Employee separation		28
Other costs	[1]	0
Corporate & Other [Member] | Cost of Products Sold [Member]
Portfolio Optimization Plan Expenses [Abstract]
Non-cash impairment charges		$ 0
[1]Other costs include professional services, accelerated depreciation, accelerated lease costs, and other related costs.

Trade Accounts Receivable (Deta

Trade Accounts Receivable (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) Segment	Mar. 31, 2023 USD ($)
Trade Accounts Receivable [Abstract]
Number of portfolio segments | Segment	1
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 4,373	$ 4,436
Provision for expected credit losses	307	120
Accounts written off	(747)	(614)
Translation and other activity	(51)	103
Ending balance	$ 3,882	$ 4,045

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Inventories [Abstract]
Finished and in-process products	$ 416.9	$ 437.1
Raw materials and supplies	$ 151.6	$ 161.3

Fair Value (Details)

Fair Value (Details) - Level 2 [Member] - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Investments, Fair Value Disclosure [Abstract]
Forward exchange contract, asset	$ 1.4	$ 1
Carrying Value [Member]
Investments, Fair Value Disclosure [Abstract]
Long term debt	643.6	645.2
Fair Value [Member]
Investments, Fair Value Disclosure [Abstract]
Long term debt	$ 648.6	$ 653.7

Segment Information, Operating

Segment Information, Operating Results by Segment (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) Segment	Mar. 31, 2023 USD ($)
Segment Information [Abstract]
Number of reportable segments | Segment	3
Revenue [Abstract]
Revenue	$ 384,670	$ 369,006
Operating income (loss)	49,406	50,838
Interest expense	7,045	6,002
Earnings before income taxes	42,361	44,836
Flavors & Extracts [Member]
Revenue [Abstract]
Revenue	188,022	171,972
Operating income (loss)	23,678	22,180
Interest expense	0	0
Earnings before income taxes	23,678	22,180
Color [Member]
Revenue [Abstract]
Revenue	156,364	156,949
Operating income (loss)	31,679	31,885
Interest expense	0	0
Earnings before income taxes	31,679	31,885
Asia Pacific [Member]
Revenue [Abstract]
Revenue	40,284	40,085
Operating income (loss)	8,776	9,241
Interest expense	0	0
Earnings before income taxes	8,776	9,241
Reportable Segments [Member]
Revenue [Abstract]
Revenue	393,423	380,098
Reportable Segments [Member] | Flavors & Extracts [Member]
Revenue [Abstract]
Revenue	193,092	178,852
Reportable Segments [Member] | Color [Member]
Revenue [Abstract]
Revenue	160,025	161,161
Reportable Segments [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	40,306	40,085
Intersegment Revenue [Member]
Revenue [Abstract]
Revenue	8,753	11,092
Intersegment Revenue [Member] | Flavors & Extracts [Member]
Revenue [Abstract]
Revenue	5,070	6,880
Intersegment Revenue [Member] | Color [Member]
Revenue [Abstract]
Revenue	3,661	4,212
Intersegment Revenue [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	22	0
Corporate & Other [Member] | Corporate and Other [Member]
Revenue [Abstract]
Revenue	0	0
Operating income (loss)	(14,727)	(12,468)
Interest expense	7,045	6,002
Earnings before income taxes	$ (21,772)	$ (18,470)

Segment Information, Revenue fr

Segment Information, Revenue from External Customers by Product Line (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue [Abstract]
Revenue	$ 384,670	$ 369,006
Flavors, Extracts & Flavor Ingredients [Member]
Revenue [Abstract]
Revenue	124,805	124,825
Natural Ingredients [Member]
Revenue [Abstract]
Revenue	68,287	54,027
Food & Pharmaceutical Colors [Member]
Revenue [Abstract]
Revenue	117,058	118,747
Personal Care [Member]
Revenue [Abstract]
Revenue	42,967	42,414
Flavors & Extracts [Member]
Revenue [Abstract]
Revenue	188,022	171,972
Flavors & Extracts [Member] | Flavors, Extracts & Flavor Ingredients [Member]
Revenue [Abstract]
Revenue	124,805	124,825
Flavors & Extracts [Member] | Natural Ingredients [Member]
Revenue [Abstract]
Revenue	68,287	54,027
Flavors & Extracts [Member] | Food & Pharmaceutical Colors [Member]
Revenue [Abstract]
Revenue	0	0
Flavors & Extracts [Member] | Personal Care [Member]
Revenue [Abstract]
Revenue	0	0
Color [Member]
Revenue [Abstract]
Revenue	156,364	156,949
Color [Member] | Flavors, Extracts & Flavor Ingredients [Member]
Revenue [Abstract]
Revenue	0	0
Color [Member] | Natural Ingredients [Member]
Revenue [Abstract]
Revenue	0	0
Color [Member] | Food & Pharmaceutical Colors [Member]
Revenue [Abstract]
Revenue	117,058	118,747
Color [Member] | Personal Care [Member]
Revenue [Abstract]
Revenue	42,967	42,414
Asia Pacific [Member]
Revenue [Abstract]
Revenue	40,284	40,085
Asia Pacific [Member] | Flavors, Extracts & Flavor Ingredients [Member]
Revenue [Abstract]
Revenue	0	0
Asia Pacific [Member] | Natural Ingredients [Member]
Revenue [Abstract]
Revenue	0	0
Asia Pacific [Member] | Food & Pharmaceutical Colors [Member]
Revenue [Abstract]
Revenue	0	0
Asia Pacific [Member] | Personal Care [Member]
Revenue [Abstract]
Revenue	0	0
Reportable Segments [Member]
Revenue [Abstract]
Revenue	393,423	380,098
Reportable Segments [Member] | Flavors & Extracts [Member]
Revenue [Abstract]
Revenue	193,092	178,852
Reportable Segments [Member] | Color [Member]
Revenue [Abstract]
Revenue	160,025	161,161
Reportable Segments [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	40,306	40,085
Intersegment Revenue [Member]
Revenue [Abstract]
Revenue	8,753	11,092
Intersegment Revenue [Member] | Flavors & Extracts [Member]
Revenue [Abstract]
Revenue	5,070	6,880
Intersegment Revenue [Member] | Color [Member]
Revenue [Abstract]
Revenue	3,661	4,212
Intersegment Revenue [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	$ 22	$ 0

Segment Information, Revenue _2

Segment Information, Revenue from External Customers by Geographic Markets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue [Abstract]
Revenue	$ 384,670	$ 369,006
North America [Member]
Revenue [Abstract]
Revenue	222,072	210,407
Europe [Member]
Revenue [Abstract]
Revenue	78,365	72,282
Asia Pacific [Member]
Revenue [Abstract]
Revenue	59,810	62,545
Other [Member]
Revenue [Abstract]
Revenue	24,423	23,772
Flavors & Extracts [Member]
Revenue [Abstract]
Revenue	188,022	171,972
Color [Member]
Revenue [Abstract]
Revenue	156,364	156,949
Asia Pacific [Member]
Revenue [Abstract]
Revenue	40,284	40,085
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | North America [Member]
Revenue [Abstract]
Revenue	146,952	131,968
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Europe [Member]
Revenue [Abstract]
Revenue	32,157	28,927
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	3,706	5,201
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Other [Member]
Revenue [Abstract]
Revenue	5,207	5,876
Reportable Geographical Components [Member] | Color [Member] | North America [Member]
Revenue [Abstract]
Revenue	75,120	78,377
Reportable Geographical Components [Member] | Color [Member] | Europe [Member]
Revenue [Abstract]
Revenue	46,162	43,252
Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	17,419	18,149
Reportable Geographical Components [Member] | Color [Member] | Other [Member]
Revenue [Abstract]
Revenue	17,663	17,171
Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member]
Revenue [Abstract]
Revenue	0	62
Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member]
Revenue [Abstract]
Revenue	46	103
Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member]
Revenue [Abstract]
Revenue	38,685	39,195
Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member]
Revenue [Abstract]
Revenue	$ 1,553	$ 725

Retirement Plans (Details)

Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	$ 372	$ 368
Interest cost	401	409
Expected return on plan assets	(242)	(239)
Recognized actuarial gain	(91)	(139)
Total defined benefit expense	$ 440	$ 399

Derivative Instruments and He_2

Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Maximum [Member]
Derivative Instruments and Hedging Activity for the Period [Abstract]
Number of months for contracts to mature	18 months
Forward Exchange Contracts [Member] | Cash Flow Hedges [Member]
Derivative Instruments and Hedging Activity for the Period [Abstract]
Derivative, fair value	$ 44.5		$ 58.4
Foreign Currency Denominated Debt, Net Investment Hedging [Member]
Derivative Instruments and Hedging Activity for the Period [Abstract]
Carrying value of foreign denominated debt	306.7		$ 313.3
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income	$ (6.6)	$ 4.4

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Taxes [Abstract]
Effective income tax rates	27%	24.90%

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		$ 1,053,324	$ 999,598
Other comprehensive income (loss) before reclassifications		(3,321)	16,541
Amounts reclassified from OCI		(290)	(240)
Ending balance		1,063,936	1,028,221
Accumulated Other Comprehensive (Loss) Income [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		(172,117)	(200,688)
Ending balance		(175,728)	(184,387)
Cash Flow Hedges [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	[1]	997	(599)
Other comprehensive income (loss) before reclassifications	[1]	702	1,700
Amounts reclassified from OCI	[1]	(222)	(118)
Ending balance	[1]	1,477	983
Pension Items [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	[1]	(2,079)	(1,792)
Other comprehensive income (loss) before reclassifications	[1]	0	0
Amounts reclassified from OCI	[1]	(68)	(122)
Ending balance	[1]	(2,147)	(1,914)
Foreign Currency Items [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance		(171,035)	(198,297)
Other comprehensive income (loss) before reclassifications		(4,023)	14,841
Amounts reclassified from OCI		0	0
Ending balance		$ (175,058)	$ (183,456)
[1]Cash Flow Hedges and Pension Items are net of tax.

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event [Member]	Apr. 25, 2024 $ / shares
Subsequent Events [Abstract]
Dividend declared date	Apr. 25, 2024
Dividend payable (in dollars per share)	$ 0.41
Dividend payable date	Jun. 03, 2024