Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 23, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity File Number | 001-07626 | |
Entity Registrant Name | Sensient Technologies Corp | |
Entity Central Index Key | 0000310142 | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-0561070 | |
Entity Address, Address Line One | 777 EAST WISCONSIN AVENUE | |
Entity Address, City or Town | MILWAUKEE | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53202-5304 | |
City Area Code | 414 | |
Local Phone Number | 271-6755 | |
Title of 12(b) Security | Common stock, par value $0.10 per share | |
Trading Symbol | SXT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,374,796 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONSOLIDATED STATEMENTS OF EARNINGS [Abstract] | ||||
Revenue | $ 403,525 | $ 374,313 | $ 788,195 | $ 743,319 |
Cost of products sold | 272,803 | 252,136 | 530,924 | 496,479 |
Selling and administrative expenses | 81,065 | 70,586 | 158,208 | 144,411 |
Operating income | 49,657 | 51,591 | 99,063 | 102,429 |
Interest expense | 7,653 | 6,352 | 14,698 | 12,354 |
Earnings before income taxes | 42,004 | 45,239 | 84,365 | 90,075 |
Income taxes | 11,072 | 11,206 | 22,493 | 22,391 |
Net earnings | $ 30,932 | $ 34,033 | $ 61,872 | $ 67,684 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 42,154 | 42,043 | 42,129 | 42,006 |
Diluted (in shares) | 42,398 | 42,235 | 42,351 | 42,245 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.73 | $ 0.81 | $ 1.47 | $ 1.61 |
Diluted (in dollars per share) | 0.73 | 0.81 | 1.46 | 1.6 |
Dividends declared per common share (in dollars per share) | $ 0.41 | $ 0.41 | $ 0.82 | $ 0.82 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Comprehensive income | $ 8,483 | $ 41,199 | $ 35,812 | $ 91,151 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 30,339 | $ 28,934 |
Trade accounts receivable | 315,604 | 272,164 |
Inventories | 553,415 | 598,399 |
Prepaid expenses and other current assets | 44,897 | 37,119 |
Total current assets | 944,255 | 936,616 |
Other assets | 92,501 | 94,873 |
Deferred tax assets | 37,171 | 41,564 |
Intangible assets, net | 11,615 | 12,112 |
Goodwill | 418,185 | 424,065 |
Property, Plant, and Equipment: | ||
Land | 32,752 | 31,901 |
Buildings | 349,407 | 343,594 |
Machinery and equipment | 798,717 | 781,789 |
Construction in progress | 37,117 | 59,091 |
Property, plant, and equipment, gross | 1,217,993 | 1,216,375 |
Less accumulated depreciation | (726,853) | (711,098) |
Property, plant, and equipment, net | 491,140 | 505,277 |
Total assets | 1,994,867 | 2,014,507 |
Current Liabilities: | ||
Trade accounts payable | 107,218 | 131,114 |
Accrued salaries, wages, and withholdings from employees | 33,525 | 26,412 |
Other accrued expenses | 52,802 | 52,024 |
Income taxes | 6,495 | 13,296 |
Short-term borrowings | 26,995 | 13,460 |
Total current liabilities | 227,035 | 236,306 |
Deferred tax liabilities | 14,087 | 14,260 |
Other liabilities | 36,435 | 37,817 |
Accrued employee and retiree benefits | 24,872 | 27,715 |
Long-term debt | 634,663 | 645,085 |
Shareholders' Equity: | ||
Common stock | 5,396 | 5,396 |
Additional paid-in capital | 114,730 | 115,941 |
Earnings reinvested in the business | 1,754,059 | 1,726,872 |
Treasury stock, at cost | (618,233) | (622,768) |
Accumulated other comprehensive loss | (198,177) | (172,117) |
Total shareholders' equity | 1,057,775 | 1,053,324 |
Total liabilities and shareholders' equity | $ 1,994,867 | $ 2,014,507 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net earnings | $ 61,872 | $ 67,684 |
Adjustments to arrive at net cash provided by operating activities: | ||
Depreciation and amortization | 29,725 | 28,590 |
Share-based compensation expense | 4,911 | 4,766 |
Net (gain) loss on assets | (195) | 81 |
Portfolio Optimization Plan costs | 1,495 | 0 |
Deferred income taxes | 529 | (2,643) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (49,449) | 6,062 |
Inventories | 36,730 | (16,927) |
Prepaid expenses and other assets | (6,612) | 3,534 |
Accounts payable and other accrued expenses | (22,722) | (18,329) |
Accrued salaries, wages, and withholdings from employees | 7,824 | (19,713) |
Income taxes | (6,591) | (1,998) |
Other liabilities | 1,429 | 595 |
Net cash provided by operating activities | 58,946 | 51,702 |
Cash flows from investing activities: | ||
Acquisition of property, plant, and equipment | (22,850) | (45,137) |
Proceeds from sale of assets | 296 | 53 |
Other investing activities | (336) | 2,054 |
Net cash used in investing activities | (22,890) | (43,030) |
Cash flows from financing activities: | ||
Proceeds from additional borrowings | 132,189 | 187,037 |
Debt payments | (120,571) | (143,923) |
Dividends paid | (34,685) | (34,577) |
Other financing activities | (3,016) | (8,003) |
Net cash (used in) provided by financing activities | (26,083) | 534 |
Effect of exchange rate changes on cash and cash equivalents | (8,568) | 6,419 |
Net increase in cash and cash equivalents | 1,405 | 15,625 |
Cash and cash equivalents at beginning of period | 28,934 | 20,921 |
Cash and cash equivalents at end of period | $ 30,339 | $ 36,546 |
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 | 67,684 | $ 0 | 0 | 67,684 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 23,467 | 23,467 |
Cash dividends paid | 0 | 0 | (34,577) | 0 | 0 | (34,577) |
Share-based compensation | 0 | 4,766 | 0 | 0 | 0 | 4,766 |
Non-vested stock issued upon vesting | 0 | (12,619) | 0 | $ 12,619 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (240,825) | |||||
Benefit plans | 0 | 375 | 0 | $ 952 | 0 | 1,327 |
Benefit plans (in shares) | (18,172) | |||||
Other | 0 | (2,235) | 0 | $ (5,766) | 0 | (8,001) |
Other (in shares) | 110,057 | |||||
Ending balance at Jun. 30, 2023 | 5,396 | 114,330 | 1,735,807 | $ (624,048) | (177,221) | 1,054,264 |
Ending balance (in shares) at Jun. 30, 2023 | 11,909,833 | |||||
Beginning balance at Mar. 31, 2023 | 5,396 | 112,589 | 1,719,096 | $ (624,473) | (184,387) | 1,028,221 |
Beginning balance (in shares) at Mar. 31, 2023 | 11,917,944 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 34,033 | $ 0 | 0 | 34,033 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 7,166 | 7,166 |
Cash dividends paid | 0 | 0 | (17,322) | 0 | 0 | (17,322) |
Share-based compensation | 0 | 2,499 | 0 | 0 | 0 | 2,499 |
Non-vested stock issued upon vesting | 0 | (663) | 0 | $ 663 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (12,644) | |||||
Other | 0 | (95) | 0 | $ (238) | 0 | (333) |
Other (in shares) | 4,533 | |||||
Ending balance at Jun. 30, 2023 | 5,396 | 114,330 | 1,735,807 | $ (624,048) | (177,221) | 1,054,264 |
Ending balance (in shares) at Jun. 30, 2023 | 11,909,833 | |||||
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 | 61,872 | $ 0 | 0 | 61,872 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (26,060) | (26,060) |
Cash dividends paid | 0 | 0 | (34,685) | 0 | 0 | (34,685) |
Share-based compensation | 0 | 4,911 | 0 | 0 | 0 | 4,911 |
Non-vested stock issued upon vesting | 0 | (5,893) | 0 | $ 5,893 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (112,472) | |||||
Benefit plans | 0 | 299 | 0 | $ 1,122 | 0 | 1,421 |
Benefit plans (in shares) | (21,405) | |||||
Other | 0 | (528) | 0 | $ (2,480) | 0 | (3,008) |
Other (in shares) | 47,332 | |||||
Ending balance at Jun. 30, 2024 | 5,396 | 114,730 | 1,754,059 | $ (618,233) | (198,177) | 1,057,775 |
Ending balance (in shares) at Jun. 30, 2024 | 11,798,853 | |||||
Beginning balance at Mar. 31, 2024 | 5,396 | 112,389 | 1,740,500 | $ (618,621) | (175,728) | 1,063,936 |
Beginning balance (in shares) at Mar. 31, 2024 | 11,806,249 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 30,932 | $ 0 | 0 | 30,932 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (22,449) | (22,449) |
Cash dividends paid | 0 | 0 | (17,373) | 0 | 0 | (17,373) |
Share-based compensation | 0 | 2,916 | 0 | 0 | 0 | 2,916 |
Non-vested stock issued upon vesting | 0 | (528) | 0 | $ 528 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (10,076) | |||||
Other | 0 | (47) | 0 | $ (140) | 0 | (187) |
Other (in shares) | 2,680 | |||||
Ending balance at Jun. 30, 2024 | $ 5,396 | $ 114,730 | $ 1,754,059 | $ (618,233) | $ (198,177) | $ 1,057,775 |
Ending balance (in shares) at Jun. 30, 2024 | 11,798,853 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | ||||
Cash dividends per share (in dollars per share) | $ 0.41 | $ 0.41 | $ 0.82 | $ 0.82 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 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 June 30, 2024, and the results of operations, comprehensive income, and shareholders’ equity for the three and six months ended June 30, 2024 and 2023, and cash flows for the six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 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 evaluated the closure of its manufacturing facility in Felinfach, Wales, United Kingdom, the closure of its sales office in Granada, Spain, and the centralization and elimination of certain selling and administrative positions. In addition, in the Color segment, the Company evaluated the closure of a manufacturing facility in Delta, British Columbia, Canada, the closure of a sales office in Argentina, and centralizing and eliminating certain production positions and selling and administrative positions. The Company reports all costs associated with the Portfolio Optimization Plan in the Corporate & Other segment. The Company’s Felinfach site will continue to operate until all production activities have successfully transferred to other locations, and then will be closed. The Company has substantially completed all other actions contemplated under the Portfolio Optimization Plan in accordance with local laws. The Company recorded non-cash impairment charges in Selling and Administrative Expenses The Company recorded $2.8 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 June 30, 2024: (In thousands) Flavors & Extracts Color Corporate & Other Consolidated Non-cash impairment charges – Selling and administrative expenses $ - $ 154 $ - $ 154 Non-cash charges – Cost of products sold 283 (176 ) - 107 Employee separation – Selling and administrative expenses 240 35 - 275 Other production costs – Cost of products sold 100 - - 100 Other costs – Selling and administrative expenses (1) 743 400 (27 ) 1,116 Total $ 1,366 $ 413 $ (27 ) $ 1,752 (1) O ther costs include professional services, decommissioning costs, accelerated depreciation, accelerated lease costs, and other related cost The following table summarizes the Portfolio Optimization Plan expenses by segment for the six months ended June 30, 2024: (In thousands) Flavors & Extracts Color Corporate & Other Consolidated Non-cash impairment charges – Selling and administrative expenses $ - $ 1,129 $ - $ 1,129 Non-cash charges – Cost of products sold 408 (194 ) - 214 Employee separation – Selling and administrative expenses 851 526 28 1,405 Other production costs – Cost of products sold 100 - - 100 Other costs – Selling and administrative expenses (1) 1,059 684 (27 ) 1,716 Total $ 2,418 $ 2,145 $ 1 $ 4,564 (1) Other costs include professional services, decommissioning costs, accelerated depreciation, accelerated lease costs, and other related costs. |
Trade Accounts Receivable
Trade Accounts Receivable | 6 Months Ended |
Jun. 30, 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 as economic conditions change. Additionally, as the Company only has one portfolio segment, there are not different risks between portfolios. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible. The following table summarizes the changes in the allowance for doubtful accounts during the three and six month periods ended June 30, 2024 and 2023: (In thousands) Three Months Ended June 30, 2024 Allowance for Doubtful Accounts Balance at March 31, 2024 $ 3,882 Provision for expected credit losses 496 Accounts written off (5 ) Translation and other activity (98 ) Balance at June 30, 2024 $ 4,275 (In thousands) Three Months Ended June 30, 2023 Allowance for Doubtful Accounts Balance at March 31, 2023 $ 4,045 Provision for expected credit losses 371 Accounts written off (193 ) Translation and other activity 70 Balance at June 30, 2023 $ 4,293 (In thousands) Six Months Ended June 30, 2024 Allowance for Doubtful Accounts Balance at December 31, 2023 $ 4,373 Provision for expected credit losses 803 Accounts written off (752 ) Translation and other activity (149 ) Balance at June 30, 2024 $ 4,275 (In thousands) Six Months Ended June 30, 2023 Allowance for Doubtful Accounts Balance at December 31, 2022 $ 4,436 Provision for expected credit losses 491 Accounts written off (807 ) Translation and other activity 173 Balance at June 30, 2023 $ 4,293 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2024 | |
Inventories [Abstract] | |
Inventories | 4. Inventories At June 30, 2024, and December 31, 2023, inventories included finished and in-process products totaling $407.1 million and $437.1 million, respectively, and raw materials and supplies of $146.4 million and $161.3 million, respectively. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value [Abstract] | |
Fair Value | 5. Fair Value Accounting Standards Codification 820, Fair Value Measurement June 30, 2024 June 30, 2024 June 30, 2024 June 30, 2024 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 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; interest expense; and income taxes (segment operating income). Total revenue and segment operating income by business segment and geographic region include both sales to customers, as reported in the Company’s Consolidated Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation. The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. The Company’s three reportable segments are the Flavors & Extracts and Color segments, which are both managed on a product line basis, and the Asia Pacific segment, which is managed on a geographic basis. The Company’s Flavors & Extracts segment produces flavor, extracts, and essential oils products that impart a desired taste, texture, aroma, 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 June 30 2024 Revenue from external customers $ 202,020 $ 162,925 $ 38,580 $ - $ 403,525 Intersegment revenue 7,193 4,775 - - 11,968 Total revenue $ 209,213 $ 167,700 $ 38,580 $ - $ 415,493 Operating income (loss) $ 26,209 $ 31,502 $ 7,880 $ (15,934 ) $ 49,657 Interest expense - - - 7,653 7,653 Earnings (loss) before income taxes $ 26,209 $ 31,502 $ 7,880 $ (23,587 ) $ 42,004 Three months ended June 30 2023 Revenue from external customers $ 181,752 $ 156,532 $ 36,029 $ - $ 374,313 Intersegment revenue 6,532 3,931 - - 10,463 Total revenue $ 188,284 $ 160,463 $ 36,029 $ - $ 384,776 Operating income (loss) $ 24,456 $ 29,217 $ 7,575 $ (9,657 ) $ 51,591 Interest expense - - - 6,352 6,352 Earnings (loss) before income taxes $ 24,456 $ 29,217 $ 7,575 $ (16,009 ) $ 45,239 (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated Six June 30 2024 Revenue from external customers $ 390,042 $ 319,289 $ 78,864 $ - $ 788,195 Intersegment revenue 12,263 8,436 22 - 20,721 Total revenue $ 402,305 $ 327,725 $ 78,886 $ - $ 808,916 Operating income (loss) $ 49,887 $ 63,181 $ 16,656 $ (30,661 ) $ 99,063 Interest expense - - - 14,698 14,698 Earnings (loss) before income taxes $ 49,887 $ 63,181 $ 16,656 $ (45,359 ) $ 84,365 Six June 30 2023 Revenue from external customers $ 353,724 $ 313,481 $ 76,114 $ - $ 743,319 Intersegment revenue 13,412 8,143 - - 21,555 Total revenue $ 367,136 $ 321,624 $ 76,114 $ - $ 764,874 Operating income (loss) $ 46,636 $ 61,102 $ 16,816 $ (22,125 ) $ 102,429 Interest expense - - - 12,354 12,354 Earnings (loss) before income taxes $ 46,636 $ 61,102 $ 16,816 $ (34,479 ) $ 90,075 Product Lines (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended June 30 2024 Flavors, Extracts & Flavor Ingredients $ 134,749 $ - $ - $ 134,749 Natural Ingredients 74,464 - - 74,464 Food & Pharmaceutical Colors - 125,327 - 125,327 Personal Care - 42,373 - 42,373 Asia Pacific - - 38,580 38,580 Intersegment Revenue (7,193 ) (4,775 ) - (11,968 ) Total revenue from external customers $ 202,020 $ 162,925 $ 38,580 $ 403,525 Three months ended June 30 2023 Flavors, Extracts & Flavor Ingredients $ 133,688 $ - $ - $ 133,688 Natural Ingredients 54,596 - - 54,596 Food & Pharmaceutical Colors - 120,165 - 120,165 Personal Care - 40,298 - 40,298 Asia Pacific - - 36,029 36,029 Intersegment Revenue (6,532 ) (3,931 ) - (10,463 ) Total revenue from external customers $ 181,752 $ 156,532 $ 36,029 $ 374,313 (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Six June 30 2024 Flavors, Extracts & Flavor Ingredients $ 259,554 $ - $ - $ 259,554 Natural Ingredients 142,751 - - 142,751 Food & Pharmaceutical Colors - 242,385 - 242,385 Personal Care - 85,340 - 85,340 Asia Pacific - - 78,886 78,886 Intersegment Revenue (12,263 ) (8,436 ) (22 ) (20,721 ) Total revenue from external customers $ 390,042 $ 319,289 $ 78,864 $ 788,195 Six months ended June 30, 2023: Flavors, Extracts & Flavor Ingredients $ 258,513 $ - $ - $ 258,513 Natural Ingredients 108,623 - - 108,623 Food & Pharmaceutical Colors - 238,912 - 238,912 Personal Care - 82,712 - 82,712 Asia Pacific - - 76,114 76,114 Intersegment Revenue (13,412 ) (8,143 ) - (21,555 ) Total revenue from external customers $ 353,724 $ 313,481 $ 76,114 $ 743,319 Geographic Markets (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended June 30 2024 North America $ 156,650 $ 82,535 $ 82 $ 239,267 Europe 32,064 45,825 60 77,949 Asia Pacific 5,103 15,648 37,017 57,768 Other 8,203 18,917 1,421 28,541 Total revenue from external customers $ 202,020 $ 162,925 $ 38,580 $ 403,525 Three months ended June 30 2023 North America $ 137,135 $ 77,554 $ 62 $ 214,751 Europe 31,867 44,397 24 76,288 Asia Pacific 6,290 16,308 35,394 57,992 Other 6,460 18,273 549 25,282 Total revenue from external customers $ 181,752 $ 156,532 $ 36,029 $ 374,313 (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Six June 30 2024 North America $ 303,602 $ 157,655 $ 82 $ 461,339 Europe 64,221 91,987 106 156,314 Asia Pacific 8,809 33,067 75,702 117,578 Other 13,410 36,580 2,974 52,964 Total revenue from external customers $ 390,042 $ 319,289 $ 78,864 $ 788,195 Six June 30 2023 North America $ 269,103 $ 155,931 $ 124 $ 425,158 Europe 60,794 87,649 127 148,570 Asia Pacific 11,491 34,457 74,589 120,537 Other 12,336 35,444 1,274 49,054 Total revenue from external customers $ 353,724 $ 313,481 $ 76,114 $ 743,319 |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30 (In thousands) 2024 2023 2024 2023 Service cost $ 509 $ 371 $ 881 $ 739 Interest cost 529 413 930 822 Expected return on plan assets (260 ) (245 ) (502 ) (484 ) Recognized actuarial gain (91 ) (138 ) (182 ) (277 ) Total defined benefit expense $ 687 $ 401 $ 1,127 $ 800 The Company’s non-service cost portion of defined benefit expense is recorded in Interest Expense Selling and Administrative Expenses |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 6 Months Ended |
Jun. 30, 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 June 30, 2024 and December 31, 2023, respectively. For the three and six months ended June 30 Net investment hedges – The Company has designated certain foreign currency denominated long-term borrowings as partial hedges of the Company’s foreign currency net asset positions. As of June 30 June 30 $3.8 million, respectively, which has been recorded as foreign currency translation in OCI. For the six months ended June 30, 2024 and 2023, $8.2 million, respectively, which has been recorded as foreign currency translation in OCI. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income Taxes The effective income tax rates for the three months ended June 30, 2024 and 2023 were 26.4% and 24.8%, respectively. For the six months ended June 30, 2024 and 2023, the effective income tax rates were 26.7% and 24.9%, respectively. The effective tax rates for the three and six months ended June 30, 2024 and 2023 were impacted by the mix of foreign earnings and changes in estimates associated with the finalization of prior year foreign tax items. The effective tax rates for both the three and six months ended June 30, 2024 were also impacted by the limited tax deductibility of costs related to the Portfolio Optimization Plan. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 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 and six month periods ended June 30, 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 loss before reclassifications (537 ) - (25,163 ) (25,700 ) Amounts reclassified from OCI (224 ) (136 ) - (360 ) Balances at June 30 2024 $ 236 $ (2,215 ) $ (196,198 ) $ (198,177 ) (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at March 31, 2024 $ 1,477 $ (2,147 ) $ (175,058 ) $ (175,728 ) Other comprehensive loss before reclassifications (1,239 ) - (21,140 ) (22,379 ) Amounts reclassified from OCI (2 ) (68 ) - (70 ) Balances at June 30 2024 $ 236 $ (2,215 ) $ (196,198 ) $ (198,177 ) (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 3,213 - 21,115 24,328 Amounts reclassified from OCI (617 ) (244 ) - (861 ) Balances at June 30 2023 $ 1,997 $ (2,036 ) $ (177,182 ) $ (177,221 ) (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at March 31, 2023 $ 983 $ (1,914 ) $ (183,456 ) $ (184,387 ) Other comprehensive income before reclassifications 1,513 - 6,274 7,787 Amounts reclassified from OCI (499 ) (122 ) - (621 ) Balances at June 30 2023 $ 1,997 $ (2,036 ) $ (177,182 ) $ (177,221 ) (1) Cash Flow Hedges and Pension Items are net of tax. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Event [Abstract] | |
Subsequent Event | 12. Subsequent Event On July 25, 2024, the Company announced its quarterly dividend of $0.41 per share would be payable on September 3, 2024. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 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 June 30, 2024: (In thousands) Flavors & Extracts Color Corporate & Other Consolidated Non-cash impairment charges – Selling and administrative expenses $ - $ 154 $ - $ 154 Non-cash charges – Cost of products sold 283 (176 ) - 107 Employee separation – Selling and administrative expenses 240 35 - 275 Other production costs – Cost of products sold 100 - - 100 Other costs – Selling and administrative expenses (1) 743 400 (27 ) 1,116 Total $ 1,366 $ 413 $ (27 ) $ 1,752 (1) O ther costs include professional services, decommissioning costs, accelerated depreciation, accelerated lease costs, and other related cost The following table summarizes the Portfolio Optimization Plan expenses by segment for the six months ended June 30, 2024: (In thousands) Flavors & Extracts Color Corporate & Other Consolidated Non-cash impairment charges – Selling and administrative expenses $ - $ 1,129 $ - $ 1,129 Non-cash charges – Cost of products sold 408 (194 ) - 214 Employee separation – Selling and administrative expenses 851 526 28 1,405 Other production costs – Cost of products sold 100 - - 100 Other costs – Selling and administrative expenses (1) 1,059 684 (27 ) 1,716 Total $ 2,418 $ 2,145 $ 1 $ 4,564 (1) Other costs include professional services, decommissioning costs, accelerated depreciation, accelerated lease costs, and other related costs. |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 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 and six month periods ended June 30, 2024 and 2023: (In thousands) Three Months Ended June 30, 2024 Allowance for Doubtful Accounts Balance at March 31, 2024 $ 3,882 Provision for expected credit losses 496 Accounts written off (5 ) Translation and other activity (98 ) Balance at June 30, 2024 $ 4,275 (In thousands) Three Months Ended June 30, 2023 Allowance for Doubtful Accounts Balance at March 31, 2023 $ 4,045 Provision for expected credit losses 371 Accounts written off (193 ) Translation and other activity 70 Balance at June 30, 2023 $ 4,293 (In thousands) Six Months Ended June 30, 2024 Allowance for Doubtful Accounts Balance at December 31, 2023 $ 4,373 Provision for expected credit losses 803 Accounts written off (752 ) Translation and other activity (149 ) Balance at June 30, 2024 $ 4,275 (In thousands) Six Months Ended June 30, 2023 Allowance for Doubtful Accounts Balance at December 31, 2022 $ 4,436 Provision for expected credit losses 491 Accounts written off (807 ) Translation and other activity 173 Balance at June 30, 2023 $ 4,293 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 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 June 30 2024 Revenue from external customers $ 202,020 $ 162,925 $ 38,580 $ - $ 403,525 Intersegment revenue 7,193 4,775 - - 11,968 Total revenue $ 209,213 $ 167,700 $ 38,580 $ - $ 415,493 Operating income (loss) $ 26,209 $ 31,502 $ 7,880 $ (15,934 ) $ 49,657 Interest expense - - - 7,653 7,653 Earnings (loss) before income taxes $ 26,209 $ 31,502 $ 7,880 $ (23,587 ) $ 42,004 Three months ended June 30 2023 Revenue from external customers $ 181,752 $ 156,532 $ 36,029 $ - $ 374,313 Intersegment revenue 6,532 3,931 - - 10,463 Total revenue $ 188,284 $ 160,463 $ 36,029 $ - $ 384,776 Operating income (loss) $ 24,456 $ 29,217 $ 7,575 $ (9,657 ) $ 51,591 Interest expense - - - 6,352 6,352 Earnings (loss) before income taxes $ 24,456 $ 29,217 $ 7,575 $ (16,009 ) $ 45,239 (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated Six June 30 2024 Revenue from external customers $ 390,042 $ 319,289 $ 78,864 $ - $ 788,195 Intersegment revenue 12,263 8,436 22 - 20,721 Total revenue $ 402,305 $ 327,725 $ 78,886 $ - $ 808,916 Operating income (loss) $ 49,887 $ 63,181 $ 16,656 $ (30,661 ) $ 99,063 Interest expense - - - 14,698 14,698 Earnings (loss) before income taxes $ 49,887 $ 63,181 $ 16,656 $ (45,359 ) $ 84,365 Six June 30 2023 Revenue from external customers $ 353,724 $ 313,481 $ 76,114 $ - $ 743,319 Intersegment revenue 13,412 8,143 - - 21,555 Total revenue $ 367,136 $ 321,624 $ 76,114 $ - $ 764,874 Operating income (loss) $ 46,636 $ 61,102 $ 16,816 $ (22,125 ) $ 102,429 Interest expense - - - 12,354 12,354 Earnings (loss) before income taxes $ 46,636 $ 61,102 $ 16,816 $ (34,479 ) $ 90,075 |
Product Lines | Product Lines (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended June 30 2024 Flavors, Extracts & Flavor Ingredients $ 134,749 $ - $ - $ 134,749 Natural Ingredients 74,464 - - 74,464 Food & Pharmaceutical Colors - 125,327 - 125,327 Personal Care - 42,373 - 42,373 Asia Pacific - - 38,580 38,580 Intersegment Revenue (7,193 ) (4,775 ) - (11,968 ) Total revenue from external customers $ 202,020 $ 162,925 $ 38,580 $ 403,525 Three months ended June 30 2023 Flavors, Extracts & Flavor Ingredients $ 133,688 $ - $ - $ 133,688 Natural Ingredients 54,596 - - 54,596 Food & Pharmaceutical Colors - 120,165 - 120,165 Personal Care - 40,298 - 40,298 Asia Pacific - - 36,029 36,029 Intersegment Revenue (6,532 ) (3,931 ) - (10,463 ) Total revenue from external customers $ 181,752 $ 156,532 $ 36,029 $ 374,313 (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Six June 30 2024 Flavors, Extracts & Flavor Ingredients $ 259,554 $ - $ - $ 259,554 Natural Ingredients 142,751 - - 142,751 Food & Pharmaceutical Colors - 242,385 - 242,385 Personal Care - 85,340 - 85,340 Asia Pacific - - 78,886 78,886 Intersegment Revenue (12,263 ) (8,436 ) (22 ) (20,721 ) Total revenue from external customers $ 390,042 $ 319,289 $ 78,864 $ 788,195 Six months ended June 30, 2023: Flavors, Extracts & Flavor Ingredients $ 258,513 $ - $ - $ 258,513 Natural Ingredients 108,623 - - 108,623 Food & Pharmaceutical Colors - 238,912 - 238,912 Personal Care - 82,712 - 82,712 Asia Pacific - - 76,114 76,114 Intersegment Revenue (13,412 ) (8,143 ) - (21,555 ) Total revenue from external customers $ 353,724 $ 313,481 $ 76,114 $ 743,319 |
Geographical Markets | Geographic Markets (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended June 30 2024 North America $ 156,650 $ 82,535 $ 82 $ 239,267 Europe 32,064 45,825 60 77,949 Asia Pacific 5,103 15,648 37,017 57,768 Other 8,203 18,917 1,421 28,541 Total revenue from external customers $ 202,020 $ 162,925 $ 38,580 $ 403,525 Three months ended June 30 2023 North America $ 137,135 $ 77,554 $ 62 $ 214,751 Europe 31,867 44,397 24 76,288 Asia Pacific 6,290 16,308 35,394 57,992 Other 6,460 18,273 549 25,282 Total revenue from external customers $ 181,752 $ 156,532 $ 36,029 $ 374,313 (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Six June 30 2024 North America $ 303,602 $ 157,655 $ 82 $ 461,339 Europe 64,221 91,987 106 156,314 Asia Pacific 8,809 33,067 75,702 117,578 Other 13,410 36,580 2,974 52,964 Total revenue from external customers $ 390,042 $ 319,289 $ 78,864 $ 788,195 Six June 30 2023 North America $ 269,103 $ 155,931 $ 124 $ 425,158 Europe 60,794 87,649 127 148,570 Asia Pacific 11,491 34,457 74,589 120,537 Other 12,336 35,444 1,274 49,054 Total revenue from external customers $ 353,724 $ 313,481 $ 76,114 $ 743,319 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30 (In thousands) 2024 2023 2024 2023 Service cost $ 509 $ 371 $ 881 $ 739 Interest cost 529 413 930 822 Expected return on plan assets (260 ) (245 ) (502 ) (484 ) Recognized actuarial gain (91 ) (138 ) (182 ) (277 ) Total defined benefit expense $ 687 $ 401 $ 1,127 $ 800 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in OCI | The following table summarizes the changes in OCI during the three and six month periods ended June 30, 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 loss before reclassifications (537 ) - (25,163 ) (25,700 ) Amounts reclassified from OCI (224 ) (136 ) - (360 ) Balances at June 30 2024 $ 236 $ (2,215 ) $ (196,198 ) $ (198,177 ) (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at March 31, 2024 $ 1,477 $ (2,147 ) $ (175,058 ) $ (175,728 ) Other comprehensive loss before reclassifications (1,239 ) - (21,140 ) (22,379 ) Amounts reclassified from OCI (2 ) (68 ) - (70 ) Balances at June 30 2024 $ 236 $ (2,215 ) $ (196,198 ) $ (198,177 ) (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 3,213 - 21,115 24,328 Amounts reclassified from OCI (617 ) (244 ) - (861 ) Balances at June 30 2023 $ 1,997 $ (2,036 ) $ (177,182 ) $ (177,221 ) (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at March 31, 2023 $ 983 $ (1,914 ) $ (183,456 ) $ (184,387 ) Other comprehensive income before reclassifications 1,513 - 6,274 7,787 Amounts reclassified from OCI (499 ) (122 ) - (621 ) Balances at June 30 2023 $ 1,997 $ (2,036 ) $ (177,182 ) $ (177,221 ) (1) Cash Flow Hedges and Pension Items are net of tax. |
Portfolio Optimization Plan (De
Portfolio Optimization Plan (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) Positions | Dec. 31, 2023 USD ($) | ||
Portfolio Optimization Plan [Abstract] | ||||
Accrued liabilities related to portfolio optimization plan | $ 2,800 | $ 2,800 | $ 3,700 | |
Expected plan cost | 40,000 | 40,000 | ||
Plan cost incurred | $ 32,400 | |||
Number of reduced positions | Positions | 100 | |||
Portfolio Optimization Plan Expenses [Abstract] | ||||
Portfolio optimization plan expenses | 1,752 | $ 4,564 | ||
Minimum [Member] | ||||
Portfolio Optimization Plan [Abstract] | ||||
Reduction of annual operating costs | 8,000 | 8,000 | ||
Maximum [Member] | ||||
Portfolio Optimization Plan [Abstract] | ||||
Reduction of annual operating costs | 10,000 | 10,000 | ||
Selling and Administrative Expenses [Member] | ||||
Portfolio Optimization Plan Expenses [Abstract] | ||||
Non-cash impairment charges | 154 | 1,129 | ||
Employee separation | 275 | 1,405 | ||
Other costs | [1] | 1,116 | 1,716 | |
Cost of Products Sold [Member] | ||||
Portfolio Optimization Plan Expenses [Abstract] | ||||
Non-cash impairment charges | 107 | 214 | ||
Other production costs | 100 | 100 | ||
Flavors & Extracts [Member] | ||||
Portfolio Optimization Plan Expenses [Abstract] | ||||
Portfolio optimization plan expenses | 1,366 | 2,418 | ||
Flavors & Extracts [Member] | Selling and Administrative Expenses [Member] | ||||
Portfolio Optimization Plan Expenses [Abstract] | ||||
Non-cash impairment charges | 0 | 0 | ||
Employee separation | 240 | 851 | ||
Other costs | [1] | 743 | 1,059 | |
Flavors & Extracts [Member] | Cost of Products Sold [Member] | ||||
Portfolio Optimization Plan Expenses [Abstract] | ||||
Non-cash impairment charges | 283 | 408 | ||
Other production costs | 100 | 100 | ||
Color [Member] | ||||
Portfolio Optimization Plan Expenses [Abstract] | ||||
Portfolio optimization plan expenses | 413 | 2,145 | ||
Color [Member] | Selling and Administrative Expenses [Member] | ||||
Portfolio Optimization Plan Expenses [Abstract] | ||||
Non-cash impairment charges | 154 | 1,129 | ||
Employee separation | 35 | 526 | ||
Other costs | [1] | 400 | 684 | |
Color [Member] | Cost of Products Sold [Member] | ||||
Portfolio Optimization Plan Expenses [Abstract] | ||||
Non-cash impairment charges | (176) | (194) | ||
Other production costs | 0 | 0 | ||
Corporate & Other [Member] | ||||
Portfolio Optimization Plan Expenses [Abstract] | ||||
Portfolio optimization plan expenses | (27) | 1 | ||
Corporate & Other [Member] | Selling and Administrative Expenses [Member] | ||||
Portfolio Optimization Plan Expenses [Abstract] | ||||
Non-cash impairment charges | 0 | 0 | ||
Employee separation | 0 | 28 | ||
Other costs | [1] | (27) | (27) | |
Corporate & Other [Member] | Cost of Products Sold [Member] | ||||
Portfolio Optimization Plan Expenses [Abstract] | ||||
Non-cash impairment charges | 0 | 0 | ||
Other production costs | $ 0 | $ 0 | ||
[1]O ther costs include professional services, decommissioning costs, accelerated depreciation, accelerated lease costs, and other related cost |
Trade Accounts Receivable (Deta
Trade Accounts Receivable (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Segment | Jun. 30, 2023 USD ($) | |
Trade Accounts Receivable [Abstract] | ||||
Number of portfolio segments | Segment | 1 | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 3,882 | $ 4,045 | $ 4,373 | $ 4,436 |
Provision for expected credit losses | 496 | 371 | 803 | 491 |
Accounts written off | (5) | (193) | (752) | (807) |
Translation and other activity | (98) | 70 | (149) | 173 |
Ending balance | $ 4,275 | $ 4,293 | $ 4,275 | $ 4,293 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Inventories [Abstract] | ||
Finished and in-process products | $ 407.1 | $ 437.1 |
Raw materials and supplies | $ 146.4 | $ 161.3 |
Fair Value (Details)
Fair Value (Details) - Level 2 [Member] - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Fair Value Disclosure [Abstract] | ||
Foreign currency contracts, liability | $ 0.1 | |
Forward exchange contract, asset | $ 1 | |
Carrying Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | 634.7 | 645.2 |
Fair Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | $ 638.3 | $ 653.7 |
Segment Information, Operating
Segment Information, Operating Results by Segment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Segment | Jun. 30, 2023 USD ($) | |
Segment Information [Abstract] | ||||
Number of reportable segments | Segment | 3 | |||
Revenue [Abstract] | ||||
Revenue | $ 403,525 | $ 374,313 | $ 788,195 | $ 743,319 |
Operating income (loss) | 49,657 | 51,591 | 99,063 | 102,429 |
Interest expense | 7,653 | 6,352 | 14,698 | 12,354 |
Earnings before income taxes | 42,004 | 45,239 | 84,365 | 90,075 |
Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 202,020 | 181,752 | 390,042 | 353,724 |
Operating income (loss) | 26,209 | 24,456 | 49,887 | 46,636 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings before income taxes | 26,209 | 24,456 | 49,887 | 46,636 |
Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 162,925 | 156,532 | 319,289 | 313,481 |
Operating income (loss) | 31,502 | 29,217 | 63,181 | 61,102 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings before income taxes | 31,502 | 29,217 | 63,181 | 61,102 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 38,580 | 36,029 | 78,864 | 76,114 |
Operating income (loss) | 7,880 | 7,575 | 16,656 | 16,816 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings before income taxes | 7,880 | 7,575 | 16,656 | 16,816 |
Reportable Segments [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 415,493 | 384,776 | 808,916 | 764,874 |
Reportable Segments [Member] | Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 209,213 | 188,284 | 402,305 | 367,136 |
Reportable Segments [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 167,700 | 160,463 | 327,725 | 321,624 |
Reportable Segments [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 38,580 | 36,029 | 78,886 | 76,114 |
Intersegment Revenue [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 11,968 | 10,463 | 20,721 | 21,555 |
Intersegment Revenue [Member] | Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 7,193 | 6,532 | 12,263 | 13,412 |
Intersegment Revenue [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 4,775 | 3,931 | 8,436 | 8,143 |
Intersegment Revenue [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 22 | 0 |
Corporate & Other [Member] | Corporate and Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating income (loss) | (15,934) | (9,657) | (30,661) | (22,125) |
Interest expense | 7,653 | 6,352 | 14,698 | 12,354 |
Earnings before income taxes | $ (23,587) | $ (16,009) | $ (45,359) | $ (34,479) |
Segment Information, Revenue fr
Segment Information, Revenue from External Customers by Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue [Abstract] | ||||
Revenue | $ 403,525 | $ 374,313 | $ 788,195 | $ 743,319 |
Flavors, Extracts & Flavor Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 134,749 | 133,688 | 259,554 | 258,513 |
Natural Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 74,464 | 54,596 | 142,751 | 108,623 |
Food & Pharmaceutical Colors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 125,327 | 120,165 | 242,385 | 238,912 |
Personal Care [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 42,373 | 40,298 | 85,340 | 82,712 |
Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 202,020 | 181,752 | 390,042 | 353,724 |
Flavors & Extracts [Member] | Flavors, Extracts & Flavor Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 134,749 | 133,688 | 259,554 | 258,513 |
Flavors & Extracts [Member] | Natural Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 74,464 | 54,596 | 142,751 | 108,623 |
Flavors & Extracts [Member] | Food & Pharmaceutical Colors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Flavors & Extracts [Member] | Personal Care [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 162,925 | 156,532 | 319,289 | 313,481 |
Color [Member] | Flavors, Extracts & Flavor Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Color [Member] | Natural Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Color [Member] | Food & Pharmaceutical Colors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 125,327 | 120,165 | 242,385 | 238,912 |
Color [Member] | Personal Care [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 42,373 | 40,298 | 85,340 | 82,712 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 38,580 | 36,029 | 78,864 | 76,114 |
Asia Pacific [Member] | Flavors, Extracts & Flavor Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Asia Pacific [Member] | Natural Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Asia Pacific [Member] | Food & Pharmaceutical Colors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Asia Pacific [Member] | Personal Care [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Reportable Segments [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 415,493 | 384,776 | 808,916 | 764,874 |
Reportable Segments [Member] | Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 209,213 | 188,284 | 402,305 | 367,136 |
Reportable Segments [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 167,700 | 160,463 | 327,725 | 321,624 |
Reportable Segments [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 38,580 | 36,029 | 78,886 | 76,114 |
Intersegment Revenue [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 11,968 | 10,463 | 20,721 | 21,555 |
Intersegment Revenue [Member] | Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 7,193 | 6,532 | 12,263 | 13,412 |
Intersegment Revenue [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 4,775 | 3,931 | 8,436 | 8,143 |
Intersegment Revenue [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | $ 0 | $ 0 | $ 22 | $ 0 |
Segment Information, Revenue _2
Segment Information, Revenue from External Customers by Geographic Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue [Abstract] | ||||
Revenue | $ 403,525 | $ 374,313 | $ 788,195 | $ 743,319 |
North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 239,267 | 214,751 | 461,339 | 425,158 |
Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 77,949 | 76,288 | 156,314 | 148,570 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 57,768 | 57,992 | 117,578 | 120,537 |
Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 28,541 | 25,282 | 52,964 | 49,054 |
Flavors & Extracts [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 202,020 | 181,752 | 390,042 | 353,724 |
Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 162,925 | 156,532 | 319,289 | 313,481 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 38,580 | 36,029 | 78,864 | 76,114 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 156,650 | 137,135 | 303,602 | 269,103 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 32,064 | 31,867 | 64,221 | 60,794 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 5,103 | 6,290 | 8,809 | 11,491 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 8,203 | 6,460 | 13,410 | 12,336 |
Reportable Geographical Components [Member] | Color [Member] | North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 82,535 | 77,554 | 157,655 | 155,931 |
Reportable Geographical Components [Member] | Color [Member] | Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 45,825 | 44,397 | 91,987 | 87,649 |
Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 15,648 | 16,308 | 33,067 | 34,457 |
Reportable Geographical Components [Member] | Color [Member] | Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 18,917 | 18,273 | 36,580 | 35,444 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 82 | 62 | 82 | 124 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 60 | 24 | 106 | 127 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 37,017 | 35,394 | 75,702 | 74,589 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | $ 1,421 | $ 549 | $ 2,974 | $ 1,274 |
Retirement Plans (Details)
Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 509 | $ 371 | $ 881 | $ 739 |
Interest cost | 529 | 413 | 930 | 822 |
Expected return on plan assets | (260) | (245) | (502) | (484) |
Recognized actuarial gain | (91) | (138) | (182) | (277) |
Total defined benefit expense | $ 687 | $ 401 | $ 1,127 | $ 800 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 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 | $ 30.7 | $ 30.7 | $ 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 | 304.8 | 304.8 | $ 313.3 | ||
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ (1.9) | $ 3.8 | $ (8.5) | $ 8.2 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Taxes [Abstract] | ||||
Effective income tax rates | 26.40% | 24.80% | 26.70% | 24.90% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 1,063,936 | $ 1,028,221 | $ 1,053,324 | $ 999,598 | |
Other comprehensive income (loss) before reclassifications | (22,379) | 7,787 | (25,700) | 24,328 | |
Amounts reclassified from OCI | (70) | (621) | (360) | (861) | |
Ending balance | 1,057,775 | 1,054,264 | 1,057,775 | 1,054,264 | |
Accumulated Other Comprehensive (Loss) Income [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (175,728) | (184,387) | (172,117) | (200,688) | |
Ending balance | (198,177) | (177,221) | (198,177) | (177,221) | |
Cash Flow Hedges [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | 1,477 | 983 | 997 | (599) |
Other comprehensive income (loss) before reclassifications | [1] | (1,239) | 1,513 | (537) | 3,213 |
Amounts reclassified from OCI | [1] | (2) | (499) | (224) | (617) |
Ending balance | [1] | 236 | 1,997 | 236 | 1,997 |
Pension Items [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | (2,147) | (1,914) | (2,079) | (1,792) |
Other comprehensive income (loss) before reclassifications | [1] | 0 | 0 | 0 | 0 |
Amounts reclassified from OCI | [1] | (68) | (122) | (136) | (244) |
Ending balance | [1] | (2,215) | (2,036) | (2,215) | (2,036) |
Foreign Currency Items [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (175,058) | (183,456) | (171,035) | (198,297) | |
Other comprehensive income (loss) before reclassifications | (21,140) | 6,274 | (25,163) | 21,115 | |
Amounts reclassified from OCI | 0 | 0 | 0 | 0 | |
Ending balance | $ (196,198) | $ (177,182) | $ (196,198) | $ (177,182) | |
[1] Cash Flow Hedges and Pension Items are net of tax. |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] - Dividends Declared 2024-Q3 [Member] | Jul. 25, 2024 $ / shares |
Subsequent Events [Abstract] | |
Dividend declared date | Jul. 25, 2024 |
Dividend payable (in dollars per share) | $ 0.41 |
Dividend payable date | Sep. 03, 2024 |