Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 22, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'INTERNATIONAL FLAVORS & FRAGRANCES INC | ' |
Entity Central Index Key | '0000051253 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 81,513,192 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $343,149 | $324,422 |
Trade receivables (net of allowances of $8,945 and $9,293, respectively) | 553,884 | 499,443 |
Inventories: | ' | ' |
Raw materials | 239,601 | 256,728 |
Work in process | 9,796 | 7,804 |
Finished goods | 271,310 | 276,126 |
Total Inventories | 520,707 | 540,658 |
Deferred income taxes | 60,736 | 65,763 |
Prepaid expenses and other current assets | 155,391 | 142,401 |
Total Current Assets | 1,633,867 | 1,572,687 |
Property, plant and equipment, at cost | 1,579,546 | 1,532,317 |
Accumulated depreciation | -922,884 | -877,676 |
Total Property Plant and Equipment | 656,662 | 654,641 |
Goodwill | 665,582 | 665,582 |
Other intangible assets, net | 32,134 | 36,688 |
Deferred income taxes | 160,932 | 157,074 |
Other assets | 175,334 | 159,520 |
Total Assets | 3,324,511 | 3,246,192 |
Current Liabilities: | ' | ' |
Bank borrowings and overdrafts and current portion of long-term debt | 144 | 150,071 |
Accounts payable | 176,238 | 199,272 |
Accrued payroll and bonus | 84,292 | 80,027 |
Dividends payable | 31,877 | 0 |
Restructuring and other charges | 2,460 | 3,149 |
Other current liabilities | 214,565 | 197,359 |
Total Current Liabilities | 509,576 | 629,878 |
Long-term debt | 933,464 | 881,104 |
Deferred gains | 42,135 | 44,674 |
Retirement liabilities | 297,553 | 327,373 |
Other liabilities | 102,253 | 110,608 |
Total Other Liabilities | 1,375,405 | 1,363,759 |
Commitments and Contingencies (Note 12) | ' | ' |
Shareholders' Equity: | ' | ' |
Common stock 12 1/2¢ par value; authorized 500,000,000 shares; issued 115,761,840 shares as of September 30, 2013 and December 31, 2012; and outstanding 81,594,725 and 81,626,874 shares as of September 30, 2013 and December 31, 2012 | 14,470 | 14,470 |
Capital in excess of par value | 126,195 | 127,504 |
Retained earnings | 3,045,829 | 2,841,166 |
Accumulated other comprehensive loss | -403,558 | -403,625 |
Treasury stock, at cost - 34,167,115 shares as of September 30, 2013 and 34,134,966 shares as of December 31, 2012 | -1,346,979 | -1,330,707 |
Total Shareholders' Equity | 1,435,957 | 1,248,808 |
Noncontrolling interest | 3,573 | 3,747 |
Total Shareholders' Equity including noncontrolling interest | 1,439,530 | 1,252,555 |
Total Liabilities and Shareholders' Equity | $3,324,511 | $3,246,192 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Trade receivables allowances | $8,945 | $9,293 |
Common stock, par value, in dollars per share | $0.13 | $0.13 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 115,761,840 | 115,761,840 |
Common stock, shares outstanding | 81,594,725 | 81,626,874 |
Treasury stock, shares at cost | 34,167,115 | 34,134,966 |
Consolidated_Statement_Of_Comp
Consolidated Statement Of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $742,256 | $708,955 | $2,227,727 | $2,140,888 |
Cost of goods sold | 416,852 | 407,431 | 1,256,977 | 1,252,422 |
Research and development expenses | 65,654 | 57,658 | 189,428 | 171,467 |
Selling and administrative expenses | 118,221 | 109,691 | 357,687 | 327,942 |
Restructuring and other charges, net | 0 | 0 | 2,105 | 1,668 |
Interest expense | 11,625 | 9,907 | 35,637 | 31,330 |
Other (income) expense, net | -4,080 | 2,424 | -16,359 | 1,333 |
Income before taxes | 133,984 | 121,844 | 402,252 | 354,726 |
Taxes on income | 34,938 | 105,481 | 110,187 | 168,710 |
Net income | 99,046 | 16,363 | 292,065 | 186,016 |
Other comprehensive income, after tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | 5,707 | 26,228 | -11,118 | 2,169 |
(Losses)/gains on derivatives qualifying as hedges | -1,859 | -3,940 | -4,161 | -1,506 |
Pension and postretirement net liability | 5,126 | 4,178 | 15,346 | 12,949 |
Other comprehensive income | 8,974 | 26,466 | 67 | 13,612 |
Total comprehensive income | $108,020 | $42,829 | $292,132 | $199,628 |
Net income per share - basic, in dollars per share | $1.21 | $0.20 | $3.57 | $2.28 |
Net income per share - diluted, in dollars per share | $1.20 | $0.20 | $3.54 | $2.26 |
Average number of shares outstanding - basic | 81,437 | 81,246 | 81,349 | 81,241 |
Average number of shares outstanding - diluted | 82,043 | 81,898 | 81,959 | 81,984 |
Dividends declared per share, in dollars per share | $0.39 | $0.34 | $1.07 | $0.96 |
Consolidated_Statement_Of_Cash
Consolidated Statement Of Cash Flows (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' | |
Net income | $292,065 | $186,016 | |
Adjustments to reconcile to net cash provided by operating activities: | ' | ' | |
Depreciation and amortization | 61,084 | 56,332 | |
Deferred income taxes | -5,167 | -13,830 | |
Gain on disposal of assets | -18,859 | -2,243 | |
Stock-based compensation | 18,919 | 15,363 | |
Pension settlement/curtailment | 0 | 874 | |
Spanish tax charge | 0 | 72,362 | |
Payments pursuant to Spanish tax settlement | 0 | -105,503 | |
Changes in assets and liabilities: | ' | ' | |
Trade receivables | -72,051 | -66,364 | |
Inventories | 10,679 | -3,751 | |
Accounts payable | -11,581 | -33,652 | |
Accruals for incentive compensation | -1,298 | 14,927 | |
Other current payables and accrued expenses | 27,416 | 29,095 | |
Other assets | -23,805 | -25,414 | |
Other liabilities | -20,086 | 13,366 | |
Net cash provided by operating activities | 257,316 | 137,578 | |
Cash flows from investing activities: | ' | ' | |
Additions to property, plant and equipment | -86,448 | -84,176 | |
Purchase of life insurance contracts | ' | -1,127 | |
Proceeds from termination of life insurance contracts | 793 | 5,327 | |
Maturity of net investment hedges | 626 | 1,960 | |
Proceeds from disposal of assets | 16,782 | 223 | |
Net cash used in investing activities | -68,247 | -77,793 | |
Cash flows from financing activities: | ' | ' | |
Cash dividends paid to shareholders | -55,525 | -75,458 | |
Net change in revolving credit facility borrowings and overdrafts | -282,915 | 8,376 | |
Deferred financing costs | -2,800 | 0 | |
Repayments of long-term debt | -100,000 | 0 | |
Proceeds from long-term debt | 297,786 | 0 | |
Proceeds from issuance of stock under stock plans | 3,613 | 7,664 | |
Excess tax benefits on stock-based payments | 5,583 | 6,920 | |
Purchase of treasury stock | -31,923 | 0 | |
Net cash used in financing activities | -166,181 | -52,498 | |
Effect of exchange rate changes on cash and cash equivalents | -4,161 | 1,615 | |
Net change in cash and cash equivalents | 18,727 | 8,902 | |
Cash and cash equivalents at beginning of year | 324,422 | 88,279 | |
Cash and cash equivalents at end of period | 343,149 | 97,181 | |
Interest paid, net of amounts capitalized | 47,754 | 41,804 | |
Income taxes paid | $105,636 | $163,767 | [1] |
[1] | The 2012 amount includes $105.5 million pursuant to the Spanish tax settlement (see Note 6). |
Consolidated_Statement_Of_Cash1
Consolidated Statement Of Cash Flows (Parenthetical) (2004-2010 [Member], Spanish tax settlement [Member]) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | |
Payments pursuant to Spanish tax settlement | $1.90 | € 1.50 | $105.50 | $105.50 | € 84 |
Consolidated_Financial_Stateme
Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Consolidated Financial Statements | ' |
Consolidated Financial Statements: | |
Basis of Presentation | |
These interim statements and related management’s discussion and analysis should be read in conjunction with the Consolidated Financial Statements and their related notes and management’s discussion and analysis of results of operations, liquidity and capital resources included in our 2012 Annual Report on Form 10-K (“2012 Form 10-K”). These interim statements are unaudited. The year-end balance sheet data included in this Form 10-Q filing was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America. We have historically operated and continue to operate on a 52/53 week fiscal year ending on the Friday closest to the last day of the quarter. For ease of presentation, September 30 and December 31 are used consistently throughout this Form 10-Q and these interim financial statements and related notes to represent the period-end dates. For the 2013 and 2012 periods, the actual closing dates were September 27 and September 28, respectively. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. When used herein, the terms “the Registrant,” “IFF,” “the Company,” “we,” “us” and “our” mean International Flavors & Fragrances Inc. and its consolidated subsidiaries. | |
Revisions | |
For the nine months ended September 30, 2012, the Consolidated Statement of Cash Flows has been revised to properly classify proceeds from termination of life insurance contracts of $5.3 million from Changes in other assets within Net cash provided by operating activities to Net cash used in investing activities. The Consolidated Statement of Cash Flows for the nine months ended September 30, 2012 has also been revised to properly eliminate capitalized interest of $4.9 million from Interest paid, net of capitalized amounts. These revisions are not considered material to the previously issued financial statements. | |
The Consolidated Balance Sheet as of December 31, 2012, has been revised to properly reflect the funded status of one of our non-U.S. pension plans, and the related deferred tax asset, from non-current to current. Accordingly, Retirement liabilities and deferred income taxes (non-current) were decreased by $10.6 million and $3.5 million, respectively and Other current liabilities and deferred income taxes (current) were increased by $7.2 million and $0.1 million, respectively. These revisions are not considered material to the previously issued financial statements. | |
Recent Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance related to reclassifications out of accumulated other comprehensive income (“AOCI”). Under the amendments in this update, an entity is required to report, in one place, information about reclassifications out of AOCI and to report changes in its AOCI balances. For significant items reclassified out of AOCI to net income in their entirety in the same reporting period, reporting is required about the effect of the reclassifications on the respective line items in the statement where net income or loss is presented. For items that are not reclassified to net income or loss in their entirety in the same reporting period, a cross reference to other disclosures currently required under GAAP is required in the notes to the entity’s consolidated financial statements. This guidance is effective prospectively for reporting periods beginning after December 15, 2012. During the first quarter of 2013, the Company adopted this guidance as disclosed in Note 11. | |
In March 2013, the FASB issued authoritative guidance clarifying the accounting for the release of cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The guidance is effective prospectively for reporting periods beginning after December 15, 2013. We do not anticipate that this adoption will have a significant impact on our financial position, results of operations or cash flows. | |
In July, 2013 the FASB issued authoritative guidance related to the financial statement presentation of unrecognized tax benefits. This update clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose. In such situations, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The guidance is effective prospectively for reporting periods beginning after December 15, 2013. We do not anticipate that this adoption will have a significant impact on our financial position, results of operations or cash flows. | |
In July 2013, the FASB issued authoritative guidance that permits the Fed Funds Effective Swap Rate to be used as an additional U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to interest rates on direct Treasury obligations of the U.S. government ("UST") and the London InterBank Offered Rate ("LIBOR"). The update also allows the use of different benchmark rates for similar hedges. The guidance is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The initial adoption of this ASU did not impact to the Company's financial position, results of operations or cash flows. |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Income Per Share | ' | |||||||||||
Net Income Per Share: | ||||||||||||
Net income per share is based on the weighted average number of shares outstanding. A reconciliation of the shares used in the computation of basic and diluted net income per share is as follows: | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
(SHARES IN THOUSANDS) | 2013 | 2012 | 2013 | 2012 | ||||||||
Basic | 81,437 | 81,246 | 81,349 | 81,241 | ||||||||
Assumed dilution under stock plans | 606 | 652 | 610 | 743 | ||||||||
Diluted | 82,043 | 81,898 | 81,959 | 81,984 | ||||||||
Stock options and stock settled appreciation rights (“SSAR’s”) to purchase 132,200 shares in the aggregate were outstanding as of the three and nine months ended September 30, 2012, but are not included in the computation of diluted net income per share because to do so would have been anti-dilutive for the periods presented. There were no stock options or SSAR’s excluded from the computation of diluted net income per share for the three and nine months ended September 30, 2013. | ||||||||||||
The Company has issued shares of purchased restricted common stock (“PRS”) which contain rights to nonforfeitable dividends while these shares are outstanding and thus are considered participating securities which are required to be included in the computation of basic and diluted earnings per share pursuant to the two-class method. The Company did not present the two-class method since the difference between basic and diluted net income per share for both unrestricted common shareholders and PRS shareholders was less than $0.01 per share for each period presented and the number of PRS outstanding as of September 30, 2013 and 2012 was immaterial (approximately 0.7% and 0.6% of the total number of common shares outstanding as of September 30, 2013 and 2012, respectively). Net income allocated to such PRS was $0.6 million and $0.1 million during the three months ended September 30, 2013 and 2012, respectively and $1.9 million and $1.2 million during the nine months ended September 30, 2013 and 2012, respectively. |
Restructuring_and_Other_Charge
Restructuring and Other Charges, Net | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring and Other Charges, Net | ' | |||||||||||||||
Restructuring and Other Charges, Net: | ||||||||||||||||
Fragrance Ingredients Rationalization | ||||||||||||||||
During the second quarter of 2013, the Company announced that it intends to close its fragrance ingredients manufacturing facility in Augusta, Georgia by July 2014 and plans to consolidate production into other Company facilities. In connection with this closure, the Company expects to incur charges of $16 - $21 million, consisting primarily of $10 - $12 million in accelerated depreciation of fixed assets, $3 - $4 million in personnel-related costs and $3 - $5 million in plant shutdown and other related costs. The Company recorded a total charge of $2.9 million during the second quarter of 2013, consisting of a $2.1 million pre-tax charge related to severance included in Restructuring and other charges, net and a $0.8 million non-cash charge related to accelerated depreciation included in Cost of goods sold. During the third quarter of 2013, the Company recorded an additional $2.2 million non-cash charge related to accelerated depreciation included in Cost of goods sold. The remainder of the estimated costs is expected to be recognized over the following four quarters. The Company expects that 43 positions will be eliminated as a result of these decisions. The Company estimates that approximately $6 - $9 million of the costs will result in future cash expenditures. | ||||||||||||||||
Strategic Initiative | ||||||||||||||||
In the fourth quarter of 2011, the Company recorded a $9.8 million charge to cover a strategic initiative which involved a reduction in workforce primarily related to a realignment of responsibilities in our Fragrances business unit. It also entailed the redeployment of creative resources in emerging markets and resulted in the elimination of 72 positions across our Fragrances, Flavors and corporate functions. The Company recorded an additional net charge of $1.7 million during 2012, which was principally attributable to adjustments based on the final separation terms with affected employees. There are no additional charges expected for this plan. | ||||||||||||||||
Changes in employee-related restructuring liabilities during the nine months ended September 30, 2013 related to these plans were as follows: | ||||||||||||||||
Fragrance Ingredients Rationalization | ||||||||||||||||
(DOLLARS IN THOUSANDS) | Fragrance | Accelerated Depreciation | Strategic | Total | ||||||||||||
Ingredients | Initiative | |||||||||||||||
Rationalization | ||||||||||||||||
31-Dec-12 | $ | — | $ | — | $ | 3,149 | $ | 3,149 | ||||||||
Additional charges, net | 2,105 | 3,000 | — | 5,105 | ||||||||||||
Non-cash charges | — | (3,000 | ) | — | (3,000 | ) | ||||||||||
Payments and other costs | (28 | ) | — | (2,766 | ) | (2,794 | ) | |||||||||
30-Sep-13 | $ | 2,077 | $ | — | $ | 383 | $ | 2,460 | ||||||||
Other_Intangible_Assets_Net
Other Intangible Assets, Net | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Other Intangible Assets, Net | ' | |||||||
Other Intangible Assets, Net: | ||||||||
Other intangible assets, net consist of the following amounts: | ||||||||
September 30, | December 31, | |||||||
(DOLLARS IN THOUSANDS) | 2013 | 2012 | ||||||
Gross carrying value (1) | $ | 165,406 | $ | 165,406 | ||||
Accumulated amortization | (133,272 | ) | (128,718 | ) | ||||
Total | $ | 32,134 | $ | 36,688 | ||||
-1 | Includes patents, trademarks and other intellectual property, valued at acquisition. | |||||||
Amortization expense was $1.5 million, in each period for the three months ended September 30, 2013 and 2012 and amortization expense for the nine months ended September 30, 2013 and 2012 was $4.6 million, in each period. Annual amortization is expected to be $6.1 million for the year 2013, $4.7 million for the years 2014 through 2017 and $4.6 million for the year 2018. |
Borrowings
Borrowings | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Borrowings | ' | ||||||||||||
Borrowings: | |||||||||||||
Debt consists of the following: | |||||||||||||
(DOLLARS IN THOUSANDS) | Rate | Maturities | 30-Sep-13 | 31-Dec-12 | |||||||||
Senior notes - 2007 | 6.4 | % | 2017-27 | $ | 500,000 | $ | 500,000 | ||||||
Senior notes - 2006 | 6.1 | % | 2016 | 125,000 | 225,000 | ||||||||
Senior notes - 2013 | 3.2 | % | 2023 | 299,736 | — | ||||||||
Credit facility | 2016 | — | 296,748 | ||||||||||
Bank overdrafts and other | 1,295 | 399 | |||||||||||
Deferred realized gains on interest rate swaps | 7,577 | 9,028 | |||||||||||
933,608 | 1,031,175 | ||||||||||||
Less: Current portion of long-term debt | (144 | ) | (150,071 | ) | |||||||||
$ | 933,464 | $ | 881,104 | ||||||||||
On April 4, 2013, the Company issued $300.0 million face amount of 3.20% Senior Notes (“Senior Notes - 2013”) due 2023 at a discount of $0.3 million. The Company received proceeds related to the issuance of these Senior Notes - 2013 of $297.8 million which was net of the $0.3 million discount and a $1.9 million underwriting discount (recorded as deferred financing costs). In addition, the Company incurred $0.9 million of other deferred financing costs in connection with the debt issuance. The discount and deferred financing costs are being amortized as interest expense over the term of the Senior Notes - 2013. The Senior Notes - 2013 bear interest at a rate of 3.20% per year, with interest payable on May 1 and November 1 of each year, commencing on November 1, 2013. The Senior Notes - 2013 mature on May 1, 2023. Upon 30 days’ notice to holders of the Senior Notes - 2013, the Company may redeem the Senior Notes - 2013 for cash in whole, at any time, or in part, from time to time, prior to maturity, at redemption prices that include accrued and unpaid interest and a make-whole premium. However, no make-whole premium will be paid for redemptions of the Senior Notes - 2013 on or after February 1, 2023. The Indenture provides for customary events of default and contains certain negative covenants that limit the ability of the Company and its subsidiaries to grant liens on assets, to enter into sale-leaseback transactions or to consolidate with or merge into any other entity or convey, transfer or lease all or substantially all of the Company’s properties and assets. In addition, subject to certain limitations, in the event of the occurrence of both (1) a change of control of the Company and (2) a downgrade of the Senior Notes - 2013 below investment grade rating by both Moody’s Investors Services, Inc. and Standard & Poor’s Ratings Services within a specified time period, the Company will be required to make an offer to repurchase the Senior Notes - 2013 at a price equal to 101% of the principal amount of the Senior Notes - 2013, plus accrued and unpaid interest to the date of repurchase. | |||||||||||||
On April 26, 2013, the Company repaid the full amount outstanding under the credit facility ($283.1 million). | |||||||||||||
On July 12, 2013, the Company made a payment of $100.0 million related to our Senior Unsecured Notes issued in 2006. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes: | |
At September 30, 2013, we had $25.3 million of unrecognized tax benefits recorded in Other liabilities and $4.9 million recorded in Other current liabilities. If these unrecognized tax benefits were recognized, the effective tax rate would be affected. | |
For the nine months ended September 30, 2013, the Company reduced its accrual for interest and penalties by $6.8 million, net, principally related to Spain, as discussed below. At September 30, 2013, the Company had accrued interest and penalties of $0.5 million classified in Other liabilities and $0.2 million classified in Other current liabilities. | |
The Company regularly repatriates a portion of current year earnings from select non–U.S. subsidiaries. No provision is made for additional taxes on undistributed earnings of subsidiary companies that are intended and planned to be indefinitely invested in such subsidiaries. We intend to, and have plans to, reinvest these earnings indefinitely in our foreign subsidiaries to fund local operations and/or capital projects. | |
The Company has ongoing income tax audits and legal proceedings which are at various stages of administrative or judicial review, of which the most significant items are discussed below. In addition, the Company has other ongoing tax audits and legal proceedings that relate to indirect taxes, such as value-added taxes, capital tax, sales and use taxes and property taxes, which are discussed in Note 12. | |
During the third quarter of 2012 the Company and the Spanish tax authorities entered into an overall settlement with respect to assessments imposed in connection with audits for the 2004-2010 fiscal years. In connection with this settlement, the Company paid Euro 84.0 million ($105.5 million based on exchange rates at the respective payment dates) during 2012 and paid the remainder of Euro 1.5 million ($1.9 million based on the exchange rate at the payment date) in the first quarter of 2013. This settlement did not address either the 2002-2003 fiscal years or the 2011 fiscal year. In connection with the overall settlement, the Company recorded after-tax charges of $72.4 million during the third quarter 2012, which included $56.0 million related to the tax settlement of the 2004-2010 period and the increased liabilities for uncertain tax positions of $16.4 million for years not settled. During the fourth quarter of 2012 the Company and the Spanish tax authorities also finalized a multi-year agreement that established the tax basis for the Company’s activities in Spain for 2012 through 2014 consistent with the key principles preliminarily agreed upon as part of the overall settlement. The Company’s Spanish subsidiaries have not yet received an assessment with respect to the 2011 fiscal year. | |
As a result of the audits of 2002-2003 fiscal years, the Spanish tax authorities imposed assessments aggregating Euro 22.4 million ($28.6 million), including aggregate estimated interest. The Company had previously appealed these assessments with the Appellate Court. On February 7, 2013, the Appellate Court upheld the Central Economic-Administrative Tribunal’s (“TEAC”) ruling with respect to the 2003 tax assessment and the related tax avoidance claims. We decided not to pursue the appeal process. Accordingly, during the second quarter of 2013, we paid Euro 17.7 million ($23.3 million based on the exchange rate at the payment date) and during the third quarter we paid the remaining balance of Euro 3.1 million ($4.0 million based on the exchange rate at the payment date) in connection with the 2003 tax assessment. As a result of these payments, the remaining aggregate assessment related to the 2002 fiscal year was Euro 1.8 million ($2.4 million) as of September 30, 2013. To proceed with its appeals of the tax assessments for the 2002-2003 fiscal years, the Company was required to post bank guarantees. As of September 30, 2013, the Company had remaining posted bank guarantees of Euro 1.8 million ($2.4 million) associated with the 2002 appeal. In light of the court’s ruling, we also recorded a charge of $9.3 million in the first quarter associated with issues in the 2002-2003 cases that were unrelated to the issues underlying the 2004-2010 settlement. This charge was partially offset by a $3.1 million adjustment to prior accruals for the 2003 case. On June 17, 2013, the Appellate Court ruled against us on our appeal of the 2002 income tax assessment and related claims, which we have also decided not to appeal. There was no income tax impact associated with this decision. | |
In addition to the above, the Company has also been a party to four dividend withholding tax controversies in Spain in which the Spanish tax authorities alleged that the Company’s Spanish subsidiaries underpaid withholding taxes during the 1995-2001 fiscal years. The Company had previously appealed each of these controversies. During 2012, the Company received unfavorable decisions on the first three cases. As a result of these rulings, the Company (i) recorded charges (including estimated interest) of approximately $12.0 million after-tax during 2012, and (ii) made payments of Euro 9.8 million ($12.8 million based on exchange rate at the respective payment date) during 2012. At September 30, 2013, the Company had Euro 4.4 million ($6.0 million) reflected in income taxes payable in connection with these three cases. The fourth and final remaining appeal has not yet been heard by the Spanish Supreme Court. At September 30, 2013, the aggregate amount of the remaining dividend withholding controversy was Euro 3.2 million ($4.3 million), including estimated interest, which is fully reserved. As of September 30, 2013, the Company had posted bank guarantees of Euro 7.6 million ($10.3 million) in order to proceed with the appeal in this controversy. | |
As of September 30, 2013, the Company’s aggregate provisions for uncertain tax positions, including interest and penalties, was $30.9 million, which includes $7.2 million associated with the tax positions taken by our Spanish subsidiaries for the 2002 and the 2011 fiscal years, $3.7 million associated with our Spanish dividend withholding tax controversies and the remainder associated with various other tax positions asserted in foreign jurisdictions, none of which is individually material. | |
In addition, the Company has several other tax audits in process and has open tax years with various taxing jurisdictions that range primarily from 2007 to 2012. Based on currently available information, we do not believe the ultimate outcome of any of these tax audits and other tax positions related to open tax years, when finalized, will have a material impact on our financial position. | |
The effective tax rate for the three months ended September 30, 2013 was 26.1% compared with 86.6% for the three months ended September 30, 2012. The year-over-year reduction reflects the inclusion of a $72.4 million tax charge related to the Spanish tax settlement in the 2012 period as well as the restoration of the U.S. R&D tax credit in a Q3 2013 benefit and favorable mix of earnings that were partially offset by the reduction of deferred tax assets associated with a U.K. rate change. | |
The effective tax rate for the nine months ended September 30, 2013 was 27.4% compared with 47.6% for the nine months ended September 30, 2012. The 2013 first nine months includes a tax charge of $6.2 million related to the 2002-2003 cases (as discussed above) which was partially offset by a favorable mix of earnings and the reenactment of the U.S. R&D tax credit. The 2012 nine month period includes a $72.4 million tax charge in connection with the overall Spanish tax settlement as discussed above and a provision of $12.0 million related to the Spanish dividend withholding tax cases. These charges were partially offset by a $10.6 million benefit due to a corporate restructuring of certain of our foreign subsidiaries, a lower cost of remittances and other reserve adjustments on uncertain tax positions. The year-over-year reduction also reflects the 2012 and 2013 benefits associated with U.S. tax legislation enacted in the first quarter of 2013 (R&D tax credit), lower provisions for uncertain tax positions and favorable mix of earnings. |
Stock_Compensation_Plans
Stock Compensation Plans | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock Compensation Plans | ' | |||||||||||||||
Stock Compensation Plans: | ||||||||||||||||
The Company has various plans under which its officers, senior management, other key employees and directors may be granted equity-based awards. Equity awards outstanding under the plans include PRS, restricted stock units (“RSU’s”), stock options, SSAR’s and Long-Term Incentive Plan awards; liability-based awards outstanding under the plans are cash-settled RSUs. | ||||||||||||||||
Stock-based compensation expense and related tax benefits were as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(DOLLARS IN THOUSANDS) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Equity-based awards | $ | 4,869 | $ | 4,091 | $ | 18,919 | $ | 15,363 | ||||||||
Liability-based awards | 995 | 779 | 3,077 | 2,350 | ||||||||||||
Total stock-based compensation expense | 5,864 | 4,870 | 21,996 | 17,713 | ||||||||||||
Less: tax benefit | (1,735 | ) | (1,511 | ) | (6,756 | ) | (5,546 | ) | ||||||||
Total stock-based compensation expense, after tax | $ | 4,129 | $ | 3,359 | $ | 15,240 | $ | 12,167 | ||||||||
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information: | ||||||||||||||||
The Company is organized into two operating segments: Flavors and Fragrances. These segments align with the internal structure of the Company used to manage these businesses. Performance of these operating segments is evaluated based on segment profit which is defined as operating profit before Restructuring and certain non-recurring items, Interest expense, Other expense, net and Taxes on income. | ||||||||||||||||
The Global expenses caption below represents corporate and headquarters-related expenses which include legal, finance, human resources, certain incentive compensation expenses and other R&D and administrative expenses that are not allocated to individual operating segments. | ||||||||||||||||
Reportable segment information is as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(DOLLARS IN THOUSANDS) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net sales: | ||||||||||||||||
Flavors | $ | 349,385 | $ | 340,674 | $ | 1,079,786 | $ | 1,051,932 | ||||||||
Fragrances | 392,871 | 368,281 | 1,147,941 | 1,088,956 | ||||||||||||
Consolidated | $ | 742,256 | $ | 708,955 | $ | 2,227,727 | $ | 2,140,888 | ||||||||
Segment profit: | ||||||||||||||||
Flavors | $ | 81,101 | $ | 76,145 | $ | 254,055 | $ | 236,458 | ||||||||
Fragrances | 81,309 | 65,331 | 221,577 | 185,049 | ||||||||||||
Global expenses | (18,313 | ) | (7,301 | ) | (47,236 | ) | (32,450 | ) | ||||||||
Restructuring and other charges, net | — | — | (2,105 | ) | (1,668 | ) | ||||||||||
Operational improvement initiative costs (1) | (2,568 | ) | — | (4,761 | ) | — | ||||||||||
Operating profit | 141,529 | 134,175 | 421,530 | 387,389 | ||||||||||||
Interest expense | (11,625 | ) | (9,907 | ) | (35,637 | ) | (31,330 | ) | ||||||||
Other income, net (2) | 4,080 | (2,424 | ) | 16,359 | (1,333 | ) | ||||||||||
Income before taxes | $ | 133,984 | $ | 121,844 | $ | 402,252 | $ | 354,726 | ||||||||
-1 | Operational improvement initiative costs relate to the closing of a smaller facility in Europe and certain manufacturing activities in Asia, while transferring production to larger facilities in each respective region. | |||||||||||||||
-2 | Other income, net includes a $16.1 million gain on the sale of a non-operating asset for the nine months ended September 30, 2013. | |||||||||||||||
Net sales are attributed to individual regions based upon the destination of product delivery. Net sales related to the U.S. for the three months ended September 30, 2013 and 2012 were $171 million in each respective period and for the nine months ended September 30, 2013 and 2012 were $504 million and $506 million, respectively. Net sales attributed to all foreign countries in total for the three months ended September 30, 2013 and 2012 were $571 million and $538 million, respectively and for the nine months ended September 30, 2013 and 2012 were $1,724 million and $1,635 million, respectively. No non-U.S. country had net sales in any period presented greater than 8% of total consolidated net sales. |
Employee_Benefits
Employee Benefits | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Employee Benefits | ' | |||||||||||||||
Employee Benefits: | ||||||||||||||||
Pension and other defined contribution retirement plan expenses included the following components: | ||||||||||||||||
U.S. Plans | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(DOLLARS IN THOUSANDS) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost for benefits earned | $ | 881 | $ | 938 | $ | 2,643 | $ | 2,815 | ||||||||
Interest cost on projected benefit obligation | 5,740 | 6,002 | 17,222 | 18,005 | ||||||||||||
Expected return on plan assets | (6,557 | ) | (6,041 | ) | (19,671 | ) | (18,124 | ) | ||||||||
Net amortization and deferrals | 5,868 | 4,913 | 17,606 | 14,738 | ||||||||||||
Net periodic benefit cost | 5,932 | 5,812 | 17,800 | 17,434 | ||||||||||||
Defined contribution and other retirement plans | 1,585 | 1,651 | 5,531 | 5,515 | ||||||||||||
Total expense | $ | 7,517 | $ | 7,463 | $ | 23,331 | $ | 22,949 | ||||||||
Non-U.S. Plans | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(DOLLARS IN THOUSANDS) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost for benefits earned | $ | 4,086 | $ | 3,064 | $ | 12,256 | $ | 9,422 | ||||||||
Interest cost on projected benefit obligation | 7,718 | 7,560 | 23,204 | 23,144 | ||||||||||||
Expected return on plan assets | (11,859 | ) | (9,813 | ) | (35,653 | ) | (32,701 | ) | ||||||||
Net amortization and deferrals | 2,315 | 1,589 | 6,967 | 4,810 | ||||||||||||
Loss due to settlements and special terminations | 35 | — | 110 | 874 | ||||||||||||
Net periodic benefit cost | 2,295 | 2,400 | 6,884 | 5,549 | ||||||||||||
Defined contribution and other retirement plans | 1,548 | 1,150 | 2,838 | 3,479 | ||||||||||||
Total expense | $ | 3,843 | $ | 3,550 | $ | 9,722 | $ | 9,028 | ||||||||
The Company expects to contribute $18 – $28 million to its non-U.S. pension plans during 2013. In the nine months ended September 30, 2013, $30.0 million of contributions were made to the qualified U.S. pension plans. In the three and nine months ended September 30, 2013, $4.3 million and $12.8 million of contributions were made to the non-U.S. plans, respectively. In the three and nine months ended September 30, 2013, $1.0 million and $3.1 million of benefit payments were made with respect to the Company’s non-qualified U.S. pension plan, respectively. | ||||||||||||||||
Expense recognized for postretirement benefits other than pensions included the following components: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(DOLLARS IN THOUSANDS) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost for benefits earned | $ | 362 | $ | 341 | $ | 1,086 | $ | 1,023 | ||||||||
Interest cost on projected benefit obligation | 1,168 | 1,447 | 3,504 | 4,341 | ||||||||||||
Net amortization and deferrals | (663 | ) | (361 | ) | (1,989 | ) | (1,083 | ) | ||||||||
Total postretirement benefit expense | $ | 867 | $ | 1,427 | $ | 2,601 | $ | 4,281 | ||||||||
The Company expects to contribute approximately $5 million to its postretirement benefits other than pension plans during 2013. In the three and nine months ended September 30, 2013, $1.2 million and $3.9 million of contributions were made, respectively. |
Financial_Instruments
Financial Instruments | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||||
Financial Instruments | ' | |||||||||||||||||
Financial Instruments: | ||||||||||||||||||
Fair Value | ||||||||||||||||||
Accounting guidance on fair value measurements specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs create the following fair value hierarchy: | ||||||||||||||||||
• | Level 1–Quoted prices for identical instruments in active markets. | |||||||||||||||||
• | Level 2–Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. | |||||||||||||||||
• | Level 3–Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||||||||
This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. We determine the fair value of structured liabilities (where performance is linked to structured interest rates, inflation or currency risks) using the LIBOR swap curve and forward interest and exchange rates at period end. Such instruments are classified as Level 2 based on the observability of significant inputs to the model. We do not have any instruments classified as Level 1 or Level 3, other than those included in pension asset trusts as discussed in Note 13 of our 2012 Form 10-K. | ||||||||||||||||||
These valuations take into consideration our credit risk and our counterparties’ credit risk. The estimated change in the fair value of these instruments due to such changes in our own credit risk (or instrument-specific credit risk) was immaterial as of September 30, 2013. | ||||||||||||||||||
The amounts recorded in the balance sheet (carrying amount) and the estimated fair values of financial instruments at September 30, 2013 and December 31, 2012 consisted of the following: | ||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||
(DOLLARS IN THOUSANDS) | ||||||||||||||||||
Cash and cash equivalents (1) | $ | 343,149 | $ | 343,149 | $ | 324,422 | $ | 324,422 | ||||||||||
Credit facilities and bank overdrafts (2) | 144 | 144 | 297,147 | 297,147 | ||||||||||||||
Long-term debt: (3) | ||||||||||||||||||
Senior notes - 2007 | 500,000 | 597,687 | 500,000 | 634,000 | ||||||||||||||
Senior notes - 2006 | 125,000 | 140,676 | 225,000 | 248,000 | ||||||||||||||
Senior notes - 2013 | 299,736 | 283,458 | — | — | ||||||||||||||
-1 | The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments. | |||||||||||||||||
-2 | The carrying amount of our credit facilities and bank overdrafts approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments. | |||||||||||||||||
-3 | The fair value of our long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on our own credit risk. | |||||||||||||||||
Derivatives | ||||||||||||||||||
We periodically enter into foreign currency forward contracts with the objective of reducing exposure to cash flow volatility associated with our intercompany loans, foreign currency receivables and payables, and anticipated purchases of certain raw materials used in operations. These contracts generally involve the exchange of one currency for a second currency at a future date, have maturities not exceeding twelve months and are with counterparties which are major international financial institutions. | ||||||||||||||||||
In 2003, we executed a 10-year Yen - U.S. dollar currency swap related to the monthly sale and purchase of products between the U.S. and Japan which had been designated as a cash flow hedge. This swap matured in January 2013. | ||||||||||||||||||
During the nine months ended September 30, 2013 and the year ended December 31, 2012, we entered into multiple forward currency contracts which qualified as net investment hedges, in order to mitigate a portion of our net European investments from foreign currency risk. The effective portions of net investment hedges are recorded in Other comprehensive income (“OCI”) as a component of Foreign currency translation adjustments in the accompanying Consolidated Statement of Comprehensive Income. Realized gains/(losses) are deferred in AOCI where they will remain until the net investments in our European subsidiaries are divested. Four of these forward currency contracts matured during the nine months ended September 30, 2013. The outstanding forward currency contracts have remaining maturities of approximately one year. | ||||||||||||||||||
During the nine months ended September 30, 2013 and the year ended December 31, 2012, we entered into several forward currency contracts which qualified as cash flow hedges. The objective of these hedges is to protect against the currency risk associated with forecasted U.S. dollar (USD) denominated raw material purchases made by Euro (EUR) functional currency entities which result from changes in the EUR/USD exchange rate. The effective portions of cash flow hedges are recorded in OCI as a component of Losses on derivatives qualifying as hedges in the accompanying Consolidated Statement of Comprehensive Income. Realized gains/(losses) in AOCI related to cash flow hedges of raw material purchases are recognized as a component of Cost of goods sold in the accompanying Consolidated Statement of Comprehensive Income in the same period as the related costs are recognized. | ||||||||||||||||||
During Q1 2013, we entered into three interest rate swaps to hedge the anticipated issuance of fixed-rate debt, which are designated as cash flow hedges. The effective portions of cash flow hedges are recorded in OCI as a component of Losses on derivatives qualifying as hedges in the accompanying Consolidated Statement of Comprehensive Income. During the second quarter of 2013, we terminated these swaps and incurred a loss of $2.7 million, which we will amortize as Interest expense over the life of the Senior Notes - 2013 (discussed in Note 5). | ||||||||||||||||||
During Q3 2013, we entered into multiple interest rate swap agreements effectively converting the fixed rate on a portion of our long-term borrowings to a variable short-term rate based on the LIBOR plus an interest markup. These swaps are designated as fair value hedges. Amounts recognized in Interest expense were immaterial for the three and nine months ended September 30, 2013. In addition, two interest rate swaps designated as fair value hedges matured in July 2013. | ||||||||||||||||||
The following table shows the notional amount of the Company’s derivative instruments outstanding as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||
(DOLLARS IN THOUSANDS) | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Foreign currency contracts | $ | 267,100 | $ | 143,483 | ||||||||||||||
Interest rate swaps | $ | 375,000 | $ | 100,000 | ||||||||||||||
The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected in the Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||
(DOLLARS IN THOUSANDS) | Fair Value of | Fair Value of | Total Fair | |||||||||||||||
Derivatives | Derivatives Not | Value | ||||||||||||||||
Designated as | Designated as | |||||||||||||||||
Hedging | Hedging | |||||||||||||||||
Instruments | Instruments | |||||||||||||||||
Derivative assets (a) | ||||||||||||||||||
Foreign currency contracts | $ | 493 | $ | 3,688 | $ | 4,181 | ||||||||||||
Interest rate swaps | 1,151 | — | 1,151 | |||||||||||||||
$ | 1,644 | $ | 3,688 | $ | 5,332 | |||||||||||||
Derivative liabilities (b) | ||||||||||||||||||
Foreign currency contracts | $ | 4,582 | $ | 4,095 | $ | 8,677 | ||||||||||||
31-Dec-12 | ||||||||||||||||||
(DOLLARS IN THOUSANDS) | Fair Value of | Fair Value of | Total Fair | |||||||||||||||
Derivatives | Derivatives Not | Value | ||||||||||||||||
Designated as | Designated as | |||||||||||||||||
Hedging | Hedging | |||||||||||||||||
Instruments | Instruments | |||||||||||||||||
Derivative assets (a) | ||||||||||||||||||
Foreign currency contracts | $ | 676 | $ | 2,535 | $ | 3,211 | ||||||||||||
Interest rate swaps | 328 | — | 328 | |||||||||||||||
$ | 1,004 | $ | 2,535 | $ | 3,539 | |||||||||||||
Derivative liabilities (b) | ||||||||||||||||||
Foreign currency contracts | $ | 5,251 | $ | 278 | $ | 5,529 | ||||||||||||
(a) | Derivative assets are recorded to Prepaid expenses and other current assets in the Consolidated Balance Sheet. | |||||||||||||||||
(b) | Derivative liabilities are recorded as Other current liabilities in the Consolidated Balance Sheet. | |||||||||||||||||
The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Amount of (Loss) Gain | Location of (Loss) Gain | ||||||||||||||||
Recognized in Income | ||||||||||||||||||
on Derivative | ||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Foreign currency contracts | $ | (4,821 | ) | $ | (1,073 | ) | Other (income) expense, net | |||||||||||
Derivatives Not Designated as Hedging Instruments | Amount of (Loss) Gain | Location of (Loss) Gain | ||||||||||||||||
Recognized in Income on | Recognized in Income | |||||||||||||||||
Derivative | on Derivative | |||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Foreign currency contracts | $ | 7,686 | $ | 5,010 | Other (income) expense, net | |||||||||||||
Most of these net gains (losses) offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods. | ||||||||||||||||||
The following table shows the effect of the Company’s derivative instruments designated as cash flow and net investment hedging instruments in the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||
Amount of (Loss) Gain | Location of (Loss) Gain | Amount of (Loss) Gain | ||||||||||||||||
Recognized in OCI on | Reclassified from AOCI into | Reclassified from | ||||||||||||||||
Derivative (Effective | Income (Effective Portion) | Accumulated OCI into | ||||||||||||||||
Portion) | Income (Effective | |||||||||||||||||
Portion) | ||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||
Cross currency swap (1) | $ | — | $ | 404 | Other (income) expense, net | $ | — | $ | (719 | ) | ||||||||
Foreign currency contracts | (1,926 | ) | (4,351 | ) | Cost of goods sold | (1,172 | ) | 1,720 | ||||||||||
Interest rate swaps (2) | 69 | — | Interest expense | (69 | ) | — | ||||||||||||
Derivatives in Net Investment Hedging Relationships: | ||||||||||||||||||
Foreign currency contracts | (2,295 | ) | (381 | ) | N/A | — | — | |||||||||||
Total | $ | (4,152 | ) | $ | (4,328 | ) | $ | (1,241 | ) | $ | 1,001 | |||||||
Amount of (Loss) Gain | Location of (Loss) Gain | Amount of (Loss) Gain | ||||||||||||||||
Recognized in OCI on | Reclassified from AOCI into | Reclassified from | ||||||||||||||||
Derivative (Effective | Income (Effective Portion) | Accumulated OCI into | ||||||||||||||||
Portion) | Income (Effective | |||||||||||||||||
Portion) | ||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||
Cross currency swap (1) | $ | — | $ | 1,437 | Other (income) expense, net | $ | (333 | ) | $ | (2,093 | ) | |||||||
Foreign currency contracts | (1,606 | ) | (3,028 | ) | Cost of goods sold | 390 | 2,680 | |||||||||||
Interest rate swaps (2) | (2,598 | ) | — | Interest expense | (137 | ) | — | |||||||||||
Derivatives in Net Investment Hedging Relationships: | ||||||||||||||||||
Foreign currency contracts | (653 | ) | (68 | ) | N/A | — | — | |||||||||||
Total | $ | (4,857 | ) | $ | (1,659 | ) | $ | (80 | ) | $ | 587 | |||||||
-1 | Ten year swap executed in 2003. | |||||||||||||||||
-2 | Interest rate swaps were entered into as pre-issuance hedges for the $300 million bond offering. | |||||||||||||||||
No ineffectiveness was experienced in the above noted cash flow hedges during the three and nine months ended September 30, 2013 and 2012. The ineffective portion of the net investment hedges was not material during the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||||||
The Company expects that approximately $1.8 million (net of tax) of derivative losses included in AOCI at September 30, 2013, based on current market rates, will be reclassified into earnings within the next 12 months. The majority of this amount will vary due to fluctuations in foreign currency exchange rates. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
Accumulated Other Comprehensive Income (Loss): | ||||||||||||||||
The following tables present changes in the accumulated balances for each component of other comprehensive income, including current period other comprehensive income and reclassifications out of accumulated other comprehensive income: | ||||||||||||||||
Foreign | (Losses) Gains on | Pension and | Total | |||||||||||||
Currency | Derivatives | Postretirement | ||||||||||||||
Translation | Qualifying as | Liability | ||||||||||||||
Adjustments | Hedges | Adjustment | ||||||||||||||
(DOLLARS IN THOUSANDS) | ||||||||||||||||
Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2012 | $ | (93,722 | ) | $ | (218 | ) | $ | (309,685 | ) | $ | (403,625 | ) | ||||
OCI before reclassifications | (11,118 | ) | (4,241 | ) | — | (15,359 | ) | |||||||||
Amounts reclassified from AOCI | — | 80 | 15,346 | 15,426 | ||||||||||||
Net current period other comprehensive income (loss) | (11,118 | ) | (4,161 | ) | 15,346 | 67 | ||||||||||
Accumulated other comprehensive (loss) income, net of tax, as of September 30, 2013 | $ | (104,840 | ) | $ | (4,379 | ) | $ | (294,339 | ) | $ | (403,558 | ) | ||||
Foreign | (Losses) Gains on | Pension and | Total | |||||||||||||
Currency | Derivatives | Postretirement | ||||||||||||||
Translation | Qualifying as | Liability | ||||||||||||||
Adjustments | Hedges | Adjustment | ||||||||||||||
(DOLLARS IN THOUSANDS) | ||||||||||||||||
Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2011 | $ | (111,409 | ) | $ | 4,237 | $ | (268,137 | ) | $ | (375,309 | ) | |||||
OCI before reclassifications | 2,169 | (919 | ) | — | 1,250 | |||||||||||
Amounts reclassified from AOCI | — | (587 | ) | 12,949 | 12,362 | |||||||||||
Net current period other comprehensive income (loss) | 2,169 | (1,506 | ) | 12,949 | 13,612 | |||||||||||
Accumulated other comprehensive (loss) income, net of tax, as of September 30, 2012 | $ | (109,240 | ) | $ | 2,731 | $ | (255,188 | ) | $ | (361,697 | ) | |||||
The following table provides details about reclassifications out of accumulated other comprehensive income to the Consolidated Statement of Comprehensive Income: | ||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | Affected Line Item in the | ||||||||||||||
Consolidated Statement | ||||||||||||||||
of Comprehensive Income | ||||||||||||||||
(DOLLARS IN THOUSANDS) | ||||||||||||||||
(Losses) gains on derivatives qualifying as hedges | ||||||||||||||||
Cross currency swap | $ | (333 | ) | $ | (2,093 | ) | Other (income) expense, net | |||||||||
Foreign currency contracts | 538 | 3,697 | Cost of goods sold | |||||||||||||
Interest rate swaps | (137 | ) | — | Interest expense | ||||||||||||
(148 | ) | (1,017 | ) | Provision for income taxes | ||||||||||||
$ | (80 | ) | $ | 587 | Total, net of income taxes | |||||||||||
(Losses) gains on pension and postretirement liability adjustments | ||||||||||||||||
Settlements / Curtailments | $ | (110 | ) | $ | (874 | ) | (a) | |||||||||
Prior service cost | 3,295 | 3,163 | (a) | |||||||||||||
Actuarial losses | (25,879 | ) | (21,628 | ) | (a) | |||||||||||
7,348 | 6,390 | Provision for income taxes | ||||||||||||||
$ | (15,346 | ) | $ | (12,949 | ) | Total, net of income taxes | ||||||||||
(a) | The amortization of prior service cost and actuarial loss is included in the computation of net periodic benefit cost. Refer to Note 9 to the Consolidated Financial Statements - Employee Benefits for additional information regarding net periodic benefit cost. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies: | |
Guarantees and Letters of Credit | |
The Company has various bank guarantees and letters of credit which are available for use regarding governmental requirements associated with pending litigation in various jurisdictions and to support its ongoing business operations. | |
At September 30, 2013, we had total bank guarantees and standby letters of credit of approximately $57.9 million with various financial institutions. Of this amount, Euro 9.4 million ($12.7 million) in bank guarantees are related to governmental requirements on income tax disputes in Spain, as discussed in further detail in Note 6. Also included in the above aggregate amount is a total of $12.9 million in bank guarantees which the Company has posted to appeal a Spanish capital tax assessment and $23.3 million for certain assessments in Brazil for other diverse income tax and indirect tax disputes related to fiscal years 1998-2011. There were no material amounts utilized under the standby letters of credit as of September 30, 2013. | |
In order to challenge the assessments in these cases in Brazil, the Company has been required to and has separately pledged assets, principally property, plant and equipment, to cover assessments in the amount of approximately $18.2 million as of September 30, 2013. | |
Lines of Credit | |
The Company has various lines of credit which are available to support its ongoing business operations. At September 30, 2013, we had available lines of credit (in addition to the credit facility discussed in Note 5) of approximately $86.0 million with various financial institutions. There were no significant amounts drawn down pursuant to these lines of credit as of September 30, 2013. | |
Litigation | |
The Company assesses contingencies related to litigation and/or other matters to determine the degree of probability and range of possible loss. A loss contingency is accrued in the Company’s consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly sensitive and requires judgments about future events. On at least a quarterly basis, the Company reviews contingencies related to litigation to determine the adequacy of accruals. The amount of ultimate loss may differ from these estimates and further events may require the Company to increase or decrease the amounts it has accrued on any matter. | |
Periodically, we assess our insurance coverage for all known claims, where applicable, taking into account aggregate coverage by occurrence, limits of coverage, self-insured retentions and deductibles, historical claims experience and claims experience with our insurance carriers. The liabilities are recorded at management’s best estimate of the probable outcome of the lawsuits and claims, taking into consideration the facts and circumstances of the individual matters as well as past experience on similar matters. At each balance sheet date, the key issues that management assesses are whether it is probable that a loss as to asserted or unasserted claims has been incurred and if so, whether the amount of loss can be reasonably estimated. We record the expected liability with respect to claims in Other liabilities and expected recoveries from our insurance carriers in Other assets. We recognize a receivable when we believe that realization of the insurance receivable is probable under the terms of the insurance policies and our payment experience to date. | |
Environmental | |
Over the past 20 years, various federal and state authorities and private parties have claimed that we are a Potentially Responsible Party (“PRP”) as a generator of waste materials for alleged pollution at a number of waste sites operated by third parties located principally in New Jersey and have sought to recover costs incurred and to be incurred to clean up the sites. | |
We have been identified as a PRP at nine facilities operated by third parties at which investigation and/or remediation activities may be ongoing. We analyze our potential liability on at least a quarterly basis. We accrue for environmental liabilities when they are probable and estimable. We estimate our share of the total future cost for these sites to be less than $5 million. | |
While joint and several liability is authorized under federal and state environmental laws, we believe the amounts we have paid and anticipate paying in the future for clean-up costs and damages at all sites are not material and will not have a material adverse effect on our financial condition, results of operations or liquidity. This assessment is based upon, among other things, the involvement of other PRPs at most of the sites, the status of the proceedings, including various settlement agreements and consent decrees, and the extended time period over which payments will likely be made. There can be no assurance, however, that future events will not require us to materially increase the amounts we anticipate paying for clean-up costs and damages at these sites, and that such increased amounts will not have a material adverse effect on our financial condition, results of operations or cash flows. | |
Other Contingencies | |
The Company has contingencies involving third parties (such as labor, contract, technology or product-related claims or litigation) as well as government-related items in various jurisdictions in which we operate pertaining to such items as value-added taxes, other indirect taxes, customs and duties and sales and use taxes, the most significant government related contingencies exist in Brazil. It is possible that cash flows or results of operations, in any period, could be materially affected by the unfavorable resolution of one or more of these contingencies. | |
With regard to the Brazilian matters, we believe we have valid defenses for the underlying positions under dispute; however, in order to pursue these defenses, we are required to, and have provided, bank guarantees and pledged assets in the aggregate amount of $41.5 million. The Brazilian matters take an extended period of time to proceed through the judicial process and there are a limited number of rulings to date. | |
Based on the information available as of September 30, 2013, we estimate a range of reasonably possible loss related to the matters above of $2-$20 million. | |
In addition, the Spanish tax authorities are alleging claims for a capital tax in a case arising from similar allegations as the income tax cases (discussed in further detail in Note 6). In connection with the 2002 income tax assessment ruling discussed in Note 6, the Appellate Court rejected one of the two bases upon which we based our capital tax position. However, we believe that we still have a strong basis for our capital tax position and intend to continue to defend these claims. If there is an unfavorable ruling in this case, we estimate a reasonably possible loss of approximately $13 million. |
Consolidated_Financial_Stateme1
Consolidated Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
These interim statements and related management’s discussion and analysis should be read in conjunction with the Consolidated Financial Statements and their related notes and management’s discussion and analysis of results of operations, liquidity and capital resources included in our 2012 Annual Report on Form 10-K (“2012 Form 10-K”). These interim statements are unaudited. The year-end balance sheet data included in this Form 10-Q filing was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America. We have historically operated and continue to operate on a 52/53 week fiscal year ending on the Friday closest to the last day of the quarter. For ease of presentation, September 30 and December 31 are used consistently throughout this Form 10-Q and these interim financial statements and related notes to represent the period-end dates. For the 2013 and 2012 periods, the actual closing dates were September 27 and September 28, respectively. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. When used herein, the terms “the Registrant,” “IFF,” “the Company,” “we,” “us” and “our” mean International Flavors & Fragrances Inc. and its consolidated subsidiaries. | |
Revisions | ' |
Revisions | |
For the nine months ended September 30, 2012, the Consolidated Statement of Cash Flows has been revised to properly classify proceeds from termination of life insurance contracts of $5.3 million from Changes in other assets within Net cash provided by operating activities to Net cash used in investing activities. The Consolidated Statement of Cash Flows for the nine months ended September 30, 2012 has also been revised to properly eliminate capitalized interest of $4.9 million from Interest paid, net of capitalized amounts. These revisions are not considered material to the previously issued financial statements. | |
The Consolidated Balance Sheet as of December 31, 2012, has been revised to properly reflect the funded status of one of our non-U.S. pension plans, and the related deferred tax asset, from non-current to current. Accordingly, Retirement liabilities and deferred income taxes (non-current) were decreased by $10.6 million and $3.5 million, respectively and Other current liabilities and deferred income taxes (current) were increased by $7.2 million and $0.1 million, respectively. These revisions are not considered material to the previously issued financial statements. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance related to reclassifications out of accumulated other comprehensive income (“AOCI”). Under the amendments in this update, an entity is required to report, in one place, information about reclassifications out of AOCI and to report changes in its AOCI balances. For significant items reclassified out of AOCI to net income in their entirety in the same reporting period, reporting is required about the effect of the reclassifications on the respective line items in the statement where net income or loss is presented. For items that are not reclassified to net income or loss in their entirety in the same reporting period, a cross reference to other disclosures currently required under GAAP is required in the notes to the entity’s consolidated financial statements. This guidance is effective prospectively for reporting periods beginning after December 15, 2012. During the first quarter of 2013, the Company adopted this guidance as disclosed in Note 11. | |
In March 2013, the FASB issued authoritative guidance clarifying the accounting for the release of cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The guidance is effective prospectively for reporting periods beginning after December 15, 2013. We do not anticipate that this adoption will have a significant impact on our financial position, results of operations or cash flows. | |
In July, 2013 the FASB issued authoritative guidance related to the financial statement presentation of unrecognized tax benefits. This update clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose. In such situations, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The guidance is effective prospectively for reporting periods beginning after December 15, 2013. We do not anticipate that this adoption will have a significant impact on our financial position, results of operations or cash flows. | |
In July 2013, the FASB issued authoritative guidance that permits the Fed Funds Effective Swap Rate to be used as an additional U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to interest rates on direct Treasury obligations of the U.S. government ("UST") and the London InterBank Offered Rate ("LIBOR"). The update also allows the use of different benchmark rates for similar hedges. The guidance is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The initial adoption of this ASU did not impact to the Company's financial position, results of operations or cash flows. |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Reconciliation of Shares Used in Computation of Basic and Diluted Net Income Per Share | ' | |||||||||||
A reconciliation of the shares used in the computation of basic and diluted net income per share is as follows: | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
(SHARES IN THOUSANDS) | 2013 | 2012 | 2013 | 2012 | ||||||||
Basic | 81,437 | 81,246 | 81,349 | 81,241 | ||||||||
Assumed dilution under stock plans | 606 | 652 | 610 | 743 | ||||||||
Diluted | 82,043 | 81,898 | 81,959 | 81,984 | ||||||||
Restructuring_and_Other_Charge1
Restructuring and Other Charges, Net (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Changes in Employee-Related Restructuring Liabilities | ' | |||||||||||||||
Changes in employee-related restructuring liabilities during the nine months ended September 30, 2013 related to these plans were as follows: | ||||||||||||||||
Fragrance Ingredients Rationalization | ||||||||||||||||
(DOLLARS IN THOUSANDS) | Fragrance | Accelerated Depreciation | Strategic | Total | ||||||||||||
Ingredients | Initiative | |||||||||||||||
Rationalization | ||||||||||||||||
31-Dec-12 | $ | — | $ | — | $ | 3,149 | $ | 3,149 | ||||||||
Additional charges, net | 2,105 | 3,000 | — | 5,105 | ||||||||||||
Non-cash charges | — | (3,000 | ) | — | (3,000 | ) | ||||||||||
Payments and other costs | (28 | ) | — | (2,766 | ) | (2,794 | ) | |||||||||
30-Sep-13 | $ | 2,077 | $ | — | $ | 383 | $ | 2,460 | ||||||||
Other_Intangible_Assets_Net_Ta
Other Intangible Assets, Net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of Other Intangible Assets, Net | ' | |||||||
Other intangible assets, net consist of the following amounts: | ||||||||
September 30, | December 31, | |||||||
(DOLLARS IN THOUSANDS) | 2013 | 2012 | ||||||
Gross carrying value (1) | $ | 165,406 | $ | 165,406 | ||||
Accumulated amortization | (133,272 | ) | (128,718 | ) | ||||
Total | $ | 32,134 | $ | 36,688 | ||||
-1 | Includes patents, trademarks and other intellectual property, valued at acquisition. |
Borrowings_Tables
Borrowings (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Components of Debt | ' | ||||||||||||
Debt consists of the following: | |||||||||||||
(DOLLARS IN THOUSANDS) | Rate | Maturities | 30-Sep-13 | 31-Dec-12 | |||||||||
Senior notes - 2007 | 6.4 | % | 2017-27 | $ | 500,000 | $ | 500,000 | ||||||
Senior notes - 2006 | 6.1 | % | 2016 | 125,000 | 225,000 | ||||||||
Senior notes - 2013 | 3.2 | % | 2023 | 299,736 | — | ||||||||
Credit facility | 2016 | — | 296,748 | ||||||||||
Bank overdrafts and other | 1,295 | 399 | |||||||||||
Deferred realized gains on interest rate swaps | 7,577 | 9,028 | |||||||||||
933,608 | 1,031,175 | ||||||||||||
Less: Current portion of long-term debt | (144 | ) | (150,071 | ) | |||||||||
$ | 933,464 | $ | 881,104 | ||||||||||
Stock_Compensation_Plans_Table
Stock Compensation Plans (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation Expense and Related Tax Benefits | ' | |||||||||||||||
Stock-based compensation expense and related tax benefits were as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(DOLLARS IN THOUSANDS) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Equity-based awards | $ | 4,869 | $ | 4,091 | $ | 18,919 | $ | 15,363 | ||||||||
Liability-based awards | 995 | 779 | 3,077 | 2,350 | ||||||||||||
Total stock-based compensation expense | 5,864 | 4,870 | 21,996 | 17,713 | ||||||||||||
Less: tax benefit | (1,735 | ) | (1,511 | ) | (6,756 | ) | (5,546 | ) | ||||||||
Total stock-based compensation expense, after tax | $ | 4,129 | $ | 3,359 | $ | 15,240 | $ | 12,167 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Reportable Segment Information | ' | |||||||||||||||
Reportable segment information is as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(DOLLARS IN THOUSANDS) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net sales: | ||||||||||||||||
Flavors | $ | 349,385 | $ | 340,674 | $ | 1,079,786 | $ | 1,051,932 | ||||||||
Fragrances | 392,871 | 368,281 | 1,147,941 | 1,088,956 | ||||||||||||
Consolidated | $ | 742,256 | $ | 708,955 | $ | 2,227,727 | $ | 2,140,888 | ||||||||
Segment profit: | ||||||||||||||||
Flavors | $ | 81,101 | $ | 76,145 | $ | 254,055 | $ | 236,458 | ||||||||
Fragrances | 81,309 | 65,331 | 221,577 | 185,049 | ||||||||||||
Global expenses | (18,313 | ) | (7,301 | ) | (47,236 | ) | (32,450 | ) | ||||||||
Restructuring and other charges, net | — | — | (2,105 | ) | (1,668 | ) | ||||||||||
Operational improvement initiative costs (1) | (2,568 | ) | — | (4,761 | ) | — | ||||||||||
Operating profit | 141,529 | 134,175 | 421,530 | 387,389 | ||||||||||||
Interest expense | (11,625 | ) | (9,907 | ) | (35,637 | ) | (31,330 | ) | ||||||||
Other income, net (2) | 4,080 | (2,424 | ) | 16,359 | (1,333 | ) | ||||||||||
Income before taxes | $ | 133,984 | $ | 121,844 | $ | 402,252 | $ | 354,726 | ||||||||
-1 | Operational improvement initiative costs relate to the closing of a smaller facility in Europe and certain manufacturing activities in Asia, while transferring production to larger facilities in each respective region. | |||||||||||||||
-2 | Other income, net includes a $16.1 million gain on the sale of a non-operating asset for the nine months ended September 30, 2013. |
Employee_Benefits_Tables
Employee Benefits (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Pension and Other Defined Contribution Retirement Plan Expenses | ' | |||||||||||||||
Pension and other defined contribution retirement plan expenses included the following components: | ||||||||||||||||
U.S. Plans | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(DOLLARS IN THOUSANDS) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost for benefits earned | $ | 881 | $ | 938 | $ | 2,643 | $ | 2,815 | ||||||||
Interest cost on projected benefit obligation | 5,740 | 6,002 | 17,222 | 18,005 | ||||||||||||
Expected return on plan assets | (6,557 | ) | (6,041 | ) | (19,671 | ) | (18,124 | ) | ||||||||
Net amortization and deferrals | 5,868 | 4,913 | 17,606 | 14,738 | ||||||||||||
Net periodic benefit cost | 5,932 | 5,812 | 17,800 | 17,434 | ||||||||||||
Defined contribution and other retirement plans | 1,585 | 1,651 | 5,531 | 5,515 | ||||||||||||
Total expense | $ | 7,517 | $ | 7,463 | $ | 23,331 | $ | 22,949 | ||||||||
Non-U.S. Plans | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(DOLLARS IN THOUSANDS) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost for benefits earned | $ | 4,086 | $ | 3,064 | $ | 12,256 | $ | 9,422 | ||||||||
Interest cost on projected benefit obligation | 7,718 | 7,560 | 23,204 | 23,144 | ||||||||||||
Expected return on plan assets | (11,859 | ) | (9,813 | ) | (35,653 | ) | (32,701 | ) | ||||||||
Net amortization and deferrals | 2,315 | 1,589 | 6,967 | 4,810 | ||||||||||||
Loss due to settlements and special terminations | 35 | — | 110 | 874 | ||||||||||||
Net periodic benefit cost | 2,295 | 2,400 | 6,884 | 5,549 | ||||||||||||
Defined contribution and other retirement plans | 1,548 | 1,150 | 2,838 | 3,479 | ||||||||||||
Total expense | $ | 3,843 | $ | 3,550 | $ | 9,722 | $ | 9,028 | ||||||||
Postretirement Benefits Other Than Pension Expenses | ' | |||||||||||||||
Expense recognized for postretirement benefits other than pensions included the following components: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(DOLLARS IN THOUSANDS) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost for benefits earned | $ | 362 | $ | 341 | $ | 1,086 | $ | 1,023 | ||||||||
Interest cost on projected benefit obligation | 1,168 | 1,447 | 3,504 | 4,341 | ||||||||||||
Net amortization and deferrals | (663 | ) | (361 | ) | (1,989 | ) | (1,083 | ) | ||||||||
Total postretirement benefit expense | $ | 867 | $ | 1,427 | $ | 2,601 | $ | 4,281 | ||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||||
Carrying Amount and Estimated Fair Values of Financial Instruments | ' | |||||||||||||||||
The amounts recorded in the balance sheet (carrying amount) and the estimated fair values of financial instruments at September 30, 2013 and December 31, 2012 consisted of the following: | ||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||
Amount | Value | Amount | Value | |||||||||||||||
(DOLLARS IN THOUSANDS) | ||||||||||||||||||
Cash and cash equivalents (1) | $ | 343,149 | $ | 343,149 | $ | 324,422 | $ | 324,422 | ||||||||||
Credit facilities and bank overdrafts (2) | 144 | 144 | 297,147 | 297,147 | ||||||||||||||
Long-term debt: (3) | ||||||||||||||||||
Senior notes - 2007 | 500,000 | 597,687 | 500,000 | 634,000 | ||||||||||||||
Senior notes - 2006 | 125,000 | 140,676 | 225,000 | 248,000 | ||||||||||||||
Senior notes - 2013 | 299,736 | 283,458 | — | — | ||||||||||||||
-1 | The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments. | |||||||||||||||||
-2 | The carrying amount of our credit facilities and bank overdrafts approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments. | |||||||||||||||||
-3 | The fair value of our long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on our own credit risk. | |||||||||||||||||
Derivative Instruments Notional Amount Outstanding | ' | |||||||||||||||||
The following table shows the notional amount of the Company’s derivative instruments outstanding as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||
(DOLLARS IN THOUSANDS) | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Foreign currency contracts | $ | 267,100 | $ | 143,483 | ||||||||||||||
Interest rate swaps | $ | 375,000 | $ | 100,000 | ||||||||||||||
Derivative Instruments Measured at Fair Value | ' | |||||||||||||||||
The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected in the Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||
(DOLLARS IN THOUSANDS) | Fair Value of | Fair Value of | Total Fair | |||||||||||||||
Derivatives | Derivatives Not | Value | ||||||||||||||||
Designated as | Designated as | |||||||||||||||||
Hedging | Hedging | |||||||||||||||||
Instruments | Instruments | |||||||||||||||||
Derivative assets (a) | ||||||||||||||||||
Foreign currency contracts | $ | 493 | $ | 3,688 | $ | 4,181 | ||||||||||||
Interest rate swaps | 1,151 | — | 1,151 | |||||||||||||||
$ | 1,644 | $ | 3,688 | $ | 5,332 | |||||||||||||
Derivative liabilities (b) | ||||||||||||||||||
Foreign currency contracts | $ | 4,582 | $ | 4,095 | $ | 8,677 | ||||||||||||
31-Dec-12 | ||||||||||||||||||
(DOLLARS IN THOUSANDS) | Fair Value of | Fair Value of | Total Fair | |||||||||||||||
Derivatives | Derivatives Not | Value | ||||||||||||||||
Designated as | Designated as | |||||||||||||||||
Hedging | Hedging | |||||||||||||||||
Instruments | Instruments | |||||||||||||||||
Derivative assets (a) | ||||||||||||||||||
Foreign currency contracts | $ | 676 | $ | 2,535 | $ | 3,211 | ||||||||||||
Interest rate swaps | 328 | — | 328 | |||||||||||||||
$ | 1,004 | $ | 2,535 | $ | 3,539 | |||||||||||||
Derivative liabilities (b) | ||||||||||||||||||
Foreign currency contracts | $ | 5,251 | $ | 278 | $ | 5,529 | ||||||||||||
(a) | Derivative assets are recorded to Prepaid expenses and other current assets in the Consolidated Balance Sheet. | |||||||||||||||||
(b) | Derivative liabilities are recorded as Other current liabilities in the Consolidated Balance Sheet. | |||||||||||||||||
Derivative Instruments Which Were Not Designated as Hedging Instruments | ' | |||||||||||||||||
The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Amount of (Loss) Gain | Location of (Loss) Gain | ||||||||||||||||
Recognized in Income | ||||||||||||||||||
on Derivative | ||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Foreign currency contracts | $ | (4,821 | ) | $ | (1,073 | ) | Other (income) expense, net | |||||||||||
Derivatives Not Designated as Hedging Instruments | Amount of (Loss) Gain | Location of (Loss) Gain | ||||||||||||||||
Recognized in Income on | Recognized in Income | |||||||||||||||||
Derivative | on Derivative | |||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Foreign currency contracts | $ | 7,686 | $ | 5,010 | Other (income) expense, net | |||||||||||||
Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments | ' | |||||||||||||||||
The following table shows the effect of the Company’s derivative instruments designated as cash flow and net investment hedging instruments in the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||
Amount of (Loss) Gain | Location of (Loss) Gain | Amount of (Loss) Gain | ||||||||||||||||
Recognized in OCI on | Reclassified from AOCI into | Reclassified from | ||||||||||||||||
Derivative (Effective | Income (Effective Portion) | Accumulated OCI into | ||||||||||||||||
Portion) | Income (Effective | |||||||||||||||||
Portion) | ||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||
Cross currency swap (1) | $ | — | $ | 404 | Other (income) expense, net | $ | — | $ | (719 | ) | ||||||||
Foreign currency contracts | (1,926 | ) | (4,351 | ) | Cost of goods sold | (1,172 | ) | 1,720 | ||||||||||
Interest rate swaps (2) | 69 | — | Interest expense | (69 | ) | — | ||||||||||||
Derivatives in Net Investment Hedging Relationships: | ||||||||||||||||||
Foreign currency contracts | (2,295 | ) | (381 | ) | N/A | — | — | |||||||||||
Total | $ | (4,152 | ) | $ | (4,328 | ) | $ | (1,241 | ) | $ | 1,001 | |||||||
Amount of (Loss) Gain | Location of (Loss) Gain | Amount of (Loss) Gain | ||||||||||||||||
Recognized in OCI on | Reclassified from AOCI into | Reclassified from | ||||||||||||||||
Derivative (Effective | Income (Effective Portion) | Accumulated OCI into | ||||||||||||||||
Portion) | Income (Effective | |||||||||||||||||
Portion) | ||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||
Cross currency swap (1) | $ | — | $ | 1,437 | Other (income) expense, net | $ | (333 | ) | $ | (2,093 | ) | |||||||
Foreign currency contracts | (1,606 | ) | (3,028 | ) | Cost of goods sold | 390 | 2,680 | |||||||||||
Interest rate swaps (2) | (2,598 | ) | — | Interest expense | (137 | ) | — | |||||||||||
Derivatives in Net Investment Hedging Relationships: | ||||||||||||||||||
Foreign currency contracts | (653 | ) | (68 | ) | N/A | — | — | |||||||||||
Total | $ | (4,857 | ) | $ | (1,659 | ) | $ | (80 | ) | $ | 587 | |||||||
-1 | Ten year swap executed in 2003. | |||||||||||||||||
-2 | Interest rate swaps were entered into as pre-issuance hedges for the $300 million bond offering. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
The following tables present changes in the accumulated balances for each component of other comprehensive income, including current period other comprehensive income and reclassifications out of accumulated other comprehensive income: | ||||||||||||||||
Foreign | (Losses) Gains on | Pension and | Total | |||||||||||||
Currency | Derivatives | Postretirement | ||||||||||||||
Translation | Qualifying as | Liability | ||||||||||||||
Adjustments | Hedges | Adjustment | ||||||||||||||
(DOLLARS IN THOUSANDS) | ||||||||||||||||
Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2012 | $ | (93,722 | ) | $ | (218 | ) | $ | (309,685 | ) | $ | (403,625 | ) | ||||
OCI before reclassifications | (11,118 | ) | (4,241 | ) | — | (15,359 | ) | |||||||||
Amounts reclassified from AOCI | — | 80 | 15,346 | 15,426 | ||||||||||||
Net current period other comprehensive income (loss) | (11,118 | ) | (4,161 | ) | 15,346 | 67 | ||||||||||
Accumulated other comprehensive (loss) income, net of tax, as of September 30, 2013 | $ | (104,840 | ) | $ | (4,379 | ) | $ | (294,339 | ) | $ | (403,558 | ) | ||||
Foreign | (Losses) Gains on | Pension and | Total | |||||||||||||
Currency | Derivatives | Postretirement | ||||||||||||||
Translation | Qualifying as | Liability | ||||||||||||||
Adjustments | Hedges | Adjustment | ||||||||||||||
(DOLLARS IN THOUSANDS) | ||||||||||||||||
Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2011 | $ | (111,409 | ) | $ | 4,237 | $ | (268,137 | ) | $ | (375,309 | ) | |||||
OCI before reclassifications | 2,169 | (919 | ) | — | 1,250 | |||||||||||
Amounts reclassified from AOCI | — | (587 | ) | 12,949 | 12,362 | |||||||||||
Net current period other comprehensive income (loss) | 2,169 | (1,506 | ) | 12,949 | 13,612 | |||||||||||
Accumulated other comprehensive (loss) income, net of tax, as of September 30, 2012 | $ | (109,240 | ) | $ | 2,731 | $ | (255,188 | ) | $ | (361,697 | ) | |||||
Reclassifications of Accumulated Other Comprehensive Income to Consolidated Statement of Comprehensive Income | ' | |||||||||||||||
The following table provides details about reclassifications out of accumulated other comprehensive income to the Consolidated Statement of Comprehensive Income: | ||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | Affected Line Item in the | ||||||||||||||
Consolidated Statement | ||||||||||||||||
of Comprehensive Income | ||||||||||||||||
(DOLLARS IN THOUSANDS) | ||||||||||||||||
(Losses) gains on derivatives qualifying as hedges | ||||||||||||||||
Cross currency swap | $ | (333 | ) | $ | (2,093 | ) | Other (income) expense, net | |||||||||
Foreign currency contracts | 538 | 3,697 | Cost of goods sold | |||||||||||||
Interest rate swaps | (137 | ) | — | Interest expense | ||||||||||||
(148 | ) | (1,017 | ) | Provision for income taxes | ||||||||||||
$ | (80 | ) | $ | 587 | Total, net of income taxes | |||||||||||
(Losses) gains on pension and postretirement liability adjustments | ||||||||||||||||
Settlements / Curtailments | $ | (110 | ) | $ | (874 | ) | (a) | |||||||||
Prior service cost | 3,295 | 3,163 | (a) | |||||||||||||
Actuarial losses | (25,879 | ) | (21,628 | ) | (a) | |||||||||||
7,348 | 6,390 | Provision for income taxes | ||||||||||||||
$ | (15,346 | ) | $ | (12,949 | ) | Total, net of income taxes | ||||||||||
(a) | The amortization of prior service cost and actuarial loss is included in the computation of net periodic benefit cost. Refer to Note 9 to the Consolidated Financial Statements - Employee Benefits for additional information regarding net periodic benefit cost. |
Consolidated_Financial_Stateme2
Consolidated Financial Statements - Additional Information (Detail) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | ' | ' | ' |
Proceeds from termination of life insurance contracts | $793,000 | $5,327,000 | ' |
Capitalized interest | ' | 4,900,000 | ' |
Increase (decrease) in retirement liabilities | ' | ' | -10,600,000 |
Increase (decrease) in deferred income taxes (non-current) | ' | ' | -3,500,000 |
Increase (decrease) in other current liabilities | ' | ' | 7,200,000 |
Increase (decrease) in deferred income taxes (current) | ' | ' | $100,000 |
Net_Income_Per_Share_Reconcili
Net Income Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Net Income Per Share (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Basic (shares) | 81,437 | 81,246 | 81,349 | 81,241 |
Assumed dilution under stock plans (shares) | 606 | 652 | 610 | 743 |
Diluted (shares) | 82,043 | 81,898 | 81,959 | 81,984 |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Stock options and stock settled appreciation rights (SSAR's) excluded from calculation of diluted shares | ' | 132,200 | ' | 0 |
Purchased Restricted Stock outstanding as percentage of common stock | ' | ' | 0.70% | 0.60% |
Net income allocated to PRS | $0.60 | $0.10 | $1.90 | $1.20 |
Maximum [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Difference amount between basic and diluted net income per share | $0.01 | $0.01 | $0.01 | $0.01 |
Restructuring_and_Other_Charge2
Restructuring and Other Charges, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Positions | Positions | Georgia [Member] | Minimum [Member] | Maximum [Member] | Strategic Initiative [Member] | Strategic Initiative [Member] | |||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company announced that it intends to close its fragrance ingredients manufacturing facility in Augusta, date | ' | ' | ' | ' | ' | ' | 'July 2014 | ' | ' | ' | ' |
Restructuring, expected charges | ' | ' | ' | ' | ' | ' | ' | $16,000,000 | $21,000,000 | ' | ' |
Restructuring, accelerated depreciation of fixed assets | 2,200,000 | 800,000 | ' | ' | 3,000,000 | ' | ' | 10,000,000 | 12,000,000 | ' | ' |
Restructuring, personnel-related costs | 2,100,000 | ' | ' | 9,800,000 | ' | ' | ' | 3,000,000 | 4,000,000 | ' | ' |
Restructuring, plant shutdown and other related costs | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | 5,000,000 | ' | ' |
Restructuring charge | 0 | 2,900,000 | 0 | ' | 2,105,000 | 1,668,000 | ' | ' | ' | 0 | ' |
Expected number of positions eliminated | 43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimation on future cash expenditures | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | 9,000,000 | ' | ' |
Number of positions eliminated | ' | ' | ' | 72 | ' | ' | ' | ' | ' | ' | ' |
Increase in restructuring and other expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,700,000 |
Restructuring_and_Other_Charge3
Restructuring and Other Charges, Net - Changes in Employee-Related Restructuring Liabilities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Accelerated Depreciation | $2,200 | $800 | ' | $3,000 | ' |
Beginning Balance | ' | ' | ' | 3,149 | ' |
Additional charges, net | 0 | 2,900 | 0 | 2,105 | 1,668 |
Additional charges, net | ' | ' | ' | 5,105 | ' |
Restructuring Reserve, Settled without Cash | ' | ' | ' | -3,000 | ' |
Payments and other costs | ' | ' | ' | -2,794 | ' |
Ending Balance | 2,460 | ' | ' | 2,460 | ' |
Fragrance Ingredients Rationalization [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 0 | ' |
Additional charges, net | ' | ' | ' | 2,105 | ' |
Payments and other costs | ' | ' | ' | -28 | ' |
Ending Balance | 2,077 | ' | ' | 2,077 | ' |
Strategic Initiative [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 3,149 | ' |
Additional charges, net | ' | ' | ' | 0 | ' |
Payments and other costs | ' | ' | ' | -2,766 | ' |
Ending Balance | $383 | ' | ' | $383 | ' |
Other_Intangible_Assets_Net_Sc
Other Intangible Assets, Net - Schedule of Other Intangible Assets, Net (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Gross carrying value | $165,406 | $165,406 |
Accumulated amortization | -133,272 | -128,718 |
Total | $32,134 | $36,688 |
Other_Intangible_Assets_Net_Ad
Other Intangible Assets, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expense | $1.50 | $1.50 | $4.60 | $4.60 |
Estimated annual amortization, 2013 | 6.1 | ' | 6.1 | ' |
Estimated annual amortization, 2014 | 4.7 | ' | 4.7 | ' |
Estimated annual amortization, 2015 | 4.7 | ' | 4.7 | ' |
Estimated annual amortization, 2016 | 4.7 | ' | 4.7 | ' |
Estimated annual amortization, 2017 | 4.7 | ' | 4.7 | ' |
Estimated Annual Amortization, 2018 | $4.60 | ' | $4.60 | ' |
Borrowings_Components_of_Debt_
Borrowings - Components of Debt (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Total debt | $933,608 | $1,031,175 |
Less: Current portion of long-term debt | -144 | -150,071 |
Total long-term debt | 933,464 | 881,104 |
Senior Notes In Two Thousand Seven [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Rate | 6.40% | ' |
Credit facilities | 500,000 | 500,000 |
Senior Notes In Two Thousand Seven [Member] | Minimum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturities | '2017 | ' |
Senior Notes In Two Thousand Seven [Member] | Maximum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturities | '2027 | ' |
Senior Notes In Two Thousand Six [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Rate | 6.10% | ' |
Maturities | '2016 | ' |
Credit facilities | 125,000 | 225,000 |
Senior Notes In Two Thousand Thirteen [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Rate | 3.20% | ' |
Maturities | '2023 | ' |
Credit facilities | 299,736 | ' |
Credit facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maturities | '2016 | ' |
Credit facilities | 0 | 296,748 |
Bank overdrafts and other [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Bank overdrafts and other | 1,295 | 399 |
Deferred realized gains on interest rate swaps [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Deferred realized gains on interest rate swaps | $7,577 | $9,028 |
Borrowings_Additional_Informat
Borrowings - Additional Information (Detail) (USD $) | 0 Months Ended | ||
Apr. 26, 2013 | Apr. 04, 2013 | Jul. 12, 2013 | |
3.20% Senior Notes [Member] | Senior Unsecured Notes 2006 [Member] | ||
Senior Notes In Two Thousand Thirteen [Member] | |||
Schedule Of Borrowings [Line Items] | ' | ' | ' |
Senior Notes | ' | $300,000,000 | ' |
Interest rate of debt | ' | 3.20% | ' |
Senior Notes discount | ' | 300,000 | ' |
Proceeds related to the issuance of Senior Notes | ' | 297,800,000 | ' |
Underwriting discount | ' | 1,900,000 | ' |
Other deferred financing costs | ' | 900,000 | ' |
Senior Notes interest payable description | ' | 'interest payable on May 1 and November 1 of each year | ' |
Principal amount due date | ' | 1-May-23 | ' |
Notice to holders of the Senior Notes | ' | 'Upon 30 days’ notice to holders of the Senior Notes - 2013, the Company may redeem the Senior Notes - 2013 for cash in whole | ' |
Redemptions of the Senior Notes | ' | 'redemptions of the Senior Notes - 2013 on or after February 1, 2023 | ' |
Repurchase price of principal amount of Senior Notes in percentage | ' | 101.00% | ' |
Company full amount repaid on outstanding under the credit facility | 283,100,000 | ' | ' |
Repayment of debt | ' | ' | $100,000,000 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | EUR (€) | USD ($) | USD ($) | Spanish tax settlement [Member] | Spanish tax settlement [Member] | Spanish tax settlement [Member] | Spanish tax settlement [Member] | Spanish tax withholding [Member] | Corporate restructuring [Member] | Other liabilities [Member] | Other current liabilities [Member] | 2004-2010 [Member] | 2004-2010 [Member] | 2004-2010 [Member] | 2004-2010 [Member] | 2004-2010 [Member] | 2004-2010 [Member] | 2002-2003 [Member] | 2002-2003 [Member] | 2002-2003 [Member] | 2002-2003 [Member] | 2002-2003 [Member] | 2002-2003 [Member] | 2002-2003 [Member] | 1995-2001 [Member] | 1995-2001 [Member] | 1995-2001 [Member] | 1995-2001 [Member] | 1995-2001 [Member] | 1995-2001 [Member] | 2002-2011 [Member] | 2007-2012 [Member] | 2007-2012 [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Spanish tax settlement [Member] | Spanish tax settlement [Member] | Spanish tax settlement [Member] | Spanish tax settlement [Member] | Spanish tax settlement [Member] | USD ($) | USD ($) | EUR (€) | Spanish tax settlement [Member] | Spanish tax settlement [Member] | Minimum [Member] | Maximum [Member] | USD ($) | USD ($) | EUR (€) | EUR (€) | Minimum [Member] | Maximum [Member] | Spanish tax settlement [Member] | Minimum [Member] | Maximum [Member] | |||||||||
USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | |||||||||||||||||||||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits that would impact effective tax rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25.30 | $4.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in accrual for interest and penalties | 6.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest and penalties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | 0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments pursuant to Spanish tax settlement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.9 | 1.5 | 105.5 | 105.5 | 84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Overall Spanish tax settlement | ' | ' | ' | 72.4 | ' | ' | ' | ' | ' | ' | ' | ' | 56 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in liabilities, uncertain tax positions | ' | ' | ' | 16.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax examination, years under examination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2002 | '2003 | ' | ' | ' | ' | '1995 | '2001 | ' | '2007 | '2012 |
Assessment imposed | 23.3 | 17.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | 1.8 | 28.6 | 22.4 | ' | ' | 12.8 | 6 | 4.4 | 9.8 | ' | ' | ' | ' | ' |
Income tax payment related to tax assessment subsequent to current period | 4 | 3.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank guarantees needed to be posted to proceed with tax appeals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | 1.8 | ' | ' | ' | ' | ' | 10.3 | 7.6 | ' | ' | ' | ' | ' | ' |
Charges associated with issues in 2002-2003 cases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partial offset adjustment to prior accruals | ' | ' | 3.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
After tax expense due to the recognition of out-of-period tax adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for uncertain tax positions | 30.9 | ' | ' | ' | ' | ' | ' | ' | 3.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.3 | 3.2 | ' | ' | ' | 7.2 | ' | ' |
Effective tax rate | ' | ' | ' | ' | 26.10% | 86.60% | 27.40% | 47.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional tax provision recorded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax charge associated withholding tax cases | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Compensation_Plans_Stock
Stock Compensation Plans - Stock-Based Compensation Expense and Related Tax Benefits (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $5,864 | $4,870 | $21,996 | $17,713 |
Less: tax benefit | -1,735 | -1,511 | -6,756 | -5,546 |
Total stock-based compensation expense, after tax | 4,129 | 3,359 | 15,240 | 12,167 |
Equity-based awards [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 4,869 | 4,091 | 18,919 | 15,363 |
Liability-based awards [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $995 | $779 | $3,077 | $2,350 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Number of segments | ' | ' | 2 | ' |
US | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales | $171 | $171 | $504 | $506 |
Foreign Countries | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net sales | $571 | $538 | $1,724 | $1,635 |
Sales [Member] | Foreign Countries | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Maximum percentage of total consolidated net sales attributed to any non-U.S. country | ' | ' | 8.00% | ' |
Segment_Information_Reportable
Segment Information - Reportable Segment Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net sales: | ' | ' | ' | ' | ' |
Net sales | $742,256,000 | ' | $708,955,000 | $2,227,727,000 | $2,140,888,000 |
Segment profit: | ' | ' | ' | ' | ' |
Restructuring and other charges, net | 0 | -2,900,000 | 0 | -2,105,000 | -1,668,000 |
Operational improvement initiative costs | -2,568,000 | ' | 0 | -4,761,000 | 0 |
Operating profit | 141,529,000 | ' | 134,175,000 | 421,530,000 | 387,389,000 |
Interest expense | -11,625,000 | ' | -9,907,000 | -35,637,000 | -31,330,000 |
Other income, net | 4,080,000 | ' | -2,424,000 | 16,359,000 | -1,333,000 |
Income before taxes | 133,984,000 | ' | 121,844,000 | 402,252,000 | 354,726,000 |
Gain (Loss) on Disposition of Assets | ' | ' | ' | 16,100,000 | ' |
Flavors [Member] | ' | ' | ' | ' | ' |
Net sales: | ' | ' | ' | ' | ' |
Net sales | 349,385,000 | ' | 340,674,000 | 1,079,786,000 | 1,051,932,000 |
Segment profit: | ' | ' | ' | ' | ' |
Operating profit | 81,101,000 | ' | 76,145,000 | 254,055,000 | 236,458,000 |
Fragrances [Member] | ' | ' | ' | ' | ' |
Net sales: | ' | ' | ' | ' | ' |
Net sales | 392,871,000 | ' | 368,281,000 | 1,147,941,000 | 1,088,956,000 |
Segment profit: | ' | ' | ' | ' | ' |
Operating profit | 81,309,000 | ' | 65,331,000 | 221,577,000 | 185,049,000 |
Global expenses [Member] | ' | ' | ' | ' | ' |
Segment profit: | ' | ' | ' | ' | ' |
Operating profit | ($18,313,000) | ' | ($7,301,000) | ($47,236,000) | ($32,450,000) |
Employee_Benefits_Pension_and_
Employee Benefits - Pension and Other Defined Contribution Retirement Plan Expenses (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Loss due to settlements and special terminations | ' | ' | $0 | $874 |
U.S. Pension Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost for benefits earned | 881 | 938 | 2,643 | 2,815 |
Interest cost on projected benefit obligation | 5,740 | 6,002 | 17,222 | 18,005 |
Expected return on plan assets | -6,557 | -6,041 | -19,671 | -18,124 |
Net amortization and deferrals | 5,868 | 4,913 | 17,606 | 14,738 |
Net periodic benefit cost | 5,932 | 5,812 | 17,800 | 17,434 |
Defined contribution and other retirement plans | 1,585 | 1,651 | 5,531 | 5,515 |
Total expense | 7,517 | 7,463 | 23,331 | 22,949 |
Non-U.S. Pension Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost for benefits earned | 4,086 | 3,064 | 12,256 | 9,422 |
Interest cost on projected benefit obligation | 7,718 | 7,560 | 23,204 | 23,144 |
Expected return on plan assets | -11,859 | -9,813 | -35,653 | -32,701 |
Net amortization and deferrals | 2,315 | 1,589 | 6,967 | 4,810 |
Loss due to settlements and special terminations | 35 | 0 | 110 | 874 |
Net periodic benefit cost | 2,295 | 2,400 | 6,884 | 5,549 |
Defined contribution and other retirement plans | 1,548 | 1,150 | 2,838 | 3,479 |
Total expense | $3,843 | $3,550 | $9,722 | $9,028 |
Employee_Benefits_Additional_I
Employee Benefits - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Qualified U.S. Pension Plans [Member] | Non-Qualified U.S. Pension Plan [Member] | Non-Qualified U.S. Pension Plan [Member] | Non-U.S. Pension Plans [Member] | Non-U.S. Pension Plans [Member] | Postretirement Benefit Plan [Member] | Postretirement Benefit Plan [Member] | Minimum [Member] | Maximum [Member] | |
Non-U.S. Pension Plans [Member] | Non-U.S. Pension Plans [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected contribution to the plan | ' | ' | ' | ' | ' | ' | ' | $18 | $28 |
Contribution to the plans | 30 | 1 | 3.1 | 4.3 | 12.8 | ' | ' | ' | ' |
Expected contribution to the plan | ' | ' | ' | ' | ' | ' | 5 | ' | ' |
Contribution to other postretirement plans | ' | ' | ' | ' | ' | $1.20 | $3.90 | ' | ' |
Employee_Benefits_Postretireme
Employee Benefits - Postretirement Benefits Other Than Pension Expenses (Detail) (Postretirement Benefit Plan [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Postretirement Benefit Plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost for benefits earned | $362 | $341 | $1,086 | $1,023 |
Interest cost on projected benefit obligation | 1,168 | 1,447 | 3,504 | 4,341 |
Net amortization and deferrals | 663 | 361 | 1,989 | 1,083 |
Net periodic benefit cost | $867 | $1,427 | $2,601 | $4,281 |
Financial_Instruments_Carrying
Financial Instruments - Carrying Amount and Estimated Fair Values of Financial Instruments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Reported Value Measurement [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | $343,149 | $324,422 |
Credit facilities and bank overdrafts | 144 | 297,147 |
Senior Notes, Noncurrent | ' | 0 |
Reported Value Measurement [Member] | Senior Notes In Two Thousand Seven [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior Notes, Noncurrent | 500,000 | 500,000 |
Reported Value Measurement [Member] | Senior Notes In Two Thousand Six [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior Notes, Noncurrent | 125,000 | 225,000 |
Reported Value Measurement [Member] | Senior Notes In Two Thousand Thirteen [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior Notes, Noncurrent | 299,736 | ' |
Estimate of Fair Value Measurement [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents, at fair value | 343,149 | 324,422 |
Credit facilities and bank overdrafts | 144 | 297,147 |
Estimate of Fair Value Measurement [Member] | Senior Notes In Two Thousand Seven [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior Notes, Noncurrent | 597,687 | 634,000 |
Estimate of Fair Value Measurement [Member] | Senior Notes In Two Thousand Six [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior Notes, Noncurrent | 140,676 | 248,000 |
Estimate of Fair Value Measurement [Member] | Senior Notes In Two Thousand Thirteen [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior Notes, Noncurrent | $283,458 | $0 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Jul. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 |
swap | swap | |||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' |
Number of interest rate swap agreements | 2 | ' | 3 | ' |
Loss incurred on termination of interest rate swaps | ' | $2.70 | ' | ' |
Derivative losses included in AOCI | ' | ' | ' | $2 |
Forward currency contracts [Member] | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' |
Number of multiple forward currency contracts matured | ' | ' | ' | 4 |
Derivatives in Cash Flow Hedging Relationships [Member] | Cross currency swap [Member] | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' |
Derivative instrument maturity period (years) | ' | ' | ' | '10 years |
Financial_Instruments_Derivati
Financial Instruments - Derivative Instruments Notional Amount Outstanding (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Foreign currency contracts [Member] | ' | ' |
Schedule Of Information By Major Category Of Credit Derivatives Contracts [Line Items] | ' | ' |
Derivative instruments outstanding | $267,100 | $143,483 |
Interest rate swaps [Member] | ' | ' |
Schedule Of Information By Major Category Of Credit Derivatives Contracts [Line Items] | ' | ' |
Derivative instruments outstanding | $375,000 | $100,000 |
Financial_Instruments_Derivati1
Financial Instruments - Derivative Instruments Measured at Fair Value (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Total Fair Value, Derivative Assets | $5,332 | $3,539 |
Foreign currency contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Fair Value, Derivative Assets | 4,181 | 3,211 |
Total Fair Value, Derivative Liabilities | 8,677 | 5,529 |
Interest rate swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Fair Value, Derivative Assets | 1,151 | 328 |
Fair Value of Derivatives Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Fair Value, Derivative Assets | 1,644 | 1,004 |
Fair Value of Derivatives Designated as Hedging Instruments [Member] | Foreign currency contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Fair Value, Derivative Assets | 493 | 676 |
Total Fair Value, Derivative Liabilities | 4,582 | 5,251 |
Fair Value of Derivatives Designated as Hedging Instruments [Member] | Interest rate swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Fair Value, Derivative Assets | 1,151 | 328 |
Fair Value of Derivatives Not Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Fair Value, Derivative Assets | 3,688 | 2,535 |
Fair Value of Derivatives Not Designated as Hedging Instruments [Member] | Foreign currency contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Fair Value, Derivative Assets | 3,688 | 2,535 |
Total Fair Value, Derivative Liabilities | 4,095 | 278 |
Fair Value of Derivatives Not Designated as Hedging Instruments [Member] | Interest rate swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total Fair Value, Derivative Assets | $0 | $0 |
Financial_Instruments_Derivati2
Financial Instruments - Derivative Instruments Which Were Not Designated as Hedging Instruments (Detail) (Fair Value of Derivatives Not Designated as Hedging Instruments [Member], Foreign currency contracts [Member], Other income (expense), net [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value of Derivatives Not Designated as Hedging Instruments [Member] | Foreign currency contracts [Member] | Other income (expense), net [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of (Loss) Gain Recognized in Income on Derivative | ($4,821) | ($1,073) | $7,686 | $5,010 |
Financial_Instruments_Derivati3
Financial Instruments - Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | ($4,152) | ($4,328) | ($4,857) | ($1,659) |
Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) | -1,241 | 1,001 | -80 | 587 |
Cross currency swap [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | 0 | 404 | 0 | 1,437 |
Cross currency swap [Member] | Other income (expense), net [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | -719 | -333 | -2,093 |
Foreign currency contracts [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | -1,926 | -4,351 | -1,606 | -3,028 |
Foreign currency contracts [Member] | Derivatives in Net Investment Hedging Relationships [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | -2,295 | -381 | -653 | -68 |
Foreign currency contracts [Member] | Cost of goods sold [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) | -1,172 | 1,720 | 390 | 2,680 |
Interest rate swaps [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | 69 | 0 | -2,598 | 0 |
Interest rate swaps [Member] | Interest expense [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) | ($69) | $0 | ($137) | $0 |
Financial_Instruments_Derivati4
Financial Instruments - Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments (Parenthetical) (Detail) (Derivatives in Cash Flow Hedging Relationships [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Cross currency swap [Member] | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' |
Derivative instrument maturity period (years) | '10 years |
Interest rate swaps [Member] | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' |
Senior Notes | 300,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Foreign Currency Translation Adjustments, Beginning balance | ' | ' | ($93,722) | ($111,409) |
OCI before reclassifications, Foreign Currency Translation Adjustments | ' | ' | -11,118 | 2,169 |
Net current period other comprehensive income (loss), Foreign Currency Translation Adjustments | 5,707 | 26,228 | -11,118 | 2,169 |
Foreign Currency Translation Adjustments, Ending balance | -104,840 | -109,240 | -104,840 | -109,240 |
(Losses) Gains on Derivatives Qualifying as Hedges, Beginning balance | ' | ' | -218 | 4,237 |
OCI before reclassifications, (Losses) Gains on Derivatives Qualifying as Hedges | ' | ' | -4,241 | -919 |
Amounts reclassified from AOCI, (Losses) Gains on Derivatives Qualifying as Hedges | ' | ' | 80 | -587 |
Net current period other comprehensive income (loss), (Losses) Gains on Derivatives Qualifying as Hedges | -1,859 | -3,940 | -4,161 | -1,506 |
(Losses) Gains on Derivatives Qualifying as Hedges, Ending balance | -4,379 | 2,731 | -4,379 | 2,731 |
Pension and Postretirement Liability Adjustment, Beginning balance | ' | ' | -309,685 | -268,137 |
OCI before reclassifications, Pension and Postretirement Liability Adjustment | ' | ' | 0 | 0 |
Amounts reclassified from AOCI, Pension and Postretirement Liability Adjustment | ' | ' | 15,346 | 12,949 |
Net current period other comprehensive income (loss), Pension and Postretirement Liability Adjustment | 5,126 | 4,178 | 15,346 | 12,949 |
Pension and Postretirement Liability Adjustment, Ending balance | -294,339 | -255,188 | -294,339 | -255,188 |
Beginning balance, Total | ' | ' | -403,625 | -375,309 |
OCI before reclassifications, Total | ' | ' | -15,359 | 1,250 |
Amounts reclassified from AOCI, Total | ' | ' | 15,426 | 12,362 |
Net current period other comprehensive income (loss), Total | ' | ' | 67 | 13,612 |
Ending balance, Total | ($403,558) | ($361,697) | ($403,558) | ($361,697) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Reclassifications of Accumulated Other Comprehensive Income to Consolidated Statement of Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
(Losses) gains on derivatives qualifying as hedges, net of tax | ' | ' | ($80) | $587 |
Settlements/Curtailments | ' | ' | -110 | -874 |
Prior service cost | ' | ' | 3,295 | 3,163 |
Actuarial losses | ' | ' | -25,879 | -21,628 |
(Losses) gains on pension and postretirement liability adjustments, net of tax | -5,126 | -4,178 | -15,346 | -12,949 |
Other income (expense), net [Member] | Cross currency swap [Member] | ' | ' | ' | ' |
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
(Losses) gains on derivatives qualifying as hedges | ' | ' | -333 | -2,093 |
Cost of goods sold [Member] | Foreign currency contracts [Member] | ' | ' | ' | ' |
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
(Losses) gains on derivatives qualifying as hedges | ' | ' | 538 | 3,697 |
Interest expense [Member] | Interest rate swaps [Member] | ' | ' | ' | ' |
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
(Losses) gains on derivatives qualifying as hedges | ' | ' | -137 | 0 |
Provision for income taxes [Member] | ' | ' | ' | ' |
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Provision for income taxes for (Losses) gains on derivatives qualifying as hedges | ' | ' | -148 | -1,017 |
Provision for income taxes for gains (Losses) on pension and postretirement liability adjustments | ' | ' | $7,348 | $6,390 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | Bank guarantees and standby letters of credit [Member] | Bank guarantees [Member] | Bank guarantees [Member] | Pledged assets [Member] | Tax Contingencies [Member] | |
property | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | |
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Bank guarantees and letters of credit outstanding | ' | $57,900,000 | ' | ' | ' | ' |
The amount of bank guarantees related to government requirements on income tax disputes | ' | ' | 12,700,000 | 9,400,000 | ' | ' |
Bank guarantees related to appeals on income tax and indirect tax cases | 23,300,000 | ' | 12,900,000 | ' | ' | ' |
The amount of pledged assets, principally PP&E to cover income tax and indirect tax assessments | ' | ' | ' | ' | 18,200,000 | ' |
Available lines of credit | 86,000,000 | ' | ' | ' | ' | ' |
Duration as potentially responsible party, years | '20 years | ' | ' | ' | ' | ' |
Number of facilities under potentially responsible party investigation | 9 | ' | ' | ' | ' | ' |
Estimation of possible loss | 5,000,000 | ' | ' | ' | ' | 13,000,000 |
Bank guarantees and pledged assets to pursue defenses related to other contingencies | 41,500,000 | ' | ' | ' | ' | ' |
Estimate range of possible loss from other contingencies, minimum | 2,000,000 | ' | ' | ' | ' | ' |
Estimate range of possible loss from other contingencies, maximum | $20,000,000 | ' | ' | ' | ' | ' |