☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended: |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from | to |
Wisconsin | 39-0561070 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Registrant’s telephone number, including area code: | (414) 271-6755 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common stock, par value $0.10 per share | SXT | New York Stock Exchange LLC |
Large Accelerated Filer ☒ | Accelerated Filer ☐ | Non-Accelerated Filer ☐ |
Smaller Reporting Company ☐ | Emerging Growth Company ☐ |
Class | Outstanding at | |
Common Stock, par value $0.10 per share |
Page No. | |||
PART I. FINANCIAL INFORMATION: | |||
Item 1. | Financial Statements: | ||
1 | |||
2 | |||
3 | |||
4 | |||
5 | |||
6 | |||
Item 2. | 16 | ||
Item 3. | 23 | ||
Item 4. | 23 | ||
PART II. OTHER INFORMATION: | |||
Item 1. | 23 | ||
Item 1A. | 23 | ||
Item 2. | 23 | ||
Item 6. | 23 | ||
24 | |||
25 |
PART I. | FINANCIAL INFORMATION |
ITEM 1. | FINANCIAL STATEMENTS |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Revenue | $ | 371,706 | $ | 335,827 | $ | 727,227 | $ | 695,529 | $ | 361,076 | $ | 344,287 | $ | 1,088,303 | $ | 1,039,816 | ||||||||||||||||
Cost of products sold | 240,703 | 224,233 | 471,378 | 468,322 | 239,318 | 229,216 | 710,696 | 697,538 | ||||||||||||||||||||||||
Selling and administrative expenses | 75,759 | 75,841 | 147,816 | 144,557 | 74,265 | 68,113 | 222,081 | 212,670 | ||||||||||||||||||||||||
Operating income | 55,244 | 35,753 | 108,033 | 82,650 | 47,493 | 46,958 | 155,526 | 129,608 | ||||||||||||||||||||||||
Interest expense | 3,083 | 3,322 | 6,076 | 6,755 | 3,672 | 3,037 | 9,748 | 9,792 | ||||||||||||||||||||||||
Earnings before income taxes | 52,161 | 32,431 | 101,957 | 75,895 | 43,821 | 43,921 | 145,778 | 119,816 | ||||||||||||||||||||||||
Income taxes | 13,514 | 6,495 | 26,239 | 18,291 | 7,773 | 10,009 | 34,012 | 28,300 | ||||||||||||||||||||||||
Net earnings | $ | 38,647 | $ | 25,936 | $ | 75,718 | $ | 57,604 | $ | 36,048 | $ | 33,912 | $ | 111,766 | $ | 91,516 | ||||||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 41,893 | 42,135 | 41,879 | 42,199 | 41,896 | 42,024 | 41,885 | 42,140 | ||||||||||||||||||||||||
Diluted | 42,208 | 42,267 | 42,178 | 42,328 | 42,242 | 42,206 | 42,199 | 42,287 | ||||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.92 | $ | 0.62 | $ | 1.81 | $ | 1.37 | $ | 0.86 | $ | 0.81 | $ | 2.67 | $ | 2.17 | ||||||||||||||||
Diluted | $ | 0.92 | $ | 0.61 | $ | 1.80 | $ | 1.36 | $ | 0.85 | $ | 0.80 | $ | 2.65 | $ | 2.16 | ||||||||||||||||
Dividends declared per common share | $ | 0.41 | $ | 0.39 | $ | 0.82 | $ | 0.78 | $ | 0.41 | $ | 0.39 | $ | 1.23 | $ | 1.17 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Comprehensive income | $ | 10,340 | $ | 44,245 | $ | 47,174 | $ | 60,774 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Comprehensive income | $ | 8,997 | $ | 18,680 | $ | 56,171 | $ | 79,454 |
September 30, 2022 (Unaudited) | December 31, 2021 | |||||||||||||||
Assets | June 30, 2022 (Unaudited) | December 31, 2021 | ||||||||||||||
Current Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 25,271 | $ | 25,740 | $ | 46,579 | $ | 25,740 | ||||||||
Trade accounts receivable | 295,948 | 261,121 | 287,197 | 261,121 | ||||||||||||
Inventories | 452,161 | 411,635 | 501,382 | 411,635 | ||||||||||||
Prepaid expenses and other current assets | 48,146 | 42,657 | 45,582 | 42,657 | ||||||||||||
Total current assets | 821,526 | 741,153 | 880,740 | 741,153 | ||||||||||||
Other assets | 100,863 | 92,952 | 100,277 | 92,952 | ||||||||||||
Deferred tax assets | 19,620 | 29,901 | 12,912 | 29,901 | ||||||||||||
Intangible assets, net | 13,962 | 14,975 | 14,042 | 14,975 | ||||||||||||
Goodwill | 403,576 | 420,034 | 390,798 | 420,034 | ||||||||||||
Property, Plant, and Equipment: | ||||||||||||||||
Land | 29,725 | 31,028 | 28,641 | 31,028 | ||||||||||||
Buildings | 309,609 | 315,207 | 304,928 | 315,207 | ||||||||||||
Machinery and equipment | 710,294 | 715,344 | 705,029 | 715,344 | ||||||||||||
Construction in progress | 49,389 | 32,801 | 55,896 | 32,801 | ||||||||||||
1,099,017 | 1,094,380 | 1,094,494 | 1,094,380 | |||||||||||||
Less accumulated depreciation | (655,342 | ) | (647,902 | ) | (654,055 | ) | (647,902 | ) | ||||||||
443,675 | 446,478 | 440,439 | 446,478 | |||||||||||||
Total assets | $ | 1,803,222 | $ | 1,745,493 | $ | 1,839,208 | $ | 1,745,493 | ||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||
Current Liabilities: | ||||||||||||||||
Trade accounts payable | $ | 140,776 | $ | 125,519 | $ | 132,904 | $ | 125,519 | ||||||||
Accrued salaries, wages, and withholdings from employees | 35,755 | 40,939 | 40,918 | 40,939 | ||||||||||||
Other accrued expenses | 47,772 | 46,292 | 54,283 | 46,292 | ||||||||||||
Income taxes | 12,989 | 11,016 | 5,373 | 11,016 | ||||||||||||
Short-term borrowings | 26,624 | 8,539 | 21,947 | 8,539 | ||||||||||||
Total current liabilities | 263,916 | 232,305 | 255,425 | 232,305 | ||||||||||||
Deferred tax liabilities | 15,538 | 14,349 | 16,489 | 14,349 | ||||||||||||
Other liabilities | 37,893 | 28,829 | 37,736 | 28,829 | ||||||||||||
Accrued employee and retiree benefits | 28,193 | 28,579 | 27,854 | 28,579 | ||||||||||||
Long-term debt | 498,715 | 503,006 | 547,190 | 503,006 | ||||||||||||
Shareholders’ Equity: | ||||||||||||||||
Common stock | 5,396 | 5,396 | 5,396 | 5,396 | ||||||||||||
Additional paid-in capital | 116,596 | 111,352 | 120,381 | 111,352 | ||||||||||||
Earnings reinvested in the business | 1,672,000 | 1,630,713 | 1,690,813 | 1,630,713 | ||||||||||||
Treasury stock, at cost | (631,853 | ) | (634,408 | ) | (631,853 | ) | (634,408 | ) | ||||||||
Accumulated other comprehensive loss | (203,172 | ) | (174,628 | ) | (230,223 | ) | (174,628 | ) | ||||||||
Total shareholders’ equity | 958,967 | 938,425 | 954,514 | 938,425 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 1,803,222 | $ | 1,745,493 | $ | 1,839,208 | $ | 1,745,493 |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net earnings | $ | 75,718 | $ | 57,604 | $ | 111,766 | $ | 91,516 | ||||||||
Adjustments to arrive at net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 26,180 | 25,817 | 39,262 | 38,828 | ||||||||||||
Share-based compensation expense | 8,691 | 4,188 | 12,476 | 6,431 | ||||||||||||
Net (gain) loss on assets | (38 | ) | 206 | |||||||||||||
Net loss on assets | 283 | 203 | ||||||||||||||
Loss on divestitures and other charges | 0 | 13,511 | - | 13,774 | ||||||||||||
Deferred income taxes | 12,244 | 1,702 | 20,465 | 3,793 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Trade accounts receivable | (41,592 | ) | (26,902 | ) | (39,520 | ) | (35,290 | ) | ||||||||
Inventories | (51,768 | ) | 19,357 | (112,021 | ) | (15,898 | ) | |||||||||
Prepaid expenses and other assets | (25,919 | ) | (15,573 | ) | (39,598 | ) | (15,016 | ) | ||||||||
Accounts payable and other accrued expenses | 20,501 | 9,632 | 24,110 | 24,007 | ||||||||||||
Accrued salaries, wages, and withholdings from employees | (4,188 | ) | (3,944 | ) | 1,819 | 1,763 | ||||||||||
Income taxes | 2,765 | 1,953 | (4,342 | ) | (1,155 | ) | ||||||||||
Other liabilities | 199 | 1,710 | 198 | 3,192 | ||||||||||||
Net cash provided by operating activities | 22,793 | 89,261 | 14,898 | 116,148 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Acquisition of property, plant, and equipment | (32,468 | ) | (25,550 | ) | (51,703 | ) | (37,608 | ) | ||||||||
Proceeds from sale of assets | 92 | 169 | 94 | 201 | ||||||||||||
Proceeds from divestiture of businesses | 0 | 36,255 | - | 36,790 | ||||||||||||
Acquisition of new business | (1,048 | ) | (13,875 | ) | ||||||||||||
Other investing activities | 1,571 | (254 | ) | 947 | 1,348 | |||||||||||
Net cash (used in) provided by investing activities | (30,805 | ) | 10,620 | |||||||||||||
Net cash used in investing activities | (51,710 | ) | (13,144 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from additional borrowings | 69,424 | 25,997 | 187,715 | 55,589 | ||||||||||||
Debt payments | (31,547 | ) | (62,578 | ) | (87,657 | ) | (67,534 | ) | ||||||||
Purchase of treasury stock | 0 | (22,507 | ) | - | (31,467 | ) | ||||||||||
Dividends paid | (34,446 | ) | (33,027 | ) | (51,681 | ) | (49,468 | ) | ||||||||
Other financing activities | (2,056 | ) | (582 | ) | (2,056 | ) | (582 | ) | ||||||||
Net cash provided by (used in) financing activities | 1,375 | (92,697 | ) | 46,321 | (93,462 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | 6,168 | 1,352 | 11,330 | (1,373 | ) | |||||||||||
Net (decrease) increase in cash and cash equivalents | (469 | ) | 8,536 | |||||||||||||
Net increase in cash and cash equivalents | 20,839 | 8,169 | ||||||||||||||
Cash and cash equivalents at beginning of period | 25,740 | 24,770 | 25,740 | 24,770 | ||||||||||||
Cash and cash equivalents at end of period | $ | 25,271 | $ | 33,306 | $ | 46,579 | $ | 32,939 |
Common | Additional Paid-In | Earnings Reinvested in the | Treasury Stock | Accumulated Other Comprehensive | Total | Common | Additional Paid-In | Earnings Reinvested in the | Treasury Stock | Accumulated Other Comprehensive | Total | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | Stock | Capital | Business | Shares | Amount | Income (Loss) | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2022 | $ | 5,396 | $ | 112,973 | $ | 1,650,588 | 12,068,868 | $ | (632,382 | ) | $ | (174,865 | ) | $ | 961,710 | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended Sept. 30, 2022 | Stock | Capital | Business | Shares | Amount | Income (Loss) | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | 5,396 | $ | 116,596 | $ | 1,672,000 | 12,058,773 | $ | (631,853 | ) | $ | (203,172 | ) | $ | 958,967 | |||||||||||||||||||||||||||||||||||||||||
Net earnings | 0 | 0 | 38,647 | - | 0 | 0 | 38,647 | - | - | 36,048 | - | - | - | 36,048 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | 0 | 0 | 0 | - | 0 | (28,307 | ) | (28,307 | ) | - | - | - | - | - | (27,051 | ) | (27,051 | ) | ||||||||||||||||||||||||||||||||||||||
Cash dividends paid – $0.41 per share | 0 | 0 | (17,235 | ) | - | 0 | 0 | (17,235 | ) | - | - | (17,235 | ) | - | - | - | (17,235 | ) | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | 0 | 4,528 | 0 | - | 0 | 0 | 4,528 | - | 3,785 | - | - | - | - | 3,785 | ||||||||||||||||||||||||||||||||||||||||||
Non-vested stock issued upon vesting | 0 | (761 | ) | 0 | (14,523 | ) | 761 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Other | 0 | (144 | ) | 0 | 4,428 | (232 | ) | 0 | (376 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | 5,396 | $ | 116,596 | $ | 1,672,000 | 12,058,773 | $ | (631,853 | ) | $ | (203,172 | ) | $ | 958,967 | |||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2022 | $ | 5,396 | $ | 120,381 | $ | 1,690,813 | 12,058,773 | $ | (631,853 | ) | $ | (230,223 | ) | $ | 954,514 |
Balances at March 31, 2021 | $ | 5,396 | $ | 104,725 | $ | 1,593,795 | 11,776,654 | $ | (604,040 | ) | $ | (174,230 | ) | $ | 925,646 | |||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | $ | 5,396 | $ | 105,967 | $ | 1,603,239 | 11,892,497 | $ | (614,404 | ) | $ | (155,921 | ) | $ | 944,277 | |||||||||||||||||||||||||||||||||||||||||
Net earnings | 0 | 0 | 25,936 | - | 0 | 0 | 25,936 | - | - | 33,912 | - | - | - | 33,912 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 0 | 0 | 0 | - | 0 | 18,309 | 18,309 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | - | - | (15,232 | ) | (15,232 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid – $0.39 per share | 0 | 0 | (16,492 | ) | - | 0 | 0 | (16,492 | ) | - | - | (16,441 | ) | - | - | - | (16,441 | ) | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | 0 | 2,075 | 0 | - | 0 | 0 | 2,075 | - | 2,243 | - | - | - | - | 2,243 | ||||||||||||||||||||||||||||||||||||||||||
Non-vested stock issued upon vesting | 0 | (701 | ) | 0 | (13,666 | ) | 701 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 125,150 | (10,842 | ) | 0 | (10,842 | ) | - | - | - | 105,600 | (9,367 | ) | - | (9,367 | ) | ||||||||||||||||||||||||||||||||||||||
Other | 0 | (132 | ) | 0 | 4,359 | (223 | ) | 0 | (355 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | $ | 5,396 | $ | 105,967 | $ | 1,603,239 | 11,892,497 | $ | (614,404 | ) | $ | (155,921 | ) | $ | 944,277 | |||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2021 | $ | 5,396 | $ | 108,210 | $ | 1,620,710 | 11,998,097 | $ | (623,771 | ) | $ | (171,153 | ) | $ | 939,392 |
Balances at December 31, 2021 | $ | 5,396 | $ | 111,352 | $ | 1,630,713 | 12,107,549 | $ | (634,408 | ) | $ | (174,628 | ) | $ | 938,425 | $ | 5,396 | $ | 111,352 | $ | 1,630,713 | 12,107,549 | $ | (634,408 | ) | $ | (174,628 | ) | $ | 938,425 | ||||||||||||||||||||||||||
Net earnings | 0 | 0 | 75,718 | - | 0 | 0 | 75,718 | - | - | 111,766 | - | - | - | 111,766 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | 0 | 0 | 0 | - | 0 | (28,544 | ) | (28,544 | ) | - | - | - | - | - | (55,595 | ) | (55,595 | ) | ||||||||||||||||||||||||||||||||||||||
Cash dividends paid – $0.82 per share | 0 | 0 | (34,446 | ) | - | 0 | 0 | (34,446 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid – $1.23 per share | - | - | (51,681 | ) | - | - | - | (51,681 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 0 | 8,691 | 0 | - | 0 | 0 | 8,691 | - | 12,476 | - | - | - | - | 12,476 | ||||||||||||||||||||||||||||||||||||||||||
Non-vested stock issued upon vesting | 0 | (3,239 | ) | 0 | (61,821 | ) | 3,239 | 0 | 0 | - | (3,239 | ) | - | (61,821 | ) | 3,239 | - | - | ||||||||||||||||||||||||||||||||||||||
Benefit plans | 0 | 560 | 0 | (11,786 | ) | 618 | 0 | 1,178 | - | 560 | - | (11,786 | ) | 618 | - | 1,178 | ||||||||||||||||||||||||||||||||||||||||
Other | 0 | (768 | ) | 15 | 24,831 | (1,302 | ) | 0 | (2,055 | ) | - | (768 | ) | 15 | 24,831 | (1,302 | ) | - | (2,055 | ) | ||||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | 5,396 | $ | 116,596 | $ | 1,672,000 | 12,058,773 | $ | (631,853 | ) | $ | (203,172 | ) | $ | 958,967 | |||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2022 | $ | 5,396 | $ | 120,381 | $ | 1,690,813 | 12,058,773 | $ | (631,853 | ) | $ | (230,223 | ) | $ | 954,514 |
Balances at December 31, 2020 | $ | 5,396 | $ | 102,909 | $ | 1,578,662 | 11,647,627 | $ | (593,540 | ) | $ | (159,091 | ) | $ | 934,336 | $ | 5,396 | $ | 102,909 | $ | 1,578,662 | 11,647,627 | $ | (593,540 | ) | $ | (159,091 | ) | $ | 934,336 | ||||||||||||||||||||||||||
Net earnings | 0 | 0 | 57,604 | - | 0 | 0 | 57,604 | - | - | 91,516 | - | - | - | 91,516 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 0 | 0 | 0 | - | 0 | 3,170 | 3,170 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid – $0.78 per share | 0 | 0 | (33,027 | ) | - | 0 | 0 | (33,027 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | - | - | (12,062 | ) | (12,062 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid – $1.17 per share | - | - | (49,468 | ) | - | - | - | (49,468 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 0 | 4,188 | 0 | - | 0 | 0 | 4,188 | - | 6,431 | - | - | - | - | 6,431 | ||||||||||||||||||||||||||||||||||||||||||
Non-vested stock issued upon vesting | 0 | (1,264 | ) | 0 | (24,711 | ) | 1,264 | 0 | 0 | - | (1,264 | ) | - | (24,711 | ) | 1,264 | - | - | ||||||||||||||||||||||||||||||||||||||
Benefit plans | 0 | 338 | 0 | (14,791 | ) | 756 | 0 | 1,094 | - | 338 | - | (14,791 | ) | 756 | - | 1,094 | ||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | 0 | 0 | 0 | 276,993 | (22,507 | ) | 0 | (22,507 | ) | - | - | - | 382,593 | (31,874 | ) | - | (31,874 | ) | ||||||||||||||||||||||||||||||||||||||
Other | 0 | (204 | ) | 0 | 7,379 | (377 | ) | 0 | (581 | ) | - | (204 | ) | - | 7,379 | (377 | ) | - | (581 | ) | ||||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | $ | 5,396 | $ | 105,967 | $ | 1,603,239 | 11,892,497 | $ | (614,404 | ) | $ | (155,921 | ) | $ | 944,277 | |||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2021 | $ | 5,396 | $ | 108,210 | $ | 1,620,710 | 11,998,097 | $ | (623,771 | ) | $ | (171,153 | ) | $ | 939,392 |
1. | Accounting Policies |
2. | Divestitures |
(In thousands) | Yogurt Fruit Preparations | Fragrances | Inks | Corporate & Other | Total | |||||||||||||||
Non-cash impairment charges – Selling and administrative expenses | $ | 0 | $ | 1,062 | $ | 0 | $ | 0 | $ | 1,062 | ||||||||||
Non-cash charges – Cost of products sold | 0 | 3 | 0 | 0 | 3 | |||||||||||||||
Reclassification of foreign currency translation and related items – Selling and administrative expenses | 0 | 10,193 | 0 | 0 | 10,193 | |||||||||||||||
Other costs - Selling and administrative expenses(1) | 264 | 202 | (98 | ) | 62 | 430 | ||||||||||||||
Total | $ | 264 | $ | 11,460 | $ | (98 | ) | $ | 62 | $ | 11,688 |
(In thousands) | Yogurt Fruit Preparations | Fragrances | Inks | Corporate & Other | Total | |||||||||||||||
Other costs - Selling and administrative expenses(1) | $ | 102 | $ | 149 | $ | (157 | ) | $ | 147 | $ | 241 |
(1) | Other costs – Selling and administrative expenses include employee separation costs, professional services, accelerated depreciation, and other related |
(In thousands) | Yogurt Fruit Preparations | Fragrances | Inks | Corporate & Other | Total | Yogurt Fruit Preparations | Fragrances | Inks | Corporate & Other | Total | ||||||||||||||||||||||||||||||
Non-cash impairment charges – Selling and administrative expenses | $ | 0 | $ | 1,062 | $ | 0 | $ | 0 | $ | 1,062 | $ | - | $ | 1,062 | $ | - | $ | - | $ | 1,062 | ||||||||||||||||||||
Non-cash charges – Cost of products sold | 0 | 37 | (9 | ) | 0 | 28 | - | 37 | (9 | ) | - | 28 | ||||||||||||||||||||||||||||
Reclassification of foreign currency translation and related items – Selling and administrative expenses | 0 | 10,193 | 0 | 0 | 10,193 | - | 10,193 | - | - | 10,193 | ||||||||||||||||||||||||||||||
Other costs - Selling and administrative expenses(1) | 529 | 1,216 | (205 | ) | 437 | 1,977 | 631 | 1,365 | (362 | ) | 584 | 2,218 | ||||||||||||||||||||||||||||
Total | $ | 529 | $ | 12,508 | $ | (214 | ) | $ | 437 | $ | 13,260 | $ | 631 | $ | 12,657 | $ | (371 | ) | $ | 584 | $ | 13,501 |
(1) | Other costs – Selling and administrative expenses include environmental remediation, employee separation costs, professional services, accelerated depreciation, and other related costs. |
3. | Operational Improvement Plan |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||||||||||||||
Employee separation costs | $ | 3 | $ | 26 | $ | (24 | ) | $ | 5 | $ | 1 | $ | (120 | ) | $ | (4 | ) | $ | (123 | ) | ||||||||||||
Other income(1) | 0 | (3,624 | ) | 0 | (3,624 | ) | ||||||||||||||||||||||||||
Other costs(2) | 0 | 125 | 0 | 125 | ||||||||||||||||||||||||||||
Other costs(1) | - | 605 | 1 | 606 | ||||||||||||||||||||||||||||
Total expense (income) | $ | 3 | $ | (3,473 | ) | $ | (24 | ) | $ | (3,494 | ) | $ | 1 | $ | 485 | $ | (3 | ) | $ | 483 |
(1) |
Other costs include professional services, accelerated depreciation, and other related costs. |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||||||||||||||
Employee separation costs | $ | (16 | ) | $ | 80 | $ | (68 | ) | $ | (4 | ) | $ | (15 | ) | $ | (40 | ) | $ | (72 | ) | $ | (127 | ) | |||||||||
Other income(1) | 0 | (3,624 | ) | 0 | (3,624 | ) | - | (3,624 | ) | - | (3,624 | ) | ||||||||||||||||||||
Other costs(2) | 0 | 1,134 | 1 | 1,135 | - | 1,739 | 2 | 1,741 | ||||||||||||||||||||||||
Total expense (income) | $ | (16 | ) | $ | (2,410 | ) | $ | (67 | ) | $ | (2,493 | ) | $ | (15 | ) | $ | (1,925 | ) | $ | (70 | ) | $ | (2,010 | ) |
(1) | Other income includes cash received for the early termination of a lease less associated expenses. |
(2) | Other costs include professional services, accelerated depreciation, and other related costs. |
4. | Acquisition |
5. | Trade Accounts Receivable |
(In thousands) Three Months Ended June 30, 2022 | Allowance for Doubtful Accounts | |||||||
Balance at March 31, 2022 | $ | 4,912 | ||||||
(In thousands) Three Months Ended September 30, 2022 | Allowance for Doubtful Accounts | |||||||
Balance at June 30, 2022 | $ | 4,494 | ||||||
Provision for expected credit losses | 547 | 51 | ||||||
Accounts written off | (729 | ) | (33 | ) | ||||
Translation and other activity | (236 | ) | (105 | ) | ||||
Balance at June 30, 2022 | $ | 4,494 | ||||||
Balance at September 30, 2022 | $ | 4,407 |
(In thousands) Three Months Ended June 30, 2021 | Allowance for Doubtful Accounts | |||||||
Balance at March 31, 2021 | $ | 3,614 | ||||||
(In thousands) Three Months Ended September 30, 2021 | Allowance for Doubtful Accounts | |||||||
Balance at June 30, 2021 | $ | 3,749 | ||||||
Provision for expected credit losses | 138 | 186 | ||||||
Accounts written off | (20 | ) | (41 | ) | ||||
Translation and other activity | 17 | (65 | ) | |||||
Balance at June 30, 2021 | $ | 3,749 | ||||||
Balance at September 30, 2021 | $ | 3,829 |
(In thousands) Six Months Ended June 30, 2022 | Allowance for Doubtful Accounts | |||||||
(In thousands) Nine Months Ended September 30, 2022 | Allowance for Doubtful Accounts | |||||||
Balance at December 31, 2021 | $ | 4,877 | $ | 4,877 | ||||
Provision for expected credit losses | 832 | 883 | ||||||
Accounts written off | (1,096 | ) | (1,129 | ) | ||||
Translation and other activity | (119 | ) | (224 | ) | ||||
Balance at June 30, 2022 | $ | 4,494 | ||||||
Balance at September 30, 2022 | $ | 4,407 |
(In thousands) Six Months Ended June 30, 2021 | Allowance for Doubtful Accounts | |||||||
(In thousands) Nine Months Ended September 30, 2021 | Allowance for Doubtful Accounts | |||||||
Balance at December 31, 2020 | $ | 3,891 | $ | 3,891 | ||||
Provision for expected credit losses | 294 | 480 | ||||||
Accounts written off | (373 | ) | (414 | ) | ||||
Translation and other activity | (63 | ) | (128 | ) | ||||
Balance at June 30, 2021 | $ | 3,749 | ||||||
Balance at September 30, 2021 | $ | 3,829 |
6. | Inventories |
7. | Debt |
8. | Fair Value |
Segment Information |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Corporate & Other | Consolidated | Flavors & Extracts | Color | Asia Pacific | Corporate & Other | Consolidated | ||||||||||||||||||||||||||||||
Three months ended June 30, 2022: | ||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2022: | ||||||||||||||||||||||||||||||||||||||||
Revenue from external customers | $ | 182,415 | $ | 152,070 | $ | 37,221 | $ | 0 | $ | 371,706 | $ | 181,397 | $ | 144,570 | $ | 35,109 | $ | - | $ | 361,076 | ||||||||||||||||||||
Intersegment revenue | 6,922 | 4,198 | 107 | 0 | 11,227 | 5,649 | 6,899 | 112 | - | 12,660 | ||||||||||||||||||||||||||||||
Total revenue | $ | 189,337 | $ | 156,268 | $ | 37,328 | $ | 0 | $ | 382,933 | $ | 187,046 | $ | 151,469 | $ | 35,221 | $ | - | $ | 373,736 | ||||||||||||||||||||
Operating income (loss) | $ | 30,013 | $ | 31,178 | $ | 7,721 | $ | (13,668 | ) | $ | 55,244 | $ | 26,337 | $ | 28,200 | $ | 6,952 | $ | (13,996 | ) | $ | 47,493 | ||||||||||||||||||
Interest expense | 0 | 0 | 0 | 3,083 | 3,083 | - | - | - | 3,672 | 3,672 | ||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 30,013 | $ | 31,178 | $ | 7,721 | $ | (16,751 | ) | $ | 52,161 | $ | 26,337 | $ | 28,200 | $ | 6,952 | $ | (17,668 | ) | $ | 43,821 | ||||||||||||||||||
Three months ended June 30, 2021: | ||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2021: | ||||||||||||||||||||||||||||||||||||||||
Revenue from external customers | $ | 174,699 | $ | 128,830 | $ | 32,298 | $ | 0 | $ | 335,827 | $ | 175,690 | $ | 135,395 | $ | 33,202 | $ | - | $ | 344,287 | ||||||||||||||||||||
Intersegment revenue | 4,702 | 4,377 | 19 | 0 | 9,098 | 5,977 | 3,844 | 240 | - | 10,061 | ||||||||||||||||||||||||||||||
Total revenue | $ | 179,401 | $ | 133,207 | $ | 32,317 | $ | 0 | $ | 344,925 | $ | 181,667 | $ | 139,239 | $ | 33,442 | $ | - | $ | 354,348 | ||||||||||||||||||||
Operating income (loss) | $ | 24,536 | $ | 25,615 | $ | 5,793 | $ | (20,191 | ) | $ | 35,753 | $ | 25,164 | $ | 27,253 | $ | 6,601 | $ | (12,060 | ) | $ | 46,958 | ||||||||||||||||||
Interest expense | 0 | 0 | 0 | 3,322 | 3,322 | - | - | - | 3,037 | 3,037 | ||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 24,536 | $ | 25,615 | $ | 5,793 | $ | (23,513 | ) | $ | 32,431 | $ | 25,164 | $ | 27,253 | $ | 6,601 | $ | (15,097 | ) | $ | 43,921 |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Corporate & Other | Consolidated | Flavors & Extracts | Color | Asia Pacific | Corporate & Other | Consolidated | ||||||||||||||||||||||||||||||
Six months ended June 30, 2022: | ||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2022: | ||||||||||||||||||||||||||||||||||||||||
Revenue from external customers | $ | 357,617 | $ | 295,998 | $ | 73,612 | $ | 0 | $ | 727,227 | $ | 539,014 | $ | 440,568 | $ | 108,721 | $ | - | $ | 1,088,303 | ||||||||||||||||||||
Intersegment revenue | 14,447 | 8,708 | 181 | 0 | 23,336 | 20,096 | 15,607 | 293 | - | 35,996 | ||||||||||||||||||||||||||||||
Total revenue | $ | 372,064 | $ | 304,706 | $ | 73,793 | $ | 0 | $ | 750,563 | $ | 559,110 | $ | 456,175 | $ | 109,014 | $ | - | $ | 1,124,299 | ||||||||||||||||||||
Operating income (loss) | $ | 57,592 | $ | 61,835 | $ | 15,925 | $ | (27,319 | ) | $ | 108,033 | $ | 83,929 | $ | 90,035 | $ | 22,877 | $ | (41,315 | ) | $ | 155,526 | ||||||||||||||||||
Interest expense | 0 | 0 | 0 | 6,076 | 6,076 | - | - | - | 9,748 | 9,748 | ||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 57,592 | $ | 61,835 | $ | 15,925 | $ | (33,395 | ) | $ | 101,957 | $ | 83,929 | $ | 90,035 | $ | 22,877 | $ | (51,063 | ) | $ | 145,778 | ||||||||||||||||||
Six months ended June 30, 2021: | ||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2021: | ||||||||||||||||||||||||||||||||||||||||
Revenue from external customers | $ | 369,360 | $ | 260,031 | $ | 66,138 | $ | 0 | $ | 695,529 | $ | 545,050 | $ | 395,426 | $ | 99,340 | $ | - | $ | 1,039,816 | ||||||||||||||||||||
Intersegment revenue | 10,952 | 8,896 | 19 | 0 | 19,867 | 16,929 | 12,740 | 259 | - | 29,928 | ||||||||||||||||||||||||||||||
Total revenue | $ | 380,312 | $ | 268,927 | $ | 66,157 | $ | 0 | $ | 715,396 | $ | 561,979 | $ | 408,166 | $ | 99,599 | $ | - | $ | 1,069,744 | ||||||||||||||||||||
Operating income (loss) | $ | 51,554 | $ | 52,209 | $ | 12,545 | $ | (33,658 | ) | $ | 82,650 | $ | 76,718 | $ | 79,462 | $ | 19,146 | $ | (45,718 | ) | $ | 129,608 | ||||||||||||||||||
Interest expense | 0 | 0 | 0 | 6,755 | 6,755 | - | - | - | 9,792 | 9,792 | ||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 51,554 | $ | 52,209 | $ | 12,545 | $ | (40,413 | ) | $ | 75,895 | $ | 76,718 | $ | 79,462 | $ | 19,146 | $ | (55,510 | ) | $ | 119,816 |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||
Three months ended June 30, 2022: | ||||||||||||||||
Flavors, Extracts & Flavor Ingredients | $ | 130,578 | $ | - | $ | - | $ | 130,578 | ||||||||
Natural Ingredients | 58,759 | - | - | 58,759 | ||||||||||||
Food & Pharmaceutical Colors | - | 113,784 | - | 113,784 | ||||||||||||
Personal Care | - | 42,116 | - | 42,116 | ||||||||||||
Inks | - | 368 | - | 368 | ||||||||||||
Asia Pacific | - | - | 37,328 | 37,328 | ||||||||||||
Intersegment Revenue | (6,922 | ) | (4,198 | ) | (107 | ) | (11,227 | ) | ||||||||
Total revenue from external customers | $ | 182,415 | $ | 152,070 | $ | 37,221 | $ | 371,706 | ||||||||
Three months ended June 30, 2021: | ||||||||||||||||
Flavors, Extracts & Flavor Ingredients | $ | 117,684 | $ | - | $ | - | $ | 117,684 | ||||||||
Natural Ingredients | 60,302 | - | - | 60,302 | ||||||||||||
Yogurt Fruit Preparations | 1,415 | - | - | 1,415 | ||||||||||||
Food & Pharmaceutical Colors | - | 94,092 | - | 94,092 | ||||||||||||
Personal Care | - | 38,323 | - | 38,323 | ||||||||||||
Inks | - | 792 | - | 792 | ||||||||||||
Asia Pacific | - | - | 32,317 | 32,317 | ||||||||||||
Intersegment Revenue | (4,702 | ) | (4,377 | ) | (19 | ) | (9,098 | ) | ||||||||
Total revenue from external customers | $ | 174,699 | $ | 128,830 | $ | 32,298 | $ | 335,827 |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||||||||||||||
Six months ended June 30, 2022: | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2022: | ||||||||||||||||||||||||||||||||
Flavors, Extracts & Flavor Ingredients | $ | 257,096 | $ | - | $ | - | $ | 257,096 | $ | 123,945 | $ | - | $ | - | $ | 123,945 | ||||||||||||||||
Natural Ingredients | 114,968 | - | - | 114,968 | 63,101 | - | - | 63,101 | ||||||||||||||||||||||||
Food & Pharmaceutical Colors | - | 216,893 | - | 216,893 | - | 111,194 | - | 111,194 | ||||||||||||||||||||||||
Personal Care | - | 86,962 | - | 86,962 | - | 39,689 | - | 39,689 | ||||||||||||||||||||||||
Inks | - | 851 | - | 851 | - | 586 | - | 586 | ||||||||||||||||||||||||
Asia Pacific | - | - | 73,793 | 73,793 | - | - | 35,221 | 35,221 | ||||||||||||||||||||||||
Intersegment Revenue | (14,447 | ) | (8,708 | ) | (181 | ) | (23,336 | ) | (5,649 | ) | (6,899 | ) | (112 | ) | (12,660 | ) | ||||||||||||||||
Total revenue from external customers | $ | 357,617 | $ | 295,998 | $ | 73,612 | $ | 727,227 | $ | 181,397 | $ | 144,570 | $ | 35,109 | $ | 361,076 | ||||||||||||||||
Six months ended June 30, 2021: | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2021: | ||||||||||||||||||||||||||||||||
Flavors, Extracts & Flavor Ingredients | $ | 231,502 | $ | - | $ | - | $ | 231,502 | $ | 116,140 | $ | - | $ | - | $ | 116,140 | ||||||||||||||||
Natural Ingredients | 122,506 | - | - | 122,506 | 64,215 | - | - | 64,215 | ||||||||||||||||||||||||
Fragrances | 22,739 | - | - | 22,739 | ||||||||||||||||||||||||||||
Yogurt Fruit Preparations | 3,565 | - | - | 3,565 | 1,312 | - | - | 1,312 | ||||||||||||||||||||||||
Food & Pharmaceutical Colors | - | 187,877 | - | 187,877 | - | 99,688 | - | 99,688 | ||||||||||||||||||||||||
Personal Care | - | 79,838 | - | 79,838 | - | 39,241 | - | 39,241 | ||||||||||||||||||||||||
Inks | - | 1,212 | - | 1,212 | - | 310 | - | 310 | ||||||||||||||||||||||||
Asia Pacific | - | - | 66,157 | 66,157 | - | - | 33,442 | 33,442 | ||||||||||||||||||||||||
Intersegment Revenue | (10,952 | ) | (8,896 | ) | (19 | ) | (19,867 | ) | (5,977 | ) | (3,844 | ) | (240 | ) | (10,061 | ) | ||||||||||||||||
Total revenue from external customers | $ | 369,360 | $ | 260,031 | $ | 66,138 | $ | 695,529 | $ | 175,690 | $ | 135,395 | $ | 33,202 | $ | 344,287 |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||
Nine months ended September 30, 2022: | ||||||||||||||||
Flavors, Extracts & Flavor Ingredients | $ | 381,041 | $ | - | $ | - | $ | 381,041 | ||||||||
Natural Ingredients | 178,069 | - | - | 178,069 | ||||||||||||
Food & Pharmaceutical Colors | - | 328,087 | - | 328,087 | ||||||||||||
Personal Care | - | 126,651 | - | 126,651 | ||||||||||||
Inks | - | 1,437 | - | 1,437 | ||||||||||||
Asia Pacific | - | - | 109,014 | 109,014 | ||||||||||||
Intersegment Revenue | (20,096 | ) | (15,607 | ) | (293 | ) | (35,996 | ) | ||||||||
Total revenue from external customers | $ | 539,014 | $ | 440,568 | $ | 108,721 | $ | 1,088,303 | ||||||||
Nine months ended September 30, 2021: | ||||||||||||||||
Flavors, Extracts & Flavor Ingredients | $ | 347,642 | $ | - | $ | - | $ | 347,642 | ||||||||
Natural Ingredients | 186,721 | - | - | 186,721 | ||||||||||||
Fragrances | 22,739 | - | - | 22,739 | ||||||||||||
Yogurt Fruit Preparations | 4,877 | - | - | 4,877 | ||||||||||||
Food & Pharmaceutical Colors | - | 287,565 | - | 287,565 | ||||||||||||
Personal Care | - | 119,079 | - | 119,079 | ||||||||||||
Inks | - | 1,522 | - | 1,522 | ||||||||||||
Asia Pacific | - | - | 99,599 | 99,599 | ||||||||||||
Intersegment Revenue | (16,929 | ) | (12,740 | ) | (259 | ) | (29,928 | ) | ||||||||
Total revenue from external customers | $ | 545,050 | $ | 395,426 | $ | 99,340 | $ | 1,039,816 |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||||||||||||||
Three months ended June 30, 2022: | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2022: | ||||||||||||||||||||||||||||||||
North America | $ | 138,885 | $ | 79,360 | $ | 2 | $ | 218,247 | $ | 142,097 | $ | 74,220 | $ | 27 | $ | 216,344 | ||||||||||||||||
Europe | 31,165 | 39,615 | 50 | 70,830 | 26,795 | 34,591 | 44 | 61,430 | ||||||||||||||||||||||||
Asia Pacific | 6,800 | 16,413 | 36,807 | 60,020 | 7,091 | 16,770 | 34,433 | 58,294 | ||||||||||||||||||||||||
Other | 5,565 | 16,682 | 362 | 22,609 | 5,414 | 18,989 | 605 | 25,008 | ||||||||||||||||||||||||
Total revenue from external customers | $ | 182,415 | $ | 152,070 | $ | 37,221 | $ | 371,706 | $ | 181,397 | $ | 144,570 | $ | 35,109 | $ | 361,076 | ||||||||||||||||
Three months ended June 30, 2021: | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2021: | ||||||||||||||||||||||||||||||||
North America | $ | 128,665 | $ | 57,264 | $ | 37 | $ | 185,966 | $ | 131,855 | $ | 67,830 | $ | 5 | $ | 199,690 | ||||||||||||||||
Europe | 32,654 | 37,906 | 54 | 70,614 | 30,241 | 37,004 | 30 | 67,275 | ||||||||||||||||||||||||
Asia Pacific | 8,161 | 18,543 | 31,794 | 58,498 | 6,410 | 14,451 | 32,511 | 53,372 | ||||||||||||||||||||||||
Other | 5,219 | 15,117 | 413 | 20,749 | 7,184 | 16,110 | 656 | 23,950 | ||||||||||||||||||||||||
Total revenue from external customers | $ | 174,699 | $ | 128,830 | $ | 32,298 | $ | 335,827 | $ | 175,690 | $ | 135,395 | $ | 33,202 | $ | 344,287 |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||||||||||||||
Six months ended June 30, 2022: | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2022: | ||||||||||||||||||||||||||||||||
North America | $ | 265,587 | $ | 149,288 | $ | 60 | $ | 414,935 | $ | 407,684 | $ | 223,508 | $ | 87 | $ | 631,279 | ||||||||||||||||
Europe | 63,770 | 81,593 | 131 | 145,494 | 90,565 | 116,184 | 175 | 206,924 | ||||||||||||||||||||||||
Asia Pacific | 16,537 | 32,429 | 70,789 | 119,755 | 23,628 | 49,199 | 105,222 | 178,049 | ||||||||||||||||||||||||
Other | 11,723 | 32,688 | 2,632 | 47,043 | 17,137 | 51,677 | 3,237 | 72,051 | ||||||||||||||||||||||||
Total revenue from external customers | $ | 357,617 | $ | 295,998 | $ | 73,612 | $ | 727,227 | $ | 539,014 | $ | 440,568 | $ | 108,721 | $ | 1,088,303 | ||||||||||||||||
Six months ended June 30, 2021: | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2021: | ||||||||||||||||||||||||||||||||
North America | $ | 258,308 | $ | 120,934 | $ | 62 | $ | 379,304 | $ | 390,163 | $ | 188,764 | $ | 67 | $ | 578,994 | ||||||||||||||||
Europe | 77,222 | 75,184 | 76 | 152,482 | 107,463 | 112,188 | 106 | 219,757 | ||||||||||||||||||||||||
Asia Pacific | 17,878 | 33,381 | 64,352 | 115,611 | 24,288 | 47,832 | 96,863 | 168,983 | ||||||||||||||||||||||||
Other | 15,952 | 30,532 | 1,648 | 48,132 | 23,136 | 46,642 | 2,304 | 72,082 | ||||||||||||||||||||||||
Total revenue from external customers | $ | 369,360 | $ | 260,031 | $ | 66,138 | $ | 695,529 | $ | 545,050 | $ | 395,426 | $ | 99,340 | $ | 1,039,816 |
Retirement Plans |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
Service cost | $ | 407 | $ | 437 | $ | 815 | $ | 873 | $ | 404 | $ | 435 | $ | 1,219 | $ | 1,308 | ||||||||||||||||
Interest cost | 240 | 214 | 484 | 426 | 235 | 212 | 719 | 638 | ||||||||||||||||||||||||
Expected return on plan assets | (199 | ) | (185 | ) | (404 | ) | (369 | ) | (194 | ) | (184 | ) | (598 | ) | (553 | ) | ||||||||||||||||
Recognized actuarial loss | 12 | 69 | 24 | 138 | 12 | 69 | 36 | 207 | ||||||||||||||||||||||||
Total defined benefit expense | $ | 460 | $ | 535 | $ | 919 | $ | 1,068 | $ | 457 | $ | 532 | $ | 1,376 | $ | 1,600 |
Derivative Instruments and Hedging Activity |
Income Taxes |
Accumulated Other Comprehensive Income |
(In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||||||||||||||
Balances at December 31, 2021 | $ | 206 | $ | (353 | ) | $ | (174,481 | ) | $ | (174,628 | ) | $ | 206 | $ | (353 | ) | $ | (174,481 | ) | $ | (174,628 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | 136 | 0 | (28,202 | ) | (28,066 | ) | 516 | - | (55,514 | ) | (54,998 | ) | ||||||||||||||||||||
Amounts reclassified from OCI | (494 | ) | 16 | 0 | (478 | ) | (621 | ) | 24 | - | (597 | ) | ||||||||||||||||||||
Balances at June 30, 2022 | $ | (152 | ) | $ | (337 | ) | $ | (202,683 | ) | $ | (203,172 | ) | ||||||||||||||||||||
Balances at September 30, 2022 | $ | 101 | $ | (329 | ) | $ | (229,995 | ) | $ | (230,223 | ) |
(In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||||||||||||||
Balances at March 31, 2022 | $ | 106 | $ | (345 | ) | $ | (174,626 | ) | $ | (174,865 | ) | |||||||||||||||||||||
Other comprehensive loss before reclassifications | (106 | ) | 0 | (28,057 | ) | (28,163 | ) | |||||||||||||||||||||||||
Balances at June 30, 2022 | $ | (152) | $ | (337 | ) | $ | (202,683 | ) | $ | (203,172 | ) | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 380 | - | (27,312 | ) | (26,932 | ) | ||||||||||||||||||||||||||
Amounts reclassified from OCI | (152 | ) | 8 | 0 | (144 | ) | (127 | ) | 8 | - | (119 | ) | ||||||||||||||||||||
Balances at June 30, 2022 | $ | (152 | ) | $ | (337 | ) | $ | (202,683 | ) | $ | (203,172 | ) | ||||||||||||||||||||
Balances at September 30, 2022 | $ | 101 | $ | (329 | ) | $ | (229,995 | ) | $ | (230,223 | ) |
(In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||||||||||||||
Balances at December 31, 2020 | $ | 749 | $ | (1,965 | ) | $ | (157,875 | ) | $ | (159,091 | ) | $ | 749 | $ | (1,965 | ) | $ | (157,875 | ) | $ | (159,091 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | 844 | 0 | (7,196 | ) | (6,352 | ) | 729 | - | (22,073 | ) | (21,344 | ) | ||||||||||||||||||||
Amounts reclassified from OCI | (776 | ) | 104 | 10,194 | 9,522 | (1,068 | ) | 156 | 10,194 | 9,282 | ||||||||||||||||||||||
Balances at June 30, 2021 | $ | 817 | $ | (1,861 | ) | $ | (154,877 | ) | $ | (155,921 | ) | |||||||||||||||||||||
Balances at September 30, 2021 | $ | 410 | $ | (1,809 | ) | $ | (169,754 | ) | $ | (171,153 | ) |
Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | |||||||||||||||||||||||||||||
Balances at March 31, 2021 | $ | 1,180 | $ | (1,913 | ) | $ | (173,497 | ) | $ | (174,230 | ) | |||||||||||||||||||||
Other comprehensive income before reclassifications | 124 | 0 | 8,427 | 8,551 | ||||||||||||||||||||||||||||
(In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||||||||||||||||||
Balances at June 30, 2021 | $ | 817 | $ | (1,861 | ) | $ | (154,877 | ) | $ | (155,921 | ) | |||||||||||||||||||||
Other comprehensive loss before reclassifications | (115 | ) | - | (14,877 | ) | (14,992 | ) | |||||||||||||||||||||||||
Amounts reclassified from OCI | (487 | ) | 52 | 10,193 | 9,758 | (292 | ) | 52 | - | (240 | ) | |||||||||||||||||||||
Balances at June 30, 2021 | $ | 817 | $ | (1,861 | ) | $ | (154,877 | ) | $ | (155,921 | ) | |||||||||||||||||||||
Balances at September 30, 2021 | $ | 410 | $ | (1,809 | ) | $ | (169,754 | ) | $ | (171,153 | ) |
(1) | Cash Flow Hedges and Pension Items are net of tax. |
Commitments and Contingencies |
Subsequent |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
(In thousands, except per share amounts) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
Revenue (GAAP) | $ | 361,076 | $ | 344,287 | 4.9 | % | $ | 1,088.303 | $ | 1,039,816 | 4.7 | % | ||||||||||||
Revenue of the divested product lines | - | (1,622 | ) | - | (29,399 | ) | ||||||||||||||||||
Adjusted revenue | $ | 361,076 | $ | 342,665 | 5.4 | % | $ | 1,088,303 | $ | 1,010,417 | 7.7 | % | ||||||||||||
Operating Income (GAAP) | $ | 47,493 | $ | 46,958 | 1.1 | % | $ | 155,526 | $ | 129,608 | 20.0 | % | ||||||||||||
Divestiture & other related costs – Cost of products sold | - | - | - | 28 | ||||||||||||||||||||
Divestiture & other related costs – Selling and administrative expenses | - | 241 | - | 13,473 | ||||||||||||||||||||
Operating loss (income) of the divested product lines | - | 70 | - | (2,398 | ) | |||||||||||||||||||
Operational improvement plan – Selling and administrative expenses (income) | - | 483 | - | (2,010 | ) | |||||||||||||||||||
Adjusted operating income | $ | 47,493 | $ | 47,752 | (0.5 | %) | $ | 155,526 | $ | 138,701 | 12.1 | % | ||||||||||||
Net Earnings (GAAP) | $ | 36,048 | $ | 33,912 | 6.3 | % | $ | 111,766 | $ | 91,516 | 22.1 | % | ||||||||||||
Divestiture & other related costs, before tax | - | 241 | - | 13,501 | ||||||||||||||||||||
Tax impact of divestiture & other related costs(1) | - | 1,179 | - | 283 | ||||||||||||||||||||
Net loss (earnings) of the divested product lines, before tax | - | 70 | - | (2,398 | ) | |||||||||||||||||||
Tax impact of the divested product lines(1) | - | (18 | ) | - | 590 | |||||||||||||||||||
Operational improvement plan costs (income), before tax | - | 483 | - | (2,010 | ) | |||||||||||||||||||
Tax impact of operational improvement plan(1) | - | (115 | ) | - | 44 | |||||||||||||||||||
Adjusted net earnings | $ | 36,048 | $ | 35,752 | 0.8 | % | $ | 111,766 | $ | 101,526 | 10.1 | % | ||||||||||||
Diluted earnings per share (GAAP) | $ | 0.85 | $ | 0.80 | 6.3 | % | $ | 2.65 | $ | 2.16 | 22.7 | % | ||||||||||||
Divestiture & other related costs, net of tax | - | 0.03 | - | 0.33 | ||||||||||||||||||||
Results of operations of the divested product lines, net of tax | - | - | - | (0.04 | ) | |||||||||||||||||||
Operational improvement plan costs (income, net of tax | - | 0.01 | - | (0.05 | ) | |||||||||||||||||||
Adjusted diluted earnings per share | $ | 0.85 | $ | 0.85 | 0.0 | % | $ | 2.65 | $ | 2.40 | 10.4 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
(In thousands, except per share amounts) | 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
Revenue (GAAP) | $ | 371,706 | $ | 335,827 | 10.7 | % | $ | 727,227 | $ | 695,529 | 4.6 | % | ||||||||||||
Revenue of the divested product lines | - | (2,207 | ) | - | (27,777 | ) | ||||||||||||||||||
Adjusted revenue | $ | 371,706 | $ | 333,620 | 11.4 | % | $ | 727,227 | $ | 667,752 | 8.9 | % | ||||||||||||
Operating Income (GAAP) | $ | 55,244 | $ | 35,753 | 54.5 | % | $ | 108,033 | $ | 82,650 | 30.7 | % | ||||||||||||
Divestiture & other related costs – Cost of products sold | - | 3 | - | 28 | ||||||||||||||||||||
Divestiture & other related costs – Selling and administrative expenses | - | 11,685 | - | 13,232 | ||||||||||||||||||||
Operating loss (income) of the divested product lines | - | 459 | - | (2,468 | ) | |||||||||||||||||||
Operational improvement plan – Selling and administrative expenses (income) | - | (3,494 | ) | - | (2,493 | ) | ||||||||||||||||||
Adjusted operating income | $ | 55,244 | $ | 44,406 | 24.4 | % | $ | 108,033 | $ | 90,949 | 18.8 | % | ||||||||||||
Net Earnings (GAAP) | $ | 38,647 | $ | 25,936 | 49.0 | % | $ | 75,718 | $ | 57,604 | 31.4 | % | ||||||||||||
Divestiture & other related costs, before tax | - | 11,688 | - | 13,260 | ||||||||||||||||||||
Tax impact of divestiture & other related costs | - | (1,689 | ) | - | (896 | ) | ||||||||||||||||||
Net loss (earnings) of the divested product lines, before tax | - | 459 | - | (2,468 | ) | |||||||||||||||||||
Tax impact of the divested product lines | - | (115 | ) | - | 608 | |||||||||||||||||||
Operational improvement plan income, before tax | - | (3,494 | ) | - | (2,493 | ) | ||||||||||||||||||
Tax impact of operational improvement plan | - | 455 | - | 159 | ||||||||||||||||||||
Adjusted net earnings | $ | 38,647 | $ | 33,240 | 16.3 | % | $ | 75,718 | $ | 65,774 | 15.1 | % | ||||||||||||
Diluted earnings per share (GAAP) | $ | 0.92 | $ | 0.61 | 50.8 | % | $ | 1.80 | $ | 1.36 | 32.4 | % | ||||||||||||
Divestiture & other related costs, net of tax | - | 0.24 | - | 0.29 | ||||||||||||||||||||
Results of operations of the divested product lines, net of tax | - | 0.01 | - | (0.04 | ) | |||||||||||||||||||
Operational improvement plan income, net of tax | - | (0.07 | ) | - | (0.06 | ) | ||||||||||||||||||
Adjusted diluted earnings per share | $ | 0.92 | $ | 0.79 | 16.5 | % | $ | 1.80 | $ | 1.55 | 16.1 | % |
(1) | Tax impact adjustments were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates. |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Total | Foreign Exchange Rates | Adjustments(1) | Adjusted Local Currency | Total | Foreign Exchange Rates | Adjustments(1) | Adjusted Local Currency | Total | Foreign Exchange Rates | Adjustments(1) | Adjusted Local Currency | Total | Foreign Exchange Rates | Adjustments(1) | Adjusted Local Currency | |||||||||||||||||||||||||||||||||||||||||||||||
Flavors & Extracts | 5.5 | % | (2.5 | %) | (0.8 | %) | 8.8 | % | (2.2 | %) | (2.1 | %) | (7.1 | %) | 7.0 | % | 3.0 | % | (2.9 | %) | (0.8 | %) | 6.7 | % | (0.5 | %) | (2.4 | %) | (5.0 | %) | 6.9 | % | |||||||||||||||||||||||||||||||
Color | 17.3 | % | (3.9 | %) | (0.7 | %) | 21.9 | % | 13.3 | % | (2.9 | %) | (0.6 | %) | 16.8 | % | 8.8 | % | (5.5 | %) | (0.3 | %) | 14.6 | % | 11.8 | % | (3.8 | %) | (0.4 | %) | 16.0 | % | |||||||||||||||||||||||||||||||
Asia Pacific | 15.5 | % | (7.5 | %) | 0.0 | % | 23.0 | % | 11.5 | % | (6.6 | %) | (0.5 | %) | 18.6 | % | 5.3 | % | (9.2 | %) | 0.0 | % | 14.5 | % | 9.5 | % | (7.4 | %) | (0.3 | %) | 17.2 | % | |||||||||||||||||||||||||||||||
Total Revenue | 10.7 | % | (3.4 | %) | (0.8 | %) | 14.9 | % | 4.6 | % | (2.8 | %) | (4.2 | %) | 11.6 | % | 4.9 | % | (4.4 | %) | (0.6 | %) | 9.9 | % | 4.7 | % | (3.3 | %) | (3.0 | %) | 11.0 | % | |||||||||||||||||||||||||||||||
Operating Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Flavors & Extracts | 22.3 | % | (1.3 | %) | (0.3 | %) | 23.9 | % | 11.7 | % | (1.2 | %) | (6.4 | %) | 19.3 | % | 4.7 | % | (1.1 | %) | 0.2 | % | 5.6 | % | 9.4 | % | (1.2 | %) | (4.0 | %) | 14.6 | % | |||||||||||||||||||||||||||||||
Color | 21.7 | % | (4.6 | %) | 2.4 | % | 23.9 | % | 18.4 | % | (3.6 | %) | 1.3 | % | 20.7 | % | 3.5 | % | (7.4 | %) | 0.0 | % | 10.9 | % | 13.3 | % | (4.9 | %) | 0.9 | % | 17.3 | % | |||||||||||||||||||||||||||||||
Asia Pacific | 33.3 | % | (10.0 | %) | 0.0 | % | 43.3 | % | 26.9 | % | (8.9 | %) | (0.9 | %) | 36.7 | % | 5.3 | % | (11.0 | %) | 0.0 | % | 16.3 | % | 19.5 | % | (9.6 | %) | (0.5 | %) | 29.6 | % | |||||||||||||||||||||||||||||||
Corporate & Other | (32.3 | %) | 0.0 | % | (46.3 | %) | 14.0 | % | (18.8 | %) | 0.0 | % | (38.2 | %) | 19.4 | % | 16.0 | % | (0.1 | %) | (7.4 | %) | 23.5 | % | (9.6 | %) | 0.0 | % | (30.4 | %) | 20.8 | % | |||||||||||||||||||||||||||||||
Total Operating Income | 54.5 | % | (5.8 | %) | 31.2 | % | 29.1 | % | 30.7 | % | (4.3 | %) | 12.5 | % | 22.5 | % | 1.1 | % | (6.5 | %) | 1.8 | % | 5.8 | % | 20.0 | % | (5.1 | %) | 8.4 | % | 16.7 | % | |||||||||||||||||||||||||||||||
Diluted Earnings per Share | 50.8 | % | (4.9 | %) | 34.2 | % | 21.5 | % | 32.4 | % | (4.4 | %) | 17.4 | % | 19.4 | % | 6.3 | % | (6.3 | %) | 5.5 | % | 7.1 | % | 22.7 | % | (5.1 | %) | 12.8 | % | 15.0 | % |
(1) | For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income and Diluted Earnings per Share, adjustments consist of the results of the divested product lines, divestiture & other related costs, and operational improvement plan costs and income. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
PART II. | OTHER INFORMATION |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 6. | EXHIBITS |
Exhibit | Description | Incorporated by Reference From | Filed Herewith |
Amendment No. 9 to Receivables Purchase Agreement, dated as of August 31, 2022, among Sensient Receivables LLC, Sensient Technologies Corporation, and Wells Fargo Bank, National Association. | Exhibit 10.1 to Current Report on Form 8-K filed September 6, 2022 (Commission File No. 1-7626) | ||
Certifications of the Company’s Chairman, President & Chief Executive Officer and Senior Vice President & Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act | X | ||
Certifications of the Company’s Chairman, President & Chief Executive Officer and Senior Vice President & Chief Financial Officer pursuant to 18 United States Code § 1350 | X | ||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | X | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | X |
SENSIENT TECHNOLOGIES CORPORATION | ||||
Date: | By: | /s/ John J. Manning | ||
John J. Manning, Senior Vice President, General Counsel & Secretary |
Date: | By: | /s/ Stephen J. Rolfs | ||
Stephen J. Rolfs, Senior Vice President & Chief Financial Officer |