☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended: | September 30, |
☐ | 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 October | |
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. | |||||
Item 3. | |||||
Item 4. | |||||
PART II. OTHER INFORMATION: | |||||
Item 1. | |||||
Item 1A. | |||||
Item 2. | |||||
Item 5. | 18 | ||||
Item 6. | |||||
PART I. | FINANCIAL INFORMATION |
ITEM 1. | FINANCIAL STATEMENTS |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Revenue | $ | 361,076 | $ | 344,287 | $ | 1,088,303 | $ | 1,039,816 | $ | 363,829 | $ | 361,076 | $ | 1,107,148 | $ | 1,088,303 | ||||||||||||||||
Cost of products sold | 239,318 | 229,216 | 710,696 | 697,538 | 250,202 | 239,318 | 746,681 | 710,696 | ||||||||||||||||||||||||
Selling and administrative expenses | 74,265 | 68,113 | 222,081 | 212,670 | 69,096 | 74,265 | 213,507 | 222,081 | ||||||||||||||||||||||||
Operating income | 47,493 | 46,958 | 155,526 | 129,608 | 44,531 | 47,493 | 146,960 | 155,526 | ||||||||||||||||||||||||
Interest expense | 3,672 | 3,037 | 9,748 | 9,792 | 6,294 | 3,672 | 18,648 | 9,748 | ||||||||||||||||||||||||
Earnings before income taxes | 43,821 | 43,921 | 145,778 | 119,816 | 38,237 | 43,821 | 128,312 | 145,778 | ||||||||||||||||||||||||
Income taxes | 7,773 | 10,009 | 34,012 | 28,300 | 6,694 | 7,773 | 29,085 | 34,012 | ||||||||||||||||||||||||
Net earnings | $ | 36,048 | $ | 33,912 | $ | 111,766 | $ | 91,516 | $ | 31,543 | $ | 36,048 | $ | 99,227 | $ | 111,766 | ||||||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 41,896 | 42,024 | 41,885 | 42,140 | 42,045 | 41,896 | 42,020 | 41,885 | ||||||||||||||||||||||||
Diluted | 42,242 | 42,206 | 42,199 | 42,287 | 42,233 | 42,242 | 42,241 | 42,199 | ||||||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.86 | $ | 0.81 | $ | 2.67 | $ | 2.17 | $ | 0.75 | $ | 0.86 | $ | 2.36 | $ | 2.67 | ||||||||||||||||
Diluted | $ | 0.85 | $ | 0.80 | $ | 2.65 | $ | 2.16 | $ | 0.75 | $ | 0.85 | $ | 2.35 | $ | 2.65 | ||||||||||||||||
Dividends declared per common share | $ | 0.41 | $ | 0.39 | $ | 1.23 | $ | 1.17 | $ | 0.41 | $ | 0.41 | $ | 1.23 | $ | 1.23 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Comprehensive income | $ | 8,997 | $ | 18,680 | $ | 56,171 | $ | 79,454 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Comprehensive income | $ | 18,229 | $ | 8,997 | $ | 109,380 | $ | 56,171 |
September 30, 2022 (Unaudited) | December 31, 2021 | September 30, 2023 (Unaudited) | December 31, 2022 | |||||||||||||
Assets | ||||||||||||||||
Current Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 46,579 | $ | 25,740 | $ | 31,985 | $ | 20,921 | ||||||||
Trade accounts receivable | 287,197 | 261,121 | 284,668 | 302,109 | ||||||||||||
Inventories | 501,382 | 411,635 | 587,024 | 564,110 | ||||||||||||
Prepaid expenses and other current assets | 45,582 | 42,657 | 41,477 | 47,640 | ||||||||||||
Total current assets | 880,740 | 741,153 | 945,154 | 934,780 | ||||||||||||
Other assets | 100,277 | 92,952 | 94,646 | 96,609 | ||||||||||||
Deferred tax assets | 12,912 | 29,901 | 30,857 | 32,717 | ||||||||||||
Intangible assets, net | 14,042 | 14,975 | 17,352 | 18,600 | ||||||||||||
Goodwill | 390,798 | 420,034 | 415,618 | 415,715 | ||||||||||||
Property, Plant, and Equipment: | ||||||||||||||||
Land | 28,641 | 31,028 | 31,269 | 31,444 | ||||||||||||
Buildings | 304,928 | 315,207 | 336,152 | 322,268 | ||||||||||||
Machinery and equipment | 705,029 | 715,344 | 759,191 | 722,294 | ||||||||||||
Construction in progress | 55,896 | 32,801 | 71,223 | 65,809 | ||||||||||||
1,094,494 | 1,094,380 | 1,197,835 | 1,141,815 | |||||||||||||
Less accumulated depreciation | (654,055 | ) | (647,902 | ) | (691,286 | ) | (658,622 | ) | ||||||||
440,439 | 446,478 | 506,549 | 483,193 | |||||||||||||
Total assets | $ | 1,839,208 | $ | 1,745,493 | $ | 2,010,176 | $ | 1,981,614 | ||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||
Current Liabilities: | ||||||||||||||||
Trade accounts payable | $ | 132,904 | $ | 125,519 | $ | 110,973 | $ | 142,365 | ||||||||
Accrued salaries, wages, and withholdings from employees | 40,918 | 40,939 | 26,818 | 43,738 | ||||||||||||
Other accrued expenses | 54,283 | 46,292 | 55,676 | 51,231 | ||||||||||||
Income taxes | 5,373 | 11,016 | 7,543 | 14,446 | ||||||||||||
Short-term borrowings | 21,947 | 8,539 | 22,807 | 20,373 | ||||||||||||
Total current liabilities | 255,425 | 232,305 | 223,817 | 272,153 | ||||||||||||
Deferred tax liabilities | 16,489 | 14,349 | 16,202 | 15,977 | ||||||||||||
Other liabilities | 37,736 | 28,829 | 37,115 | 37,191 | ||||||||||||
Accrued employee and retiree benefits | 27,854 | 28,579 | 26,830 | 26,364 | ||||||||||||
Long-term debt | 547,190 | 503,006 | 648,556 | 630,331 | ||||||||||||
Shareholders’ Equity: | ||||||||||||||||
Common stock | 5,396 | 5,396 | 5,396 | 5,396 | ||||||||||||
Additional paid-in capital | 120,381 | 111,352 | 116,775 | 124,043 | ||||||||||||
Earnings reinvested in the business | 1,690,813 | 1,630,713 | 1,750,027 | 1,702,700 | ||||||||||||
Treasury stock, at cost | (631,853 | ) | (634,408 | ) | (624,007 | ) | (631,853 | ) | ||||||||
Accumulated other comprehensive loss | (230,223 | ) | (174,628 | ) | (190,535 | ) | (200,688 | ) | ||||||||
Total shareholders’ equity | 954,514 | 938,425 | 1,057,656 | 999,598 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 1,839,208 | $ | 1,745,493 | $ | 2,010,176 | $ | 1,981,614 |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net earnings | $ | 111,766 | $ | 91,516 | $ | 99,227 | $ | 111,766 | ||||||||
Adjustments to arrive at net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 39,262 | 38,828 | 43,360 | 39,262 | ||||||||||||
Share-based compensation expense | 12,476 | 6,431 | 7,285 | 12,476 | ||||||||||||
Net loss on assets | 283 | 203 | ||||||||||||||
Loss on divestitures and other charges | - | 13,774 | ||||||||||||||
Net (gain) loss on assets | (81 | ) | 283 | |||||||||||||
Deferred income taxes | 20,465 | 3,793 | 2,082 | 20,465 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Trade accounts receivable | (39,520 | ) | (35,290 | ) | 18,830 | (39,520 | ) | |||||||||
Inventories | (112,021 | ) | (15,898 | ) | (21,455 | ) | (112,021 | ) | ||||||||
Prepaid expenses and other assets | (39,598 | ) | (15,016 | ) | 842 | (39,598 | ) | |||||||||
Accounts payable and other accrued expenses | 24,110 | 24,007 | (20,572 | ) | 24,110 | |||||||||||
Accrued salaries, wages, and withholdings from employees | 1,819 | 1,763 | (16,749 | ) | 1,819 | |||||||||||
Income taxes | (4,342 | ) | (1,155 | ) | (6,536 | ) | (4,342 | ) | ||||||||
Other liabilities | 198 | 3,192 | 587 | 198 | ||||||||||||
Net cash provided by operating activities | 14,898 | 116,148 | 106,820 | 14,898 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Acquisition of property, plant, and equipment | (51,703 | ) | (37,608 | ) | (67,718 | ) | (51,703 | ) | ||||||||
Proceeds from sale of assets | 94 | 201 | 130 | 94 | ||||||||||||
Proceeds from divestiture of businesses | - | 36,790 | ||||||||||||||
Acquisition of new business | (1,048 | ) | (13,875 | ) | - | (1,048 | ) | |||||||||
Other investing activities | 947 | 1,348 | 2,036 | 947 | ||||||||||||
Net cash used in investing activities | (51,710 | ) | (13,144 | ) | (65,552 | ) | (51,710 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from additional borrowings | 187,715 | 55,589 | 197,577 | 187,715 | ||||||||||||
Debt payments | (87,657 | ) | (67,534 | ) | (174,083 | ) | (87,657 | ) | ||||||||
Purchase of treasury stock | - | (31,467 | ) | |||||||||||||
Dividends paid | (51,681 | ) | (49,468 | ) | (51,900 | ) | (51,681 | ) | ||||||||
Other financing activities | (2,056 | ) | (582 | ) | (8,034 | ) | (2,056 | ) | ||||||||
Net cash provided by (used in) financing activities | 46,321 | (93,462 | ) | |||||||||||||
Net cash (used in) provided by financing activities | (36,440 | ) | 46,321 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 11,330 | (1,373 | ) | 6,236 | 11,330 | |||||||||||
Net increase in cash and cash equivalents | 20,839 | 8,169 | 11,064 | 20,839 | ||||||||||||
Cash and cash equivalents at beginning of period | 25,740 | 24,770 | 20,921 | 25,740 | ||||||||||||
Cash and cash equivalents at end of period | $ | 46,579 | $ | 32,939 | $ | 31,985 | $ | 46,579 |
Common | Additional Paid-In | Earnings Reinvested in the | Treasury Stock | Accumulated Other Comprehensive | Total | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | Common Stock | Additional Paid-In Capital | Earnings Reinvested in the Business | Shares | Amount | Accumulated Other Comprehensive Income (Loss) | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2023 | $ | 5,396 | $ | 114,330 | $ | 1,735,807 | 11,909,833 | $ | (624,048 | ) | $ | (177,221 | ) | $ | 1,054,264 | |||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | 36,048 | - | - | - | 36,048 | - | - | 31,543 | - | - | - | 31,543 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | - | - | (27,051 | ) | (27,051 | ) | - | - | - | - | - | (13,314 | ) | (13,314 | ) | ||||||||||||||||||||||||||||||||||||||
Cash dividends paid – $0.41 per share | - | - | (17,235 | ) | - | - | - | (17,235 | ) | - | - | (17,323 | ) | - | - | - | (17,323 | ) | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | - | 3,785 | - | - | - | - | 3,785 | - | 2,519 | - | - | - | - | 2,519 | ||||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2022 | $ | 5,396 | $ | 120,381 | $ | 1,690,813 | 12,058,773 | $ | (631,853 | ) | $ | (230,223 | ) | $ | 954,514 | |||||||||||||||||||||||||||||||||||||||||
Non-vested stock issued upon vesting | - | (67 | ) | - | (1,285 | ) | 67 | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
Other | - | (7 | ) | - | 492 | (26 | ) | - | (33 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2023 | $ | 5,396 | $ | 116,775 | $ | 1,750,027 | 11,909,040 | $ | (624,007 | ) | $ | (190,535 | ) | $ | 1,057,656 |
Balances at June 30, 2021 | $ | 5,396 | $ | 105,967 | $ | 1,603,239 | 11,892,497 | $ | (614,404 | ) | $ | (155,921 | ) | $ | 944,277 | |||||||||||||
Net earnings | - | - | 33,912 | - | - | - | 33,912 | |||||||||||||||||||||
Other comprehensive loss | - | - | - | - | - | (15,232 | ) | (15,232 | ) | |||||||||||||||||||
Cash dividends paid – $0.39 per share | - | - | (16,441 | ) | - | - | - | (16,441 | ) | |||||||||||||||||||
Share-based compensation | - | 2,243 | - | - | - | - | 2,243 | |||||||||||||||||||||
Purchase of treasury stock | - | - | - | 105,600 | (9,367 | ) | - | (9,367 | ) | |||||||||||||||||||
Balances at September 30, 2021 | $ | 5,396 | $ | 108,210 | $ | 1,620,710 | 11,998,097 | $ | (623,771 | ) | $ | (171,153 | ) | $ | 939,392 |
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | 5,396 | $ | 116,596 | $ | 1,672,000 | 12,058,773 | $ | (631,853 | ) | $ | (203,172 | ) | $ | 958,967 | |||||||||||||
Net earnings | - | - | 36,048 | - | - | - | 36,048 | |||||||||||||||||||||
Other comprehensive loss | - | - | - | - | - | (27,051 | ) | (27,051 | ) | |||||||||||||||||||
Cash dividends paid – $0.41 per share | - | - | (17,235 | ) | - | - | - | (17,235 | ) | |||||||||||||||||||
Share-based compensation | - | 3,785 | - | - | - | - | 3,785 | |||||||||||||||||||||
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, 2021 | $ | 5,396 | $ | 111,352 | $ | 1,630,713 | 12,107,549 | $ | (634,408 | ) | $ | (174,628 | ) | $ | 938,425 | |||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2022 | $ | 5,396 | $ | 124,043 | $ | 1,702,700 | 12,058,773 | $ | (631,853 | ) | $ | (200,688 | ) | $ | 999,598 | |||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | 111,766 | - | - | - | 111,766 | - | - | 99,227 | - | - | - | 99,227 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | - | - | (55,595 | ) | (55,595 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | - | - | - | - | - | 10,153 | 10,153 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid – $1.23 per share | - | - | (51,681 | ) | - | - | - | (51,681 | ) | - | - | (51,900 | ) | - | - | - | (51,900 | ) | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | - | 12,476 | - | - | - | - | 12,476 | - | 7,285 | - | - | - | - | 7,285 | ||||||||||||||||||||||||||||||||||||||||||
Non-vested stock issued upon vesting | - | (3,239 | ) | - | (61,821 | ) | 3,239 | - | - | - | (12,686 | ) | - | (242,110 | ) | 12,686 | - | - | ||||||||||||||||||||||||||||||||||||||
Benefit plans | - | 560 | - | (11,786 | ) | 618 | - | 1,178 | - | 375 | - | (18,172 | ) | 952 | - | 1,327 | ||||||||||||||||||||||||||||||||||||||||
Other | - | (768 | ) | 15 | 24,831 | (1,302 | ) | - | (2,055 | ) | - | (2,242 | ) | - | 110,549 | (5,792 | ) | - | (8,034 | ) | ||||||||||||||||||||||||||||||||||||
Balances at September 30, 2022 | $ | 5,396 | $ | 120,381 | $ | 1,690,813 | 12,058,773 | $ | (631,853 | ) | $ | (230,223 | ) | $ | 954,514 | |||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2023 | $ | 5,396 | $ | 116,775 | $ | 1,750,027 | 11,909,040 | $ | (624,007 | ) | $ | (190,535 | ) | $ | 1,057,656 |
Balances at December 31, 2020 | $ | 5,396 | $ | 102,909 | $ | 1,578,662 | 11,647,627 | $ | (593,540 | ) | $ | (159,091 | ) | $ | 934,336 | |||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2021 | $ | 5,396 | $ | 111,352 | $ | 1,630,713 | 12,107,549 | $ | (634,408 | ) | $ | (174,628 | ) | $ | 938,425 | |||||||||||||||||||||||||||||||||||||||||
Net earnings | - | - | 91,516 | - | - | - | 91,516 | - | - | 111,766 | - | - | - | 111,766 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | - | - | - | - | - | (12,062 | ) | (12,062 | ) | - | - | - | - | - | (55,595 | ) | (55,595 | ) | ||||||||||||||||||||||||||||||||||||||
Cash dividends paid – $1.17 per share | - | - | (49,468 | ) | - | - | - | (49,468 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid – $1.23 per share | - | - | (51,681 | ) | - | - | - | (51,681 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | - | 6,431 | - | - | - | - | 6,431 | - | 12,476 | - | - | - | - | 12,476 | ||||||||||||||||||||||||||||||||||||||||||
Non-vested stock issued upon vesting | - | (1,264 | ) | - | (24,711 | ) | 1,264 | - | - | - | (3,239 | ) | - | (61,821 | ) | 3,239 | - | - | ||||||||||||||||||||||||||||||||||||||
Benefit plans | - | 338 | - | (14,791 | ) | 756 | - | 1,094 | - | 560 | - | (11,786 | ) | 618 | - | 1,178 | ||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | - | - | - | 382,593 | (31,874 | ) | - | (31,874 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Other | - | (204 | ) | - | 7,379 | (377 | ) | - | (581 | ) | - | (768 | ) | 15 | 24,831 | (1,302 | ) | - | (2,055 | ) | ||||||||||||||||||||||||||||||||||||
Balances at September 30, 2021 | $ | 5,396 | $ | 108,210 | $ | 1,620,710 | 11,998,097 | $ | (623,771 | ) | $ | (171,153 | ) | $ | 939,392 | |||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2022 | $ | 5,396 | $ | 120,381 | $ | 1,690,813 | 12,058,773 | $ | (631,853 | ) | $ | (230,223 | ) | $ | 954,514 |
1. | Accounting Policies |
2. |
(In thousands) | Yogurt Fruit Preparations | Fragrances | Inks | Corporate & Other | Total | |||||||||||||||
Other costs - Selling and administrative expenses(1) | $ | 102 | $ | 149 | $ | (157 | ) | $ | 147 | $ | 241 |
(In thousands) | Yogurt Fruit Preparations | Fragrances | Inks | Corporate & Other | Total | |||||||||||||||
Non-cash impairment charges – Selling and administrative expenses | $ | - | $ | 1,062 | $ | - | $ | - | $ | 1,062 | ||||||||||
Non-cash charges – Cost of products sold | - | 37 | (9 | ) | - | 28 | ||||||||||||||
Reclassification of foreign currency translation and related items – Selling and administrative expenses | - | 10,193 | - | - | 10,193 | |||||||||||||||
Other costs - Selling and administrative expenses(1) | 631 | 1,365 | (362 | ) | 584 | 2,218 | ||||||||||||||
Total | $ | 631 | $ | 12,657 | $ | (371 | ) | $ | 584 | $ | 13,501 |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||
Employee separation costs | $ | 1 | $ | (120 | ) | $ | (4 | ) | $ | (123 | ) | |||||
Other costs(1) | - | 605 | 1 | 606 | ||||||||||||
Total expense (income) | $ | 1 | $ | 485 | $ | (3 | ) | $ | 483 |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||
Employee separation costs | $ | (15 | ) | $ | (40 | ) | $ | (72 | ) | $ | (127 | ) | ||||
Other income(1) | - | (3,624 | ) | - | (3,624 | ) | ||||||||||
Other costs(2) | - | 1,739 | 2 | 1,741 | ||||||||||||
Total expense (income) | $ | (15 | ) | $ | (1,925 | ) | $ | (70 | ) | $ | (2,010 | ) |
Acquisition |
Trade Accounts Receivable |
(In thousands) Three Months Ended September 30, 2023 | Allowance for Doubtful Accounts | |||
Balance at June 30, 2023 | $ | 4,293 | ||
Provision for expected credit losses | 13 | |||
Accounts written off | (244 | ) | ||
Translation and other activity | (76 | ) | ||
Balance at September 30, 2023 | $ | 3,986 |
(In thousands) Three Months Ended September 30, 2022 | Allowance for Doubtful Accounts | |||
Balance at June 30, 2022 | $ | 4,494 | ||
Provision for expected credit losses | 51 | |||
Accounts written off | (33 | ) | ||
Translation and other activity | (105 | ) | ||
Balance at September 30, 2022 | $ | 4,407 |
(In thousands) Three Months Ended September 30, 2021 | Allowance for Doubtful Accounts | |||
Balance at June 30, 2021 | $ | 3,749 | ||
Provision for expected credit losses | 186 | |||
Accounts written off | (41 | ) | ||
Translation and other activity | (65 | ) | ||
Balance at September 30, 2021 | $ | 3,829 |
(In thousands) Nine Months Ended September 30, 2022 | Allowance for Doubtful Accounts | |||||||
Balance at December 31, 2021 | $ | 4,877 | ||||||
(In thousands) Nine Months Ended September 30, 2023 | Allowance for Doubtful Accounts | |||||||
Balance at December 31, 2022 | $ | 4,436 | ||||||
Provision for expected credit losses | 883 | 504 | ||||||
Accounts written off | (1,129 | ) | (1,051 | ) | ||||
Translation and other activity | (224 | ) | 97 | |||||
Balance at September 30, 2022 | $ | 4,407 | ||||||
Balance at September 30, 2023 | $ | 3,986 |
(In thousands) Nine Months Ended September 30, 2021 | Allowance for Doubtful Accounts | |||||||
Balance at December 31, 2020 | $ | 3,891 | ||||||
(In thousands) Nine Months Ended September 30, 2022 | Allowance for Doubtful Accounts | |||||||
Balance at December 31, 2021 | $ | 4,877 | ||||||
Provision for expected credit losses | 480 | 883 | ||||||
Accounts written off | (414 | ) | (1,129 | ) | ||||
Translation and other activity | (128 | ) | (224 | ) | ||||
Balance at September 30, 2021 | $ | 3,829 | ||||||
Balance at September 30, 2022 | $ | 4,407 |
Debt |
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 September 30, 2023: | ||||||||||||||||||||||||||||||||||||||||
Revenue from external customers | $ | 185,029 | $ | 142,026 | $ | 36,774 | $ | - | $ | 363,829 | ||||||||||||||||||||||||||||||
Intersegment revenue | 5,968 | 2,913 | - | - | 8,881 | |||||||||||||||||||||||||||||||||||
Total revenue | $ | 190,997 | $ | 144,939 | $ | 36,774 | $ | - | $ | 372,710 | ||||||||||||||||||||||||||||||
Operating income (loss) | $ | 23,078 | $ | 22,925 | $ | 8,095 | $ | (9,567 | ) | $ | 44,531 | |||||||||||||||||||||||||||||
Interest expense | - | - | - | 6,294 | 6,294 | |||||||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 23,078 | $ | 22,925 | $ | 8,095 | $ | (15,861 | ) | $ | 38,237 | |||||||||||||||||||||||||||||
Three months ended September 30, 2022: | ||||||||||||||||||||||||||||||||||||||||
Revenue from external customers | $ | 181,397 | $ | 144,570 | $ | 35,109 | $ | - | $ | 361,076 | $ | 181,397 | $ | 144,570 | $ | 35,109 | $ | - | $ | 361,076 | ||||||||||||||||||||
Intersegment revenue | 5,649 | 6,899 | 112 | - | 12,660 | 5,649 | 6,899 | 112 | - | 12,660 | ||||||||||||||||||||||||||||||
Total revenue | $ | 187,046 | $ | 151,469 | $ | 35,221 | $ | - | $ | 373,736 | $ | 187,046 | $ | 151,469 | $ | 35,221 | $ | - | $ | 373,736 | ||||||||||||||||||||
Operating income (loss) | $ | 26,337 | $ | 28,200 | $ | 6,952 | $ | (13,996 | ) | $ | 47,493 | $ | 26,337 | $ | 28,200 | $ | 6,952 | $ | (13,996 | ) | $ | 47,493 | ||||||||||||||||||
Interest expense | - | - | - | 3,672 | 3,672 | - | - | - | 3,672 | 3,672 | ||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 26,337 | $ | 28,200 | $ | 6,952 | $ | (17,668 | ) | $ | 43,821 | $ | 26,337 | $ | 28,200 | $ | 6,952 | $ | (17,668 | ) | $ | 43,821 | ||||||||||||||||||
Three months ended September 30, 2021: | ||||||||||||||||||||||||||||||||||||||||
Revenue from external customers | $ | 175,690 | $ | 135,395 | $ | 33,202 | $ | - | $ | 344,287 | ||||||||||||||||||||||||||||||
Intersegment revenue | 5,977 | 3,844 | 240 | - | 10,061 | |||||||||||||||||||||||||||||||||||
Total revenue | $ | 181,667 | $ | 139,239 | $ | 33,442 | $ | - | $ | 354,348 | ||||||||||||||||||||||||||||||
Operating income (loss) | $ | 25,164 | $ | 27,253 | $ | 6,601 | $ | (12,060 | ) | $ | 46,958 | |||||||||||||||||||||||||||||
Interest expense | - | - | - | 3,037 | 3,037 | |||||||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 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 | ||||||||||||||||||||||||||||||
Nine months ended September 30, 2023: | ||||||||||||||||||||||||||||||||||||||||
Revenue from external customers | $ | 538,753 | $ | 455,507 | $ | 112,888 | $ | - | $ | 1,107,148 | ||||||||||||||||||||||||||||||
Intersegment revenue | 19,380 | 11,056 | - | - | 30,436 | |||||||||||||||||||||||||||||||||||
Total revenue | $ | 558,133 | $ | 466,563 | $ | 112,888 | $ | - | $ | 1,137,584 | ||||||||||||||||||||||||||||||
Operating income (loss) | $ | 69,714 | $ | 84,027 | $ | 24,911 | $ | (31,692 | ) | $ | 146,960 | |||||||||||||||||||||||||||||
Interest expense | - | - | - | 18,648 | 18,648 | |||||||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 69,714 | $ | 84,027 | $ | 24,911 | $ | (50,340 | ) | $ | 128,312 | |||||||||||||||||||||||||||||
Nine months ended September 30, 2022: | ||||||||||||||||||||||||||||||||||||||||
Revenue from external customers | $ | 539,014 | $ | 440,568 | $ | 108,721 | $ | - | $ | 1,088,303 | $ | 539,014 | $ | 440,568 | $ | 108,721 | $ | - | $ | 1,088,303 | ||||||||||||||||||||
Intersegment revenue | 20,096 | 15,607 | 293 | - | 35,996 | 20,096 | 15,607 | 293 | - | 35,996 | ||||||||||||||||||||||||||||||
Total revenue | $ | 559,110 | $ | 456,175 | $ | 109,014 | $ | - | $ | 1,124,299 | $ | 559,110 | $ | 456,175 | $ | 109,014 | $ | - | $ | 1,124,299 | ||||||||||||||||||||
Operating income (loss) | $ | 83,929 | $ | 90,035 | $ | 22,877 | $ | (41,315 | ) | $ | 155,526 | $ | 83,929 | $ | 90,035 | $ | 22,877 | $ | (41,315 | ) | $ | 155,526 | ||||||||||||||||||
Interest expense | - | - | - | 9,748 | 9,748 | - | - | - | 9,748 | 9,748 | ||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 83,929 | $ | 90,035 | $ | 22,877 | $ | (51,063 | ) | $ | 145,778 | $ | 83,929 | $ | 90,035 | $ | 22,877 | $ | (51,063 | ) | $ | 145,778 | ||||||||||||||||||
Nine months ended September 30, 2021: | ||||||||||||||||||||||||||||||||||||||||
Revenue from external customers | $ | 545,050 | $ | 395,426 | $ | 99,340 | $ | - | $ | 1,039,816 | ||||||||||||||||||||||||||||||
Intersegment revenue | 16,929 | 12,740 | 259 | - | 29,928 | |||||||||||||||||||||||||||||||||||
Total revenue | $ | 561,979 | $ | 408,166 | $ | 99,599 | $ | - | $ | 1,069,744 | ||||||||||||||||||||||||||||||
Operating income (loss) | $ | 76,718 | $ | 79,462 | $ | 19,146 | $ | (45,718 | ) | $ | 129,608 | |||||||||||||||||||||||||||||
Interest expense | - | - | - | 9,792 | 9,792 | |||||||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 76,718 | $ | 79,462 | $ | 19,146 | $ | (55,510 | ) | $ | 119,816 |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||||||||||||||
Three months ended September 30, 2023: | ||||||||||||||||||||||||||||||||
Flavors, Extracts & Flavor Ingredients | $ | 124,697 | $ | - | $ | - | $ | 124,697 | ||||||||||||||||||||||||
Natural Ingredients | 66,300 | - | - | 66,300 | ||||||||||||||||||||||||||||
Food & Pharmaceutical Colors | - | 107,723 | - | 107,723 | ||||||||||||||||||||||||||||
Personal Care | - | 37,216 | - | 37,216 | ||||||||||||||||||||||||||||
Asia Pacific | - | - | 36,774 | 36,774 | ||||||||||||||||||||||||||||
Intersegment Revenue | (5,968 | ) | (2,913 | ) | - | (8,881 | ) | |||||||||||||||||||||||||
Total revenue from external customers | $ | 185,029 | $ | 142,026 | $ | 36,774 | $ | 363,829 | ||||||||||||||||||||||||
Three months ended September 30, 2022: | ||||||||||||||||||||||||||||||||
Flavors, Extracts & Flavor Ingredients | $ | 123,945 | $ | - | $ | - | $ | 123,945 | $ | 123,945 | $ | - | $ | - | $ | 123,945 | ||||||||||||||||
Natural Ingredients | 63,101 | - | - | 63,101 | 63,101 | - | - | 63,101 | ||||||||||||||||||||||||
Food & Pharmaceutical Colors | - | 111,194 | - | 111,194 | - | 111,194 | - | 111,194 | ||||||||||||||||||||||||
Personal Care | - | 39,689 | - | 39,689 | - | 39,689 | - | 39,689 | ||||||||||||||||||||||||
Inks | - | 586 | - | 586 | - | 586 | - | 586 | ||||||||||||||||||||||||
Asia Pacific | - | - | 35,221 | 35,221 | - | - | 35,221 | 35,221 | ||||||||||||||||||||||||
Intersegment Revenue | (5,649 | ) | (6,899 | ) | (112 | ) | (12,660 | ) | (5,649 | ) | (6,899 | ) | (112 | ) | (12,660 | ) | ||||||||||||||||
Total revenue from external customers | $ | 181,397 | $ | 144,570 | $ | 35,109 | $ | 361,076 | $ | 181,397 | $ | 144,570 | $ | 35,109 | $ | 361,076 | ||||||||||||||||
Three months ended September 30, 2021: | ||||||||||||||||||||||||||||||||
Flavors, Extracts & Flavor Ingredients | $ | 116,140 | $ | - | $ | - | $ | 116,140 | ||||||||||||||||||||||||
Natural Ingredients | 64,215 | - | - | 64,215 | ||||||||||||||||||||||||||||
Yogurt Fruit Preparations | 1,312 | - | - | 1,312 | ||||||||||||||||||||||||||||
Food & Pharmaceutical Colors | - | 99,688 | - | 99,688 | ||||||||||||||||||||||||||||
Personal Care | - | 39,241 | - | 39,241 | ||||||||||||||||||||||||||||
Inks | - | 310 | - | 310 | ||||||||||||||||||||||||||||
Asia Pacific | - | - | 33,442 | 33,442 | ||||||||||||||||||||||||||||
Intersegment Revenue | (5,977 | ) | (3,844 | ) | (240 | ) | (10,061 | ) | ||||||||||||||||||||||||
Total revenue from external customers | $ | 175,690 | $ | 135,395 | $ | 33,202 | $ | 344,287 |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||
Nine months ended September 30, 2023: | ||||||||||||||||
Flavors, Extracts & Flavor Ingredients | $ | 383,210 | $ | - | $ | - | $ | 383,210 | ||||||||
Natural Ingredients | 174,923 | - | - | 174,923 | ||||||||||||
Food & Pharmaceutical Colors | - | 346,635 | - | 346,635 | ||||||||||||
Personal Care | - | 119,928 | - | 119,928 | ||||||||||||
Asia Pacific | - | - | 112,888 | 112,888 | ||||||||||||
Intersegment Revenue | (19,380 | ) | (11,056 | ) | - | (30,436 | ) | |||||||||
Total revenue from external customers | $ | 538,753 | $ | 455,507 | $ | 112,888 | $ | 1,107,148 | ||||||||
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 |
(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 September 30, 2023: | ||||||||||||||||||||||||||||||||
North America | $ | 147,992 | $ | 75,417 | $ | - | $ | 223,409 | ||||||||||||||||||||||||
Europe | 25,298 | 36,816 | 57 | 62,171 | ||||||||||||||||||||||||||||
Asia Pacific | 4,881 | 13,344 | 35,791 | 54,016 | ||||||||||||||||||||||||||||
Other | 6,858 | 16,449 | 926 | 24,233 | ||||||||||||||||||||||||||||
Total revenue from external customers | $ | 185,029 | $ | 142,026 | $ | 36,774 | $ | 363,829 | ||||||||||||||||||||||||
Three months ended September 30, 2022: | ||||||||||||||||||||||||||||||||
North America | $ | 142,097 | $ | 74,220 | $ | 27 | $ | 216,344 | $ | 142,097 | $ | 74,220 | $ | 27 | $ | 216,344 | ||||||||||||||||
Europe | 26,795 | 34,591 | 44 | 61,430 | 26,795 | 34,591 | 44 | 61,430 | ||||||||||||||||||||||||
Asia Pacific | 7,091 | 16,770 | 34,433 | 58,294 | 7,091 | 16,770 | 34,433 | 58,294 | ||||||||||||||||||||||||
Other | 5,414 | 18,989 | 605 | 25,008 | 5,414 | 18,989 | 605 | 25,008 | ||||||||||||||||||||||||
Total revenue from external customers | $ | 181,397 | $ | 144,570 | $ | 35,109 | $ | 361,076 | $ | 181,397 | $ | 144,570 | $ | 35,109 | $ | 361,076 | ||||||||||||||||
Three months ended September 30, 2021: | ||||||||||||||||||||||||||||||||
North America | $ | 131,855 | $ | 67,830 | $ | 5 | $ | 199,690 | ||||||||||||||||||||||||
Europe | 30,241 | 37,004 | 30 | 67,275 | ||||||||||||||||||||||||||||
Asia Pacific | 6,410 | 14,451 | 32,511 | 53,372 | ||||||||||||||||||||||||||||
Other | 7,184 | 16,110 | 656 | 23,950 | ||||||||||||||||||||||||||||
Total revenue from external customers | $ | 175,690 | $ | 135,395 | $ | 33,202 | $ | 344,287 |
(In thousands) | Flavors & Extracts | Color | Asia Pacific | Consolidated | Flavors & Extracts | Color | Asia Pacific | Consolidated | ||||||||||||||||||||||||
Nine months ended September 30, 2023: | ||||||||||||||||||||||||||||||||
North America | $ | 417,095 | $ | 231,348 | $ | 124 | $ | 648,567 | ||||||||||||||||||||||||
Europe | 86,092 | 124,465 | 184 | 210,741 | ||||||||||||||||||||||||||||
Asia Pacific | 16,372 | 47,801 | 110,380 | 174,553 | ||||||||||||||||||||||||||||
Other | 19,194 | 51,893 | 2,200 | 73,287 | ||||||||||||||||||||||||||||
Total revenue from external customers | $ | 538,753 | $ | 455,507 | $ | 112,888 | $ | 1,107,148 | ||||||||||||||||||||||||
Nine months ended September 30, 2022: | ||||||||||||||||||||||||||||||||
North America | $ | 407,684 | $ | 223,508 | $ | 87 | $ | 631,279 | $ | 407,684 | $ | 223,508 | $ | 87 | $ | 631,279 | ||||||||||||||||
Europe | 90,565 | 116,184 | 175 | 206,924 | 90,565 | 116,184 | 175 | 206,924 | ||||||||||||||||||||||||
Asia Pacific | 23,628 | 49,199 | 105,222 | 178,049 | 23,628 | 49,199 | 105,222 | 178,049 | ||||||||||||||||||||||||
Other | 17,137 | 51,677 | 3,237 | 72,051 | 17,137 | 51,677 | 3,237 | 72,051 | ||||||||||||||||||||||||
Total revenue from external customers | $ | 539,014 | $ | 440,568 | $ | 108,721 | $ | 1,088,303 | $ | 539,014 | $ | 440,568 | $ | 108,721 | $ | 1,088,303 | ||||||||||||||||
Nine months ended September 30, 2021: | ||||||||||||||||||||||||||||||||
North America | $ | 390,163 | $ | 188,764 | $ | 67 | $ | 578,994 | ||||||||||||||||||||||||
Europe | 107,463 | 112,188 | 106 | 219,757 | ||||||||||||||||||||||||||||
Asia Pacific | 24,288 | 47,832 | 96,863 | 168,983 | ||||||||||||||||||||||||||||
Other | 23,136 | 46,642 | 2,304 | 72,082 | ||||||||||||||||||||||||||||
Total revenue from external customers | $ | 545,050 | $ | 395,426 | $ | 99,340 | $ | 1,039,816 |
8. | Retirement Plans |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Service cost | $ | 404 | $ | 435 | $ | 1,219 | $ | 1,308 | $ | 372 | $ | 404 | $ | 1,111 | $ | 1,219 | ||||||||||||||||
Interest cost | 235 | 212 | 719 | 638 | 415 | 235 | 1,237 | 719 | ||||||||||||||||||||||||
Expected return on plan assets | (194 | ) | (184 | ) | (598 | ) | (553 | ) | (248 | ) | (194 | ) | (732 | ) | (598 | ) | ||||||||||||||||
Recognized actuarial loss | 12 | 69 | 36 | 207 | (138 | ) | 12 | (415 | ) | 36 | ||||||||||||||||||||||
Total defined benefit expense | $ | 457 | $ | 532 | $ | 1,376 | $ | 1,600 | $ | 401 | $ | 457 | $ | 1,201 | $ | 1,376 |
Derivative Instruments and Hedging Activity |
Income Taxes |
Accumulated Other Comprehensive Income |
(In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||
Balances at December 31, 2021 | $ | 206 | $ | (353 | ) | $ | (174,481 | ) | $ | (174,628 | ) | |||||
Other comprehensive income (loss) before reclassifications | 516 | - | (55,514 | ) | (54,998 | ) | ||||||||||
Amounts reclassified from OCI | (621 | ) | 24 | - | (597 | ) | ||||||||||
Balances at September 30, 2022 | $ | 101 | $ | (329 | ) | $ | (229,995 | ) | $ | (230,223 | ) |
(In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||
Balances at December 31, 2022 | $ | (599 | ) | $ | (1,792 | ) | $ | (198,297 | ) | $ | (200,688 | ) | ||||
Other comprehensive income before reclassifications | 2,974 | - | 8,977 | 11,951 | ||||||||||||
Amounts reclassified from OCI | (1,432 | ) | (366 | ) | - | (1,798 | ) | |||||||||
Balances at September 30, 2023 | $ | 943 | $ | (2,158 | ) | $ | (189,320 | ) | $ | (190,535 | ) |
(In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||
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 | (127 | ) | 8 | - | (119 | ) | ||||||||||
Balances at September 30, 2022 | $ | 101 | $ | (329 | ) | $ | (229,995 | ) | $ | (230,223 | ) |
(In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||
Balances at June 30, 2023 | $ | 1,997 | $ | (2,036 | ) | $ | (177,182 | ) | $ | (177,221 | ) | |||||
Other comprehensive loss before reclassifications | (239 | ) | - | (12,138 | ) | (12,377 | ) | |||||||||
Amounts reclassified from OCI | (815 | ) | (122 | ) | - | (937 | ) | |||||||||
Balances at September 30, 2023 | $ | 943 | $ | (2,158 | ) | $ | (189,320 | ) | $ | (190,535 | ) |
(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 | ) | |||||||||||||||||||||
Balances at December 31, 2021 | $ | 206 | $ | (353 | ) | $ | (174,481 | ) | $ | (174,628 | ) | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 729 | - | (22,073 | ) | (21,344 | ) | 516 | - | (55,514 | ) | (54,998 | ) | ||||||||||||||||||||
Amounts reclassified from OCI | (1,068 | ) | 156 | 10,194 | 9,282 | (621 | ) | 24 | - | (597 | ) | |||||||||||||||||||||
Balances at September 30, 2021 | $ | 410 | $ | (1,809 | ) | $ | (169,754 | ) | $ | (171,153 | ) | |||||||||||||||||||||
Balances at September 30, 2022 | $ | 101 | $ | (329 | ) | $ | (229,995 | ) | $ | (230,223 | ) |
(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 | (292 | ) | 52 | - | (240 | ) | ||||||||||
Balances at September 30, 2021 | $ | 410 | $ | (1,809 | ) | $ | (169,754 | ) | $ | (171,153 | ) |
(In thousands) | Cash Flow Hedges (1) | Pension Items (1) | Foreign Currency Items | Total | ||||||||||||
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 | (127 | ) | 8 | - | (119 | ) | ||||||||||
Balances at September 30, 2022 | $ | 101 | $ | (329 | ) | $ | (229,995 | ) | $ | (230,223 | ) |
(1) | Cash Flow Hedges and Pension Items are net of tax. |
Commitments and Contingencies |
Subsequent Events |
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 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 | ||||||||||||||||||||||||
Flavors & Extracts | 3.0 | % | (2.9 | %) | (0.8 | %) | 6.7 | % | (0.5 | %) | (2.4 | %) | (5.0 | %) | 6.9 | % | ||||||||||||||||
Color | 8.8 | % | (5.5 | %) | (0.3 | %) | 14.6 | % | 11.8 | % | (3.8 | %) | (0.4 | %) | 16.0 | % | ||||||||||||||||
Asia Pacific | 5.3 | % | (9.2 | %) | 0.0 | % | 14.5 | % | 9.5 | % | (7.4 | %) | (0.3 | %) | 17.2 | % | ||||||||||||||||
Total Revenue | 4.9 | % | (4.4 | %) | (0.6 | %) | 9.9 | % | 4.7 | % | (3.3 | %) | (3.0 | %) | 11.0 | % | ||||||||||||||||
Operating Income | ||||||||||||||||||||||||||||||||
Flavors & Extracts | 4.7 | % | (1.1 | %) | 0.2 | % | 5.6 | % | 9.4 | % | (1.2 | %) | (4.0 | %) | 14.6 | % | ||||||||||||||||
Color | 3.5 | % | (7.4 | %) | 0.0 | % | 10.9 | % | 13.3 | % | (4.9 | %) | 0.9 | % | 17.3 | % | ||||||||||||||||
Asia Pacific | 5.3 | % | (11.0 | %) | 0.0 | % | 16.3 | % | 19.5 | % | (9.6 | %) | (0.5 | %) | 29.6 | % | ||||||||||||||||
Corporate & Other | 16.0 | % | (0.1 | %) | (7.4 | %) | 23.5 | % | (9.6 | %) | 0.0 | % | (30.4 | %) | 20.8 | % | ||||||||||||||||
Total Operating Income | 1.1 | % | (6.5 | %) | 1.8 | % | 5.8 | % | 20.0 | % | (5.1 | %) | 8.4 | % | 16.7 | % | ||||||||||||||||
Diluted Earnings per Share | 6.3 | % | (6.3 | %) | 5.5 | % | 7.1 | % | 22.7 | % | (5.1 | %) | 12.8 | % | 15.0 | % |
Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
Revenue | Total | Foreign Exchange Rates | Adjusted Local Currency | Total | Foreign Exchange Rates | Adjusted Local Currency | ||||||||||||||||||
Flavors & Extracts | 2.1 | % | 2.6 | % | (0.5 | %) | (0.2 | %) | 0.9 | % | (1.1 | %) | ||||||||||||
Color | (4.3 | %) | 3.9 | % | (8.2 | %) | 2.3 | % | 1.2 | % | 1.1 | % | ||||||||||||
Asia Pacific | 4.4 | % | 0.1 | % | 4.3 | % | 3.6 | % | (2.5 | %) | 6.1 | % | ||||||||||||
Total Revenue | 0.8 | % | 2.8 | % | (2.0 | %) | 1.7 | % | 0.7 | % | 1.0 | % | ||||||||||||
Operating Income | ||||||||||||||||||||||||
Flavors & Extracts | (12.4 | %) | 1.2 | % | (13.6 | %) | (16.9 | %) | 0.6 | % | (17.5 | %) | ||||||||||||
Color | (18.7 | %) | 4.7 | % | (23.4 | %) | (6.7 | %) | 1.1 | % | (7.8 | %) | ||||||||||||
Asia Pacific | 16.4 | % | 0.6 | % | 15.8 | % | 8.9 | % | (2.7 | %) | 11.6 | % | ||||||||||||
Corporate & Other | (31.6 | %) | 0.0 | % | (31.6 | %) | (23.3 | %) | 0.0 | % | (23.3 | %) | ||||||||||||
Total Operating Income | (6.2 | %) | 3.6 | % | (9.8 | %) | (5.5 | %) | 0.6 | % | (6.1 | %) | ||||||||||||
Diluted Earnings per Share | (11.8 | %) | 3.5 | % | (15.3 | %) | (11.3 | )% | 0.4 | % | (11.7 | %) |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
17 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. | Exhibit 10.1 to Current Report on Form 8-K filed September 6, | ||
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: | November | By: | ||
John J. Manning, Senior Vice President, General Counsel & Secretary | ||||
Date: | November | By: | ||
Stephen J. Rolfs, Senior Vice President & Chief Financial Officer |