Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | SENSIENT TECHNOLOGIES CORP | ||
Entity Central Index Key | 0000310142 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 3,070,289,440 | ||
Entity Common Stock, Shares Outstanding | 42,326,817 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-07626 | ||
Entity Tax Identification Number | 39-0561070 | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Address, Address Line One | 777 EAST WISCONSIN AVENUE | ||
Entity Address, City or Town | MILWAUKEE | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53202-5304 | ||
City Area Code | 414 | ||
Local Phone Number | 271-6755 | ||
Title of 12(b) Security | Common Stock, $0.10 par value | ||
Trading Symbol | SXT | ||
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF EARNINGS [Abstract] | |||
Revenue | $ 1,322,934 | $ 1,386,815 | $ 1,362,265 |
Cost of products sold | 908,061 | 920,686 | 886,775 |
Selling and administrative expenses | 293,763 | 262,751 | 307,684 |
Operating income | 121,110 | 203,378 | 167,806 |
Interest expense | 20,107 | 21,853 | 19,383 |
Earnings before income taxes | 101,003 | 181,525 | 148,423 |
Income taxes | 18,956 | 24,165 | 58,823 |
Net earnings | $ 82,047 | $ 157,360 | $ 89,600 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 1.94 | $ 3.71 | $ 2.05 |
Diluted (in dollars per share) | $ 1.94 | $ 3.70 | $ 2.03 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 42,263 | 42,404 | 43,780 |
Diluted (in shares) | 42,294 | 42,499 | 44,031 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net earnings | $ 82,047 | $ 157,360 | $ 89,600 |
Cash flow hedges adjustment, net of tax of $193, $32 and $10, respectively | (346) | 816 | (584) |
Pension adjustment, net of tax of $409, $347 and $778, respectively | (1,221) | 1,027 | 2,228 |
Foreign currency translation on net investment hedges | 3,091 | 13,661 | (28,871) |
Tax effect of current year activity on net investment hedges | (768) | (3,393) | 10,812 |
Foreign currency translation on long-term intercompany loans | (752) | 3,276 | 7,013 |
Tax effect of current year activity on intercompany long-term loans | (768) | (2,498) | 0 |
Reclassification of cumulative translation to net earnings | 0 | 0 | 6,782 |
Other foreign currency translation | 3,311 | (27,721) | 66,751 |
Total comprehensive income | $ 84,594 | $ 142,528 | $ 153,731 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Cash flow hedges adjustment, tax expense (benefit) | $ (193) | $ 32 | $ (10) |
Pension adjustment, tax (expense) | $ 409 | $ (347) | $ (778) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 21,153 | $ 31,901 |
Trade accounts receivable, less allowance for losses of $4,563 and $5,976, respectively | 213,201 | 255,350 |
Inventories | 422,517 | 490,757 |
Prepaid expenses and other current assets | 40,049 | 44,857 |
AssetsOfDisposalGroupIncludingDiscontinuedOperationCurrent | 91,293 | 0 |
Total current assets | 788,213 | 822,865 |
Other assets | 80,939 | 66,788 |
Deferred tax assets | 14,976 | 9,189 |
Intangible assets - at cost, less accumulated amortization of $9,738 and $20,325, respectively | 11,802 | 18,867 |
Goodwill | 407,042 | 416,175 |
Property, Plant and Equipment: | ||
Land | 31,431 | 36,787 |
Buildings | 298,733 | 318,463 |
Machinery and equipment | 652,063 | 688,003 |
Construction in progress | 24,613 | 34,772 |
Property, plant, and equipment, gross | 1,006,840 | 1,078,025 |
Less accumulated depreciation | (569,661) | (586,969) |
Property, plant, and equipment, net | 437,179 | 491,056 |
Total assets | 1,740,151 | 1,824,940 |
Current Liabilities: | ||
Trade accounts payable | 94,653 | 131,812 |
Accrued salaries, wages, and withholdings from employees | 18,655 | 23,410 |
Other accrued expenses | 41,429 | 31,198 |
Income taxes | 6,841 | 8,234 |
Short-term borrowings | 20,612 | 20,046 |
Liabilities held for sale | 19,185 | 0 |
Total current liabilities | 201,375 | 214,700 |
Deferred tax liabilities | 15,053 | 28,976 |
Other liabilities | 17,813 | 8,554 |
Accrued employee and retiree benefits | 25,822 | 23,210 |
Long-term debt | 598,499 | 689,553 |
Shareholders' Equity: | ||
Common stock, par value $0.10 a share, authorized 100,000,000 shares; issued 53,954,874 shares | 5,396 | 5,396 |
Additional paid-in capital | 98,425 | 101,663 |
Earnings reinvested in the business | 1,536,100 | 1,516,243 |
Treasury stock, 11,682,636 and 11,731,223 shares, respectively, at cost | (595,324) | (597,800) |
Accumulated other comprehensive loss | (163,008) | (165,555) |
Total shareholders' equity | 881,589 | 859,947 |
Total liabilities and shareholders' equity | $ 1,740,151 | $ 1,824,940 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Trade accounts receivable, allowance for losses | $ 4,563 | $ 5,976 |
Intangible assets, accumulated amortization | $ 9,738 | $ 20,325 |
Shareholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 53,954,874 | 53,954,874 |
Treasury stock, shares (in shares) | 11,682,636 | 11,731,223 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net earnings | $ 82,047 | $ 157,360 | $ 89,600 |
Adjustments to arrive at net cash provided by operating activities: | |||
Depreciation and amortization | 55,015 | 53,244 | 48,518 |
Share-based compensation (income) expense | (739) | 503 | 5,855 |
Net (gain) loss on assets | (1,122) | 63 | 2,552 |
Loss on divestitures | 44,375 | 0 | 33,160 |
Deferred income taxes | (19,340) | 9,844 | 17,414 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 10,930 | (96,638) | (130,835) |
Inventories | 25,238 | (34,114) | (47,345) |
Prepaid expenses and other assets | 3,257 | (12,544) | 14,072 |
Accounts payable and other accrued expenses | (18,251) | 7,457 | 4,804 |
Accrued salaries, wages and withholdings from employees | (3,039) | 599 | (4,361) |
Income taxes | (1,836) | (7,335) | 2,846 |
Other liabilities | 647 | 5,081 | 27 |
Net cash provided by operating activities | 177,182 | 83,520 | 36,307 |
Cash flows from investing activities: | |||
Acquisition of property, plant, and equipment | (39,100) | (50,740) | (56,344) |
Cash receipts on sold receivables | 0 | 91,142 | 141,465 |
Proceeds from sale of assets | 2,242 | 2,615 | 10,485 |
Proceeds from divesture of business | 0 | 0 | 12,457 |
Acquisition of new businesses | 0 | (31,100) | 0 |
Other investing activities | (553) | 2,916 | 2,319 |
Net cash (used in) provided by investing activities | (37,411) | 14,833 | 110,382 |
Cash Flows from Financing Activities | |||
Proceeds from additional borrowings | 47,083 | 322,529 | 231,174 |
Debt payments | (134,449) | (284,332) | (239,950) |
Purchase of treasury stock | 0 | (76,734) | (87,217) |
Dividends paid | (62,190) | (57,410) | (54,038) |
Other financing activities | (1,027) | (2,777) | (3,383) |
Net cash used in financing activities | (150,583) | (98,724) | (153,414) |
Effect of exchange rate changes on cash and cash equivalents | 64 | 2,928 | 10,204 |
Net (decrease) increase in cash and cash equivalents | (10,748) | 2,557 | 3,479 |
Cash and cash equivalents at beginning of year | 31,901 | 29,344 | 25,865 |
Cash and cash equivalents at end of year | 21,153 | 31,901 | 29,344 |
Cash paid during the year for: | |||
Interest | 20,130 | 21,567 | 19,523 |
Income taxes | 40,139 | 24,089 | 29,261 |
Capitalized interest | $ 540 | $ 604 | $ 486 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Earnings Reinvested in the Business [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total |
Beginning balance at Dec. 31, 2016 | $ 5,396 | $ 107,686 | $ 1,378,923 | $ (442,799) | $ (213,465) | |
Beginning balance (in shares) at Dec. 31, 2016 | 9,716,504 | |||||
Net earnings | 89,600 | $ 89,600 | ||||
Other comprehensive income (loss) | 64,131 | |||||
Cash dividends paid | (54,038) | |||||
Share-based compensation | 5,855 | |||||
Stock options exercised | (202) | $ 499 | ||||
Stock options exercised (in shares) | (10,667) | |||||
Non-vested stock issued upon vesting | (5,478) | $ 5,478 | ||||
Non-vested stock issued upon vesting (in shares) | (114,393) | |||||
Benefit plans | 445 | $ 596 | ||||
Benefit plans (in shares) | (12,999) | |||||
Purchase of treasury stock | $ (87,217) | |||||
Purchase of treasury stock (in shares) | 1,139,734 | |||||
Other | (1,130) | $ (1,979) | ||||
Other (in shares) | 41,112 | |||||
Ending balance at Dec. 31, 2017 | 5,396 | 107,176 | 1,414,485 | $ (525,422) | (149,334) | |
Ending balance (in shares) at Dec. 31, 2017 | 10,759,291 | |||||
Net earnings | 157,360 | 157,360 | ||||
Other comprehensive income (loss) | (14,832) | |||||
Cash dividends paid | (57,410) | |||||
Share-based compensation | 503 | |||||
Stock options exercised | (80) | $ 200 | ||||
Stock options exercised (in shares) | (4,000) | |||||
Non-vested stock issued upon vesting | (5,454) | $ 5,454 | ||||
Non-vested stock issued upon vesting (in shares) | (111,185) | |||||
Benefit plans | 350 | $ 769 | ||||
Benefit plans (in shares) | (15,126) | |||||
Purchase of treasury stock | $ (76,734) | |||||
Purchase of treasury stock (in shares) | 1,060,000 | |||||
Other | (832) | 1,808 | $ (2,067) | (1,389) | ||
Other (in shares) | 42,243 | |||||
Ending balance at Dec. 31, 2018 | 5,396 | 101,663 | 1,516,243 | $ (597,800) | (165,555) | $ 859,947 |
Ending balance (in shares) at Dec. 31, 2018 | 11,731,223 | 11,731,223 | ||||
Net earnings | 82,047 | $ 82,047 | ||||
Other comprehensive income (loss) | 2,547 | |||||
Cash dividends paid | (62,190) | |||||
Share-based compensation | (739) | |||||
Non-vested stock issued upon vesting | (2,343) | $ 2,343 | ||||
Non-vested stock issued upon vesting (in shares) | (45,981) | |||||
Benefit plans | 72 | $ 948 | ||||
Benefit plans (in shares) | (18,597) | |||||
Other | (228) | $ (815) | ||||
Other (in shares) | 15,991 | |||||
Ending balance at Dec. 31, 2019 | $ 5,396 | $ 98,425 | $ 1,536,100 | $ (595,324) | $ (163,008) | $ 881,589 |
Ending balance (in shares) at Dec. 31, 2019 | 11,682,636 | 11,682,636 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 1.47 | $ 1.35 | $ 1.23 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Operations Sensient Technologies Corporation, together with its subsidiaries (the Company or Sensient), is a leading global manufacturer and marketer of colors, flavors, and fragrances. The Company uses advanced technologies at facilities around the world to develop specialty food and beverage systems; cosmetic, fragrances, pharmaceutical, and nutraceutical systems; specialty inks and colors; and other specialty and fine chemicals. In October 2019, the Company announced its intent to divest its inks, fragrances (excluding its essential oils product line), and fruit preparation product lines. The Company anticipates that it will complete sales and exit activities of those product lines in 2020. divestiture & other related costs, share-based compensation, restructuring and other costs are included in the “Corporate & Other” category. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets, liabilities, revenue, and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. Revenue Recognition The Company recognizes revenue at the transfer of control of its products to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve this core principle, the Company applies the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies the performance obligations The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. For each contract, the Company considers the identified performance obligation to be the promise to transfer products. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment and then determines the net consideration to which the Company expects to be entitled. In addition, the Company assesses the customer’s ability to pay as part of its evaluation of the contract. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under Accounting Standards Codification (ASC) 606-10-32-18, and determined that its contracts do not have a significant financing component. The Company allocates the transaction price to each distinct product based on the relative standalone selling price. Revenue is recognized when control of the product is transferred to the customer, the customer is obligated to pay the Company, and the Company has no remaining obligations, which is typically at shipment. In certain locations, primarily outside the United States, product shipping terms may vary. Thus, in such locations, the point at which control of the product transfers to the customer and revenue recognition occurs will vary accordingly. Customer returns of non-conforming products are estimated at the time revenue is recognized. In certain customer relationships, volume rebates exist, which are recognized according to the terms and conditions of the contractual relationship. Customer returns, rebates, and discounts are not material to the Company’s consolidated financial statements. The Company has elected to recognize the revenue and cost for freight and shipping when control over the products has transferred to the customer. The Company has elected to immediately expense contract costs related to obtaining a contract as the amortization period of the asset the Company otherwise would have recognized would have been less than a year. In addition to evaluating the Company’s performance based on the segments above, revenue is also disaggregated and analyzed by product line and geographic market (See Note 12, Segment and Geographic Information, for further information) . Cost of Products Sold Cost of products sold includes materials, labor, and overhead expenses incurred in the manufacture of our products. Cost of products sold also includes charges for obsolete and slow-moving inventories, as well as costs for quality control, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, other costs of our internal distribution network, and costs incurred for shipping and handling. The Company records fees billed to customers for shipping and handling as revenue. Selling and Administrative Expenses Selling and administrative expenses primarily include the salaries and related costs for executive, finance, accounting, human resources, information technology, research and development, and legal personnel as well as salaries and related costs of salespersons and commissions paid to external sales agents. Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of acquisition as cash equivalents. Accounts Receivable Receivables are recorded at their face amount, less an allowance for losses on doubtful accounts. The allowance for doubtful accounts is based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Specific accounts are written off against the allowance for doubtful accounts when it is deemed that the receivable is no longer collectible. Inventories Inventories are stated at the lower of cost or net realizable value. Net realizable value is determined on the basis of estimated realizable values. Cost is determined using the first-in, first-out (FIFO) method with the exception of certain locations of the Flavors & Fragrances Group where cost is determined using a weighted average method. Inventories include finished and in-process products totaling $313.1 million and $320.4 million at December 31, 2019 and 2018, respectively, and raw materials and supplies of $109.4 million and $170.4 million at December 31, 2019 and 2018, respectively. In the fourth quarter of 2019, the Company recorded a non-cash charge of $ 9.8 million, in Cost of products sold related to the fruit preparation anticipated divestiture. The non-cash charge reduced the carrying value of certain inventories, as they were determined to be excess based on changes in assumptions as of December 31, 2019. See Note 15, Divestitures , for additional information. Property, Plant, and Equipment Property, plant, and equipment are recorded at cost reduced by accumulated depreciation. Depreciation is provided over the estimated useful life of the related asset using the straight-line method for financial reporting. The estimated useful lives for buildings and leasehold improvements range from 5 to 40 years. Machinery and equipment have estimated useful lives ranging from 3 to 20 years. Interest costs on significant projects constructed or developed for the Company’s own use are capitalized as part of the asset. Goodwill and Other Intangible Assets The carrying value of goodwill is evaluated for impairment on an annual basis or more frequently when an indicator of impairment occurs. The impairment assessment includes comparing the carrying amount of net assets, including goodwill, of each reporting unit to its respective fair value as of the date of the assessment. Fair value was estimated based upon an evaluation of the reporting unit’s estimated future discounted cash flows as well as the public trading and private transaction valuation multiples for comparable companies. The Company performed such a quantitative analysis in 2019, which indicated a substantial premium compared to the carrying value of net assets, including goodwill, at the reporting unit level. The Company met the assets held for sale criteria in the fourth quarter of 2019 for its inks and fragrances (excluding essential oils product line) product lines, resulting in $ million of goodwill being allocated to those disposal groups. The allocated goodwill related to those disposal groups was determined to be fully impaired, based on the estimated fair values for both disposal groups. See Note 15, Divestitures , for additional information. The cost of intangible assets with determinable useful lives is amortized on a straight-line basis to reflect the pattern of economic benefits consumed, ranging from 5 to 20 years. These assets include technological know-how, customer relationships, patents, trademarks, and non-compete agreements, among others. Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if potential impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on the difference between fair value and carrying value. Impairment losses were recorded as a result of the Company’s anticipated divestitures of its inks and fragrances (excluding its essential oils product line) product lines. See Note 15 , Divestitures , for additional information. Derivative Financial Instruments The Company selectively uses derivative financial instruments to reduce market risk associated with changes in foreign currency and interest rate exposures which exist as part of ongoing business operations. All derivative transactions are authorized and executed pursuant to the Company’s risk management policies and procedures, which strictly prohibit the use of financial instruments for speculative trading purposes. The primary objectives of the foreign exchange risk management activities are to understand and mitigate the impact of potential foreign exchange fluctuations on the Company’s financial results and its economic well-being. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. These risk management transactions may involve the use of foreign currency derivatives to protect against exposure resulting from recorded accounts receivable and payable. The Company may utilize forward exchange contracts, generally with maturities of less than 18 months, which qualify as cash flow hedges. Generally these foreign exchange contracts are intended to offset the effect of exchange rate fluctuations on non-functional currency denominated sales and purchases. For derivative instruments that are designated as cash flow hedges, gains and losses are deferred in accumulated other comprehensive income (OCI) until the underlying transaction is recognized in earnings. For hedges designated as cash flow hedges, the Company elects critical terms that match at the onset of the hedge transaction. Hedge accounting is permitted only if the hedge meets the critical terms match requirements. The Company reviews the critical terms at each effectiveness testing date to ensure the respective terms match; therefore, achieving a highly effective hedge. Interest Rate Hedging The Company is exposed to interest rate risk through its corporate borrowing activities. The objective of the Company’s interest rate risk management activities is to manage the levels of the Company’s fixed and floating interest rate exposure to be consistent with the Company’s preferred mix. The interest rate risk management program may include entering into interest rate swaps, which qualify as fair value hedges, when there is a desire to modify the Company’s exposure to interest rates. Gains or losses on fair value hedges are recognized in earnings, net of gains and losses on the fair value of the hedged instruments. Net Investments Hedging The Company is exposed to risk related to its net investments in foreign subsidiaries. As part of its risk management activities, the Company may enter into foreign-denominated debt to be used as a non-derivative instrument to hedge the Company’s net investment in foreign subsidiaries. The change in the fair value of debt designated as a net investment hedge is recorded in foreign currency translation in OCI. Commodity Purchases The Company purchases certain commodities in the normal course of business that result in physical delivery of the goods and, hence, are excluded from ASC 815, Derivatives and Hedging Translation of Foreign Currencies For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of foreign operations are translated into U.S. dollars at current exchange rates. Revenue and expense accounts are translated into U.S. dollars at average exchange rates prevailing during the year. Adjustments resulting from the translation of foreign accounts into U.S. dollars are recorded in foreign currency translation in OCI. Transaction gains and losses that occur as a result of transactions denominated in non-functional currencies are included in earnings and were not significant during the years ended December 31, 2019, 2018, and 2017. Share-Based Compensation Share-based compensation expense is recognized over the vesting period of each award based on the fair value of the instrument at the time of grant as summarized in Note 6, Share-Based Compensation. Income Taxes The Company recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax liability or asset for the estimated future tax effects attributable to temporary differences and carryforwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Deferred tax assets are reduced, if necessary, by the amount of any tax benefits for which the utilization of the asset is not considered likely. Earnings Per Share The difference between basic and diluted earnings per share (EPS) is the dilutive effect of stock options and non-vested stock. Diluted EPS assumes that non-vested stock has vested and all dilutive stock options, for which the average market price exceeds the exercise price (in-the-money), are exercised. Stock options for which the exercise price exceeds the average market price (out-of-the-money) have an anti-dilutive effect on EPS, and accordingly, are excluded from the calculation. The following table sets forth the computation of basic and diluted EPS for the years ended December 31: Years Ended December 31, (in thousands except per share amounts) 2019 2018 2017 Numerator: Net earnings $ 82,047 $ 157,360 $ 89,600 Denominator: Denominator for basic EPS - weighted average common shares 42,263 42,404 43,780 Effect of dilutive securities 31 95 251 Denominator for diluted EPS - diluted weighted average shares outstanding 42,294 42,499 44,031 Earnings per Common Share Basic $ 1.94 $ 3.71 $ 2.05 Diluted $ 1.94 $ 3.70 $ 2.03 The Company has a share-based compensation plan under which employees may be granted share-based awards in which non-forfeitable dividends are paid on non-vested shares for certain awards. As such, these shares are considered participating securities under the two-class method of calculating EPS as described in ASC 260, Earnings per Share. In 2019, 2018, and 2017, there were no anti-dilutive stock options. All EPS amounts are presented on a diluted basis unless otherwise noted. Accumulated Other Comprehensive Income (Loss) Accumulated OCI is composed primarily of foreign currency translation, pension liability, and unrealized gains or losses on cash flow hedges. See Note 10, Accumulated Other Comprehensive Income, Research and Development Research and development costs are recorded in S elling and administrative expenses in the year they are incurred. Research and development costs were $ million, $ million, and $ million during the years ended December 31, 2019, 2018, and 2017, respectively. Advertising Advertising costs are recorded in Selling and administrative expenses as they are incurred. Advertising costs were $ million, $ million, and $ million during the years ended December 31, 2019, 2018, and 2017, respectively. Environmental Liabilities The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and reasonably estimable. Such accruals are adjusted as further information becomes available or as circumstances change. Estimated future expenditures are discounted to their present value when the timing and amount of future cash flows are fixed and readily determinable. Recoveries of remediation costs from other parties, if any, are recognized as assets when their receipt is realizable. Subsequent Events The Company performed an evaluation of subsequent events through the date these financial statements were issued. See Note 17, Subsequent Events Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) , which requires lessees to recognize the lease assets and liabilities that arise from leases on the balance sheet and to disclose qualitative and quantitative information about lease transactions. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , which provides an additional transition method allowing entities to apply the new lease standard at the adoption date. The Company adopted each of these standards in the first quarter of 2019 using the optional transition method allowed under ASU No. 2018-11. The Company elected the following practical expedients permitted within the standard: 1. The Company will not re-assess an expired or existing contract to determine if it is a lease or contains a lease. 2. The Company will not re-assess the lease classification for an existing lease based on the new standard’s lease classification criteria. 3. The Company will not re-assess the accounting treatment for initial direct costs on existing leases based on the new standard’s guidance. 4. The Company will account for the lease and non-lease components as a single lease component for all leases. The adoption of this standard resulted in the recognition of $ million in right-of-use assets and lease liabilities for operating leases as of January 1, 2019. The adoption of this standard did not have an impact on the Company’s Consolidated Statements of Earnings, or to cash provided by or used in operating, financing, or investing activities on the Company’s Consolidated Statements of Cash Flows. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which expands an entity’s ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. This guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line item as the hedged item. This ASU is effective for fiscal years and interim periods beginning after December 15, 2018. The Company adopted this standard in the first quarter of 2019, and the adoption did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the current incurred loss impairment model with a methodology that reflects expected credit losses. Under the new methodology, entities will be required to measure expected credit losses on financial instruments held at amortized cost, including trade receivables, based on historical experience, current conditions, and reasonable forecasts. Adoption of this guidance is required for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. For most instruments, entities must apply the standard using a cumulative effect adjustment to beginning retained earnings as of the beginning of the fiscal year of adoption. The Company has established a project plan and an implementation team to adopt and apply the new standard. The Company is in the process of implementing necessary changes to accounting policies, processes, and controls, to enable compliance with this new standard. The Company’s current estimate of the impact of this ASU on the Company’s Consolidated Financial Statements is an increase to the allowance for losses on Trade accounts receivable in the range of $ million to $ million. The Company will finalize the adjustment and the impact on the Company’s Consolidated Financial Statements and related disclosures in the first quarter 2020. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates step two of the current goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. This standard will be applied prospectively and is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not expect this standard to have a material impact on its financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , which changes the requirements for fair value measurements by removing, modifying, and adding certain disclosures. Adoption of this guidance is required for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the expected impact of this standard. In August 2018, the FASB issued ASU No. 2018-14, D isclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans Subtopic 715-20 , which amends ASC 715-20, Compensation – Retirement Benefits – Defined Benefit Plans – General . This standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The effective date is January 1, 2021, with early adoption permitted. The Company is currently evaluating the potential impact of this standard on its disclosures. Other recently issued accounting pronouncements are not expected to have a material impact on the Company's consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions [Abstract] | |
Acquisitions | 2. Acquisitions On March 9, 2018, the Company completed the acquisition of certain net assets and the natural color business of GlobeNatural , a company based in Lima, Peru. The Company paid $ million of cash for this acquisition. The assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date. The Company acquired net assets of $ million and identified intangible assets, principally customer relationships of $ million, and allocated the remaining $ million to goodwill. These operations are included in the Color segment. On July 10, 2018, the Company completed the acquisition of Mazza Innovation Limited ( now known as Sensient Natural Extraction Inc .), a botanical extraction business with patented solvent-free extraction processes, located in Vancouver, Canada. This business was included in Corporate & Other in 2018. Beginning in the first quarter of 2019, the results of operations of this business are now reported in the Color segment. The results for 2018 have been restated to reflect this change. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets At December 31, 2019 and 2018, goodwill is the only intangible asset that is not subject to amortization. The following table summarizes intangible assets with determinable useful lives by major category as of December 31, 2019 and 2018: 2019 2018 (In thousands except weighted average amortization years) Weighted Average Amortization Years Cost Accumulated Amortization Cost Accumulated Amortization Technological know-how 17.8 $ 7,570 $ (1,391 ) $ 14,570 $ (6,768 ) Customer relationships 13.6 3,474 (1,653 ) 8,761 (5,673 ) Patents, trademarks, non-compete agreements, and other 15.5 10,496 (6,694 ) 15,861 (7,884 ) Total finite-lived intangibles 16.0 $ 21,540 $ (9,738 ) $ 39,192 $ (20,325 ) In 2019, $ million of intangible assets ($ million of cost and $ million of accumulated amortization) was moved to Assets held for sale on the Consolidated Balance Sheet as a result of the anticipated divestitures. See Note 15, Divestitures , for additional information. Amortization of intangible assets was $2.9 million in 2019, $2.3 million in 2018, and $1.6 million in 2017. Estimated amortization expense, for the five years subsequent to December 31, 2019, is $1.8 million in 2020, 2021, and 2022; $1.5 million in 2023; and $1.3 million in 2024. The changes in goodwill for the years ended December 31, 2019 and 2018, by reportable business segment, were as follows: (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Balance as of December 31, 2017 $ 112,977 $ 290,889 $ 5,129 $ 408,995 Currency translation impact (891 ) (8,269 ) 52 (9,108 ) Acquisitions — 16,288 — 16,288 Balance as of December 31, 2018 $ 112,086 $ 298,908 $ 5,181 $ 416,175 Currency translation impact (184 ) (641 ) 77 (748 ) Goodwill related to divestitures (1) (3,754 ) (4,631 ) — (8,385 ) Balance as of December 31, 2019 $ 108,148 $ 293,636 $ 5,258 $ 407,042 (1) In the fourth quarter of 2019, the Company met all of the assets held for sale criteria related to the anticipated divestitures of its inks and fragrances (excluding its essential oils product line) product lines. Goodwill of $ million was allocated to those disposal groups and was determined to be fully impaired based on the estimated fair value of each of the disposal groups. See Note 15, Divestitures , for additional information. In July 2018, the Company completed the acquisition of Sensient Natural Extraction Inc ., which resulted in $ million of goodwill (See Note 2, Acquisitions , for further information). This business was included in Corporate & Other in 2018. Beginning in the first quarter of 2019, the results of operations of this business are now reported in the Color segment. In addition, certain other reclassifications between reportable business segments have been made to conform to the current year presentation. The results for 2017 and 2018 have been reclassified to reflect these changes. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt [Abstract] | |
Debt | 4. Debt Long-term Debt Long-term debt consisted of the following unsecured obligations at December 31: (in thousands) 2019 2018 3.66% senior notes due November 2023 $ 75,000 $ 75,000 3.65% senior notes due May 2024 27,000 27,000 4.19% senior notes due November 2025 25,000 25,000 1.27% Euro-denominated senior notes due May 2024 56,066 57,333 1.71% Euro-denominated senior notes due May 2027 44,853 45,866 3.06% Euro-denominated senior notes due November 2023 42,887 43,856 1.85% Euro-denominated senior notes due November 2022 74,968 76,662 2.53% British Pound-denominated notes due November 2023 33,143 31,884 2.76% British Pound-denominated notes due November 2025 33,143 31,884 Term loan 51,438 132,313 Revolving Credit Facilities 134,393 142,061 Various other notes 783 923 598,674 689,782 Less debt fees (175 ) (229 ) Total long-term debt $ 598,499 $ 689,553 In October 2019, the Company amended its accounts receivable securitization program with Wells Fargo Bank N.A. (Wells Fargo) to reduce the program amount from $ million to $ million. Under the amended program, Wells Fargo has extended a secured loan (Secured Loan) of up to $ million to the Company secured by Wells Fargo’s undivided interests in certain of the Company’s trade accounts receivables. The interest rate on the Secured Loan is LIBOR plus . The Company has the intent and ability either to repay the Secured Loan with available funds from the Company’s existing long-term revolving credit facility, or to extend its accounts receivable program with Wells Fargo when it matures. Accordingly, the Secured Loan has been classified as long-term debt on the Company’s Consolidated Balance Sheet and is included with the Revolving Credit Facilities above. As of December 31, 2019, the amount was fully drawn. In July 2018, the Company borrowed 50 million British Pounds and 45 million Euros under its revolving credit facility to act as a partial hedge of the Company’s net asset positions in British Pounds and Euros. See Note 5, Derivatives and Hedging Activity, In November 2018, the Company replaced the 50 million British Pounds revolver borrowing with 50 million British Pounds of private placement notes. The two notes were issued for 25 million British Pounds each, maturing in November 2023 and November 2025, and bearing interest rates of 2.53% and 2.76%, respectively. At the same time, the Company issued $25 million of private placement notes, maturing in November 2025, and bearing an interest rate of 4.19%, the proceeds of which were used to repay maturing private placement debt. In May 2017, the Company executed an amended and restated credit agreement with a syndicate of banks to, among other things, (a) increase Sensient’s term loan facility by $ million (from $ million to $ million), (b) extend the maturity of Sensient’s $ million multi-currency revolving credit facility from November 2020 to May 2022 , and (c) modify certain other provisions of the credit agreement as set forth therein. At December 31, 2019, the Company’s term loan borrowings total $ million, with repayments continuing into 2022. Borrowings under both the revolving credit and term loan facilities bear interest at a variable rate, based upon the applicable reference rate and including a margin percentage dependent upon the Company’s leverage ratio, as described below. The borrowings under the Term Loan had an average interest rate of 3.83% and 3.48% for the years ended December 31, 2019 and 2018, respectively. The borrowings under the Revolving Credit Facility, excluding borrowings on the accounts receivable securitization program, had The aggregate amounts of contractual maturities on long-term debt subsequent to December 31, 2019, are as follows: 2020, $128.3 million; 2021, $14.6 million; 2022, $118.3 million; 2023, $151.2 million; 2024, $83.2 million; and thereafter, $102.9 million. The Company has approximately $12.8 million of long-term term loan debt and $50.5 million of debt outstanding on an uncommitted Euro revolving credit facility that mature in 2020. The Company is able and intends to refinance these maturities under the long-term revolving credit facility. Accordingly, that maturing debt has been classified as long-term debt in the Consolidated Balance Sheet. The Company had $319.5 million available under the revolving credit facility and $58.1 million available under other lines of credit from several banks at December 31, 2019. Substantially all of the senior financing obligations contain restrictions concerning interest coverage, borrowings, and investments. The Company is in compliance with all of these restrictions at December 31, 2019. The following table summarizes the Company’s most restrictive loan covenants calculated in accordance with the applicable agreements as of December 31, 2019: Actual Required Debt to EBITDA (1) 2.86 <3.50 Interest Coverage (Minimum) 5.25 >2.00 (1) Debt to EBITDA is defined in the Company’s debt covenants as total funded debt divided by the Company’s consolidated operating income excluding non-operating gains and losses and depreciation and amortization. The Company had stand-by and trade letters of credit outstanding of $2.6 million and $6.4 million as of December 31, 2019 and 2018, respectively. Short-term Borrowings The Company’s short-term borrowings consisted of the following items at December 31: (in thousands) 2019 2018 U.S. credit facilities $ 20,280 $ 19,768 Loans of foreign subsidiaries 332 278 Total $ 20,612 $ 20,046 The weighted average interest rates on short-term borrowings were 2.53% and 3.24% at December 31, 2019 and 2018, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activity [Abstract] | |
Derivative Instruments and Hedging Activity | 5. Derivative Instruments and Hedging Activity The Company may use derivative instruments for the purpose of hedging currency, commodity, and interest rate exposures, which exist as part of ongoing business operations. As a policy, the Company does not engage in speculative or leveraged transactions, nor does the Company hold or issue financial instruments for trading purposes. Hedge effectiveness is determined by how closely the changes in the fair value of the hedging instrument offset the changes in the fair value or cash flows of the hedged transaction. Hedge accounting, which generally results in the deferral of derivative gains and losses until such time as the underlying transaction is recognized in net earnings, is permitted only if the hedging relationship is expected to be highly effective at the inception of the transaction and on an ongoing basis. The Company manages its exposure to foreign exchange risk by the use of forward exchange contracts to reduce the effect of fluctuating foreign currencies on non-functional currency sales, purchases, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company also uses certain debt denominated in foreign currencies to manage the net asset positions of the Company’s foreign subsidiaries. The Company’s primary hedging activities and their accounting treatment are summarized below: Forward Exchange Contracts Certain forward exchange contracts have been designated as cash flow hedges. The Company had $59.9 million and $76.0 million of forward exchange contracts, designated as cash flow hedges, outstanding as of December 31, 2019 and 2018, respectively. As of December 31, 2019, the amount deferred in OCI was not material. For the years ended December 31, 2019 and 2018, the amounts reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the earnings impact of the related non-functional asset or liability hedged in the same period were not material. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges and the results of these transactions are not material to the financial statements. Net Investment Hedges The Company has certain debt denominated in Euros, Swiss Francs, and British Pounds. These debt instruments have been designated as partial hedges of the Company’s Euro, Swiss Franc, and British Pound net asset positions. Changes in the fair value of this debt attributable to changes in the spot foreign exchange rate are recorded in foreign currency translation in OCI. As of December 31, 2019 and 2018, the total value of the Company’s Euro, Swiss Franc, and British Pound debt designated as net investment hedges was $363.4 million and $366.5 million, respectively. The impact of foreign exchange rates on these debt instruments has decreased debt by $3.1 million and $13.7 million for the years ended December 31, 2019 and 2018, respectively. These amounts have been recorded as foreign currency translation in OCI. Concentrations of Credit Risk Counterparties to forward exchange contracts consist of large international financial institutions. While these counterparties may expose the Company to potential losses due to the credit risk of non-performance, losses are not anticipated. Concentrations of credit risk with respect to trade accounts receivable are limited by the large number of customers, generally short payment terms, and their dispersion across geographic areas. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 6. Share-Based Compensation The Company has various stock plans under which employees and directors may be granted non-vested stock which vests over a specific time period. The Company's 2017 Stock Plan was approved in April 2017 and authorized 1.8 million shares to be granted as non-vested stock in the form of restricted stock, restricted stock units, non-qualified stock options or incentive stock options, and stock appreciation rights. As of December 31, 2019, there were 1.4 million shares available to be granted as non-vested stock under the Company’s existing stock plans. Expense for shares of non-vested stock is recognized over the vesting period with a pro-rata vesting upon retirement. The vesting period is three years beginning with awards granted in December 2013. During the period of restriction, the holder of non-vested stock has voting rights and is entitled to receive all dividends and other distributions paid with respect to the stock. The grants issued after December 2013, to elected officers, consist of 100% performance stock unit awards which are based on a three-year performance and vesting period and a pro-rata vesting upon retirement. Three-year performance that exceeds the stated performance metrics would result in an award up to 150% of the original grant, except for the grant issued in December 2019, which would result in an award up to of the original grant for three year performance that exceeds the stated performance metrics. The Company expenses awards for non-vested stock, including time-vesting stock and performance stock units, based on the fair value of the Company’s common stock at the date of the grant. The following table summarizes the non-vested stock and performance stock unit activity: (In thousands except fair value) Shares Grant Date Weighted Average Fair Value Aggregate Intrinsic Value Outstanding at December 31, 2016 435 $ 56.44 $ 34,184 Granted 115 74.26 Vested (114 ) 39.75 Cancelled (24 ) 63.62 Outstanding at December 31, 2017 412 65.64 30,113 Granted 142 59.45 Vested (111 ) 56.91 Cancelled (63 ) 64.71 Outstanding at December 31, 2018 380 66.02 21,239 Granted 134 60.04 Vested (46 ) 63.61 Cancelled (64 ) 62.39 Outstanding at December 31, 2019 404 $ 64.89 $ 26,710 The total intrinsic values of shares vested during 2019, 2018, and 2017, was $3.0 million, $7.7 million, and $8.8 million, respectively. As of December 31, 2019, total remaining unearned compensation, net of expected forfeitures, related to non-vested stock and performance stock units was $10.7 million, which will be amortized over the weighted average remaining service period of 2.54 years. Total pre-tax share-based compensation recognized in the Consolidated Statements of Earnings was $(0.7) million, $0.5 million, and $5.9 million in 2019, 2018, and 2017, respectively. Tax related (costs) benefits of $(0.2) million, $(0.3) million, and $0.5 million were also recognized in 2019, 2018, and 2017, respectively. During the year ended December 31, 2019, the Company determined that it was not probable that it would meet the stated performance metrics related to certain performance-based awards resulting in an adjustment of share-based compensation of $ million. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Plans [Abstract] | |
Retirement Plans | 7. Retirement Plans The Company provides benefits under defined contribution plans including a savings plan and an employee stock ownership plan (ESOP). The savings plan covers substantially all domestic salaried and certain non-union hourly employees and provides for matching contributions up to 4% of each employee’s salary. The ESOP covers substantially all domestic employees and provides for contributions based on a percentage of each employee’s compensation as determined by the Company’s Board of Directors. Total expense for the Company’s defined contribution plans was $6.0 million in 2019, 2018, and 2017. Although the Company intends for these defined contribution plans to be the primary retirement benefit for most employees, the Company also has several defined benefit plans. The funded status of the defined benefit plans was as follows at December 31: (in thousands) 2019 2018 Benefit obligation at beginning of year $ 34,152 $ 37,757 Service cost 1,432 1,465 Interest cost 1,273 1,137 Foreign currency exchange rate changes 558 (761 ) Benefits paid (1,899 ) (2,480 ) Amendments - 145 Actuarial loss (gain) 3,905 (3,111 ) Benefit obligation at end of year 39,421 34,152 Plan assets at beginning of year 28,299 31,768 Company contributions 1,086 886 Foreign currency exchange rate changes 968 (1,315 ) Benefits paid (1,899 ) (2,480 ) Actual gain (loss) on plan assets 3,322 (560 ) Plan assets at end of year 31,776 28,299 Funded status $ (7,645 ) $ (5,853 ) Accumulated benefit obligation $ 38,596 $ 33,562 Amounts recognized in the Consolidated Balance Sheets at December 31: (in thousands) 2019 2018 Accrued employee and retiree benefits $ (17,143 ) $ (15,245 ) Other accrued expenses (710 ) (779 ) Other assets 10,208 10,171 Net liability $ (7,645 ) $ (5,853 ) Components of annual benefit cost: (In thousands) 2019 2018 2017 Service cost $ 1,432 $ 1,465 $ 1,939 Interest cost 1,273 1,137 1,222 Expected return on plan assets (896 ) (896 ) (892 ) Recognized actuarial gain (176 ) (141 ) (187 ) Settlement (income) expense - (179 ) 3,796 Defined benefit expense $ 1,633 $ 1,386 $ 5,878 Weighted average liability assumptions as of December 31: 2019 2018 Discount rate 2.69 % 3.80 % Expected return on plan assets 2.68 % 3.21 % Rate of compensation increase 0.34 % 0.31 % Weighted average cost assumptions for the year ended December 31: 2019 2018 Discount rate 3.80 % 3.16 % Expected return on plan assets 3.21 % 3.03 % Rate of compensation increase 0.31 % 0.33 % In 2017, one of the Company’s defined benefit plans was terminated. The plan was associated with two facilities which were closed under the Company’s 2014 Restructuring Plan. As a result, the pension benefit obligation was settled by making lump-sum cash payments to certain participants and also purchasing nonparticipating annuity contracts to cover the remaining vested benefits. As a result of the plan’s termination, the Company recognized $3.8 million of settlement expense in 2017, which has been recorded in the Company’s restructuring and other costs. The aggregate amounts of benefits expected to be paid from defined benefit plans in each of the next five years subsequent to December 31, 2019, which include employees’ expected future service, are as follows: 2020, $1.7 million; 2021, $ 1.7 million; 2022, $4.2 million; 2023, $1.8 million; 2024, $4.1 million; and $12.5 million in total for the years 2025 through 2029. The Company expects to contribute $1.1 million to defined benefit plans in 2020. Amounts in accumulated other comprehensive loss at December 31 were as follows: (In thousands) 2019 2018 Unrecognized net actuarial loss (gain) $ 683 $ (901 ) Prior service cost 146 145 Total before tax effects $ 829 $ (756 ) The pension adjustments, net of tax, recognized in OCI, were as follows: (In thousands) 2019 2018 2017 Net actuarial (loss) gain arising during the period $ (1,091 ) $ 1,257 $ 921 Prior service cost - (127 ) - Amortization of actuarial (gain) loss, included in defined benefit expense (130 ) (103 ) 1,307 Pension adjustment, net of tax $ (1,221 ) $ 1,027 $ 2,228 The estimated actuarial loss for the defined benefit plans that will be amortized from accumulated other comprehensive loss into periodic benefit cost during 2020 is $0.1 million. The investment objectives and target allocations for the Company’s pension plans related to the assets of the plans are reviewed on a regular basis. The investment objectives for the pension assets are to maximize the return on assets while maintaining an overall level of risk appropriate for a retirement fund and ensuring the availability of funds for the payment of retirement benefits. The levels of risk assumed by the pension plans are determined by market conditions, the rate of return expectations, and the liquidity requirements of each pension plan. The actual asset allocations of each pension plan are reviewed on a regular basis to ensure that they are in line with the target allocations. The following table presents the Company’s pension plan assets by asset category as of December 31, 2019 and 2018: Fair Value as of December 31, Fair Value Measurements at December 31, 2019 Using Fair Value Hierarchy Fair Value as of December 31, Fair Value Measurements at December 31, 2018 Using Fair Value Hierarchy (in thousands) 2019 Level 1 Level 2 Level 3 2018 Level 1 Level 2 Level 3 Equity Funds Domestic $ 6,003 $ 6,003 $ - $ - $ 5,385 $ 5,385 $ - $ - International 104 - 104 - 83 - 83 - International Fixed Income Funds 25,556 1,269 24,287 - 22,703 1,111 21,592 - Other investments 113 79 34 - 128 47 81 - Total assets at fair value $ 31,776 $ 7,351 $ 24,425 $ - $ 28,299 $ 6,543 $ 21,756 $ - The Company is required to categorize pension plan assets based on the following fair value hierarchy: Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data. Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 8. Leases The Company leases certain office space, warehouses, land, and equipment under operating lease arrangements. Some of the Company’s leases include options to extend the leases for up to an additional five years. Some of the Company’s lease agreements also include rental payments that are adjusted periodically for inflation (i.e., CPI index). The Company recorded operating lease expense, which includes short-term lease expense and variable lease costs, of during the year ended December Rent expense totaled and during the years ended December and respectively. For the year ended December the Company paid in cash for operating leases, not including short-term lease expense or variable lease costs. The Company entered into operating leases that resulted in of right-of-use assets in exchange for operating lease obligations for the year ended December The Company included and of right-of-use assets in Assets held for sale and Other assets , respectively, and , , and of operating lease liabilities in Liabilities held for sale , Other accrued expenses , and Other liabilities , respectively, on the Company’s Consolidated Balance Sheets as of December The Company’s weighted average remaining operating lease term was years as of December The Company’s weighted average discount rate for operating leases was as of December As of December 31, 2019, maturities of operating lease liabilities for future annual periods are as follows: (in s) Year ending December 2020 $ 8,429 2021 4,969 2022 2,641 2023 1,582 2024 1,187 Thereafter 1,517 Total lease payments 20,325 Less imputed interest (1,470 ) Present value of lease liabilities $ 18,855 |
Accounts Receivable Securitizat
Accounts Receivable Securitization | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable Securitization [Abstract] | |
Accounts Receivable Securitization | 9. Accounts Receivable Securitization In October the Company entered into an accounts receivable securitization program with Wells Fargo, whereby transactions under the program were accounted for as sales of trade receivables between October and June in accordance with ASC Topic Transfers and Servicing (ASC Topic . Sales of trade receivables under the program were recorded as a reduction of accounts receivable in the Consolidated Balance Sheet. In June 2018, the Company amended its securitization program with Wells Fargo (Amendment). Following the Amendment, the Company no longer accounts for the sales of the trade receivables in accordance with ASC Topic 860 and instead now maintains the trade receivables and related debt on its Consolidated Balance Sheet. In connection with the Amendment, Wells Fargo’s existing ownership interest in the trade receivables was converted into undivided interests in the trade receivables to secure a loan of up to $60 million to the Company and the deferred purchase price was eliminated. As a result of the Amendment, the Company’s trade account receivables increased by $60 million and the Company’s long-term debt increased by $60 million. This non-cash transaction did not impact the Company’s Consolidated Statement of Cash Flows during the year ended December 31, 2018. In October 2018, the Company further amended the accounts receivable securitization program to increase the commitment size from $60 million to $70 million. In October the Company further amended the accounts receivable securitization program to reduce the commitment size from to and extended the expiration date of the program until October As of December and and , respectively, was borrowed under this agreement. See Note Debt , for further information. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 10. Accumulated Other Comprehensive Income The following table summarizes the changes in OCI for 2019, 2018, and 2017: (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balance as of December 31, 2016 $ (85 ) $ (2,537 ) $ (210,843 ) $ (213,465 ) Other comprehensive income (loss) before reclassifications (768 ) 921 55,705 55,858 Amounts reclassified from OCI 184 1,307 6,782 8,273 Balance as of December 31, 2017 $ (669 ) $ (309 ) $ (148,356 ) $ (149,334 ) Other comprehensive income (loss) before reclassifications 667 1,130 (16,675 ) (14,878 ) Amounts reclassified from OCI 149 (103 ) - 46 Adoption of ASU 2018-02 - (169 ) (1,220 ) (1,389 ) Balance as of December 31, 2018 $ 147 $ 549 $ (166,251 ) $ (165,555 ) Other comprehensive income (loss) before reclassifications (111 ) (1,091 ) 4,114 2,912 Amounts reclassified from OCI (235 ) (130 ) - (365 ) Balance as of December 31, 2019 $ (199 ) $ (672 ) $ (162,137 ) $ (163,008 ) (a) Cash Flow Hedges and Pension Items are net of tax. In 2018, the Company adopted ASU 2018-02, Reclassifications of Certain Tax Effects from Accumulated Other Comprehensive Income Earnings reinvested in the business |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 11. Income Taxes The provision for income taxes was as follows: (In thousands) 2019 2018 2017 Currently (receivable) payable: Federal (1) $ 12,994 $ (9,071 ) $ 15,513 State 2,622 205 642 Foreign 22,680 23,187 25,254 38,296 14,321 41,409 Deferred expense (benefit): Federal (17,246 ) 3,977 18,458 State 18 3,164 215 Foreign (2,112 ) 2,703 (1,259 ) (19,340 ) 9,844 17,414 Income taxes $ 18,956 $ 24,165 $ 58,823 (1) In 2018 and 2017, this amount includes $(3.9) million and $7.4 million, respectively, of income tax (benefit) expense related to the one-time transition tax on earnings of foreign subsidiaries enacted by the 2017 Tax Legislation (See discussion below). There was no liability for this amount recorded as of December 31, 2018. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following: (in thousands) 2019 2018 Deferred tax assets: Benefit plans $ 6,293 $ 6,788 Liabilities and reserves 21,085 12,563 Operating loss and credit carryovers (1) 82,000 65,392 Other 1,126 1,404 Gross deferred tax assets 110,504 86,147 Valuation allowance (1) (54,326 ) (50,702 ) Deferred tax assets 56,178 35,445 Deferred tax liabilities: Property, plant and equipment (29,869 ) (29,372 ) Goodwill (21,744 ) (21,372 ) Other (5,192 ) (4,488 ) Deferred tax liabilities (56,805 ) (55,232 ) Net deferred tax liabilities $ (627 ) $ (19,787 ) (1) In the quarter of the Company recognized an increase in its foreign tax credit carryover and corresponding valuation allowance of , related to the finalization of certain tax regulations. At December of the net deferred tax liabilities is classified as Liabilities held for sale on the Consolidated Balance Sheet. The Company is subject to current tax on Global Intangible Low-Taxed Income (GILTI) earned by foreign subsidiaries. The FASB Staff Q&A Topic No. 5, Accounting for Global Intangible Low-Taxed Income At December foreign tax credit carryovers were , all of which expires before At December foreign operating loss carryovers were The effective tax rate differed from the statutory federal income tax rate as described below: 2019 2018 2017 Taxes at statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal income tax benefit 2.2 1.1 0.3 Tax credits (2.6 ) (1.5 ) (1.1 ) Taxes on foreign earnings 5.1 (0.4 ) 0.2 Global Intangible Low-Taxed Income 0.9 0.6 - Resolution of prior years’ tax matters (0.4 ) (0.3 ) 0.1 U.S. manufacturing deduction - - (1.4 ) Valuation allowance adjustments (8.8 ) 0.4 - 2017 Tax Legislation - (3.7 ) 12.4 Loss on foreign branch remittances - - (5.2 ) U.S. tax accounting method changes - (2.9 ) - Other, net 1.4 (1.0 ) (0.7 ) Effective tax rate 18.8 % 13.3 % 39.6 % The Company’s valuation allowance at December and was and . The valuation allowance was increased by in the quarter of related to the increase in the foreign tax credit deferred tax asset. In the and quarters of the Company completed tax planning strategies and Federal tax regulations were finalized that resulted in the partial release of this valuation allowance. The valuation allowance was also increased by for the deferred tax assets related to net operating losses that the Company does not believe are more likely than not to be realized. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (2017 Tax Legislation). The 2017 Tax Legislation 2017 Tax Legislation During the and quarters of the US Treasury released numerous proposed regulations related to the Tax Legislation. The Company has reviewed and evaluated these proposed regulations. Some of these regulations were finalized in and the Company has recorded adjustments to its deferreds accordingly. The 2017 loss on remittances is the result of the cumulative foreign currency effect related to certain repatriation transactions. Taxes on foreign earnings include the difference between the tax rates applied to foreign earnings relative to the U.S. statutory tax rate, accruals for foreign unrecognized tax benefits, and the impact of the U.S. foreign tax credit, not including the impact from GILTI. The impact on the Company’s effective tax rate varies from year to year based on the finalization of prior year foreign and domestic tax items, audit settlements, and mix of foreign earnings. The effective tax rate in was impacted by tax costs related to the divestitures and the release of valuation allowances related to the foreign tax credit carryover and foreign net operating losses. The effective tax rate in was also favorably impacted by U.S. tax accounting method changes that were filed with the IRS in the quarter of and generation of foreign tax credits during The decrease of the effective tax rate from valuation allowance adjustments compared to is primarily the result of the release of valuation allowances on the deferred tax asset related to foreign tax credit carryforwards. Earnings before income taxes were as follows: (In thousands) 2019 2018 2017 United States $ 38,356 $ 80,641 $ 88,479 Foreign 62,647 100,884 59,944 Total $ 101,003 $ 181,525 $ 148,423 Federal and state income taxes are provided on international subsidiary income distributed to or taxable in the U.S. during the year. At December 31, 2019, no additional income or withholding taxes have been provided for the $580 million of undistributed earnings or any additional outside basis differences inherent in these entities, as these amounts are considered to be invested indefinitely. If the undistributed earnings were repatriated, the Company A reconciliation of the change in the liability for unrecognized tax benefits for 2019 and 2018 is as follows: (in thousands) 2019 2018 Balance at beginning of year $ 6,026 $ 6,276 Increases for tax positions taken in the current year 750 834 Increases for tax positions taken in prior years 199 271 Decreases related to settlements with tax authorities (341 ) (177 ) Decreases as a result of lapse of the applicable statutes of limitations (591 ) (920 ) Foreign currency exchange rate changes (11 ) (258 ) Balance at the end of year $ 6,032 $ 6,026 The amount of the unrecognized tax benefits that would affect the effective tax rate, if recognized, was approximately $4.9 million. The Company recognizes interest and penalties related to the unrecognized tax benefits in income tax expense. As of December 31, 2019 and 2018, $0.6 million and $0.5 million, respectively, of accrued interest and penalties were reported as an income tax liability in each period. The liability for unrecognized tax benefits relates to multiple jurisdictions and is reported in Other liabilities The Company believes that it is reasonably possible that the total amount of liability for unrecognized tax benefits as of December 31, 2019, will decrease by approximately $0.6 million during 2020, of which $0.6 million is estimated to impact the effective tax rate. The potential decrease relates to various tax matters for which the statute of limitations may expire or will be otherwise settled in 2020. The amount that is ultimately recognized in the financial statements will be dependent upon various factors including potential increases or decreases in unrecognized tax benefits as a result of examinations, settlements, and other unanticipated items that may occur during the year. With limited exceptions, the Company is no longer subject to federal, state, and local, or non-U.S. income tax examinations by tax authorities for years before 2015. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment and Geographic Information [Abstract] | |
Segment and Geographic Information | 12. Segment and Geographic Information The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on operating income before divestiture & other related costs, share-based compensation, Assets by business segment and geographic region are those assets used in the Company’s operations in each segment and geographic region. Segment assets reflect the allocation of goodwill to each segment. Corporate & Other assets consist primarily of fixed assets and investments. Segment Information The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. Segment performance is evaluated on operating income of the respective business units before divestiture & other related costs, share-based compensation, The Company’s three reportable segments are Flavors & Fragrances and Color segments, which are both managed on a product line basis, and the Asia Pacific segment, which is managed on a geographic basis. The Company’s Flavors & Fragrances segment produces flavor and fragrance products that impart a desired taste, texture, aroma, or other characteristic to a broad range of consumers and other products. The Color segment produces natural and synthetic color systems for foods, beverages, pharmaceuticals and nutraceuticals; colors, ingredients and systems for cosmetics; specialty inks and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color, flavor, and fragrance products for the Asia Pacific countries. The Company’s corporate expenses, divestiture & other related costs, share-based compensation, In July 2018, the Company completed the acquisition of Sensient Natural Extraction Inc . (See Note 2, Acquisitions , for further information). This business was included in Corporate & Other in 2018. Beginning in the first quarter of 2019, the results of operations of this business are now reported in the Color segment. The results for 2018 have been restated to reflect this change Divestiture & other related costs, restructuring and other costs for the years ended December 31, 2019 and 2017, are further described in Note 14, Restructuring Charges, and Note 15, Divestitures, and are included in the operating income (loss) results in Corporate & Other below. There were no divestiture & other related costs, restructuring and other costs in 2018. In addition, the Company’s corporate expenses and share-based compensation are included in Corporate & Other . (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated 2019 : Revenue from external customers $ 682,705 $ 522,051 $ 118,178 $ - $ 1,322,934 Intersegment revenue 17,651 13,108 70 - 30,829 Total revenue 700,356 535,159 118,248 - 1,353,763 Operating income (loss) 74,961 101,190 19,382 (74,423 ) 121,110 Interest expense - - - 20,107 20,107 Earnings (loss) before income taxes 74,961 101,190 19,382 (94,530 ) 101,003 Assets 714,779 734,343 99,183 191,846 1,740,151 Capital expenditures 16,968 16,521 2,545 3,066 39,100 Depreciation and amortization 27,179 22,088 2,581 3,167 55,015 2018 : Revenue from external customers $ 723,189 $ 540,499 $ 123,127 $ - $ 1,386,815 Intersegment revenue 23,743 13,505 37 - 37,285 Total revenue 746,932 554,004 123,164 - 1,424,100 Operating income (loss) 96,433 113,306 20,856 (27,217 ) 203,378 Interest expense - - - 21,853 21,853 Earnings (loss) before income taxes 96,433 113,306 20,856 (49,070 ) 181,525 Assets 782,145 752,305 103,808 186,682 1,824,940 Capital expenditures 23,679 21,744 2,858 2,459 50,740 Depreciation and amortization 25,922 21,931 2,451 2,940 53,244 2017 : Revenue from external customers $ 727,026 $ 512,811 $ 122,428 $ - $ 1,362,265 Intersegment revenue 19,917 13,552 765 - 34,234 Total revenue 746,943 526,363 123,193 - 1,396,499 Operating income (loss) 114,343 113,381 20,772 (80,690 ) 167,806 Interest expense - - - 19,383 19,383 Earnings (loss) before income taxes 114,343 113,381 20,772 (100,073 ) 148,423 Assets 771,157 720,328 101,786 131,069 1,724,340 Capital expenditures 31,989 18,797 3,557 2,001 56,344 Depreciation and amortization 23,611 19,902 2,303 2,702 48,518 Geographic Information The Company has manufacturing facilities or sales offices in North America, Europe, Asia, Australia, South America, and Africa. The Company’s annual revenue summarized by geographic location is as follows: (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated 2019 : Revenue from external customers: North America $ 448,393 $ 251,593 $ 112 $ - $ 700,098 Europe 158,902 148,393 336 - 307,631 Asia Pacific 32,203 57,268 116,508 - 205,979 Other 43,207 64,797 1,222 - 109,226 Total revenue from external customers $ 682,705 $ 522,051 $ 118,178 $ - $ 1,322,934 Long-lived assets: North America $ 251,822 $ 220,723 $ - $ 80,128 $ 552,673 Europe 102,631 242,311 - - 344,942 Asia Pacific 1,017 3,758 31,007 - 35,782 Other 504 18,037 - - 18,541 Total long-lived assets $ 355,974 $ 484,829 $ 31,007 $ 80,128 $ 951,938 2018 : Revenue from external customers: North America $ 477,083 $ 245,649 $ - $ - $ 722,732 Europe 173,562 168,340 155 - 342,057 Asia Pacific 31,506 59,548 121,975 - 213,029 Other 41,038 66,962 997 - 108,997 Total revenue from external customers $ 723,189 $ 540,499 $ 123,127 $ - $ 1,386,815 Long-lived assets: North America $ 255,131 $ 230,187 $ - $ 76,996 $ 562,314 Europe 125,157 265,688 - - 390,845 Asia Pacific 1,061 3,319 27,872 - 32,252 Other 277 16,387 - - 16,664 Total long-lived assets $ 381,626 $ 515,581 $ 27,872 $ 76,996 $ 1,002,075 2017 : Revenue from external customers: North America $ 487,034 $ 231,674 $ - $ - $ 718,708 Europe 164,641 159,646 310 - 324,597 Asia Pacific 32,717 55,108 121,110 - 208,935 Other 42,634 66,383 1,008 - 110,025 Total revenue from external customers $ 727,026 $ 512,811 $ 122,428 $ - $ 1,362,265 Long-lived assets: North America $ 255,000 $ 207,746 $ - $ 78,113 $ 540,859 Europe 130,897 278,127 - - 409,024 Asia Pacific 1,395 3,075 28,936 - 33,406 Other 380 7,196 - - 7,576 Total long-lived assets $ 387,672 $ 496,144 $ 28,936 $ 78,113 $ 990,865 Sales in the United States, based on the final country of destination of the Company’s products, were $575.2 million, $586.2 million, and $574.5 million in 2019, 2018, and 2017, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $471.8 million, $484.9 million, and $485.2 million at December 31, 2019, 2018, and 2017, respectively. Product Information The Company’s revenue summarized by product portfolio is as follows: (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated 2019 : Flavors $ 382,447 $ - $ - $ 382,447 Natural Ingredients 214,027 - - 214,027 Fragrances 103,882 - - 103,882 Food & Beverage Colors - 306,274 - 306,274 Cosmetics - 137,043 - 137,043 Other Colors - 91,842 - 91,842 Asia Pacific - - 118,248 118,248 Intersegment Revenue (17,651 ) (13,108 ) (70 ) (30,829 ) Total revenue from external customers $ 682,705 $ 522,051 $ 118,178 $ 1,322,934 2018 : Flavors $ 414,728 $ - $ - $ 414,728 Natural Ingredients 224,280 - - 224,280 Fragrances 107,924 - - 107,924 Food & Beverage Colors - 303,386 - 303,386 Cosmetics - 153,347 - 153,347 Other Colors - 97,271 - 97,271 Asia Pacific - - 123,164 123,164 Intersegment Revenue (23,743 ) (13,505 ) (37 ) (37,285 ) Total revenue from external customers $ 723,189 $ 540,499 $ 123,127 $ 1,386,815 2017 : Flavors $ 439,811 $ - $ - $ 439,811 Natural Ingredients 219,837 - - 219,837 Fragrances 87,295 - - 87,295 Food & Beverage Colors - 279,870 - 279,870 Cosmetics - 147,637 - 147,637 Other Colors - 98,856 - 98,856 Asia Pacific - - 123,193 123,193 Intersegment Revenue (19,917 ) (13,552 ) (765 ) (34,234 ) Total revenue from external customers $ 727,026 $ 512,811 $ 122,428 $ 1,362,265 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 13. Fair Value Measurements ASC 820, Fair Value Measurement During the fourth quarter of 2019, the Company met the assets held for sale criteria for its inks and fragrances divestitures. As a result, the Company recorded an impairment of $34.0 million on the disposal groups based on a fair value of $72.0 million. The fair value of these product lines were determined based on indicative bids, which are classified as Level 3 inputs in the fair value measurement hierarchy. See Note 15, Divestitures |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | 14. Restructuring Charges Between March 2014 and 2017, the Company executed a restructuring plan (2014 Restructuring Plan) to eliminate underperforming operations, consolidate manufacturing facilities, and improve efficiencies within the Company. In accordance with GAAP, no restructuring costs were recorded for the years ended December 31, 2019 and 2018, however, the Company recorded total restructuring costs of $36.5 million for the year ended December 31, 2017. The restructuring costs incurred in 2017 were primarily due to the loss on asset sales of $21.6 million and other costs. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2019 | |
Divestitures [Abstract] | |
Divestitures | 15. Divestitures In 2016, the Company’s Board of Directors authorized management to explore strategic alternatives for a facility and certain related business lines within the Flavors & Fragrances segment in Strasbourg, France. In 2016, the Company recorded a non-cash impairment charge of $10.8 million, in S elling and administrative expenses in Selling and administrative expenses . In October 2019, the Company announced its intent to divest its inks, fragrances (excluding its essential oils product line), and fruit preparation product lines. In October 2019, the Board of Directors approved the sale of the inks product line, which is within the Color segment. In November 2019, the Board of Directors approved the sale of the fragrances product line (excluding its essential oils product line), which is within the Flavors & Fragrances segment. As a result, the Company met all of the assets held for sale criteria for the inks and fragrances disposal groups. The divesting and exit of these products lines does not meet the criteria to be presented as a discontinued operation on the Consolidated Statements of Earnings. As of December 31, 2019, the fruit preparation product line, which is included in the Flavors & Fragrances segment, does not yet meet all of the assets held for sale criteria. The Company continues to explore options to divest and exit this product line. The assets and liabilities related to the inks and fragrances product lines are recorded in Assets held for sale Liabilities held for sale (in thousands) 2019 Assets held for sale: Trade accounts receivable, less allowance for losses of $2,350 $ 31,653 Inventories 34,612 Prepaid expenses and other current assets 5,528 Property, Plant, and Equipment, net 14,496 Intangible assets 5,004 Assets held for sale $ 91,293 Liabilities held for sale: Trade accounts payable $ 12,318 Accrued salaries, wages and withholdings from employees 1,677 Other accrued expenses 5,190 Liabilities held for sale $ 19,185 As of December 31, 2019, an estimate of the fair value of the inks product line less cost to sell was determined to be lower than its carrying value resulting in a non-cash impairment charge of $15.8 million, recorded in Selling and administrative expenses Accumulated other comprehensive loss Selling and administrative expenses Subsequent Events As of December 31, 2019, an estimate of the fair value of the fragrances product line less cost to sell was determined to be lower than its carrying value resulting in a non-cash impairment charge of $18.2 million, in Selling and administrative expenses Accumulated other comprehensive loss Selling and administrative expenses Also in the fourth quarter of 2019, the Company recorded a non-cash charge of $9.8 million and disposal costs of $0.8 million, in Cost of products sold In addition, the Company incurred $0.7 million of other divestiture and exit related costs, primarily severance, and a $0.6 million non-cash impairment charge related to other exit activities in the fourth quarter of 2019, which is recorded in Selling and administrative expenses The Company expects total cash costs associated with the anticipated divestitures to be between $7 million and $12 million, primarily related to severance and other exiting activities, and anticipates that it will complete the sales and exit activities of these product lines in 2020. The cash costs for the year ended December 31, 2019, were not significant. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Agar v. Sensient Natural Ingredients LLC On March 29, 2019, Calvin Agar (Agar), a former employee, filed a Class Action Complaint in Stanislaus County Superior Court against Sensient Natural Ingredients LLC (SNI). On May 22, 2019, Agar filed a First Amended Class Action Complaint against SNI (the Complaint). Agar alleges that SNI improperly reported overtime pay on employees’ wage statements, in violation of the California Labor Code. The Complaint alleges two causes of action, and both concern the wage statements. The Complaint does not allege that SNI failed to pay any overtime due to Agar or any of the putative class or group members. The Complaint merely challenges the manner in which SNI has reported overtime pay on its wage statements. SNI maintains that it has accurately paid Agar and the putative class members for all overtime worked, and that they have not experienced any harm. SNI further maintains that the format of its wage statements does not violate the requirements of state law or any specific guidance from California decisional law, the California Division of Labor Standards Enforcement, or the California Labor Commissioner's Office. Finally, SNI contends that certain of the state law claims are subject to mandatory individual arbitration. SNI filed its Answer and Affirmative Defenses to the Complaint on July 10, 2019. The parties participated in an early mediation in the case in December 2019, which was not successful. The case will now move into the discovery phase. SNI continues to evaluate the developing legal authority on this issue. SNI intends to vigorously defend its interests, absent a reasonable resolution. Other Claims The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events On , the Company announced its quarterly dividend of cents per share would be payable on . On February 3, 2020, the Company updated its estimate for the fair value of the inks product line based on an updated indicative bid. The Company estimates an additional non-cash impairment charge of $ million, recorded in Selling and administrative expenses , in the quarter ending March 31, 2020. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts (in thousands); Years Ended December 31, 2019, 2018, and 2017 Valuation Accounts Deducted in the Balance Sheet From the Assets to Which They Apply Balance at Beginning of Period Additions Charged to Costs and Expenses Additions Recorded During Acquisitions Deductions (A) Balance at End of Period 2017 Allowance for losses: Trade accounts receivable $ 4,836 $ 1,276 $ 0 $ 112 $ 6,000 2018 Allowance for losses: Trade accounts receivable $ 6,000 $ 1,004 $ 0 $ 1,028 $ 5,976 2019 Allowance for losses: Trade accounts receivable $ 5,976 $ 2,469 $ 0 $ 3,882 $ 4,563 (A) Accounts written off, net of recoveries. In 2019, $2,350 thousand was moved to Assets held for sale |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets, liabilities, revenue, and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue at the transfer of control of its products to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve this core principle, the Company applies the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies the performance obligations The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. For each contract, the Company considers the identified performance obligation to be the promise to transfer products. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment and then determines the net consideration to which the Company expects to be entitled. In addition, the Company assesses the customer’s ability to pay as part of its evaluation of the contract. As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under Accounting Standards Codification (ASC) 606-10-32-18, and determined that its contracts do not have a significant financing component. The Company allocates the transaction price to each distinct product based on the relative standalone selling price. Revenue is recognized when control of the product is transferred to the customer, the customer is obligated to pay the Company, and the Company has no remaining obligations, which is typically at shipment. In certain locations, primarily outside the United States, product shipping terms may vary. Thus, in such locations, the point at which control of the product transfers to the customer and revenue recognition occurs will vary accordingly. Customer returns of non-conforming products are estimated at the time revenue is recognized. In certain customer relationships, volume rebates exist, which are recognized according to the terms and conditions of the contractual relationship. Customer returns, rebates, and discounts are not material to the Company’s consolidated financial statements. The Company has elected to recognize the revenue and cost for freight and shipping when control over the products has transferred to the customer. The Company has elected to immediately expense contract costs related to obtaining a contract as the amortization period of the asset the Company otherwise would have recognized would have been less than a year. In addition to evaluating the Company’s performance based on the segments above, revenue is also disaggregated and analyzed by product line and geographic market (See Note 12, Segment and Geographic Information, for further information) . |
Cost of Products Sold | Cost of Products Sold Cost of products sold includes materials, labor, and overhead expenses incurred in the manufacture of our products. Cost of products sold also includes charges for obsolete and slow-moving inventories, as well as costs for quality control, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, other costs of our internal distribution network, and costs incurred for shipping and handling. The Company records fees billed to customers for shipping and handling as revenue. |
Selling and Administrative Expenses | Selling and Administrative Expenses Selling and administrative expenses primarily include the salaries and related costs for executive, finance, accounting, human resources, information technology, research and development, and legal personnel as well as salaries and related costs of salespersons and commissions paid to external sales agents. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of acquisition as cash equivalents. |
Accounts Receivable | Accounts Receivable Receivables are recorded at their face amount, less an allowance for losses on doubtful accounts. The allowance for doubtful accounts is based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. Specific accounts are written off against the allowance for doubtful accounts when it is deemed that the receivable is no longer collectible. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Net realizable value is determined on the basis of estimated realizable values. Cost is determined using the first-in, first-out (FIFO) method with the exception of certain locations of the Flavors & Fragrances Group where cost is determined using a weighted average method. Inventories include finished and in-process products totaling $313.1 million and $320.4 million at December 31, 2019 and 2018, respectively, and raw materials and supplies of $109.4 million and $170.4 million at December 31, 2019 and 2018, respectively. In the fourth quarter of 2019, the Company recorded a non-cash charge of $ 9.8 million, in Cost of products sold related to the fruit preparation anticipated divestiture. The non-cash charge reduced the carrying value of certain inventories, as they were determined to be excess based on changes in assumptions as of December 31, 2019. See Note 15, Divestitures , for additional information. |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant, and equipment are recorded at cost reduced by accumulated depreciation. Depreciation is provided over the estimated useful life of the related asset using the straight-line method for financial reporting. The estimated useful lives for buildings and leasehold improvements range from 5 to 40 years. Machinery and equipment have estimated useful lives ranging from 3 to 20 years. Interest costs on significant projects constructed or developed for the Company’s own use are capitalized as part of the asset. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The carrying value of goodwill is evaluated for impairment on an annual basis or more frequently when an indicator of impairment occurs. The impairment assessment includes comparing the carrying amount of net assets, including goodwill, of each reporting unit to its respective fair value as of the date of the assessment. Fair value was estimated based upon an evaluation of the reporting unit’s estimated future discounted cash flows as well as the public trading and private transaction valuation multiples for comparable companies. The Company performed such a quantitative analysis in 2019, which indicated a substantial premium compared to the carrying value of net assets, including goodwill, at the reporting unit level. The Company met the assets held for sale criteria in the fourth quarter of 2019 for its inks and fragrances (excluding essential oils product line) product lines, resulting in $ million of goodwill being allocated to those disposal groups. The allocated goodwill related to those disposal groups was determined to be fully impaired, based on the estimated fair values for both disposal groups. See Note 15, Divestitures , for additional information. The cost of intangible assets with determinable useful lives is amortized on a straight-line basis to reflect the pattern of economic benefits consumed, ranging from 5 to 20 years. These assets include technological know-how, customer relationships, patents, trademarks, and non-compete agreements, among others. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if potential impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on the difference between fair value and carrying value. Impairment losses were recorded as a result of the Company’s anticipated divestitures of its inks and fragrances (excluding its essential oils product line) product lines. See Note 15 , Divestitures , for additional information. |
Derivative Financial Instruments | Derivative Financial Instruments The Company selectively uses derivative financial instruments to reduce market risk associated with changes in foreign currency and interest rate exposures which exist as part of ongoing business operations. All derivative transactions are authorized and executed pursuant to the Company’s risk management policies and procedures, which strictly prohibit the use of financial instruments for speculative trading purposes. The primary objectives of the foreign exchange risk management activities are to understand and mitigate the impact of potential foreign exchange fluctuations on the Company’s financial results and its economic well-being. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. These risk management transactions may involve the use of foreign currency derivatives to protect against exposure resulting from recorded accounts receivable and payable. The Company may utilize forward exchange contracts, generally with maturities of less than 18 months, which qualify as cash flow hedges. Generally these foreign exchange contracts are intended to offset the effect of exchange rate fluctuations on non-functional currency denominated sales and purchases. For derivative instruments that are designated as cash flow hedges, gains and losses are deferred in accumulated other comprehensive income (OCI) until the underlying transaction is recognized in earnings. For hedges designated as cash flow hedges, the Company elects critical terms that match at the onset of the hedge transaction. Hedge accounting is permitted only if the hedge meets the critical terms match requirements. The Company reviews the critical terms at each effectiveness testing date to ensure the respective terms match; therefore, achieving a highly effective hedge. |
Interest Rate Hedging | Interest Rate Hedging The Company is exposed to interest rate risk through its corporate borrowing activities. The objective of the Company’s interest rate risk management activities is to manage the levels of the Company’s fixed and floating interest rate exposure to be consistent with the Company’s preferred mix. The interest rate risk management program may include entering into interest rate swaps, which qualify as fair value hedges, when there is a desire to modify the Company’s exposure to interest rates. Gains or losses on fair value hedges are recognized in earnings, net of gains and losses on the fair value of the hedged instruments. |
Net Investments Hedging | Net Investments Hedging The Company is exposed to risk related to its net investments in foreign subsidiaries. As part of its risk management activities, the Company may enter into foreign-denominated debt to be used as a non-derivative instrument to hedge the Company’s net investment in foreign subsidiaries. The change in the fair value of debt designated as a net investment hedge is recorded in foreign currency translation in OCI. |
Commodity Purchases | Commodity Purchases The Company purchases certain commodities in the normal course of business that result in physical delivery of the goods and, hence, are excluded from ASC 815, Derivatives and Hedging |
Translation of Foreign Currencies | Translation of Foreign Currencies For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of foreign operations are translated into U.S. dollars at current exchange rates. Revenue and expense accounts are translated into U.S. dollars at average exchange rates prevailing during the year. Adjustments resulting from the translation of foreign accounts into U.S. dollars are recorded in foreign currency translation in OCI. Transaction gains and losses that occur as a result of transactions denominated in non-functional currencies are included in earnings and were not significant during the years ended December 31, 2019, 2018, and 2017. |
Share-Based Compensation | Share-Based Compensation Share-based compensation expense is recognized over the vesting period of each award based on the fair value of the instrument at the time of grant as summarized in Note 6, Share-Based Compensation. |
Income Taxes | Income Taxes The Company recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax liability or asset for the estimated future tax effects attributable to temporary differences and carryforwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Deferred tax assets are reduced, if necessary, by the amount of any tax benefits for which the utilization of the asset is not considered likely. |
Earnings Per Share | Earnings Per Share The difference between basic and diluted earnings per share (EPS) is the dilutive effect of stock options and non-vested stock. Diluted EPS assumes that non-vested stock has vested and all dilutive stock options, for which the average market price exceeds the exercise price (in-the-money), are exercised. Stock options for which the exercise price exceeds the average market price (out-of-the-money) have an anti-dilutive effect on EPS, and accordingly, are excluded from the calculation. The following table sets forth the computation of basic and diluted EPS for the years ended December 31: Years Ended December 31, (in thousands except per share amounts) 2019 2018 2017 Numerator: Net earnings $ 82,047 $ 157,360 $ 89,600 Denominator: Denominator for basic EPS - weighted average common shares 42,263 42,404 43,780 Effect of dilutive securities 31 95 251 Denominator for diluted EPS - diluted weighted average shares outstanding 42,294 42,499 44,031 Earnings per Common Share Basic $ 1.94 $ 3.71 $ 2.05 Diluted $ 1.94 $ 3.70 $ 2.03 The Company has a share-based compensation plan under which employees may be granted share-based awards in which non-forfeitable dividends are paid on non-vested shares for certain awards. As such, these shares are considered participating securities under the two-class method of calculating EPS as described in ASC 260, Earnings per Share. In 2019, 2018, and 2017, there were no anti-dilutive stock options. All EPS amounts are presented on a diluted basis unless otherwise noted. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated OCI is composed primarily of foreign currency translation, pension liability, and unrealized gains or losses on cash flow hedges. See Note 10, Accumulated Other Comprehensive Income, |
Research and Development | Research and Development Research and development costs are recorded in S elling and administrative expenses in the year they are incurred. Research and development costs were $ million, $ million, and $ million during the years ended December 31, 2019, 2018, and 2017, respectively. |
Advertising | Advertising Advertising costs are recorded in Selling and administrative expenses as they are incurred. Advertising costs were $ million, $ million, and $ million during the years ended December 31, 2019, 2018, and 2017, respectively. |
Environmental Liabilities | Environmental Liabilities The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and reasonably estimable. Such accruals are adjusted as further information becomes available or as circumstances change. Estimated future expenditures are discounted to their present value when the timing and amount of future cash flows are fixed and readily determinable. Recoveries of remediation costs from other parties, if any, are recognized as assets when their receipt is realizable. |
Subsequent Events | Subsequent Events The Company performed an evaluation of subsequent events through the date these financial statements were issued. See Note 17, Subsequent Events 1. The Company will not re-assess an expired or existing contract to determine if it is a lease or contains a lease. 2. The Company will not re-assess the lease classification for an existing lease based on the new standard’s lease classification criteria. 3. The Company will not re-assess the accounting treatment for initial direct costs on existing leases based on the new standard’s guidance. 4. The Company will account for the lease and non-lease components as a single lease component for all leases. |
Recently Adopted/Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) , which requires lessees to recognize the lease assets and liabilities that arise from leases on the balance sheet and to disclose qualitative and quantitative information about lease transactions. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , which provides an additional transition method allowing entities to apply the new lease standard at the adoption date. The Company adopted each of these standards in the first quarter of 2019 using the optional transition method allowed under ASU No. 2018-11. The Company elected the following practical expedients permitted within the standard: 1. The Company will not re-assess an expired or existing contract to determine if it is a lease or contains a lease. 2. The Company will not re-assess the lease classification for an existing lease based on the new standard’s lease classification criteria. 3. The Company will not re-assess the accounting treatment for initial direct costs on existing leases based on the new standard’s guidance. 4. The Company will account for the lease and non-lease components as a single lease component for all leases. The adoption of this standard resulted in the recognition of $ million in right-of-use assets and lease liabilities for operating leases as of January 1, 2019. The adoption of this standard did not have an impact on the Company’s Consolidated Statements of Earnings, or to cash provided by or used in operating, financing, or investing activities on the Company’s Consolidated Statements of Cash Flows. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which expands an entity’s ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. This guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line item as the hedged item. This ASU is effective for fiscal years and interim periods beginning after December 15, 2018. The Company adopted this standard in the first quarter of 2019, and the adoption did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the current incurred loss impairment model with a methodology that reflects expected credit losses. Under the new methodology, entities will be required to measure expected credit losses on financial instruments held at amortized cost, including trade receivables, based on historical experience, current conditions, and reasonable forecasts. Adoption of this guidance is required for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. For most instruments, entities must apply the standard using a cumulative effect adjustment to beginning retained earnings as of the beginning of the fiscal year of adoption. The Company has established a project plan and an implementation team to adopt and apply the new standard. The Company is in the process of implementing necessary changes to accounting policies, processes, and controls, to enable compliance with this new standard. The Company’s current estimate of the impact of this ASU on the Company’s Consolidated Financial Statements is an increase to the allowance for losses on Trade accounts receivable in the range of $ million to $ million. The Company will finalize the adjustment and the impact on the Company’s Consolidated Financial Statements and related disclosures in the first quarter 2020. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates step two of the current goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. This standard will be applied prospectively and is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not expect this standard to have a material impact on its financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement , which changes the requirements for fair value measurements by removing, modifying, and adding certain disclosures. Adoption of this guidance is required for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the expected impact of this standard. In August 2018, the FASB issued ASU No. 2018-14, D isclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans Subtopic 715-20 , which amends ASC 715-20, Compensation – Retirement Benefits – Defined Benefit Plans – General . This standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The effective date is January 1, 2021, with early adoption permitted. The Company is currently evaluating the potential impact of this standard on its disclosures. Other recently issued accounting pronouncements are not expected to have a material impact on the Company's consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Abstract] | |
Weighted-Average Common Shares for the Computation of EPS | The following table sets forth the computation of basic and diluted EPS for the years ended December 31: Years Ended December 31, (in thousands except per share amounts) 2019 2018 2017 Numerator: Net earnings $ 82,047 $ 157,360 $ 89,600 Denominator: Denominator for basic EPS - weighted average common shares 42,263 42,404 43,780 Effect of dilutive securities 31 95 251 Denominator for diluted EPS - diluted weighted average shares outstanding 42,294 42,499 44,031 Earnings per Common Share Basic $ 1.94 $ 3.71 $ 2.05 Diluted $ 1.94 $ 3.70 $ 2.03 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets [Abstract] | |
Intangible Assets | The following table summarizes intangible assets with determinable useful lives by major category as of December 31, 2019 and 2018: 2019 2018 (In thousands except weighted average amortization years) Weighted Average Amortization Years Cost Accumulated Amortization Cost Accumulated Amortization Technological know-how 17.8 $ 7,570 $ (1,391 ) $ 14,570 $ (6,768 ) Customer relationships 13.6 3,474 (1,653 ) 8,761 (5,673 ) Patents, trademarks, non-compete agreements, and other 15.5 10,496 (6,694 ) 15,861 (7,884 ) Total finite-lived intangibles 16.0 $ 21,540 $ (9,738 ) $ 39,192 $ (20,325 ) |
Changes in Goodwill by Business Segment | The changes in goodwill for the years ended December 31, 2019 and 2018, by reportable business segment, were as follows: (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Balance as of December 31, 2017 $ 112,977 $ 290,889 $ 5,129 $ 408,995 Currency translation impact (891 ) (8,269 ) 52 (9,108 ) Acquisitions — 16,288 — 16,288 Balance as of December 31, 2018 $ 112,086 $ 298,908 $ 5,181 $ 416,175 Currency translation impact (184 ) (641 ) 77 (748 ) Goodwill related to divestitures (1) (3,754 ) (4,631 ) — (8,385 ) Balance as of December 31, 2019 $ 108,148 $ 293,636 $ 5,258 $ 407,042 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt [Abstract] | |
Long-Term Debt | Long-term debt consisted of the following unsecured obligations at December 31: (in thousands) 2019 2018 3.66% senior notes due November 2023 $ 75,000 $ 75,000 3.65% senior notes due May 2024 27,000 27,000 4.19% senior notes due November 2025 25,000 25,000 1.27% Euro-denominated senior notes due May 2024 56,066 57,333 1.71% Euro-denominated senior notes due May 2027 44,853 45,866 3.06% Euro-denominated senior notes due November 2023 42,887 43,856 1.85% Euro-denominated senior notes due November 2022 74,968 76,662 2.53% British Pound-denominated notes due November 2023 33,143 31,884 2.76% British Pound-denominated notes due November 2025 33,143 31,884 Term loan 51,438 132,313 Revolving Credit Facilities 134,393 142,061 Various other notes 783 923 598,674 689,782 Less debt fees (175 ) (229 ) Total long-term debt $ 598,499 $ 689,553 |
Restrictive Loan Covenants | The following table summarizes the Company’s most restrictive loan covenants calculated in accordance with the applicable agreements as of December 31, 2019: Actual Required Debt to EBITDA (1) 2.86 <3.50 Interest Coverage (Minimum) 5.25 >2.00 (1) Debt to EBITDA is defined in the Company’s debt covenants as total funded debt divided by the Company’s consolidated operating income excluding non-operating gains and losses and depreciation and amortization. |
Short-Term Borrowings | The Company’s short-term borrowings consisted of the following items at December 31: (in thousands) 2019 2018 U.S. credit facilities $ 20,280 $ 19,768 Loans of foreign subsidiaries 332 278 Total $ 20,612 $ 20,046 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation [Abstract] | |
Non-vested Stock and Performance Unit Activity | The following table summarizes the non-vested stock and performance stock unit activity: (In thousands except fair value) Shares Grant Date Weighted Average Fair Value Aggregate Intrinsic Value Outstanding at December 31, 2016 435 $ 56.44 $ 34,184 Granted 115 74.26 Vested (114 ) 39.75 Cancelled (24 ) 63.62 Outstanding at December 31, 2017 412 65.64 30,113 Granted 142 59.45 Vested (111 ) 56.91 Cancelled (63 ) 64.71 Outstanding at December 31, 2018 380 66.02 21,239 Granted 134 60.04 Vested (46 ) 63.61 Cancelled (64 ) 62.39 Outstanding at December 31, 2019 404 $ 64.89 $ 26,710 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Plans [Abstract] | |
Funded Status of Defined Benefit Plan | The funded status of the defined benefit plans was as follows at December 31: (in thousands) 2019 2018 Benefit obligation at beginning of year $ 34,152 $ 37,757 Service cost 1,432 1,465 Interest cost 1,273 1,137 Foreign currency exchange rate changes 558 (761 ) Benefits paid (1,899 ) (2,480 ) Amendments - 145 Actuarial loss (gain) 3,905 (3,111 ) Benefit obligation at end of year 39,421 34,152 Plan assets at beginning of year 28,299 31,768 Company contributions 1,086 886 Foreign currency exchange rate changes 968 (1,315 ) Benefits paid (1,899 ) (2,480 ) Actual gain (loss) on plan assets 3,322 (560 ) Plan assets at end of year 31,776 28,299 Funded status $ (7,645 ) $ (5,853 ) Accumulated benefit obligation $ 38,596 $ 33,562 |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the Consolidated Balance Sheets at December 31: (in thousands) 2019 2018 Accrued employee and retiree benefits $ (17,143 ) $ (15,245 ) Other accrued expenses (710 ) (779 ) Other assets 10,208 10,171 Net liability $ (7,645 ) $ (5,853 ) |
Annual Benefit Cost | Components of annual benefit cost: (In thousands) 2019 2018 2017 Service cost $ 1,432 $ 1,465 $ 1,939 Interest cost 1,273 1,137 1,222 Expected return on plan assets (896 ) (896 ) (892 ) Recognized actuarial gain (176 ) (141 ) (187 ) Settlement (income) expense - (179 ) 3,796 Defined benefit expense $ 1,633 $ 1,386 $ 5,878 |
Weighted Average Assumptions | Weighted average liability assumptions as of December 31: 2019 2018 Discount rate 2.69 % 3.80 % Expected return on plan assets 2.68 % 3.21 % Rate of compensation increase 0.34 % 0.31 % Weighted average cost assumptions for the year ended December 31: 2019 2018 Discount rate 3.80 % 3.16 % Expected return on plan assets 3.21 % 3.03 % Rate of compensation increase 0.31 % 0.33 % |
Amounts Recognized in Accumulated Other Comprehensive Loss | Amounts in accumulated other comprehensive loss at December 31 were as follows: (In thousands) 2019 2018 Unrecognized net actuarial loss (gain) $ 683 $ (901 ) Prior service cost 146 145 Total before tax effects $ 829 $ (756 ) |
Pension Adjustments Recognized in Accumulated Other Comprehensive Income | The pension adjustments, net of tax, recognized in OCI, were as follows: (In thousands) 2019 2018 2017 Net actuarial (loss) gain arising during the period $ (1,091 ) $ 1,257 $ 921 Prior service cost - (127 ) - Amortization of actuarial (gain) loss, included in defined benefit expense (130 ) (103 ) 1,307 Pension adjustment, net of tax $ (1,221 ) $ 1,027 $ 2,228 |
Pension Plan Assets by Asset Category | The following table presents the Company’s pension plan assets by asset category as of December 31, 2019 and 2018: Fair Value as of December 31, Fair Value Measurements at December 31, 2019 Using Fair Value Hierarchy Fair Value as of December 31, Fair Value Measurements at December 31, 2018 Using Fair Value Hierarchy (in thousands) 2019 Level 1 Level 2 Level 3 2018 Level 1 Level 2 Level 3 Equity Funds Domestic $ 6,003 $ 6,003 $ - $ - $ 5,385 $ 5,385 $ - $ - International 104 - 104 - 83 - 83 - International Fixed Income Funds 25,556 1,269 24,287 - 22,703 1,111 21,592 - Other investments 113 79 34 - 128 47 81 - Total assets at fair value $ 31,776 $ 7,351 $ 24,425 $ - $ 28,299 $ 6,543 $ 21,756 $ - |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Maturities of Operating Lease Liabilities | As of December 31, 2019, maturities of operating lease liabilities for future annual periods are as follows: (in s) Year ending December 2020 $ 8,429 2021 4,969 2022 2,641 2023 1,582 2024 1,187 Thereafter 1,517 Total lease payments 20,325 Less imputed interest (1,470 ) Present value of lease liabilities $ 18,855 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in OCI | The following table summarizes the changes in OCI for 2019, 2018, and 2017: (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balance as of December 31, 2016 $ (85 ) $ (2,537 ) $ (210,843 ) $ (213,465 ) Other comprehensive income (loss) before reclassifications (768 ) 921 55,705 55,858 Amounts reclassified from OCI 184 1,307 6,782 8,273 Balance as of December 31, 2017 $ (669 ) $ (309 ) $ (148,356 ) $ (149,334 ) Other comprehensive income (loss) before reclassifications 667 1,130 (16,675 ) (14,878 ) Amounts reclassified from OCI 149 (103 ) - 46 Adoption of ASU 2018-02 - (169 ) (1,220 ) (1,389 ) Balance as of December 31, 2018 $ 147 $ 549 $ (166,251 ) $ (165,555 ) Other comprehensive income (loss) before reclassifications (111 ) (1,091 ) 4,114 2,912 Amounts reclassified from OCI (235 ) (130 ) - (365 ) Balance as of December 31, 2019 $ (199 ) $ (672 ) $ (162,137 ) $ (163,008 ) (a) Cash Flow Hedges and Pension Items are net of tax. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Provision for Income Taxes | The provision for income taxes was as follows: (In thousands) 2019 2018 2017 Currently (receivable) payable: Federal (1) $ 12,994 $ (9,071 ) $ 15,513 State 2,622 205 642 Foreign 22,680 23,187 25,254 38,296 14,321 41,409 Deferred expense (benefit): Federal (17,246 ) 3,977 18,458 State 18 3,164 215 Foreign (2,112 ) 2,703 (1,259 ) (19,340 ) 9,844 17,414 Income taxes $ 18,956 $ 24,165 $ 58,823 (1) In 2018 and 2017, this amount includes $(3.9) million and $7.4 million, respectively, of income tax (benefit) expense related to the one-time transition tax on earnings of foreign subsidiaries enacted by the 2017 Tax Legislation (See discussion below). There was no liability for this amount recorded as of December 31, 2018. |
Tax Effects of Temporary Differences - Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following: (in thousands) 2019 2018 Deferred tax assets: Benefit plans $ 6,293 $ 6,788 Liabilities and reserves 21,085 12,563 Operating loss and credit carryovers (1) 82,000 65,392 Other 1,126 1,404 Gross deferred tax assets 110,504 86,147 Valuation allowance (1) (54,326 ) (50,702 ) Deferred tax assets 56,178 35,445 Deferred tax liabilities: Property, plant and equipment (29,869 ) (29,372 ) Goodwill (21,744 ) (21,372 ) Other (5,192 ) (4,488 ) Deferred tax liabilities (56,805 ) (55,232 ) Net deferred tax liabilities $ (627 ) $ (19,787 ) (1) In the quarter of the Company recognized an increase in its foreign tax credit carryover and corresponding valuation allowance of , related to the finalization of certain tax regulations. |
Effective Income Tax Rate Reconciliation | The effective tax rate differed from the statutory federal income tax rate as described below: 2019 2018 2017 Taxes at statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal income tax benefit 2.2 1.1 0.3 Tax credits (2.6 ) (1.5 ) (1.1 ) Taxes on foreign earnings 5.1 (0.4 ) 0.2 Global Intangible Low-Taxed Income 0.9 0.6 - Resolution of prior years’ tax matters (0.4 ) (0.3 ) 0.1 U.S. manufacturing deduction - - (1.4 ) Valuation allowance adjustments (8.8 ) 0.4 - 2017 Tax Legislation - (3.7 ) 12.4 Loss on foreign branch remittances - - (5.2 ) U.S. tax accounting method changes - (2.9 ) - Other, net 1.4 (1.0 ) (0.7 ) Effective tax rate 18.8 % 13.3 % 39.6 % |
Earnings Before Income Taxes | Earnings before income taxes were as follows: (In thousands) 2019 2018 2017 United States $ 38,356 $ 80,641 $ 88,479 Foreign 62,647 100,884 59,944 Total $ 101,003 $ 181,525 $ 148,423 |
Reconciliation of Change in Liability for Unrecognized Tax Benefits | A reconciliation of the change in the liability for unrecognized tax benefits for 2019 and 2018 is as follows: (in thousands) 2019 2018 Balance at beginning of year $ 6,026 $ 6,276 Increases for tax positions taken in the current year 750 834 Increases for tax positions taken in prior years 199 271 Decreases related to settlements with tax authorities (341 ) (177 ) Decreases as a result of lapse of the applicable statutes of limitations (591 ) (920 ) Foreign currency exchange rate changes (11 ) (258 ) Balance at the end of year $ 6,032 $ 6,026 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment and Geographic Information [Abstract] | |
Segment Information | Divestiture & other related costs, restructuring and other costs for the years ended December 31, 2019 and 2017, are further described in Note 14, Restructuring Charges, and Note 15, Divestitures, and are included in the operating income (loss) results in Corporate & Other below. There were no divestiture & other related costs, restructuring and other costs in 2018. In addition, the Company’s corporate expenses and share-based compensation are included in Corporate & Other . (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated 2019 : Revenue from external customers $ 682,705 $ 522,051 $ 118,178 $ - $ 1,322,934 Intersegment revenue 17,651 13,108 70 - 30,829 Total revenue 700,356 535,159 118,248 - 1,353,763 Operating income (loss) 74,961 101,190 19,382 (74,423 ) 121,110 Interest expense - - - 20,107 20,107 Earnings (loss) before income taxes 74,961 101,190 19,382 (94,530 ) 101,003 Assets 714,779 734,343 99,183 191,846 1,740,151 Capital expenditures 16,968 16,521 2,545 3,066 39,100 Depreciation and amortization 27,179 22,088 2,581 3,167 55,015 2018 : Revenue from external customers $ 723,189 $ 540,499 $ 123,127 $ - $ 1,386,815 Intersegment revenue 23,743 13,505 37 - 37,285 Total revenue 746,932 554,004 123,164 - 1,424,100 Operating income (loss) 96,433 113,306 20,856 (27,217 ) 203,378 Interest expense - - - 21,853 21,853 Earnings (loss) before income taxes 96,433 113,306 20,856 (49,070 ) 181,525 Assets 782,145 752,305 103,808 186,682 1,824,940 Capital expenditures 23,679 21,744 2,858 2,459 50,740 Depreciation and amortization 25,922 21,931 2,451 2,940 53,244 2017 : Revenue from external customers $ 727,026 $ 512,811 $ 122,428 $ - $ 1,362,265 Intersegment revenue 19,917 13,552 765 - 34,234 Total revenue 746,943 526,363 123,193 - 1,396,499 Operating income (loss) 114,343 113,381 20,772 (80,690 ) 167,806 Interest expense - - - 19,383 19,383 Earnings (loss) before income taxes 114,343 113,381 20,772 (100,073 ) 148,423 Assets 771,157 720,328 101,786 131,069 1,724,340 Capital expenditures 31,989 18,797 3,557 2,001 56,344 Depreciation and amortization 23,611 19,902 2,303 2,702 48,518 |
Geographical Information | The Company’s annual revenue summarized by geographic location is as follows: (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated 2019 : Revenue from external customers: North America $ 448,393 $ 251,593 $ 112 $ - $ 700,098 Europe 158,902 148,393 336 - 307,631 Asia Pacific 32,203 57,268 116,508 - 205,979 Other 43,207 64,797 1,222 - 109,226 Total revenue from external customers $ 682,705 $ 522,051 $ 118,178 $ - $ 1,322,934 Long-lived assets: North America $ 251,822 $ 220,723 $ - $ 80,128 $ 552,673 Europe 102,631 242,311 - - 344,942 Asia Pacific 1,017 3,758 31,007 - 35,782 Other 504 18,037 - - 18,541 Total long-lived assets $ 355,974 $ 484,829 $ 31,007 $ 80,128 $ 951,938 2018 : Revenue from external customers: North America $ 477,083 $ 245,649 $ - $ - $ 722,732 Europe 173,562 168,340 155 - 342,057 Asia Pacific 31,506 59,548 121,975 - 213,029 Other 41,038 66,962 997 - 108,997 Total revenue from external customers $ 723,189 $ 540,499 $ 123,127 $ - $ 1,386,815 Long-lived assets: North America $ 255,131 $ 230,187 $ - $ 76,996 $ 562,314 Europe 125,157 265,688 - - 390,845 Asia Pacific 1,061 3,319 27,872 - 32,252 Other 277 16,387 - - 16,664 Total long-lived assets $ 381,626 $ 515,581 $ 27,872 $ 76,996 $ 1,002,075 2017 : Revenue from external customers: North America $ 487,034 $ 231,674 $ - $ - $ 718,708 Europe 164,641 159,646 310 - 324,597 Asia Pacific 32,717 55,108 121,110 - 208,935 Other 42,634 66,383 1,008 - 110,025 Total revenue from external customers $ 727,026 $ 512,811 $ 122,428 $ - $ 1,362,265 Long-lived assets: North America $ 255,000 $ 207,746 $ - $ 78,113 $ 540,859 Europe 130,897 278,127 - - 409,024 Asia Pacific 1,395 3,075 28,936 - 33,406 Other 380 7,196 - - 7,576 Total long-lived assets $ 387,672 $ 496,144 $ 28,936 $ 78,113 $ 990,865 |
Product Information | The Company’s revenue summarized by product portfolio is as follows: (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated 2019 : Flavors $ 382,447 $ - $ - $ 382,447 Natural Ingredients 214,027 - - 214,027 Fragrances 103,882 - - 103,882 Food & Beverage Colors - 306,274 - 306,274 Cosmetics - 137,043 - 137,043 Other Colors - 91,842 - 91,842 Asia Pacific - - 118,248 118,248 Intersegment Revenue (17,651 ) (13,108 ) (70 ) (30,829 ) Total revenue from external customers $ 682,705 $ 522,051 $ 118,178 $ 1,322,934 2018 : Flavors $ 414,728 $ - $ - $ 414,728 Natural Ingredients 224,280 - - 224,280 Fragrances 107,924 - - 107,924 Food & Beverage Colors - 303,386 - 303,386 Cosmetics - 153,347 - 153,347 Other Colors - 97,271 - 97,271 Asia Pacific - - 123,164 123,164 Intersegment Revenue (23,743 ) (13,505 ) (37 ) (37,285 ) Total revenue from external customers $ 723,189 $ 540,499 $ 123,127 $ 1,386,815 2017 : Flavors $ 439,811 $ - $ - $ 439,811 Natural Ingredients 219,837 - - 219,837 Fragrances 87,295 - - 87,295 Food & Beverage Colors - 279,870 - 279,870 Cosmetics - 147,637 - 147,637 Other Colors - 98,856 - 98,856 Asia Pacific - - 123,193 123,193 Intersegment Revenue (19,917 ) (13,552 ) (765 ) (34,234 ) Total revenue from external customers $ 727,026 $ 512,811 $ 122,428 $ 1,362,265 |
Divestitures (Tables)
Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Divestitures [Abstract] | |
Assets and Liabilities Held for Sale | The assets and liabilities related to the inks and fragrances product lines are recorded in Assets held for sale Liabilities held for sale (in thousands) 2019 Assets held for sale: Trade accounts receivable, less allowance for losses of $2,350 $ 31,653 Inventories 34,612 Prepaid expenses and other current assets 5,528 Property, Plant, and Equipment, net 14,496 Intangible assets 5,004 Assets held for sale $ 91,293 Liabilities held for sale: Trade accounts payable $ 12,318 Accrued salaries, wages and withholdings from employees 1,677 Other accrued expenses 5,190 Liabilities held for sale $ 19,185 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)Segment$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | ||
Nature of Operations [Abstract] | |||||
Number of reportable segments | Segment | 3 | ||||
Inventories [Abstract] | |||||
Inventories include finished and in-process products | $ 313,100 | $ 313,100 | $ 320,400 | ||
Raw materials and supplies | 109,400 | 109,400 | 170,400 | ||
Non-cash impairment charges | 9,800 | ||||
Intangible assets [Abstract] | |||||
Impairment charge | 0 | 0 | $ 0 | ||
Goodwill related to divestitures | (8,400) | (8,385) | [1] | ||
Numerator [Abstract] | |||||
Net earnings | $ 82,047 | $ 157,360 | $ 89,600 | ||
Denominator [Abstract] | |||||
Denominator for basic EPS - weighted average common shares (in shares) | shares | 42,263,000 | 42,404,000 | 43,780,000 | ||
Effect of dilutive securities (in shares) | shares | 31,000 | 95,000 | 251,000 | ||
Denominator for diluted EPS - diluted weighted average shares outstanding (in shares) | shares | 42,294,000 | 42,499,000 | 44,031,000 | ||
Earnings per Common Share [Abstract] | |||||
Basic (in dollars per share) | $ / shares | $ 1.94 | $ 3.71 | $ 2.05 | ||
Diluted (in dollars per share) | $ / shares | $ 1.94 | $ 3.70 | $ 2.03 | ||
Number of antidilutive shares excluded from the diluted EPS calculation (in shares) | shares | 0 | 0 | 0 | ||
Research and Development [Abstract] | |||||
Research and development costs | $ 40,100 | $ 43,000 | $ 40,900 | ||
Advertising [Abstract] | |||||
Advertising costs | 2,200 | 2,500 | $ 2,200 | ||
Recently Adopted/Issued Accounting Pronouncements [Abstract] | |||||
Lease liabilities | 18,855 | $ 18,855 | |||
Minimum [Member] | |||||
Intangible assets [Abstract] | |||||
Useful lives of intangible assets | 5 years | ||||
Maximum [Member] | |||||
Intangible assets [Abstract] | |||||
Useful lives of intangible assets | 20 years | ||||
Derivative Financial Instruments [Abstract] | |||||
Number of months for contracts to mature | 18 months | ||||
ASU 2016-02 [Member] | |||||
Recently Adopted/Issued Accounting Pronouncements [Abstract] | |||||
Right of use assets | 20,700 | ||||
Lease liabilities | $ 20,700 | ||||
Building and Leasehold Improvements [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Abstract] | |||||
Estimated useful lives | 5 years | ||||
Building and Leasehold Improvements [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Abstract] | |||||
Estimated useful lives | 40 years | ||||
Machinery and Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Abstract] | |||||
Estimated useful lives | 3 years | ||||
Machinery and Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Abstract] | |||||
Estimated useful lives | 20 years | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASU 2016-13 [Member] | Minimum [Member] | |||||
Recently Adopted/Issued Accounting Pronouncements [Abstract] | |||||
Allowance for losses on Trade accounts receivable | 500 | $ 500 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASU 2016-13 [Member] | Maximum [Member] | |||||
Recently Adopted/Issued Accounting Pronouncements [Abstract] | |||||
Allowance for losses on Trade accounts receivable | $ 1,000 | $ 1,000 | |||
Forward Exchange Contracts [Member] | Maximum [Member] | |||||
Derivative Financial Instruments [Abstract] | |||||
Number of months for contracts to mature | 18 months | ||||
[1] | In the fourth quarter of 2019, the Company met all of the assets held for sale criteria related to the anticipated divestitures of its inks and fragrances (excluding its essential oils product line) product lines. Goodwill of $8.4 million was allocated to those disposal groups and was determined to be fully impaired based on the estimated fair value of each of the disposal groups. See Note 15, Divestitures, for additional information. |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Jul. 10, 2018 | Mar. 09, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Acquisition [Abstract] | |||||
Acquisition of new businesses | $ 0 | $ (31,100) | $ 0 | ||
Goodwill | $ 407,042 | $ 416,175 | $ 408,995 | ||
Globe Natural [Member] | |||||
Acquisition [Abstract] | |||||
Acquisition of new businesses | $ (10,800) | ||||
Net assets acquired | 1,400 | ||||
Goodwill | 7,400 | ||||
Globe Natural [Member] | Customer Relationships [Member] | |||||
Acquisition [Abstract] | |||||
Intangibles assets acquired | $ 2,000 | ||||
Mazza Innovation Limited [Member] | |||||
Acquisition [Abstract] | |||||
Acquisition of new businesses | $ (19,800) | ||||
Net assets acquired | 4,000 | ||||
Goodwill | 8,900 | ||||
Mazza Innovation Limited [Member] | Technological Know-how [Member] | |||||
Acquisition [Abstract] | |||||
Intangibles assets acquired | $ 6,900 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible assets [Abstract] | |||
Cost | $ 21,540 | $ 39,192 | |
Accumulated Amortization | (9,738) | (20,325) | |
Intangible assets | 11,802 | 18,867 | |
Intangible assets expense [Abstract] | |||
Amortization expense of intangible assets | 2,900 | 2,300 | $ 1,600 |
Estimated Amortization Expense [Abstract] | |||
2020 | 1,800 | ||
2021 | 1,800 | ||
2022 | 1,800 | ||
2023 | 1,500 | ||
2024 | 1,300 | ||
Held-for-sale [Member] | |||
Intangible assets [Abstract] | |||
Cost | 18,800 | ||
Accumulated Amortization | 13,800 | ||
Intangible assets | $ 5,000 | ||
Weighted Average [Member] | |||
Intangible assets [Abstract] | |||
Weighted Average Amortization Years | 16 years | ||
Technological Know-how [Member] | |||
Intangible assets [Abstract] | |||
Cost | $ 7,570 | 14,570 | |
Accumulated Amortization | $ (1,391) | (6,768) | |
Technological Know-how [Member] | Weighted Average [Member] | |||
Intangible assets [Abstract] | |||
Weighted Average Amortization Years | 17 years 9 months 18 days | ||
Customer Relationships [Member] | |||
Intangible assets [Abstract] | |||
Cost | $ 3,474 | 8,761 | |
Accumulated Amortization | $ (1,653) | (5,673) | |
Customer Relationships [Member] | Weighted Average [Member] | |||
Intangible assets [Abstract] | |||
Weighted Average Amortization Years | 13 years 7 months 6 days | ||
Patents, Trademarks, Non-compete Agreements and Other [Member] | |||
Intangible assets [Abstract] | |||
Cost | $ 10,496 | 15,861 | |
Accumulated Amortization | $ (6,694) | $ (7,884) | |
Patents, Trademarks, Non-compete Agreements and Other [Member] | Weighted Average [Member] | |||
Intangible assets [Abstract] | |||
Weighted Average Amortization Years | 15 years 6 months |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Goodwill activity [Roll Forward] | |||||
Balance as of beginning of period | $ 416,175 | $ 408,995 | |||
Currency translation impact | (748) | (9,108) | |||
Acquisitions | 16,288 | ||||
Goodwill related to divestitures | $ (8,400) | (8,385) | [1] | ||
Balance as of end of period | 407,042 | 407,042 | 416,175 | ||
Flavors and Fragrances [Member] | |||||
Goodwill activity [Roll Forward] | |||||
Balance as of beginning of period | 112,086 | 112,977 | |||
Currency translation impact | (184) | (891) | |||
Acquisitions | 0 | ||||
Goodwill related to divestitures | [1] | (3,754) | |||
Balance as of end of period | 108,148 | 108,148 | 112,086 | ||
Color [Member] | |||||
Goodwill activity [Roll Forward] | |||||
Balance as of beginning of period | 298,908 | 290,889 | |||
Currency translation impact | (641) | (8,269) | |||
Acquisitions | 16,288 | ||||
Goodwill related to divestitures | [1] | (4,631) | |||
Balance as of end of period | 293,636 | 293,636 | 298,908 | ||
Asia Pacific [Member] | |||||
Goodwill activity [Roll Forward] | |||||
Balance as of beginning of period | 5,181 | 5,129 | |||
Currency translation impact | 77 | 52 | |||
Acquisitions | 0 | ||||
Goodwill related to divestitures | [1] | 0 | |||
Balance as of end of period | $ 5,258 | $ 5,258 | $ 5,181 | ||
[1] | In the fourth quarter of 2019, the Company met all of the assets held for sale criteria related to the anticipated divestitures of its inks and fragrances (excluding its essential oils product line) product lines. Goodwill of $8.4 million was allocated to those disposal groups and was determined to be fully impaired based on the estimated fair value of each of the disposal groups. See Note 15, Divestitures, for additional information. |
Debt (Details)
Debt (Details) $ in Thousands, € in Millions, £ in Millions | May 31, 2017USD ($) | Jul. 31, 2018EUR (€) | Jul. 31, 2018GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019GBP (£)Interest / DebtDebt / EBITDA | Dec. 31, 2019USD ($)Interest / DebtDebt / EBITDA | Oct. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Apr. 30, 2017USD ($) | |
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | $ 689,782 | $ 598,674 | |||||||||||
Less debt fees | (229) | (175) | |||||||||||
Total long-term debt | 689,553 | 598,499 | |||||||||||
Accounts receivable securitization program commitment amount | 65,000 | $ 65,000 | $ 70,000 | $ 60,000 | |||||||||
Maximum borrowing capacity, secured loan | 65,000 | $ 60,000 | |||||||||||
Credit facility, borrowings outstanding | 70,000 | 65,000 | |||||||||||
Proceeds from additional borrowings | $ 47,083 | 322,529 | $ 231,174 | ||||||||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | |||||||||||||
Amounts due in 2020 | 128,300 | ||||||||||||
Amounts due in 2021 | 14,600 | ||||||||||||
Amounts due in 2022 | 118,300 | ||||||||||||
Amounts due in 2023 | 151,200 | ||||||||||||
Amounts due in 2024 | 83,200 | ||||||||||||
Thereafter | 102,900 | ||||||||||||
Stand-by letters of credit outstanding | 6,400 | 2,600 | |||||||||||
Short-term borrowings [Abstract] | |||||||||||||
Short-term borrowings | $ 20,046 | $ 20,612 | |||||||||||
Weighted-average interest rates on short-term borrowings | 3.24% | 2.53% | 2.53% | ||||||||||
Minimum [Member] | |||||||||||||
Debt covenants [Abstract] | |||||||||||||
Interest coverage, actual | Interest / Debt | 5.25 | 5.25 | |||||||||||
Interest coverage, required | Interest / Debt | 2 | 2 | |||||||||||
Maximum [Member] | |||||||||||||
Debt covenants [Abstract] | |||||||||||||
Debt to EBITDA, actual | Debt / EBITDA | [1] | 2.86 | 2.86 | ||||||||||
Debt to EBITDA, required | Debt / EBITDA | [1] | 3.50 | 3.50 | ||||||||||
LIBOR [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Interest rate | 0.70% | ||||||||||||
Revolving Credit Facility [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | $ 142,061 | $ 134,393 | |||||||||||
Average interest rate | 2.08% | 1.44% | 1.44% | ||||||||||
Maximum borrowing capacity, secured loan | $ 350,000 | ||||||||||||
Proceeds from additional borrowings | € 45 | £ 50 | |||||||||||
Long term debt additional disclosures [Abstract] | |||||||||||||
Remaining borrowing capacity | $ 319,500 | ||||||||||||
Revolving Credit Facility [Member] | Minimum [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Maturity date | Nov. 30, 2020 | ||||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Maturity date | May 31, 2022 | ||||||||||||
Other Line of Credit Facility [Member] | |||||||||||||
Long term debt additional disclosures [Abstract] | |||||||||||||
Remaining borrowing capacity | 58,100 | ||||||||||||
U.S. Credit Facilities [Member] | |||||||||||||
Short-term borrowings [Abstract] | |||||||||||||
Short-term borrowings | $ 19,768 | 20,280 | |||||||||||
Loans of Foreign Subsidiaries [Member] | |||||||||||||
Short-term borrowings [Abstract] | |||||||||||||
Short-term borrowings | 278 | 332 | |||||||||||
3.66% Senior Notes due November 2023 [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | 75,000 | $ 75,000 | |||||||||||
Interest rate, stated percentage | 3.66% | 3.66% | |||||||||||
Maturity date | Nov. 30, 2023 | ||||||||||||
3.65% Senior Notes due May 2024 [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | 27,000 | $ 27,000 | |||||||||||
Interest rate, stated percentage | 3.65% | 3.65% | |||||||||||
Maturity date | May 31, 2024 | ||||||||||||
4.19% Senior Notes due November 2025 [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | 25,000 | $ 25,000 | |||||||||||
Interest rate, stated percentage | 4.19% | 4.19% | |||||||||||
Maturity date | Nov. 30, 2025 | ||||||||||||
Debt instrument amount | $ 25,000 | ||||||||||||
1.27% Euro-denominated Senior Notes due May 2024 [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | 57,333 | $ 56,066 | |||||||||||
Interest rate, stated percentage | 1.27% | 1.27% | |||||||||||
Maturity date | May 31, 2024 | ||||||||||||
1.71% Euro-denominated Senior Notes due May 2027 [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | 45,866 | $ 44,853 | |||||||||||
Interest rate, stated percentage | 1.71% | 1.71% | |||||||||||
Maturity date | May 31, 2027 | ||||||||||||
3.06% Euro-denominated Senior Notes due November 2023 [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | 43,856 | $ 42,887 | |||||||||||
Interest rate, stated percentage | 3.06% | 3.06% | |||||||||||
Maturity date | Nov. 30, 2023 | ||||||||||||
1.85% Euro-denominated Senior Notes due November 2022 [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | 76,662 | $ 74,968 | |||||||||||
Interest rate, stated percentage | 1.85% | 1.85% | |||||||||||
Maturity date | Nov. 30, 2022 | ||||||||||||
2.53% British Pound-denominated Notes due November 2023 [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | 31,884 | $ 33,143 | |||||||||||
Interest rate, stated percentage | 2.53% | 2.53% | |||||||||||
Maturity date | Nov. 30, 2023 | ||||||||||||
Debt instrument amount | £ | £ 25 | ||||||||||||
2.76% British Pound-denominated Notes due November 2025 [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | 31,884 | $ 33,143 | |||||||||||
Interest rate, stated percentage | 2.76% | 2.76% | |||||||||||
Maturity date | Nov. 30, 2025 | ||||||||||||
Debt instrument amount | £ | £ 25 | ||||||||||||
Term Loan [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | $ 132,313 | $ 51,438 | |||||||||||
Average interest rate | 3.48% | 3.83% | 3.83% | ||||||||||
Maximum borrowing capacity, secured loan | 145,000 | $ 115,000 | |||||||||||
Credit facility increased amount | 30,000 | ||||||||||||
Credit facility, borrowings outstanding | $ 51,400 | ||||||||||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | |||||||||||||
Amounts due in 2020 | $ 12,800 | ||||||||||||
Term Loan [Member] | Euro Revolving Credit Facility [Member] | |||||||||||||
Aggregate amounts of contractual maturities of long-term debt [Abstract] | |||||||||||||
Amounts due in 2020 | 50,500 | ||||||||||||
Various Other Notes [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Long term debt | $ 923 | $ 783 | |||||||||||
Private Placement Notes [Member] | |||||||||||||
Schedule of long term debt [Abstract] | |||||||||||||
Debt instrument amount | £ | £ 50 | ||||||||||||
[1] | Debt to EBITDA is defined in the Company’s debt covenants as total funded debt divided by the Company’s consolidated operating income excluding non-operating gains and losses and depreciation and amortization. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative instruments and hedging activity for the period [Abstract] | |||
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ 3,091 | $ 13,661 | $ (28,871) |
Maximum [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Number of months for contracts to mature | 18 months | ||
Forward Exchange Contracts [Member] | Maximum [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Number of months for contracts to mature | 18 months | ||
Forward Exchange Contracts [Member] | Cash Flow Hedging [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Derivative, fair value | $ 59,900 | 76,000 | |
Foreign Currency Denominated Debt, Net Investment Hedging [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Carrying value of foreign denominated debt | 363,400 | 366,500 | |
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ 3,100 | $ 13,700 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Additional Disclosures [Abstract] | ||||
Total pre-tax share-based compensation recognized in the Consolidated Statements of Earnings | $ (700) | $ 500 | $ 5,900 | |
Tax related (costs) benefits | (200) | $ (300) | $ 500 | |
Adjustments to share-based compensation | $ 3,600 | |||
Non-vested Stock [Member] | ||||
Stock Unit Activity [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 380 | 412 | 435 | |
Granted (in shares) | 134 | 142 | 115 | |
Vested (in shares) | (46) | (111) | (114) | |
Cancelled (in shares) | (64) | (63) | (24) | |
Outstanding, end of period (in shares) | 404 | 380 | 412 | |
Grant Date Weighted Average Fair Value [Abstract] | ||||
Outstanding, beginning of period (in dollars per share) | $ 66.02 | $ 65.64 | $ 56.44 | |
Granted (in dollars per share) | 60.04 | 59.45 | 74.26 | |
Vested (in dollars per share) | 63.61 | 56.91 | 39.75 | |
Cancelled (in dollars per share) | 62.39 | 64.71 | 63.62 | |
Outstanding, end of period (in dollars per share) | $ 64.89 | $ 66.02 | $ 65.64 | |
Outstanding, aggregate intrinsic value | $ 26,710 | $ 21,239 | $ 30,113 | $ 34,184 |
Additional Disclosures [Abstract] | ||||
Total intrinsic values of shares vested | 3,000 | $ 7,700 | $ 8,800 | |
Non-vested Stock and Performance Stock Units [Member] | ||||
Additional Disclosures [Abstract] | ||||
Compensation cost net yet recognized | $ 10,700 | |||
Compensation cost not yet recognized, period for recognition | 2 years 6 months 14 days | |||
2017 Stock Plan [Member] | Non-vested Stock [Member] | ||||
Share-based Compensation Arrangement [Abstract] | ||||
Number of shares authorized for issuance (in shares) | 1,800 | |||
Number of shares available for grant (in shares) | 1,400 | |||
Award vesting period | 3 years | |||
Percentage of grants to elected officers that will be performance stock unit awards | 100.00% | 100.00% | 100.00% | |
Number of years to measure performance metrics | 3 years | 3 years | 3 years | |
2017 Stock Plan [Member] | Non-vested Stock [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement [Abstract] | ||||
Percentage of stated performance metrics award of grant | 200.00% | 150.00% | 150.00% |
Retirement Plans, Defined Contr
Retirement Plans, Defined Contribution Plans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Facility | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
2014 Restructuring Plan [Member] | |||
Facilities closed associated with defined benefit plan [Abstract] | |||
Number of facilities closed associated with the defined benefit plan | Facility | 2 | ||
Defined Contribution Plan [Member] | |||
Defined Contribution Plans Disclosure [Abstract] | |||
Percentage of matching contributions under defined contribution plan | 4.00% | ||
Total expense for defined contribution plans | $ 6,000 | $ 6,000 | $ 6,000 |
Pension Plan [Member] | |||
Benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 34,152 | 37,757 | |
Service cost | 1,432 | 1,465 | 1,939 |
Interest cost | 1,273 | 1,137 | 1,222 |
Foreign currency exchange rate changes | 558 | (761) | |
Benefits paid | (1,899) | (2,480) | |
Amendments | 0 | 145 | |
Actuarial loss (gain) | 3,905 | (3,111) | |
Benefit obligation at end of year | 39,421 | 34,152 | 37,757 |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at beginning of year | 28,299 | 31,768 | |
Company contributions | 1,086 | 886 | |
Foreign currency exchange rate changes | 968 | (1,315) | |
Benefits paid | (1,899) | (2,480) | |
Actual gain (loss) on plan assets | 3,322 | (560) | |
Plan assets at end of year | 31,776 | 28,299 | 31,768 |
Funded status | (7,645) | (5,853) | |
Accumulated benefit obligation | 38,596 | 33,562 | |
Amounts recognized in Consolidated Balance Sheets [Abstract] | |||
Accrued employee and retiree benefits | (17,143) | (15,245) | |
Other accrued expenses | (710) | (779) | |
Other assets | 10,208 | 10,171 | |
Net liability | (7,645) | (5,853) | |
Components of annual benefit cost [Abstract] | |||
Service cost | 1,432 | 1,465 | 1,939 |
Interest cost | 1,273 | 1,137 | 1,222 |
Expected return on plan assets | (896) | (896) | (892) |
Recognized actuarial gain | (176) | (141) | (187) |
Settlement (income) expense | 0 | (179) | 3,796 |
Defined benefit expense | $ 1,633 | $ 1,386 | 5,878 |
Weighted average liability assumptions [Abstract] | |||
Discount rate | 2.69% | 3.80% | |
Expected return on plan assets | 2.68% | 3.21% | |
Rate of compensation increase | 0.34% | 0.31% | |
Weighted average cost assumption [Abstract] | |||
Discount rate | 3.80% | 3.16% | |
Expected return on plan assets | 3.21% | 3.03% | |
Rate of compensation increase | 0.31% | 0.33% | |
Estimated Future Benefit Payments [Abstract] | |||
2020 | $ 1,700 | ||
2021 | 1,700 | ||
2022 | 4,200 | ||
2023 | 1,800 | ||
2024 | 4,100 | ||
2025 through 2029 | 12,500 | ||
Estimated future employer contributions for next fiscal year | 1,100 | ||
Amounts recognized in Accumulated Other Comprehensive Loss [Abstract] | |||
Unrecognized net actuarial loss (gain) | 683 | $ (901) | |
Prior service cost | 146 | 145 | |
Total before tax effects | 829 | (756) | |
Other Comprehensive Income (Loss), Pension Adjustment, Net of Tax [Abstract] | |||
Net actuarial (loss) gain arising during the period | (1,091) | 1,257 | 921 |
Prior service cost | 0 | (127) | 0 |
Amortization of actuarial (gain) loss, included in defined benefit expense | (130) | (103) | 1,307 |
Pension adjustment, net of tax | (1,221) | $ 1,027 | $ 2,228 |
Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||
Expected amortization of actuarial loss in next fiscal year | $ (100) |
Retirement Plans, Pension Plan
Retirement Plans, Pension Plan Assets (Details) - Pension Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | $ 31,776 | $ 28,299 | $ 31,768 |
Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 7,351 | 6,543 | |
Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 24,425 | 21,756 | |
Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Domestic [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 6,003 | 5,385 | |
Domestic [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 6,003 | 5,385 | |
Domestic [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Domestic [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
International [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 104 | 83 | |
International [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
International [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 104 | 83 | |
International [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
International Fixed Income Funds [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 25,556 | 22,703 | |
International Fixed Income Funds [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 1,269 | 1,111 | |
International Fixed Income Funds [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 24,287 | 21,592 | |
International Fixed Income Funds [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Other Investments [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 113 | 128 | |
Other Investments [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 79 | 47 | |
Other Investments [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 34 | 81 | |
Other Investments [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | $ 0 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Extended lease term | 5 years | ||
Operating lease expense | $ 11,200 | ||
Operating rent expense | $ 13,500 | $ 12,100 | |
Cash paid for operating leases | 9,900 | ||
Right-of-use assets in exchange for operating lease obligations | 7,100 | ||
Operating Lease, Liability, Noncurrent | $ 9,900 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | ||
Weighted average remaining operating lease term | 3 years 7 months 6 days | ||
Weighted average discount rate for operating leases | 4.50% | ||
Maturities of Operating Lease Liabilities [Abstract] | |||
2020 | $ 8,429 | ||
2021 | 4,969 | ||
2022 | 2,641 | ||
2023 | 1,582 | ||
2024 | 1,187 | ||
Thereafter | 1,517 | ||
Total lease payments | 20,325 | ||
Less imputed interest | (1,470) | ||
Present value of lease liabilities | 18,855 | ||
Assets Held for Sale [Member] | |||
Leases [Abstract] | |||
Right-of-use assets | $ 1,800 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:AssetsOfDisposalGroupIncludingDiscontinuedOperationCurrent | ||
Other Assets [Member] | |||
Leases [Abstract] | |||
Right-of-use assets | $ 16,800 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | ||
Liabilities Held for Sale [Member] | |||
Leases [Abstract] | |||
Operating Lease, Liability, Current | $ 1,800 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LiabilitiesOfDisposalGroupIncludingDiscontinuedOperationCurrent | ||
Other Accrued Expenses [Member] | |||
Leases [Abstract] | |||
Operating Lease, Liability, Current | $ 7,200 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherAccruedLiabilitiesCurrent |
Accounts Receivable Securitiz_2
Accounts Receivable Securitization (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2019 | Oct. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts Receivable Securitization [Abstract] | |||||
Maximum borrowing capacity, secured loan | $ 65 | $ 60 | |||
Increase in trade account receivables | $ 60 | ||||
Increase in long term debt | 60 | ||||
Accounts receivable securitization program commitment amount | 65 | $ 65 | $ 70 | $ 60 | |
Credit facility, borrowings outstanding | $ 70 | $ 65 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 859,947 | |||
Other comprehensive income (loss) before reclassifications | 2,912 | $ (14,878) | $ 55,858 | |
Amounts reclassified from OCI | (365) | 46 | 8,273 | |
Adoption of ASU 2018-02 | (1,389) | |||
Ending balance | 881,589 | 859,947 | ||
Accumulated Other Comprehensive (Loss) Income [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (165,555) | (149,334) | (213,465) | |
Ending balance | (163,008) | (165,555) | (149,334) | |
Cash Flow Hedges [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | [1] | 147 | (669) | (85) |
Other comprehensive income (loss) before reclassifications | [1] | (111) | 667 | (768) |
Amounts reclassified from OCI | [1] | (235) | 149 | 184 |
Adoption of ASU 2018-02 | [1] | 0 | ||
Ending balance | [1] | (199) | 147 | (669) |
Pension Items [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | [1] | 549 | (309) | (2,537) |
Other comprehensive income (loss) before reclassifications | [1] | (1,091) | 1,130 | 921 |
Amounts reclassified from OCI | [1] | (130) | (103) | 1,307 |
Adoption of ASU 2018-02 | [1] | (169) | ||
Ending balance | [1] | (672) | 549 | (309) |
Foreign Currency Items [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (166,251) | (148,356) | (210,843) | |
Other comprehensive income (loss) before reclassifications | 4,114 | (16,675) | 55,705 | |
Amounts reclassified from OCI | 0 | 0 | 6,782 | |
Adoption of ASU 2018-02 | (1,220) | |||
Ending balance | $ (162,137) | $ (166,251) | $ (148,356) | |
[1] | Cash Flow Hedges and Pension Items are net of tax. |
Income Taxes, Provision for inc
Income Taxes, Provision for income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Currently (receivable) payable [Abstract] | ||||
Federal | [1] | $ 12,994 | $ (9,071) | $ 15,513 |
State | 2,622 | 205 | 642 | |
Foreign | 22,680 | 23,187 | 25,254 | |
Current income tax (expense), total | 38,296 | 14,321 | 41,409 | |
Deferred expense (benefit) [Abstract] | ||||
Federal | (17,246) | 3,977 | 18,458 | |
State | 18 | 3,164 | 215 | |
Foreign | (2,112) | 2,703 | (1,259) | |
Deferred income tax (expense), total | (19,340) | 9,844 | 17,414 | |
Income taxes | 18,956 | 24,165 | $ 58,823 | |
Transition tax for accumulated foreign earnings, Income tax (benefit) expense | $ (3,900) | 7,400 | ||
Transition tax for accumulated foreign earnings, Liability, Noncurrent | $ 0 | |||
[1] | In 2018 and 2017, this amount includes $(3.9) million and $7.4 million, respectively, of income tax (benefit) expense related to the one-time transition tax on earnings of foreign subsidiaries enacted by the 2017 Tax Legislation (See discussion below). There was no liability for this amount recorded as of December 31, 2018. |
Income Taxes, Deferred Tax Asse
Income Taxes, Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Deferred tax assets [Abstract] | ||||
Benefit plans | $ 6,293 | $ 6,788 | ||
Liabilities and reserves | 21,085 | 12,563 | ||
Operating loss and credit carryovers | [1] | 82,000 | 65,392 | |
Other | 1,126 | 1,404 | ||
Gross deferred tax assets | 110,504 | 86,147 | ||
Valuation allowance | [1] | (54,326) | (50,702) | |
Deferred tax assets | 56,178 | 35,445 | ||
Deferred tax liabilities [Abstract] | ||||
Property, plant and equipment | (29,869) | (29,372) | ||
Goodwill | (21,744) | (21,372) | ||
Other | (5,192) | (4,488) | ||
Deferred tax liabilities | (56,805) | (55,232) | ||
Net deferred tax liabilities | $ (627) | $ (19,787) | ||
Increase in valuation allowance amount | $ 16,200 | |||
[1] | In the first quarter of 2019, the Company recognized an increase in its foreign tax credit carryover and corresponding valuation allowance of $16.2 million, related to the finalization of certain tax regulations. |
Income Taxes, Operating Loss Ca
Income Taxes, Operating Loss Carryovers, Tax Reconciliation and Tax Cuts and Jobs Act (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Taxes [Abstract] | ||||||
Deferred tax liabilities, held for sale | $ 600 | |||||
Operating Loss Carryforwards [Abstract] | ||||||
Operating loss carryovers, tax credit | 40,600 | |||||
Increase in valuation allowance for deferred tax assets, related to operating losses | 6,800 | |||||
2017 Tax Act [Abstract] | ||||||
Provisional income tax expense | $ 18,400 | |||||
Provisional income tax expense, change in amount | $ (6,600) | |||||
Income tax expense | 11,800 | |||||
Valuation Allowance [Abstract] | ||||||
Valuation allowance | [1] | $ (54,326) | $ (50,702) | |||
Increase in valuation allowance amount | $ 16,200 | |||||
Effective tax rate reconciliation [Abstract] | ||||||
Taxes at statutory rate | 21.00% | 21.00% | 35.00% | |||
State income taxes, net of federal income tax benefit | 2.20% | 1.10% | 0.30% | |||
Tax credits | (2.60%) | (1.50%) | (1.10%) | |||
Taxes on foreign earnings | 5.10% | (0.40%) | 0.20% | |||
Global Intangible Low-Taxed Income | 0.90% | 0.60% | 0.00% | |||
Resolution of prior years' tax matters | (0.40%) | (0.30%) | 0.10% | |||
U.S. manufacturing deduction | 0.00% | 0.00% | (1.40%) | |||
Valuation allowance adjustments | (8.80%) | 0.40% | 0.00% | |||
2017 Tax Legislation | 0.00% | (3.70%) | 12.40% | |||
Loss on foreign branch remittances | 0.00% | 0.00% | (5.20%) | |||
U.S. tax accounting method changes | 0.00% | (2.90%) | 0.00% | |||
Other, net | 1.40% | (1.00%) | (0.70%) | |||
Effective tax rate | 18.80% | 13.30% | 39.60% | |||
Foreign [Member] | ||||||
Operating Loss Carryforwards [Abstract] | ||||||
Operating loss carryovers | $ 120,900 | |||||
Operating loss carryovers, subject to expiration | 26,100 | |||||
Operating loss carryovers, not subject to expiration | 94,800 | |||||
State [Member] | ||||||
Operating Loss Carryforwards [Abstract] | ||||||
Operating loss carryovers | 135,800 | |||||
Operating loss carryovers, subject to expiration | $ 135,800 | |||||
[1] | In the first quarter of 2019, the Company recognized an increase in its foreign tax credit carryover and corresponding valuation allowance of $16.2 million, related to the finalization of certain tax regulations. |
Income Taxes, Earnings Before I
Income Taxes, Earnings Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings before income taxes [Abstract] | |||
United States | $ 38,356 | $ 80,641 | $ 88,479 |
Foreign | 62,647 | 100,884 | 59,944 |
Total | $ 101,003 | $ 181,525 | $ 148,423 |
Income Taxes, Unrecognized Tax
Income Taxes, Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of change in liability for unrecognized tax benefits [Roll Forward] | ||
Balance at beginning of year | $ 6,026 | $ 6,276 |
Increases for tax positions taken in the current year | 750 | 834 |
Increases for tax positions taken in prior years | 199 | 271 |
Decreases related to settlements with tax authorities | (341) | (177) |
Decreases as a result of lapse of the applicable statutes of limitations | (591) | (920) |
Foreign currency exchange rate changes | (11) | (258) |
Balance at the end of year | 6,032 | 6,026 |
Income tax uncertainties [Abstract] | ||
Unrecognized tax benefits that would impact the effective tax rate, if recognized | 4,900 | |
Income tax interest and penalties accrued | 600 | $ 500 |
Expected decrease in liability for unrecognized tax benefits in the next fiscal year | 600 | |
Unrecognized tax benefits that would impact the effective tax rate in the next fiscal year | 600 | |
Undistributed earnings | 580,000 | |
Withholding of tax liability | $ 24,700 |
Segment and Geographic Inform_3
Segment and Geographic Information, Reportable Segments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment and Geographic Information [Abstract] | |||
Number of reportable segment | Segment | 3 | ||
Divestiture and other related costs | $ 0 | ||
Restructuring and other costs | $ 0 | 0 | $ 36,500 |
Revenue [Abstract] | |||
Revenue | 1,322,934 | 1,386,815 | 1,362,265 |
Operating income (loss) | 121,110 | 203,378 | 167,806 |
Interest expense | 20,107 | 21,853 | 19,383 |
Earnings before income taxes | 101,003 | 181,525 | 148,423 |
Assets | 1,740,151 | 1,824,940 | 1,724,340 |
Capital expenditures | 39,100 | 50,740 | 56,344 |
Depreciation and amortization | 55,015 | 53,244 | 48,518 |
Flavors & Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | 682,705 | 723,189 | 727,026 |
Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 522,051 | 540,499 | 512,811 |
Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 118,178 | 123,127 | 122,428 |
Reportable Segments [Member] | |||
Revenue [Abstract] | |||
Revenue | 1,353,763 | 1,424,100 | 1,396,499 |
Reportable Segments [Member] | Flavors & Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | 700,356 | 746,932 | 746,943 |
Operating income (loss) | 74,961 | 96,433 | 114,343 |
Interest expense | 0 | 0 | 0 |
Earnings before income taxes | 74,961 | 96,433 | 114,343 |
Assets | 714,779 | 782,145 | 771,157 |
Capital expenditures | 16,968 | 23,679 | 31,989 |
Depreciation and amortization | 27,179 | 25,922 | 23,611 |
Reportable Segments [Member] | Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 535,159 | 554,004 | 526,363 |
Operating income (loss) | 101,190 | 113,306 | 113,381 |
Interest expense | 0 | 0 | 0 |
Earnings before income taxes | 101,190 | 113,306 | 113,381 |
Assets | 734,343 | 752,305 | 720,328 |
Capital expenditures | 16,521 | 21,744 | 18,797 |
Depreciation and amortization | 22,088 | 21,931 | 19,902 |
Reportable Segments [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 118,248 | 123,164 | 123,193 |
Operating income (loss) | 19,382 | 20,856 | 20,772 |
Interest expense | 0 | 0 | 0 |
Earnings before income taxes | 19,382 | 20,856 | 20,772 |
Assets | 99,183 | 103,808 | 101,786 |
Capital expenditures | 2,545 | 2,858 | 3,557 |
Depreciation and amortization | 2,581 | 2,451 | 2,303 |
Intersegment Revenue [Member] | |||
Revenue [Abstract] | |||
Revenue | (30,829) | (37,285) | (34,234) |
Intersegment Revenue [Member] | Flavors & Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | (17,651) | (23,743) | (19,917) |
Intersegment Revenue [Member] | Color [Member] | |||
Revenue [Abstract] | |||
Revenue | (13,108) | (13,505) | (13,552) |
Intersegment Revenue [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | (70) | (37) | (765) |
Corporate & Other [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Operating income (loss) | (74,423) | (27,217) | (80,690) |
Interest expense | 20,107 | 21,853 | 19,383 |
Earnings before income taxes | (94,530) | (49,070) | (100,073) |
Assets | 191,846 | 186,682 | 131,069 |
Capital expenditures | 3,066 | 2,459 | 2,001 |
Depreciation and amortization | $ 3,167 | $ 2,940 | $ 2,702 |
Segment and Geographic Inform_4
Segment and Geographic Information, Segment and Geographic Info (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | $ 1,322,934 | $ 1,386,815 | $ 1,362,265 |
Long-lived assets | 951,938 | 1,002,075 | 990,865 |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 700,098 | 722,732 | 718,708 |
Long-lived assets | 552,673 | 562,314 | 540,859 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 307,631 | 342,057 | 324,597 |
Long-lived assets | 344,942 | 390,845 | 409,024 |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 205,979 | 213,029 | 208,935 |
Long-lived assets | 35,782 | 32,252 | 33,406 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 109,226 | 108,997 | 110,025 |
Long-lived assets | 18,541 | 16,664 | 7,576 |
Flavors & Fragrances [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 682,705 | 723,189 | 727,026 |
Long-lived assets | 355,974 | 381,626 | 387,672 |
Color [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 522,051 | 540,499 | 512,811 |
Long-lived assets | 484,829 | 515,581 | 496,144 |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 118,178 | 123,127 | 122,428 |
Long-lived assets | 31,007 | 27,872 | 28,936 |
Reportable Geographical Components [Member] | United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 575,200 | 586,200 | 574,500 |
Long-lived assets | 471,800 | 484,900 | 485,200 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 448,393 | 477,083 | 487,034 |
Long-lived assets | 251,822 | 255,131 | 255,000 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 158,902 | 173,562 | 164,641 |
Long-lived assets | 102,631 | 125,157 | 130,897 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 32,203 | 31,506 | 32,717 |
Long-lived assets | 1,017 | 1,061 | 1,395 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 43,207 | 41,038 | 42,634 |
Long-lived assets | 504 | 277 | 380 |
Reportable Geographical Components [Member] | Color [Member] | North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 251,593 | 245,649 | 231,674 |
Long-lived assets | 220,723 | 230,187 | 207,746 |
Reportable Geographical Components [Member] | Color [Member] | Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 148,393 | 168,340 | 159,646 |
Long-lived assets | 242,311 | 265,688 | 278,127 |
Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 57,268 | 59,548 | 55,108 |
Long-lived assets | 3,758 | 3,319 | 3,075 |
Reportable Geographical Components [Member] | Color [Member] | Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 64,797 | 66,962 | 66,383 |
Long-lived assets | 18,037 | 16,387 | 7,196 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 112 | 0 | 0 |
Long-lived assets | 0 | 0 | 0 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 336 | 155 | 310 |
Long-lived assets | 0 | 0 | 0 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 116,508 | 121,975 | 121,110 |
Long-lived assets | 31,007 | 27,872 | 28,936 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 1,222 | 997 | 1,008 |
Long-lived assets | 0 | 0 | 0 |
Intersegment Revenue [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | (30,829) | (37,285) | (34,234) |
Intersegment Revenue [Member] | Flavors & Fragrances [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | (17,651) | (23,743) | (19,917) |
Intersegment Revenue [Member] | Color [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | (13,108) | (13,505) | (13,552) |
Intersegment Revenue [Member] | Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | (70) | (37) | (765) |
Corporate & Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | 80,128 | 76,996 | 78,113 |
Corporate & Other [Member] | North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | 80,128 | 76,996 | 78,113 |
Corporate & Other [Member] | Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | 0 | 0 | 0 |
Corporate & Other [Member] | Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | 0 | 0 | 0 |
Corporate & Other [Member] | Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | $ 0 | $ 0 | $ 0 |
Segment and Geographic Inform_5
Segment and Geographic Information, Revenue from External Customers by Products Line (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue [Abstract] | |||
Revenue | $ 1,322,934 | $ 1,386,815 | $ 1,362,265 |
Flavors [Member] | |||
Revenue [Abstract] | |||
Revenue | 382,447 | 414,728 | 439,811 |
Natural Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 214,027 | 224,280 | 219,837 |
Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | 103,882 | 107,924 | 87,295 |
Food & Beverage Colors [Member] | |||
Revenue [Abstract] | |||
Revenue | 306,274 | 303,386 | 279,870 |
Cosmetics [Member] | |||
Revenue [Abstract] | |||
Revenue | 137,043 | 153,347 | 147,637 |
Other Colors [Member] | |||
Revenue [Abstract] | |||
Revenue | 91,842 | 97,271 | 98,856 |
Flavors & Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | 682,705 | 723,189 | 727,026 |
Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 522,051 | 540,499 | 512,811 |
Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 118,178 | 123,127 | 122,428 |
Asia Pacific [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 118,248 | 123,164 | 123,193 |
Intersegment Revenue [Member] | |||
Revenue [Abstract] | |||
Revenue | (30,829) | (37,285) | (34,234) |
Intersegment Revenue [Member] | Flavors & Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | (17,651) | (23,743) | (19,917) |
Intersegment Revenue [Member] | Color [Member] | |||
Revenue [Abstract] | |||
Revenue | (13,108) | (13,505) | (13,552) |
Intersegment Revenue [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | $ (70) | $ (37) | $ (765) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Fair Value Disclosure [Abstract] | ||
Impairment on disposal groups | $ 34 | |
Fair value of disposal groups | 72 | |
Level 2 [Member] | Fair Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | 620 | $ 695 |
Level 2 [Member] | Carrying Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | $ 598.5 | $ 689.6 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Costs [Abstract] | |||
Total restructuring costs | $ 0 | $ 0 | $ 36.5 |
Restructuring cost due to loss on asset sales | $ 21.6 |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Divestiture Transactions [Abstract] | ||||||
Non-cash impairment charges | $ 9,800 | |||||
Proceeds from divesture of business | $ 12,500 | $ 0 | $ 0 | $ 12,457 | ||
Assets held for sale [Abstract] | ||||||
Assets held for sale | 91,293 | 91,293 | 0 | |||
Liabilities held for sale [Abstract] | ||||||
Liabilities held for sale | 19,185 | 19,185 | $ 0 | |||
Other divestures and exit related costs | 700 | |||||
Minimum [Member] | ||||||
Liabilities held for sale [Abstract] | ||||||
Expected cash costs associated with anticipated divestitures | 7,000 | |||||
Maximum [Member] | ||||||
Liabilities held for sale [Abstract] | ||||||
Expected cash costs associated with anticipated divestitures | 12,000 | |||||
Inks and Fragrances [Member] | ||||||
Assets held for sale [Abstract] | ||||||
Trade accounts receivable, less allowance for losses of $2,350 | 31,653 | 31,653 | ||||
Inventories | 34,612 | 34,612 | ||||
Prepaid expenses and other current assets | 5,528 | 5,528 | ||||
Property, Plant, and Equipment, net | 14,496 | 14,496 | ||||
Intangible assets | 5,004 | 5,004 | ||||
Assets held for sale | 91,293 | 91,293 | ||||
Liabilities held for sale [Abstract] | ||||||
Trade accounts payable | 12,318 | 12,318 | ||||
Accrued salaries, wages and withholdings from employees | 1,677 | 1,677 | ||||
Other accrued expenses | 5,190 | 5,190 | ||||
Liabilities held for sale | 19,185 | 19,185 | ||||
Trade accounts receivable, allowance for losses | 2,350 | 2,350 | ||||
Inks [Member] | Minimum [Member] | ||||||
Liabilities held for sale [Abstract] | ||||||
Non-cash gain related to reclassification of accumulated foreign currency translation | 6,000 | |||||
Inks [Member] | Maximum [Member] | ||||||
Liabilities held for sale [Abstract] | ||||||
Non-cash gain related to reclassification of accumulated foreign currency translation | 7,000 | |||||
Fragrances [Member] | Minimum [Member] | ||||||
Liabilities held for sale [Abstract] | ||||||
Non-cash charges related to reclassification of accumulated foreign currency translation | 11,000 | |||||
Fragrances [Member] | Maximum [Member] | ||||||
Liabilities held for sale [Abstract] | ||||||
Non-cash charges related to reclassification of accumulated foreign currency translation | 13,000 | |||||
Fruit Preparation [Member] | ||||||
Divestiture Transactions [Abstract] | ||||||
Non-cash impairment charges | 9,800 | |||||
Liabilities held for sale [Abstract] | ||||||
Disposal costs | 800 | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Divestiture Transactions [Abstract] | ||||||
Non-cash impairment charges | $ 600 | $ 10,800 | ||||
Non-cash loss on assets held for sale | $ 11,600 | |||||
Selling, General and Administrative Expenses [Member] | Inks [Member] | ||||||
Divestiture Transactions [Abstract] | ||||||
Non-cash impairment charges | 15,800 | |||||
Selling, General and Administrative Expenses [Member] | Fragrances [Member] | ||||||
Divestiture Transactions [Abstract] | ||||||
Non-cash impairment charges | $ 18,200 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 24, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 |
Subsequent Events [Abstract] | ||||
Non-cash impairment charge | $ 9.8 | |||
Selling and Administrative Expenses [Member] | ||||
Subsequent Events [Abstract] | ||||
Non-cash impairment charge | $ 0.6 | $ 10.8 | ||
Selling and Administrative Expenses [Member] | Forecast [Member] | ||||
Subsequent Events [Abstract] | ||||
Non-cash impairment charge | $ 6.5 | |||
Subsequent Event [Member] | ||||
Subsequent Events [Abstract] | ||||
Dividend payable (in dollars per share) | $ 0.39 | |||
Dividend record date | Jan. 24, 2020 | |||
Dividend payable date | Mar. 2, 2020 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Inks and Fragrances [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Allowance for credit loss | $ 2,350 | |||
Allowance for Trade Receivables [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 5,976 | $ 6,000 | $ 4,836 | |
Additions Charged to Costs and Expenses | 2,469 | 1,004 | 1,276 | |
Additions Recorded During Acquisitions | 0 | 0 | 0 | |
Deductions | 3,882 | [1] | 1,028 | 112 |
Balance at End of Period | $ 4,563 | $ 5,976 | $ 6,000 | |
[1] | Accounts written off, net of recoveries. In 2019, $2,350 thousand was moved to Assets held for sale on the Consolidated Balance Sheet related to the fragrances and inks anticipated divestitures. |