Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | SENSIENT TECHNOLOGIES CORP | |
Entity Central Index Key | 0000310142 | |
Current Fiscal Year End Date | --12-31 | |
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 Common Stock, Shares Outstanding | 42,357,149 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly 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, par value $0.10 per share | |
Trading Symbol | SXT | |
Security Exchange Name | NYSE |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract] | ||||
Revenue | $ 323,090 | $ 339,186 | $ 673,767 | $ 686,699 |
Cost of products sold | 220,876 | 227,418 | 459,660 | 459,706 |
Selling and administrative expenses | 60,089 | 64,400 | 137,421 | 130,205 |
Operating income | 42,125 | 47,368 | 76,686 | 96,788 |
Interest expense | 3,608 | 5,200 | 7,915 | 10,602 |
Earnings before income taxes | 38,517 | 42,168 | 68,771 | 86,186 |
Income taxes | 7,897 | 7,837 | 17,378 | 19,048 |
Net earnings | $ 30,620 | $ 34,331 | $ 51,393 | $ 67,138 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 42,305 | 42,270 | 42,294 | 42,255 |
Diluted (in shares) | 42,322 | 42,300 | 42,315 | 42,287 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.72 | $ 0.81 | $ 1.22 | $ 1.59 |
Diluted (in dollars per share) | 0.72 | 0.81 | 1.21 | 1.59 |
Dividends declared per common share (in dollars per share) | $ 0.39 | $ 0.36 | $ 0.78 | $ 0.72 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Comprehensive income | $ 33,257 | $ 37,059 | $ 9,677 | $ 69,150 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 20,876 | $ 21,153 |
Trade accounts receivable, net | 229,635 | 213,201 |
Inventories | 388,647 | 422,517 |
Prepaid expenses and other current assets | 40,525 | 40,049 |
Assets held for sale | 58,633 | 91,293 |
TOTAL CURRENT ASSETS | 738,316 | 788,213 |
OTHER ASSETS | 82,778 | 80,939 |
DEFERRED TAX ASSETS | 13,766 | 14,976 |
INTANGIBLE ASSETS, NET | 11,097 | 11,802 |
GOODWILL | 404,014 | 407,042 |
PROPERTY, PLANT, AND EQUIPMENT: | ||
Land | 30,469 | 31,431 |
Buildings | 302,256 | 298,733 |
Machinery and equipment | 665,446 | 652,063 |
Construction in progress | 27,591 | 24,613 |
Property, plant, and equipment, gross | 1,025,762 | 1,006,840 |
Less accumulated depreciation | (602,468) | (569,661) |
Property, plant, and equipment, net | 423,294 | 437,179 |
TOTAL ASSETS | 1,673,265 | 1,740,151 |
CURRENT LIABILITIES: | ||
Trade accounts payable | 97,296 | 94,653 |
Accrued salaries, wages, and withholdings from employees | 24,808 | 18,655 |
Other accrued expenses | 42,984 | 41,429 |
Income taxes | 10,302 | 6,841 |
Short-term borrowings | 18,304 | 20,612 |
Liabilities held for sale | 19,543 | 19,185 |
TOTAL CURRENT LIABILITIES | 213,237 | 201,375 |
DEFERRED TAX LIABILITIES | 14,535 | 15,053 |
OTHER LIABILITIES | 21,074 | 17,813 |
ACCRUED EMPLOYEE AND RETIREE BENEFITS | 26,023 | 25,822 |
LONG-TERM DEBT | 537,680 | 598,499 |
SHAREHOLDERS' EQUITY: | ||
Common stock | 5,396 | 5,396 |
Additional paid-in capital | 99,962 | 98,425 |
Earnings reinvested in the business | 1,553,622 | 1,536,100 |
Treasury stock, at cost | (593,540) | (595,324) |
Accumulated other comprehensive loss | (204,724) | (163,008) |
TOTAL SHAREHOLDERS' EQUITY | 860,716 | 881,589 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,673,265 | $ 1,740,151 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net earnings | $ 51,393 | $ 67,138 |
Adjustments to arrive at net cash provided by operating activities: | ||
Depreciation and amortization | 24,522 | 27,741 |
Share-based compensation | 2,662 | (1,155) |
Net loss (gain) on assets | 50 | (75) |
Loss on divestitures | 6,634 | 0 |
Deferred income taxes | 1,075 | (909) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (20,494) | (17,131) |
Inventories | 24,816 | 29,201 |
Prepaid expenses and other assets | (3,975) | (3,395) |
Accounts payable and other accrued expenses | 9,961 | (21,401) |
Accrued salaries, wages and withholdings from employees | 6,483 | (2,598) |
Income taxes | 3,899 | (2,631) |
Other liabilities | 588 | 1,428 |
Net cash provided by operating activities | 107,614 | 76,213 |
Cash flows from investing activities: | ||
Acquisition of property, plant, and equipment | (21,417) | (16,606) |
Proceeds from sale of assets | 6 | 91 |
Proceeds from divesture of businesses | 11,255 | 0 |
Other investing activities | 4,395 | (454) |
Net cash used in investing activities | (5,761) | (16,969) |
Cash flows from financing activities: | ||
Proceeds from additional borrowings | 38,670 | 25,003 |
Debt payments | (98,849) | (55,182) |
Dividends paid | (33,018) | (30,453) |
Other financing activities | (414) | (1,028) |
Net cash used in financing activities | (93,611) | (61,660) |
Effect of exchange rate changes on cash and cash equivalents | (8,519) | 397 |
Net decrease in cash and cash equivalents | (277) | (2,019) |
Cash and cash equivalents at beginning of period | 21,153 | 31,901 |
Cash and cash equivalents at end of period | $ 20,876 | $ 29,882 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Earnings Reinvested in the Business [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-In Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Earnings Reinvested in the Business [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Treasury Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] |
Beginning balance at Dec. 31, 2018 | $ 5,396 | $ 101,663 | $ 1,516,243 | $ (597,800) | $ (165,555) | $ 859,947 | ||||||
Beginning balance (in shares) at Dec. 31, 2018 | 11,731,223 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 0 | 0 | 67,138 | $ 0 | 0 | 67,138 | ||||||
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 2,012 | 2,012 | ||||||
Cash dividends paid | 0 | 0 | (30,453) | 0 | 0 | (30,453) | ||||||
Share-based compensation | 0 | (1,155) | 0 | 0 | 0 | (1,155) | ||||||
Non-vested stock issued upon vesting | 0 | (2,331) | 0 | $ 2,331 | 0 | 0 | ||||||
Non-vested stock issued upon vesting (in shares) | (45,741) | |||||||||||
Benefit plans | 0 | 72 | 0 | $ 948 | 0 | 1,020 | ||||||
Benefit plans (in shares) | (18,597) | |||||||||||
Other | 0 | (212) | 0 | $ (815) | 0 | (1,027) | ||||||
Other (in shares) | 15,991 | |||||||||||
Ending balance at Jun. 30, 2019 | 5,396 | 98,037 | 1,552,928 | $ (595,336) | (163,543) | 897,482 | ||||||
Ending balance (in shares) at Jun. 30, 2019 | 11,682,876 | |||||||||||
Beginning balance at Mar. 31, 2019 | 5,396 | 100,485 | 1,533,832 | $ (595,718) | (166,271) | 877,724 | ||||||
Beginning balance (in shares) at Mar. 31, 2019 | 11,690,379 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 0 | 0 | 34,331 | $ 0 | 0 | 34,331 | ||||||
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 2,728 | 2,728 | ||||||
Cash dividends paid | 0 | 0 | (15,235) | 0 | 0 | (15,235) | ||||||
Share-based compensation | 0 | (1,842) | 0 | 0 | 0 | (1,842) | ||||||
Non-vested stock issued upon vesting | 0 | (547) | 0 | $ 547 | 0 | 0 | ||||||
Non-vested stock issued upon vesting (in shares) | (10,725) | |||||||||||
Other | 0 | (59) | 0 | $ (165) | 0 | (224) | ||||||
Other (in shares) | 3,222 | |||||||||||
Ending balance at Jun. 30, 2019 | 5,396 | 98,037 | 1,552,928 | $ (595,336) | (163,543) | 897,482 | ||||||
Ending balance (in shares) at Jun. 30, 2019 | 11,682,876 | |||||||||||
Beginning balance at Dec. 31, 2019 | 5,396 | 98,425 | 1,536,100 | $ (595,324) | (163,008) | 881,589 | ||||||
Beginning balance (ASU 2016-13 [Member]) at Dec. 31, 2019 | $ 0 | $ 0 | $ (853) | $ 0 | $ 0 | $ (853) | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 11,682,636 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 0 | 0 | 51,393 | $ 0 | 0 | 51,393 | ||||||
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (41,716) | (41,716) | ||||||
Cash dividends paid | 0 | 0 | (33,018) | 0 | 0 | (33,018) | ||||||
Share-based compensation | 0 | 2,662 | 0 | 0 | 0 | 2,662 | ||||||
Non-vested stock issued upon vesting | 0 | (1,352) | 0 | $ 1,352 | 0 | 0 | ||||||
Non-vested stock issued upon vesting (in shares) | (26,515) | |||||||||||
Benefit plans | 0 | 241 | 0 | $ 833 | 0 | 1,074 | ||||||
Benefit plans (in shares) | (16,344) | |||||||||||
Other | 0 | (14) | 0 | $ (401) | 0 | (415) | ||||||
Other (in shares) | 7,850 | |||||||||||
Ending balance at Jun. 30, 2020 | 5,396 | 99,962 | 1,553,622 | $ (593,540) | (204,724) | 860,716 | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 11,647,627 | |||||||||||
Beginning balance at Mar. 31, 2020 | 5,396 | 99,080 | 1,539,520 | $ (593,977) | (207,361) | 842,658 | ||||||
Beginning balance (in shares) at Mar. 31, 2020 | 11,656,206 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 0 | 0 | 30,620 | $ 0 | 0 | 30,620 | ||||||
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 2,637 | 2,637 | ||||||
Cash dividends paid | 0 | 0 | (16,518) | 0 | 0 | (16,518) | ||||||
Share-based compensation | 0 | 1,485 | 0 | 0 | 0 | 1,485 | ||||||
Non-vested stock issued upon vesting | 0 | (628) | 0 | $ 628 | 0 | 0 | ||||||
Non-vested stock issued upon vesting (in shares) | (12,315) | |||||||||||
Other | 0 | 25 | 0 | $ (191) | 0 | (166) | ||||||
Other (in shares) | 3,736 | |||||||||||
Ending balance at Jun. 30, 2020 | $ 5,396 | $ 99,962 | $ 1,553,622 | $ (593,540) | $ (204,724) | $ 860,716 | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 11,647,627 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) [Abstract] | ||||
Cash dividends per share (in dollars per share) | $ 0.39 | $ 0.36 | $ 0.78 | $ 0.72 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies | 1. Accounting Policies In the opinion of Sensient Technologies Corporation (the Company), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of June 30, 2020; the results of operations, comprehensive income, and shareholders’ equity for the three and six months ended June 30, 2020 and 2019; and cash flows for the six months ended June 30, 2020 and 2019 The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred. Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change, except for the Company’s Accounts Receivable accounting policy. This policy was updated in the quarter of as a result of the Company’s adoption of Accounting Standards Update (ASU) No. - Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments, and is described below. 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 expected future credit losses based on historical experience, current conditions, and expected future conditions. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible. Recently Adopted Accounting Pronouncements In June the Financial Accounting Standards Board (FASB) issued ASU No. - Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss impairment model with a methodology that reflects expected credit losses. Under the new standard, entities are 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. The Company adopted this standard in the quarter of The adoption of this standard resulted in an increase of to the allowance for losses on Trade Accounts Receivable and a corresponding decrease in Earnings Reinvested in the Business as of January The adoption of this standard did not have an impact on the Company’s Consolidated Condensed 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 January the FASB issued ASU No. - Intangibles-Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment , which eliminates step 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. The Company adopted this standard in the quarter of and the adoption did not have a material impact on the Company’s consolidated financial statements. In August the FASB issued ASU No. - 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. The Company adopted this standard in the quarter of and the adoption did not have a material impact on the Company’s consolidated financial statements or its related disclosures. Recently Issued Accounting Pronouncements In August the FASB issued ASU No. - Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans Subtopic 715 - 20, which amends Accounting Standards Codification (ASC) - 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 with early adoption permitted. The Company is currently evaluating the potential impact of this standard on its disclosures. In March the FASB issued ASU No. - Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other inter-bank offered rates to alternative rates. The guidance is effective upon issuance and generally can be applied through December The Company is currently evaluating the potential impact of this standard on its consolidated financial statements and its related disclosures. Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change, except as discussed above. |
Divestitures
Divestitures | 6 Months Ended |
Jun. 30, 2020 | |
Divestitures [Abstract] | |
Divestitures | 2. Divestitures In October 2019, the Company announced its intent to divest its inks, fragrances (excluding its essential oils product line), and yogurt fruit preparations product lines. In the fourth quarter of 2019, the Board of Directors approved the sale of the inks product line, which is within the Color segment, and the fragrances product line (excluding its essential oils product line), which is within the Flavors & Fragrances segment. The Company signed memorandums of understanding with potential buyers during the fourth quarter of 2019 for these product lines. In April 2020, the Board of Directors approved the sale of, and the Company signed a memorandum of understanding with a potential buyer for, the yogurt fruit preparations product line, which is within the Flavors & Fragrances segment. In June 2020, the Company entered into a definitive agreement to sell certain assets related to this product line. The divesting and exit of these products lines does not meet the criteria to be presented as a discontinued operation on the Consolidated Condensed Statements of Earnings. On June 30, 2020, the Company completed the sale of its inks product line. The Company estimates it will realize an enterprise value of approximately $14.5 million. At closing, the Company received $10.3 million of net cash, subject to post-closing working capital and net debt adjustments, and estimates it will realize additional value for the sale of certain assets post-closing and the collection of retained accounts receivables. As a result of the completion of the sale, the Company recorded a non-cash net gain of $8.2 million related to the reclassification of accumulated foreign currency translation and related items from Accumulated Other Comprehensive Loss Selling and Administrative Expenses The assets and liabilities related to the inks, fragrances, and yogurt fruit preparations product lines are recorded in Assets held for sale Liabilities held for sale (in thousands) June 30, 2020 December 31, 2019 Assets held for sale: Trade accounts receivable, net $ 23,291 $ 31,653 Inventories 23,171 34,612 Prepaid expenses and other current assets 4,540 5,528 Property, plant, and equipment, net 5,811 14,496 Intangible assets, net 1,820 5,004 Assets held for sale $ 58,633 $ 91,293 Liabilities held for sale: Trade accounts payable $ 14,723 $ 12,318 Accrued salaries, wages and withholdings from employees 1,405 1,677 Other accrued expenses 3,415 5,190 Liabilities held for sale $ 19,543 $ 19,185 During the year ended December 31, 2019, the Company estimated that the fair value of the fragrances product line less costs to sell was lower than its carrying value resulting in a non-cash impairment charge of $18.2 million. As of March 31, 2020, the Company revised its estimate of the fair value of the fragrances product line based on indicative bids resulting in an additional non-cash impairment charge of $0.3 million recorded in Selling and Administrative Expenses Accumulated Other Comprehensive Loss Selling and Administrative Expenses In March 2020, the Company was notified by a potential buyer of the Company’s fragrances product line that environmental sampling conducted at the Company’s Granada, Spain location had identified the presence of contaminants in soil and groundwater in certain areas of the property. The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and the amount of the liability is reasonably estimable. Based upon an environmental investigation and a quantitative risk assessment performed by a consultant hired by the Company during the three months ended June 30, 2020, the Company has recorded $0.8 million related to these obligations in Selling and Administrative Expenses As a result of the definitive agreement entered into in June 2020 to sell certain assets related to the yogurt fruit preparations product line, the Company reviewed its long-lived assets for impairment and determined that the carrying amount of certain asset groups were not fully recoverable. As such, the Company recorded a non-cash impairment charge of $2.4 million in Selling and Administrative Expenses Cost of Products Sold The Company also incurred $1.8 million and $3.7 million of other divestiture and other related costs, primarily severance and legal expenses, during the three and six month periods ended June 30, 2020, respectively, which are recorded in Selling and Administrative Expenses Cost of Products Sold Cost of Products Sold The Company expects total cash costs in 2019 and 2020 associated with the divestitures of all three product lines to be between $6 million and $9 million, primarily related to severance and other exit activities. |
Trade Accounts Receivable
Trade Accounts Receivable | 6 Months Ended |
Jun. 30, 2020 | |
Trade Accounts Receivable [Abstract] | |
Trade Accounts Receivable | 3. Trade Accounts Receivable Trade accounts receivables are recorded at their face amount, less an allowance for expected losses on doubtful accounts. The allowance for doubtful accounts is calculated based on customer-specific analysis and an aging methodology using historical loss information. The Company believes historical loss information is a reasonable basis for expected credit losses as the Company’s historical credit loss experience correlates with its customer delinquency status. This information is also adjusted for any known current economic conditions, including the current and expected impact of COVID- Currently, the COVID- pandemic has not had and is not anticipated to have a material impact on trade accounts receivable. Forecasted economic conditions have not had a significant impact on the current credit loss estimate due to the short-term nature of the Company’s customer receivables, however, the Company will continue to monitor and evaluate the rapidly changing economic conditions. Additionally, as the Company only has portfolio segment, there are not different risks between portfolios. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible. The following table summarizes the changes in the allowance for doubtful accounts during the and six month periods ended June : (In thousands) Three Months Ended June 30, 2020 Allowance for Doubtful Accounts Balance at March $ 7,027 Provision for expected credit losses 116 Accounts written off (291 ) Divestiture (2,174 ) Translation and other activity 212 Balance at June $ 4,890 (In thousands) Six Months Ended June 30, 2020 Allowance for Doubtful Accounts Balance at December $ 6,913 Adoption of ASU - 853 Provision for expected credit losses 356 Accounts written off (627 ) Divestiture (2,174 ) Translation and other activity (431 ) Balance at June $ 4,890 See Note 2, Divestitures |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventories [Abstract] | |
Inventories | 4. Inventories At June 30, 2020, and December 31, 2019, inventories included finished and in-process products totaling $279.9 million and $313.1 million, respectively, and raw materials and supplies of $108.7 million and $109.4 million, respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt [Abstract] | |
Debt | 5. Debt Subsequent to June 30, 2020, the Company reported a technical default to its lenders after it became aware that a liquidation proceeding had been instituted on April 8, 2020, against a non-operating subsidiary of the Company (a shelf company in the Czech Republic) for failure to file tax returns or other required corporate documents. As a result of this proceeding, the Company was in technical default of its Second Amended and Restated Credit Agreement (Credit Agreement) and each of its private placement notes, all of which required the Company to maintain in good standing all subsidiaries, including non-operating subsidiaries regardless of materiality. On July 28, 2020, the Company, Wells Fargo Bank N.A., as Administrative Agent, and the lenders entered into a Limited Waiver and Second Amendment to Second Amended and Restated Credit Agreement whereby (i) the outstanding event of default was waived and (ii) the Credit Agreement was further amended to add a new definition of “Material Subsidiary” to be applied to events of default by subsidiaries in similar circumstances. Also on July 28, 2020, each of the noteholders of the private placement notes waived the event of default. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value [Abstract] | |
Fair Value | 6. Fair Value ASC 820, Fair Value Measurement As of June 30, 2020, the estimated fair value of the fragrances (excluding its essential oils product line) and yogurt fruit preparations product lines was $43 million. The fair value of these product lines was determined based on indicative bids, which are classified as Level 3 inputs in the fair value measurement hierarchy. See Note 2, Divestitures |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Information [Abstract] | |
Segment Information | 7. Segment Information Operating results by segment for the periods presented are as follows: (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated Three months ended June 30 , 2020 : Revenue from external customers $ 178,430 $ 116,879 $ 27,781 $ - $ 323,090 Intersegment revenue 5,181 4,417 92 - 9,690 Total revenue $ 183,611 $ 121,296 $ 27,873 $ - $ 332,780 Operating income (loss) $ 22,752 $ 22,263 $ 4,849 $ (7,739 ) $ 42,125 Interest expense - - - 3,608 3,608 Earnings (loss) before income taxes $ 22,752 $ 22,263 $ 4,849 $ (11,347 ) $ 38,517 Three months ended June 30 , 2019 : Revenue from external customers $ 174,534 $ 135,650 $ 29,002 $ - $ 339,186 Intersegment revenue 5,600 3,262 - - 8,862 Total revenue $ 180,134 $ 138,912 $ 29,002 $ - $ 348,048 Operating income (loss) $ 20,050 $ 27,877 $ 4,201 $ (4,760 ) $ 47,368 Interest expense - - - 5,200 5,200 Earnings (loss) before income taxes $ 20,050 $ 27,877 $ 4,201 $ (9,960 ) $ 42,168 (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated Six months ended June 30 , 2020 : Revenue from external customers $ 359,617 $ 256,072 $ 58,078 $ - $ 673,767 Intersegment revenue 10,492 8,719 244 - 19,455 Total revenue $ 370,109 $ 264,791 $ 58,322 $ - $ 693,222 Operating income (loss) $ 43,623 $ 51,927 $ 9,908 $ (28,772 ) $ 76,686 Interest expense - - - 7,915 7,915 Earnings (loss) before income taxes $ 43,623 $ 51,927 $ 9,908 $ (36,687 ) $ 68,771 Six months ended June 30 , 2019 : Revenue from external customers $ 353,278 $ 275,900 $ 57,521 $ - $ 686,699 Intersegment revenue 10,409 6,891 - - 17,300 Total revenue $ 363,687 $ 282,791 $ 57,521 $ - $ 703,999 Operating income (loss) $ 43,175 $ 58,076 $ 8,419 $ (12,882 ) $ 96,788 Interest expense - - - 10,602 10,602 Earnings (loss) before income taxes $ 43,175 $ 58,076 $ 8,419 $ (23,484 ) $ 86,186 The Company evaluates performance based on operating income before divestiture and other related costs, restructuring and other charges, interest expense, and income taxes (segment operating income). Total revenue and segment operating income by business segment and geographic region include both sales to customers, as reported in the Company’s Consolidated Condensed Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation. The 2020 divestiture and other related costs, which pertain to the divestiture of the Company’s inks product line, and the anticipated divestitures of the Company’s fragrances (excluding its essential oils product line) and yogurt fruit preparations product lines, are reported in Corporate & Other. There were no divestiture and other related costs or restructuring and other costs in the first six months of 2019. 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. The following tables display the Company’s revenue by these major sources. During the first quarter of 2020 the Company updated its product line disclosures as a result of its previous announcement regarding its intent to divest its inks, fragrances (excluding its essential oils product line), and yogurt fruit preparations product lines. Flavors, Extracts & Flavor Ingredients now includes essential oils, which was previously reported in Fragrances. Fragrances now only includes the aroma chemicals and fragrance compounds product lines. Yogurt Fruit Preparations is now disclosed separately; previously it was reported in the Flavors product line. Food & Beverage Colors now includes pharmaceutical colors and natural extraction, which were previously reported in Other Colors. Personal Care includes cosmetic and non-food colors. Inks is now disclosed separately; previously it was reported in Other Colors. The results for 2019 have been restated to reflect these changes. Product Lines (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended June 30 , 2020 : Flavors, Extracts & Flavor Ingredients $ 101,642 $ - $ - $ 101,642 Natural Ingredients 57,227 - - 57,227 Fragrances 21,077 - - 21,077 Yogurt Fruit Preparations 3,665 - - 3,665 Food & Beverage Colors - 86,825 - 86,825 Personal Care - 31,095 - 31,095 Inks - 3,376 - 3,376 Asia Pacific - - 27,873 27,873 Intersegment Revenue (5,181 ) (4,417 ) (92 ) (9,690 ) Total revenue from external customers $ 178,430 $ 116,879 $ 27,781 $ 323,090 Three months ended June 30 , 2019 : Flavors, Extracts & Flavor Ingredients $ 100,415 $ - $ - $ 100,415 Natural Ingredients 52,425 - - 52,425 Fragrances 21,166 - - 21,166 Yogurt Fruit Preparations 6,128 - - 6,128 Food & Beverage Colors - 88,596 - 88,596 Personal Care - 41,398 - 41,398 Inks - 8,918 - 8,918 Asia Pacific - - 29,002 29,002 Intersegment Revenue (5,600 ) (3,262 ) - (8,862 ) Total revenue from external customers $ 174,534 $ 135,650 $ 29,002 $ 339,186 (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Six months ended June 30 , 2020 : Flavors, Extracts & Flavor Ingredients $ 203,095 $ - $ - $ 203,095 Natural Ingredients 114,827 - - 114,827 Fragrances 43,361 - - 43,361 Yogurt Fruit Preparations 8,826 - - 8,826 Food & Beverage Colors - 177,618 - 177,618 Personal Care - 74,838 - 74,838 Inks - 12,335 - 12,335 Asia Pacific - - 58,322 58,322 Intersegment Revenue (10,492 ) (8,719 ) (244 ) (19,455 ) Total revenue from external customers $ 359,617 $ 256,072 $ 58,078 $ 673,767 Six months ended June 30 , 2019 : Flavors, Extracts & Flavor Ingredients $ 203,943 $ - $ - $ 203,943 Natural Ingredients 103,644 - - 103,644 Fragrances 44,433 - - 44,433 Yogurt Fruit Preparations 11,667 - - 11,667 Food & Beverage Colors - 177,444 - 177,444 Personal Care - 86,319 - 86,319 Inks - 19,028 - 19,028 Asia Pacific - - 57,521 57,521 Intersegment Revenue (10,409 ) (6,891 ) - (17,300 ) Total revenue from external customers $ 353,278 $ 275,900 $ 57,521 $ 686,699 Geographic Markets (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended June 30 , 2020 : North America $ 120,827 $ 61,370 $ - $ 182,197 Europe 39,272 25,250 45 64,567 Asia Pacific 8,103 16,195 27,135 51,433 Other 10,228 14,064 601 24,893 Total revenue from external customers $ 178,430 $ 116,879 $ 27,781 $ 323,090 Three months ended June 30 , 2019 : North America $ 113,115 $ 65,301 $ 37 $ 178,453 Europe 41,323 38,682 107 80,112 Asia Pacific 9,430 15,112 28,722 53,264 Other 10,666 16,555 136 27,357 Total revenue from external customers $ 174,534 $ 135,650 $ 29,002 $ 339,186 (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Six months ended June 30 , 2020 : North America $ 237,528 $ 127,635 $ - $ 365,163 Europe 83,149 63,988 67 147,204 Asia Pacific 17,458 32,170 56,257 105,885 Other 21,482 32,279 1,754 55,515 Total revenue from external customers $ 359,617 $ 256,072 $ 58,078 $ 673,767 Six months ended June 30 , 2019 : North America $ 225,862 $ 131,308 $ 62 $ 357,232 Europe 89,324 80,817 148 170,289 Asia Pacific 17,039 31,537 56,988 105,564 Other 21,053 32,238 323 53,614 Total revenue from external customers $ 353,278 $ 275,900 $ 57,521 $ 686,699 |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Plans [Abstract] | |
Retirement Plans | 8. Retirement Plans The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2020 2019 2020 2019 Service cost $ 396 $ 359 $ 796 $ 718 Interest cost 251 319 507 639 Expected return on plan assets (204 ) (229 ) (413 ) (460 ) Recognized actuarial loss (gain) 15 (39 ) 31 (78 ) Total defined benefit expense $ 458 $ 410 $ 921 $ 819 The Company’s non-service cost portion of defined benefit expense is recorded in Interest Expense Selling and Administrative Expenses |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activity | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activity [Abstract] | |
Derivative Instruments and Hedging Activity | 9. Derivative Instruments and Hedging Activity The Company may use forward exchange contracts and foreign currency denominated debt to manage its exposure to foreign exchange risk in order to reduce the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company’s primary hedging activities and their accounting treatment are summarized below. Forward exchange contracts – Certain forward exchange contracts have been designated as cash flow hedges. The Company had and of forward exchange contracts designated as cash flow hedges outstanding as of June 30, 2020 and December 31, 2019 respectively. For the three and six months ended June 30, 2020 losses of and , respectively, were reclassified into net earnings in the Company’s Consolidated Condensed Statement of Earnings that offset the underlying transactions’ impact on earnings in the same period. For the three and six months ended June 30, 2019 the amounts reclassified into net earnings in the Company’s Consolidated Condensed Statement of Earnings that offset the underlying transactions’ impact on earnings in the same period were not material. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges. The results of these transactions were not material to the financial statements. Net investment hedges – The Company has designated certain foreign currency denominated long-term borrowings as partial hedges of the Company’s foreign currency net asset positions. As of June 30, 2020 the total value of the Company’s net investment hedges was . These net investment hedges included Euro and British Pound denominated long-term debt. As of December 31, 2019 the total value of the Company’s net investment hedges was . These net investment hedges included Euro, Swiss Franc, and British Pound denominated long-term debt. Changes in the fair value of this debt attributable to changes in the spot foreign exchange rate are recorded in foreign currency translation in Other Comprehensive Income (OCI). For the three and six months ended June 30, 2020 the impact of foreign exchange rates on these debt instruments increased debt by and decreased debt by , respectively, which has been recorded as foreign currency translation in OCI. For the three and six months ended June 30, 2020 losses of were reclassified into net earnings in the Company’s Consolidated Condensed Statement of Earnings that offset the underlying transactions’ impact on earnings in the same period associated with the termination of the net investment hedge related to the Swiss Franc debt that was terminated in connection with the sale of the inks product line. See Note 2 Divestitures , for additional information. There were amounts reclassified into net earnings for the three and six months ended June 30, 2019. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 10. Income Taxes The effective income tax rates for the months ended June and were and , respectively. For the months ended June and the effective income tax rates were and , respectively. The effective tax rates for the and months ended June and were both impacted by changes in estimates associated with the finalization of prior year foreign tax items, audit settlements, a change in valuation allowances, and the mix of foreign earnings. On March President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The CARES Act allows for the deferral of income and social security tax payments, a -year carryback for net operating losses, changes to interest expense and business loss limitation rules, certain new tax credits, and certain new loans and grants to businesses. The Company has reviewed its income tax assumptions and projections in light of the CARES Act and has determined the CARES Act does not materially impact the Company’s income tax expense or projections. During the months ended June the Company deferred certain income and payroll tax payments of as permitted by the CARES Act |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 11. Accumulated Other Comprehensive Income The following table summarizes the changes in OCI during the three and six month periods ended June 30, 2020 and 2019: (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at December 31, 2019 $ (199 ) $ (672 ) $ (162,137 ) $ (163,008 ) Other comprehensive loss before reclassifications (1,884 ) - (32,802 ) (34,686 ) Amounts reclassified from OCI 1,171 16 (8,217 ) (7,030 ) Balances at June 30, 2020 $ (912 ) $ (656 ) $ (203,156 ) $ (204,724 ) (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at March 31, 2020 $ (1,635 ) $ (664 ) $ (205,062 ) $ (207,361 ) Other comprehensive (loss) income before reclassifications (19 ) - 10,123 10,104 Amounts reclassified from OCI 742 8 (8,217 ) (7,467 ) Balances at June 30, 2020 $ (912 ) $ (656 ) $ (203,156 ) $ (204,724 ) (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at December 31, 2018 $ 147 $ 549 $ (166,251 ) $ (165,555 ) Other comprehensive income before reclassifications 66 - 2,291 2,357 Amounts reclassified from OCI (271 ) (74 ) - (345 ) Balances at June 30, 2019 $ (58 ) $ 475 $ (163,960 ) $ (163,543 ) (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at March 31, 2019 $ 632 $ 512 $ (167,415 ) $ (166,271 ) Other comprehensive (loss) income before reclassifications (531 ) - 3,455 2,924 Amounts reclassified from OCI (159 ) (37 ) - (196 ) Balances at June 30, 2019 $ (58 ) $ 475 $ (163,960 ) $ (163,543 ) (a) Cash Flow Hedges and Pension Items are net of tax. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 12. 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, both of which 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 contended 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. On March 17, 2020, the Court granted Agar leave to file a Second Amended Complaint, which removed the claim that SNI had asserted was subject to mandatory individual arbitration. SNI filed a Demurrer to the Second Amended Complaint, seeking dismissal of the remaining claim, on May 1, 2020. The Demurrer is fully briefed and pending decision. SNI continues to evaluate the developing legal authority on this issue. SNI intends to vigorously defend its interests, absent a reasonable resolution. Kelley v. Sensient Natural Ingredients LLC; Bryan v. Sensient Natural Ingredients LLC On March Monique Kelley filed a Class Action Complaint against SNI in Merced County Superior Court in California. Ms. Kelley worked at SNI for less than a week in through a temporary staffing company. Ms. Kelley has brought suit for purported violations of the California Labor Code and the California Business and Professions Code on her own behalf, and on behalf of all current and former California-based hourly-paid or non-exempt employees of SNI. Ms. Kelley specifically asserts claims for unpaid overtime wages, unpaid minimum wages, unpaid meal and rest break premiums, failure to timely pay final wages upon termination, non-compliant wage statements, and unreimbursed business expenses. SNI filed a Demurrer on May seeking dismissal of the Complaint in its entirety on the grounds that it contains only boilerplate allegations that fail to state facts sufficient to constitute a cause of action, and it is otherwise uncertain, ambiguous, and unintelligible. SNI further seeks dismissal of cause of action based upon the statute of limitations. SNI simultaneously filed a Motion to Strike certain allegations in the Complaint as improperly pled. The Demurrer and Motion to Strike are fully briefed and pending decision. On June the same law firm representing Ms. Kelley also filed notice with the State of California of the intent to pursue a claim on a representative basis pursuant to the California Private Attorneys General Act of (PAGA). This notice was served on behalf of Julie Bryan, who worked at SNI through a temporary staffing agency in early The notice states the intent to pursue relief on behalf of Ms. Bryan as well as other alleged aggrieved employees, identified as all current and former hourly or non-exempt employees of SNI, whether hired directly or through staffing agencies or labor contractors. The notice alleges that SNI failed to properly pay Ms. Bryan and the other alleged aggrieved employees for all hours worked, failed to properly provide or compensate minimum and overtime wages and for meal and rest breaks, failed to issue compliant wage statements, and failed to reimburse for all necessary business-related expenses, in violation of the California Labor Code and California Industrial Welfare Commission Orders. SNI intends to vigorously defend its interests in both of these matters, 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. See Note 2, Divestitures , for information about estimated environmental remediation costs associated with our Granada, Spain location. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events On the Company announced its quarterly dividend of cents per share would be payable on . See Note 5, Debt |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
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 expected future credit losses based on historical experience, current conditions, and expected future conditions. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible. |
Recently Adopted/Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June the Financial Accounting Standards Board (FASB) issued ASU No. - Financial Instruments - Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss impairment model with a methodology that reflects expected credit losses. Under the new standard, entities are 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. The Company adopted this standard in the quarter of The adoption of this standard resulted in an increase of to the allowance for losses on Trade Accounts Receivable and a corresponding decrease in Earnings Reinvested in the Business as of January The adoption of this standard did not have an impact on the Company’s Consolidated Condensed 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 January the FASB issued ASU No. - Intangibles-Goodwill and Other (Topic 350) : Simplifying the Test for Goodwill Impairment , which eliminates step 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. The Company adopted this standard in the quarter of and the adoption did not have a material impact on the Company’s consolidated financial statements. In August the FASB issued ASU No. - 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. The Company adopted this standard in the quarter of and the adoption did not have a material impact on the Company’s consolidated financial statements or its related disclosures. Recently Issued Accounting Pronouncements In August the FASB issued ASU No. - Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans Subtopic 715 - 20, which amends Accounting Standards Codification (ASC) - 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 with early adoption permitted. The Company is currently evaluating the potential impact of this standard on its disclosures. In March the FASB issued ASU No. - Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other inter-bank offered rates to alternative rates. The guidance is effective upon issuance and generally can be applied through December The Company is currently evaluating the potential impact of this standard on its consolidated financial statements and its related disclosures. Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change, except as discussed above. |
Divestitures (Tables)
Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Divestitures [Abstract] | |
Assets and Liabilities Held for Sale | The assets and liabilities related to the inks, fragrances, and yogurt fruit preparations product lines are recorded in Assets held for sale Liabilities held for sale (in thousands) June 30, 2020 December 31, 2019 Assets held for sale: Trade accounts receivable, net $ 23,291 $ 31,653 Inventories 23,171 34,612 Prepaid expenses and other current assets 4,540 5,528 Property, plant, and equipment, net 5,811 14,496 Intangible assets, net 1,820 5,004 Assets held for sale $ 58,633 $ 91,293 Liabilities held for sale: Trade accounts payable $ 14,723 $ 12,318 Accrued salaries, wages and withholdings from employees 1,405 1,677 Other accrued expenses 3,415 5,190 Liabilities held for sale $ 19,543 $ 19,185 |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Trade Accounts Receivable [Abstract] | |
Changes in Allowance for Doubtful Accounts | The following table summarizes the changes in the allowance for doubtful accounts during the and six month periods ended June : (In thousands) Three Months Ended June 30, 2020 Allowance for Doubtful Accounts Balance at March $ 7,027 Provision for expected credit losses 116 Accounts written off (291 ) Divestiture (2,174 ) Translation and other activity 212 Balance at June $ 4,890 (In thousands) Six Months Ended June 30, 2020 Allowance for Doubtful Accounts Balance at December $ 6,913 Adoption of ASU - 853 Provision for expected credit losses 356 Accounts written off (627 ) Divestiture (2,174 ) Translation and other activity (431 ) Balance at June $ 4,890 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Information [Abstract] | |
Segment Information | Operating results by segment for the periods presented are as follows: (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated Three months ended June 30 , 2020 : Revenue from external customers $ 178,430 $ 116,879 $ 27,781 $ - $ 323,090 Intersegment revenue 5,181 4,417 92 - 9,690 Total revenue $ 183,611 $ 121,296 $ 27,873 $ - $ 332,780 Operating income (loss) $ 22,752 $ 22,263 $ 4,849 $ (7,739 ) $ 42,125 Interest expense - - - 3,608 3,608 Earnings (loss) before income taxes $ 22,752 $ 22,263 $ 4,849 $ (11,347 ) $ 38,517 Three months ended June 30 , 2019 : Revenue from external customers $ 174,534 $ 135,650 $ 29,002 $ - $ 339,186 Intersegment revenue 5,600 3,262 - - 8,862 Total revenue $ 180,134 $ 138,912 $ 29,002 $ - $ 348,048 Operating income (loss) $ 20,050 $ 27,877 $ 4,201 $ (4,760 ) $ 47,368 Interest expense - - - 5,200 5,200 Earnings (loss) before income taxes $ 20,050 $ 27,877 $ 4,201 $ (9,960 ) $ 42,168 (In thousands) Flavors & Fragrances Color Asia Pacific Corporate & Other Consolidated Six months ended June 30 , 2020 : Revenue from external customers $ 359,617 $ 256,072 $ 58,078 $ - $ 673,767 Intersegment revenue 10,492 8,719 244 - 19,455 Total revenue $ 370,109 $ 264,791 $ 58,322 $ - $ 693,222 Operating income (loss) $ 43,623 $ 51,927 $ 9,908 $ (28,772 ) $ 76,686 Interest expense - - - 7,915 7,915 Earnings (loss) before income taxes $ 43,623 $ 51,927 $ 9,908 $ (36,687 ) $ 68,771 Six months ended June 30 , 2019 : Revenue from external customers $ 353,278 $ 275,900 $ 57,521 $ - $ 686,699 Intersegment revenue 10,409 6,891 - - 17,300 Total revenue $ 363,687 $ 282,791 $ 57,521 $ - $ 703,999 Operating income (loss) $ 43,175 $ 58,076 $ 8,419 $ (12,882 ) $ 96,788 Interest expense - - - 10,602 10,602 Earnings (loss) before income taxes $ 43,175 $ 58,076 $ 8,419 $ (23,484 ) $ 86,186 |
Product Information | Product Lines (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended June 30 , 2020 : Flavors, Extracts & Flavor Ingredients $ 101,642 $ - $ - $ 101,642 Natural Ingredients 57,227 - - 57,227 Fragrances 21,077 - - 21,077 Yogurt Fruit Preparations 3,665 - - 3,665 Food & Beverage Colors - 86,825 - 86,825 Personal Care - 31,095 - 31,095 Inks - 3,376 - 3,376 Asia Pacific - - 27,873 27,873 Intersegment Revenue (5,181 ) (4,417 ) (92 ) (9,690 ) Total revenue from external customers $ 178,430 $ 116,879 $ 27,781 $ 323,090 Three months ended June 30 , 2019 : Flavors, Extracts & Flavor Ingredients $ 100,415 $ - $ - $ 100,415 Natural Ingredients 52,425 - - 52,425 Fragrances 21,166 - - 21,166 Yogurt Fruit Preparations 6,128 - - 6,128 Food & Beverage Colors - 88,596 - 88,596 Personal Care - 41,398 - 41,398 Inks - 8,918 - 8,918 Asia Pacific - - 29,002 29,002 Intersegment Revenue (5,600 ) (3,262 ) - (8,862 ) Total revenue from external customers $ 174,534 $ 135,650 $ 29,002 $ 339,186 (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Six months ended June 30 , 2020 : Flavors, Extracts & Flavor Ingredients $ 203,095 $ - $ - $ 203,095 Natural Ingredients 114,827 - - 114,827 Fragrances 43,361 - - 43,361 Yogurt Fruit Preparations 8,826 - - 8,826 Food & Beverage Colors - 177,618 - 177,618 Personal Care - 74,838 - 74,838 Inks - 12,335 - 12,335 Asia Pacific - - 58,322 58,322 Intersegment Revenue (10,492 ) (8,719 ) (244 ) (19,455 ) Total revenue from external customers $ 359,617 $ 256,072 $ 58,078 $ 673,767 Six months ended June 30 , 2019 : Flavors, Extracts & Flavor Ingredients $ 203,943 $ - $ - $ 203,943 Natural Ingredients 103,644 - - 103,644 Fragrances 44,433 - - 44,433 Yogurt Fruit Preparations 11,667 - - 11,667 Food & Beverage Colors - 177,444 - 177,444 Personal Care - 86,319 - 86,319 Inks - 19,028 - 19,028 Asia Pacific - - 57,521 57,521 Intersegment Revenue (10,409 ) (6,891 ) - (17,300 ) Total revenue from external customers $ 353,278 $ 275,900 $ 57,521 $ 686,699 |
Geographical Information | Geographic Markets (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Three months ended June 30 , 2020 : North America $ 120,827 $ 61,370 $ - $ 182,197 Europe 39,272 25,250 45 64,567 Asia Pacific 8,103 16,195 27,135 51,433 Other 10,228 14,064 601 24,893 Total revenue from external customers $ 178,430 $ 116,879 $ 27,781 $ 323,090 Three months ended June 30 , 2019 : North America $ 113,115 $ 65,301 $ 37 $ 178,453 Europe 41,323 38,682 107 80,112 Asia Pacific 9,430 15,112 28,722 53,264 Other 10,666 16,555 136 27,357 Total revenue from external customers $ 174,534 $ 135,650 $ 29,002 $ 339,186 (In thousands) Flavors & Fragrances Color Asia Pacific Consolidated Six months ended June 30 , 2020 : North America $ 237,528 $ 127,635 $ - $ 365,163 Europe 83,149 63,988 67 147,204 Asia Pacific 17,458 32,170 56,257 105,885 Other 21,482 32,279 1,754 55,515 Total revenue from external customers $ 359,617 $ 256,072 $ 58,078 $ 673,767 Six months ended June 30 , 2019 : North America $ 225,862 $ 131,308 $ 62 $ 357,232 Europe 89,324 80,817 148 170,289 Asia Pacific 17,039 31,537 56,988 105,564 Other 21,053 32,238 323 53,614 Total revenue from external customers $ 353,278 $ 275,900 $ 57,521 $ 686,699 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Plans [Abstract] | |
Annual Benefit Cost | The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2020 2019 2020 2019 Service cost $ 396 $ 359 $ 796 $ 718 Interest cost 251 319 507 639 Expected return on plan assets (204 ) (229 ) (413 ) (460 ) Recognized actuarial loss (gain) 15 (39 ) 31 (78 ) Total defined benefit expense $ 458 $ 410 $ 921 $ 819 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in OCI | The following table summarizes the changes in OCI during the three and six month periods ended June 30, 2020 and 2019: (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at December 31, 2019 $ (199 ) $ (672 ) $ (162,137 ) $ (163,008 ) Other comprehensive loss before reclassifications (1,884 ) - (32,802 ) (34,686 ) Amounts reclassified from OCI 1,171 16 (8,217 ) (7,030 ) Balances at June 30, 2020 $ (912 ) $ (656 ) $ (203,156 ) $ (204,724 ) (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at March 31, 2020 $ (1,635 ) $ (664 ) $ (205,062 ) $ (207,361 ) Other comprehensive (loss) income before reclassifications (19 ) - 10,123 10,104 Amounts reclassified from OCI 742 8 (8,217 ) (7,467 ) Balances at June 30, 2020 $ (912 ) $ (656 ) $ (203,156 ) $ (204,724 ) (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at December 31, 2018 $ 147 $ 549 $ (166,251 ) $ (165,555 ) Other comprehensive income before reclassifications 66 - 2,291 2,357 Amounts reclassified from OCI (271 ) (74 ) - (345 ) Balances at June 30, 2019 $ (58 ) $ 475 $ (163,960 ) $ (163,543 ) (In thousands) Cash Flow Hedges (a) Pension Items (a) Foreign Currency Items Total Balances at March 31, 2019 $ 632 $ 512 $ (167,415 ) $ (166,271 ) Other comprehensive (loss) income before reclassifications (531 ) - 3,455 2,924 Amounts reclassified from OCI (159 ) (37 ) - (196 ) Balances at June 30, 2019 $ (58 ) $ 475 $ (163,960 ) $ (163,543 ) (a) Cash Flow Hedges and Pension Items are net of tax. |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||
Allowance for losses on trade accounts receivable | $ 4,890 | $ 7,027 | $ 6,913 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASU 2016-13 [Member] | |||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||
Allowance for losses on trade accounts receivable | $ 900 |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Divestiture of Product Line [Abstract] | |||||
Proceed from sale of business | $ 11,255 | $ 0 | |||
Assets held for sale [Abstract] | |||||
Assets held for sale | $ 58,633 | 58,633 | $ 91,293 | ||
Liabilities held for sale [Abstract] | |||||
Liabilities held for sale | 19,543 | 19,543 | 19,185 | ||
Minimum [Member] | |||||
Divestiture Transactions [Abstract] | |||||
Expected cash costs associated with divestitures | 6,000 | ||||
Maximum [Member] | |||||
Divestiture Transactions [Abstract] | |||||
Expected cash costs associated with divestitures | 9,000 | ||||
Inks, Fragrances and Yogurt Fruit Preparations [Member] | |||||
Assets held for sale [Abstract] | |||||
Trade accounts receivable, net | 23,291 | 23,291 | 31,653 | ||
Inventories | 23,171 | 23,171 | 34,612 | ||
Prepaid expenses and other current assets | 4,540 | 4,540 | 5,528 | ||
Property, plant, and equipment, net | 5,811 | 5,811 | 14,496 | ||
Intangible assets, net | 1,820 | 1,820 | 5,004 | ||
Assets held for sale | 58,633 | 58,633 | 91,293 | ||
Liabilities held for sale [Abstract] | |||||
Trade accounts payable | 14,723 | 14,723 | 12,318 | ||
Accrued salaries, wages and withholdings from employees | 1,405 | 1,405 | 1,677 | ||
Other accrued expenses | 3,415 | 3,415 | 5,190 | ||
Liabilities held for sale | 19,543 | 19,543 | 19,185 | ||
Inks [Member] | |||||
Divestiture of Product Line [Abstract] | |||||
Estimated realizable enterprise value on sale of product line | 14,500 | ||||
Proceed from sale of business | 10,300 | ||||
Non-cash net gain related to reclassification of accumulated foreign currency translation | 8,200 | ||||
Fragrances [Member] | Minimum [Member] | |||||
Divestiture Transactions [Abstract] | |||||
Non-cash charges related to reclassification of accumulated foreign currency translation | 10,000 | ||||
Fragrances [Member] | Maximum [Member] | |||||
Divestiture Transactions [Abstract] | |||||
Non-cash charges related to reclassification of accumulated foreign currency translation | 12,000 | ||||
Selling, General and Administrative Expenses [Member] | |||||
Divestiture Transactions [Abstract] | |||||
Expenses recorded related to environmental obligations | 800 | ||||
Other divestures and other related costs | 1,800 | 3,700 | |||
Selling, General and Administrative Expenses [Member] | Inks [Member] | |||||
Divestiture of Product Line [Abstract] | |||||
Non-cash impairment charges | 0 | 9,400 | |||
Selling, General and Administrative Expenses [Member] | Fragrances [Member] | |||||
Divestiture of Product Line [Abstract] | |||||
Non-cash impairment charges | $ 300 | $ 18,200 | |||
Selling, General and Administrative Expenses [Member] | Yogurt Fruit Preparations [Member] | |||||
Divestiture of Product Line [Abstract] | |||||
Non-cash impairment charges | 2,400 | ||||
Cost of Products Sold [Member] | |||||
Divestiture of Product Line [Abstract] | |||||
Non-cash impairment charges | 0 | $ 200 | |||
Cost of Products Sold [Member] | Yogurt Fruit Preparations [Member] | |||||
Divestiture of Product Line [Abstract] | |||||
Non-cash impairment charges | $ 1,700 |
Trade Accounts Receivable (Deta
Trade Accounts Receivable (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($)Segment | |
Trade Accounts Receivable [Abstract] | ||
Number of portfolio segments | Segment | 1 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 7,027 | $ 6,913 |
Provision for expected credit losses | 116 | 356 |
Accounts written off | (291) | (627) |
Divestiture | (2,174) | (2,174) |
Translation and other activity | 212 | (431) |
Ending balance | $ 4,890 | 4,890 |
ASU 2016-13 [Member] | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Adoption of ASU 2016-13 | $ 853 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventories [Abstract] | ||
Inventories, including finished and in-process products | $ 279.9 | $ 313.1 |
Raw materials and supplies | $ 108.7 | $ 109.4 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Level 2 [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Forward exchange contract, liability | $ 1.5 | $ 0.1 |
Level 2 [Member] | Carrying Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | 537.7 | |
Level 2 [Member] | Fair Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | 558.9 | |
Level 3 [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Fair value of disposal groups | $ 43 |
Segment Information, Operating
Segment Information, Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue [Abstract] | ||||
Revenue | $ 323,090 | $ 339,186 | $ 673,767 | $ 686,699 |
Operating income (loss) | 42,125 | 47,368 | 76,686 | 96,788 |
Interest expense | 3,608 | 5,200 | 7,915 | 10,602 |
Earnings before income taxes | 38,517 | 42,168 | 68,771 | 86,186 |
Flavors & Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 178,430 | 174,534 | 359,617 | 353,278 |
Operating income (loss) | 22,752 | 20,050 | 43,623 | 43,175 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings before income taxes | 22,752 | 20,050 | 43,623 | 43,175 |
Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 116,879 | 135,650 | 256,072 | 275,900 |
Operating income (loss) | 22,263 | 27,877 | 51,927 | 58,076 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings before income taxes | 22,263 | 27,877 | 51,927 | 58,076 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 27,781 | 29,002 | 58,078 | 57,521 |
Operating income (loss) | 4,849 | 4,201 | 9,908 | 8,419 |
Interest expense | 0 | 0 | 0 | 0 |
Earnings before income taxes | 4,849 | 4,201 | 9,908 | 8,419 |
Reportable Segments [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 332,780 | 348,048 | 693,222 | 703,999 |
Reportable Segments [Member] | Flavors & Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 183,611 | 180,134 | 370,109 | 363,687 |
Reportable Segments [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 121,296 | 138,912 | 264,791 | 282,791 |
Reportable Segments [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 27,873 | 29,002 | 58,322 | 57,521 |
Intersegment Revenue [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 9,690 | 8,862 | 19,455 | 17,300 |
Intersegment Revenue [Member] | Flavors & Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 5,181 | 5,600 | 10,492 | 10,409 |
Intersegment Revenue [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 4,417 | 3,262 | 8,719 | 6,891 |
Intersegment Revenue [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 92 | 0 | 244 | 0 |
Corporate & Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating income (loss) | (7,739) | (4,760) | (28,772) | (12,882) |
Interest expense | 3,608 | 5,200 | 7,915 | 10,602 |
Earnings before income taxes | $ (11,347) | $ (9,960) | $ (36,687) | $ (23,484) |
Segment Information, Revenue fr
Segment Information, Revenue from External Customers by Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue [Abstract] | ||||
Revenue | $ 323,090 | $ 339,186 | $ 673,767 | $ 686,699 |
Flavors, Extracts & Flavor Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 101,642 | 100,415 | 203,095 | 203,943 |
Natural Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 57,227 | 52,425 | 114,827 | 103,644 |
Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 21,077 | 21,166 | 43,361 | 44,433 |
Yogurt Fruit Preparations [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 3,665 | 6,128 | 8,826 | 11,667 |
Food & Beverage Colors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 86,825 | 88,596 | 177,618 | 177,444 |
Personal Care [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 31,095 | 41,398 | 74,838 | 86,319 |
Inks [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 3,376 | 8,918 | 12,335 | 19,028 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 27,873 | 29,002 | 58,322 | 57,521 |
Flavors & Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 178,430 | 174,534 | 359,617 | 353,278 |
Flavors & Fragrances [Member] | Flavors, Extracts & Flavor Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 101,642 | 100,415 | 203,095 | 203,943 |
Flavors & Fragrances [Member] | Natural Ingredients [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 57,227 | 52,425 | 114,827 | 103,644 |
Flavors & Fragrances [Member] | Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 21,077 | 21,166 | 43,361 | 44,433 |
Flavors & Fragrances [Member] | Yogurt Fruit Preparations [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 3,665 | 6,128 | 8,826 | 11,667 |
Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 116,879 | 135,650 | 256,072 | 275,900 |
Color [Member] | Food & Beverage Colors [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 86,825 | 88,596 | 177,618 | 177,444 |
Color [Member] | Personal Care [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 31,095 | 41,398 | 74,838 | 86,319 |
Color [Member] | Inks [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 3,376 | 8,918 | 12,335 | 19,028 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 27,781 | 29,002 | 58,078 | 57,521 |
Asia Pacific [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 27,873 | 29,002 | 58,322 | 57,521 |
Intersegment Revenue [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 9,690 | 8,862 | 19,455 | 17,300 |
Intersegment Revenue [Member] | Flavors & Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 5,181 | 5,600 | 10,492 | 10,409 |
Intersegment Revenue [Member] | Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 4,417 | 3,262 | 8,719 | 6,891 |
Intersegment Revenue [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | $ 92 | $ 0 | $ 244 | $ 0 |
Segment Information, Revenue _2
Segment Information, Revenue from External Customers by Geographic Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue [Abstract] | ||||
Revenue | $ 323,090 | $ 339,186 | $ 673,767 | $ 686,699 |
North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 182,197 | 178,453 | 365,163 | 357,232 |
Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 64,567 | 80,112 | 147,204 | 170,289 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 51,433 | 53,264 | 105,885 | 105,564 |
Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 24,893 | 27,357 | 55,515 | 53,614 |
Flavors & Fragrances [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 178,430 | 174,534 | 359,617 | 353,278 |
Color [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 116,879 | 135,650 | 256,072 | 275,900 |
Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 27,781 | 29,002 | 58,078 | 57,521 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 120,827 | 113,115 | 237,528 | 225,862 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 39,272 | 41,323 | 83,149 | 89,324 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 8,103 | 9,430 | 17,458 | 17,039 |
Reportable Geographical Components [Member] | Flavors & Fragrances [Member] | Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 10,228 | 10,666 | 21,482 | 21,053 |
Reportable Geographical Components [Member] | Color [Member] | North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 61,370 | 65,301 | 127,635 | 131,308 |
Reportable Geographical Components [Member] | Color [Member] | Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 25,250 | 38,682 | 63,988 | 80,817 |
Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 16,195 | 15,112 | 32,170 | 31,537 |
Reportable Geographical Components [Member] | Color [Member] | Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 14,064 | 16,555 | 32,279 | 32,238 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 0 | 37 | 0 | 62 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 45 | 107 | 67 | 148 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member] | ||||
Revenue [Abstract] | ||||
Revenue | 27,135 | 28,722 | 56,257 | 56,988 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member] | ||||
Revenue [Abstract] | ||||
Revenue | $ 601 | $ 136 | $ 1,754 | $ 323 |
Retirement Plans (Details)
Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 396 | $ 359 | $ 796 | $ 718 |
Interest cost | 251 | 319 | 507 | 639 |
Expected return on plan assets | (204) | (229) | (413) | (460) |
Recognized actuarial loss (gain) | 15 | (39) | 31 | (78) |
Total defined benefit expense | $ 458 | $ 410 | $ 921 | $ 819 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Maximum [Member] | |||||
Derivative instruments and hedging activity for the period [Abstract] | |||||
Number of months for contracts to mature | 18 months | ||||
Forward Exchange Contracts [Member] | |||||
Derivative instruments and hedging activity for the period [Abstract] | |||||
Amount of gain (loss) reclassified into net earnings | $ (0.7) | $ (1.2) | |||
Forward Exchange Contracts [Member] | Cash Flow Hedges [Member] | |||||
Derivative instruments and hedging activity for the period [Abstract] | |||||
Derivative, fair value | 36.2 | 36.2 | $ 59.9 | ||
Foreign Currency Denominated Debt, Net Investment Hedging [Member] | |||||
Derivative instruments and hedging activity for the period [Abstract] | |||||
Amount of gain (loss) reclassified into net earnings | (11.1) | $ 0 | (11.1) | $ 0 | |
Carrying value of foreign denominated debt | 303.6 | 303.6 | $ 363.4 | ||
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ 5.1 | $ (3.3) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Taxes [Abstract] | ||||
Effective income tax rates | 20.50% | 18.60% | 25.30% | 22.10% |
Deferred income and payroll tax payment | $ 6.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 842,658 | $ 877,724 | $ 881,589 | $ 859,947 | |
Other comprehensive (loss) income before reclassifications | 10,104 | 2,924 | (34,686) | 2,357 | |
Amounts reclassified from OCI | (7,467) | (196) | (7,030) | (345) | |
Ending balance | 860,716 | 897,482 | 860,716 | 897,482 | |
Accumulated Other Comprehensive (Loss) Income [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (207,361) | (166,271) | (163,008) | (165,555) | |
Ending balance | (204,724) | (163,543) | (204,724) | (163,543) | |
Cash Flow Hedges [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | (1,635) | 632 | (199) | 147 |
Other comprehensive (loss) income before reclassifications | [1] | (19) | (531) | (1,884) | 66 |
Amounts reclassified from OCI | [1] | 742 | (159) | 1,171 | (271) |
Ending balance | [1] | (912) | (58) | (912) | (58) |
Pension Items [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | (664) | 512 | (672) | 549 |
Other comprehensive (loss) income before reclassifications | [1] | 0 | 0 | 0 | 0 |
Amounts reclassified from OCI | [1] | 8 | (37) | 16 | (74) |
Ending balance | [1] | (656) | 475 | (656) | 475 |
Foreign Currency Items [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (205,062) | (167,415) | (162,137) | (166,251) | |
Other comprehensive (loss) income before reclassifications | 10,123 | 3,455 | (32,802) | 2,291 | |
Amounts reclassified from OCI | (8,217) | 0 | (8,217) | 0 | |
Ending balance | $ (203,156) | $ (163,960) | $ (203,156) | $ (163,960) | |
[1] | Cash Flow Hedges and Pension Items are net of tax. |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Jul. 16, 2020$ / shares |
Subsequent Events [Abstract] | |
Dividend declared date | Jul. 16, 2020 |
Dividend payable (in dollars per share) | $ 0.39 |
Dividend payable date | Sep. 1, 2020 |