Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 001-07626 | |
Entity Registrant Name | Sensient Technologies Corp | |
Entity Central Index Key | 0000310142 | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-0561070 | |
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 $0.10 per share | |
Trading Symbol | SXT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,244,371 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CONSOLIDATED STATEMENTS OF EARNINGS [Abstract] | ||
Revenue | $ 369,006 | $ 355,521 |
Cost of products sold | 244,343 | 230,675 |
Selling and administrative expenses | 73,825 | 72,057 |
Operating income | 50,838 | 52,789 |
Interest expense | 6,002 | 2,993 |
Earnings before income taxes | 44,836 | 49,796 |
Income taxes | 11,185 | 12,725 |
Net earnings | $ 33,651 | $ 37,071 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 41,970 | 41,865 |
Diluted (in shares) | 42,255 | 42,148 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.8 | $ 0.89 |
Diluted (in dollars per share) | 0.8 | 0.88 |
Dividends declared per common share (in dollars per share) | $ 0.41 | $ 0.41 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Comprehensive income | $ 49,952 | $ 36,834 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 24,017 | $ 20,921 |
Trade accounts receivable | 312,530 | 302,109 |
Inventories | 573,706 | 564,110 |
Prepaid expenses and other current assets | 49,639 | 47,640 |
Total current assets | 959,892 | 934,780 |
Other assets | 96,077 | 96,609 |
Deferred tax assets | 35,108 | 32,717 |
Intangible assets, net | 18,569 | 18,600 |
Goodwill | 419,302 | 415,715 |
Property, Plant, and Equipment: | ||
Land | 31,734 | 31,444 |
Buildings | 325,796 | 322,268 |
Machinery and equipment | 738,524 | 722,294 |
Construction in progress | 73,502 | 65,809 |
Property, plant, and equipment, gross | 1,169,556 | 1,141,815 |
Less accumulated depreciation | (675,777) | (658,622) |
Property, plant, and equipment, net | 493,779 | 483,193 |
Total assets | 2,022,727 | 1,981,614 |
Current Liabilities: | ||
Trade accounts payable | 121,290 | 142,365 |
Accrued salaries, wages, and withholdings from employees | 22,788 | 43,738 |
Other accrued expenses | 48,789 | 51,231 |
Income taxes | 16,935 | 14,446 |
Short-term borrowings | 24,849 | 20,373 |
Total current liabilities | 234,651 | 272,153 |
Deferred tax liabilities | 16,200 | 15,977 |
Other liabilities | 36,652 | 37,191 |
Accrued employee and retiree benefits | 27,224 | 26,364 |
Long-term debt | 679,779 | 630,331 |
Shareholders' Equity: | ||
Common stock | 5,396 | 5,396 |
Additional paid-in capital | 112,589 | 124,043 |
Earnings reinvested in the business | 1,719,096 | 1,702,700 |
Treasury stock, at cost | (624,473) | (631,853) |
Accumulated other comprehensive loss | (184,387) | (200,688) |
Total shareholders' equity | 1,028,221 | 999,598 |
Total liabilities and shareholders' equity | $ 2,022,727 | $ 1,981,614 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net earnings | $ 33,651 | $ 37,071 |
Adjustments to arrive at net cash provided by operating activities: | ||
Depreciation and amortization | 14,150 | 13,056 |
Share-based compensation expense | 2,267 | 4,163 |
Net loss (gain) on assets | 8 | (48) |
Deferred income taxes | (2,351) | 4,211 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (7,142) | (20,841) |
Inventories | (4,374) | (11,901) |
Prepaid expenses and other assets | (2,062) | (11,111) |
Accounts payable and other accrued expenses | (19,251) | (10,267) |
Accrued salaries, wages, and withholdings from employees | (21,187) | (12,425) |
Income taxes | 2,548 | 7,063 |
Other liabilities | 698 | 137 |
Net cash used in operating activities | (3,045) | (892) |
Cash Flows from Investing Activities: | ||
Acquisition of property, plant, and equipment | (22,278) | (12,736) |
Proceeds from sale of assets | 1 | 89 |
Other investing activities | (602) | 434 |
Net cash used in investing activities | (22,879) | (12,213) |
Cash flows from financing activities: | ||
Proceeds from additional borrowings | 50,827 | 40,099 |
Debt payments | (1,351) | (6,275) |
Dividends paid | (17,255) | (17,211) |
Other financing activities | (7,669) | (1,679) |
Net cash provided by financing activities | 24,552 | 14,934 |
Effect of exchange rate changes on cash and cash equivalents | 4,468 | 4,606 |
Net increase in cash and cash equivalents | 3,096 | 6,435 |
Cash and cash equivalents at beginning of period | 20,921 | 25,740 |
Cash and cash equivalents at end of period | $ 24,017 | $ 32,175 |
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 Income (Loss) [Member] | Total |
Beginning balance at Dec. 31, 2021 | $ 5,396 | $ 111,352 | $ 1,630,713 | $ (634,408) | $ (174,628) | $ 938,425 |
Beginning balance (in shares) at Dec. 31, 2021 | 12,107,549 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 37,071 | $ 0 | 0 | 37,071 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (237) | (237) |
Cash dividends paid | 0 | 0 | (17,211) | 0 | 0 | (17,211) |
Share-based compensation | 0 | 4,163 | 0 | 0 | 0 | 4,163 |
Non-vested stock issued upon vesting | 0 | (2,478) | 0 | $ 2,478 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (47,298) | |||||
Benefit plans | 0 | 560 | 0 | $ 618 | 0 | 1,178 |
Benefit plans (in shares) | (11,786) | |||||
Other | 0 | (624) | 15 | $ (1,070) | 0 | (1,679) |
Other (in shares) | 20,403 | |||||
Ending balance at Mar. 31, 2022 | 5,396 | 112,973 | 1,650,588 | $ (632,382) | (174,865) | 961,710 |
Ending balance (in shares) at Mar. 31, 2022 | 12,068,868 | |||||
Beginning balance at Dec. 31, 2022 | 5,396 | 124,043 | 1,702,700 | $ (631,853) | (200,688) | 999,598 |
Beginning balance (in shares) at Dec. 31, 2022 | 12,058,773 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 0 | 0 | 33,651 | $ 0 | 0 | 33,651 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 16,301 | 16,301 |
Cash dividends paid | 0 | 0 | (17,255) | 0 | 0 | (17,255) |
Share-based compensation | 0 | 2,267 | 0 | 0 | 0 | 2,267 |
Non-vested stock issued upon vesting | 0 | (11,956) | 0 | $ 11,956 | 0 | 0 |
Non-vested stock issued upon vesting (in shares) | (228,181) | |||||
Benefit plans | 0 | 375 | 0 | $ 952 | 0 | 1,327 |
Benefit plans (in shares) | (18,172) | |||||
Other | 0 | (2,140) | 0 | $ (5,528) | 0 | (7,668) |
Other (in shares) | 105,524 | |||||
Ending balance at Mar. 31, 2023 | $ 5,396 | $ 112,589 | $ 1,719,096 | $ (624,473) | $ (184,387) | $ 1,028,221 |
Ending balance (in shares) at Mar. 31, 2023 | 11,917,944 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | ||
Cash dividends per share (in dollars per share) | $ 0.41 | $ 0.41 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023, and the results of operations, comprehensive income, cash flows, and shareholders’ equity for the three months ended March 31, 2023 and 2022. 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 31, 2022, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2023 | |
Acquisition [Abstract] | |
Acquisition | 2. Acquisition On October 3, 2022, the Company acquired Endemix Doğal Maddeler A.Ş. Teknoloji Yatırımları ve Danışmanlık Sanayi ve Ticaret A.Ş. |
Trade Accounts Receivable
Trade Accounts Receivable | 3 Months Ended |
Mar. 31, 2023 | |
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. 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. The following table summarizes the changes in the allowance for doubtful accounts during the three month periods ended March 31, 2023 and 2022: (In thousands) Three Months Ended March 31, 2023 Allowance for Doubtful Accounts Balance at December 31, 2022 $ 4,436 Provision for expected credit losses 120 Accounts written off (614 ) Translation and other activity 103 Balance at March 31, 2023 $ 4,045 (In thousands) Three Months Ended March 31, 2022 Allowance for Doubtful Accounts Balance at December 31, 2021 $ 4,877 Provision for expected credit losses 285 Accounts written off (367 ) Translation and other activity 117 Balance at March 31, 2022 $ 4,912 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
Inventories | 4. Inventories At March 31, 2023, and December 31, 2022, inventories included finished and in-process products totaling $372.6 million and $385.2 million, respectively, and raw materials and supplies of $201.1 million and $178.9 million, respectively. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value [Abstract] | |
Fair Value | 5. Fair Value Accounting Standards Codification 820, Fair Value Measurement |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Information [Abstract] | |
Segment Information | 6. Segment Information The Company evaluates performance based on operating income before share-based compensation, 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 Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation. The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. The Company’s three reportable segments are the Flavors & Extracts 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 & Extracts segment produces flavor, extracts, and essential oils products that impart a desired taste, texture, aroma, or other characteristics to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, such as colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color, flavor, and essential oils products in the Asia Pacific countries. The Company’s corporate expenses and share-based compensation are included in the “Corporate & Other” category. Operating results by segment for the periods presented are as follows: (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated Three months ended March 31 2023 Revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ - $ 369,006 Intersegment revenue 6,880 4,212 - - 11,092 Total revenue $ 178,852 $ 161,161 $ 40,085 $ - $ 380,098 Operating income (loss) $ 22,180 $ 31,885 $ 9,241 $ (12,468 ) $ 50,838 Interest expense - - - 6,002 6,002 Earnings (loss) before income taxes $ 22,180 $ 31,885 $ 9,241 $ (18,470 ) $ 44,836 Three months ended March 31 2022 Revenue from external customers $ 175,202 $ 143,928 $ 36,391 $ - $ 355,521 Intersegment revenue 7,525 4,510 74 - 12,109 Total revenue $ 182,727 $ 148,438 $ 36,465 $ - $ 367,630 Operating income (loss) $ 27,579 $ 30,657 $ 8,204 $ (13,651 ) $ 52,789 Interest expense - - - 2,993 2,993 Earnings (loss) before income taxes $ 27,579 $ 30,657 $ 8,204 $ (16,644 ) $ 49,796 Product Lines (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended March 31 2023 Flavors, Extracts & Flavor Ingredients $ 124,825 $ - $ - $ 124,825 Natural Ingredients 54,027 - - 54,027 Food & Pharmaceutical Colors - 118,747 - 118,747 Personal Care - 42,414 - 42,414 Asia Pacific - - 40,085 40,085 Intersegment Revenue (6,880 ) (4,212 ) - (11,092 ) Total revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ 369,006 Three months ended March 31 2022 Flavors, Extracts & Flavor Ingredients $ 126,518 $ - $ - $ 126,518 Natural Ingredients 56,209 - - 56,209 Food & Pharmaceutical Colors - 103,109 - 103,109 Personal Care - 44,846 - 44,846 Inks - 483 - 483 Asia Pacific - - 36,465 36,465 Intersegment Revenue (7,525 ) (4,510 ) (74 ) (12,109 ) Total revenue from external customers $ 175,202 $ 143,928 $ 36,391 $ 355,521 Geographic Markets (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended March 31 2023 North America $ 131,968 $ 78,377 $ 62 $ 210,407 Europe 28,927 43,252 103 72,282 Asia Pacific 5,201 18,149 39,195 62,545 Other 5,876 17,171 725 23,772 Total revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ 369,006 Three months ended March 31 2022 North America $ 126,702 $ 69,928 $ 58 $ 196,688 Europe 32,605 41,978 81 74,664 Asia Pacific 9,737 16,016 33,982 59,735 Other 6,158 16,006 2,270 24,434 Total revenue from external customers $ 175,202 $ 143,928 $ 36,391 $ 355,521 |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Plans [Abstract] | |
Retirement Plans | 7. 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 March 31, (In thousands) 2023 2022 Service cost $ 368 $ 408 Interest cost 409 244 Expected return on plan assets (239 ) (205 ) Recognized actuarial (gain) loss (139 ) 12 Total defined benefit expense $ 399 $ 459 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 | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activity [Abstract] | |
Derivative Instruments and Hedging Activity | 8. 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 31, 2023 and 2022 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 March 31, 2023 and December 31, 2022 March 31, 2023 and 2022, decreased debt by |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income Taxes The effective income tax ra tes for the three months ended March 31, 2023 and 2022, were 24.9% and 25.6%, respectively. The effective tax rates for the three months ended March 31, 2023 and 2022 were both impacted by changes in estimates associated with the finalization of prior year foreign tax items and the mix of foreign earnings. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 10. Accumulated Other Comprehensive Income The following table summarizes the changes in OCI during the three month periods ended March 31, 2023 and 2022: (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at December 31, 2022 $ (599 ) $ (1,792 ) $ (198,297 ) $ (200,688 ) Other comprehensive income before reclassifications 1,700 - 14,841 16,541 Amounts reclassified from OCI (118 ) (122 ) - (240 ) Balances at March 31, 2023 $ 983 $ (1,914 ) $ (183,456 ) $ (184,387 ) (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at December 31, 2021 $ 206 $ (353 ) $ (174,481 ) $ (174,628 ) Other comprehensive income (loss) before reclassifications 242 - (145 ) 97 Amounts reclassified from OCI (342 ) 8 - (334 ) Balances at March 31, 2022 $ 106 $ (345 ) $ (174,626 ) $ (174,865 ) (1) Cash Flow Hedges and Pension Items are net of tax. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies 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 Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Event [Abstract] | |
Subsequent Event | 12. Subsequent Event On April 27, 2023, the Company announced its quarterly dividend of $0.41 per share would be payable on June 1, 2023. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | 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. |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Trade Accounts Receivable [Abstract] | |
Changes in Allowance for Doubtful Accounts | The following table summarizes the changes in the allowance for doubtful accounts during the three month periods ended March 31, 2023 and 2022: (In thousands) Three Months Ended March 31, 2023 Allowance for Doubtful Accounts Balance at December 31, 2022 $ 4,436 Provision for expected credit losses 120 Accounts written off (614 ) Translation and other activity 103 Balance at March 31, 2023 $ 4,045 (In thousands) Three Months Ended March 31, 2022 Allowance for Doubtful Accounts Balance at December 31, 2021 $ 4,877 Provision for expected credit losses 285 Accounts written off (367 ) Translation and other activity 117 Balance at March 31, 2022 $ 4,912 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Information [Abstract] | |
Operating Results by Segment | Operating results by segment for the periods presented are as follows: (In thousands) Flavors & Extracts Color Asia Pacific Corporate & Other Consolidated Three months ended March 31 2023 Revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ - $ 369,006 Intersegment revenue 6,880 4,212 - - 11,092 Total revenue $ 178,852 $ 161,161 $ 40,085 $ - $ 380,098 Operating income (loss) $ 22,180 $ 31,885 $ 9,241 $ (12,468 ) $ 50,838 Interest expense - - - 6,002 6,002 Earnings (loss) before income taxes $ 22,180 $ 31,885 $ 9,241 $ (18,470 ) $ 44,836 Three months ended March 31 2022 Revenue from external customers $ 175,202 $ 143,928 $ 36,391 $ - $ 355,521 Intersegment revenue 7,525 4,510 74 - 12,109 Total revenue $ 182,727 $ 148,438 $ 36,465 $ - $ 367,630 Operating income (loss) $ 27,579 $ 30,657 $ 8,204 $ (13,651 ) $ 52,789 Interest expense - - - 2,993 2,993 Earnings (loss) before income taxes $ 27,579 $ 30,657 $ 8,204 $ (16,644 ) $ 49,796 |
Product Lines | Product Lines (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended March 31 2023 Flavors, Extracts & Flavor Ingredients $ 124,825 $ - $ - $ 124,825 Natural Ingredients 54,027 - - 54,027 Food & Pharmaceutical Colors - 118,747 - 118,747 Personal Care - 42,414 - 42,414 Asia Pacific - - 40,085 40,085 Intersegment Revenue (6,880 ) (4,212 ) - (11,092 ) Total revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ 369,006 Three months ended March 31 2022 Flavors, Extracts & Flavor Ingredients $ 126,518 $ - $ - $ 126,518 Natural Ingredients 56,209 - - 56,209 Food & Pharmaceutical Colors - 103,109 - 103,109 Personal Care - 44,846 - 44,846 Inks - 483 - 483 Asia Pacific - - 36,465 36,465 Intersegment Revenue (7,525 ) (4,510 ) (74 ) (12,109 ) Total revenue from external customers $ 175,202 $ 143,928 $ 36,391 $ 355,521 |
Geographical Markets | Geographic Markets (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended March 31 2023 North America $ 131,968 $ 78,377 $ 62 $ 210,407 Europe 28,927 43,252 103 72,282 Asia Pacific 5,201 18,149 39,195 62,545 Other 5,876 17,171 725 23,772 Total revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ 369,006 Three months ended March 31 2022 North America $ 126,702 $ 69,928 $ 58 $ 196,688 Europe 32,605 41,978 81 74,664 Asia Pacific 9,737 16,016 33,982 59,735 Other 6,158 16,006 2,270 24,434 Total revenue from external customers $ 175,202 $ 143,928 $ 36,391 $ 355,521 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, (In thousands) 2023 2022 Service cost $ 368 $ 408 Interest cost 409 244 Expected return on plan assets (239 ) (205 ) Recognized actuarial (gain) loss (139 ) 12 Total defined benefit expense $ 399 $ 459 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in OCI | The following table summarizes the changes in OCI during the three month periods ended March 31, 2023 and 2022: (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at December 31, 2022 $ (599 ) $ (1,792 ) $ (198,297 ) $ (200,688 ) Other comprehensive income before reclassifications 1,700 - 14,841 16,541 Amounts reclassified from OCI (118 ) (122 ) - (240 ) Balances at March 31, 2023 $ 983 $ (1,914 ) $ (183,456 ) $ (184,387 ) (In thousands) Cash Flow Hedges (1) Pension Items (1) Foreign Currency Items Total Balances at December 31, 2021 $ 206 $ (353 ) $ (174,481 ) $ (174,628 ) Other comprehensive income (loss) before reclassifications 242 - (145 ) 97 Amounts reclassified from OCI (342 ) 8 - (334 ) Balances at March 31, 2022 $ 106 $ (345 ) $ (174,626 ) $ (174,865 ) (1) Cash Flow Hedges and Pension Items are net of tax. |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 03, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Acquisition [Abstract] | |||
Goodwill | $ 419,302 | $ 415,715 | |
Endemix [Member] | |||
Acquisition [Abstract] | |||
Acquisition of new businesses | $ 23,300 | ||
Debt assumed | 1,300 | ||
Amount of cash held back for indemnification claims | 1,700 | ||
Period for cash to be held back for post-closing working capital adjustments and indemnification claims | 12 months | ||
Net assets acquired | 8,900 | ||
Goodwill | 9,500 | ||
Endemix [Member] | Technological Know-how and Customer Relationships [Member] | |||
Acquisition [Abstract] | |||
Intangibles assets acquired | $ 4,900 |
Trade Accounts Receivable (Deta
Trade Accounts Receivable (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) Segment | Mar. 31, 2022 USD ($) | |
Trade Accounts Receivable [Abstract] | ||
Number of portfolio segments | Segment | 1 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 4,436 | $ 4,877 |
Provision for expected credit losses | 120 | 285 |
Accounts written off | (614) | (367) |
Translation and other activity | 103 | 117 |
Ending balance | $ 4,045 | $ 4,912 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventories [Abstract] | ||
Finished and in-process products | $ 372.6 | $ 385.2 |
Raw materials and supplies | $ 201.1 | $ 178.9 |
Fair Value (Details)
Fair Value (Details) - Level 2 [Member] - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, Fair Value Disclosure [Abstract] | ||
Forward exchange contract, asset | $ 1.2 | |
Foreign currency contracts, liability | $ 0.2 | |
Carrying Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | 680.2 | 630.8 |
Fair Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | $ 672.5 | $ 622.2 |
Segment Information, Operating
Segment Information, Operating Results by Segment (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) Segment | Mar. 31, 2022 USD ($) | |
Segment Information [Abstract] | ||
Number of reportable segments | Segment | 3 | |
Revenue [Abstract] | ||
Revenue | $ 369,006 | $ 355,521 |
Operating income (loss) | 50,838 | 52,789 |
Interest expense | 6,002 | 2,993 |
Earnings before income taxes | 44,836 | 49,796 |
Flavors & Extracts [Member] | ||
Revenue [Abstract] | ||
Revenue | 171,972 | 175,202 |
Operating income (loss) | 22,180 | 27,579 |
Interest expense | 0 | 0 |
Earnings before income taxes | 22,180 | 27,579 |
Color [Member] | ||
Revenue [Abstract] | ||
Revenue | 156,949 | 143,928 |
Operating income (loss) | 31,885 | 30,657 |
Interest expense | 0 | 0 |
Earnings before income taxes | 31,885 | 30,657 |
Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 40,085 | 36,391 |
Operating income (loss) | 9,241 | 8,204 |
Interest expense | 0 | 0 |
Earnings before income taxes | 9,241 | 8,204 |
Reportable Segments [Member] | ||
Revenue [Abstract] | ||
Revenue | 380,098 | 367,630 |
Reportable Segments [Member] | Flavors & Extracts [Member] | ||
Revenue [Abstract] | ||
Revenue | 178,852 | 182,727 |
Reportable Segments [Member] | Color [Member] | ||
Revenue [Abstract] | ||
Revenue | 161,161 | 148,438 |
Reportable Segments [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 40,085 | 36,465 |
Intersegment Revenue [Member] | ||
Revenue [Abstract] | ||
Revenue | 11,092 | 12,109 |
Intersegment Revenue [Member] | Flavors & Extracts [Member] | ||
Revenue [Abstract] | ||
Revenue | 6,880 | 7,525 |
Intersegment Revenue [Member] | Color [Member] | ||
Revenue [Abstract] | ||
Revenue | 4,212 | 4,510 |
Intersegment Revenue [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 74 |
Corporate & Other [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 0 |
Operating income (loss) | (12,468) | (13,651) |
Interest expense | 6,002 | 2,993 |
Earnings before income taxes | $ (18,470) | $ (16,644) |
Segment Information, Revenue fr
Segment Information, Revenue from External Customers by Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue [Abstract] | ||
Revenue | $ 369,006 | $ 355,521 |
Flavors, Extracts & Flavor Ingredients [Member] | ||
Revenue [Abstract] | ||
Revenue | 124,825 | 126,518 |
Natural Ingredients [Member] | ||
Revenue [Abstract] | ||
Revenue | 54,027 | 56,209 |
Food & Pharmaceutical Colors [Member] | ||
Revenue [Abstract] | ||
Revenue | 118,747 | 103,109 |
Personal Care [Member] | ||
Revenue [Abstract] | ||
Revenue | 42,414 | 44,846 |
Inks [Member] | ||
Revenue [Abstract] | ||
Revenue | 483 | |
Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 40,085 | 36,465 |
Flavors & Extracts [Member] | ||
Revenue [Abstract] | ||
Revenue | 171,972 | 175,202 |
Flavors & Extracts [Member] | Flavors, Extracts & Flavor Ingredients [Member] | ||
Revenue [Abstract] | ||
Revenue | 124,825 | 126,518 |
Flavors & Extracts [Member] | Natural Ingredients [Member] | ||
Revenue [Abstract] | ||
Revenue | 54,027 | 56,209 |
Flavors & Extracts [Member] | Food & Pharmaceutical Colors [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 0 |
Flavors & Extracts [Member] | Personal Care [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 0 |
Flavors & Extracts [Member] | Inks [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | |
Flavors & Extracts [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 0 |
Color [Member] | ||
Revenue [Abstract] | ||
Revenue | 156,949 | 143,928 |
Color [Member] | Flavors, Extracts & Flavor Ingredients [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 0 |
Color [Member] | Natural Ingredients [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 0 |
Color [Member] | Food & Pharmaceutical Colors [Member] | ||
Revenue [Abstract] | ||
Revenue | 118,747 | 103,109 |
Color [Member] | Personal Care [Member] | ||
Revenue [Abstract] | ||
Revenue | 42,414 | 44,846 |
Color [Member] | Inks [Member] | ||
Revenue [Abstract] | ||
Revenue | 483 | |
Color [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 0 |
Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 40,085 | 36,391 |
Asia Pacific [Member] | Flavors, Extracts & Flavor Ingredients [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 0 |
Asia Pacific [Member] | Natural Ingredients [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 0 |
Asia Pacific [Member] | Food & Pharmaceutical Colors [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 0 |
Asia Pacific [Member] | Personal Care [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | 0 |
Asia Pacific [Member] | Inks [Member] | ||
Revenue [Abstract] | ||
Revenue | 0 | |
Asia Pacific [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 40,085 | 36,465 |
Intersegment Revenue [Member] | ||
Revenue [Abstract] | ||
Revenue | 11,092 | 12,109 |
Intersegment Revenue [Member] | Flavors & Extracts [Member] | ||
Revenue [Abstract] | ||
Revenue | 6,880 | 7,525 |
Intersegment Revenue [Member] | Color [Member] | ||
Revenue [Abstract] | ||
Revenue | 4,212 | 4,510 |
Intersegment Revenue [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | $ 0 | $ 74 |
Segment Information, Revenue _2
Segment Information, Revenue from External Customers by Geographic Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue [Abstract] | ||
Revenue | $ 369,006 | $ 355,521 |
North America [Member] | ||
Revenue [Abstract] | ||
Revenue | 210,407 | 196,688 |
Europe [Member] | ||
Revenue [Abstract] | ||
Revenue | 72,282 | 74,664 |
Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 62,545 | 59,735 |
Other [Member] | ||
Revenue [Abstract] | ||
Revenue | 23,772 | 24,434 |
Flavors & Extracts [Member] | ||
Revenue [Abstract] | ||
Revenue | 171,972 | 175,202 |
Color [Member] | ||
Revenue [Abstract] | ||
Revenue | 156,949 | 143,928 |
Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 40,085 | 36,391 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | North America [Member] | ||
Revenue [Abstract] | ||
Revenue | 131,968 | 126,702 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Europe [Member] | ||
Revenue [Abstract] | ||
Revenue | 28,927 | 32,605 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 5,201 | 9,737 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Other [Member] | ||
Revenue [Abstract] | ||
Revenue | 5,876 | 6,158 |
Reportable Geographical Components [Member] | Color [Member] | North America [Member] | ||
Revenue [Abstract] | ||
Revenue | 78,377 | 69,928 |
Reportable Geographical Components [Member] | Color [Member] | Europe [Member] | ||
Revenue [Abstract] | ||
Revenue | 43,252 | 41,978 |
Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 18,149 | 16,016 |
Reportable Geographical Components [Member] | Color [Member] | Other [Member] | ||
Revenue [Abstract] | ||
Revenue | 17,171 | 16,006 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member] | ||
Revenue [Abstract] | ||
Revenue | 62 | 58 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member] | ||
Revenue [Abstract] | ||
Revenue | 103 | 81 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member] | ||
Revenue [Abstract] | ||
Revenue | 39,195 | 33,982 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member] | ||
Revenue [Abstract] | ||
Revenue | $ 725 | $ 2,270 |
Retirement Plans (Details)
Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 368 | $ 408 |
Interest cost | 409 | 244 |
Expected return on plan assets | (239) | (205) |
Recognized actuarial (gain) loss | (139) | 12 |
Total defined benefit expense | $ 399 | $ 459 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
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 Hedges [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Derivative, fair value | $ 55.5 | $ 70.1 | |
Foreign Currency Denominated Debt, Net Investment Hedging [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Carrying value of foreign denominated debt | 319.9 | $ 315.5 | |
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ 4.4 | $ (7.9) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Taxes [Abstract] | ||
Effective income tax rates | 24.90% | 25.60% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 999,598 | $ 938,425 | |
Other comprehensive income (loss) before reclassifications | 16,541 | 97 | |
Amounts reclassified from OCI | (240) | (334) | |
Ending balance | 1,028,221 | 961,710 | |
Accumulated Other Comprehensive (Loss) Income [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (200,688) | (174,628) | |
Ending balance | (184,387) | (174,865) | |
Cash Flow Hedges [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | [1] | (599) | 206 |
Other comprehensive income (loss) before reclassifications | [1] | 1,700 | 242 |
Amounts reclassified from OCI | [1] | (118) | (342) |
Ending balance | [1] | 983 | 106 |
Pension Items [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | [1] | (1,792) | (353) |
Other comprehensive income (loss) before reclassifications | [1] | 0 | 0 |
Amounts reclassified from OCI | [1] | (122) | 8 |
Ending balance | [1] | (1,914) | (345) |
Foreign Currency Items [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (198,297) | (174,481) | |
Other comprehensive income (loss) before reclassifications | 14,841 | (145) | |
Amounts reclassified from OCI | 0 | 0 | |
Ending balance | $ (183,456) | $ (174,626) | |
[1]Cash Flow Hedges and Pension Items are net of tax. |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] | Apr. 27, 2023 $ / shares |
Subsequent Events [Abstract] | |
Dividend declared date | Apr. 27, 2023 |
Dividend payable (in dollars per share) | $ 0.41 |
Dividend payable date | Jun. 01, 2023 |