Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 24, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-4858 | |
Entity Registrant Name | INTERNATIONAL FLAVORS & FRAGRANCES INC | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-1432060 | |
Entity Address, Address Line One | 521 West 57th Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10019 | |
City Area Code | 212 | |
Local Phone Number | 765-5500 | |
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 | 106,774,947 | |
Entity Central Index Key | 0000051253 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock, par value 12 1/2¢ per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value 12 1/2¢ per share | |
Trading Symbol | IFF | |
Security Exchange Name | NYSE | |
6.00% Tangible Equity Units | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.00% Tangible Equity Units | |
Trading Symbol | IFFT | |
Security Exchange Name | NYSE | |
0.500% Senior Notes due 2021 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.500% Senior Notes due 2021 | |
Trading Symbol | IFF 21 | |
Security Exchange Name | NYSE | |
1.750% Senior Notes due 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.750% Senior Notes due 2024 | |
Trading Symbol | IFF 24 | |
Security Exchange Name | NYSE | |
1.800% Senior Notes due 2026 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.800% Senior Notes due 2026 | |
Trading Symbol | IFF 26 | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 426,717 | $ 634,897 |
Restricted cash | 28,103 | 13,625 |
Trade receivables (net of allowances of $9,105 and $9,173, respectively) | 1,046,028 | 937,765 |
Inventories: | ||
Raw materials | 615,301 | 568,916 |
Work in process | 54,849 | 48,819 |
Finished goods | 493,503 | 460,802 |
Total Inventories | 1,163,653 | 1,078,537 |
Prepaid expenses and other current assets | 325,525 | 277,036 |
Total Current Assets | 2,990,026 | 2,941,860 |
Property, plant and equipment, at cost | 2,631,638 | 2,492,938 |
Accumulated depreciation | (1,315,333) | (1,251,786) |
Total Property Plant and Equipment | 1,316,305 | 1,241,152 |
Goodwill | 5,506,317 | 5,378,388 |
Other intangible assets, net | 2,944,667 | 3,039,322 |
Other assets | 590,767 | 288,673 |
Total Assets | 13,348,082 | 12,889,395 |
Current Liabilities: | ||
Bank borrowings, overdrafts, and current portion of long-term debt | 84,231 | 48,642 |
Accounts payable | 463,555 | 471,382 |
Accrued payroll and bonus | 93,910 | 121,080 |
Dividends payable | 77,898 | 77,779 |
Other current liabilities | 429,939 | 409,428 |
Total Current Liabilities | 1,149,533 | 1,128,311 |
Long-term debt | 4,428,675 | 4,504,417 |
Retirement liabilities | 222,186 | 227,172 |
Deferred income taxes | 707,359 | 655,879 |
Other liabilities | 514,802 | 248,436 |
Total Other Liabilities | 5,873,022 | 5,635,904 |
Commitments and Contingencies | ||
Redeemable noncontrolling interests | 115,540 | 81,806 |
Shareholders' Equity: | ||
Common stock 12 1/2¢ par value; 500,000,000 shares authorized; 128,526,137 shares issued as of June 30, 2019 and December 31, 2018; and 106,774,300 and 106,619,202 shares outstanding as of June 30, 2019 and December 31, 2018, respectively | 16,066 | 16,066 |
Capital in excess of par value | 3,805,883 | 3,793,609 |
Retained earnings | 4,069,211 | 3,956,221 |
Accumulated other comprehensive loss | (668,359) | (702,227) |
Treasury stock, at cost (21,751,837 and 21,906,935 shares as of June 30, 2019 and December 31, 2018, respectively) | (1,023,422) | (1,030,718) |
Total Shareholders’ Equity | 6,199,379 | 6,032,951 |
Noncontrolling interest | 10,608 | 10,423 |
Total Shareholders’ Equity including noncontrolling interest | 6,209,987 | 6,043,374 |
Total Liabilities and Shareholders’ Equity | $ 13,348,082 | $ 12,889,395 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trade receivables allowances | $ 9,105 | $ 9,173 |
Common stock, par value, in dollars per share | $ 0.125 | $ 0.125 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 128,526,137 | 128,526,137 |
Common stock, shares outstanding | 106,774,300 | 106,619,202 |
Treasury stock, shares at cost | 21,751,837 | 21,906,935 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,291,568 | $ 920,016 | $ 2,588,970 | $ 1,850,944 |
Cost of goods sold | 745,329 | 521,299 | 1,511,472 | 1,046,419 |
Gross profit | 546,239 | 398,717 | 1,077,498 | 804,525 |
Research and development expenses | 84,816 | 74,767 | 175,412 | 153,244 |
Selling and administrative expenses | 210,100 | 157,407 | 423,282 | 300,051 |
Amortization of acquisition-related intangibles | 47,909 | 9,584 | 95,534 | 18,769 |
Restructuring and other charges, net | 2,525 | 1,186 | 18,699 | 1,903 |
Losses on sales of fixed assets | 952 | 1,264 | 764 | 1,195 |
Operating profit | 199,937 | 154,509 | 363,807 | 329,363 |
Interest expense | 32,593 | 53,246 | 69,165 | 69,841 |
Other income, net | (2,137) | (20,655) | (9,415) | (21,232) |
Income before taxes | 169,481 | 121,918 | 304,057 | 280,754 |
Taxes on income | 30,612 | 22,769 | 53,974 | 52,190 |
Net income | 138,869 | 99,149 | 250,083 | 228,564 |
Net income attributable to noncontrolling interests | 2,492 | 0 | 4,877 | 0 |
Net income attributable to IFF stockholders | 136,377 | 99,149 | 245,206 | 228,564 |
Other comprehensive (loss) income, after tax: | ||||
Foreign currency translation adjustments | (14,014) | (85,264) | 28,363 | (70,461) |
Gains on derivatives qualifying as hedges | 415 | 10,455 | 318 | 9,926 |
Pension and postretirement net liability | 2,594 | 2,890 | 5,187 | 5,519 |
Net current period other comprehensive income (loss) | (11,005) | (71,919) | 33,868 | (55,016) |
Comprehensive income attributable to IFF stockholders | $ 125,372 | $ 27,230 | $ 279,074 | $ 173,548 |
Net income per share - basic (in dollars per share) | $ 1.21 | $ 1.25 | $ 2.19 | $ 2.89 |
Net income per share - diluted (in dollars per share) | $ 1.20 | $ 1.25 | $ 2.16 | $ 2.87 |
Average number of shares outstanding - basic (in shares) | 111,996 | 79,065 | 111,930 | 79,041 |
Average number of shares outstanding - diluted (in shares) | 112,872 | 79,303 | 113,131 | 79,347 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 250,083 | $ 228,564 |
Adjustments to reconcile to net cash provided by operating activities | ||
Depreciation and amortization | 154,814 | 64,968 |
Deferred income taxes | (27,214) | 14,342 |
Losses on sale of assets | 764 | 1,195 |
Stock-based compensation | 18,300 | 15,173 |
Pension contributions | (10,681) | (9,963) |
Product recall claim settlement, net of insurance proceeds received | 0 | (12,969) |
Changes in assets and liabilities, net of acquisitions: | ||
Trade receivables | (87,111) | (99,963) |
Inventories | (71,545) | (67,940) |
Accounts payable | (7,645) | (7,139) |
Accruals for incentive compensation | (29,338) | (25,158) |
Other current payables and accrued expenses | (11,934) | 11,028 |
Other assets | (29,989) | (65,620) |
Other liabilities | 36,412 | 8,651 |
Net cash provided by operating activities | 184,916 | 55,169 |
Cash flows from investing activities: | ||
Cash paid for acquisitions, net of cash received | (49,064) | (22) |
Additions to property, plant and equipment | (119,094) | (67,421) |
Proceeds from life insurance contracts | 1,890 | 0 |
Maturity of net investment hedges | 0 | (2,642) |
Proceeds from disposal of assets | 24,685 | 618 |
Contingent consideration paid | (4,655) | 0 |
Net cash used in investing activities | (146,238) | (69,467) |
Cash flows from financing activities: | ||
Cash dividends paid to shareholders | (155,578) | (108,824) |
Increase in revolving credit facility and short term borrowings | 8 | 110,259 |
Deferred financing costs | 0 | (1,401) |
Repayments on debt | (47,417) | 0 |
Contingent consideration paid | (21,791) | 0 |
Proceeds from issuance of stock in connection with stock options | 200 | 0 |
Employee withholding taxes paid | (9,855) | (9,096) |
Purchase of treasury stock | 0 | (15,475) |
Net cash used in financing activities | (234,433) | (24,537) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,053 | (6,788) |
Net change in cash, cash equivalents and restricted cash | (193,702) | (45,623) |
Cash, cash equivalents and restricted cash at beginning of year | 648,522 | 368,046 |
Cash, cash equivalents and restricted cash at end of period | 454,820 | 322,423 |
Supplemental Disclosures: | ||
Interest paid, net of amounts capitalized | 70,479 | 74,422 |
Income taxes paid | 73,911 | 57,809 |
Accrued capital expenditures | $ 18,780 | $ 19,160 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY - USD ($) $ in Thousands | Total | Common stock | Capital in excess of par value | Retained earnings | Accumulated other comprehensive (loss) income | Treasury stock | Non-controlling interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative adjustment | Accounting Standards Update 2014-09 | $ 2,158 | $ 2,158 | |||||
Beginning Balance at Dec. 31, 2017 | 1,689,294 | $ 14,470 | $ 162,827 | 3,870,621 | $ (637,482) | $ (1,726,234) | $ 5,092 |
Beginning Balance, shares at Dec. 31, 2017 | (36,910,809) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 229,820 | 228,564 | 1,256 | ||||
Foreign currency translation adjustments | (70,461) | (70,461) | |||||
Gains (losses) on derivatives qualifying as hedges; net of tax | 9,926 | 9,926 | |||||
Pension and postretirement net liability | 5,519 | 5,519 | |||||
Cash dividends declared | (108,891) | (108,891) | |||||
Stock options/SSARs | 2,289 | 123 | $ 2,166 | ||||
Stock options, shares | 46,018 | ||||||
Treasury share repurchases, shares | (108,109) | ||||||
Treasury share repurchases | (15,475) | $ (15,475) | |||||
Vested restricted stock units and awards | (3,149) | (10,691) | $ 7,542 | ||||
Vested restricted stock units and awards, shares | 160,927 | ||||||
Stock-based compensation | 15,173 | 15,173 | |||||
Ending Balance at Jun. 30, 2018 | 1,756,203 | 14,470 | 167,432 | 3,992,452 | (692,498) | $ (1,732,001) | 6,348 |
Ending Balance, shares at Jun. 30, 2018 | 36,811,973 | ||||||
Beginning Balance at Mar. 31, 2018 | 1,778,962 | 14,470 | 166,517 | 3,947,791 | (620,579) | $ (1,735,049) | 5,812 |
Beginning Balance, shares at Mar. 31, 2018 | (36,937,991) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 99,685 | 99,149 | 536 | ||||
Foreign currency translation adjustments | (85,264) | (85,264) | |||||
Gains (losses) on derivatives qualifying as hedges; net of tax | 10,455 | 10,455 | |||||
Pension and postretirement net liability | 2,890 | 2,890 | |||||
Cash dividends declared | (54,488) | (54,488) | |||||
Stock options/SSARs | 1,779 | 349 | $ 1,430 | ||||
Stock options, shares | 30,340 | ||||||
Treasury share repurchases, shares | (34,955) | ||||||
Treasury share repurchases | (4,498) | $ (4,498) | |||||
Vested restricted stock units and awards | (872) | (6,988) | $ 6,116 | ||||
Vested restricted stock units and awards, shares | 130,633 | ||||||
Stock-based compensation | 7,554 | 7,554 | |||||
Ending Balance at Jun. 30, 2018 | 1,756,203 | 14,470 | 167,432 | 3,992,452 | (692,498) | $ (1,732,001) | 6,348 |
Ending Balance, shares at Jun. 30, 2018 | 36,811,973 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative adjustment | Accounting Standards Update 2016-02 | 23,094 | 23,094 | |||||
Cumulative adjustment | Accounting Standards Update 2017-12 | 981 | 981 | |||||
Beginning Balance at Dec. 31, 2018 | $ 6,043,374 | 16,066 | 3,793,609 | 3,956,221 | (702,227) | $ (1,030,718) | 10,423 |
Beginning Balance, shares at Dec. 31, 2018 | (21,906,935) | (21,906,935) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 246,712 | 245,206 | 1,506 | ||||
Foreign currency translation adjustments | 28,363 | 28,363 | |||||
Gains (losses) on derivatives qualifying as hedges; net of tax | 318 | 318 | |||||
Pension and postretirement net liability | 5,187 | 5,187 | |||||
Cash dividends declared | (155,703) | (155,703) | |||||
Stock options/SSARs | 5,746 | 5,085 | $ 661 | ||||
Stock options, shares | 14,002 | ||||||
Vested restricted stock units and awards | (4,333) | (10,968) | $ 6,635 | ||||
Vested restricted stock units and awards, shares | 141,096 | ||||||
Stock-based compensation | 18,300 | 18,300 | |||||
Redeemable NCI | (143) | (143) | |||||
Dividends paid on noncontrolling interest and other activities | (1,909) | (588) | (1,321) | ||||
Ending Balance at Jun. 30, 2019 | $ 6,209,987 | 16,066 | 3,805,883 | 4,069,211 | (668,359) | $ (1,023,422) | 10,608 |
Ending Balance, shares at Jun. 30, 2019 | (21,751,837) | 21,751,837 | |||||
Beginning Balance at Mar. 31, 2019 | $ 6,154,478 | 16,066 | 3,802,602 | 4,011,326 | (657,354) | $ (1,029,429) | 11,267 |
Beginning Balance, shares at Mar. 31, 2019 | (21,879,556) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 137,039 | 136,377 | 662 | ||||
Foreign currency translation adjustments | (14,014) | (14,014) | |||||
Gains (losses) on derivatives qualifying as hedges; net of tax | 415 | 415 | |||||
Pension and postretirement net liability | 2,594 | 2,594 | |||||
Cash dividends declared | (77,904) | (77,904) | |||||
Stock options/SSARs | 1,662 | 1,661 | $ 1 | ||||
Stock options, shares | 24 | ||||||
Vested restricted stock units and awards | (2,557) | (8,563) | $ 6,006 | ||||
Vested restricted stock units and awards, shares | 127,695 | ||||||
Stock-based compensation | 10,696 | 10,696 | |||||
Redeemable NCI | (513) | (513) | |||||
Dividends paid on noncontrolling interest and other activities | (1,909) | (588) | (1,321) | ||||
Ending Balance at Jun. 30, 2019 | $ 6,209,987 | $ 16,066 | $ 3,805,883 | $ 4,069,211 | $ (668,359) | $ (1,023,422) | $ 10,608 |
Ending Balance, shares at Jun. 30, 2019 | (21,751,837) | 21,751,837 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Tax effect of gain (losses) on derivatives qualifying as hedges | $ 342 | $ 1,463 | $ 387 | $ 1,357 |
Tax effect of pension liability and postretirement adjustment | $ 1,937 | $ 4,499 | $ 1,101 | $ 2,605 |
Cash dividends declared, per share | $ 0.73 | $ 0.69 | $ 1.46 | $ 1.38 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These interim statements and related management’s discussion and analysis should be read in conjunction with the Consolidated Financial Statements and the related notes and management’s discussion and analysis of results of operations, liquidity and capital resources included in our 2018 Annual Report on Form 10-K (“ 2018 Form 10-K”). These interim statements are unaudited. The year-end balance sheet data included in this Form 10-Q was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America. We have historically operated and continue to operate on a 52/53 week fiscal year ending on the Friday closest to the last day of the quarter. For ease of presentation, June 30 and December 31 are used consistently throughout this Form 10-Q and these interim financial statements and related notes to represent the period-end dates. For the 2019 and 2018 quarters, the actual closing dates were June 28 and June 29, respectively. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. When used herein, the terms “IFF,” the “Company,” “we,” “us” and “our” mean International Flavors & Fragrances Inc. and its consolidated subsidiaries. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Accounts Receivable The Company sells certain accounts receivable on a non-recourse basis to unrelated financial institutions under “factoring” agreements that are sponsored, solely and individually, by certain customers. The Company accounts for these transactions as sales of receivables, removes the receivables sold from its financial statements, and records cash proceeds when received by the Company. The beneficial impact on cash provided by operations from participating in these programs increased $24.0 million for the six months ended June 30, 2019 compared to a decrease of $25.5 million for the six months ended June 30, 2018 . The cost of participating in these programs was immaterial to our results in all periods. Contract Assets With respect to a small number of contracts for the sale of Compounds, the Company has an “enforceable right to payment for performance to date” and as the products do not have an alternative use, the Company recognizes revenue for these contracts over time and records a contract asset using the output method. The output method recognizes revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract. The following table reflects the balances in our contract assets and accounts receivable for the periods ended June 30, 2019 and December 31, 2018 : (DOLLARS IN THOUSANDS) June 30, 2019 December 31, 2018 Receivables (included in Trade receivables) $ 1,055,133 $ 946,938 Contract asset - Short term 1,095 487 Revenue Recognition The Company recognizes revenue when control of the promised goods is transferred to its customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods. Sales, value add, and other taxes the Company collects are excluded from revenues. The Company receives payment in accordance with standard customer terms. The following table presents the Company's revenues disaggregated by product categories: Three Months Ended June 30, Six Months Ended June 30, (DOLLARS IN THOUSANDS) 2019 2018 2019 2018 Flavor Compounds $ 729,279 $ 450,540 $ 1,449,481 $ 899,559 Fragrance Compounds 375,696 372,034 764,807 750,666 Ingredients 186,593 97,442 374,682 200,719 Total revenues $ 1,291,568 $ 920,016 $ 2,588,970 $ 1,850,944 Recent Accounting Pronouncements In October 2018, the FASB issued Accounting Standards Update ("ASU") 2018-16, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate ("SOFR") Overnight Index Swap ("OIS") Rate as a Benchmark Interest Rate for Hedge Accounting Purposes." The ASU allows for the use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for purposes of applying hedge accounting under ASC 815, Derivatives and Hedging. The Company applied this new guidance as of December 29, 2018, the first day of the Company’s 2019 fiscal year. The adoption of the guidance did not have a material impact on the Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).” The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This guidance is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans (Subtopic 715-20)", which modifies the disclosure requirements on company-sponsored defined benefit plans. The ASU is effective for fiscal years beginning after December 15, 2020 on a retrospective basis to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820)", which modifies, removes and adds certain disclosure requirements on fair value measurements. The ASU is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. The Company has determined that this guidance does not have an impact on its Consolidated Financial Statements, as the Company has no applicable fair value measurements that are affected by the guidance. In June 2018, the FASB issued ASU 2018-07, "Compensation - Stock Compensation (Topic 718)" intended to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments. This guidance expands the scope of Topic 718, Compensation-Stock Compensation which currently only includes share-based payments to employees to include share-based payments issued to nonemployees for goods or services. The Company applied this new guidance as of December 29, 2018, the first day of the Company’s 2019 fiscal year. The adoption of the guidance did not have a material impact on the Consolidated Financial Statements. In February 2018, FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" which allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act, in addition to requiring certain disclosures about stranded tax effects. The guidance was effective as of December 29, 2018, the first day of the Company's fiscal year. The Company has elected to not reclassify any stranded tax effects to retained earnings. In August 2017, FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" which eliminates the requirement to separately measure and present hedge ineffectiveness and aligns the presentation of hedge gains and losses with the underlying hedge item. This guidance is effective, and as required, has been applied on a modified retrospective basis. The impact of the adoption of this standard on December 29, 2018 was a decrease in the beginning balance of the currency translation adjustment component of Accumulated other comprehensive loss of $1.0 million , and an increase in Retained Earnings, as presented in the Company's Consolidated Balance Sheet. See Note 13 of the Consolidated Financial Statements for further details. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", with subsequent amendments, which requires issuers to measure expected credit losses for financial assets based on historical experience, current conditions and reasonable and supportable forecasts. As such, an entity will use forward-looking information to estimate credit losses. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", with subsequent amendments, which requires changes to the accounting for leases and supersedes existing lease guidance, including ASC 840 - Leases. See Note 8 for further details. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NET INCOME PER SHARE A reconciliation of the shares used in the computation of basic and diluted net income per share is as follows: Three Months Ended June 30, Six Months Ended June 30, (SHARES IN THOUSANDS) 2019 2018 2019 2018 Net Income Net income attributable to IFF stockholders $ 136,377 $ 99,149 $ 245,206 $ 228,564 Less: Increase in redemption value of redeemable noncontrolling interests in excess of earnings allocated (513 ) — (143 ) — Net income available to IFF stockholders $ 135,864 $ 99,149 $ 245,063 $ 228,564 Shares Weighted average common shares outstanding (basic) (1) 111,996 79,065 111,930 79,041 Adjustment for assumed dilution (2) : Stock options and restricted stock awards 424 238 393 306 SPC portion of TEUs 452 — 808 — Weighted average shares assuming dilution (diluted) 112,872 79,303 113,131 79,347 Net Income per Share Net income per share - basic $ 1.21 $ 1.25 $ 2.19 $ 2.89 Net income per share - diluted 1.20 1.25 2.16 2.87 _______________________ (1) For the three and six months ended June 30, 2019 , the tangible equity units (“TEUs”) were assumed to be outstanding at the minimum settlement amount for weighted-average shares for basic earnings per share. See below for details. (2) Effect of dilutive securities includes dilution under stock plans and incremental impact of TEUs. See below for details. The Company declared a quarterly dividend to its shareholders of $0.73 and $0.69 for the three months ended June 30, 2019 and 2018 , respectively. For the six months ended June 30, 2019 and 2018 , the Company declared quarterly dividends to its shareholders totaling $1.46 and $1.38 , respectively. There were no stock options or stock-settled appreciation rights (“SSARs”) excluded from the computation of diluted net income per share for the three and six months ended June 30, 2019 and 2018 . The Company issued 16,500,000 TEUs, consisting of a prepaid stock purchase contract ("SPC") and a senior amortizing note, for net proceeds of $800.2 million on September 17, 2018. For the periods outstanding, the SPC portion of the TEUs was assumed to be settled at the minimum settlement amount of 0.3134 shares per SPC for purposes of calculating weighted-average shares for the basic earnings per share calculation. For purposes of calculating diluted earnings per share, the SPCs were assumed to be settled at a conversion factor based on the 20 day volume-weighted average price (“VWAP”) per share of the Company’s common stock not to exceed 0.3408 shares per SPC. The Company has issued shares of purchased restricted common stock and purchased restricted common stock units (collectively “PRSUs”) which contain rights to nonforfeitable dividends while these shares are outstanding and thus are considered participating securities. Such securities are required to be included in the computation of basic and diluted earnings per share pursuant to the two-class method. The Company did not present the two-class method since the difference between basic and diluted net income per share for both unrestricted common shareholders and PRSU shareholders was less than $0.01 per share for each period presented, and the number of PRSUs outstanding as of June 30, 2019 and 2018 was immaterial. Net income allocated to such PRSUs was $0.2 million and $0.2 million for the three months ended June 30, 2019 and 2018 , and $0.3 million and $0.5 million for the six months ended June 30, 2019 and 2018 . |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS 2019 Acquisition Activity During the second quarter of 2019, the Company acquired the remaining 50% interest in an equity method investee located in Canada. The purchase of the additional interest increased the Company's ownership of the investee to 100% , and the acquired entity will be managed under the Frutarom segment. The purchase price for the remaining 50% was approximately $40 million , including cash and an accrual for the amount expected to be paid in contingent consideration. The Company began to consolidate the results of the acquired entity from the date on which it acquired the remaining 50% interest during the second quarter of 2019. Goodwill of approximately $24 million and intangible assets of $15 million were recorded in connection with the acquisition. The purchase price allocation is preliminary and is expected to be completed within the measurement period. During the first quarter of 2019, the Company acquired 70% of a company in Europe and increased its ownership of an Asian company from 49% to 60% after receipt of previously pending regulatory approvals. The two acquired entities, which manufacture flavor products, will be managed under the Frutarom segment. The total purchase price for the acquisitions was $52 million , excluding cash acquired and including $19 million of contingent consideration and deferred payments. The preliminary purchase price allocations have been performed and resulted in goodwill of approximately $56 million and intangible assets of $18 million . The purchase price allocations are preliminary and are expected to be completed within the measurement period. Pro forma information has not been presented as the acquired entities are not material. Frutarom On October 4, 2018, the Company completed its acquisition of 100% of the equity of Frutarom Industries Ltd. (“Frutarom”). Purchase Price Allocation The Company allocated the purchase consideration to the tangible net assets and identifiable intangible assets acquired based on estimated fair values at the acquisition date, and recorded the excess of consideration over the fair values of net assets acquired as goodwill. During the second quarter of 2019, the Company updated the purchase price allocation, principally to reflect updated values for certain entities' fixed assets and to adjust the tax rate on deferred tax liabilities to reflect the rate at which the deferred tax liabilities will reverse. The purchase price allocation is preliminary and subject to change. The Company is currently finalizing the valuation of fixed assets, goodwill and intangible assets (trade names, product formulas, customer relationships and favorable/unfavorable leases and the related estimated useful lives). Additionally, the Company is finalizing the projected combined future tax rate to be applied to the valuation of assets, which could impact the valuation of goodwill and intangible assets. The determination of the fair value of assets and liabilities, including those related to leases, will be finalized as soon as the valuation is completed which is expected to be during the third quarter of 2019. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed as of October 4, 2018: (IN THOUSANDS) As reported in the fourth quarter of 2018 Measurement period adjustments As reported in the second quarter of 2019 Cash and cash equivalents $ 140,747 $ 140,747 Other current assets 699,627 699,627 Identifiable intangible assets 2,690,000 $ (21,700 ) 2,668,300 Other non-current assets 353,710 58,336 412,046 Equity method investments 25,791 25,791 Current liabilities (311,325 ) (311,325 ) Debt assumed (77,037 ) (77,037 ) Other liabilities (632,488 ) (71,793 ) (704,281 ) Redeemable noncontrolling interest (97,510 ) (5,700 ) (103,210 ) Noncontrolling interest (3,700 ) (3,700 ) Goodwill 4,243,079 40,857 4,283,936 Total Purchase Consideration $ 7,030,894 $ 7,030,894 The preliminary fair value purchase price allocation of the assets and liabilities acquired in the acquisition of Frutarom as reported in the fourth quarter of 2018 were updated during the six months ended June 30, 2019 primarily due to: (i) a $21.7 million decrease in the fair value of identifiable intangible assets (principally customer relationships and arising from the updated valuations for certain entities' fixed assets), (ii) a $58.3 million increase to property, plant and equipment (related to certain Frutarom entities), included in other non-current assets in the accompanying table, (iii) a $1.5 million increase to the noncurrent portion of earn-outs, (iv) a $70.5 million increase to deferred income tax liabilities and (v) a $5.7 million increase to redeemable noncontrolling interest. The cumulative impact of the adjustment resulted in a $40.9 million increase to goodwill. The measurement period adjustments did not have a material impact on the Company's Statement of Comprehensive Income for the first or second quarters of 2019. The preliminary amounts of the components of intangible assets with finite lives that have been recorded are as follows: (IN THOUSANDS) Estimated Amounts Weighted-Average Useful Life Product formula $ 290,000 10 to 12 years Customer relationships 2,230,000 18 to 23 years Trade names 140,000 23 to 26 years Favorable/Unfavorable Leases, net 8,300 5 to 15 years Total $ 2,668,300 Pro forma financial information The following unaudited pro forma financial information presents the combined results of operations of IFF and Frutarom as if the acquisition had been completed as of the beginning of the prior fiscal year, or January 1, 2018. The unaudited pro forma financial information is presented for informational purposes and is not indicative of the results of operations that would have been achieved if the acquisition and related borrowings had taken place on January 1, 2018, nor are they indicative of future results. The unaudited pro forma financial information for the three and six months ended June 30, 2018 included the pre-acquisition results of Frutarom for that period. The unaudited pro forma results were as follows: (IN THOUSANDS) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Unaudited pro forma net sales $ 1,321,321 $ 2,637,054 Unaudited pro forma net income attributable to the Company 102,269 214,889 The unaudited pro forma results for all periods presented include adjustments made to account for certain costs and transactions that would have been incurred had the acquisition been completed as of January 1, 2018, including amortization charges for acquired intangibles assets, amortization of inventory step-up, adjustments for depreciation expense for property, plant, and equipment, and adjustments to interest expense. These adjustments are net of any applicable tax impact and were included to arrive at the pro forma results above. |
Restructuring and Other Charges
Restructuring and Other Charges, Net | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges, Net | RESTRUCTURING AND OTHER CHARGES, NET Restructuring and other charges primarily consist of separation costs for employees including severance, outplacement and other benefit costs as well as costs related to plant closures, lease termination and other costs. Frutarom Integration Initiative In connection with the acquisition of Frutarom, the Company began to execute an integration plan that, among other initiatives, seeks to optimize its manufacturing network. As part of the Frutarom Integration Initiative, the Company expects to close approximately 35 manufacturing sites over the next two years with most of the closures targeted to occur before the end of fiscal 2020. During the six months ended June 30, 2019 , the Company announced the closure of four facilities in Europe, Africa and Middle East, one facility in North America and one in Greater Asia and incurred $5.1 million of costs, of which $1.5 million was for severance and the remainder comprising costs such as contract termination and relocation. 2019 Severance Charges During the six months ended June 30, 2019 , the Company incurred severance charges of $13.6 million related to approximately 190 headcount reductions, excluding those previously mentioned under the Frutarom Integration Initiative. The headcount reductions primarily related to the Scent business unit with additional amounts related to headcount reductions in all business units associated with the establishment of a new shared service center in Europe. The Company made payments of $3.6 million related to personnel costs during the six months ended June 30, 2019 . 2017 Productivity Program In connection with 2017 Productivity Program, the Company recorded $24.5 million of charges related to personnel costs and lease termination costs through 2019. The Company made payments of $0.6 million and $4.5 million related to personnel costs during the six months ended June 30, 2019 and 2018 , as well as lease termination costs for June 30, 2018 . Changes in restructuring liabilities during the six months ended June 30, 2019 , including the Frutarom Integration Initiative, 2019 Severance Charges and the 2017 Productivity Program, were as follows: (DOLLARS IN THOUSANDS) Employee-Related Costs Other Total Balance at December 31, 2018 $ 4,125 $ 1,075 $ 5,200 Additional charges, net 15,126 3,573 18,699 Payments (5,503 ) (1,150 ) (6,653 ) Balance at June 30, 2019 $ 13,748 $ 3,498 $ 17,246 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net Goodwill and Other Intangible Assets, Net (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill Movements in goodwill during 2019 were as follows: (DOLLARS IN THOUSANDS) Goodwill Balance at December 31, 2018 $ 5,378,388 Acquisitions (1) 86,702 Frutarom measurement period adjustment 40,857 Foreign exchange 370 Balance at June 30, 2019 $ 5,506,317 _______________________ (1) Additions relate to the 2019 Acquisition Activity. See Note 3 for details. Other Intangible Assets Other intangible assets, net consisted of the following amounts: June 30, December 31, (DOLLARS IN THOUSANDS) 2019 2018 Asset Type Customer relationships $ 2,650,432 $ 2,658,659 Trade names & patents 177,800 177,770 Technological know-how 470,294 451,016 Other 26,526 43,766 Total carrying value 3,325,052 3,331,211 Accumulated Amortization Customer relationships (229,103 ) (156,906 ) Trade names & patents (23,937 ) (19,593 ) Technological know-how (115,959 ) (93,051 ) Other (11,386 ) (22,339 ) Total accumulated amortization (380,385 ) (291,889 ) Other intangible assets, net $ 2,944,667 $ 3,039,322 Amortization Amortization expense was $47,909 and $9,584 for the three months ended June 30, 2019 and 2018 , respectively and $95,534 and $18,769 for the six months ended June 30, 2019 and 2018 , respectively. Amortization expense for the next five years and thereafter, based on preliminary valuations and determinations of useful lives, is expected to be as follows: (DOLLARS IN THOUSANDS) 2019 2020 2021 2022 2023 Estimated future intangible amortization expense $ 96,198 $ 185,650 $ 180,819 $ 176,863 $ 176,749 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets [Abstract] | |
Other Assets | OTHER ASSETS Other assets consisted of the following amounts: (DOLLARS IN THOUSANDS) June 30, 2019 December 31, 2018 Operating lease right-of-use assets $ 308,965 $ — Deferred income taxes 97,629 89,000 Overfunded pension plans 83,095 75,158 Cash surrender value of life insurance contracts 46,159 43,179 Other (a) 54,919 81,336 Total $ 590,767 $ 288,673 _______________________ (a) Includes land usage rights in China and long term deposits. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consisted of the following: (DOLLARS IN THOUSANDS) Effective Interest Rate June 30, 2019 December 31, 2018 2020 Notes (1) 3.69 % $ 298,954 $ 298,499 2021 Euro Notes (1) 0.82 % 338,505 337,704 2023 Notes (1) 3.30 % 298,850 298,698 2024 Euro Notes (1) 1.88 % 565,404 564,034 2026 Euro Notes (1) 1.93 % 902,063 899,886 2028 Notes (1) 4.57 % 396,535 396,377 2047 Notes (1) 4.44 % 493,361 493,151 2048 Notes (1) 5.12 % 785,890 785,788 Term Loan (1) 3.65 % 324,370 349,163 Amortizing Notes (1) 6.09 % 103,968 125,007 Bank overdrafts and other 4,949 4,695 Deferred realized gains on interest rate swaps 57 57 Total debt 4,512,906 4,553,059 Less: Short-term borrowings (2) (84,231 ) (48,642 ) Total Long-term debt $ 4,428,675 $ 4,504,417 _______________________ (1) Amount is net of unamortized discount and debt issuance costs. (2) Includes bank borrowings, overdrafts and current portion of long-term debt. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES During the quarter ended March 31, 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842),” which requires most leases to be recognized on the balance sheet. The Company adopted the standard using the modified retrospective approach with an effective date of December 29, 2018, the beginning of its 2019 fiscal year. Prior year financial statements were not recast. The Company elected various transition provisions available for expired or existing contracts, which allows the Company to carry forward historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. The Company leases property and equipment, principally under operating leases. In accordance with ASU 2016-02, the Company records a right-of-use asset and related obligation at the present value of lease payments and, over the term of the lease, depreciates the right-of-use asset and accretes the obligation to future value. Some of the leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. The Company does not separate lease and nonlease components of contracts. When available, the Company uses the rate implicit in the lease to discount lease payments to present value, however, most of the Company's leases do not provide a readily determinable implicit rate and the Company calculates the applicable incremental borrowing rate to discount the lease payments based on the term of the lease at lease commencement. The incremental borrowing rate is determined based on currency and lease terms. Certain leases contain variable payments which are periodically adjusted for changes in an index or rate. Such payments are initially measured using the index or rate at the commencement date and are included in the measurement of the lease liability. Subsequent changes in variable payments are not included in the lease liability, but are recognized in profit and loss during the period in which the obligation for those payments is incurred. The Company has operating leases for corporate offices, manufacturing facilities, research and development facilities, and certain transportation and office equipment, all of which are operating leases. The Company's leases have remaining lease terms of up to 40 years , some of which include options to extend the leases for up to 5 years . Upon adoption of the new guidance, the Company recorded a right-of-use asset of $308.3 million and total operating lease liabilities of $313.3 million . Additionally, the Company recorded a net increase to retained earnings of $23.1 million related to the elimination of deferred gains on certain sale-leaseback transactions that occurred in prior years. The components of lease expense were as follows: Three Months Ended Six Months Ended (DOLLARS IN THOUSANDS) June 30, 2019 June 30, 2019 Operating lease cost $ 13,337 $ 25,806 Supplemental cash flow information related to leases was as follows: Six Months Ended (DOLLARS IN THOUSANDS) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 24,363 Supplemental balance sheet information related to leases was as follows: (DOLLARS IN THOUSANDS) June 30, 2019 Operating Leases Operating lease right-of-use assets (1) $ 308,965 Other current liabilities (2) 39,638 Operating lease liabilities (3) 274,492 Total operating lease liabilities $ 314,130 _______________________ (1) Presented in Other assets in the Consolidated Balance Sheet. (2) Presented in Other current liabilities in the Consolidated Balance Sheet. (3) Presented in Other liabilities in the Consolidated Balance Sheet. Weighted average remaining lease term and discount rate were as follows: Weighted Average Remaining Lease Term (in years) Weighted Average Discount Rate Operating leases 11.8 3.18 % Maturities of lease liabilities were as follows: (DOLLARS IN THOUSANDS) June 30, 2019 Less than 1 Year $ 36,096 1-3 Years 80,054 3-5 Years 66,120 After 5 years 218,471 Less: Imputed Interest (86,611 ) Total $ 314,130 Maturities of lease liabilities, as calculated prior to the adoption of ASU 2016-02, were as follows: (DOLLARS IN THOUSANDS) December 31, 2018 Less than 1 Year $ 49,350 1-3 Years 78,600 3-5 Years 60,672 After 5 years 201,079 Total $ 389,701 Right-of-use assets by region were as follows: (DOLLARS IN THOUSANDS) June 30, 2019 North America $ 145,533 Europe, Africa and Middle East 125,806 Greater Asia 22,792 Latin America 14,834 Consolidated $ 308,965 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Uncertain Tax Positions As of June 30, 2019 , the Company had $46.9 million of unrecognized tax benefits recorded in Other liabilities. If these unrecognized tax benefits were recognized, the effective tax rate would be affected. At June 30, 2019 , the Company had accrued interest and penalties of $3.4 million classified in Other liabilities. As of June 30, 2019 , the Company’s aggregate provisions for uncertain tax positions, including interest and penalties, was $50.3 million associated with various tax positions asserted in various jurisdictions, none of which is individually material. The Company regularly repatriates earnings from non-U.S. subsidiaries. In the fourth quarter of 2018, the Company changed its assertion as part of its final analysis under SAB 118, consistent with the Company’s need to repatriate funds for debt repayment purposes. As the Company repatriates these funds to the U.S., they will be required to pay income taxes in certain U.S. states and applicable foreign withholding taxes during the period when such repatriation occurs. Accordingly, as of June 30, 2019 , the Company had a deferred tax liability of $85.8 million for the effect of repatriating the funds to the U.S. This balance consisted of $42.1 million attributable to IFF non-U.S. subsidiaries, and $43.7 million associated with Frutarom which is still preliminary and will be refined through the purchase accounting measurement period. The Company has ongoing income tax audits and legal proceedings which are at various stages of administrative or judicial review. In addition, the Company has open tax years with various taxing jurisdictions that range primarily from 2009 to 2018. Based on currently available information, the Company does not believe the ultimate outcome of any of these tax audits and other tax positions related to open tax years, when finalized, will have a material impact on its results of operations. The Company also has other ongoing tax audits and legal proceedings that relate to indirect taxes, such as value-added taxes, sales and use taxes and property taxes, which are discussed in Note 15 . Effective Tax Rate The effective tax rate for the three months ended June 30, 2019 was 18.1% compared with 18.7% for the three months ended June 30, 2018 . The quarter-over-quarter decrease was largely due to a more favorable mix of earnings (including the impact of integration related costs, restructuring charges and Frutarom acquisition related costs), partially offset by higher repatriation costs and the absence of the remeasurement of loss provisions which benefited the second quarter of 2018. The effective tax rate for the six months ended June 30, 2019 was 17.8% compared with 18.6% for the six months ended June 30, 2018 |
Stock Compensation Plans
Stock Compensation Plans | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | STOCK COMPENSATION PLANS The Company has various plans under which its officers, senior management, other key employees and directors may be granted equity-based awards. Equity awards outstanding under the plans include PRSUs, restricted stock units (RSUs), SSARs and Long-Term Incentive Plan awards. Liability-based awards outstanding under the plans are cash-settled RSUs. Stock-based compensation expense and related tax benefits were as follows: Three Months Ended June 30, Six Months Ended June 30, (DOLLARS IN THOUSANDS) 2019 2018 2019 2018 Equity-based awards $ 10,696 $ 7,554 $ 18,300 $ 15,174 Liability-based awards 2,061 242 2,791 397 Total stock-based compensation expense 12,757 7,796 21,091 15,571 Less: Tax benefit (2,141 ) (1,335 ) (3,523 ) (2,898 ) Total stock-based compensation expense, after tax $ 10,616 $ 6,461 $ 17,568 $ 12,673 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company is currently organized into three reportable operating segments, Taste, Scent and Frutarom; these segments align with the internal structure used to manage these businesses. Taste is comprised of Flavor Compounds which are sold to the food and beverage industries for use in consumer products such as prepared foods, beverages, dairy, food and sweet products. Scent is comprised of (1) Fragrance Compounds, which are ultimately used by our customers in two broad categories: Fine Fragrances, including perfumes and colognes, and Consumer Fragrances, including fragrance compounds for personal care (e.g., soaps), household products (e.g., detergents and cleaning agents) and beauty care, including toiletries; (2) Fragrance Ingredients, consisting of synthetic and natural ingredients that can be combined with other materials to create unique fine fragrance and consumer compounds; and (3) Cosmetic Active Ingredients, consisting of active and functional ingredients, botanicals and delivery systems to support our customers’ cosmetic and personal care product lines. Major fragrance customers include the cosmetics industry, including perfume and toiletries manufacturers, and the household products industry, including manufacturers of soaps, detergents, fabric care, household cleaners and air fresheners. Frutarom creates and manufactures a naturals-focused suite of flavor compounds, functional foods and specialty fine ingredients, largely targeting small, local and regional customers. Frutarom’s products are focused on three principal areas: (1) Savory Solutions, (2) Natural Product Solutions, which includes natural health ingredients, natural color and natural food protection, and (3) Taste Solutions. The Company's Chief Operating Decision Maker evaluates the performance of these reportable operating segments based on segment profit which is defined as operating profit before restructuring, global expenses (as discussed below) and certain non-recurring items, Interest expense, Other income (expense), net and Taxes on income. The Global expenses caption represents corporate and headquarter-related expenses which include legal, finance, human resources, certain incentive compensation expenses and other R&D and administrative expenses that are not allocated to individual reportable operating segments. Reportable segment information was as follows: Three Months Ended Six Months Ended June 30, June 30, (DOLLARS IN THOUSANDS) 2019 2018 2019 2018 Net sales: Taste $ 434,179 $ 450,540 $ 878,781 $ 899,559 Scent 475,671 469,476 964,023 951,385 Frutarom 381,718 — 746,166 — Consolidated $ 1,291,568 $ 920,016 $ 2,588,970 $ 1,850,944 Segment profit: Taste $ 98,081 $ 109,605 $ 206,536 $ 221,169 Scent 91,244 80,780 177,059 174,056 Frutarom 37,493 — 66,584 — Global expenses (12,886 ) (20,572 ) (31,559 ) (44,398 ) Operational Improvement Initiatives (a) (534 ) (403 ) (940 ) (1,429 ) Acquisition Related Costs (b) — 4 — 518 Integration Related Costs (c) (11,417 ) (993 ) (26,314 ) (993 ) Restructuring and Other Charges, net (d) (2,525 ) (193 ) (18,699 ) (910 ) Losses on Sale of Assets (952 ) (1,264 ) (764 ) (1,195 ) FDA Mandated Product Recall (e) — — — (5,000 ) Frutarom Acquisition Related Costs (f) 1,433 (12,455 ) (8,096 ) (12,455 ) Operating profit 199,937 154,509 363,807 329,363 Interest expense (32,593 ) (53,246 ) (69,165 ) (69,841 ) Other income (expense) 2,137 20,655 9,415 21,232 Income before taxes $ 169,481 $ 121,918 $ 304,057 $ 280,754 (a) Represents accelerated depreciation related to a plant relocation in India and China, as well as a lab closure in Taiwan for 2018. (b) For 2018, represents adjustments to the contingent consideration payable for PowderPure, and transaction costs related to (c) For 2019, represents costs related to the integration of the Frutarom acquisition, principally advisory services. For 2018, represents costs related to the integration of David Michael. (d) For 2019, represents severance costs related primarily to Scent. For 2018, represents severance costs related to the 2017 Productivity Program. (e) Represents losses related to the FDA mandated recall. (f) Represents transaction-related costs and expenses related to the acquisition of Frutarom, including adjustments that reduce the contingent consideration payable related to certain acquisitions made by Frutarom. For 2019, amount primarily includes $2.3 million of adjustments to the contingent consideration payable for the three months ended June 30, 2019 and $7.9 million of amortization for inventory "step-up" costs in the six months ended June 30, 2019. For 2018, amount includes $12.5 million of transaction costs included in administrative expenses. Net sales are attributed to individual regions based upon the destination of product delivery are as follows: Three Months Ended June 30, Six Months Ended June 30, (DOLLARS IN THOUSANDS) 2019 2018 2019 2018 Europe, Africa and Middle East $ 528,094 $ 292,848 $ 1,057,700 $ 602,161 Greater Asia 293,257 242,221 581,219 485,779 North America 293,918 249,054 594,977 490,199 Latin America 176,299 135,893 355,074 272,805 Consolidated $ 1,291,568 $ 920,016 $ 2,588,970 $ 1,850,944 Net sales related to the U.S. for the three months ended June 30, 2019 and 2018 were $268.3 million and $234.1 million , respectively and for the six months ended June 30, 2019 and 2018 were $541.1 million and $464.3 million , respectively. Net sales attributed to all foreign countries in total for the three months ended June 30, 2019 and 2018 were $1.0 billion and $685.9 million , respectively and for the six months ended June 30, 2019 and 2018 were $2.0 billion and $1.4 billion , respectively. No non-U.S. country had net sales in any period presented greater than 6% of total consolidated net sales. Pending change in Reportable Operating Segments and Reporting Units During the second quarter of 2019, the Company announced that it will be reorganizing its business unit structure into three segments: Taste, Scent and Nutrition & Ingredients. Under the new organization, two parts of the existing Frutarom segment will be included within the existing Taste business unit and a third business unit, Nutrition & Ingredients, will be created that will contain substantially all of the remaining parts of the existing Frutarom business unit. The Company expects to implement the new organizational structure over the next six to nine months. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | EMPLOYEE BENEFITS Pension and other defined contribution retirement plan expenses included the following components: (DOLLARS IN THOUSANDS) U.S. Plans Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Service cost for benefits earned (1) $ 474 $ 596 $ 948 $ 1,192 Interest cost on projected benefit obligation (2) 5,453 4,790 10,906 9,580 Expected return on plan assets (2) (6,983 ) (7,740 ) (13,966 ) (15,479 ) Net amortization and deferrals (2) 1,276 1,549 2,551 3,098 Net periodic benefit (income) cost $ 220 $ (805 ) $ 439 $ (1,609 ) (DOLLARS IN THOUSANDS) Non-U.S. Plans Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Service cost for benefits earned (1) $ 4,873 $ 4,470 $ 9,746 $ 8,939 Interest cost on projected benefit obligation (2) 4,435 4,338 8,870 8,675 Expected return on plan assets (2) (10,904 ) (12,032 ) (21,808 ) (24,064 ) Net amortization and deferrals (2) 2,922 2,972 5,844 5,943 Net periodic benefit (income) cost $ 1,326 $ (252 ) $ 2,652 $ (507 ) _______________________ (1) Included as a component of Operating Profit. (2) Included as a component of Other Income (Expense), net. The Company expects to contribute a total of $4.2 million to its U.S. pension plans and a total of $19.3 million to its Non-U.S. Plans during 2019 . During the six months ended June 30, 2019 , no contributions were made to the qualified U.S. pension plans, $8.3 million of contributions were made to the non-U.S. pension plans, and $2.2 million of benefit payments were made with respect to the Company's non-qualified U.S. pension plan. Expense recognized for postretirement benefits other than pensions included the following components: Three Months Ended June 30, Six Months Ended June 30, (DOLLARS IN THOUSANDS) 2019 2018 2019 2018 Service cost for benefits earned $ 148 $ 196 $ 296 $ 391 Interest cost on projected benefit obligation 578 654 1,156 1,308 Net amortization and deferrals (1,195 ) (1,189 ) (2,389 ) (2,378 ) Total postretirement benefit income $ (469 ) $ (339 ) $ (937 ) $ (679 ) The Company expects to contribute $3.9 million to its postretirement benefits other than pension plans during 2019 . In the six months ended June 30, 2019 , $1.8 million of contributions were made. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS Fair Value Accounting guidance on fair value measurements specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs create the following fair value hierarchy: • Level 1 — Quoted prices for identical instruments in active markets. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable . This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company determines the fair value of structured liabilities (where performance is linked to structured interest rates, inflation or currency risks) using the London Interbank Offer Rate ("LIBOR") swap curve and forward interest and exchange rates at period end. Such instruments are classified as Level 2 based on the observability of significant inputs to the model. The Company does not have any instruments classified as Level 3, other than those included in pension asset trusts as discussed in Note 16 of our 2018 Form 10-K. These valuations take into consideration the Company's credit risk and its counterparties’ credit risk. The estimated change in the fair value of these instruments due to such changes in its own credit risk (or instrument-specific credit risk) was immaterial as of June 30, 2019 . The carrying values and the estimated fair values of financial instruments at June 30, 2019 and December 31, 2018 consisted of the following: June 30, 2019 December 31, 2018 (DOLLARS IN THOUSANDS) Carrying Value Fair Value Carrying Value Fair Value LEVEL 1 Cash and cash equivalents (1) $ 426,717 $ 426,717 $ 634,897 $ 634,897 LEVEL 2 Credit facilities and bank overdrafts (2) 4,949 4,949 4,695 4,695 Derivatives Derivative assets — 14,353 — 7,229 Derivative liabilities — 6,342 — 6,907 Long-term debt: (3) 2020 Notes 298,954 303,208 298,499 300,356 2021 Euro Notes 338,505 344,904 337,704 341,094 2023 Notes 298,850 304,471 298,698 293,017 2024 Euro Notes 565,404 605,769 564,034 584,129 2026 Euro Notes 902,063 967,456 899,886 909,439 2028 Notes 396,535 435,181 396,377 401,231 2047 Notes 493,361 505,988 493,151 446,725 2048 Notes 785,890 887,584 785,788 783,925 Term Loan (2) 324,370 325,000 349,163 350,000 Amortizing Notes (4) 103,968 106,715 125,007 127,879 _______________________ (1) The carrying amount approximates fair value due to the short maturity of those instruments. (2) The carrying amount approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments. (3) The fair value of the Company's long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on its own credit risk. (4) The fair value of the Amortizing Notes of the TEUs is based on the most recently quoted price for the outstanding securities, adjusted for any known significant deviation in value. The estimated fair value of these long-term obligations is not necessarily indicative of the amount that would be realized in a current market exchange. Derivatives The Company periodically enters into foreign currency forward contracts with the objective of reducing exposure to cash flow volatility associated with its intercompany loans, foreign currency receivables and payables, and anticipated purchases of certain raw materials used in operations. These contracts generally involve the exchange of one currency for a second currency at a future date, have maturities not exceeding twelve months and are with counterparties which are major international financial institutions. In prior years, the Company entered into several forward currency contracts which qualified as cash flow hedges. The objective of these hedges is to protect against the currency risk associated with forecasted U.S. dollar ("USD") denominated raw material purchases made by Euro ("EUR") functional currency entities which result from changes in the EUR/USD exchange rate. The change in the value of the cash flow hedges is recorded in OCI as a component of gains/(losses) on derivatives qualifying as hedges in the accompanying Consolidated Statement of Income and Comprehensive Income. Realized gains/(losses) in AOCI related to cash flow hedges of raw material purchases are recognized as a component of Cost of goods sold in the accompanying Consolidated Statement of Income and Comprehensive Income in the same period as the related costs are recognized. In prior years, the Company designated the 2021 Euro Notes, 2024 Euro Notes and 2026 Euro Notes as a hedge of a portion of its net investment in Euro functional currency subsidiaries. Accordingly, the change in the value of the debt that is attributable to foreign exchange movements is recorded in OCI as a component of Foreign currency translation adjustments in the accompanying Consolidated Statement of Income and Comprehensive Income. In prior years, the Company entered into certain cross currency swaps which qualified as net investment hedges in order to mitigate a portion of its net European investments from foreign currency risk. Changes in fair value related to cross currency swaps are recorded in OCI as a component of the Foreign currency translation adjustments. In prior years, the Company entered into interest rate swap agreements to hedge the anticipated issuance of fixed-rate debt, which are designated as cash flow hedges. The amount of gains and losses realized upon termination of these agreements is amortized over the life of the corresponding debt issuance. The following table shows the notional amount of the Company’s derivative instruments outstanding as of June 30, 2019 and December 31, 2018 : (DOLLARS IN THOUSANDS) June 30, 2019 December 31, 2018 Foreign currency contracts $ 394,538 $ 585,581 Cross currency swaps 600,000 600,000 The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected in the Consolidated Balance Sheet as of June 30, 2019 and December 31, 2018 : June 30, 2019 (DOLLARS IN THOUSANDS) Fair Value of Fair Value of Total Fair Value Derivative assets (a) Foreign currency contracts $ 1,745 $ 388 $ 2,133 Cross currency swaps 12,220 — 12,220 $ 13,965 $ 388 $ 14,353 Derivative liabilities (b) Foreign currency contract $ 506 $ 5,836 $ 6,342 December 31, 2018 (DOLLARS IN THOUSANDS) Fair Value of Fair Value of Total Fair Value Derivative assets (a) Foreign currency contracts $ 4,122 $ 2,020 $ 6,142 Cross currency swaps 1,087 — 1,087 $ 5,209 $ 2,020 $ 7,229 Derivative liabilities (b) Foreign currency contracts $ 205 $ 6,702 $ 6,907 _______________________ (a) Derivative assets are recorded to Prepaid expenses and Other assets in the Consolidated Balance Sheet. (b) Derivative liabilities are recorded as Other current liabilities in the Consolidated Balance Sheet. The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statement of Income and Comprehensive Income for the three and six months ended June 30, 2019 and 2018 (in thousands): Amount of Gain (Loss) Location of Gain (Loss) Recognized in Income on Derivative (DOLLARS IN THOUSANDS) Three Months Ended June 30, 2019 2018 Foreign currency contracts (1) $ (3,932 ) $ 4,685 Other (income) expense, net Deal contingent swaps (2) Foreign currency contracts — 10,979 Other income, net Interest rate swaps — (24,937 ) Interest expense Total (3,932 ) (9,273 ) Amount of Gain (Loss) Location of Gain (Loss) Recognized in Income on Derivative Six Months Ended June 30, (DOLLARS IN THOUSANDS) 2019 2018 Foreign currency contracts (1) $ (3,006 ) $ 1,070 Other income, net Deal contingent swaps (2) Foreign currency contracts — 10,979 Other income, net Interest rate swaps — (24,937 ) Interest expense Total $ (3,006 ) $ (12,888 ) _______________________ (1) The foreign currency contract net gains (losses) offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods. (2) In the second quarter of 2018, the Company entered into a foreign currency contract and two interest rate swap agreements, which were contingent upon the closing of the Frutarom acquisition. The following table shows the effect of the Company’s derivative and non-derivative instruments designated as cash flow and net investment hedging instruments, net of tax, in the Consolidated Statement of Income and Comprehensive Income for the three and six months ended June 30, 2019 and 2018 (in thousands): Amount of Gain (Loss) Recognized in OCI on Derivative Location of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended June 30, Three Months Ended June 30, 2019 2018 2019 2018 Derivatives in Cash Flow Hedging Relationships: Foreign currency contracts $ (2,539 ) $ 10,241 Cost of goods sold $ 2,322 $ (2,330 ) Interest rate swaps (1) 216 216 Interest expense (216 ) (216 ) Derivatives in Net Investment Hedging Relationships: Foreign currency contracts — 178 N/A — — Cross currency swaps (3,904 ) — N/A — — Non-Derivatives in Net Investment Hedging Relationships: 2024 Euro Notes (4,823 ) 28,682 N/A — — 2021 Euro Notes & 2026 Euro Notes (10,611 ) — N/A — — Total $ (21,661 ) $ 39,317 $ 2,106 $ (2,546 ) Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) Location of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) Six Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Derivatives in Cash Flow Hedging Relationships: Foreign currency contracts $ (2,850 ) $ 9,498 Cost of goods sold $ 4,695 $ (4,523 ) Interest rate swaps (1) 432 432 Interest expense (432 ) (432 ) Derivatives in Net Investment Hedging Relationships: Foreign currency contracts — (518 ) N/A — — Cross currency swaps 7,312 — N/A — — Non-Derivatives in Net Investment Hedging Relationships: 2024 Euro Notes (617 ) 12,705 N/A — — 2021 Euro Notes & 2026 Euro Notes (1,358 ) — N/A — — Total $ 2,919 $ 22,117 $ 4,263 $ (4,955 ) _______________________ (1) Interest rate swaps were entered into as pre-issuance hedges for bond offerings. The ineffective portion of the above noted cash flow hedges were not material during the three and six months ended June 30, 2018 . The Company expects that $5.7 million (net of tax) of derivative gain included in AOCI at June 30, 2019 , based on current market rates, will be reclassified into earnings within the next 12 months. The majority of this amount will vary due to fluctuations in foreign currency exchange rates. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present changes in the accumulated balances for each component of other comprehensive income, including current period other comprehensive income and reclassifications out of accumulated other comprehensive income: (DOLLARS IN THOUSANDS) Foreign Currency Translation Adjustments Gains on Derivatives Qualifying as Hedges Pension and Postretirement Liability Adjustment Total Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2018 $ (396,996 ) $ 4,746 $ (309,977 ) $ (702,227 ) OCI before reclassifications 28,363 4,581 — 32,944 Amounts reclassified from AOCI — (4,263 ) 5,187 924 Net current period other comprehensive income (loss) 28,363 318 5,187 33,868 Accumulated other comprehensive (loss) income, net of tax, as of June 30, 2019 $ (368,633 ) $ 5,064 $ (304,790 ) $ (668,359 ) (DOLLARS IN THOUSANDS) Foreign Currency Translation Adjustments Losses on Derivatives Qualifying as Hedges Pension and Postretirement Liability Adjustment Total Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2017 $ (297,416 ) $ (10,332 ) $ (329,734 ) $ (637,482 ) OCI before reclassifications (70,461 ) 4,971 186 (65,304 ) Amounts reclassified from AOCI — 4,955 5,333 10,288 Net current period other comprehensive income (loss) (70,461 ) 9,926 5,519 (55,016 ) Accumulated other comprehensive (loss) income, net of tax, as of June 30, 2018 $ (367,877 ) $ (406 ) $ (324,215 ) $ (692,498 ) The following table provides details about reclassifications out of accumulated other comprehensive income to the Consolidated Statement of Income and Comprehensive Income: Six Months Ended June 30, Affected Line Item in the (DOLLARS IN THOUSANDS) 2019 2018 Gains (losses) on derivatives qualifying as hedges Foreign currency contracts $ 5,365 $ (5,169 ) Cost of goods sold Interest rate swaps (432 ) (432 ) Interest expense Tax (670 ) 646 Provision for income taxes Total $ 4,263 $ (4,955 ) Total, net of income taxes Losses on pension and postretirement liability adjustments Prior service cost $ 3,328 $ 3,543 (a) Actuarial losses (9,335 ) (10,206 ) (a) Tax 820 1,330 Provision for income taxes Total $ (5,187 ) $ (5,333 ) Total, net of income taxes _______________________ (a) The amortization of prior service cost and actuarial loss is included in the computation of net periodic benefit cost. Refer to Note 16 of our 2018 Form 10-K for additional information regarding net periodic benefit cost. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees and Letters of Credit The Company has various bank guarantees and letters of credit which are available for use to support its ongoing business operations and to satisfy governmental requirements associated with pending litigation in various jurisdictions. At June 30, 2019 , the Company had total bank guarantees and standby letters of credit of $58.7 million with various financial institutions. Included in the above aggregate amount was a total of $17.7 million for other assessments in Brazil for various income tax and indirect tax disputes related to fiscal years 1998-2011. There were no material amounts utilized under the standby letters of credit as of June 30, 2019 . In order to challenge the assessments in these cases in Brazil, the Company has been required to, and has separately pledged assets, principally property, plant and equipment, to cover assessments in the amount of $10.1 million as of June 30, 2019 . Lines of Credit The Company has various lines of credit which are available to support its ongoing business operations. As of June 30, 2019 , the Company had available lines of credit of $107.6 million with various financial institutions, in addition to the $1.0 billion of capacity under the Amended Credit Facility. There were no material amounts drawn down pursuant to these lines of credit as of June 30, 2019 . Litigation The Company assesses contingencies related to litigation and/or other matters to determine the degree of probability and range of possible loss. A loss contingency is accrued in the Company’s Consolidated Financial Statements if it is probable that a liability will be incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly sensitive and requires judgments about future events. On at least a quarterly basis, the Company reviews contingencies related to litigation to determine the adequacy of accruals. The amount of ultimate loss may differ from these estimates and further events may require the Company to increase or decrease the amounts it has accrued on any matter. Periodically, the Company assesses its insurance coverage for all known claims, where applicable, taking into account aggregate coverage by occurrence, limits of coverage, self-insured retentions and deductibles, historical claims experience and claims experience with its insurance carriers. The liabilities are recorded at management’s best estimate of the probable outcome of the lawsuits and claims, taking into consideration the facts and circumstances of the individual matters as well as past experience on similar matters. At each balance sheet date, the key issues that management assesses are whether it is probable that a loss as to asserted or unasserted claims will be incurred and if so, whether the amount of loss can be reasonably estimated. The Company records the expected liability with respect to claims in Other liabilities and expected recoveries from its insurance carriers in Other assets. The Company recognizes a receivable when it believes that realization of the insurance receivable is probable under the terms of the insurance policies and its payment experience to date. Environmental Over the past 20 years, various federal and state authorities and private parties have claimed that the Company is a Potentially Responsible Party (“PRP”) as a generator of waste materials for alleged pollution at a number of waste sites operated by third parties located principally in New Jersey and have sought to recover costs incurred and to be incurred to clean up the sites. The Company has been identified as a PRP at seven facilities operated by third parties at which investigation and/or remediation activities may be ongoing. The Company analyzes potential liability on at least a quarterly basis and accrues for environmental liabilities when they are probable and estimable. The Company estimates its share of the total future cost for these sites to be less than $3 million . While joint and several liability is authorized under federal and state environmental laws, the Company believes the amounts it has paid and anticipates paying in the future for clean-up costs and damages at all sites are not and will not have a material adverse effect on its financial condition, results of operations or liquidity. This assessment is based upon, among other things, the involvement of other PRPs at most of the sites, the status of the proceedings, including various settlement agreements and consent decrees, and the extended time period over which payments will likely be made. There can be no assurance, however, that future events will not require the Company to materially increase the amounts it anticipates paying for clean-up costs and damages at these sites, and that such increased amounts will not have a material adverse effect on its financial condition, results of operations or cash flows. China Facilities Guangzhou Taste plant During the fourth quarter of 2016, the Company was notified that certain governmental authorities have begun to evaluate a change in the zoning of the Guangzhou Taste plant. The zoning, if changed, would prevent the Company from continuing to manufacture product at the existing plant. The ultimate outcome of any change that the governmental authorities may propose, the timing of such a change, and the nature of any compensation arrangements that might be provided to the Company are uncertain. To address the governmental authorities' requirements, the Company has begun to move production from the Guangzhou Taste plant to a newly built facility in Zhangjiagang. The net book value of the plant in Guangzhou was approximately $64 million as of June 30, 2019 . Guangzhou Scent plant During the second quarter of 2019, the Company was notified that certain governmental authorities had changed the zoning where the Guangzhou Scent plant is located. The zoning change did not affect the current operations but prevents expansions or other increases in the operating capacity of the plant. The Company believes that it is possible that the zoning may change in the future such that it would not be able to continue manufacturing at the existing site. The ultimate outcome of any change that the governmental authorities may propose, the timing of such a change, and the nature of any compensation arrangements that might be provided to the Company are uncertain. The net book value of the existing plant was approximately $9 million as of June 30, 2019 . Zhejiang Ingredients plant In the fourth quarter of 2017, the Company concluded discussions with the government regarding the relocation of its Fragrance Ingredients plant in Zhejiang and, based on the agreements reached, expects to receive total compensation payments up to approximately $50 million . The relocation compensation will be paid to the Company over the period of the relocation which is expected to be through the end of 2021. The Company received the first payment of $15 million in the fourth quarter of 2017. No additional amounts have been received since the fourth quarter of 2017. The net book value of the current plant was approximately $19 million as of June 30, 2019 . The Company relocated approximately half of the production capacity of the facility during the first half of 2019 and the remainder of the production capacity is expected to be relocated by the end of 2019. Total China Operations The total net book value of all eight plants in China was approximately $200 million as of June 30, 2019 . If the Company is required to close a plant, or operate one at significantly reduced production levels on a permanent basis, the Company may be required to record charges that could have a material impact on its consolidated financial results of operations, financial position and cash flows in future periods. Other Contingencies The Company has contingencies involving third parties (such as labor, contract, technology or product-related claims or litigation) as well as government-related items in various jurisdictions in which it operates pertaining to such items as value-added taxes, other indirect taxes, customs and duties and sales and use taxes. It is possible that cash flows or results of operations, in any period, could be materially affected by the unfavorable resolution of one or more of these contingencies. The most significant government-related contingencies exist in Brazil. With regard to the Brazilian matters, the Company believes it has valid defenses for the underlying positions under dispute; however, in order to pursue these defenses, the Company is required to, and has provided, bank guarantees and pledged assets in the aggregate amount of $27.8 million . The Brazilian matters take an extended period of time to proceed through the judicial process and there are a limited number of rulings to date. During 2018, the Company received an unfavorable ruling with respect to a claim related to potentially unpaid excise taxes from 1993. Based on the revised ruling, the Company has determined that it is now probable that it will have to pay the original claim in addition to penalties and interest. The total amount of the claim that has been recorded is $4.8 million . Ongoing Investigations During the integration of Frutarom, IFF was made aware of allegations that two Frutarom businesses operating principally in Russia and Ukraine made certain improper payments, including to representatives of a number of customers. IFF promptly commenced investigations of such allegations with the assistance of outside legal and accounting firms. IFF’s investigations are not yet complete, but preliminary results indicate that improper payments to representatives of customers were made and that key members of Frutarom’s senior management at the time were aware of such payments. IFF has not uncovered any evidence suggesting that such payments had any connection to the United States. Based on the results of the investigations to date, IFF believes that such improper customer payments are no longer being made and the estimated affected sales represented less than 1% of IFF’s and Frutarom’s combined net sales for 2018. IFF does not believe the impact from these matters is or will be material to IFF’s results of operations or financial condition. The costs arising from these matters, however, could be material in a particular fiscal quarter. Although the investigations are continuing, based on the results to date and other compliance-related integration activities IFF is not currently aware of similar instances of misconduct. FDA-Mandated Product Recall The Company periodically incurs product liability claims based on product that is sold to customers that may be defective or otherwise not in accordance with the customer’s requirements. In the first quarter of 2017, the Company was made aware of a claim for product that was subject to an FDA-mandated product recall. As of June 30, 2019 , the Company had recorded total charges of $17.5 million with respect to this claim, of which $5.0 million was recorded in the three months ended March 31, 2018. The Company settled the claim with the customer in the first quarter of 2018 for a total of $16.0 million , of which $3.0 million was paid in the fourth quarter of 2017 and $13.0 million was paid during the three months ended March 31, 2018. The Company does not believe that the ultimate settlement of the claim will have a material impact on its financial condition. In the third quarter of 2018, the Company received $13.1 million for the full and final settlement of its claim from the supplier and insurer for the affected product. Other The Company determines estimates of reasonably possible losses or ranges of reasonably possible losses in excess of related accrued liabilities, if any, when it has determined that either a loss is reasonably possible or a loss in excess of accrued amounts is reasonably possible and the amount of losses or range of losses is determinable. For all third party contingencies (including labor, contract, technology, tax, product-related claims and business litigation), the Company currently estimates that the aggregate range of reasonably possible losses in excess of any accrued liabilities is $0 to approximately $10 million . The estimates included in this amount are based on the Company’s analysis of currently available information and, as new information is obtained, these estimates may change. Due to the inherent subjectivity of the assessments and the unpredictability of outcomes of legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to the Company from the matters in question. Thus, the Company’s exposure and ultimate losses may be higher or lower, and possibly significantly so, than the amounts accrued or the range disclosed above. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | REDEEMABLE NONCONTROLLING INTERESTS Through certain subsidiaries of Frutarom, there are certain noncontrolling interests that carry redemption features. The noncontrolling interest holders have the right, over a stipulated period of time, to sell their respective interests to Frutarom, and Frutarom has the option to purchase these interests (subject to the same timing). These options carry identical price and conditions of exercise, and will be settled based on the multiple of the average EBITDA of consecutive quarters to be achieved during the period ending prior to the exercise date. The following table sets forth the details of the Company's redeemable noncontrolling interests: (DOLLARS IN THOUSANDS) Redeemable Noncontrolling Interests Balance at December 31, 2018 $ 81,806 Acquired through acquisitions during 2019 26,273 Impact of foreign exchange translation (783 ) Share of profit or loss attributable to redeemable noncontrolling interests 3,371 Redemption value mark-up for the current period 143 Measurement period adjustments 5,700 Dividends paid (432 ) Exercises of redeemable noncontrolling interests (538 ) Balance at June 30, 2019 $ 115,540 The increase in redeemable noncontrolling interests is primarily due to the interests acquired through acquisitions during the period, as discussed in Note 3. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These interim statements and related management’s discussion and analysis should be read in conjunction with the Consolidated Financial Statements and the related notes and management’s discussion and analysis of results of operations, liquidity and capital resources included in our 2018 Annual Report on Form 10-K (“ 2018 Form 10-K”). These interim statements are unaudited. The year-end balance sheet data included in this Form 10-Q was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America. We have historically operated and continue to operate on a 52/53 week fiscal year ending on the Friday closest to the last day of the quarter. For ease of presentation, June 30 and December 31 are used consistently throughout this Form 10-Q and these interim financial statements and related notes to represent the period-end dates. For the 2019 and 2018 quarters, the actual closing dates were June 28 and June 29, respectively. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. When used herein, the terms “IFF,” the “Company,” “we,” “us” and “our” mean International Flavors & Fragrances Inc. and its consolidated subsidiaries. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when control of the promised goods is transferred to its customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods. Sales, value add, and other taxes the Company collects are excluded from revenues. The Company receives payment in accordance with standard customer terms. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In October 2018, the FASB issued Accounting Standards Update ("ASU") 2018-16, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate ("SOFR") Overnight Index Swap ("OIS") Rate as a Benchmark Interest Rate for Hedge Accounting Purposes." The ASU allows for the use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for purposes of applying hedge accounting under ASC 815, Derivatives and Hedging. The Company applied this new guidance as of December 29, 2018, the first day of the Company’s 2019 fiscal year. The adoption of the guidance did not have a material impact on the Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).” The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This guidance is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans (Subtopic 715-20)", which modifies the disclosure requirements on company-sponsored defined benefit plans. The ASU is effective for fiscal years beginning after December 15, 2020 on a retrospective basis to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820)", which modifies, removes and adds certain disclosure requirements on fair value measurements. The ASU is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. The Company has determined that this guidance does not have an impact on its Consolidated Financial Statements, as the Company has no applicable fair value measurements that are affected by the guidance. In June 2018, the FASB issued ASU 2018-07, "Compensation - Stock Compensation (Topic 718)" intended to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments. This guidance expands the scope of Topic 718, Compensation-Stock Compensation which currently only includes share-based payments to employees to include share-based payments issued to nonemployees for goods or services. The Company applied this new guidance as of December 29, 2018, the first day of the Company’s 2019 fiscal year. The adoption of the guidance did not have a material impact on the Consolidated Financial Statements. In February 2018, FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" which allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act, in addition to requiring certain disclosures about stranded tax effects. The guidance was effective as of December 29, 2018, the first day of the Company's fiscal year. The Company has elected to not reclassify any stranded tax effects to retained earnings. In August 2017, FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" which eliminates the requirement to separately measure and present hedge ineffectiveness and aligns the presentation of hedge gains and losses with the underlying hedge item. This guidance is effective, and as required, has been applied on a modified retrospective basis. The impact of the adoption of this standard on December 29, 2018 was a decrease in the beginning balance of the currency translation adjustment component of Accumulated other comprehensive loss of $1.0 million , and an increase in Retained Earnings, as presented in the Company's Consolidated Balance Sheet. See Note 13 of the Consolidated Financial Statements for further details. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", with subsequent amendments, which requires issuers to measure expected credit losses for financial assets based on historical experience, current conditions and reasonable and supportable forecasts. As such, an entity will use forward-looking information to estimate credit losses. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", with subsequent amendments, which requires changes to the accounting for leases and supersedes existing lease guidance, including ASC 840 - Leases. See Note 8 for further details. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Contract Asset and Accounts Receivable | The following table reflects the balances in our contract assets and accounts receivable for the periods ended June 30, 2019 and December 31, 2018 : (DOLLARS IN THOUSANDS) June 30, 2019 December 31, 2018 Receivables (included in Trade receivables) $ 1,055,133 $ 946,938 Contract asset - Short term 1,095 487 |
Disaggregation of Revenue | The following table presents the Company's revenues disaggregated by product categories: Three Months Ended June 30, Six Months Ended June 30, (DOLLARS IN THOUSANDS) 2019 2018 2019 2018 Flavor Compounds $ 729,279 $ 450,540 $ 1,449,481 $ 899,559 Fragrance Compounds 375,696 372,034 764,807 750,666 Ingredients 186,593 97,442 374,682 200,719 Total revenues $ 1,291,568 $ 920,016 $ 2,588,970 $ 1,850,944 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares Used in Computation of Basic and Diluted Net Income Per Share | A reconciliation of the shares used in the computation of basic and diluted net income per share is as follows: Three Months Ended June 30, Six Months Ended June 30, (SHARES IN THOUSANDS) 2019 2018 2019 2018 Net Income Net income attributable to IFF stockholders $ 136,377 $ 99,149 $ 245,206 $ 228,564 Less: Increase in redemption value of redeemable noncontrolling interests in excess of earnings allocated (513 ) — (143 ) — Net income available to IFF stockholders $ 135,864 $ 99,149 $ 245,063 $ 228,564 Shares Weighted average common shares outstanding (basic) (1) 111,996 79,065 111,930 79,041 Adjustment for assumed dilution (2) : Stock options and restricted stock awards 424 238 393 306 SPC portion of TEUs 452 — 808 — Weighted average shares assuming dilution (diluted) 112,872 79,303 113,131 79,347 Net Income per Share Net income per share - basic $ 1.21 $ 1.25 $ 2.19 $ 2.89 Net income per share - diluted 1.20 1.25 2.16 2.87 _______________________ (1) For the three and six months ended June 30, 2019 , the tangible equity units (“TEUs”) were assumed to be outstanding at the minimum settlement amount for weighted-average shares for basic earnings per share. See below for details. (2) Effect of dilutive securities includes dilution under stock plans and incremental impact of TEUs. See below for details. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of assets acquired and liabilities assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed as of October 4, 2018: (IN THOUSANDS) As reported in the fourth quarter of 2018 Measurement period adjustments As reported in the second quarter of 2019 Cash and cash equivalents $ 140,747 $ 140,747 Other current assets 699,627 699,627 Identifiable intangible assets 2,690,000 $ (21,700 ) 2,668,300 Other non-current assets 353,710 58,336 412,046 Equity method investments 25,791 25,791 Current liabilities (311,325 ) (311,325 ) Debt assumed (77,037 ) (77,037 ) Other liabilities (632,488 ) (71,793 ) (704,281 ) Redeemable noncontrolling interest (97,510 ) (5,700 ) (103,210 ) Noncontrolling interest (3,700 ) (3,700 ) Goodwill 4,243,079 40,857 4,283,936 Total Purchase Consideration $ 7,030,894 $ 7,030,894 |
Schedule of intangible assets acquired | The preliminary amounts of the components of intangible assets with finite lives that have been recorded are as follows: (IN THOUSANDS) Estimated Amounts Weighted-Average Useful Life Product formula $ 290,000 10 to 12 years Customer relationships 2,230,000 18 to 23 years Trade names 140,000 23 to 26 years Favorable/Unfavorable Leases, net 8,300 5 to 15 years Total $ 2,668,300 |
Unaudited pro forma information | The unaudited pro forma results were as follows: (IN THOUSANDS) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Unaudited pro forma net sales $ 1,321,321 $ 2,637,054 Unaudited pro forma net income attributable to the Company 102,269 214,889 |
Restructuring and Other Charg_2
Restructuring and Other Charges, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Changes in Employee-Related Restructuring Liabilities | Changes in restructuring liabilities during the six months ended June 30, 2019 , including the Frutarom Integration Initiative, 2019 Severance Charges and the 2017 Productivity Program, were as follows: (DOLLARS IN THOUSANDS) Employee-Related Costs Other Total Balance at December 31, 2018 $ 4,125 $ 1,075 $ 5,200 Additional charges, net 15,126 3,573 18,699 Payments (5,503 ) (1,150 ) (6,653 ) Balance at June 30, 2019 $ 13,748 $ 3,498 $ 17,246 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Movements in Goodwill | Movements in goodwill during 2019 were as follows: (DOLLARS IN THOUSANDS) Goodwill Balance at December 31, 2018 $ 5,378,388 Acquisitions (1) 86,702 Frutarom measurement period adjustment 40,857 Foreign exchange 370 Balance at June 30, 2019 $ 5,506,317 _______________________ (1) Additions relate to the 2019 Acquisition Activity. See Note 3 for details. |
Schedule of Other Intangible Assets, Net | Other intangible assets, net consisted of the following amounts: June 30, December 31, (DOLLARS IN THOUSANDS) 2019 2018 Asset Type Customer relationships $ 2,650,432 $ 2,658,659 Trade names & patents 177,800 177,770 Technological know-how 470,294 451,016 Other 26,526 43,766 Total carrying value 3,325,052 3,331,211 Accumulated Amortization Customer relationships (229,103 ) (156,906 ) Trade names & patents (23,937 ) (19,593 ) Technological know-how (115,959 ) (93,051 ) Other (11,386 ) (22,339 ) Total accumulated amortization (380,385 ) (291,889 ) Other intangible assets, net $ 2,944,667 $ 3,039,322 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense for the next five years and thereafter, based on preliminary valuations and determinations of useful lives, is expected to be as follows: (DOLLARS IN THOUSANDS) 2019 2020 2021 2022 2023 Estimated future intangible amortization expense $ 96,198 $ 185,650 $ 180,819 $ 176,863 $ 176,749 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following amounts: (DOLLARS IN THOUSANDS) June 30, 2019 December 31, 2018 Operating lease right-of-use assets $ 308,965 $ — Deferred income taxes 97,629 89,000 Overfunded pension plans 83,095 75,158 Cash surrender value of life insurance contracts 46,159 43,179 Other (a) 54,919 81,336 Total $ 590,767 $ 288,673 _______________________ (a) Includes land usage rights in China and long term deposits. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Components of Debt | Debt consisted of the following: (DOLLARS IN THOUSANDS) Effective Interest Rate June 30, 2019 December 31, 2018 2020 Notes (1) 3.69 % $ 298,954 $ 298,499 2021 Euro Notes (1) 0.82 % 338,505 337,704 2023 Notes (1) 3.30 % 298,850 298,698 2024 Euro Notes (1) 1.88 % 565,404 564,034 2026 Euro Notes (1) 1.93 % 902,063 899,886 2028 Notes (1) 4.57 % 396,535 396,377 2047 Notes (1) 4.44 % 493,361 493,151 2048 Notes (1) 5.12 % 785,890 785,788 Term Loan (1) 3.65 % 324,370 349,163 Amortizing Notes (1) 6.09 % 103,968 125,007 Bank overdrafts and other 4,949 4,695 Deferred realized gains on interest rate swaps 57 57 Total debt 4,512,906 4,553,059 Less: Short-term borrowings (2) (84,231 ) (48,642 ) Total Long-term debt $ 4,428,675 $ 4,504,417 _______________________ (1) Amount is net of unamortized discount and debt issuance costs. (2) Includes bank borrowings, overdrafts and current portion of long-term debt. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease cost and other information | Weighted average remaining lease term and discount rate were as follows: Weighted Average Remaining Lease Term (in years) Weighted Average Discount Rate Operating leases 11.8 3.18 % The components of lease expense were as follows: Three Months Ended Six Months Ended (DOLLARS IN THOUSANDS) June 30, 2019 June 30, 2019 Operating lease cost $ 13,337 $ 25,806 Supplemental cash flow information related to leases was as follows: Six Months Ended (DOLLARS IN THOUSANDS) June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 24,363 |
Supplemental balance sheet information and leases by region | Supplemental balance sheet information related to leases was as follows: (DOLLARS IN THOUSANDS) June 30, 2019 Operating Leases Operating lease right-of-use assets (1) $ 308,965 Other current liabilities (2) 39,638 Operating lease liabilities (3) 274,492 Total operating lease liabilities $ 314,130 _______________________ (1) Presented in Other assets in the Consolidated Balance Sheet. (2) Presented in Other current liabilities in the Consolidated Balance Sheet. (3) Presented in Other liabilities in the Consolidated Balance Sheet. Right-of-use assets by region were as follows: (DOLLARS IN THOUSANDS) June 30, 2019 North America $ 145,533 Europe, Africa and Middle East 125,806 Greater Asia 22,792 Latin America 14,834 Consolidated $ 308,965 |
Maturities of lease liabilities | Maturities of lease liabilities were as follows: (DOLLARS IN THOUSANDS) June 30, 2019 Less than 1 Year $ 36,096 1-3 Years 80,054 3-5 Years 66,120 After 5 years 218,471 Less: Imputed Interest (86,611 ) Total $ 314,130 |
Maturities of lease liabilities, prior to adoption | Maturities of lease liabilities, as calculated prior to the adoption of ASU 2016-02, were as follows: (DOLLARS IN THOUSANDS) December 31, 2018 Less than 1 Year $ 49,350 1-3 Years 78,600 3-5 Years 60,672 After 5 years 201,079 Total $ 389,701 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense and Related Tax Benefits | Stock-based compensation expense and related tax benefits were as follows: Three Months Ended June 30, Six Months Ended June 30, (DOLLARS IN THOUSANDS) 2019 2018 2019 2018 Equity-based awards $ 10,696 $ 7,554 $ 18,300 $ 15,174 Liability-based awards 2,061 242 2,791 397 Total stock-based compensation expense 12,757 7,796 21,091 15,571 Less: Tax benefit (2,141 ) (1,335 ) (3,523 ) (2,898 ) Total stock-based compensation expense, after tax $ 10,616 $ 6,461 $ 17,568 $ 12,673 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Three Months Ended Six Months Ended June 30, June 30, (DOLLARS IN THOUSANDS) 2019 2018 2019 2018 Net sales: Taste $ 434,179 $ 450,540 $ 878,781 $ 899,559 Scent 475,671 469,476 964,023 951,385 Frutarom 381,718 — 746,166 — Consolidated $ 1,291,568 $ 920,016 $ 2,588,970 $ 1,850,944 Segment profit: Taste $ 98,081 $ 109,605 $ 206,536 $ 221,169 Scent 91,244 80,780 177,059 174,056 Frutarom 37,493 — 66,584 — Global expenses (12,886 ) (20,572 ) (31,559 ) (44,398 ) Operational Improvement Initiatives (a) (534 ) (403 ) (940 ) (1,429 ) Acquisition Related Costs (b) — 4 — 518 Integration Related Costs (c) (11,417 ) (993 ) (26,314 ) (993 ) Restructuring and Other Charges, net (d) (2,525 ) (193 ) (18,699 ) (910 ) Losses on Sale of Assets (952 ) (1,264 ) (764 ) (1,195 ) FDA Mandated Product Recall (e) — — — (5,000 ) Frutarom Acquisition Related Costs (f) 1,433 (12,455 ) (8,096 ) (12,455 ) Operating profit 199,937 154,509 363,807 329,363 Interest expense (32,593 ) (53,246 ) (69,165 ) (69,841 ) Other income (expense) 2,137 20,655 9,415 21,232 Income before taxes $ 169,481 $ 121,918 $ 304,057 $ 280,754 (a) Represents accelerated depreciation related to a plant relocation in India and China, as well as a lab closure in Taiwan for 2018. (b) For 2018, represents adjustments to the contingent consideration payable for PowderPure, and transaction costs related to (c) For 2019, represents costs related to the integration of the Frutarom acquisition, principally advisory services. For 2018, represents costs related to the integration of David Michael. (d) For 2019, represents severance costs related primarily to Scent. For 2018, represents severance costs related to the 2017 Productivity Program. (e) Represents losses related to the FDA mandated recall. (f) Represents transaction-related costs and expenses related to the acquisition of Frutarom, including adjustments that reduce the contingent consideration payable related to certain acquisitions made by Frutarom. For 2019, amount primarily includes $2.3 million of adjustments to the contingent consideration payable for the three months ended June 30, 2019 and $7.9 million of amortization for inventory "step-up" costs in the six months ended June 30, 2019. For 2018, amount includes $12.5 million of transaction costs included in administrative expenses. |
Net Sales by Destination of Product Delivery | Net sales are attributed to individual regions based upon the destination of product delivery are as follows: Three Months Ended June 30, Six Months Ended June 30, (DOLLARS IN THOUSANDS) 2019 2018 2019 2018 Europe, Africa and Middle East $ 528,094 $ 292,848 $ 1,057,700 $ 602,161 Greater Asia 293,257 242,221 581,219 485,779 North America 293,918 249,054 594,977 490,199 Latin America 176,299 135,893 355,074 272,805 Consolidated $ 1,291,568 $ 920,016 $ 2,588,970 $ 1,850,944 Net sales related to the U.S. for the three months ended June 30, 2019 and 2018 were $268.3 million and $234.1 million , respectively and for the six months ended June 30, 2019 and 2018 were $541.1 million and $464.3 million , respectively. Net sales attributed to all foreign countries in total for the three months ended June 30, 2019 and 2018 were $1.0 billion and $685.9 million , respectively and for the six months ended June 30, 2019 and 2018 were $2.0 billion and $1.4 billion , respectively. No non-U.S. country had net sales in any period presented greater than 6% of total consolidated net sales. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Defined Contribution Retirement Plan Expenses | Pension and other defined contribution retirement plan expenses included the following components: (DOLLARS IN THOUSANDS) U.S. Plans Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Service cost for benefits earned (1) $ 474 $ 596 $ 948 $ 1,192 Interest cost on projected benefit obligation (2) 5,453 4,790 10,906 9,580 Expected return on plan assets (2) (6,983 ) (7,740 ) (13,966 ) (15,479 ) Net amortization and deferrals (2) 1,276 1,549 2,551 3,098 Net periodic benefit (income) cost $ 220 $ (805 ) $ 439 $ (1,609 ) (DOLLARS IN THOUSANDS) Non-U.S. Plans Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Service cost for benefits earned (1) $ 4,873 $ 4,470 $ 9,746 $ 8,939 Interest cost on projected benefit obligation (2) 4,435 4,338 8,870 8,675 Expected return on plan assets (2) (10,904 ) (12,032 ) (21,808 ) (24,064 ) Net amortization and deferrals (2) 2,922 2,972 5,844 5,943 Net periodic benefit (income) cost $ 1,326 $ (252 ) $ 2,652 $ (507 ) _______________________ (1) Included as a component of Operating Profit. (2) Included as a component of Other Income (Expense), net. |
Postretirement Benefits Other Than Pension Expenses | Expense recognized for postretirement benefits other than pensions included the following components: Three Months Ended June 30, Six Months Ended June 30, (DOLLARS IN THOUSANDS) 2019 2018 2019 2018 Service cost for benefits earned $ 148 $ 196 $ 296 $ 391 Interest cost on projected benefit obligation 578 654 1,156 1,308 Net amortization and deferrals (1,195 ) (1,189 ) (2,389 ) (2,378 ) Total postretirement benefit income $ (469 ) $ (339 ) $ (937 ) $ (679 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, All Other Investments [Abstract] | |
Carrying Amount and Estimated Fair Values of Financial Instruments | The carrying values and the estimated fair values of financial instruments at June 30, 2019 and December 31, 2018 consisted of the following: June 30, 2019 December 31, 2018 (DOLLARS IN THOUSANDS) Carrying Value Fair Value Carrying Value Fair Value LEVEL 1 Cash and cash equivalents (1) $ 426,717 $ 426,717 $ 634,897 $ 634,897 LEVEL 2 Credit facilities and bank overdrafts (2) 4,949 4,949 4,695 4,695 Derivatives Derivative assets — 14,353 — 7,229 Derivative liabilities — 6,342 — 6,907 Long-term debt: (3) 2020 Notes 298,954 303,208 298,499 300,356 2021 Euro Notes 338,505 344,904 337,704 341,094 2023 Notes 298,850 304,471 298,698 293,017 2024 Euro Notes 565,404 605,769 564,034 584,129 2026 Euro Notes 902,063 967,456 899,886 909,439 2028 Notes 396,535 435,181 396,377 401,231 2047 Notes 493,361 505,988 493,151 446,725 2048 Notes 785,890 887,584 785,788 783,925 Term Loan (2) 324,370 325,000 349,163 350,000 Amortizing Notes (4) 103,968 106,715 125,007 127,879 _______________________ (1) The carrying amount approximates fair value due to the short maturity of those instruments. (2) The carrying amount approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments. (3) The fair value of the Company's long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on its own credit risk. (4) The fair value of the Amortizing Notes of the TEUs is based on the most recently quoted price for the outstanding securities, adjusted for any known significant deviation in value. The estimated fair value of these long-term obligations is not necessarily indicative of the amount that would be realized in a current market exchange. |
Derivative Instruments Notional Amount Outstanding | The following table shows the notional amount of the Company’s derivative instruments outstanding as of June 30, 2019 and December 31, 2018 : (DOLLARS IN THOUSANDS) June 30, 2019 December 31, 2018 Foreign currency contracts $ 394,538 $ 585,581 Cross currency swaps 600,000 600,000 |
Derivative Instruments Measured at Fair Value | The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected in the Consolidated Balance Sheet as of June 30, 2019 and December 31, 2018 : June 30, 2019 (DOLLARS IN THOUSANDS) Fair Value of Fair Value of Total Fair Value Derivative assets (a) Foreign currency contracts $ 1,745 $ 388 $ 2,133 Cross currency swaps 12,220 — 12,220 $ 13,965 $ 388 $ 14,353 Derivative liabilities (b) Foreign currency contract $ 506 $ 5,836 $ 6,342 December 31, 2018 (DOLLARS IN THOUSANDS) Fair Value of Fair Value of Total Fair Value Derivative assets (a) Foreign currency contracts $ 4,122 $ 2,020 $ 6,142 Cross currency swaps 1,087 — 1,087 $ 5,209 $ 2,020 $ 7,229 Derivative liabilities (b) Foreign currency contracts $ 205 $ 6,702 $ 6,907 _______________________ (a) Derivative assets are recorded to Prepaid expenses and Other assets in the Consolidated Balance Sheet. (b) Derivative liabilities are recorded as Other current liabilities in the Consolidated Balance Sheet. |
Derivative Instruments Which Were Not Designated as Hedging Instruments | The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statement of Income and Comprehensive Income for the three and six months ended June 30, 2019 and 2018 (in thousands): Amount of Gain (Loss) Location of Gain (Loss) Recognized in Income on Derivative (DOLLARS IN THOUSANDS) Three Months Ended June 30, 2019 2018 Foreign currency contracts (1) $ (3,932 ) $ 4,685 Other (income) expense, net Deal contingent swaps (2) Foreign currency contracts — 10,979 Other income, net Interest rate swaps — (24,937 ) Interest expense Total (3,932 ) (9,273 ) Amount of Gain (Loss) Location of Gain (Loss) Recognized in Income on Derivative Six Months Ended June 30, (DOLLARS IN THOUSANDS) 2019 2018 Foreign currency contracts (1) $ (3,006 ) $ 1,070 Other income, net Deal contingent swaps (2) Foreign currency contracts — 10,979 Other income, net Interest rate swaps — (24,937 ) Interest expense Total $ (3,006 ) $ (12,888 ) _______________________ (1) The foreign currency contract net gains (losses) offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods. (2) In the second quarter of 2018, the Company entered into a foreign currency contract and two interest rate swap agreements, which were contingent upon the closing of the Frutarom acquisition. |
Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments | The following table shows the effect of the Company’s derivative and non-derivative instruments designated as cash flow and net investment hedging instruments, net of tax, in the Consolidated Statement of Income and Comprehensive Income for the three and six months ended June 30, 2019 and 2018 (in thousands): Amount of Gain (Loss) Recognized in OCI on Derivative Location of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Three Months Ended June 30, Three Months Ended June 30, 2019 2018 2019 2018 Derivatives in Cash Flow Hedging Relationships: Foreign currency contracts $ (2,539 ) $ 10,241 Cost of goods sold $ 2,322 $ (2,330 ) Interest rate swaps (1) 216 216 Interest expense (216 ) (216 ) Derivatives in Net Investment Hedging Relationships: Foreign currency contracts — 178 N/A — — Cross currency swaps (3,904 ) — N/A — — Non-Derivatives in Net Investment Hedging Relationships: 2024 Euro Notes (4,823 ) 28,682 N/A — — 2021 Euro Notes & 2026 Euro Notes (10,611 ) — N/A — — Total $ (21,661 ) $ 39,317 $ 2,106 $ (2,546 ) Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) Location of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) Six Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Derivatives in Cash Flow Hedging Relationships: Foreign currency contracts $ (2,850 ) $ 9,498 Cost of goods sold $ 4,695 $ (4,523 ) Interest rate swaps (1) 432 432 Interest expense (432 ) (432 ) Derivatives in Net Investment Hedging Relationships: Foreign currency contracts — (518 ) N/A — — Cross currency swaps 7,312 — N/A — — Non-Derivatives in Net Investment Hedging Relationships: 2024 Euro Notes (617 ) 12,705 N/A — — 2021 Euro Notes & 2026 Euro Notes (1,358 ) — N/A — — Total $ 2,919 $ 22,117 $ 4,263 $ (4,955 ) _______________________ (1) Interest rate swaps were entered into as pre-issuance hedges for bond offerings. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following tables present changes in the accumulated balances for each component of other comprehensive income, including current period other comprehensive income and reclassifications out of accumulated other comprehensive income: (DOLLARS IN THOUSANDS) Foreign Currency Translation Adjustments Gains on Derivatives Qualifying as Hedges Pension and Postretirement Liability Adjustment Total Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2018 $ (396,996 ) $ 4,746 $ (309,977 ) $ (702,227 ) OCI before reclassifications 28,363 4,581 — 32,944 Amounts reclassified from AOCI — (4,263 ) 5,187 924 Net current period other comprehensive income (loss) 28,363 318 5,187 33,868 Accumulated other comprehensive (loss) income, net of tax, as of June 30, 2019 $ (368,633 ) $ 5,064 $ (304,790 ) $ (668,359 ) (DOLLARS IN THOUSANDS) Foreign Currency Translation Adjustments Losses on Derivatives Qualifying as Hedges Pension and Postretirement Liability Adjustment Total Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2017 $ (297,416 ) $ (10,332 ) $ (329,734 ) $ (637,482 ) OCI before reclassifications (70,461 ) 4,971 186 (65,304 ) Amounts reclassified from AOCI — 4,955 5,333 10,288 Net current period other comprehensive income (loss) (70,461 ) 9,926 5,519 (55,016 ) Accumulated other comprehensive (loss) income, net of tax, as of June 30, 2018 $ (367,877 ) $ (406 ) $ (324,215 ) $ (692,498 ) |
Reclassifications of Accumulated Other Comprehensive Income to Consolidated Statement of Comprehensive Income | The following table provides details about reclassifications out of accumulated other comprehensive income to the Consolidated Statement of Income and Comprehensive Income: Six Months Ended June 30, Affected Line Item in the (DOLLARS IN THOUSANDS) 2019 2018 Gains (losses) on derivatives qualifying as hedges Foreign currency contracts $ 5,365 $ (5,169 ) Cost of goods sold Interest rate swaps (432 ) (432 ) Interest expense Tax (670 ) 646 Provision for income taxes Total $ 4,263 $ (4,955 ) Total, net of income taxes Losses on pension and postretirement liability adjustments Prior service cost $ 3,328 $ 3,543 (a) Actuarial losses (9,335 ) (10,206 ) (a) Tax 820 1,330 Provision for income taxes Total $ (5,187 ) $ (5,333 ) Total, net of income taxes _______________________ (a) The amortization of prior service cost and actuarial loss is included in the computation of net periodic benefit cost. Refer to Note 16 of our 2018 Form 10-K for additional information regarding net periodic benefit cost. |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The following table sets forth the details of the Company's redeemable noncontrolling interests: (DOLLARS IN THOUSANDS) Redeemable Noncontrolling Interests Balance at December 31, 2018 $ 81,806 Acquired through acquisitions during 2019 26,273 Impact of foreign exchange translation (783 ) Share of profit or loss attributable to redeemable noncontrolling interests 3,371 Redemption value mark-up for the current period 143 Measurement period adjustments 5,700 Dividends paid (432 ) Exercises of redeemable noncontrolling interests (538 ) Balance at June 30, 2019 $ 115,540 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 29, 2018 | |
Accounting Policies [Abstract] | ||||
Decrease in receivables due to factoring | $ 24,000 | $ 25,500 | ||
Accounting Standards Update 2017-12 | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Cumulative effect | $ 981 | |||
Accounting Standards Update 2017-12 | Retained earnings | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Cumulative effect | $ 981 | $ 1,000 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Contract Assets, Receivables, and Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Receivables (included in Trade receivables) | $ 1,055,133 | $ 1,055,133 | $ 946,938 | ||
Contract asset - Short term | 1,095 | 1,095 | $ 487 | ||
Revenues | 1,291,568 | $ 920,016 | 2,588,970 | $ 1,850,944 | |
Flavor Compounds | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 729,279 | 450,540 | 1,449,481 | 899,559 | |
Fragrance Compounds | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 375,696 | 372,034 | 764,807 | 750,666 | |
Ingredients | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 186,593 | $ 97,442 | $ 374,682 | $ 200,719 |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income attributable to IFF stockholders | $ 136,377 | $ 99,149 | $ 245,206 | $ 228,564 |
Less: Increase in redemption value of redeemable noncontrolling interests in excess of earnings allocated | (513) | 0 | (143) | 0 |
Net income available to IFF stockholders | $ 135,864 | $ 99,149 | $ 245,063 | $ 228,564 |
Weighted average common shares outstanding (basic) (in shares) | 111,996 | 79,065 | 111,930 | 79,041 |
Weighted average shares assuming dilution (diluted) (in shares) | 112,872 | 79,303 | 113,131 | 79,347 |
Net income per share - basic (in dollars per share) | $ 1.21 | $ 1.25 | $ 2.19 | $ 2.89 |
Net income per share - diluted (in dollars per share) | $ 1.20 | $ 1.25 | $ 2.16 | $ 2.87 |
Stock options and restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Adjustment for assumed dilution (in shares) | 424 | 238 | 393 | 306 |
SPC portion of TEUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Adjustment for assumed dilution (in shares) | 452 | 0 | 808 | 0 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dividends declared per share, in dollars per share | $ 0.73 | $ 0.69 | $ 1.46 | $ 1.38 |
Net income allocated to PRS | $ 0.2 | $ 0.2 | $ 0.3 | $ 0.5 |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock excluded from computation of diluted net income per share | 0 | 0 | 0 | 0 |
Stock-Settled Appreciation Rights (SARs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock excluded from computation of diluted net income per share | 2,668 | 2,647 | 2,322.5 | 1,323.5 |
Net Income Per Share (TEU) (Det
Net Income Per Share (TEU) (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 17, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Earnings Per Share [Abstract] | |||||
Tangible equity units issued | 16,500,000 | ||||
Tangible equity units proceeds | $ 800.2 | ||||
Price for basic share (usd per share) | $ 0.3134 | ||||
Price for shares diluted (usd per share) | $ 0.3408 | ||||
Difference amount between basic and diluted net income per share | $ 0.01 | $ 0.01 | |||
Net income allocated to PRS | $ 0.2 | $ 0.2 | $ 0.3 | $ 0.5 |
Acquisitions - 2019 Acquisition
Acquisitions - 2019 Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 5,506,317 | $ 5,378,388 | |
Wiburg Canada | |||
Business Acquisition [Line Items] | |||
Percentage of interests acquired | 50.00% | ||
Payments to acquire businesses | $ 40,000 | ||
Goodwill, expected tax deductible amount | 24,000 | ||
Intangible assets acquired | $ 15,000 | ||
Mighty and Leagel | |||
Business Acquisition [Line Items] | |||
Percentage of interests acquired | 70.00% | ||
Payments to acquire businesses | $ 52,000 | ||
Goodwill, expected tax deductible amount | 56,000 | ||
Intangible assets acquired | 18,000 | ||
Contingent consideration, liability | $ 19,000 | ||
Minimum | Mighty and Leagel | |||
Business Acquisition [Line Items] | |||
Percentage of interests acquired | 49.00% | ||
Maximum | Mighty and Leagel | |||
Business Acquisition [Line Items] | |||
Percentage of interests acquired | 60.00% | ||
Frutarom | Wiburg Canada | |||
Business Acquisition [Line Items] | |||
Percentage of interests acquired | 100.00% |
Acquisitions - Frutarom Narrati
Acquisitions - Frutarom Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Oct. 04, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 5,506,317 | $ 5,378,388 | |
Frutarom | |||
Business Acquisition [Line Items] | |||
Percentage of voting interest acquired | 100.00% | ||
Intangible assets acquired | 2,668,300 | 2,690,000 | |
Other non-current assets | 412,046 | 353,710 | |
Redeemable noncontrolling interest | (103,210) | (97,510) | |
Goodwill | 4,283,936 | $ 4,243,079 | |
Measurement period adjustments | Frutarom | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired | (21,700) | ||
Other non-current assets | 58,336 | ||
Earn out payable | 1,500 | ||
Deferred income tax liabilities | 70,500 | ||
Redeemable noncontrolling interest | (5,700) | ||
Goodwill | $ 40,857 |
Acquisitions - Schedule of asse
Acquisitions - Schedule of assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Goodwill | $ 5,506,317 | $ 5,378,388 |
Frutarom | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 140,747 | 140,747 |
Other current assets | 699,627 | 699,627 |
Identifiable intangible assets | 2,668,300 | 2,690,000 |
Other non-current assets | 412,046 | 353,710 |
Equity method investments | 25,791 | 25,791 |
Current liabilities | (311,325) | (311,325) |
Debt assumed | (77,037) | (77,037) |
Other liabilities | (704,281) | (632,488) |
Redeemable noncontrolling interest | (103,210) | (97,510) |
Noncontrolling interest | (3,700) | (3,700) |
Goodwill | 4,283,936 | 4,243,079 |
Total Purchase Consideration | 7,030,894 | $ 7,030,894 |
Measurement period adjustments | Frutarom | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets | (21,700) | |
Other non-current assets | 58,336 | |
Other liabilities | (71,793) | |
Redeemable noncontrolling interest | (5,700) | |
Goodwill | $ 40,857 |
Acquisitions - Schedule of inta
Acquisitions - Schedule of intangible assets acquired (Details) - Frutarom $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Business Acquisition [Line Items] | |
Estimated Amounts | $ 2,668,300 |
Product formula | |
Business Acquisition [Line Items] | |
Estimated Amounts | 290,000 |
Customer relationships | |
Business Acquisition [Line Items] | |
Estimated Amounts | 2,230,000 |
Trade names | |
Business Acquisition [Line Items] | |
Estimated Amounts | 140,000 |
Favorable/Unfavorable Leases, net | |
Business Acquisition [Line Items] | |
Estimated Amounts | $ 8,300 |
Minimum | Product formula | |
Business Acquisition [Line Items] | |
Weighted-Average Useful Life | 10 years |
Minimum | Customer relationships | |
Business Acquisition [Line Items] | |
Weighted-Average Useful Life | 18 years |
Minimum | Trade names | |
Business Acquisition [Line Items] | |
Weighted-Average Useful Life | 23 years |
Minimum | Favorable/Unfavorable Leases, net | |
Business Acquisition [Line Items] | |
Weighted-Average Useful Life | 5 years |
Maximum | Product formula | |
Business Acquisition [Line Items] | |
Weighted-Average Useful Life | 12 years |
Maximum | Customer relationships | |
Business Acquisition [Line Items] | |
Weighted-Average Useful Life | 23 years |
Maximum | Trade names | |
Business Acquisition [Line Items] | |
Weighted-Average Useful Life | 26 years |
Maximum | Favorable/Unfavorable Leases, net | |
Business Acquisition [Line Items] | |
Weighted-Average Useful Life | 15 years |
Acquisitions - Unaudited pro fo
Acquisitions - Unaudited pro forma information (Details) - Frutarom - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Business Acquisition [Line Items] | ||
Unaudited pro forma net sales | $ 1,321,321 | $ 2,637,054 |
Unaudited pro forma net income attributable to the Company | $ 102,269 | $ 214,889 |
Restructuring and Other Charg_3
Restructuring and Other Charges, Net - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)Position | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Facility | Jun. 30, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge | $ 2,525 | $ 1,186 | $ 18,699 | $ 1,903 |
Frutarom Integration Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected number of sites closed | Facility | 35 | |||
Expected number of sites closed, period | 2 years | |||
Restructuring charge | $ 5,100 | |||
2017 Productivity Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge | 24,500 | |||
Employee Severance | Frutarom Integration Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge | 1,500 | |||
Employee Severance | 2019 Severance Initiatives | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge | 13,600 | |||
Number of positions expected to be eliminated | Position | 190 | |||
Payments for restructuring | 3,600 | |||
Employee Severance | 2017 Productivity Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for restructuring | $ 4,500 | $ 600 | ||
Contract Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge | $ 4,500 | |||
Europe, Africa and Middle East | Frutarom Integration Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of facilities closed | Facility | 4 | |||
North America | Frutarom Integration Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of facilities closed | Facility | 1 | |||
Greater Asia | Frutarom Integration Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of facilities closed | Facility | 1 |
Restructuring and Other Charg_4
Restructuring and Other Charges, Net - Changes in Employee-Related Restructuring Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Additional charges, net | $ 2,525 | $ 1,186 | $ 18,699 | $ 1,903 |
Fragrance Ingredients Rationalization | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 5,200 | |||
Additional charges, net | 18,699 | |||
Payments | (6,653) | |||
Ending Balance | 17,246 | 17,246 | ||
Fragrance Ingredients Rationalization | Employee-Related Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 4,125 | |||
Additional charges, net | 15,126 | |||
Payments | (5,503) | |||
Ending Balance | 13,748 | 13,748 | ||
Fragrance Ingredients Rationalization | Other | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 1,075 | |||
Additional charges, net | 3,573 | |||
Payments | (1,150) | |||
Ending Balance | $ 3,498 | $ 3,498 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Schedule of Movements in Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2018 | $ 5,378,388 |
Acquisitions(1) | 86,702 |
Frutarom measurement period adjustment | 40,857 |
Foreign exchange | 370 |
Balance at June 30, 2019 | $ 5,506,317 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Schedule of Other Intangible Assets, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total carrying value | $ 3,325,052 | $ 3,331,211 |
Total accumulated amortization | (380,385) | (291,889) |
Other intangible assets, net | 2,944,667 | 3,039,322 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total carrying value | 2,650,432 | 2,658,659 |
Total accumulated amortization | (229,103) | (156,906) |
Trade names & patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total carrying value | 177,800 | 177,770 |
Total accumulated amortization | (23,937) | (19,593) |
Technological know-how | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total carrying value | 470,294 | 451,016 |
Total accumulated amortization | (115,959) | (93,051) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total carrying value | 26,526 | 43,766 |
Total accumulated amortization | $ (11,386) | $ (22,339) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of acquisition-related intangibles | $ 47,909 | $ 9,584 | $ 95,534 | $ 18,769 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Net - Future Estimated Amortization Expense (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated future intangible amortization expense, 2019 | $ 96,198 |
Estimated future intangible amortization expense, 2020 | 185,650 |
Estimated future intangible amortization expense, 2021 | 180,819 |
Estimated future intangible amortization expense, 2022 | 176,863 |
Estimated future intangible amortization expense, 2023 | $ 176,749 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Operating lease right-of-use assets | $ 308,965 | |
Deferred income taxes | 97,629 | $ 89,000 |
Overfunded pension plans | 83,095 | 75,158 |
Cash surrender value of life insurance contracts | 46,159 | 43,179 |
Other | 54,919 | 81,336 |
Total | $ 590,767 | $ 288,673 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 4,512,906 | $ 4,553,059 |
Less: Short term borrowings | (84,231) | (48,642) |
Long-term debt | $ 4,428,675 | 4,504,417 |
2020 Notes | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 3.69% | |
Credit facilities | $ 298,954 | 298,499 |
2021 Euro Notes | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 0.82% | |
Credit facilities | $ 338,505 | 337,704 |
2023 Notes | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 3.30% | |
Credit facilities | $ 298,850 | 298,698 |
2024 Euro Notes | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 1.88% | |
Credit facilities | $ 565,404 | 564,034 |
2026 Euro Notes | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 1.93% | |
Credit facilities | $ 902,063 | 899,886 |
2028 Notes | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 4.57% | |
Credit facilities | $ 396,535 | 396,377 |
2047 Notes | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 4.44% | |
Credit facilities | $ 493,361 | 493,151 |
2048 Notes | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 5.12% | |
Credit facilities | $ 785,890 | 785,788 |
Amortizing Note | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 6.09% | |
Credit facilities | $ 103,968 | 125,007 |
Bank overdrafts and other | ||
Debt Instrument [Line Items] | ||
Bank overdrafts and other | 4,949 | 4,695 |
Deferred realized gains on interest rate swaps | ||
Debt Instrument [Line Items] | ||
Deferred realized gains on interest rate swaps | $ 57 | 57 |
Term loan credit agreement | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 3.65% | |
Credit facilities | $ 324,370 | $ 349,163 |
LIBOR | Revolver Borrowings | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 1.125% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 29, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 40 years | ||
Option to extend lease term | 5 years | ||
Operating lease right-of-use assets | $ 308,965 | ||
Total | $ 314,130 | ||
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 308,300 | ||
Total | 313,300 | ||
Cumulative effect | $ 23,094 | ||
Retained earnings | Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Cumulative effect | $ 23,094 | $ 23,100 |
Leases - Lease expenses (Detail
Leases - Lease expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 13,337 | $ 25,806 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 24,363 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 308,965 |
Other current liabilities | 39,638 |
Operating lease liabilities | 274,492 |
Total operating lease liabilities | $ 314,130 |
Leases - Other information (Det
Leases - Other information (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted Average Remaining Lease Term (in years) | 11 years 9 months 18 days |
Weighted Average Discount Rate | 3.18% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Less than 1 Year | $ 36,096 |
1-3 Years | 80,054 |
3-5 Years | 66,120 |
After 5 years | 218,471 |
Less: Imputed Interest | (86,611) |
Total | $ 314,130 |
Leases - Maturities of lease _2
Leases - Maturities of lease liabilities prior to adoption (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
Less than 1 Year | $ 49,350 |
1-3 Years | 78,600 |
3-5 Years | 60,672 |
After 5 years | 201,079 |
Total | $ 389,701 |
Leases - Leases by region (Deta
Leases - Leases by region (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Consolidated | $ 308,965 |
North America | |
Lessee, Lease, Description [Line Items] | |
Consolidated | 145,533 |
Europe, Africa and Middle East | |
Lessee, Lease, Description [Line Items] | |
Consolidated | 125,806 |
Greater Asia | |
Lessee, Lease, Description [Line Items] | |
Consolidated | 22,792 |
Latin America | |
Lessee, Lease, Description [Line Items] | |
Consolidated | $ 14,834 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes [Line Items] | ||||
Domestic earnings repatriated | $ 85.8 | $ 85.8 | ||
Undistributed foreign earnings | $ 42.1 | $ 42.1 | ||
Spanish tax settlement | ||||
Income Taxes [Line Items] | ||||
Effective tax rate | 18.10% | 18.70% | 17.80% | 18.60% |
Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Provision for uncertain tax positions | $ 50.3 | $ 50.3 | ||
Other Liabilities | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits that would impact effective tax rate | 46.9 | 46.9 | ||
Accrued interest and penalties | 3.4 | 3.4 | ||
Frutarom | ||||
Income Taxes [Line Items] | ||||
Undistributed foreign earnings | $ 43.7 | $ 43.7 |
Stock Compensation Plans - Stoc
Stock Compensation Plans - Stock-Based Compensation Expense and Related Tax Benefits (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 12,757 | $ 7,796 | $ 21,091 | $ 15,571 |
Less: Tax benefit | (2,141) | (1,335) | (3,523) | (2,898) |
Total stock-based compensation expense, after tax | 10,616 | 6,461 | 17,568 | 12,673 |
Equity-based awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 10,696 | 7,554 | 18,300 | 15,174 |
Liability-based awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 2,061 | $ 242 | $ 2,791 | $ 397 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segmentcategory | Jun. 30, 2018USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of segments | segment | 3 | |||
Number of categories | category | 2 | |||
Revenues | $ 1,291,568 | $ 920,016 | $ 2,588,970 | $ 1,850,944 |
Net sales attributed to all foreign countries | Sales | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Maximum percentage of total consolidated net sales attributed to any non-U.S. country | 6.00% | |||
Geographic Concentration Risk | Net sales related to the U.S. | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 268,300 | 234,100 | $ 541,100 | 464,300 |
Geographic Concentration Risk | Net sales attributed to all foreign countries | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 1,000,000 | $ 685,900 | $ 2,000,000 | $ 1,400,000 |
Segment Information - Reportabl
Segment Information - Reportable Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net sales: | ||||
Net sales | $ 1,291,568 | $ 920,016 | $ 2,588,970 | $ 1,850,944 |
Segment profit: | ||||
Restructuring and other charges, net | (2,525) | (1,186) | (18,699) | (1,903) |
Gain on sales of fixed assets | (952) | (1,264) | (764) | (1,195) |
Operating profit | 199,937 | 154,509 | 363,807 | 329,363 |
Interest expense | (32,593) | (53,246) | (69,165) | (69,841) |
Other income (expense) | 2,137 | 20,655 | 9,415 | 21,232 |
Income before taxes | 169,481 | 121,918 | 304,057 | 280,754 |
Corporate and Other | ||||
Segment profit: | ||||
Operational improvement initiative costs | (534) | (403) | (940) | (1,429) |
Acquisition and related costs | 0 | 4 | 0 | 518 |
Integration-related costs | (11,417) | (993) | (26,314) | (993) |
Restructuring and other charges, net | (2,525) | (193) | (18,699) | (910) |
Gain on sales of fixed assets | (952) | (1,264) | (764) | (1,195) |
Frutarom Acquisition Related Costs | (1,433) | 12,455 | 8,096 | 12,455 |
Frutarom | ||||
Segment profit: | ||||
Amortization | 7,900 | |||
Transaction costs | 12,500 | 12,500 | ||
Adjustments to contingent consideration | 2,300 | |||
Operating Segments | Taste | ||||
Net sales: | ||||
Net sales | 434,179 | 450,540 | 878,781 | 899,559 |
Segment profit: | ||||
Operating profit | 98,081 | 109,605 | 206,536 | 221,169 |
Operating Segments | Scent | ||||
Net sales: | ||||
Net sales | 475,671 | 469,476 | 964,023 | 951,385 |
Segment profit: | ||||
Operating profit | 91,244 | 80,780 | 177,059 | 174,056 |
Operating Segments | Frutarom | ||||
Net sales: | ||||
Net sales | 381,718 | 0 | 746,166 | 0 |
Segment profit: | ||||
Operating profit | 37,493 | 0 | 66,584 | 0 |
Corporate, Non-Segment | ||||
Segment profit: | ||||
Operating profit | (12,886) | (20,572) | (31,559) | (44,398) |
Acquisition-related Costs | ||||
Segment profit: | ||||
Operating profit | $ 0 | $ 0 | $ 0 | $ (5,000) |
Segment Information Segment Inf
Segment Information Segment Information - Net Sales by Destination of Product Delivery (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 1,291,568 | $ 920,016 | $ 2,588,970 | $ 1,850,944 |
Europe, Africa and Middle East | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 528,094 | 292,848 | 1,057,700 | 602,161 |
Greater Asia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 293,257 | 242,221 | 581,219 | 485,779 |
North America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 293,918 | 249,054 | 594,977 | 490,199 |
Latin America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 176,299 | $ 135,893 | $ 355,074 | $ 272,805 |
Employee Benefits - Pension and
Employee Benefits - Pension and Other Defined Contribution Retirement Plan Expenses (Detail) - Pension Plans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | $ 474 | $ 596 | $ 948 | $ 1,192 |
Interest cost on projected benefit obligation | 5,453 | 4,790 | 10,906 | 9,580 |
Expected return on plan assets | (6,983) | (7,740) | (13,966) | (15,479) |
Net amortization and deferrals | 1,276 | 1,549 | 2,551 | 3,098 |
Net periodic benefit (income) cost | 220 | (805) | 439 | (1,609) |
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | 4,873 | 4,470 | 9,746 | 8,939 |
Interest cost on projected benefit obligation | 4,435 | 4,338 | 8,870 | 8,675 |
Expected return on plan assets | (10,904) | (12,032) | (21,808) | (24,064) |
Net amortization and deferrals | 2,922 | 2,972 | 5,844 | 5,943 |
Net periodic benefit (income) cost | $ 1,326 | $ (252) | $ 2,652 | $ (507) |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Defined Contribution and Other Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Contribution to the plans | $ 1,800,000 |
Expected contribution to the plan | 3,900,000 |
U.S. Plans | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution to the plan | 4,200,000 |
Contribution to the plans | 0 |
Non-U.S. Plans | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution to the plan | 19,300,000 |
Contribution to the plans | 8,300,000 |
Benefit payments | $ 2,200,000 |
Employee Benefits - Postretirem
Employee Benefits - Postretirement Benefits Other Than Pension Expenses (Detail) - Defined Contribution and Other Retirement Plans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | $ 148 | $ 196 | $ 296 | $ 391 |
Interest cost on projected benefit obligation | 578 | 654 | 1,156 | 1,308 |
Net amortization and deferrals | (1,195) | (1,189) | (2,389) | (2,378) |
Net periodic benefit (income) cost | $ (469) | $ (339) | $ (937) | $ (679) |
Financial Instruments - Carryin
Financial Instruments - Carrying Amount and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 426,717 | $ 634,897 |
Credit facilities and bank overdrafts | 4,949 | 4,695 |
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Reported Value Measurement | 2020 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 298,954 | 298,499 |
Reported Value Measurement | 2023 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 298,850 | 298,698 |
Reported Value Measurement | 2021 Euro Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 338,505 | 337,704 |
Reported Value Measurement | 2024 Euro Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 565,404 | 564,034 |
Reported Value Measurement | 2026 Euro Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 902,063 | 899,886 |
Reported Value Measurement | 2028 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 396,535 | 396,377 |
Reported Value Measurement | 2048 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 785,890 | 785,788 |
Reported Value Measurement | 2047 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 493,361 | 493,151 |
Reported Value Measurement | Term loan credit agreement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 324,370 | 349,163 |
Reported Value Measurement | Amortizing Note | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 103,968 | 125,007 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 426,717 | 634,897 |
Credit facilities and bank overdrafts | 4,949 | 4,695 |
Derivative Asset | 14,353 | 7,229 |
Derivative Liability | 6,342 | 6,907 |
Estimate of Fair Value Measurement [Member] | 2020 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 303,208 | 300,356 |
Estimate of Fair Value Measurement [Member] | 2023 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 304,471 | 293,017 |
Estimate of Fair Value Measurement [Member] | 2021 Euro Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 344,904 | 341,094 |
Estimate of Fair Value Measurement [Member] | 2024 Euro Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 605,769 | 584,129 |
Estimate of Fair Value Measurement [Member] | 2026 Euro Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 967,456 | 909,439 |
Estimate of Fair Value Measurement [Member] | 2028 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 435,181 | 401,231 |
Estimate of Fair Value Measurement [Member] | 2048 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 887,584 | 783,925 |
Estimate of Fair Value Measurement [Member] | 2047 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 505,988 | 446,725 |
Estimate of Fair Value Measurement [Member] | Term loan credit agreement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 325,000 | 350,000 |
Estimate of Fair Value Measurement [Member] | Amortizing Note | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | $ 106,715 | $ 127,879 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($)swap | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($)swap | |
Derivative [Line Items] | ||||
Derivative losses included in AOCI | $ 5,700,000 | |||
Net investment hedge ineffectiveness | 0 | |||
Cash flow hedge ineffectiveness | $ 0 | 0 | ||
Derivative, Gain (Loss) on Derivative, Net | (3,932,000) | $ (9,273,000) | $ (3,006,000) | $ (12,888,000) |
Foreign currency contract | ||||
Derivative [Line Items] | ||||
Term of derivative | 12 months | |||
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Number of instruments terminated (swap) | swap | 2 | 2 | ||
Deal Contingent Swaps | Interest expense | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ (24,937,000) | $ 0 | $ (24,937,000) |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments Notional Amount Outstanding (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Forward Contracts [Member] | ||
Schedule Of Information By Major Category Of Credit Derivatives Contracts [Line Items] | ||
Derivative instruments outstanding | $ 394,538 | $ 585,581 |
Currency Swap [Member] | ||
Schedule Of Information By Major Category Of Credit Derivatives Contracts [Line Items] | ||
Derivative instruments outstanding | $ 600,000 | $ 600,000 |
Financial Instruments - Deriv_2
Financial Instruments - Derivative Instruments Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | $ 14,353 | $ 7,229 |
Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | 2,133 | 6,142 |
Total Fair Value, Derivative Liabilities | 6,342 | 6,907 |
Currency Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | 12,220 | 1,087 |
Fair Value of Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | 13,965 | 5,209 |
Fair Value of Derivatives Designated as Hedging Instruments [Member] | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | 1,745 | 4,122 |
Total Fair Value, Derivative Liabilities | 506 | 205 |
Fair Value of Derivatives Designated as Hedging Instruments [Member] | Currency Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | 12,220 | 1,087 |
Fair Value of Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | 388 | 2,020 |
Fair Value of Derivatives Not Designated as Hedging Instruments [Member] | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | 388 | 2,020 |
Total Fair Value, Derivative Liabilities | 5,836 | 6,702 |
Fair Value of Derivatives Not Designated as Hedging Instruments [Member] | Currency Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | $ 0 | $ 0 |
Financial Instruments - Deriv_3
Financial Instruments - Derivative Instruments Which Were Not Designated as Hedging Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (3,932) | $ (9,273) | $ (3,006) | $ (12,888) |
Foreign currency contracts | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (3,932) | 4,685 | (3,006) | 1,070 |
Deal Contingent Swaps | Foreign currency contracts | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 10,979 | 0 | 10,979 |
Deal Contingent Swaps | Interest rate swaps | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ (24,937) | $ 0 | $ (24,937) |
Financial Instruments - Deriv_4
Financial Instruments - Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | $ (21,661) | $ 39,317 | $ 2,919 | $ 22,117 |
Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) | 2,106 | (2,546) | 4,263 | (4,955) |
Interest Expense | (32,593) | (53,246) | (69,165) | (69,841) |
Foreign currency contracts | Derivatives in Cash Flow Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | (2,539) | 10,241 | (2,850) | 9,498 |
Foreign currency contracts | Derivatives in Net Investment Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | 0 | (518) | ||
Foreign currency contracts | Cost of goods sold | Derivatives in Cash Flow Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) | 4,695 | (4,523) | ||
Forward Contracts [Member] | Derivatives in Net Investment Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | 0 | 178 | ||
Forward Contracts [Member] | Cost of Sales [Member] | Derivatives in Cash Flow Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) | 2,322 | (2,330) | ||
Currency Swap [Member] | Derivatives in Net Investment Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | (3,904) | 0 | ||
2024 Euro Notes | Derivatives in Net Investment Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | (4,823) | 28,682 | ||
Interest rate swaps | Derivatives in Cash Flow Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | 216 | 216 | 432 | 432 |
Interest rate swaps | Interest expense | Derivatives in Cash Flow Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Reclassified from Accumulated OCI into Income (Effective Portion) | (432) | (432) | ||
Senior Notes 2016 | Derivatives in Net Investment Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | (617) | 12,705 | ||
Senior Notes Maturing 2021 through 2026 | Derivatives in Net Investment Hedging Relationships [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | (10,611) | 0 | (1,358) | 0 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Expense | $ (216) | $ (216) | $ (432) | $ (432) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | $ 6,199,379 | $ 6,199,379 | $ 6,032,951 | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated other comprehensive loss (income), net of tax, beginning balance | (702,227) | |||||
Net current period other comprehensive income (loss) | (11,005) | $ (71,919) | 33,868 | $ (55,016) | ||
Accumulated other comprehensive loss (income), net of tax, ending balance | (668,359) | (692,498) | (668,359) | (692,498) | ||
Accumulated Translation Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | (368,633) | (368,633) | (396,996) | $ (297,416) | ||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 28,363 | (70,461) | ||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 0 | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 28,363 | (70,461) | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated other comprehensive loss (income), net of tax, ending balance | (367,877) | (367,877) | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | 4,746 | (10,332) | ||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 4,581 | 4,971 | ||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 4,263 | (4,955) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 318 | 9,926 | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated other comprehensive loss (income), net of tax, ending balance | 5,064 | (406) | 5,064 | (406) | ||
Accumulated Defined Benefit Plans Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | (309,977) | (329,734) | ||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 0 | 186 | ||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (5,187) | (5,333) | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 5,187 | 5,519 | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated other comprehensive loss (income), net of tax, ending balance | $ (304,790) | $ (324,215) | (304,790) | (324,215) | ||
AOCI Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | $ (702,227) | $ (637,482) | ||||
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 32,944 | (65,304) | ||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | $ (924) | $ (10,288) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications of Accumulated Other Comprehensive Income to Consolidated Statement of Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Interest Expense | $ (32,593) | $ (53,246) | $ (69,165) | $ (69,841) |
Cost of goods sold | 745,329 | 521,299 | 1,511,472 | 1,046,419 |
Taxes on income | 30,612 | 22,769 | 53,974 | 52,190 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Taxes on income | 670 | (646) | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Foreign currency contracts | ||||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Cost of goods sold | 5,365 | (5,169) | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Interest rate swaps | ||||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Interest Expense | $ (216) | $ (216) | (432) | (432) |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3,328 | 3,543 | ||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (9,335) | (10,206) | ||
Accumulated Defined Benefit Plans Adjustment | ||||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Taxes on income | 820 | 1,330 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 4,263 | (4,955) | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ (5,187) | $ (5,333) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($)Facility | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2019USD ($)Facilityproperty | Dec. 31, 2018USD ($) | |
Commitments And Contingencies [Line Items] | ||||||
Bank guarantees related to appeals on income tax and indirect tax cases | $ 17,700,000 | |||||
Available lines of credit | $ 107,600,000 | $ 107,600,000 | ||||
Duration as potentially responsible party, years | 20 years | |||||
Number of facilities under potentially responsible party investigation | property | 7 | |||||
Property, Plant and Equipment, Net | 1,316,305,000 | $ 1,316,305,000 | $ 1,241,152,000 | |||
Bank guarantees and pledged assets to pursue defenses related to other contingencies | 27,800,000 | |||||
Loss contingency accrual for the period | 4,800,000 | |||||
Product liability | $ 5,000,000 | |||||
Settlement of claim | 16,000,000 | $ 3,000,000 | ||||
Product Liability Contingency, Loss Exposure in Excess of Accrual, Amount Paid | $ 13,000,000 | |||||
Reimbursement to supplier | $ 13,100,000 | |||||
Bank guarantees and standby letters of credit | ||||||
Commitments And Contingencies [Line Items] | ||||||
Bank guarantees and letters of credit outstanding | 58,700,000 | |||||
Pledged assets | ||||||
Commitments And Contingencies [Line Items] | ||||||
The amount of pledged assets, principally PP&E to cover income tax and indirect tax assessments | 10,100,000 | |||||
Reserve for Environmental Costs | ||||||
Commitments And Contingencies [Line Items] | ||||||
Estimation of possible loss | 3,000,000 | 3,000,000 | ||||
Damages from Product Defects | ||||||
Commitments And Contingencies [Line Items] | ||||||
Additional litigation reserve | 17,500,000 | 17,500,000 | ||||
CHINA | ||||||
Commitments And Contingencies [Line Items] | ||||||
Property, Plant and Equipment, Net | $ 200,000,000 | $ 200,000,000 | ||||
Number of facilities | Facility | 8 | 8 | ||||
Guangzhou Flavors Plant | CHINA | ||||||
Commitments And Contingencies [Line Items] | ||||||
Property, Plant and Equipment, Net | $ 64,000,000 | $ 64,000,000 | ||||
Guangzhou Fragrance Plant | CHINA | ||||||
Commitments And Contingencies [Line Items] | ||||||
Property, Plant and Equipment, Net | 9,000,000 | 9,000,000 | ||||
Zhejiang Ingredients Plant | ||||||
Commitments And Contingencies [Line Items] | ||||||
Gain Contingency, Expected Relocation Payments | 50,000,000 | |||||
Gain Contingency, Relocation Payments Received | $ 15,000,000 | 0 | ||||
Zhejiang Ingredients Plant | CHINA | ||||||
Commitments And Contingencies [Line Items] | ||||||
Property, Plant and Equipment, Net | 19,000,000 | 19,000,000 | ||||
Minimum | ||||||
Commitments And Contingencies [Line Items] | ||||||
Estimation of possible loss | 0 | 0 | ||||
Maximum | ||||||
Commitments And Contingencies [Line Items] | ||||||
Estimation of possible loss | 10,000,000 | 10,000,000 | ||||
Amended credit facility | Citibank, N.A. | ||||||
Commitments And Contingencies [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance at December 31, 2018 | $ 10,423 | |||
Share of profit or loss attributable to redeemable noncontrolling interests | $ 2,492 | $ 0 | 4,877 | $ 0 |
Dividends paid on noncontrolling interest and other activities | (1,909) | (1,909) | ||
Balance at June 30, 2019 | 10,608 | 10,608 | ||
Redeemable Noncontrolling Interest | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance at December 31, 2018 | 81,806 | |||
Acquired through acquisitions during 2019 | 26,273 | |||
Impact of foreign exchange translation | (783) | |||
Share of profit or loss attributable to redeemable noncontrolling interests | 3,371 | |||
Redemption value mark-up for the current period | 143 | |||
Dividends paid on noncontrolling interest and other activities | (432) | |||
Exercises of redeemable noncontrolling interests | (538) | |||
Measurement period adjustments | 5,700 | |||
Balance at June 30, 2019 | $ 115,540 | $ 115,540 |