10.	Restructuring

In the current quarter, the Company announced a restructuring plan related to eliminating underperforming operations, consolidating manufacturing facilities and improving efficiencies with the Company.

Based on this plan, the Company determined that certain long-lived assets, including land, buildings and certain pieces of equipment, associated with the identified underperforming operations, were impaired. As a result, the carrying amount of these assets was reduced to their respective fair values, which were based on independent market valuations for these assets. Certain intangible assets were also determined to be impaired and were written down in the current quarter. The Company also incurred $0.9 million during the current quarter related to the 2014 proxy contest. These costs are included in Other costs in the table below and mainly relate to proxy solicitation, public relations, technical consulting and legal services.

For the three months ended March 31, 2014, the Company recorded restructuring and other costs of $52.7 million ($37.4 million after-tax). Detail of the restructuring and other costs recorded in selling and administrative expenses in the Corporate & Other segment during the three month period ended March 31, 2014 is as follows:

	Three Months Ended,
(In thousands)	March 31, 2014
Employee separations	$	12,322
Long-lived asset impairment		38,660
Intangibles impairment		1,049
Gain on asset sales		(602	)
Other costs		1,293

Total	$	52,722

The Company expects to incur approximately $20 million to $25 million of additional restructuring costs by the end of December 2014 and $12 million to $17 million of additional restructuring costs in 2015.

For the quarter ended March 31, 2013, the Company recorded restructuring costs of $12.8 million ($9.4 million after-tax), related to the 2013 restructuring program to relocate the Flavors & Fragrances Group headquarters to Chicago, as well as a profit improvement plan across all segments of the Company. Detail of the restructuring expenses recorded in Corporate & Other segment during the three month period ended March 31, 2013 is as follows:

	Selling &		Cost of
(In thousands)	Administrative		Products Sold		Total
Employee separation	$	8,912	$	-	$	8,912
Long-lived asset impairment		2,526		-		2,526
Write-down of inventory		-		595		595
Other		740		-		740

Total	$	12,178	$	595	$	12,773

The Company evaluates performance based on operating income of each segment before restructuring costs. The restructuring and other costs are recorded in the Corporate & Other segment. The following table summarizes the restructuring and other costs by the segments that the costs relate to for the periods ended March 31, 2014 and 2013:

	Three Months Ended,
(In thousands)	March 31, 2014		March 31, 2013
Flavors & Fragrances	$	44,983	$	8,539
Color		6,539		3,709
Corporate & Other		1,200		525

Total	$	52,722	$	12,773

The following table summarizes the accrual for the restructuring and other charges for the three month period ended March 31, 2014:

	Employee			Asset Related
(In thousands)	Separations			and Other			Total
Balance as of December 31, 2013	$	4,562		$	1,588		$	6,150
Restructuring and other costs		12,322			40,400			52,722
Gain on sale of assets		-			602			602
Cash spent		(2,287	)		(1,147	)		(3,434	)
Reduction of assets		-			(39,709	)		(39,709	)
Translation adjustment		(35	)		-			(35	)
Balance as of March, 31, 2014	$	14,562		$	1,734		$	16,296