Restructuring (Tables)

6 Months Ended

Jun. 30, 2014

Restructuring [Abstract]

Summary of restructuring costs

Detail of the restructuring and other costs recorded in selling and administrative expenses in the Corporate & Other segment during the three- and six-month periods ended June 30, 2014 are as follows:

	Three Months Ended,		Six Months Ended,
(In thousands)	June 30, 2014		June 30, 2014
Employee separation	$	1,256	$	13,578
Long-lived asset impairment		9,212		47,872
Intangibles impairment		-		1,049
Gain on asset sales		-		(602	)
Other costs (1)		2,511		3,804
Total	$	12,979	$	65,701

(1) Other costs include decommissioning costs, professional services, personnel moving costs, other related costs and 2014 proxy contest costs.

The Company expects to incur approximately $30 million to $35 million of additional restructuring costs by the end of December 2014 and $25 million to $30 million of additional restructuring costs by the end of 2016, consisting primarily of employee separations, asset impairments, and other restructuring related costs.

For the three and six months ended June 30, 2013, the Company recorded restructuring costs of $6.6 million ($4.7 million after-tax) and $19.4 million ($14.1 million after-tax), respectively, 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 is as follows:

Three months ended June 30, 2013
	Selling &		Cost of
(In thousands)	Administrative		Products Sold		Total
Employee separation	$	2,428	$	-	$	2,428
Long-lived asset impairment		880		-		880
Write-down of inventory		-		277		277
Other costs(1)		3,057		-		3,057
Total	$	6,365	$	277	$	6,642

Six months ended June 30, 2013
	Selling &		Cost of
(In thousands)	Administrative		Products Sold		Total
Employee separation	$	11,340	$	-	$	11,340
Long-lived asset impairment		3,406		-		3,406
Write-down of inventory		-		872		872
Other costs(1)		3,797		-		3,797
Total	$	18,543	$	872	$	19,415

⁽¹⁾ Other costs include decommissioning, professional services, personnel (other than employee separations) and moving related costs.

Restructuring cost by segment

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 segment that the costs relate to for the three and six months ended June 30, 2014 and 2013:

	Three Months Ended,
(In thousands)	June 30, 2014		June 30, 2013
Flavors & Fragrances	$	9,068	$	5,951
Color		1,411		600
Corporate & Other		2,500		91
Total	$	12,979	$	6,642

	Six Months Ended,
(In thousands)	June 30, 2014		June 30, 2013
Flavors & Fragrances	$	54,051	$	14,490
Color		7,950		4,310
Corporate & Other		3,700		615
Total	$	65,701	$	19,415

Summary of accrual for restructuring and other charges

The following table summarizes the accrual for the restructuring and other charges for the six-month period ended June 30, 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		13,578			52,123			65,701
Gain on sale of assets		-			602			602
Cash spent		(2,831	)		(1,808	)		(4,639	)
Reduction of assets		-			(48,921	)		(48,921	)
Translation adjustment		(87	)		-			(87	)
Balance as of June 30, 2014	$	15,222		$	3,584		$	18,806