0001140361-16-075115.txt : 20160808 0001140361-16-075115.hdr.sgml : 20160808 20160808100404 ACCESSION NUMBER: 0001140361-16-075115 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 50 CONFORMED PERIOD OF REPORT: 20160630 FILED AS OF DATE: 20160808 DATE AS OF CHANGE: 20160808 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SENSIENT TECHNOLOGIES CORP CENTRAL INDEX KEY: 0000310142 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 390561070 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07626 FILM NUMBER: 161813051 BUSINESS ADDRESS: STREET 1: 777 EAST WISCONSIN AVENUE CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 4142716755 MAIL ADDRESS: STREET 1: PO BOX 737 CITY: MILWAUKEE STATE: WI ZIP: 53201 FORMER COMPANY: FORMER CONFORMED NAME: UNIVERSAL FOODS CORP DATE OF NAME CHANGE: 19920703 10-Q 1 form10q.htm SENSIENT TECHNOLOGIES CORP 10-Q 6-30-2016

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

FORM 10‑Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended:
June 30, 2016

OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from
to

Commission file number: 1‑7626

SENSIENT TECHNOLOGIES CORPORATION
(Exact name of registrant as specified in its charter)

Wisconsin
   
39‑0561070
 
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification Number)

777 East Wisconsin Avenue, Milwaukee, Wisconsin  53202-5304
(Address of principal executive offices)

Registrant's telephone number, including area code:           (414) 271‑6755

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days.Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):
 
Large accelerated filer ☒
Accelerated filer ☐
Non-accelerated filer ☐
 
 
 
 
 
Smaller reporting company ☐
 
 
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐           No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class
 
Outstanding at July 31, 2016
   Common Stock, par value $0.10 per share
 
44,780,813
 


SENSIENT TECHNOLOGIES CORPORATION
INDEX

     
Page No.
       
PART I. FINANCIAL INFORMATION:  
       
 
Item 1.
Financial Statements:
 
   
1
     
   
2
   
 
 
   
3
       
   
4
       
   
5
       
 
Item 2.
14
       
 
Item 3.
21
       
 
Item 4.
21
       
       
PART II. OTHER INFORMATION:  
       
 
Item 1.
22
       
 
Item 1A.
22
       
 
Item 2.
23
       
 
Item 6.
23
       
   
24
       
   
25
 
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
 
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(In thousands except per share amounts)
(Unaudited)

   
Three Months
Ended June 30,
   
Six Months
Ended June 30,
 
                         
   
2016
   
2015
   
2016
   
2015
 
                         
Revenue
 
$
360,836
   
$
346,009
   
$
703,304
   
$
692,235
 
                                 
Cost of products sold
   
236,402
     
227,854
     
463,027
     
456,647
 
                                 
Selling and administrative expenses
   
80,769
     
73,088
     
149,093
     
144,075
 
                                 
Operating income
   
43,665
     
45,067
     
91,184
     
91,513
 
                                 
Interest expense
   
4,637
     
4,106
     
9,437
     
8,021
 
                                 
Earnings before income taxes
   
39,028
     
40,961
     
81,747
     
83,492
 
                                 
Income taxes
   
14,277
     
11,419
     
25,803
     
23,215
 
                                 
Earnings from continuing operations
   
24,751
     
29,542
     
55,944
     
60,277
 
                                 
Gain (Loss) from discontinued operations, net of tax
   
3,365
     
(92
)
   
3,343
     
(301
)
                                 
Net earnings
 
$
28,116
   
$
29,450
   
$
59,287
   
$
59,976
 
                                 
Weighted average number of shares outstanding:
                               
Basic
   
44,562
     
46,168
     
44,640
     
46,670
 
                                 
Diluted
   
44,822
     
46,470
     
44,902
     
46,984
 
                                 
Earnings per common share:
                               
                                 
Basic:
                               
Continuing operations
 
$
0.56
   
$
0.64
   
$
1.25
   
$
1.29
 
Discontinued operations
   
0.08
     
-
     
0.07
     
(0.01
)
Earnings per common share
 
$
0.63
   
$
0.64
   
$
1.33
   
$
1.29
 
                                 
Diluted:
                               
Continuing operations
 
$
0.55
   
$
0.64
   
$
1.25
   
$
1.28
 
Discontinued operations
   
0.08
     
-
     
0.07
     
(0.01
)
Earnings per common share
 
$
0.63
   
$
0.63
   
$
1.32
   
$
1.28
 
                                 
Dividends declared per common share
 
$
0.27
   
$
0.25
   
$
0.54
   
$
0.50
 

See accompanying notes to consolidated condensed financial statements.
 
1

SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)

   
Three Months
Ended June 30,
   
Six Months
Ended June 30,
 
                         
   
2016
   
2015
   
2016
   
2015
 
                         
Comprehensive Income
 
$
7,174
   
$
48,758
   
$
53,924
   
$
17,845
 

See accompanying notes to consolidated condensed financial statements.
 
2

SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
 
ASSETS
 
June 30,
2016
(Unaudited)
   
December 31,
2015
 
             
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
20,193
   
$
11,997
 
Trade accounts receivable, net
   
254,635
     
232,047
 
Inventories
   
381,945
     
409,159
 
Prepaid expenses and other current assets
   
42,176
     
44,673
 
Assets held for sale
   
50,452
     
31,029
 
                 
TOTAL CURRENT ASSETS
   
749,401
     
728,905
 
                 
OTHER ASSETS
   
71,170
     
71,117
 
DEFERRED TAX ASSETS
   
18,686
     
25,177
 
INTANGIBLE ASSETS, NET
   
8,755
     
9,209
 
GOODWILL
   
397,742
     
399,646
 
                 
PROPERTY, PLANT AND EQUIPMENT:
               
Land
   
35,251
     
33,975
 
Buildings
   
269,151
     
274,318
 
Machinery and equipment
   
633,068
     
664,917
 
Construction in progress
   
86,169
     
62,515
 
     
1,023,639
     
1,035,725
 
Less accumulated depreciation
   
(555,391
)
   
(566,047
)
     
468,248
     
469,678
 
                 
TOTAL ASSETS
 
$
1,714,002
   
$
1,703,732
 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES:
               
Trade accounts payable
 
$
97,631
   
$
95,442
 
Accrued salaries, wages and withholdings from employees
   
22,869
     
23,530
 
Other accrued expenses
   
64,934
     
61,701
 
Income taxes
   
4,864
     
7,504
 
Short-term borrowings
   
20,747
     
20,655
 
Liabilities held for sale
   
4,509
     
4,090
 
                 
TOTAL CURRENT LIABILITIES
   
215,554
     
212,922
 
                 
DEFERRED INCOME TAXES
   
6,532
     
5,640
 
OTHER LIABILITIES
   
7,458
     
7,534
 
ACCRUED EMPLOYEE AND RETIREE BENEFITS
   
20,300
     
19,007
 
LONG‑TERM DEBT
   
601,840
     
613,502
 
                 
SHAREHOLDERS' EQUITY:
               
Common stock
   
5,396
     
5,396
 
Additional paid‑in capital
   
112,739
     
109,974
 
Earnings reinvested in the business
   
1,337,323
     
1,302,302
 
Treasury stock, at cost
   
(417,715
)
   
(402,483
)
Accumulated other comprehensive loss
   
(175,425
)
   
(170,062
)
                 
TOTAL SHAREHOLDERS’ EQUITY
   
862,318
     
845,127
 
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
1,714,002
   
$
1,703,732
 

See accompanying notes to consolidated condensed financial statements.
 
3

SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
   
Six Months
Ended June 30,
 
             
   
2016
   
2015
 
             
Cash flows from operating activities:
           
Net earnings
 
$
59,287
   
$
59,976
 
Adjustments to arrive at net cash provided by operating activities:
               
Depreciation and amortization
   
23,301
     
24,258
 
Share-based compensation
   
4,803
     
711
 
Loss on assets
   
8,107
     
6,168
 
Deferred income taxes
   
6,231
     
3,032
 
Liquidation of foreign entity
   
(3,257
)
   
-
 
Changes in operating assets and liabilities
   
2,373
     
(17,268
)
                 
Net cash provided by operating activities
   
100,845
     
76,877
 
                 
Cash flows from investing activities:
               
Acquisition of property, plant and equipment
   
(34,294
)
   
(36,970
)
Proceeds from sale of assets
   
910
     
12,627
 
Acquisition of new business
   
-
     
(8,393
)
Other investing activity
   
(48
)
   
(101
)
                 
Net cash used in investing activities
   
(33,432
)
   
(32,837
)
                 
Cash flows from financing activities:
               
Proceeds from additional borrowings
   
107,484
     
130,240
 
Debt payments
   
(123,067
)
   
(20,097
)
Purchase of treasury stock
   
(21,055
)
   
(123,094
)
Dividends paid
   
(24,266
)
   
(23,600
)
Proceeds from options exercised and other equity transactions
   
290
     
554
 
                 
Net cash used in financing activities
   
(60,614
)
   
(35,997
)
                 
Effect of exchange rate changes on cash and cash equivalents
   
1,397
     
(6,587
)
                 
Net increase in cash and cash equivalents
   
8,196
     
1,456
 
Cash and cash equivalents at beginning of period
   
11,997
     
20,329
 
                 
Cash and cash equivalents at end of period
 
$
20,193
   
$
21,785
 

See accompanying notes to consolidated condensed financial statements.
 
4

SENSIENT TECHNOLOGIES CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)

1. Accounting Policies

In the opinion of Sensient Technologies Corporation (the “Company”), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) which are necessary to present fairly the financial position of the Company as of June 30, 2016, the results of operations and comprehensive income for the three and six months ended June 30, 2016 and 2015, and cash flows for the six months ended June 30, 2016 and 2015.  The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred.

In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU simplifies current guidance, which requires entities to separately present deferred tax assets and deferred tax liabilities as current and noncurrent in a classified balance sheet. This guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. The guidance can be applied retrospectively or prospectively. The Company retrospectively applied this guidance to all prior periods. The Company adopted this ASU in the first quarter of 2016. As a result, the Company reclassified $17.1 million of current deferred tax assets to Deferred Tax Asset Noncurrent as of December 31, 2015. The Company also reclassified $7.3 million of current deferred tax assets to Deferred Tax Liability Noncurrent as of December 31, 2015.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the associated debt liability. Also in August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, to clarify that the Securities and Exchange Commission staff would not object to deferring and presenting debt issuance costs as an asset and subsequently amortizing deferred debt issuance costs ratably over a term of the line-of-credit arrangement. This guidance is effective for interim and annual periods beginning after December 15, 2015. The guidance is required to be retrospectively applied to all prior periods. The Company adopted these ASUs in the first quarter of 2016. As a result, the Company reclassified $0.4 million of debt fees from Other Assets to Long Term Debt as of December 31, 2015.  The Company’s debt fees associated with the Company’s revolving loan agreement remain classified in Other Assets.

In July 2015, the FASB affirmed its proposed one-year deferral of the effective date for ASU No. 2014-09, Revenue from Contracts with Customers. Under this proposal, the requirements of the new standard are effective for interim and annual periods beginning after December 15, 2017. The proposal also permits entities to adopt the standard for interim and annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the expected impact of this standard.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. Under this guidance, inventory that is accounted for using first-in-first-out or average cost method, shall be measured at the lower of cost or net realizable value, as opposed to the lower of cost or market measurement under current guidance. This guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. This new guidance is required to be retrospectively applied to all prior periods. The Company is currently evaluating the expected impact of this standard.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize the lease assets and lease liabilities that arise from leases on the balance sheet and to disclose qualitative and quantitative information about lease transactions. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the expected impact of this standard.
 
5

In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions, primarily the accounting for the associated income taxes. This guidance is effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the expected impact of this standard.

Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2015, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change.

2. Fair Value

Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, defines fair value for financial assets and liabilities, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. As of June 30, 2016, and December 31, 2015, the Company’s assets and liabilities subject to this standard are forward exchange contracts and investments in a money market fund and municipal investments. The fair value of the forward exchange contracts based on current pricing obtained for comparable derivative products (Level 2 inputs) was a liability of $0.1 million and $0.2 million as of June 30, 2016, and December 31, 2015, respectively.  The fair value of the investments based on June 30, 2016, and December 31, 2015, market quotes (Level 1 inputs) was an asset of $1.5 million in both periods and is reported in Other Assets in the Consolidated Condensed Balance Sheets.

The carrying values of the Company’s cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses and short-term borrowings approximated fair values as of June 30, 2016. The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2 inputs). The carrying value of the long-term debt at June 30, 2016, was $601.8 million. The fair value of the long-term debt at June 30, 2016, was $624.4 million.

3. Segment Information

Operating results by segment for the periods presented are as follows:

(In thousands)
 
Flavors &
Fragrances
   
Color
   
Asia
Pacific
   
Corporate
& Other
   
Consolidated
 
Three months ended June 30, 2016:
                             
Revenue from external customers
 
$
201,590
   
$
127,461
   
$
31,785
   
$
-
   
$
360,836
 
Intersegment revenue
   
7,737
     
4,135
     
38
     
-
     
11,910
 
Total revenue
 
$
209,327
   
$
131,596
   
$
31,823
   
$
-
   
$
372,746
 
                                         
Operating income (loss)
 
$
35,307
   
$
28,004
   
$
6,112
   
$
(25,758
)
 
$
43,665
 
Interest expense
   
-
     
-
     
-
     
4,637
     
4,637
 
Earnings (loss) before income taxes
 
$
35,307
   
$
28,004
   
$
6,112
   
$
(30,395
)
 
$
39,028
 
                                         
Three months ended June 30, 2015:
                                       
Revenue from external customers
 
$
198,077
   
$
118,236
   
$
29,696
   
$
-
   
$
346,009
 
Intersegment revenue
   
6,555
     
3,614
     
53
     
-
     
10,222
 
Total revenue
 
$
204,632
   
$
121,850
   
$
29,749
   
$
-
   
$
356,231
 
                                         
Operating income (loss)
 
$
32,526
   
$
25,528
   
$
6,094
   
$
(19,081
)
 
$
45,067
 
Interest expense
   
-
     
-
     
-
     
4,106
     
4,106
 
Earnings (loss) before income taxes
 
$
32,526
   
$
25,528
   
$
6,094
   
$
(23,187
)
 
$
40,961
 
 
6

(In thousands)
 
Flavors &
Fragrances
   
Color
   
Asia
Pacific
   
Corporate
& Other
   
Consolidated
 
Six months ended June 30, 2016:
                             
Revenue from external customers
 
$
392,110
   
$
249,742
   
$
61,452
   
$
-
   
$
703,304
 
Intersegment revenue
   
15,556
     
7,888
     
78
     
-
     
23,522
 
Total revenue
 
$
407,666
   
$
257,630
   
$
61,530
   
$
-
   
$
726,826
 
                                         
Operating income (loss)
 
$
62,817
   
$
55,848
   
$
12,117
   
$
(39,598
)
 
$
91,184
 
Interest expense
   
-
     
-
     
-
     
9,437
     
9,437
 
Earnings (loss) before income taxes
 
$
62,817
   
$
55,848
   
$
12,117
   
$
(49,035
)
 
$
81,747
 
                                         
Six months ended June 30, 2015:
                                       
Revenue from external customers
 
$
397,177
   
$
236,591
   
$
58,467
   
$
-
   
$
692,235
 
Intersegment revenue
   
13,433
     
7,457
     
85
     
-
     
20,975
 
Total revenue
 
$
410,610
   
$
244,048
   
$
58,552
   
$
-
   
$
713,210
 
                                         
Operating income (loss)
 
$
62,985
   
$
51,791
   
$
11,745
   
$
(35,008
)
 
$
91,513
 
Interest expense
   
-
     
-
     
-
     
8,021
     
8,021
 
Earnings (loss) before income taxes
 
$
62,985
   
$
51,791
   
$
11,745
   
$
(43,029
)
 
$
83,492
 
 
Beginning in the first quarter of 2016, the results of operations for the Company’s color business in China, South Korea and Japan, previously reported in the Asia Pacific segment, are now reported in the Color segment. The results for 2015 have been restated to reflect these changes.

The Company evaluates performance based on operating income of the respective segments before restructuring and other costs, interest expense and income taxes. The 2016 and 2015 restructuring and other costs related to continuing operations are reported in the Corporate & Other segment. See Note 10, Restructuring, for more information on the Company’s restructuring activities. The other costs in 2016 are for a long-lived asset impairment charge, see Note 12, Anticipated Divestiture, and the other costs in 2015 are acquisition related costs.

4. Inventories

At June 30, 2016, and December 31, 2015, inventories included finished and in-process products totaling $259.2 million and $291.9 million, respectively, and raw materials and supplies of $122.7 million and $117.3 million, respectively.

5. Retirement Plans

The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows:

   
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
(In thousands)
 
2016
   
2015
   
2016
   
2015
 
                         
Service cost
 
$
503
   
$
661
   
$
1,006
   
$
1,323
 
Interest cost
   
425
     
473
     
845
     
945
 
Expected return on plan assets
   
(300
)
   
(324
)
   
(597
)
   
(646
)
Amortization of actuarial loss
   
55
     
74
     
108
     
147
 
                                 
Total defined benefit expense
 
$
683
   
$
884
   
$
1,362
   
$
1,769
 

6. Shareholders’ Equity

The Company repurchased 47,456 and 311,226 shares of its common stock for an aggregate cost of $3.1 million and $18.5 million during the three and six months ended June 30, 2016, and 1.0 million and 1.9 million shares of its common stock for an aggregate cost of $66.3 million and $127.2 million during the three and six months ended June 30, 2015. The amount of treasury stock purchases reported in the Company’s Consolidated Condensed Statements of Cash Flow represent purchases that have settled within each respective quarter.
 
7

7. Derivative Instruments and Hedging Activity

The Company may use forward exchange contracts and foreign currency denominated debt to manage its exposure to foreign exchange risk by reducing the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company’s primary hedging activities and their accounting treatment are summarized below:

Forward exchange contracts – Certain forward exchange contracts have been designated as cash flow hedges. The Company had $18.8 million and $35.2 million of forward exchange contracts, designated as hedges, outstanding as of June 30, 2016, and December 31, 2015, respectively. For the three months ended June 30, 2016, losses of $0.2 million were reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the earnings impact of the related non-functional asset or liability hedged in the same period. For the three months ended June 30, 2015, the losses reclassified were immaterial.  For the six months ended June 30, 2016 and 2015, losses of $0.7 million and $0.3 million, respectively, were reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the earnings impact of the related non-functional asset or liability hedged in the same period. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges, the results of these transactions are not material to the financial statements.

Net investment hedges – The Company has certain debt denominated in Euros and Swiss Francs. These debt instruments have been designated as partial hedges of the Company’s Euro and Swiss Franc net asset positions. Changes in the fair value of this debt attributable to changes in the spot foreign exchange rate are recorded in foreign currency translation in other comprehensive income (“OCI”). As of June 30, 2016, and December 31, 2015, the total value of the Company’s Euro and Swiss Franc debt was $206.3 million and $162.5 million, respectively.  For the three and six months ended June 30, 2016, the impact of foreign exchange rates on these debt instruments decreased debt by $4.8 million and increased debt by $3.6 million, respectively, which has been recorded as foreign currency translation in OCI.

8. Income Taxes

The effective income tax rates for continuing operations for the quarters ended June 30, 2016 and 2015, were 36.6% and 27.9%, respectively. For the six-month periods ended June 30, 2016 and 2015, the effective income tax rates for continuing operations were 31.6% and 27.8%, respectively. The effective tax rates in both 2016 and 2015 were impacted by restructuring activities, changes in estimates associated with the finalization of prior year foreign and domestic tax items, audit settlements and mix of foreign earnings. The rate in 2016 was also impacted by the deferred tax adjustments related to the anticipated divestiture discussed in Note 12, Anticipated Divestiture.

9. Accumulated Other Comprehensive Income

The following table summarizes the changes in OCI during the three- and six-month periods ended June 30, 2016:

(In thousands)
 
Cash Flow
Hedges (a)
   
Pension
Items (a)
   
Foreign
Currency
Items
   
Total
 
Balance as of March 31, 2016
 
$
(1,028
)
 
$
(4,357
)
 
$
(149,098
)
 
$
(154,483
)
Other comprehensive income before reclassifications
   
828
     
-
     
(18,720
)
   
(17,892
)
Amounts reclassified from OCI
   
170
     
37
     
(3,257
)
   
(3,050
)
Balance as of June 30, 2016
 
$
(30
)
 
$
(4,320
)
 
$
(171,075
)
 
$
(175,425
)
 
8

(In thousands)
 
Cash Flow
Hedges (a)
   
Pension
Items (a)
   
Foreign
Currency
Items
   
Total
 
Balance as of December 31, 2015
 
$
164
   
$
(4,393
)
 
$
(165,833
)
 
$
(170,062
)
Other comprehensive income before reclassifications
   
(743
)
   
-
     
(1,985
)
   
(2,727
)
Amounts reclassified from OCI
   
549
     
73
     
(3,257
)
   
(2,636
)
Balance as of June 30, 2016
 
$
(30
)
 
$
(4,320
)
 
$
(171,075
)
 
$
(175,425
)

(a) Cash Flow Hedges and Pension Items are net of tax.

During the three months ended June 30, 2016, the Company completed the liquidation of a business unit within the Color segment, resulting in the reclassification of the cumulative translation adjustment into net earnings. See Note 11, Discontinued Operations, for additional information.
 
10. Restructuring

The Company incurred restructuring costs in both continuing and discontinued operations. The discussion in this note relates to the combination of both continuing and discontinued operations unless otherwise noted. Restructuring costs related to discontinued operations are recorded in discontinued operations within the Company’s Consolidated Condensed Statements of Earnings and are discussed in Note 11, Discontinued Operations, in more detail.

In March 2014, the Company announced that it was initiating a restructuring plan (“2014 Restructuring Plan” or “Plan”) to eliminate underperforming operations, consolidate manufacturing facilities and improve efficiencies within the Company. The Company determined that it had redundant manufacturing capabilities in both North America and Europe and that it could lower costs and operate more efficiently by consolidating into fewer facilities. Eight facilities were identified for consolidation in the Flavors & Fragrances segment, four in North America and four in Europe. To date, closures have been announced in Indianapolis, Indiana, United States; Cornwall, Mississauga and Halton Hills, Canada; Bremen, Germany; and Milan, Italy. The Company also plans to sell its two European Natural Ingredients facilities, as discussed below. In addition, the Company discontinued one of the businesses in the Color segment, located near Leipzig, Germany, because it did not fit with the Company’s long-term strategic plan and it had generated losses for several years. In 2015, the Company identified additional opportunities to consolidate manufacturing operations at one of the Color segment’s facilities in Europe and eliminate additional positions in the European Flavors & Fragrances businesses.

Based on this Plan, the Company determined that certain long-lived assets associated with the underperforming operations were impaired. The Company reduced the carrying amounts of these assets to their aggregate respective fair values, which were determined based on independent market valuations.    The fair values of the remaining long-lived assets are estimated to be approximately $19 million, which includes certain of the land, buildings and equipment in the assets held for sale, as noted below. Also certain machinery and equipment has been identified to be disposed of at the time of the facility closures and the associated depreciation for these assets has been accelerated. The Company recorded long-lived asset impairments, including the impairment charges and accelerated depreciation of $0.3 million and $3.7 million, during the three months ended June 30, 2016 and 2015, respectively, and $0.7 million and $7.5 million during the six months ended June 30, 2016 and 2015, respectively. Since initiating the Plan, the Company has recorded $85.5 million of long-lived asset impairments, including the impairment charges and accelerated depreciation. In addition, certain intangible assets, inventory and other current assets were also determined to be impaired and were written down.

The Company has also incurred employee separation and other restructuring costs as a result of this Plan. The Company anticipates that it will reduce headcount by approximately 400 positions at the affected facilities, primarily in the Flavors & Fragrances segment, related to direct and indirect labor at manufacturing sites. As of June 30, 2016, 272 positions had been eliminated as a result of this Plan.
 
9

As mentioned above, the Company plans to sell its European Natural Ingredients business, a business in the Flavors & Fragrances segment. This business has two facilities, located in Marchais, France and Elburg, the Netherlands. The European Natural Ingredients business has not generated significant profits for several years and it does not fit with the Company’s long-term strategic plan. The Company is currently working to sell this business and anticipates selling the business within the next year. Upon the completion of a sale of this business, the Company anticipates recognizing an additional non-cash loss of approximately $13 million.

As of June 30, 2016, the Company has recorded assets held for sale of land, buildings and equipment of $9.4 million related to the 2014 Restructuring Plan, and inventory, receivables and other assets of $18.8 million related to the anticipated sale of the European Natural Ingredients business. The Company also has $3.1 million of liabilities held for sale related to the anticipated sale of the European Natural Ingredients business.

The Company recorded total restructuring income of $0.2 million (as a result of a pre-tax gain from discontinued operations in connection with liquidation of the Leipzig entity, as discussed below) for the three months ended June 30, 2016 and restructuring costs of $9.7 million for the three months ended June 30, 2015, in accordance with GAAP and based on an internal review of the affected facilities and consultation with legal and other advisors, and restructuring costs of $3.1 million and $16.9 million for the six months ended June 30, 2016 and 2015, respectively. Since initiating the 2014 Restructuring Plan, the Company has incurred $144.6 million of restructuring costs through June 30, 2016. The Company expects to incur approximately $13 million of additional restructuring costs by the end of 2016 and approximately $4 million of restructuring costs in 2017.

The Company expects that the closure and sale of these operations will significantly lower the Company’s operating costs over the next few years. Upon initiating the Plan, the Company estimated the annual cost reductions to be approximately $30 million, when fully implemented. The U.S. dollar has strengthened considerably since the initiation of the Plan, and as a result the dollar value of the cost savings has been reduced. In 2015, the Company identified additional cost savings opportunities, and as a result of these actions, the current estimate of annual cost savings is approximately $27 million. The Company has also implemented price increases to further mitigate the impact of foreign currency movements. The Company has already realized cost savings of approximately $3 million in 2014 and an additional $9 million in 2015.  The Company expects to realize approximately $6 million to $7 million of incremental savings in 2016, of which $2.1 million and $4.1 million were realized during the three and six months ended June 30, 2016, respectively. The remaining savings are expected to be realized in 2017.

In connection with the 2014 Restructuring Plan, the Company approved a plan to dispose of a certain business, located near Leipzig, Germany, within the Color segment. Production ceased in 2014 and the business met the criteria to be reported as a discontinued operation. During the current quarter, the facility and remaining assets were sold for a gain of $0.2 million. In addition, the entity was liquidated resulting in a reclassification of the cumulative translation adjustment related to that entity of $3.3 million into net earnings. The pre-tax gain from discontinued operations, which includes restructuring costs, was $3.4 million during both the three and six months ended June 30, 2016.

The Company evaluates performance based on operating income of each segment before restructuring and other costs. All restructuring and other costs related to continuing operations are recorded in the Corporate & Other segment. The following table summarizes the restructuring expense by segment and discontinued operations for the three and six months ended June 30, 2016 and 2015, respectively:
 
10

   
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
(In thousands)
 
2016
   
2015
   
2016
   
2015
 
                         
Flavors & Fragrances
 
$
2,925
   
$
7,191
   
$
5,867
   
$
13,020
 
Color
   
93
     
1,422
     
132
     
1,583
 
Asia Pacific
   
-
     
-
     
-
     
58
 
Corporate & Other
   
257
     
1,009
     
618
     
2,076
 
                                 
Total Continuing Operations
   
3,275
     
9,622
     
6,617
     
16,737
 
                                 
Discontinued Operations
   
(3,485
)
   
85
     
(3,485
)
   
114
 
                                 
Total Restructuring
 
$
(210
)
 
$
9,707
   
$
3,132
   
$
16,851
 
 
The Company recorded restructuring costs in continuing operations for the three and six months ended June 30, 2016, as follows:

Three Months Ended June 30, 2016

(In thousands)
 
Selling &
Administrative
   
Cost of
Products Sold
   
Total
 
Employee separation
 
$
319
   
$
-
   
$
319
 
Long-lived asset impairment
   
262
     
-
     
262
 
Write-down of inventory
   
-
     
166
     
166
 
Other restructuring costs(1)
   
2,528
     
-
     
2,528
 
                         
Total
 
$
3,109
   
$
166
   
$
3,275
 
 
Six Months Ended June 30, 2016

(In thousands)
 
Selling &
Administrative
   
Cost of
Products Sold
   
Total
 
Employee separation
 
$
450
   
$
-
   
$
450
 
Long-lived asset impairment
   
733
     
-
     
733
 
Write-down of inventory
   
-
     
810
     
810
 
Other restructuring costs(1)
   
4,624
     
-
     
4,624
 
                         
Total
 
$
5,807
   
$
810
   
$
6,617
 
 
(1) Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs.
 
11

The Company recorded restructuring costs in continuing operations for the three and six months ended June 30, 2015, as follows:

Three Months Ended June 30, 2015

(In thousands)
 
Selling &
Administrative
   
Cost of
Products Sold
   
Total
 
Employee separation
 
$
1,796
   
$
-
   
$
1,796
 
Long-lived asset impairment
   
3,665
     
-
     
3,665
 
Write-down of inventory
   
-
     
140
     
140
 
Other restructuring costs(1)
   
4,021
     
-
     
4,021
 
                         
Total
 
$
9,482
   
$
140
   
$
9,622
 
 
Six Months Ended June 30, 2015

(In thousands)
 
Selling &
Administrative
   
Cost of
Products Sold
   
Total
 
Employee separation
 
$
3,704
   
$
-
   
$
3,704
 
Long-lived asset impairment
   
7,480
     
-
     
7,480
 
Gain on asset sales
   
(1,301
)
   
-
     
(1,301
)
Write-down of inventory
   
-
     
281
     
281
 
Other restructuring costs(1)
   
6,573
     
-
     
6,573
 
                         
Total
 
$
16,456
   
$
281
   
$
16,737
 

(1) Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs.

The following table summarizes the accrual activities for the restructuring activities for the six months ended June 30, 2016:

 
(In thousands)
 
Employee
Separations
   
Other
   
Total
 
Balance as of December 31, 2015
 
$
10,260
   
$
912
   
$
11,172
 
Expense activity
   
450
     
4,624
     
5,074
 
Cash spent
   
(2,574
)
   
(4,718
)
   
(7,292
)
Translation adjustment
   
145
     
-
     
145
 
Balance as of June 30, 2016
 
$
8,281
   
$
818
   
$
9,099
 

11. Discontinued Operations

In connection with the 2014 Restructuring Plan, the Company approved a plan to dispose of a business unit within the Color segment, located near Leipzig, Germany. Since 2014, the business has met the criteria to be presented as a discontinued operation as established in ASC Subtopic 205-20, Discontinued Operations. The results of this business have been reported as a discontinued operation in the Consolidated Condensed Statements of Earnings for all periods presented. During the current quarter, the facility and remaining assets were sold for a gain of $0.2 million. In addition, the entity was liquidated resulting in a reclassification of the cumulative translation adjustment of $3.3 million into net earnings. The pre-tax gain from discontinued operations, which includes restructuring costs, was $3.4 million in both the three and six months ended June 30, 2016.
 
12

The following table summarizes the discontinued operation’s results for the three and six months ended June 30, 2016 and 2015:

   
Three Months Ended
June 30,
   
Six Months Ended
June 30,
 
(In thousands)
 
2016
   
2015
   
2016
   
2015
 
                         
Revenue
 
$
-
   
$
-
   
$
-
   
$
187
 
Gain (Loss) from discontinued operations before income taxes
   
3,441
     
(134
)
   
3,410
     
(428
)
Income tax (expense) benefit
   
(76
)
   
42
     
(67
)
   
127
 
Gain (Loss) from discontinued operations, net of tax
 
$
3,365
   
$
(92
)
 
$
3,343
   
$
(301
)

12. Anticipated Divestiture

During the three months ended June 30, 2016, the Board of Directors authorized management to explore strategic alternatives for a facility and certain related business lines within the Flavors & Fragrances segment in Europe. The Company anticipates a sale within the next year and has recorded assets held for sale of inventory and other assets of $22.2 million and $1.4 million of liabilities held for sale related to the anticipated sale. In addition, the Company has recorded an impairment charge of $10.3 million during the three months ended June 30, 2016 in selling and administrative expense, reducing the carrying value of the long-lived assets for this facility to zero. An estimate of the fair value of this business less cost to sell was determined to be lower than its carrying value. The difference between the fair value and its carrying value exceeded the existing net book value of the long-lived assets. If a sale is completed, the Company expects to recognize an additional non-cash loss of approximately $9.1 million.

13. Commitments and Contingencies

U.S. Equal Employment Opportunity Commission Civil Complaint
On September 21, 2015, the U.S. Equal Employment Opportunity Commission (EEOC) filed a civil complaint against Sensient Natural Ingredients LLC (SNI) in the U.S. District Court for the Eastern District of California.  SNI is a wholly owned subsidiary of the Company. The EEOC’s complaint alleges that SNI failed to comply with the Americans with Disabilities Act (ADA), as amended, when it terminated five employees in 2011.  The EEOC seeks to enjoin SNI from engaging in employment practices that discriminate on the basis of disability; asks the Court to order SNI to implement policies, practices, and programs to ensure it does not violate the ADA; and requests back pay with prejudgment interest, reinstatement, front pay, compensation for past and future pecuniary and non-pecuniary losses, and punitive damages on behalf of the five named former employees and any similarly aggrieved individuals.  Recoverable compensatory and punitive damages are subject to statutory caps.  The complaint does not request a specific damages amount.  To date, the EEOC has provided the Company with a list of 13 additional potentially aggrieved former employees not listed in the complaint who may have been terminated in violation of the ADA during the relevant time period.  In its discovery responses, the EEOC has identified 3 of those 13 former employees as additional claimants for whom the Agency seeks relief.  The Parties are currently engaged in the discovery process.

The Company is vigorously investigating the facts alleged in the complaint to determine what exposure SNI may have.  Since 2013, SNI’s on-site human resources representatives have worked closely with both Company counsel and outside labor and employment counsel to ensure that all policies, procedures and actions, including terminations, comply with applicable law.  At this early stage, it is not possible to assess the probability of any legal or financial exposure.

Other Claims and Litigation
The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period.
 
13

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

The following discussion of the financial condition and results of operations excludes the results of discontinued operations unless otherwise indicated.

Revenue
Revenue was $360.8 million and $346.0 million for the three months ended June 30, 2016 and 2015, respectively, an increase of 4.3%. Revenue was $703.3 million and $692.2 million for the six months ended June 30, 2016 and 2015, respectively, an increase of 1.6%. The impact of foreign exchange rates decreased consolidated revenue by approximately 1.8% and 2.6% for the three and six months ended June 30, 2016, respectively.

Gross Profit
The Company’s gross margin was 34.5% and 34.1% for the three months ended June 30, 2016 and 2015, respectively. Included in the cost of sales are $0.2 million and $0.1 million of restructuring costs for the three months ended June 30, 2016 and 2015, respectively. The increase in gross margin for the three months ended June 30, 2016, is primarily a result of higher volumes, mainly in the Color segment, and savings associated with the 2014 Restructuring Plan of $1.9 million. Restructuring costs did not have a significant impact on gross margin in either period.

Gross margin was 34.2% and 34.0% for the six months ended June 30, 2016 and 2015, respectively, an increase of 20 basis points. Included in the cost of sales are $0.8 million and $0.3 million of restructuring costs for the six months ended June 30, 2016 and 2015, respectively. The increase in gross margin for the six months ended June 30, 2016, is primarily a result of higher volumes, mainly in the Color segment, and savings associated with the 2014 Restructuring Plan of $3.5 million. Restructuring costs did not have a significant impact on gross margin in either period.

Selling and Administrative Expense
Selling and administrative expenses as a percent of revenue were 22.4% and 21.1% for three months ended June 30, 2016 and 2015, respectively. Restructuring and other costs (see the discussions below regarding, Restructuring, Anticipated Divestiture and Non-GAAP Financial Measures) of $13.4 million and $10.3 million were included in selling and administrative expenses for the three months ended June 30, 2016 and 2015, respectively. For the three months ended June 30, 2016, the increase in selling and administrative expenses as a percent of revenue is primarily due to an increase in restructuring and other costs and an increase in performance based executive compensation of $2.0 million partially offset by a sale of an import right in the Flavors & Fragrances segment of $2.7 million. Restructuring and other costs increased selling and administrative expense as a percent of revenue by 370 basis points and 300 basis points for the three months ended June 30, 2016 and 2015, respectively.

Selling and administrative expense as a percent of revenue were 21.2% and 20.8% for the six months ended June 30, 2016 and 2015, respectively. Restructuring and other costs of $16.1 million and $17.3 million were included in selling and administrative expenses for the six months ended June 30, 2016 and 2015, respectively. For the six months ended June 30, 2016, the increase in selling and administrative expenses as a percent of revenue is primarily due to an increase in performance based executive compensation of $3.2 million partially offset by a sale of an import right in the Flavors & Fragrances segment of $2.2 million. Restructuring and other costs increased selling and administrative expenses as a percent of revenue by 230 basis points and 250 basis points for the six months ended June 30, 2016 and 2015, respectively.

Operating Income
Operating income was $43.7 million and $45.1 million for the three months ended June 30, 2016 and 2015, respectively. Operating margins were 12.1% and 13.0% for the three months ended June 30, 2016 and 2015, respectively. Restructuring and other costs reduced operating margins by 380 basis points and 310 basis points during the three months ended June 30, 2016 and 2015, respectively.

Operating income was $91.2 million and $91.5 million for the six months ended June 30, 2016 and 2015, respectively. Operating margins were 13.0% and 13.2% for the six months ended June 30, 2016 and 2015, respectively. Restructuring and other costs reduced operating margins by 240 basis points and 260 basis points during the six months ended June 30, 2016 and 2015, respectively.
 
14

Interest Expense
Interest expense was $4.6 million and $4.1 million for the three months ended June 30, 2016 and 2015, respectively, and $9.4 million and $8.0 million for the six months ended June 30, 2016 and 2015, respectively. The increase in the expense in both the three and six-month periods is primarily due to the increase in the average debt outstanding which is partially offset by the lower average interest rates.

Income Taxes
The effective income tax rates for continuing operations for the quarters ended June 30, 2016 and 2015, were 36.6% and 27.9%, respectively. For the six-month periods ended June 30, 2016 and 2015, the effective income tax rates were 31.6% and 27.8%, respectively. The effective tax rates in both 2016 and 2015 were impacted by restructuring activities, changes in estimates associated with the finalization of prior year foreign and domestic tax items, audit settlements and mix of foreign earnings. The rate in 2016 was also impacted by the deferred tax adjustments related to the anticipated divestiture discussed below.

Restructuring
The Company incurred restructuring costs in both continuing and discontinued operations. The discussion in this section relates to the combination of both continuing and discontinued operations. Restructuring costs related to discontinued operations are recorded in discontinued operations within the Company’s Consolidated Condensed Statements of Earnings and are discussed in Note 11, Discontinued Operations, in more detail.

In March 2014, the Company announced that it was initiating a restructuring plan (“2014 Restructuring Plan” or “Plan”) to eliminate underperforming operations, consolidate manufacturing facilities and improve efficiencies within the Company. The Company determined that it had redundant manufacturing capabilities in both North America and Europe and that it could lower costs and operate more efficiently by consolidating into fewer facilities. Eight facilities were identified for consolidation in the Flavors & Fragrances segment, four in North America and four in Europe. To date, closures have been announced in Indianapolis, Indiana, United States; Cornwall, Mississauga and Halton Hills, Canada; Bremen, Germany; and Milan, Italy. The Company also plans to sell its two European Natural Ingredients facilities, as discussed below. In addition, the Company discontinued one of the businesses in the Color segment, located near Leipzig, Germany, because it did not fit with the Company’s long-term strategic plan and it had generated losses for several years. In 2015, the Company identified additional opportunities to consolidate manufacturing operations at one of the Color segment’s facilities in Europe and eliminate additional positions in the European Flavors & Fragrances businesses.

Based on this Plan, the Company determined that certain long-lived assets associated with the underperforming operations were impaired. The Company reduced the carrying amounts of these assets to their aggregate respective fair values, which were determined based on independent market valuations.    The fair values of the remaining long-lived assets are estimated to be approximately $19 million, which includes certain of the land, buildings and equipment in the assets held for sale, as noted below. Also certain machinery and equipment has been identified to be disposed of at the time of the facility closures and the associated depreciation for these assets has been accelerated. The Company recorded long-lived asset impairments, including the impairment charges and accelerated depreciation of $0.3 million and $3.7 million, during the three months ended June 30, 2016 and 2015, respectively, and $0.7 million and $7.5 million during the six months ended June 30, 2016 and 2015, respectively. Since initiating the Plan, the Company has recorded $85.5 million of long-lived asset impairments, including the impairment charges and accelerated depreciation. In addition, certain intangible assets, inventory and other current assets were also determined to be impaired and were written down.

The Company has also incurred employee separation and other restructuring costs as a result of this Plan. The Company anticipates that it will reduce headcount by approximately 400 positions at the affected facilities, primarily in the Flavors & Fragrances segment, related to direct and indirect labor at manufacturing sites. As of June 30, 2016, 272 positions had been eliminated as a result of this Plan.

As mentioned above, the Company plans to sell its European Natural Ingredients business, a business in the Flavors & Fragrances segment. This business has two facilities, located in Marchais, France and Elburg, the Netherlands. The European Natural Ingredients business has not generated significant profits for several years and it does not fit with the Company’s long-term strategic plan. The Company is currently working to sell this business and anticipates selling the business within the next year. Upon the completion of a sale of this business, the Company anticipates recognizing an additional non-cash loss of approximately $13 million.
 
15

As of June 30, 2016, the Company has recorded assets held for sale of land, buildings and equipment of $9.4 million related to the 2014 Restructuring Plan, and inventory, receivables and other assets of $18.8 million related to the anticipated sale of the European Natural Ingredients business. The Company also has $3.1 million of liabilities held for sale related to the anticipated sale of the European Natural Ingredients business.

The Company recorded total restructuring income of $0.2 million (as a result of a pre-tax gain from discontinued operations in connection with liquidation of the Leipzig entity, as discussed below) for the three months ended June 30, 2016 and restructuring costs of $9.7 million for the three months ended June 30, 2015, in accordance with GAAP and based on an internal review of the affected facilities and consultation with legal and other advisors, and restructuring costs of $3.1 million and $16.9 million for the six months ended June 30, 2016 and 2015, respectively. Since initiating the 2014 Restructuring Plan, the Company has incurred $144.6 million of restructuring costs through June 30, 2016. The Company expects to incur approximately $13 million of additional restructuring costs by the end of 2016 and approximately $4 million of restructuring costs in 2017.

The Company expects that the closure and sale of these operations will significantly lower the Company’s operating costs over the next few years. Upon initiating the Plan, the Company estimated the annual cost reductions to be approximately $30 million, when fully implemented. The U.S. dollar has strengthened considerably since the initiation of the Plan, and as a result the dollar value of the cost savings has been reduced. In 2015, the Company identified additional cost savings opportunities, and as a result of these actions, the current estimate of annual cost savings is approximately $27 million. The Company has also implemented price increases to further mitigate the impact of foreign currency movements. The Company has already realized cost savings of approximately $3 million in 2014 and an additional $9 million in 2015.  The Company expects to realize approximately $6 million to $7 million of incremental savings in 2016, of which $2.1 million and $4.1 million were realized during the three and six months ended June 30, 2016, respectively. The remaining savings are expected to be realized in 2017.

In connection with the 2014 Restructuring Plan, the Company approved a plan to dispose of a certain business, located near Leipzig, Germany, within the Color segment. Production ceased in 2014 and the business met the criteria to be reported as a discontinued operation. During the current quarter, the facility and remaining assets were sold for a gain of $0.2 million. In addition, the entity was liquidated resulting in a reclassification of the cumulative translation adjustment related to that entity of $3.3 million into net earnings. The pre-tax gain from discontinued operations, which includes restructuring costs, was $3.4 million during both the three and six months ended June 30, 2016.

Anticipated Divestiture
During the three months ended June 30, 2016, the Board of Directors authorized management to explore strategic alternatives for a facility and certain related business lines within the Flavors & Fragrances segment in Europe. The Company anticipates a sale within the next year and has recorded assets held for sale of inventory and other assets of $22.2 million and $1.4 million of liabilities held for sale related to the anticipated sale. In addition, the Company has recorded an impairment charge of $10.3 million during the three months ended June 30, 2016 in selling and administrative expense, reducing the carrying value of the long-lived assets for this facility to zero. An estimate of the fair value of this business less cost to sell was determined to be lower than its carrying value. The difference between the fair value and its carrying value exceeded the existing net book value of the long-lived assets. If a sale is completed, the Company expects to recognize an additional non-cash loss of approximately $9.1 million.

NON-GAAP FINANCIAL MEASURES

Within the following tables, the Company reports certain non-GAAP financial measures, including: (1) adjusted operating income, adjusted net earnings and adjusted diluted EPS from continuing operations (which exclude restructuring and other costs) and (2) percentage changes in revenue, operating income, diluted EPS, adjusted operating income, and adjusted diluted EPS on a local currency basis (which eliminate the effects that result from translating its international operations into U.S. dollars) The other costs in 2016 are for the long-lived asset impairment charge discussed under “Anticipated Divestiture” discussed above, and the other costs in 2015 are acquisition related costs.
 
16

The Company has included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this report. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends, and the Company believes the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

   
Three Months Ended June 30,
   
Six Months Ended June 30,
 
 (in thousands except per share amounts)  
2016
   
2015
   
%
Change
   
2016
   
2015
   
%
Change
 
Operating income from continuing operations (GAAP)
 
$
43,665
   
$
45,067
     
-3.1
%
 
$
91,184
   
$
91,513
     
-0.4
%
Restructuring - Cost of products sold
   
166
     
140
             
810
     
281
         
Restructuring - Selling and administrative
   
3,109
     
9,482
             
5,807
     
16,456
         
Other  - Selling and administrative
   
10,292
     
855
             
10,292
     
855
         
Adjusted operating income
 
$
57,232
   
$
55,544
     
3.0
%
 
$
108,093
   
$
109,105
     
-0.9
%
                                                 
Net earnings from continuing operations (GAAP)
 
$
24,751
   
$
29,542
     
-16.2
%
 
$
55,944
   
$
60,277
     
-7.2
%
Restructuring and other, before tax
   
13,567
     
10,477
             
16,909
     
17,592
         
Tax impact of restructuring and other
   
(738
)
   
(2,766
)
           
(1,600
)
   
(4,363
)
       
Adjusted net earnings
 
$
37,580
   
$
37,253
     
0.9
%
 
$
71,253
   
$
73,506
     
-3.1
%
                                                 
Diluted EPS from continuing operations (GAAP)
 
$
0.55
   
$
0.64
     
-14.1
%
 
$
1.25
   
$
1.28
     
-2.3
%
Restructuring and other, net of tax
   
0.29
     
0.17
             
0.34
     
0.28
         
Adjusted diluted EPS
 
$
0.84
   
$
0.80
     
5.0
%
 
$
1.59
   
$
1.56
     
1.9
%

The following table summarizes the percentage change for the three and six months ended June 30, 2016, results compared to the three and six months ended June 30, 2015, results in the respective financial measures.

   
Three Months Ended June 30, 2016
   
Six Months Ended June 30, 2016
 
Revenue
 
Total
   
Foreign
Exchange
Rates
   
Local
Currency
   
Total
   
Foreign
Exchange
Rates
   
Local
Currency
 
Flavors & Fragrances
   
2.3
%
   
(1.2
%)
   
3.4
%
   
(0.7
%)
   
(1.8
%)
   
1.1
%
Color
   
8.0
%
   
(2.6
%)
   
10.6
%
   
5.6
%
   
(3.6
%)
   
9.2
%
Asia Pacific
   
7.0
%
   
(3.1
%)
   
10.1
%
   
5.1
%
   
(4.6
%)
   
9.7
%
Total Revenue
   
4.3
%
   
(1.8
%)
   
6.1
%
   
1.6
%
   
(2.6
%)
   
4.2
%
                                                 
Operating Income from Continuing Operations
                                               
Flavors & Fragrances
   
8.6
%
   
(1.4
%)
   
9.9
%
   
(0.3
%)
   
(1.7
%)
   
1.4
%
Color
   
9.7
%
   
(1.5
%)
   
11.2
%
   
7.8
%
   
(2.6
%)
   
10.4
%
Asia Pacific
   
0.3
%
   
(3.6
%)
   
3.9
%
   
3.2
%
   
(5.2
%)
   
8.3
%
Corporate & Other
   
35.0
%
   
(1.5
%)
   
36.5
%
   
13.1
%
   
(1.9
%)
   
15.0
%
Operating Income from Continuing Operations
   
(3.1
%)
   
(1.7
%)
   
(1.4
%)
   
(0.4
%)
   
(2.5
%)
   
2.2
%
                                                 
Diluted EPS from Continuing Operations
   
(14.1
%)
   
(1.6
%)
   
(12.5
%)
   
(2.3
%)
   
(2.3
%)
   
0.0
%
                                                 
Adjusted Operating Income
   
3.0
%
   
(1.9
%)
   
4.9
%
   
(0.9
%)
   
(2.7
%)
   
1.8
%
Adjusted Diluted EPS
   
5.0
%
   
(1.3
%)
   
6.2
%
   
1.9
%
   
(2.6
%)
   
4.5
%
 
17

SEGMENT INFORMATION

The Company determines its operating segments based on information utilized by the chief operating decision maker to allocate resources and assess performance. Segment performance is evaluated on operating income of the respective business units before restructuring and other costs, which are reported in the Corporate & Other segment, interest expense and income taxes.

Beginning in the first quarter of 2016, the results of operations for the Company’s color business in China, South Korea and Japan, previously reported in the Asia Pacific segment, are now reported in the Color segment. The results for 2015 have been restated to reflect these changes.

Flavors & Fragrances
Flavors & Fragrances segment revenue was $209.3 million and $204.6 million for the three months ended June 30, 2016 and 2015, respectively, an increase of 2.3%. Foreign exchange rates reduced segment revenue by 1.2%. The increase in segment revenue was primarily due to higher revenue in Europe ($4.8 million). The higher revenue in Europe was primarily due to higher volumes ($4.2 million) and higher selling prices ($0.8 million).

Flavors & Fragrances segment operating income was $35.3 million and $32.5 million for the three months ended June 30, 2016 and 2015, respectively, an increase of 8.6%. Foreign exchange rates reduced segment operating income by 1.4%. The higher segment operating income was due to higher operating income in North America ($1.9 million) and Europe ($1.0 million). The higher operating income in North America was primarily due to higher selling prices ($4.1 million), profit on the sale of an import right ($2.7 million), savings associated with the 2014 Restructuring Plan ($1.0 million) and lower manufacturing and other costs ($1.5 million) offset by higher raw material costs ($4.9 million) and volume and product mix ($2.3 million). The higher operating income in Europe was primarily due to volume and product mix ($1.3 million), savings associated with the 2014 Restructuring Plan ($0.9 million) and higher selling prices ($0.8 million), offset by higher manufacturing and other costs ($2.0 million). Segment operating income as a percent of revenue was 16.9% in the current quarter and 15.9% in the prior year’s comparable quarter.

Flavors & Fragrances segment revenue was $407.7 million and $410.6 million for the six months ended June 30, 2016 and 2015, respectively, a decrease of 0.7%. Foreign exchange rates reduced segment revenue by 1.8%. The decrease in segment revenue was primarily due to lower revenue in North America ($3.9 million) partially offset by higher revenue in Europe ($0.9 million). The lower revenue in North America was primarily a result of lower volumes ($10.8 million), and the impact of unfavorable exchange rates ($2.3 million) offset by higher selling prices ($9.1 million). The higher revenue in Europe was primarily a result of higher selling prices ($1.7 million) and higher volumes ($1.4 million) partially offset by the impact of unfavorable exchange rates ($2.1 million).

Flavors & Fragrances segment operating income was $62.8 million and $63.0 million for the six months ended June 30, 2016 and 2015, respectively, a decrease of 0.3%. Foreign exchange rates reduced segment operating income by 1.7%. The lower segment operating income was due to lower operating income in Europe ($0.8 million) partially offset by higher operating income in North America ($0.7 million). The lower operating income in Europe was primarily a result of higher manufacturing and other costs ($5.8 million) and higher raw material costs ($0.6 million) offset by savings associated with the 2014 Restructuring Plan ($2.2 million), volumes and product mix ($1.8 million) and higher selling prices ($1.7 million). The higher operating income in North America was primarily due to higher selling prices ($9.1 million), profit on the sale of an import right ($2.2 million), savings associated with the 2014 Restructuring Plan ($1.6 million) and lower manufacturing and other costs ($4.0 million) offset by higher raw material costs ($9.6 million) and volume and product mix ($6.6 million). Segment operating income as a percent of revenue was 15.4% in the current period and 15.3% in the prior year’s comparable period.

Color
Segment revenue for the Color segment was $131.6 million and $121.9 million for the three months ended June 30, 2016 and 2015, respectively, an increase of 8.0%. Foreign exchange rates reduced segment revenue by 2.6%. The higher segment revenue was due to higher sales of non-food colors ($7.8 million) and food and beverage colors ($1.9 million). The higher sales of non-food colors were primarily due to higher volumes ($8.8 million), primarily in cosmetic colors and specialty inks, partially offset by the impact of unfavorable exchange rates ($0.8 million). The higher sales of food and beverage colors was primarily a result of higher volumes ($2.6 million) and higher selling prices ($1.7 million) partially offset by the impact of unfavorable exchange rates ($2.3 million).
 
18

Segment operating income for the Color segment was $28.0 million and $25.5 million for the three months ended June 30, 2016 and 2015, respectively, an increase of 9.7%. Foreign exchange rates reduced segment operating income by 1.5%. The higher segment operating income was primarily due to higher profit for non-food colors ($2.6 million) offset by lower profit for food and beverage colors ($0.2 million). The higher operating income for non-food colors is primarily due to higher volumes and product mix ($4.0 million) partially offset by higher manufacturing and other costs ($1.6 million). The lower operating income in food and beverage colors is primarily a result of higher raw material costs ($1.5 million), higher manufacturing and other costs ($1.1 million) and the impact of unfavorable exchange rates ($0.4 million) offset by favorable pricing ($1.7 million) and volume and product mix ($1.2 million). Segment operating income as a percent of revenue was 21.3% in the current quarter and 20.9% in the prior year’s comparable quarter.

Segment revenue for the Color segment was $257.6 million and $244.0 million for the six months ended June 30, 2016 and 2015, respectively, an increase of 5.6%. Foreign exchange rates reduced segment revenue by 3.6%. The higher segment revenue was due to higher sales of non-food colors ($13.3 million) and food and beverage colors ($0.3 million). The higher sales of non-food colors were primarily due to higher volumes ($15.6 million), primarily in cosmetic colors and specialty inks, and higher selling prices ($0.4 million) offset by the impact of unfavorable exchange rates ($2.7 million). The higher sales of food and beverage colors was primarily a result of higher volumes ($2.2 million) and higher selling prices ($4.2 million) offset by the impact of unfavorable exchange rates ($6.2 million).

Segment operating income for the Color segment was $55.8 million and $51.8 million for the six months ended June 30, 2016 and 2015, respectively, an increase of 7.8%. Foreign exchange rates reduced segment operating income by 2.6%. The higher segment operating income was primarily due to higher profit for non-food colors ($3.8 million) and food and beverage colors ($0.3 million). The higher operating income for non-food colors was primarily due to volumes and product mix ($7.0 million) and higher selling prices ($0.4 million) partially offset by higher manufacturing and other costs ($3.2 million) and the impact of unfavorable exchange rates ($0.4 million). The higher operating income for food and beverage colors was primarily a result of higher selling prices ($4.2 million) and volume and product mix ($1.3 million) offset by higher raw material costs ($3.3 million), the impact of unfavorable exchange rates ($1.0 million) and higher manufacturing and other costs ($0.9 million).  Segment operating income as a percent of revenue was 21.7% in the current period and 21.2% in the prior year’s comparable period.

Asia Pacific
Segment revenue for the Asia Pacific segment was $31.8 million and $29.7 million for the three months ended June 30, 2016 and 2015, respectively, an increase of 7.0%. Foreign exchange rates reduced segment revenue by 3.1%. Higher volumes ($2.3 million) and higher selling prices ($0.7 million) were offset by the impact of unfavorable foreign exchange rates ($0.9 million).

Segment operating income for the Asia Pacific segment was $6.1 million in both the three months ended June 30, 2016 and 2015.  Foreign exchange rates reduced segment operating income by 3.6%. The increase in segment operating income was primarily a result of volumes and product mix ($1.6 million) and higher selling prices ($0.7 million) offset by higher manufacturing and other costs ($1.9 million), higher raw material costs ($0.2 million) and the impact of unfavorable foreign exchange rates ($0.2 million).  Segment operating income as a percent of revenue was 19.2% in the current quarter and 20.5% in the prior year’s comparable quarter.

Segment revenue for the Asia Pacific segment was $61.5 million and $58.6 million for the six months ended June 30, 2016 and 2015, respectively, an increase of 5.1%. Foreign exchange rates reduced segment revenue by 4.6%. Higher volumes ($4.3 million) and higher selling prices ($1.4 million) were offset by the impact of unfavorable foreign exchange rates ($2.7 million).

Segment operating income for the Asia Pacific segment was $12.1 million and $11.7 for the six months ended June 30, 2016 and 2015, respectively.  Foreign exchange rates reduced segment operating income by 5.2%. The higher segment operating income was primarily a result of volumes and product mix ($2.5 million) and higher selling prices ($1.4 million) offset by higher manufacturing and other costs ($2.9 million) and the impact of unfavorable foreign exchange rates ($0.6 million).  Segment operating income as a percent of revenue was 19.7% and 20.1% for the six months ended June 30, 2016 and 2015, respectively.
 
19

Corporate & Other
The Corporate & Other operating loss was $25.8 million and $19.1 million for the three months ended June 30, 2016 and 2015, respectively, an increase of 35.0%. The higher operating loss was primarily a result of higher restructuring and other costs ($3.1 million), higher performance based compensation ($2.0 million) and higher professional services ($1.3 million). Restructuring and other costs were $13.6 million and $10.5 million for the three months ended June 30, 2016 and 2015, respectively.

The Corporate & Other operating loss was $39.6 million and $35.0 million for the six months ended June 30, 2016 and 2015, respectively, an increase of 13.1%. The higher operating loss was primarily a result of higher performance based compensation ($3.2 million) and higher professional services ($2.3 million) partially offset by lower restructuring and other costs ($0.7 million). Restructuring and other costs were $16.9 million and $17.6 million for the six months ended June 30, 2016 and 2015, respectively.

LIQUIDITY AND FINANCIAL CONDITION

Financial Condition
The Company’s financial position remains strong. The Company is in compliance with its loan covenants calculated in accordance with applicable agreements as of June 30, 2016. The Company expects its cash flow from operations and its available debt capacity can be used to meet future cash requirements for operations, capital expenditures, dividend payments, acquisitions and stock repurchases.

Cash Flows from Operating Activities
Net cash provided by operating activities was $100.8 million and $76.9 million for the six months ended June 30, 2016 and 2015, respectively. The higher cash provided by operating activities is primarily due to increased cash earnings and favorable changes in working capital.

Cash Flows from Investing Activities
Net cash used in investing activities was $33.4 million and $32.8 million for the first six months of 2016 and 2015, respectively. Capital expenditures were $34.3 million and $37.0 million in the first six months of 2016 and 2015, respectively. During the three months ended June 30, 2016, the Company sold one facility as a result of the Company’s 2014 Restructuring Plan for $0.8 million and during the first quarter of 2015, two facilities were sold as a result of the Company’s 2014 Restructuring Plan for combined net proceeds of $12.6 million. During the three months ended June 30, 2015, the Company completed the acquisition of Xennia for $8.4 million.

Cash Flows from Financing Activities
Net cash used in financing activities was $60.6 million and $36.0 million for the first six months of 2016 and 2015, respectively. The Company repurchased $21.1 million and $123.1 million of Company stock in the first six months of 2016 and 2015, respectively. Net debt decreased in the first six months of 2016 by $15.6 million and increased by $110.1 million in 2015, primarily to fund the repurchase of Company stock. For purposes of the cash flow statement, net changes in debt exclude the impact of foreign exchange rates. Dividends of $24.3 million and $23.6 million were paid during the six months ended June 30, 2016 and 2015, respectively. Dividends paid were 54 cents per share and 50 cents per share in the first six months of 2016 and 2015, respectively.

CONTRACTUAL OBLIGATIONS

There have been no material changes in the Company’s contractual obligations during the quarter ended June 30, 2016.  For additional information about contractual obligations, refer to “Contractual Obligations” under Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

OFF-BALANCE SHEET ARRANGEMENTS

The Company had no off-balance sheet arrangements as of June 30, 2016.
 
CRITICAL ACCOUNTING POLICIES

There have been no material changes in the Company’s critical accounting policies during the quarter ended June 30, 2016.  For additional information about critical accounting policies, refer to “Critical Accounting Policies” under Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.
 
20

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the Company’s exposure to market risk during the quarter ended June 30, 2016.  For additional information about market risk refer to Item 7A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures:  The Company carried out an evaluation, under the supervision and with the participation of management, including the Company’s Chairman, President and Chief Executive Officer and its Senior Vice President and Chief Financial Officer, of the effectiveness, as of the end of the period covered by this report, of the design and operation of the disclosure controls and procedures, as defined in Rule 13a-15(e) of the Exchange Act.  Based upon that evaluation, the Company’s Chairman, President and Chief Executive Officer and its Senior Vice President and Chief Financial Officer have concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report.

Change in Internal Control Over Financial Reporting:  During the quarter ended June 30, 2016, the Company implemented a new enterprise resource planning software application at one significant location in its Color segment. The Company followed a system development process that required significant pre-implementation planning, design and testing. There has been no other change in the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the Company’s most recent quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements that reflect management’s current assumptions and estimates of future economic circumstances, industry conditions, Company performance and financial results.  Forward-looking statements include statements in the future tense, statements referring to any period after June 30, 2016, and statements including the terms “expect,” “believe,” “anticipate” and other similar terms that express expectations as to future events or conditions.  The Private Securities Litigation Reform Act of 1995 provides a safe harbor for such forward-looking statements.  Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that could cause actual events to differ materially from those expressed in those statements.  A variety of factors could cause the Company’s actual results and experience to differ materially from the anticipated results.  These factors and assumptions include the pace and nature of new product introductions by the Company and the Company’s customers; the Company’s ability to successfully implement its growth strategies and restructuring plan; the outcome of the Company’s various productivity-improvement and cost-reduction efforts; changes in costs and availability of raw materials and energy; industry and economic factors related to the Company’s domestic and international business; competition from other suppliers of colors, flavors and fragrances; growth or contraction in markets for products in which the Company competes; terminations and other changes in customer relationships; the costs of compliance, or failure to comply, with laws and regulations applicable to our industries and markets; changing consumer preferences and changing technologies; industry and customer acceptance of price increases; currency exchange rate fluctuations; cost and availability of credit; results of litigation, environmental investigations or other proceedings; complications as a result of existing or future information technology system applications and hardware; the matters discussed under Item 1A of Part II of this report and Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015; and the matters discussed above under Item 2 including the critical accounting policies referenced therein.  Except to the extent required by applicable law, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
 
21

PART II.
OTHER INFORMATION

ITEM 1.
LEGAL PROCEEDINGS

U.S. Equal Employment Opportunity Commission Civil Complaint
On September 21, 2015, the U.S. Equal Employment Opportunity Commission (EEOC) filed a civil complaint against Sensient Natural Ingredients LLC (SNI) in the U.S. District Court for the Eastern District of California.  SNI is a wholly owned subsidiary of the Company. The EEOC’s complaint alleges that SNI failed to comply with the Americans with Disabilities Act (ADA), as amended, when it terminated five employees in 2011.  The EEOC seeks to enjoin SNI from engaging in employment practices that discriminate on the basis of disability; asks the Court to order SNI to implement policies, practices, and programs to ensure it does not violate the ADA; and requests back pay with prejudgment interest, reinstatement, front pay, compensation for past and future pecuniary and non-pecuniary losses, and punitive damages on behalf of the five named former employees and any similarly aggrieved individuals.  Recoverable compensatory and punitive damages are subject to statutory caps.  The complaint does not request a specific damages amount.  To date, the EEOC has provided the Company with a list of 13 additional potentially aggrieved former employees not listed in the complaint who may have been terminated in violation of the ADA during the relevant time period.  In its discovery responses, the EEOC has identified 3 of those 13 former employees as additional claimants for whom the Agency seeks relief.  The Parties are currently engaged in the discovery process.

The Company is vigorously investigating the facts alleged in the complaint to determine what exposure SNI may have.  Since 2013, SNI’s on-site human resources representatives have worked closely with both Company counsel and outside labor and employment counsel to ensure that all policies, procedures and actions, including terminations, comply with applicable law.  At this early stage, it is not possible to assess the probability of any legal or financial exposure.

Other Claims and Litigation
The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period.

SEC Inquiry
On October 22, 2015, the Company received an informal inquiry from the staff of the Securities and Exchange Commission’s Division of Enforcement requesting the voluntary provision of documents and information generally related to the Company’s disclosures of its restructuring activities, its treatment of long-lived assets, and its use of non-GAAP financial measures in its SEC filings and 2014 Annual Report to Shareholders. The Company is fully cooperating with the inquiry and is unable to predict the outcome of the inquiry or its potential impact.

ITEM 1A. RISK FACTORS

Except as otherwise described below, there were no material changes to the risk factors previously disclosed in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

On June 23, 2016, the United Kingdom (U.K.) held a referendum in which voters approved an exit from the European Union, commonly referred to as “Brexit”. As a result of the referendum, it is expected that the British government will begin negotiating the terms of the U.K.’s future relationship with the European Union. Although it is unknown what the terms will be, it is possible that there will be greater restrictions on imports and exports between the U.K. and European Union countries, increased regulatory complexities, and economic uncertainties in the region. These changes may adversely affect our operations and financial results.
 
22

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table provides the specified information about the repurchases of its common shares by the Company during the second quarter of 2016:

Period
 
Total Number
of Shares
Purchased
 
 
Average
price paid
per share
 
 
Total number of
shares purchased as
part of a publicly
announced plan (1)
 
 
Maximum number of
shares that may be
purchased under
publicly announced plans
 
April 1 to April 30, 2016
   
-
     
-
     
-
     
1,863,688
 
May 1 to May 31, 2016
   
47,456
   
$
66.06
     
47,456
     
1,816,232
 
June 1 to June 30, 2016
   
-
     
-
     
-
     
1,816,232
 
                                 
Total
   
47,456
   
$
66.06
     
47,456
         

(1) Shares were repurchased pursuant to the Board of Directors’ August 21, 2014, authorization to repurchase up to five million shares. Repurchases under this authorization do not have an expiration date. This authorization may be modified, suspended, or discontinued by the Board of Directors at any time.

ITEM 6. EXHIBITS

See Exhibit Index following this report.
 
23

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

   
SENSIENT TECHNOLOGIES CORPORATION
 
         
Date:
August 8, 2016
By:
 /s/  John J. Manning
 
     
John J. Manning, Vice President,
     
General Counsel & Secretary

Date:
August 8, 2016
By:
 /s/  Stephen J. Rolfs
 
     
Stephen J. Rolfs, Senior Vice President & Chief Financial Officer

24

SENSIENT TECHNOLOGIES CORPORATION
EXHIBIT INDEX
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2016
 
Exhibit
 
Description
 
Incorporated by Reference From
 
Filed Herewith
             
3.2
 
Sensient Technologies Corporation Amended and Restated By-Laws
 
Exhibit 3.2 to Current Report on Form 8-K dated April 25, 2016 (Commission File No. 1-7626)
   
             
 
Certifications of the Company’s Chairrman, President & Chief Executive Officer and Senior Vice President & Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act
     
X
             
 
Certifications of the Company’s Chairman, President & Chief Executive Officer and Senior Vice President & Chief Financial Officer pursuant to 18 United States Code § 1350
     
X
             
101
 
Interactive data files pursuant to Rule 405 of Regulation S-T
     
X
 
 
25

EX-31 2 ex31.htm EXHIBIT 31

EXHIBIT 31
 
CERTIFICATION
Pursuant to Rule 13a-14(a) of the Exchange Act
 
I, Paul Manning, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sensient Technologies Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2016
 
/s/ Paul Manning
 
Paul Manning, Chairman, President &
Chief Executive Officer
 

EXHIBIT 31
 
CERTIFICATION
Pursuant to Rule 13a-14(a) of the Exchange Act
 
I, Stephen J. Rolfs, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sensient Technologies Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2016

/s/ Stephen J. Rolfs
 
Stephen J. Rolfs, Senior Vice President &
Chief Financial Officer

 

EX-32 3 ex32.htm EXHIBIT 32

EXHIBIT 32
 
CERTIFICATION
Pursuant to 18 United States Code § 1350
 
The undersigned hereby certifies that the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2016, of Sensient Technologies Corporation (the “Company”) filed with the Securities and Exchange Commission on or about the date hereof fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company.

   
/s/ Paul Manning
 
 
Name:
Paul Manning
 
Title:
Chairman, President & Chief Executive Officer
 
Date:
August 8, 2016

A signed original of this written statement required by Section 906 has been provided to Sensient Technologies Corporation and will be retained by Sensient Technologies Corporation and furnished to the Securities and Exchange Commission or its staff upon request.
 

EXHIBIT 32

CERTIFICATION
Pursuant to 18 United States Code § 1350

The undersigned hereby certifies that the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2016, of Sensient Technologies Corporation (the “Company”) filed with the Securities and Exchange Commission on or about the date hereof fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company.

   
/s/ Stephen J. Rolfs
 
 
Name:
Stephen J. Rolfs
 
Title:
Senior Vice President & Chief Financial Officer
 
Date:
August 8, 2016

A signed original of this written statement required by Section 906 has been provided to Sensient Technologies Corporation and will be retained by Sensient Technologies Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

 

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8196000 1456000 <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman'; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; width: 18pt; align: right;">13.</td><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; text-align: justify; width: auto;">Commitments and Contingencies</td></tr></table></div><div style="background-color: #ffffff;"><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: left; margin-left: 18pt;"><u>U.S. Equal Employment Opportunity Commission Civil Complaint</u></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">On September 21, 2015, the U.S. Equal Employment Opportunity Commission (EEOC) filed a civil complaint against Sensient Natural Ingredients LLC (SNI) in the U.S. District Court for the Eastern District of California.&#160; SNI is a wholly owned subsidiary of the Company. The EEOC&#8217;s complaint alleges that SNI failed to comply with the Americans with Disabilities Act (ADA), as amended, when it terminated five employees in 2011.&#160; The EEOC seeks to enjoin SNI from engaging in employment practices that discriminate on the basis of disability; asks the Court to order SNI to implement policies, practices, and programs to ensure it does not violate the ADA; and requests back pay with prejudgment interest, reinstatement, front pay, compensation for past and future pecuniary and non-pecuniary losses, and punitive damages on behalf of the five named former employees and any similarly aggrieved individuals.&#160; Recoverable compensatory and punitive damages are subject to statutory caps.&#160; The complaint does not request a specific damages amount.&#160; To date, the EEOC has provided the Company with a list of 13 additional potentially aggrieved former employees not listed in the complaint who may have been terminated in violation of the ADA during the relevant time period.&#160; In its discovery responses, the EEOC has identified 3 of those 13 former employees as additional claimants for whom the Agency seeks relief.&#160; The Parties are currently engaged in the discovery process.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">The Company is vigorously investigating the facts alleged in the complaint to determine what exposure SNI may have.&#160; Since 2013, SNI&#8217;s on-site human resources representatives have worked closely with both Company counsel and outside labor and employment counsel to ensure that all policies, procedures and actions, including terminations, comply with applicable law.&#160; At this early stage, it is not possible to assess the probability of any legal or financial exposure.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;"><u>Other Claims and Litigation</u></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period.</div></div> 0.25 0.27 0.50 0.54 5396000 5396000 <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman'; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; width: 18pt; align: right;">9.</td><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; text-align: justify; width: auto;">Accumulated Other Comprehensive Income</td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">The following table summarizes the changes in OCI during the three- and six-month periods ended June 30, 2016:</div><div><br /></div><table border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; margin-left: 18pt; width: 90%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 42%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(In thousands)</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Cash Flow </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Hedges <font style="font-size: 10pt; font-family: 'Times New Roman';">(a)</font></div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Pension</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Items <font style="font-size: 10pt; font-family: 'Times New Roman';">(a)</font></div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Foreign </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Currency </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Items</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; 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font-family: 'Times New Roman';">37</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(3,257</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; 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width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; width: 18pt; align: right;">10.</td><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; text-align: justify; width: auto;">Restructuring</td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">The Company incurred restructuring costs in both continuing and discontinued operations. The discussion in this note relates to the combination of both continuing and discontinued operations unless otherwise noted. Restructuring costs related to discontinued operations are recorded in discontinued operations within the Company&#8217;s Consolidated Condensed Statements of Earnings and are discussed in Note 11, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Discontinued Operations</font>, in more detail.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In March 2014, the Company announced that it was initiating a restructuring plan (&#8220;2014 Restructuring Plan&#8221; or &#8220;Plan&#8221;) to eliminate underperforming operations, consolidate manufacturing facilities and improve efficiencies within the Company. The Company determined that it had redundant manufacturing capabilities in both North America and Europe and that it could lower costs and operate more efficiently by consolidating into fewer facilities. Eight facilities were identified for consolidation in the Flavors &amp; Fragrances segment, four in North America and four in Europe. To date, closures have been announced in Indianapolis, Indiana, United States; Cornwall, Mississauga and Halton Hills, Canada; Bremen, Germany; and Milan, Italy. The Company also plans to sell its two European Natural Ingredients facilities, as discussed below. In addition, the Company discontinued one of the businesses in the Color segment, located near Leipzig, Germany, because it did not fit with the Company&#8217;s long-term strategic plan and it had generated losses for several years. In 2015, the Company identified additional opportunities to consolidate manufacturing operations at one of the Color segment&#8217;s facilities in Europe and eliminate additional positions in the European Flavors &amp; Fragrances businesses.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">Based on this Plan, the Company determined that certain long-lived assets associated with the underperforming operations were impaired. The Company reduced the carrying amounts of these assets to their aggregate respective fair values, which were determined based on independent market valuations.&#160; &#160; The fair values of the remaining long-lived assets are estimated to be approximately $19 million, which includes certain of the land, buildings and equipment in the assets held for sale, as noted below. Also certain machinery and equipment has been identified to be disposed of at the time of the facility closures and the associated depreciation for these assets has been accelerated. The Company recorded long-lived asset impairments, including the impairment charges and accelerated depreciation of $0.3 million and $3.7 million, during the three months ended June 30, 2016 and 2015, respectively, and $0.7 million and $7.5 million during the six months ended June 30, 2016 and 2015, respectively. Since initiating the Plan, the Company has recorded $85.5 million of long-lived asset impairments, including the impairment charges and accelerated depreciation. In addition, certain intangible assets, inventory and other current assets were also determined to be impaired and were written down.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">The Company has also incurred employee separation and other restructuring costs as a result of this Plan. The Company anticipates that it will reduce headcount by approximately 400 positions at the affected facilities, primarily in the Flavors &amp; Fragrances segment, related to direct and indirect labor at manufacturing sites. As of June 30, 2016, 272 positions had been eliminated as a result of this Plan.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">As mentioned above, the Company plans to sell its European Natural Ingredients business, a business in the Flavors &amp; Fragrances segment. This business has two facilities, located in Marchais, France and Elburg, the Netherlands. The European Natural Ingredients business has not generated significant profits for several years and it does not fit with the Company&#8217;s long-term strategic plan. The Company is currently working to sell this business and anticipates selling the business within the next year. 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The Company expects to incur approximately $13 million of additional restructuring costs by the end of 2016 and approximately $4 million of restructuring costs in 2017.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">The Company expects that the closure and sale of these operations will significantly lower the Company&#8217;s operating costs over the next few years. Upon initiating the Plan, the Company estimated the annual cost reductions to be approximately $30 million, when fully implemented. The U.S. dollar has strengthened considerably since the initiation of the Plan, and as a result the dollar value of the cost savings has been reduced. In 2015, the Company identified additional cost savings opportunities, and as a result of these actions, the current estimate of annual cost savings is approximately $27 million. The Company has also implemented price increases to further mitigate the impact of foreign currency movements. The Company has already realized cost savings of approximately $3 million in 2014 and an additional $9 million in 2015.&#160; The Company expects to realize approximately $6 million to $7 million of incremental savings in 2016, of which $2.1 million and $4.1 million were realized during the three and six months ended June 30, 2016, respectively. The remaining savings are expected to be realized in 2017.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In connection with the 2014 Restructuring Plan, the Company approved a plan to dispose of a certain business, located near Leipzig, Germany, within the Color segment. Production ceased in 2014 and the business met the criteria to be reported as a discontinued operation. During the current quarter, the facility and remaining assets were sold for a gain of $0.2 million. In addition, the entity was liquidated resulting in a reclassification of the cumulative translation adjustment related to that entity of $3.3 million into net earnings. The pre-tax gain from discontinued operations, which includes restructuring costs, was $3.4 million during both the three and six months ended June 30,&#160;2016.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">The Company evaluates performance based on operating income of each segment before restructuring and other costs. All restructuring and other costs related to continuing operations are recorded in the Corporate &amp; Other segment. 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font-family: 'Times New Roman';">(a)</font></div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Pension</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Items <font style="font-size: 10pt; font-family: 'Times New Roman';">(a)</font></div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Foreign </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Currency </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Items</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: center;">Total</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Balance as of March 31, 2016</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(1,028</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(4,357</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(149,098</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(154,483</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td></tr><tr><td valign="bottom" style="vertical-align: top; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Other comprehensive income before reclassifications</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">828</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(18,720</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(17,892</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Amounts reclassified from OCI</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">170</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">37</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(3,257</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(3,050</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 4px; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Balance as of June 30, 2016</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(30</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(4,320</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(171,075</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; 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font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Balance as of December 31, 2015</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">164</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(4,393</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(165,833</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; 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text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; width: 30%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Revenue from external customers</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; 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width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; 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text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">4,637</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">4,637</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; vertical-align: top; font-weight: normal; font-style: normal; width: 30%; background-color: #cceeff;"><div style="text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;"><u>Six months ended June 30, 2015:</u></div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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padding-bottom: 2px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">20,975</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 4px; width: 30%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Total revenue</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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Actual results could differ from those estimates. Expenses are charged to operations in the period incurred.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In November 2015, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;) No. 2015-17, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Balance Sheet Classification of Deferred Taxes</font>, which requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU simplifies current guidance, which requires entities to separately present deferred tax assets and deferred tax liabilities as current and noncurrent in a classified balance sheet. This guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. The guidance can be applied retrospectively or prospectively. The Company retrospectively applied this guidance to all prior periods. The Company adopted this ASU in the first quarter of 2016. As a result, the Company reclassified $17.1 million of current deferred tax assets to Deferred Tax Asset Noncurrent as of December 31, 2015. The Company also reclassified $7.3 million of current deferred tax assets to Deferred Tax Liability Noncurrent as of December 31, 2015.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In April 2015, the FASB issued ASU No. 2015-03, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Simplifying the Presentation of Debt Issuance Costs</font>, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the associated debt liability. 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As a result, the Company reclassified $0.4 million of debt fees from Other Assets to Long Term Debt as of December 31, 2015.&#160; The Company&#8217;s debt fees associated with the Company&#8217;s revolving loan agreement remain classified in Other Assets.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In July 2015, the FASB affirmed its proposed one-year deferral of the effective date for ASU No. 2014-09, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Revenue from Contracts with Customers</font>. Under this proposal, the requirements of the new standard are effective for interim and annual periods beginning after December 15, 2017. The proposal also permits entities to adopt the standard for interim and annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the expected impact of this standard.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In July 2015, the FASB issued ASU No. 2015-11, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Simplifying the Measurement of Inventory</font>. Under this guidance, inventory that is accounted for using first-in-first-out or average cost method, shall be measured at the lower of cost or net realizable value, as opposed to the lower of cost or market measurement under current guidance. This guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. This new guidance is required to be retrospectively applied to all prior periods. The Company is currently evaluating the expected impact of this standard.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In February 2016, the FASB issued ASU No. 2016-02, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Leases</font>, which requires lessees to recognize the lease assets and lease liabilities that arise from leases on the balance sheet and to disclose qualitative and quantitative information about lease transactions. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. 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Flavors And Fragrances [Member] Flavors & Fragrances [Member] Refers 2014 Proxy contest. 2014 Proxy Contest [Member] Information on the color segment. Color [Member] Color [Member] Represents the facilities identified for sale in segments. Facilities identified for sell Facilities identified for sell The 2014 restructuring program. 2014 Restructuring plan [Member] 2014 Restructuring Plan [Member] The business within the flavors and fragrances segment. European Natural Ingredients Business [Member] Tabular disclosure of restructuring and related costs by segment including the description of the restructuring costs, such as the expected cost; the costs incurred during the period; the cumulative costs incurred as of the balance sheet date; the income statement caption within which the restructuring charges recognized for the period are included; and changes to an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost. Schedule Of Restructuring And Related Costs By Segment [Text Block] Restructuring Cost by Segment Amount of obligations incurred for noncurrent employer-related costs. Employee Related Liabilities Non Current ACCRUED EMPLOYEE AND RETIREE BENEFITS Amount of cash inflow (outflow) from financing activities related to options exercised and other equity transactions. Proceeds from (Payments for) options exercised and other equity transactions Proceeds from options exercised and other equity transactions Cash flow amount before tax of reclassification adjustment from accumulated other comprehensive income for translation gain (loss) realized upon the sale or liquidation of an investment in a foreign entity and foreign currency hedges that are designated and qualified as hedging instruments for hedges of the foreign currency exposure of a net investment in a foreign operation. Cash Flow For Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From AOCI Realized Upon Sale Or Liquidation Before Tax Liquidation of foreign entity Document and Entity Information [Abstract] Refers to the number of additional potentially aggrieved former employees not listed in the complaint. Number of additional potentially aggrieved former employees Information on the legal action with Sensient Natural Ingredients LLC. Sensient Natural Ingredients LLC [Member] Refers to the number of employees who were allegedly wrongfully terminated by the company. Number of employees terminated Refers to employees as additional claimants for whom the Agency seeks relief. Number of additional claimants Number of additional claimants Equity impact of the value of stock that has been repurchased during the period and are held in treasury. Treasury Stock Value Acquired Common stock repurchased during the period, value Derivative instruments and hedging activity for the period [Abstract] Number of months for forward exchange contracts to mature. Number of months for forward exchange contracts to mature Number of months for forward exchange contracts to mature Refers to the amount of deferred tax assets current reclassified as deferred tax asset noncurrent. Deferred Tax Assets Current Reclassified As Deferred Tax Asset Noncurrent Deferred tax assets current reclassified as deferred tax asset noncurrent Refers to the amount of deferred tax assets current reclassified as deferred tax liability noncurrent. Deferred Tax Assets Current Reclassified As Deferred Tax Liability Noncurrent Deferred tax assets current reclassified as deferred tax liability noncurrent Refers to the amount of debt fees recorded in other assets reclassified as long term debt. Debt Fees From Other Assets Reclassified As Long Term Debt Debt fees from other assets reclassified as long term debt Anticipated Divestiture [Abstract] Description expected disposal(s) group, carrying value of the assets and liabilities comprising the disposal group. Anticipated Divestiture [Text Block] Anticipated Divestiture Amount classified as liabilities attributable to disposal group held for sale or disposed of related to the anticipated sale of business. Liabilities Of Disposal Group Related To Anticipated Sale Of Business Liabilities held for sale Amount classified as assets attributable to disposal group held for sale or disposed of related to the anticipated sale of business. Assets Of Disposal Group Related To Anticipated Sale Of Business Assets held for sale of inventory and other assets Refers to expected amount of write-downs for impairments recognized when long-lived assets are sold. Expected Impairment Of Long Lived Assets To Be Sold Expected non-cash loss on assets held for sale EX-101.PRE 9 sxt-20160630_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 10 R1.htm IDEA: XBRL DOCUMENT v3.5.0.2
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2016
Jul. 31, 2016
Document and Entity Information [Abstract]    
Entity Registrant Name SENSIENT TECHNOLOGIES CORP  
Entity Central Index Key 0000310142  
Current Fiscal Year End Date --12-31  
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding   44,780,813
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q2  
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2016  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract]        
Revenue $ 360,836 $ 346,009 $ 703,304 $ 692,235
Cost of products sold 236,402 227,854 463,027 456,647
Selling and administrative expenses 80,769 73,088 149,093 144,075
Operating income 43,665 45,067 91,184 91,513
Interest expense 4,637 4,106 9,437 8,021
Earnings before income taxes 39,028 40,961 81,747 83,492
Income taxes 14,277 11,419 25,803 23,215
Earnings from continuing operations 24,751 29,542 55,944 60,277
Gain (Loss) from discontinued operations, net of tax 3,365 (92) 3,343 (301)
Net earnings $ 28,116 $ 29,450 $ 59,287 $ 59,976
Weighted average number of shares outstanding:        
Basic (in shares) 44,562 46,168 44,640 46,670
Diluted (in shares) 44,822 46,470 44,902 46,984
Basic:        
Continuing operations (in dollars per share) $ 0.56 $ 0.64 $ 1.25 $ 1.29
Discontinued operations (in dollars per share) 0.08 0 0.07 (0.01)
Earnings per common share (in dollars per share) 0.63 0.64 1.33 1.29
Diluted:        
Continuing operations (in dollars per share) 0.55 0.64 1.25 1.28
Discontinued operations (in dollars per share) 0.08 0 0.07 (0.01)
Earnings per common share (in dollars per share) 0.63 0.63 1.32 1.28
Dividends declared per common share (in dollars per share) $ 0.27 $ 0.25 $ 0.54 $ 0.50
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]        
Comprehensive Income $ 7,174 $ 48,758 $ 53,924 $ 17,845
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
CURRENT ASSETS:    
Cash and cash equivalents $ 20,193 $ 11,997
Trade accounts receivable, net 254,635 232,047
Inventories 381,945 409,159
Prepaid expenses and other current assets 42,176 44,673
Assets held for sale 50,452 31,029
TOTAL CURRENT ASSETS 749,401 728,905
OTHER ASSETS 71,170 71,117
DEFERRED TAX ASSETS 18,686 25,177
INTANGIBLE ASSETS, NET 8,755 9,209
GOODWILL 397,742 399,646
PROPERTY, PLANT AND EQUIPMENT:    
Land 35,251 33,975
Buildings 269,151 274,318
Machinery and equipment 633,068 664,917
Construction in progress 86,169 62,515
Property, Plant and Equipment, Gross, Total 1,023,639 1,035,725
Less accumulated depreciation (555,391) (566,047)
Property, Plant and Equipment, Net, Total 468,248 469,678
TOTAL ASSETS 1,714,002 1,703,732
CURRENT LIABILITIES:    
Trade accounts payable 97,631 95,442
Accrued salaries, wages and withholdings from employees 22,869 23,530
Other accrued expenses 64,934 61,701
Income taxes 4,864 7,504
Short-term borrowings 20,747 20,655
Liabilities held for sale 4,509 4,090
TOTAL CURRENT LIABILITIES 215,554 212,922
DEFERRED INCOME TAXES 6,532 5,640
OTHER LIABILITIES 7,458 7,534
ACCRUED EMPLOYEE AND RETIREE BENEFITS 20,300 19,007
LONG-TERM DEBT 601,840 613,502
SHAREHOLDERS' EQUITY:    
Common stock 5,396 5,396
Additional paid-in capital 112,739 109,974
Earnings reinvested in the business 1,337,323 1,302,302
Treasury stock, at cost (417,715) (402,483)
Accumulated other comprehensive loss (175,425) (170,062)
TOTAL SHAREHOLDERS' EQUITY 862,318 845,127
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,714,002 $ 1,703,732
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net earnings $ 59,287 $ 59,976
Adjustments to arrive at net cash provided by operating activities:    
Depreciation and amortization 23,301 24,258
Share-based compensation 4,803 711
Loss on assets 8,107 6,168
Deferred income taxes 6,231 3,032
Liquidation of foreign entity (3,257) 0
Changes in operating assets and liabilities 2,373 (17,268)
Net cash provided by operating activities 100,845 76,877
Cash flows from investing activities:    
Acquisition of property, plant and equipment (34,294) (36,970)
Proceeds from sale of assets 910 12,627
Acquisition of new business 0 (8,393)
Other investing activity (48) (101)
Net cash used in investing activities (33,432) (32,837)
Cash flows from financing activities:    
Proceeds from additional borrowings 107,484 130,240
Debt payments (123,067) (20,097)
Purchase of treasury stock (21,055) (123,094)
Dividends paid (24,266) (23,600)
Proceeds from options exercised and other equity transactions 290 554
Net cash used in financing activities (60,614) (35,997)
Effect of exchange rate changes on cash and cash equivalents 1,397 (6,587)
Net increase in cash and cash equivalents 8,196 1,456
Cash and cash equivalents at beginning of period 11,997 20,329
Cash and cash equivalents at end of period $ 20,193 $ 21,785
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.5.0.2
Accounting Policies
6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
Accounting Policies
1.Accounting Policies

In the opinion of Sensient Technologies Corporation (the “Company”), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) which are necessary to present fairly the financial position of the Company as of June 30, 2016, the results of operations and comprehensive income for the three and six months ended June 30, 2016 and 2015, and cash flows for the six months ended June 30, 2016 and 2015.  The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred.

In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU simplifies current guidance, which requires entities to separately present deferred tax assets and deferred tax liabilities as current and noncurrent in a classified balance sheet. This guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. The guidance can be applied retrospectively or prospectively. The Company retrospectively applied this guidance to all prior periods. The Company adopted this ASU in the first quarter of 2016. As a result, the Company reclassified $17.1 million of current deferred tax assets to Deferred Tax Asset Noncurrent as of December 31, 2015. The Company also reclassified $7.3 million of current deferred tax assets to Deferred Tax Liability Noncurrent as of December 31, 2015.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the associated debt liability. Also in August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, to clarify that the Securities and Exchange Commission staff would not object to deferring and presenting debt issuance costs as an asset and subsequently amortizing deferred debt issuance costs ratably over a term of the line-of-credit arrangement. This guidance is effective for interim and annual periods beginning after December 15, 2015. The guidance is required to be retrospectively applied to all prior periods. The Company adopted these ASUs in the first quarter of 2016. As a result, the Company reclassified $0.4 million of debt fees from Other Assets to Long Term Debt as of December 31, 2015.  The Company’s debt fees associated with the Company’s revolving loan agreement remain classified in Other Assets.

In July 2015, the FASB affirmed its proposed one-year deferral of the effective date for ASU No. 2014-09, Revenue from Contracts with Customers. Under this proposal, the requirements of the new standard are effective for interim and annual periods beginning after December 15, 2017. The proposal also permits entities to adopt the standard for interim and annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the expected impact of this standard.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. Under this guidance, inventory that is accounted for using first-in-first-out or average cost method, shall be measured at the lower of cost or net realizable value, as opposed to the lower of cost or market measurement under current guidance. This guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. This new guidance is required to be retrospectively applied to all prior periods. The Company is currently evaluating the expected impact of this standard.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize the lease assets and lease liabilities that arise from leases on the balance sheet and to disclose qualitative and quantitative information about lease transactions. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the expected impact of this standard.
 
In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions, primarily the accounting for the associated income taxes. This guidance is effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the expected impact of this standard.

Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2015, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change.
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.5.0.2
Fair Value
6 Months Ended
Jun. 30, 2016
Fair Value [Abstract]  
Fair Value
2.Fair Value

Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, defines fair value for financial assets and liabilities, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. As of June 30, 2016, and December 31, 2015, the Company’s assets and liabilities subject to this standard are forward exchange contracts and investments in a money market fund and municipal investments. The fair value of the forward exchange contracts based on current pricing obtained for comparable derivative products (Level 2 inputs) was a liability of $0.1 million and $0.2 million as of June 30, 2016, and December 31, 2015, respectively.  The fair value of the investments based on June 30, 2016, and December 31, 2015, market quotes (Level 1 inputs) was an asset of $1.5 million in both periods and is reported in Other Assets in the Consolidated Condensed Balance Sheets.

The carrying values of the Company’s cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses and short-term borrowings approximated fair values as of June 30, 2016. The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2 inputs). The carrying value of the long-term debt at June 30, 2016, was $601.8 million. The fair value of the long-term debt at June 30, 2016, was $624.4 million.
XML 17 R8.htm IDEA: XBRL DOCUMENT v3.5.0.2
Segment Information
6 Months Ended
Jun. 30, 2016
Segment Information [Abstract]  
Segment Information
3.Segment Information

Operating results by segment for the periods presented are as follows:

(In thousands)
 
Flavors &
Fragrances
  
Color
  
Asia
Pacific
  
Corporate
& Other
  
Consolidated
 
Three months ended June 30, 2016:
               
Revenue from external customers
 
$
201,590
  
$
127,461
  
$
31,785
  
$
-
  
$
360,836
 
Intersegment revenue
  
7,737
   
4,135
   
38
   
-
   
11,910
 
Total revenue
 
$
209,327
  
$
131,596
  
$
31,823
  
$
-
  
$
372,746
 
                     
Operating income (loss)
 
$
35,307
  
$
28,004
  
$
6,112
  
$
(25,758
)
 
$
43,665
 
Interest expense
  
-
   
-
   
-
   
4,637
   
4,637
 
Earnings (loss) before income taxes
 
$
35,307
  
$
28,004
  
$
6,112
  
$
(30,395
)
 
$
39,028
 
                     
Three months ended June 30, 2015:
                    
Revenue from external customers
 
$
198,077
  
$
118,236
  
$
29,696
  
$
-
  
$
346,009
 
Intersegment revenue
  
6,555
   
3,614
   
53
   
-
   
10,222
 
Total revenue
 
$
204,632
  
$
121,850
  
$
29,749
  
$
-
  
$
356,231
 
                     
Operating income (loss)
 
$
32,526
  
$
25,528
  
$
6,094
  
$
(19,081
)
 
$
45,067
 
Interest expense
  
-
   
-
   
-
   
4,106
   
4,106
 
Earnings (loss) before income taxes
 
$
32,526
  
$
25,528
  
$
6,094
  
$
(23,187
)
 
$
40,961
 
 
(In thousands)
 
Flavors &
Fragrances
  
Color
  
Asia
Pacific
  
Corporate
& Other
  
Consolidated
 
Six months ended June 30, 2016:
               
Revenue from external customers
 
$
392,110
  
$
249,742
  
$
61,452
  
$
-
  
$
703,304
 
Intersegment revenue
  
15,556
   
7,888
   
78
   
-
   
23,522
 
Total revenue
 
$
407,666
  
$
257,630
  
$
61,530
  
$
-
  
$
726,826
 
                     
Operating income (loss)
 
$
62,817
  
$
55,848
  
$
12,117
  
$
(39,598
)
 
$
91,184
 
Interest expense
  
-
   
-
   
-
   
9,437
   
9,437
 
Earnings (loss) before income taxes
 
$
62,817
  
$
55,848
  
$
12,117
  
$
(49,035
)
 
$
81,747
 
                     
Six months ended June 30, 2015:
                    
Revenue from external customers
 
$
397,177
  
$
236,591
  
$
58,467
  
$
-
  
$
692,235
 
Intersegment revenue
  
13,433
   
7,457
   
85
   
-
   
20,975
 
Total revenue
 
$
410,610
  
$
244,048
  
$
58,552
  
$
-
  
$
713,210
 
                     
Operating income (loss)
 
$
62,985
  
$
51,791
  
$
11,745
  
$
(35,008
)
 
$
91,513
 
Interest expense
  
-
   
-
   
-
   
8,021
   
8,021
 
Earnings (loss) before income taxes
 
$
62,985
  
$
51,791
  
$
11,745
  
$
(43,029
)
 
$
83,492
 
 
Beginning in the first quarter of 2016, the results of operations for the Company’s color business in China, South Korea and Japan, previously reported in the Asia Pacific segment, are now reported in the Color segment. The results for 2015 have been restated to reflect these changes.

The Company evaluates performance based on operating income of the respective segments before restructuring and other costs, interest expense and income taxes. The 2016 and 2015 restructuring and other costs related to continuing operations are reported in the Corporate & Other segment. See Note 10, Restructuring, for more information on the Company’s restructuring activities. The other costs in 2016 are for a long-lived asset impairment charge, see Note 12, Anticipated Divestiture, and the other costs in 2015 are acquisition related costs.
XML 18 R9.htm IDEA: XBRL DOCUMENT v3.5.0.2
Inventories
6 Months Ended
Jun. 30, 2016
Inventories [Abstract]  
Inventories
4.Inventories

At June 30, 2016, and December 31, 2015, inventories included finished and in-process products totaling $259.2 million and $291.9 million, respectively, and raw materials and supplies of $122.7 million and $117.3 million, respectively.
XML 19 R10.htm IDEA: XBRL DOCUMENT v3.5.0.2
Retirement Plans
6 Months Ended
Jun. 30, 2016
Retirement Plans [Abstract]  
Retirement Plans
5.Retirement Plans

The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows:

  
Three Months Ended
June 30,
  
Six Months Ended
June 30,
 
(In thousands)
 
2016
  
2015
  
2016
  
2015
 
             
Service cost
 
$
503
  
$
661
  
$
1,006
  
$
1,323
 
Interest cost
  
425
   
473
   
845
   
945
 
Expected return on plan assets
  
(300
)
  
(324
)
  
(597
)
  
(646
)
Amortization of actuarial loss
  
55
   
74
   
108
   
147
 
                 
Total defined benefit expense
 
$
683
  
$
884
  
$
1,362
  
$
1,769
 
XML 20 R11.htm IDEA: XBRL DOCUMENT v3.5.0.2
Shareholders' Equity
6 Months Ended
Jun. 30, 2016
Shareholders' Equity [Abstract]  
Shareholders' Equity
6.Shareholders’ Equity

The Company repurchased 47,456 and 311,226 shares of its common stock for an aggregate cost of $3.1 million and $18.5 million during the three and six months ended June 30, 2016, and 1.0 million and 1.9 million shares of its common stock for an aggregate cost of $66.3 million and $127.2 million during the three and six months ended June 30, 2015. The amount of treasury stock purchases reported in the Company’s Consolidated Condensed Statements of Cash Flow represent purchases that have settled within each respective quarter.
XML 21 R12.htm IDEA: XBRL DOCUMENT v3.5.0.2
Derivative Instruments and Hedging Activity
6 Months Ended
Jun. 30, 2016
Derivative Instruments and Hedging Activity [Abstract]  
Derivative Instruments and Hedging Activity
7.Derivative Instruments and Hedging Activity

The Company may use forward exchange contracts and foreign currency denominated debt to manage its exposure to foreign exchange risk by reducing the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company’s primary hedging activities and their accounting treatment are summarized below:

Forward exchange contracts – Certain forward exchange contracts have been designated as cash flow hedges. The Company had $18.8 million and $35.2 million of forward exchange contracts, designated as hedges, outstanding as of June 30, 2016, and December 31, 2015, respectively. For the three months ended June 30, 2016, losses of $0.2 million were reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the earnings impact of the related non-functional asset or liability hedged in the same period. For the three months ended June 30, 2015, the losses reclassified were immaterial.  For the six months ended June 30, 2016 and 2015, losses of $0.7 million and $0.3 million, respectively, were reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the earnings impact of the related non-functional asset or liability hedged in the same period. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges, the results of these transactions are not material to the financial statements.

Net investment hedges – The Company has certain debt denominated in Euros and Swiss Francs. These debt instruments have been designated as partial hedges of the Company’s Euro and Swiss Franc net asset positions. Changes in the fair value of this debt attributable to changes in the spot foreign exchange rate are recorded in foreign currency translation in other comprehensive income (“OCI”). As of June 30, 2016, and December 31, 2015, the total value of the Company’s Euro and Swiss Franc debt was $206.3 million and $162.5 million, respectively.  For the three and six months ended June 30, 2016, the impact of foreign exchange rates on these debt instruments decreased debt by $4.8 million and increased debt by $3.6 million, respectively, which has been recorded as foreign currency translation in OCI.
XML 22 R13.htm IDEA: XBRL DOCUMENT v3.5.0.2
Income Taxes
6 Months Ended
Jun. 30, 2016
Income Taxes [Abstract]  
Income Taxes
8.Income Taxes

The effective income tax rates for continuing operations for the quarters ended June 30, 2016 and 2015, were 36.6% and 27.9%, respectively. For the six-month periods ended June 30, 2016 and 2015, the effective income tax rates for continuing operations were 31.6% and 27.8%, respectively. The effective tax rates in both 2016 and 2015 were impacted by restructuring activities, changes in estimates associated with the finalization of prior year foreign and domestic tax items, audit settlements and mix of foreign earnings. The rate in 2016 was also impacted by the deferred tax adjustments related to the anticipated divestiture discussed in Note 12, Anticipated Divestiture.
XML 23 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
Accumulated Other Comprehensive Income
6 Months Ended
Jun. 30, 2016
Accumulated Other Comprehensive Income [Abstract]  
Accumulated Other Comprehensive Income
9.Accumulated Other Comprehensive Income

The following table summarizes the changes in OCI during the three- and six-month periods ended June 30, 2016:

(In thousands)
 
Cash Flow
Hedges (a)
  
Pension
Items (a)
  
Foreign
Currency
Items
  
Total
 
Balance as of March 31, 2016
 
$
(1,028
)
 
$
(4,357
)
 
$
(149,098
)
 
$
(154,483
)
Other comprehensive income before reclassifications
  
828
   
-
   
(18,720
)
  
(17,892
)
Amounts reclassified from OCI
  
170
   
37
   
(3,257
)
  
(3,050
)
Balance as of June 30, 2016
 
$
(30
)
 
$
(4,320
)
 
$
(171,075
)
 
$
(175,425
)
 
(In thousands)
 
Cash Flow
Hedges (a)
  
Pension
Items (a)
  
Foreign
Currency
Items
  
Total
 
Balance as of December 31, 2015
 
$
164
  
$
(4,393
)
 
$
(165,833
)
 
$
(170,062
)
Other comprehensive income before reclassifications
  
(743
)
  
-
   
(1,985
)
  
(2,727
)
Amounts reclassified from OCI
  
549
   
73
   
(3,257
)
  
(2,636
)
Balance as of June 30, 2016
 
$
(30
)
 
$
(4,320
)
 
$
(171,075
)
 
$
(175,425
)

(a)Cash Flow Hedges and Pension Items are net of tax.

During the three months ended June 30, 2016, the Company completed the liquidation of a business unit within the Color segment, resulting in the reclassification of the cumulative translation adjustment into net earnings. See Note 11, Discontinued Operations, for additional information.
XML 24 R15.htm IDEA: XBRL DOCUMENT v3.5.0.2
Restructuring
6 Months Ended
Jun. 30, 2016
Restructuring [Abstract]  
Restructuring
10.Restructuring

The Company incurred restructuring costs in both continuing and discontinued operations. The discussion in this note relates to the combination of both continuing and discontinued operations unless otherwise noted. Restructuring costs related to discontinued operations are recorded in discontinued operations within the Company’s Consolidated Condensed Statements of Earnings and are discussed in Note 11, Discontinued Operations, in more detail.

In March 2014, the Company announced that it was initiating a restructuring plan (“2014 Restructuring Plan” or “Plan”) to eliminate underperforming operations, consolidate manufacturing facilities and improve efficiencies within the Company. The Company determined that it had redundant manufacturing capabilities in both North America and Europe and that it could lower costs and operate more efficiently by consolidating into fewer facilities. Eight facilities were identified for consolidation in the Flavors & Fragrances segment, four in North America and four in Europe. To date, closures have been announced in Indianapolis, Indiana, United States; Cornwall, Mississauga and Halton Hills, Canada; Bremen, Germany; and Milan, Italy. The Company also plans to sell its two European Natural Ingredients facilities, as discussed below. In addition, the Company discontinued one of the businesses in the Color segment, located near Leipzig, Germany, because it did not fit with the Company’s long-term strategic plan and it had generated losses for several years. In 2015, the Company identified additional opportunities to consolidate manufacturing operations at one of the Color segment’s facilities in Europe and eliminate additional positions in the European Flavors & Fragrances businesses.

Based on this Plan, the Company determined that certain long-lived assets associated with the underperforming operations were impaired. The Company reduced the carrying amounts of these assets to their aggregate respective fair values, which were determined based on independent market valuations.    The fair values of the remaining long-lived assets are estimated to be approximately $19 million, which includes certain of the land, buildings and equipment in the assets held for sale, as noted below. Also certain machinery and equipment has been identified to be disposed of at the time of the facility closures and the associated depreciation for these assets has been accelerated. The Company recorded long-lived asset impairments, including the impairment charges and accelerated depreciation of $0.3 million and $3.7 million, during the three months ended June 30, 2016 and 2015, respectively, and $0.7 million and $7.5 million during the six months ended June 30, 2016 and 2015, respectively. Since initiating the Plan, the Company has recorded $85.5 million of long-lived asset impairments, including the impairment charges and accelerated depreciation. In addition, certain intangible assets, inventory and other current assets were also determined to be impaired and were written down.

The Company has also incurred employee separation and other restructuring costs as a result of this Plan. The Company anticipates that it will reduce headcount by approximately 400 positions at the affected facilities, primarily in the Flavors & Fragrances segment, related to direct and indirect labor at manufacturing sites. As of June 30, 2016, 272 positions had been eliminated as a result of this Plan.
 
As mentioned above, the Company plans to sell its European Natural Ingredients business, a business in the Flavors & Fragrances segment. This business has two facilities, located in Marchais, France and Elburg, the Netherlands. The European Natural Ingredients business has not generated significant profits for several years and it does not fit with the Company’s long-term strategic plan. The Company is currently working to sell this business and anticipates selling the business within the next year. Upon the completion of a sale of this business, the Company anticipates recognizing an additional non-cash loss of approximately $13 million.

As of June 30, 2016, the Company has recorded assets held for sale of land, buildings and equipment of $9.4 million related to the 2014 Restructuring Plan, and inventory, receivables and other assets of $18.8 million related to the anticipated sale of the European Natural Ingredients business. The Company also has $3.1 million of liabilities held for sale related to the anticipated sale of the European Natural Ingredients business.

The Company recorded total restructuring income of $0.2 million (as a result of a pre-tax gain from discontinued operations in connection with liquidation of the Leipzig entity, as discussed below) for the three months ended June 30, 2016 and restructuring costs of $9.7 million for the three months ended June 30, 2015, in accordance with GAAP and based on an internal review of the affected facilities and consultation with legal and other advisors, and restructuring costs of $3.1 million and $16.9 million for the six months ended June 30, 2016 and 2015, respectively. Since initiating the 2014 Restructuring Plan, the Company has incurred $144.6 million of restructuring costs through June 30, 2016. The Company expects to incur approximately $13 million of additional restructuring costs by the end of 2016 and approximately $4 million of restructuring costs in 2017.

The Company expects that the closure and sale of these operations will significantly lower the Company’s operating costs over the next few years. Upon initiating the Plan, the Company estimated the annual cost reductions to be approximately $30 million, when fully implemented. The U.S. dollar has strengthened considerably since the initiation of the Plan, and as a result the dollar value of the cost savings has been reduced. In 2015, the Company identified additional cost savings opportunities, and as a result of these actions, the current estimate of annual cost savings is approximately $27 million. The Company has also implemented price increases to further mitigate the impact of foreign currency movements. The Company has already realized cost savings of approximately $3 million in 2014 and an additional $9 million in 2015.  The Company expects to realize approximately $6 million to $7 million of incremental savings in 2016, of which $2.1 million and $4.1 million were realized during the three and six months ended June 30, 2016, respectively. The remaining savings are expected to be realized in 2017.

In connection with the 2014 Restructuring Plan, the Company approved a plan to dispose of a certain business, located near Leipzig, Germany, within the Color segment. Production ceased in 2014 and the business met the criteria to be reported as a discontinued operation. During the current quarter, the facility and remaining assets were sold for a gain of $0.2 million. In addition, the entity was liquidated resulting in a reclassification of the cumulative translation adjustment related to that entity of $3.3 million into net earnings. The pre-tax gain from discontinued operations, which includes restructuring costs, was $3.4 million during both the three and six months ended June 30, 2016.

The Company evaluates performance based on operating income of each segment before restructuring and other costs. All restructuring and other costs related to continuing operations are recorded in the Corporate & Other segment. The following table summarizes the restructuring expense by segment and discontinued operations for the three and six months ended June 30, 2016 and 2015, respectively:
 
  
Three Months Ended
June 30,
  
Six Months Ended
June 30,
 
(In thousands)
 
2016
  
2015
  
2016
  
2015
 
             
Flavors & Fragrances
 
$
2,925
  
$
7,191
  
$
5,867
  
$
13,020
 
Color
  
93
   
1,422
   
132
   
1,583
 
Asia Pacific
  
-
   
-
   
-
   
58
 
Corporate & Other
  
257
   
1,009
   
618
   
2,076
 
                 
Total Continuing Operations
  
3,275
   
9,622
   
6,617
   
16,737
 
                 
Discontinued Operations
  
(3,485
)
  
85
   
(3,485
)
  
114
 
                 
Total Restructuring
 
$
(210
)
 
$
9,707
  
$
3,132
  
$
16,851
 
 
The Company recorded restructuring costs in continuing operations for the three and six months ended June 30, 2016, as follows:

Three Months Ended June 30, 2016

(In thousands)
 
Selling &
Administrative
  
Cost of
Products Sold
  
Total
 
Employee separation
 
$
319
  
$
-
  
$
319
 
Long-lived asset impairment
  
262
   
-
   
262
 
Write-down of inventory
  
-
   
166
   
166
 
Other restructuring costs(1)
  
2,528
   
-
   
2,528
 
             
Total
 
$
3,109
  
$
166
  
$
3,275
 
 
Six Months Ended June 30, 2016

(In thousands)
 
Selling &
Administrative
  
Cost of
Products Sold
  
Total
 
Employee separation
 
$
450
  
$
-
  
$
450
 
Long-lived asset impairment
  
733
   
-
   
733
 
Write-down of inventory
  
-
   
810
   
810
 
Other restructuring costs(1)
  
4,624
   
-
   
4,624
 
             
Total
 
$
5,807
  
$
810
  
$
6,617
 
 
(1)Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs.
 
The Company recorded restructuring costs in continuing operations for the three and six months ended June 30, 2015, as follows:

Three Months Ended June 30, 2015

(In thousands)
 
Selling &
Administrative
  
Cost of
Products Sold
  
Total
 
Employee separation
 
$
1,796
  
$
-
  
$
1,796
 
Long-lived asset impairment
  
3,665
   
-
   
3,665
 
Write-down of inventory
  
-
   
140
   
140
 
Other restructuring costs(1)
  
4,021
   
-
   
4,021
 
             
Total
 
$
9,482
  
$
140
  
$
9,622
 
 
Six Months Ended June 30, 2015

(In thousands)
 
Selling &
Administrative
  
Cost of
Products Sold
  
Total
 
Employee separation
 
$
3,704
  
$
-
  
$
3,704
 
Long-lived asset impairment
  
7,480
   
-
   
7,480
 
Gain on asset sales
  
(1,301
)
  
-
   
(1,301
)
Write-down of inventory
  
-
   
281
   
281
 
Other restructuring costs(1)
  
6,573
   
-
   
6,573
 
             
Total
 
$
16,456
  
$
281
  
$
16,737
 

(1)Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs.

The following table summarizes the accrual activities for the restructuring activities for the six months ended June 30, 2016:

 
(In thousands)
 
Employee
Separations
  
Other
  
Total
 
Balance as of December 31, 2015
 
$
10,260
  
$
912
  
$
11,172
 
Expense activity
  
450
   
4,624
   
5,074
 
Cash spent
  
(2,574
)
  
(4,718
)
  
(7,292
)
Translation adjustment
  
145
   
-
   
145
 
Balance as of June 30, 2016
 
$
8,281
  
$
818
  
$
9,099
 
XML 25 R16.htm IDEA: XBRL DOCUMENT v3.5.0.2
Discontinued Operations
6 Months Ended
Jun. 30, 2016
Discontinued Operations [Abstract]  
Discontinued Operations
11.Discontinued Operations

In connection with the 2014 Restructuring Plan, the Company approved a plan to dispose of a business unit within the Color segment, located near Leipzig, Germany. Since 2014, the business has met the criteria to be presented as a discontinued operation as established in ASC Subtopic 205-20, Discontinued Operations. The results of this business have been reported as a discontinued operation in the Consolidated Condensed Statements of Earnings for all periods presented. During the current quarter, the facility and remaining assets were sold for a gain of $0.2 million. In addition, the entity was liquidated resulting in a reclassification of the cumulative translation adjustment of $3.3 million into net earnings. The pre-tax gain from discontinued operations, which includes restructuring costs, was $3.4 million in both the three and six months ended June 30, 2016.
 
The following table summarizes the discontinued operation’s results for the three and six months ended June 30, 2016 and 2015:

  
Three Months Ended
June 30,
  
Six Months Ended
June 30,
 
(In thousands)
 
2016
  
2015
  
2016
  
2015
 
             
Revenue
 
$
-
  
$
-
  
$
-
  
$
187
 
Gain (Loss) from discontinued operations before income taxes
  
3,441
   
(134
)
  
3,410
   
(428
)
Income tax (expense) benefit
  
(76
)
  
42
   
(67
)
  
127
 
Gain (Loss) from discontinued operations, net of tax
 
$
3,365
  
$
(92
)
 
$
3,343
  
$
(301
)
XML 26 R17.htm IDEA: XBRL DOCUMENT v3.5.0.2
Anticipated Divestiture
6 Months Ended
Jun. 30, 2016
Anticipated Divestiture [Abstract]  
Anticipated Divestiture
12.Anticipated Divestiture

During the three months ended June 30, 2016, the Board of Directors authorized management to explore strategic alternatives for a facility and certain related business lines within the Flavors & Fragrances segment in Europe. The Company anticipates a sale within the next year and has recorded assets held for sale of inventory and other assets of $22.2 million and $1.4 million of liabilities held for sale related to the anticipated sale. In addition, the Company has recorded an impairment charge of $10.3 million during the three months ended June 30, 2016 in selling and administrative expense, reducing the carrying value of the long-lived assets for this facility to zero. An estimate of the fair value of this business less cost to sell was determined to be lower than its carrying value. The difference between the fair value and its carrying value exceeded the existing net book value of the long-lived assets. If a sale is completed, the Company expects to recognize an additional non-cash loss of approximately $9.1 million.
XML 27 R18.htm IDEA: XBRL DOCUMENT v3.5.0.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2016
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
13.Commitments and Contingencies

U.S. Equal Employment Opportunity Commission Civil Complaint
On September 21, 2015, the U.S. Equal Employment Opportunity Commission (EEOC) filed a civil complaint against Sensient Natural Ingredients LLC (SNI) in the U.S. District Court for the Eastern District of California.  SNI is a wholly owned subsidiary of the Company. The EEOC’s complaint alleges that SNI failed to comply with the Americans with Disabilities Act (ADA), as amended, when it terminated five employees in 2011.  The EEOC seeks to enjoin SNI from engaging in employment practices that discriminate on the basis of disability; asks the Court to order SNI to implement policies, practices, and programs to ensure it does not violate the ADA; and requests back pay with prejudgment interest, reinstatement, front pay, compensation for past and future pecuniary and non-pecuniary losses, and punitive damages on behalf of the five named former employees and any similarly aggrieved individuals.  Recoverable compensatory and punitive damages are subject to statutory caps.  The complaint does not request a specific damages amount.  To date, the EEOC has provided the Company with a list of 13 additional potentially aggrieved former employees not listed in the complaint who may have been terminated in violation of the ADA during the relevant time period.  In its discovery responses, the EEOC has identified 3 of those 13 former employees as additional claimants for whom the Agency seeks relief.  The Parties are currently engaged in the discovery process.

The Company is vigorously investigating the facts alleged in the complaint to determine what exposure SNI may have.  Since 2013, SNI’s on-site human resources representatives have worked closely with both Company counsel and outside labor and employment counsel to ensure that all policies, procedures and actions, including terminations, comply with applicable law.  At this early stage, it is not possible to assess the probability of any legal or financial exposure.

Other Claims and Litigation
The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period.
XML 28 R19.htm IDEA: XBRL DOCUMENT v3.5.0.2
Segment Information (Tables)
6 Months Ended
Jun. 30, 2016
Segment Information [Abstract]  
Segment Information
Operating results by segment for the periods presented are as follows:

(In thousands)
 
Flavors &
Fragrances
  
Color
  
Asia
Pacific
  
Corporate
& Other
  
Consolidated
 
Three months ended June 30, 2016:
               
Revenue from external customers
 
$
201,590
  
$
127,461
  
$
31,785
  
$
-
  
$
360,836
 
Intersegment revenue
  
7,737
   
4,135
   
38
   
-
   
11,910
 
Total revenue
 
$
209,327
  
$
131,596
  
$
31,823
  
$
-
  
$
372,746
 
                     
Operating income (loss)
 
$
35,307
  
$
28,004
  
$
6,112
  
$
(25,758
)
 
$
43,665
 
Interest expense
  
-
   
-
   
-
   
4,637
   
4,637
 
Earnings (loss) before income taxes
 
$
35,307
  
$
28,004
  
$
6,112
  
$
(30,395
)
 
$
39,028
 
                     
Three months ended June 30, 2015:
                    
Revenue from external customers
 
$
198,077
  
$
118,236
  
$
29,696
  
$
-
  
$
346,009
 
Intersegment revenue
  
6,555
   
3,614
   
53
   
-
   
10,222
 
Total revenue
 
$
204,632
  
$
121,850
  
$
29,749
  
$
-
  
$
356,231
 
                     
Operating income (loss)
 
$
32,526
  
$
25,528
  
$
6,094
  
$
(19,081
)
 
$
45,067
 
Interest expense
  
-
   
-
   
-
   
4,106
   
4,106
 
Earnings (loss) before income taxes
 
$
32,526
  
$
25,528
  
$
6,094
  
$
(23,187
)
 
$
40,961
 
 
(In thousands)
 
Flavors &
Fragrances
  
Color
  
Asia
Pacific
  
Corporate
& Other
  
Consolidated
 
Six months ended June 30, 2016:
               
Revenue from external customers
 
$
392,110
  
$
249,742
  
$
61,452
  
$
-
  
$
703,304
 
Intersegment revenue
  
15,556
   
7,888
   
78
   
-
   
23,522
 
Total revenue
 
$
407,666
  
$
257,630
  
$
61,530
  
$
-
  
$
726,826
 
                     
Operating income (loss)
 
$
62,817
  
$
55,848
  
$
12,117
  
$
(39,598
)
 
$
91,184
 
Interest expense
  
-
   
-
   
-
   
9,437
   
9,437
 
Earnings (loss) before income taxes
 
$
62,817
  
$
55,848
  
$
12,117
  
$
(49,035
)
 
$
81,747
 
                     
Six months ended June 30, 2015:
                    
Revenue from external customers
 
$
397,177
  
$
236,591
  
$
58,467
  
$
-
  
$
692,235
 
Intersegment revenue
  
13,433
   
7,457
   
85
   
-
   
20,975
 
Total revenue
 
$
410,610
  
$
244,048
  
$
58,552
  
$
-
  
$
713,210
 
                     
Operating income (loss)
 
$
62,985
  
$
51,791
  
$
11,745
  
$
(35,008
)
 
$
91,513
 
Interest expense
  
-
   
-
   
-
   
8,021
   
8,021
 
Earnings (loss) before income taxes
 
$
62,985
  
$
51,791
  
$
11,745
  
$
(43,029
)
 
$
83,492
 
XML 29 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
Retirement Plans (Tables)
6 Months Ended
Jun. 30, 2016
Retirement Plans [Abstract]  
Components of Annual Benefit Cost
The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows:

  
Three Months Ended
June 30,
  
Six Months Ended
June 30,
 
(In thousands)
 
2016
  
2015
  
2016
  
2015
 
             
Service cost
 
$
503
  
$
661
  
$
1,006
  
$
1,323
 
Interest cost
  
425
   
473
   
845
   
945
 
Expected return on plan assets
  
(300
)
  
(324
)
  
(597
)
  
(646
)
Amortization of actuarial loss
  
55
   
74
   
108
   
147
 
                 
Total defined benefit expense
 
$
683
  
$
884
  
$
1,362
  
$
1,769
 
XML 30 R21.htm IDEA: XBRL DOCUMENT v3.5.0.2
Accumulated Other Comprehensive Income (Tables)
6 Months Ended
Jun. 30, 2016
Accumulated Other Comprehensive Income [Abstract]  
Changes in Accumulated Other Comprehensive Income (AOCI)
The following table summarizes the changes in OCI during the three- and six-month periods ended June 30, 2016:

(In thousands)
 
Cash Flow
Hedges (a)
  
Pension
Items (a)
  
Foreign
Currency
Items
  
Total
 
Balance as of March 31, 2016
 
$
(1,028
)
 
$
(4,357
)
 
$
(149,098
)
 
$
(154,483
)
Other comprehensive income before reclassifications
  
828
   
-
   
(18,720
)
  
(17,892
)
Amounts reclassified from OCI
  
170
   
37
   
(3,257
)
  
(3,050
)
Balance as of June 30, 2016
 
$
(30
)
 
$
(4,320
)
 
$
(171,075
)
 
$
(175,425
)
 
(In thousands)
 
Cash Flow
Hedges (a)
  
Pension
Items (a)
  
Foreign
Currency
Items
  
Total
 
Balance as of December 31, 2015
 
$
164
  
$
(4,393
)
 
$
(165,833
)
 
$
(170,062
)
Other comprehensive income before reclassifications
  
(743
)
  
-
   
(1,985
)
  
(2,727
)
Amounts reclassified from OCI
  
549
   
73
   
(3,257
)
  
(2,636
)
Balance as of June 30, 2016
 
$
(30
)
 
$
(4,320
)
 
$
(171,075
)
 
$
(175,425
)

(a)Cash Flow Hedges and Pension Items are net of tax.
XML 31 R22.htm IDEA: XBRL DOCUMENT v3.5.0.2
Restructuring (Tables)
6 Months Ended
Jun. 30, 2016
Restructuring [Abstract]  
Restructuring Cost by Segment
The following table summarizes the restructuring expense by segment and discontinued operations for the three and six months ended June 30, 2016 and 2015, respectively:
 
  
Three Months Ended
June 30,
  
Six Months Ended
June 30,
 
(In thousands)
 
2016
  
2015
  
2016
  
2015
 
             
Flavors & Fragrances
 
$
2,925
  
$
7,191
  
$
5,867
  
$
13,020
 
Color
  
93
   
1,422
   
132
   
1,583
 
Asia Pacific
  
-
   
-
   
-
   
58
 
Corporate & Other
  
257
   
1,009
   
618
   
2,076
 
                 
Total Continuing Operations
  
3,275
   
9,622
   
6,617
   
16,737
 
                 
Discontinued Operations
  
(3,485
)
  
85
   
(3,485
)
  
114
 
                 
Total Restructuring
 
$
(210
)
 
$
9,707
  
$
3,132
  
$
16,851
 
Summary of Restructuring Costs
The Company recorded restructuring costs in continuing operations for the three and six months ended June 30, 2016, as follows:

Three Months Ended June 30, 2016

(In thousands)
 
Selling &
Administrative
  
Cost of
Products Sold
  
Total
 
Employee separation
 
$
319
  
$
-
  
$
319
 
Long-lived asset impairment
  
262
   
-
   
262
 
Write-down of inventory
  
-
   
166
   
166
 
Other restructuring costs(1)
  
2,528
   
-
   
2,528
 
             
Total
 
$
3,109
  
$
166
  
$
3,275
 
 
Six Months Ended June 30, 2016

(In thousands)
 
Selling &
Administrative
  
Cost of
Products Sold
  
Total
 
Employee separation
 
$
450
  
$
-
  
$
450
 
Long-lived asset impairment
  
733
   
-
   
733
 
Write-down of inventory
  
-
   
810
   
810
 
Other restructuring costs(1)
  
4,624
   
-
   
4,624
 
             
Total
 
$
5,807
  
$
810
  
$
6,617
 
 
(1)Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs.
 
The Company recorded restructuring costs in continuing operations for the three and six months ended June 30, 2015, as follows:

Three Months Ended June 30, 2015

(In thousands)
 
Selling &
Administrative
  
Cost of
Products Sold
  
Total
 
Employee separation
 
$
1,796
  
$
-
  
$
1,796
 
Long-lived asset impairment
  
3,665
   
-
   
3,665
 
Write-down of inventory
  
-
   
140
   
140
 
Other restructuring costs(1)
  
4,021
   
-
   
4,021
 
             
Total
 
$
9,482
  
$
140
  
$
9,622
 
 
Six Months Ended June 30, 2015

(In thousands)
 
Selling &
Administrative
  
Cost of
Products Sold
  
Total
 
Employee separation
 
$
3,704
  
$
-
  
$
3,704
 
Long-lived asset impairment
  
7,480
   
-
   
7,480
 
Gain on asset sales
  
(1,301
)
  
-
   
(1,301
)
Write-down of inventory
  
-
   
281
   
281
 
Other restructuring costs(1)
  
6,573
   
-
   
6,573
 
             
Total
 
$
16,456
  
$
281
  
$
16,737
 

(1)Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs.
Summary of Accrual for Restructuring and Other Charges
The following table summarizes the accrual activities for the restructuring activities for the six months ended June 30, 2016:

 
(In thousands)
 
Employee
Separations
  
Other
  
Total
 
Balance as of December 31, 2015
 
$
10,260
  
$
912
  
$
11,172
 
Expense activity
  
450
   
4,624
   
5,074
 
Cash spent
  
(2,574
)
  
(4,718
)
  
(7,292
)
Translation adjustment
  
145
   
-
   
145
 
Balance as of June 30, 2016
 
$
8,281
  
$
818
  
$
9,099
 
XML 32 R23.htm IDEA: XBRL DOCUMENT v3.5.0.2
Discontinued Operations (Tables)
6 Months Ended
Jun. 30, 2016
Discontinued Operations [Abstract]  
Schedule of Certain Consolidated Condensed Statements of Earnings Information for Discontinued Operations
The following table summarizes the discontinued operation’s results for the three and six months ended June 30, 2016 and 2015:

  
Three Months Ended
June 30,
  
Six Months Ended
June 30,
 
(In thousands)
 
2016
  
2015
  
2016
  
2015
 
             
Revenue
 
$
-
  
$
-
  
$
-
  
$
187
 
Gain (Loss) from discontinued operations before income taxes
  
3,441
   
(134
)
  
3,410
   
(428
)
Income tax (expense) benefit
  
(76
)
  
42
   
(67
)
  
127
 
Gain (Loss) from discontinued operations, net of tax
 
$
3,365
  
$
(92
)
 
$
3,343
  
$
(301
)
XML 33 R24.htm IDEA: XBRL DOCUMENT v3.5.0.2
Accounting Policies (Details)
$ in Millions
Dec. 31, 2015
USD ($)
ASU 2015-03 [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Debt fees from other assets reclassified as long term debt $ 0.4
ASU 2015-17 [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Deferred tax assets current reclassified as deferred tax asset noncurrent 17.1
Deferred tax assets current reclassified as deferred tax liability noncurrent $ 7.3
XML 34 R25.htm IDEA: XBRL DOCUMENT v3.5.0.2
Fair Value (Details) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments $ 1.5 $ 1.5
Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Forward exchange contracts, liability 0.1 $ 0.2
Level 2 [Member] | Carrying Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long term debt 601.8  
Level 2 [Member] | Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long term debt $ 624.4  
XML 35 R26.htm IDEA: XBRL DOCUMENT v3.5.0.2
Segment Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Segment Reporting Information [Line Items]        
Revenue from external customers $ 360,836 $ 346,009 $ 703,304 $ 692,235
Total Revenue 372,746 356,231 726,826 713,210
Operating income (loss) 43,665 45,067 91,184 91,513
Interest expense 4,637 4,106 9,437 8,021
Earnings before income taxes 39,028 40,961 81,747 83,492
Flavors & Fragrances [Member]        
Segment Reporting Information [Line Items]        
Total Revenue 209,327 204,632 407,666 410,610
Color [Member]        
Segment Reporting Information [Line Items]        
Total Revenue 131,596 121,850 257,630 244,048
Asia Pacific [Member]        
Segment Reporting Information [Line Items]        
Total Revenue 31,823 29,749 61,530 58,552
Corporate and Other [Member]        
Segment Reporting Information [Line Items]        
Total Revenue 0 0 0 0
Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 360,836 346,009 703,304 692,235
Operating Segments [Member] | Flavors & Fragrances [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 201,590 198,077 392,110 397,177
Operating income (loss) 35,307 32,526 62,817 62,985
Interest expense 0 0 0 0
Earnings before income taxes 35,307 32,526 62,817 62,985
Operating Segments [Member] | Color [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 127,461 118,236 249,742 236,591
Operating income (loss) 28,004 25,528 55,848 51,791
Interest expense 0 0 0 0
Earnings before income taxes 28,004 25,528 55,848 51,791
Operating Segments [Member] | Asia Pacific [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 31,785 29,696 61,452 58,467
Operating income (loss) 6,112 6,094 12,117 11,745
Interest expense 0 0 0 0
Earnings before income taxes 6,112 6,094 12,117 11,745
Operating Segments [Member] | Corporate and Other [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 0 0 0 0
Operating income (loss) (25,758) (19,081) (39,598) (35,008)
Interest expense 4,637 4,106 9,437 8,021
Earnings before income taxes (30,395) (23,187) (49,035) (43,029)
Intersegment Revenue [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 11,910 10,222 23,522 20,975
Intersegment Revenue [Member] | Flavors & Fragrances [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 7,737 6,555 15,556 13,433
Intersegment Revenue [Member] | Color [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 4,135 3,614 7,888 7,457
Intersegment Revenue [Member] | Asia Pacific [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 38 53 78 85
Intersegment Revenue [Member] | Corporate and Other [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers $ 0 $ 0 $ 0 $ 0
XML 36 R27.htm IDEA: XBRL DOCUMENT v3.5.0.2
Inventories (Details) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Inventories [Abstract]    
Inventories, including finished and in-process products $ 259.2 $ 291.9
Raw materials and supplies $ 122.7 $ 117.3
XML 37 R28.htm IDEA: XBRL DOCUMENT v3.5.0.2
Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Defined Benefit Plan Disclosure [Line Items]        
Service cost $ 503 $ 661 $ 1,006 $ 1,323
Interest cost 425 473 845 945
Expected return on plan assets (300) (324) (597) (646)
Amortization of actuarial loss 55 74 108 147
Total defined benefit expense $ 683 $ 884 $ 1,362 $ 1,769
XML 38 R29.htm IDEA: XBRL DOCUMENT v3.5.0.2
Shareholders' Equity (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Shareholders' Equity [Abstract]        
Common stock repurchased during the period (in shares) 47,456 1,000,000 311,226 1,900,000
Common stock repurchased during the period, value $ 3.1 $ 66.3 $ 18.5 $ 127.2
XML 39 R30.htm IDEA: XBRL DOCUMENT v3.5.0.2
Derivative Instruments and Hedging Activity (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Derivative instruments and hedging activity for the period [Abstract]        
Impact of foreign exchange rates on debt instruments recorded in Other Comprehensive Income $ (4.8) $ 3.6    
Maximum [Member]        
Derivative instruments and hedging activity for the period [Abstract]        
Number of months for forward exchange contracts to mature   18 months    
Forward Exchange Contracts [Member]        
Derivative instruments and hedging activity for the period [Abstract]        
Amount of gain (loss) reclassified into net earnings (0.2) $ (0.7) $ (0.3)  
Forward Exchange Contracts [Member] | Cash Flow Hedges [Member]        
Derivative instruments and hedging activity for the period [Abstract]        
Derivative, fair value 18.8 18.8   $ 35.2
Foreign Currency Denominated Debt, Net Investment Hedging [Member]        
Derivative instruments and hedging activity for the period [Abstract]        
Carrying value of foreign denominated debt $ 206.3 $ 206.3   $ 162.5
XML 40 R31.htm IDEA: XBRL DOCUMENT v3.5.0.2
Income Taxes (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Income Taxes [Abstract]        
Effective income tax rates 36.60% 27.90% 31.60% 27.80%
XML 41 R32.htm IDEA: XBRL DOCUMENT v3.5.0.2
Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2016
Accumulated Other Comprehensive Loss [Roll Forward]    
Beginning balance   $ 845,127
Other comprehensive income before reclassifications $ (17,892) (2,727)
Amounts reclassified from OCI (3,050) (2,636)
Ending balance 862,318 862,318
Accumulated Other Comprehensive Loss [Member]    
Accumulated Other Comprehensive Loss [Roll Forward]    
Beginning balance (154,483) (170,062)
Ending balance (175,425) (175,425)
Cash Flow Hedges [Member]    
Accumulated Other Comprehensive Loss [Roll Forward]    
Beginning balance [1] (1,028) 164
Other comprehensive income before reclassifications [1] 828 (743)
Amounts reclassified from OCI [1] 170 549
Ending balance [1] (30) (30)
Pension Items [Member]    
Accumulated Other Comprehensive Loss [Roll Forward]    
Beginning balance [1] (4,357) (4,393)
Other comprehensive income before reclassifications [1] 0 0
Amounts reclassified from OCI [1] 37 73
Ending balance [1] (4,320) (4,320)
Foreign Currency Items [Member]    
Accumulated Other Comprehensive Loss [Roll Forward]    
Beginning balance (149,098) (165,833)
Other comprehensive income before reclassifications (18,720) (1,985)
Amounts reclassified from OCI (3,257) (3,257)
Ending balance $ (171,075) $ (171,075)
[1] Cash Flow Hedges and Pension Items are net of tax.
XML 42 R33.htm IDEA: XBRL DOCUMENT v3.5.0.2
Restructuring (Details)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended 27 Months Ended
Jun. 30, 2016
USD ($)
Jun. 30, 2015
USD ($)
Jun. 30, 2016
USD ($)
Facilities
Positions
Jun. 30, 2015
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Jun. 30, 2016
USD ($)
Positions
Restructuring Cost and Reserve [Line Items]              
Estimated fair values of the remaining long-lived assets $ 19,000   $ 19,000       $ 19,000
Long lived asset impairments recorded to date             $ 85,500
Position reduction due to restructuring | Positions     400        
Number of positions eliminated due to restructuring | Positions             272
Non-cash loss on sale of business     $ 13,000        
Liabilities held for sale 4,509   4,509   $ 4,090   $ 4,509
Total restructuring costs incurred to date 144,600   144,600       144,600
Estimated cost savings due to restructuring     30,000        
Annual cost of savings     27,000        
Realized cost of savings         9,000 $ 3,000  
Expected incremental saving realized 2,100   4,100        
Pre-tax gain from discontinued operations 3,441 $ (134) 3,410 $ (428)      
Gain on sale of facilities 200            
Restructuring cost by segment [Abstract]              
Total continuing operations 3,275 9,622 6,617 16,737      
Discontinued operations (3,485) 85 (3,485) 114      
Total restructuring (210) 9,707 3,132 16,851      
Detail of the restructuring costs [Abstract]              
Employee separation 319 1,796 450 3,704      
Long-lived asset impairment 262 3,665 733 7,480      
Gain on asset sales       (1,301)      
Write-down of inventory 166 140 810 281      
Other restructuring costs [1] 2,528 4,021 4,624 6,573      
Future restructuring costs, 2016 13,000   13,000       13,000
Future restructuring costs, 2017 4,000   4,000       4,000
Translation adjustment reclassified into net earnings 3,300            
Summary of accrual for restructuring and other charges [Roll Forward]              
Balance as of beginning of period     11,172        
Expense activity     5,074        
Cash spent     (7,292)        
Translation adjustment     145        
Balance as of end of period 9,099   9,099   11,172   9,099
Minimum [Member]              
Restructuring Cost and Reserve [Line Items]              
Expected incremental savings in 2016 6,000   6,000       6,000
Maximum [Member]              
Restructuring Cost and Reserve [Line Items]              
Expected incremental savings in 2016 7,000   $ 7,000       7,000
Europe [Member]              
Restructuring Cost and Reserve [Line Items]              
Facilities identified for sell | Facilities     2        
Selling & Administrative [Member]              
Restructuring cost by segment [Abstract]              
Total continuing operations 3,109 9,482 $ 5,807 16,456      
Detail of the restructuring costs [Abstract]              
Employee separation 319 1,796 450 3,704      
Long-lived asset impairment 262 3,665 733 7,480      
Gain on asset sales       (1,301)      
Write-down of inventory 0 0 0 0      
Other restructuring costs [1] 2,528 4,021 4,624 6,573      
Cost of Products Sold [Member]              
Restructuring cost by segment [Abstract]              
Total continuing operations 166 140 810 281      
Detail of the restructuring costs [Abstract]              
Employee separation 0 0 0 0      
Long-lived asset impairment 0 0 0 0      
Gain on asset sales       0      
Write-down of inventory 166 140 810 281      
Other restructuring costs [1] 0 0 $ 0 0      
Flavors & Fragrances [Member]              
Restructuring Cost and Reserve [Line Items]              
Facilities identified for consolidation | Facilities     8        
Restructuring cost by segment [Abstract]              
Total continuing operations 2,925 7,191 $ 5,867 13,020      
Flavors & Fragrances [Member] | North America [Member]              
Restructuring Cost and Reserve [Line Items]              
Facilities identified for consolidation | Facilities     4        
Flavors & Fragrances [Member] | Europe [Member]              
Restructuring Cost and Reserve [Line Items]              
Facilities identified for consolidation | Facilities     4        
Color [Member]              
Restructuring cost by segment [Abstract]              
Total continuing operations 93 1,422 $ 132 1,583      
Asia Pacific [Member]              
Restructuring cost by segment [Abstract]              
Total continuing operations 0 0 0 58      
Corporate & Other [Member]              
Restructuring cost by segment [Abstract]              
Total continuing operations 257 $ 1,009 618 $ 2,076      
European Natural Ingredients Business [Member]              
Restructuring Cost and Reserve [Line Items]              
Assets held for sale of inventory, receivable and other assets 18,800   18,800       18,800
Liabilities held for sale 3,100   3,100       3,100
2014 Restructuring Plan [Member]              
Restructuring Cost and Reserve [Line Items]              
Assets held for sale of land, building and equipment 9,400   9,400       9,400
Employee Separations [Member]              
Summary of accrual for restructuring and other charges [Roll Forward]              
Balance as of beginning of period     10,260        
Expense activity     450        
Cash spent     (2,574)        
Translation adjustment     145        
Balance as of end of period 8,281   8,281   10,260   8,281
Other [Member]              
Summary of accrual for restructuring and other charges [Roll Forward]              
Balance as of beginning of period     912        
Expense activity     4,624        
Cash spent     (4,718)        
Translation adjustment     0        
Balance as of end of period $ 818   $ 818   $ 912   $ 818
[1] Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs.
XML 43 R34.htm IDEA: XBRL DOCUMENT v3.5.0.2
Discontinued Operations (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Certain Consolidated Condensed Statements of Earnings information for discontinued operations [Abstract]        
Revenue $ 0 $ 0 $ 0 $ 187
Gain (Loss) from discontinued operations before income taxes 3,441 (134) 3,410 (428)
Income tax (expense) benefit (76) 42 (67) 127
Gain (Loss) from discontinued operations, net of tax 3,365 $ (92) $ 3,343 $ (301)
Gain on sale of assets 200      
Translation adjustment reclassified into net earnings $ 3,300      
XML 44 R35.htm IDEA: XBRL DOCUMENT v3.5.0.2
Anticipated Divestiture (Details) - Flavors & Fragrances [Member] - Europe [Member]
$ in Millions
3 Months Ended
Jun. 30, 2016
USD ($)
Long Lived Assets Held-for-sale [Line Items]  
Assets held for sale of inventory and other assets $ 22.2
Liabilities held for sale 1.4
Impairment charges included in selling, general and administrative expenses 10.3
Expected non-cash loss on assets held for sale $ 9.1
XML 45 R36.htm IDEA: XBRL DOCUMENT v3.5.0.2
Commitments and Contingencies (Details) - Sensient Natural Ingredients LLC [Member]
6 Months Ended
Jun. 30, 2016
Employee
Loss Contingencies [Line Items]  
Number of employees terminated 5
Number of additional potentially aggrieved former employees 13
Number of additional claimants 3
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