10-Q

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: September 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 October 31, 2016
Common Stock, par value $0.10 per share	44,542,816

SENSIENT TECHNOLOGIES CORPORATION

INDEX

		Page No.
PART I. FINANCIAL INFORMATION:
Item 1.	Financial Statements:
	Consolidated Condensed Statements of Earnings ‑ Three and Nine Months Ended September 30, 2016 and 2015.	1
	Consolidated Condensed Statements of Comprehensive Income - Three and Nine Months Ended September 30, 2016 and 2015.	2
	Consolidated Condensed Balance Sheets - September 30, 2016 and December 31, 2015.	3
	Consolidated Condensed Statements of Cash Flows ‑ Nine Months Ended September 30, 2016 and 2015.	4
	Notes to Consolidated Condensed Financial Statements.	5
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	21
Item 4.	Controls and Procedures.	21
PART II. OTHER INFORMATION:
Item 1.	Legal Proceedings.	22
Item 1A.	Risk Factors.	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	23
Item 6.	Exhibits.	23
	Signatures.	24
	Exhibit Index.	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 September 30,					Nine Months Ended September 30,
	2016		2015			2016		2015
Revenue	$	349,662	$	344,533		$	1,052,966	$	1,036,768
Cost of products sold		227,099		231,761			690,126		688,408
Selling and administrative expenses		71,412		69,552			220,505		213,627
Operating income		51,151		43,220			142,335		134,733
Interest expense		4,584		4,295			14,021		12,316
Earnings before income taxes		46,567		38,925			128,314		122,417
Income taxes		10,948		11,287			36,751		34,502
Earnings from continuing operations		35,619		27,638			91,563		87,915
Gain (Loss) from discontinued operations, net of tax		-		(47	)		3,343		(348	)
Net earnings	$	35,619	$	27,591		$	94,906	$	87,567
Weighted average number of shares outstanding:
Basic		44,532		45,392			44,604		46,239
Diluted		44,816		45,675			44,873		46,543
Earnings per common share:
Basic:
Continuing operations	$	0.80	$	0.61		$	2.05	$	1.90
Discontinued operations		-		-			0.07		(0.01	)
Earnings per common share	$	0.80	$	0.61		$	2.13	$	1.89
Diluted:
Continuing operations	$	0.79	$	0.61		$	2.04	$	1.89
Discontinued operations		-		-			0.07		(0.01	)
Earnings per common share	$	0.79	$	0.60		$	2.11	$	1.88
Dividends declared per common share	$	0.27	$	0.27		$	0.81	$	0.77

See accompanying notes to consolidated condensed financial statements.

1

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Comprehensive Income	$	32,784	$	7,077	$	86,708	$	24,922

See accompanying notes to consolidated condensed financial statements.

2

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands)

	September 30, 2016 (Unaudited)			December 31, 2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	23,505		$	11,997
Trade accounts receivable, net		244,157			232,047
Inventories		406,957			409,159
Prepaid expenses and other current assets		37,792			44,673
Assets held for sale		48,796			31,029
TOTAL CURRENT ASSETS		761,207			728,905
OTHER ASSETS		72,416			71,117
DEFERRED TAX ASSETS		17,323			25,177
INTANGIBLE ASSETS, NET		8,480			9,209
GOODWILL		397,764			399,646
PROPERTY, PLANT AND EQUIPMENT:
Land		35,118			33,975
Buildings		271,566			274,318
Machinery and equipment		651,446			664,917
Construction in progress		85,251			62,515
		1,043,381			1,035,725
Less accumulated depreciation		(564,952	)		(566,047	)
		478,429			469,678
TOTAL ASSETS	$	1,735,619		$	1,703,732
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable	$	99,468		$	95,442
Accrued salaries, wages and withholdings from employees		25,766			23,530
Other accrued expenses		68,756			61,701
Income taxes		2,848			7,504
Short-term borrowings		21,417			20,655
Liabilities held for sale		6,192			4,090
TOTAL CURRENT LIABILITIES		224,447			212,922
DEFERRED INCOME TAXES		7,225			5,640
OTHER LIABILITIES		7,792			7,534
ACCRUED EMPLOYEE AND RETIREE BENEFITS		20,919			19,007
LONG‑TERM DEBT		596,840			613,502
SHAREHOLDERS' EQUITY:
Common stock		5,396			5,396
Additional paid‑in capital		114,642			109,974
Earnings reinvested in the business		1,360,851			1,302,302
Treasury stock, at cost		(424,233	)		(402,483	)
Accumulated other comprehensive loss		(178,260	)		(170,062	)
TOTAL SHAREHOLDERS’ EQUITY		878,396			845,127
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,735,619		$	1,703,732

See accompanying notes to consolidated condensed financial statements.

3

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended September 30,
	2016			2015
Cash flows from operating activities:
Net earnings	$	94,906		$	87,567
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization		35,176			36,374
Share-based compensation		6,743			14
Loss on assets		7,893			8,725
Deferred income taxes		8,454			4,466
Liquidation of foreign entity		(3,257	)		-
Changes in operating assets and liabilities		679			(43,672	)
Net cash provided by operating activities		150,594			93,474
Cash flows from investing activities:
Acquisition of property, plant and equipment		(58,004	)		(55,508	)
Proceeds from sale of assets		3,597			12,826
Acquisition of new business		-			(8,393	)
Other investing activity		(82	)		(168	)
Net cash used in investing activities		(54,489	)		(51,243	)
Cash flows from financing activities:
Proceeds from additional borrowings		163,370			198,857
Debt payments		(185,697	)		(31,850	)
Purchase of treasury stock		(27,728	)		(160,990	)
Dividends paid		(36,357	)		(35,901	)
Proceeds from options exercised and other equity transactions		409			554
Net cash used in financing activities		(86,003	)		(29,330	)
Effect of exchange rate changes on cash and cash equivalents		1,406			(9,050	)
Net increase in cash and cash equivalents		11,508			3,851
Cash and cash equivalents at beginning of period		11,997			20,329
Cash and cash equivalents at end of period	$	23,505		$	24,180

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) that are necessary to present fairly the financial position of the Company as of September 30, 2016; the results of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015; and cash flows for the nine months ended September 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 does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

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 September 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 $0.2 million as of September 30, 2016, and December 31, 2015. The fair value of the investments based on September 30, 2016, and December 31, 2015, market quotes (Level 1 inputs) was an asset of $4.2 million and $1.5 million, respectively, 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 September 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 September 30, 2016, was $596.8 million. The fair value of the long-term debt at September 30, 2016, was $619.4 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 September 30, 2016:
Revenue from external customers	$	194,845	$	121,424	$	33,393	$	-		$	349,662
Intersegment revenue		5,818		4,021		51		-			9,890
Total revenue	$	200,663	$	125,445	$	33,444	$	-		$	359,552
Operating income (loss)	$	32,280	$	26,295	$	6,584	$	(14,008	)	$	51,151
Interest expense		-		-		-		4,584			4,584
Earnings (loss) before income taxes	$	32,280	$	26,295	$	6,584	$	(18,592	)	$	46,567
Three months ended September 30, 2015:
Revenue from external customers	$	201,049	$	115,146	$	28,338	$	-		$	344,533
Intersegment revenue		6,324		3,322		35		-			9,681
Total revenue	$	207,373	$	118,468	$	28,373	$	-		$	354,214
Operating income (loss)	$	31,369	$	23,181	$	5,703	$	(17,033	)	$	43,220
Interest expense		-		-		-		4,295			4,295
Earnings (loss) before income taxes	$	31,369	$	23,181	$	5,703	$	(21,328	)	$	38,925

6

(In thousands)	Flavors & Fragrances		Color		Asia Pacific		Corporate & Other			Consolidated
Nine months ended September 30, 2016:
Revenue from external customers	$	586,955	$	371,166	$	94,845	$	-		$	1,052,966
Intersegment revenue		21,374		11,909		129		-			33,412
Total revenue	$	608,329	$	383,075	$	94,974	$	-		$	1,086,378
Operating income (loss)	$	95,097	$	82,143	$	18,701	$	(53,606	)	$	142,335
Interest expense		-		-		-		14,021			14,021
Earnings (loss) before income taxes	$	95,097	$	82,143	$	18,701	$	(67,627	)	$	128,314
Nine months ended September 30, 2015:
Revenue from external customers	$	598,226	$	351,737	$	86,805	$	-		$	1,036,768
Intersegment revenue		19,757		10,779		120		-			30,656
Total revenue	$	617,983	$	362,516	$	86,925	$	-		$	1,067,424
Operating income (loss)	$	94,354	$	74,972	$	17,448	$	(52,041	)	$	134,733
Interest expense		-		-		-		12,316			12,316
Earnings (loss) before income taxes	$	94,354	$	74,972	$	17,448	$	(64,357	)	$	122,417

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 pertain to the costs associated with the Company’s anticipated divestiture, see Note 12, Anticipated Divestiture, and the other costs in 2015 are acquisition related costs.

4. Inventories

At September 30, 2016, and December 31, 2015, inventories included finished and in-process products totaling $277.1 million and $291.9 million, respectively, and raw materials and supplies of $129.8 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 September 30,						Nine Months Ended September 30,
(In thousands)	2016			2015			2016			2015
Service cost	$	502		$	654		$	1,508		$	1,977
Interest cost		414			467			1,259			1,412
Expected return on plan assets		(286	)		(321	)		(883	)		(967	)
Amortization of actuarial loss		54			72			162			219
Settlement expense		-			506			-			506
Total defined benefit expense	$	684		$	1,378		$	2,046		$	3,147

7

6. Shareholders’ Equity

The Company repurchased 89,251 and 400,477 shares of its common stock for an aggregate cost of $6.7 million and $25.2 million, respectively, during the three and nine months ended September 30, 2016, and 0.6 million and 2.5 million shares of its common stock for an aggregate cost of $38.2 million and $165.4 million, respectively, during the three and nine months ended September 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 nine-month period.

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 $16.4 million and $35.2 million of forward exchange contracts, designated as hedges, outstanding as of September 30, 2016, and December 31, 2015, respectively. For the three months ended September 30, 2016 and 2015, losses of $0.2 million and $0.5 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. For the nine months ended September 30, 2016 and 2015, losses of $0.9 million and $0.8 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 September 30, 2016, and December 31, 2015, the total value of the Company’s Euro and Swiss Franc debt was $208.5 million and $162.5 million, respectively.  For the three and nine months ended September 30, 2016, the impact of foreign exchange rates on these debt instruments increased debt by $2.2 million and  $5.8 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 September 30, 2016 and 2015, were 23.5% and 29.0%, respectively. For the nine-month periods ended September 30, 2016 and 2015, the effective income tax rates for continuing operations were 28.6% and 28.2%, 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, adjustments to valuation allowances 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.

8

9. Accumulated Other Comprehensive Income

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

(In thousands)	Cash Flow Hedges (a)			Pension Items (a)			Foreign Currency Items			Total
Balance as of June 30, 2016	$	(30	)	$	(4,320	)	$	(171,075	)	$	(175,425	)
Other comprehensive income before reclassifications		(322	)		-			(2,691	)		(3,013	)
Amounts reclassified from OCI		142			36			-			178
Balance as of September 30, 2016	$	(210	)	$	(4,284	)	$	(173,766	)	$	(178,260	)

(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		(1,065	)		-			(4,676	)		(5,741	)
Amounts reclassified from OCI		691			109			(3,257	)		(2,457	)
Balance as of September 30, 2016	$	(210	)	$	(4,284	)	$	(173,766	)	$	(178,260	)

(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.

9

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 $0.2 million and $2.6 million, during the three months ended September 30, 2016 and 2015, respectively, and $0.9 million and $10.1 million during the nine months ended September 30, 2016 and 2015, respectively. Since initiating the Plan, the Company has recorded $85.6 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 September 30, 2016, 256 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 $15 million.

As of September 30, 2016, the Company has recorded assets held for sale of land, buildings and equipment of $9.7 million related to the 2014 Restructuring Plan.  In addition, $20 million of inventory, receivables and other assets are included in assets held for sale related to the anticipated sale of the European Natural Ingredients business. The Company also has $4.6 million of liabilities held for sale related to the anticipated sale of the European Natural Ingredients business.

The Company recorded total restructuring costs of $2.8 million for the three months ended September 30, 2016, and $10.9 million for the three months ended September 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 $5.9 million and $27.7 million for the nine months ended September 30, 2016 and 2015, respectively. Since initiating the 2014 Restructuring Plan, the Company has incurred $147.3 million of restructuring costs through September 30, 2016. The Company expects to incur approximately $4 million of additional restructuring costs by the end of 2016 and approximately $16 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. Since initiating the Plan, the Company has realized total savings of approximately $22 million as of September 30, 2016. During the three months ended September 30, 2016, the Company realized approximately $3 million of savings and expects to realize approximately $1 million of additional savings by the end of 2016. The remaining savings are expected to be realized in 2017. The Company intends to continue to optimize production at the consolidating sites after the completion of the restructuring activities.

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 three months ended June 30, 2016, 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.

10

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 nine months ended September 30, 2016 and 2015, respectively:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2016			2015			2016			2015
Flavors & Fragrances	$	2,763		$	10,035		$	8,630		$	23,055
Color		(67	)		245			65			1,828
Asia Pacific		-			-			-			58
Corporate & Other		85			672			703			2,748
Total Continuing Operations		2,781			10,952			9,398			27,689
Discontinued Operations		-			(71	)		(3,485	)		43
Total Restructuring	$	2,781		$	10,881		$	5,913		$	27,732

The Company recorded restructuring costs in continuing operations for the three and nine months ended September 30, 2016, as follows:

Three Months Ended September 30, 2016

(In thousands)	Selling & Administrative			Cost of Products Sold		Total
Employee separation	$	288		$	-	$	288
Long-lived asset impairment (gain)		(231	)		-		(231	)
Write-down of inventory		-			-		-
Other restructuring costs(1)		2,724			-		2,724
Total	$	2,781		$	-	$	2,781

Nine Months Ended September 30, 2016

(In thousands)	Selling & Administrative		Cost of Products Sold		Total
Employee separation	$	738	$	-	$	738
Long-lived asset impairment		502		-		502
Write-down of inventory		-		810		810
Other restructuring costs(1)		7,348		-		7,348
Total	$	8,588	$	810	$	9,398

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

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

Three Months Ended September 30, 2015

(In thousands)	Selling & Administrative		Cost of Products Sold		Total
Employee separation	$	745	$	-	$	745
Long-lived asset impairment		2,610		-		2,610
Write-down of inventory		-		2,814		2,814
Other restructuring costs(1)		4,783		-		4,783
Total	$	8,138	$	2,814	$	10,952

Nine Months Ended September 30, 2015

(In thousands)	Selling & Administrative			Cost of Products Sold		Total
Employee separation	$	4,449		$	-	$	4,449
Long-lived asset impairment		10,090			-		10,090
Gain on asset sales		(1,301	)		-		(1,301	)
Write-down of inventory		-			3,095		3,095
Other restructuring costs(1)		11,356			-		11,356
Total	$	24,594		$	3,095	$	27,689

⁽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 nine months ended September 30, 2016:

(In thousands)	Employee Separations			Other			Total
Balance as of December 31, 2015	$	10,260		$	912		$	11,172
Expense activity		738			7,348			8,086
Cash spent		(3,216	)		(7,620	)		(10,836	)
Translation adjustment		209			-			209
Balance as of September 30, 2016	$	7,991		$	640		$	8,631

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 three months ended June 30, 2016, 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.

12

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

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2016		2015			2016			2015
Revenue	$	-	$	-		$	-		$	187
Gain (Loss) from discontinued operations before income taxes		-		(11	)		3,410			(439	)
Income tax (expense) benefit		-		(36	)		(67	)		91
Gain (Loss) from discontinued operations, net of tax	$	-	$	(47	)	$	3,343		$	(348	)

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 $19.1 million and $1.6 million of liabilities held for sale related to the anticipated sale as of September 30, 2016. In addition, the Company recorded an impairment charge of $10.3 million during the second quarter of 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 $7 million. During the three months ended September 30, 2016, the Company incurred $0.2 million of outside professional fees related to the anticipated divestiture.

13. Subsequent Events

On October 3, 2016, the Company entered into an accounts receivable securitization program with a commitment size of $40 million, whereby transactions under the program are accounted for as sales of trade receivables in accordance with Accounting Standards Codification Topic 860, Transfers and Servicing. Trade receivables were sold to the third-party financial institution, Wells Fargo, for which $40 million in proceeds was received.

14. 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.

On September 20, 2016, the Company and the EEOC engaged in a mediation session in which the parties worked to settle this matter.  The parties are still negotiating and attempting to finalize the terms of a settlement agreement, but the Company accrued $0.6 million for the settlement of this matter, during the three months ended September 30, 2016.

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.

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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 $349.7 million and $344.5 million for the three months ended September 30, 2016 and 2015, respectively, an increase of 1.5%. Revenue was $1.1 billion and $1.0 billion for the nine months ended September 30, 2016 and 2015, respectively, an increase of 1.6%. The impact of foreign exchange rates decreased consolidated revenue by approximately 1.0% and 2.1% for the three and nine months ended September 30, 2016, respectively.

Gross Profit

The Company’s gross margin was 35.1% and 32.7% for the three months ended September 30, 2016 and 2015, respectively. Included in the cost of sales are $2.8 million of restructuring costs for the three months ended September 30, 2015. The increase in gross margin for the three months ended September 30, 2016, is primarily a result of higher selling prices, higher volumes, mainly in the Color segment, and savings associated with the 2014 Restructuring Plan ($2.5 million). Restructuring costs did not have an impact on gross margin for the three months ended September 30, 2016, and restructuring costs reduced gross margin by 80 basis points for the three months ended September 30, 2015.

Gross margin was 34.5% and 33.6% for the nine months ended September 30, 2016 and 2015, respectively, an increase of 90 basis points. Included in the cost of sales are $0.8 million and $3.1 million of restructuring costs for the nine months ended September 30, 2016 and 2015, respectively. The increase in gross margin for the nine months ended September 30, 2016, is primarily a result of higher selling prices and higher volumes, mainly in the Color segment, and savings associated with the 2014 Restructuring Plan ($8.1 million). Restructuring costs did not have a significant impact on gross margin for the nine months ended September 30, 2016, and restructuring costs reduced gross margin by 30 basis points for the nine months ended September 30, 2015.

Selling and Administrative Expense

Selling and administrative expenses as a percent of revenue were 20.4% and 20.2% for the three months ended September 30, 2016 and 2015, respectively. Restructuring and other costs (see the discussions below regarding Restructuring, Anticipated Divestiture and Non-GAAP Financial Measures) of $3.0 million and $8.2 million were included in selling and administrative expenses for the three months ended September 30, 2016 and 2015, respectively. For the three months ended September 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 $3.9 million and outside professional fees of $1.8 million. Restructuring and other costs increased selling and administrative expense as a percent of revenue by 80 basis points and 240 basis points for the three months ended September 30, 2016 and 2015, respectively.

Selling and administrative expense as a percent of revenue were 20.9% and 20.6% for the nine months ended September 30, 2016 and 2015, respectively. Restructuring and other costs of $19.1 million and $25.5 million were included in selling and administrative expenses for the nine months ended September 30, 2016 and 2015, respectively. For the nine months ended September 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 $7.1 million and outside professional fees of $5.6 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 180 basis points and 250 basis points for the nine months ended September 30, 2016 and 2015, respectively.

Operating Income

Operating income was $51.2 million and $43.2 million for the three months ended September 30, 2016 and 2015, respectively. Operating margins were 14.6% and 12.5% for the three months ended September 30, 2016 and 2015, respectively. Restructuring and other costs reduced operating margins by 90 basis points and 320 basis points during the three months ended September 30, 2016 and 2015, respectively.

14

Operating income was $142.3 million and $134.7 million for the nine months ended September 30, 2016 and 2015, respectively. Operating margins were 13.5% and 13.0% for the nine months ended September 30, 2016 and 2015, respectively. Restructuring and other costs reduced operating margins by 190 basis points and 280 basis points during the nine months ended September 30, 2016 and 2015, respectively.

Interest Expense

Interest expense was $4.6 million and $4.3 million for the three months ended September 30, 2016 and 2015, respectively, and $14.0 million and $12.3 million for the nine months ended September 30, 2016 and 2015, respectively. The increase in the expense in both the three- and nine-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 three months ended September 30, 2016 and 2015, were 23.5% and 29.0%, respectively. For the nine-month periods ended September 30, 2016 and 2015, the effective income tax rates were 28.6% and 28.2%, 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, adjustments to valuation allowances 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 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 $0.2 million and $2.6 million, during the three months ended September 30, 2016 and 2015, respectively, and $0.9 million and $10.1 million during the nine months ended September 30, 2016 and 2015, respectively. Since initiating the Plan, the Company has recorded $85.6 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 September 30, 2016, 256 positions had been eliminated as a result of this Plan.

15

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 $15 million.

As of September 30, 2016, the Company has recorded assets held for sale of land, buildings and equipment of $9.7 million related to the 2014 Restructuring Plan.  In addition, $20 million of inventory, receivables and other assets are included in assets held for sale related to the anticipated sale of the European Natural Ingredients business. The Company also has $4.6 million of liabilities held for sale related to the anticipated sale of the European Natural Ingredients business.

The Company recorded total restructuring costs of $2.8 million for the three months ended September 30, 2016, and $10.9 million for the three months ended September 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 $5.9 million and $27.7 million for the nine months ended September 30, 2016 and 2015, respectively. Since initiating the 2014 Restructuring Plan, the Company has incurred $147.3 million of restructuring costs through September 30, 2016. The Company expects to incur approximately $4 million of additional restructuring costs by the end of 2016 and approximately $16 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. Since initiating the Plan, the Company has realized total savings of approximately $22 million as of September 30, 2016. During the three months ended September 30, 2016, the Company realized approximately $3 million of savings and expects to realize approximately $1 million of additional savings by the end of 2016. The remaining savings are expected to be realized in 2017. The Company intends to continue to optimize production at the consolidating sites after the completion of the restructuring activities.

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 three months ended June 30, 2016, 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.

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 $19.1 million and $1.6 million of liabilities held for sale related to the anticipated sale as of September 30, 2016. In addition, the Company recorded an impairment charge of $10.3 million during the second quarter of 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 $7 million. During the three months ended September 30, 2016, the Company incurred $0.2 million of outside professional fees related to the anticipated divestiture.

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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 anticipated divestiture related costs discussed under “Anticipated Divestiture” above, and the other costs in 2015 are acquisition related costs.

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 September 30,									Nine Months Ended September 30,
	2016			2015			% Change			2016			2015			% Change
Operating income from continuing operations (GAAP)	$	51,151		$	43,220			18.4	%	$	142,335		$	134,733			5.6	%
Restructuring - Cost of products sold		-			2,814						810			3,095
Restructuring - Selling and administrative		2,781			8,138						8,588			24,594
Other  - Selling and administrative		191			18						10,483			873
Adjusted operating income	$	54,123		$	54,190			-0.1	%	$	162,216		$	163,295			-0.7	%
Net earnings from continuing operations (GAAP)	$	35,619		$	27,638			28.9	%	$	91,563		$	87,915			4.1	%
Restructuring and other, before tax		2,972			10,970						19,881			28,562
Tax impact of restructuring and other		(1,399	)		(3,396	)					(2,999	)		(7,759	)
Adjusted net earnings	$	37,192		$	35,212			5.6	%	$	108,445		$	108,718			-0.3	%
Diluted EPS from continuing operations (GAAP)	$	0.79		$	0.61			29.5	%	$	2.04		$	1.89			7.9	%
Restructuring and other, net of tax		0.04			0.17						0.38			0.45
Adjusted diluted EPS	$	0.83		$	0.77			7.8	%	$	2.42		$	2.34			3.4	%

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

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	Three Months Ended September 30, 2016									Nine Months Ended September 30, 2016
Revenue	Total			Foreign Exchange Rates			Local Currency			Total			Foreign Exchange Rates			Local Currency
Flavors & Fragrances		(3.2	%)		(1.5	%)		(1.8	%)		(1.6	%)		(1.7	%)		0.1	%
Color		5.9	%		(1.5	%)		7.4	%		5.7	%		(2.9	%)		8.6	%
Asia Pacific		17.9	%		2.6	%		15.2	%		9.3	%		(2.2	%)		11.5	%
Total Revenue		1.5	%		(1.0	%)		2.5	%		1.6	%		(2.1	%)		3.7	%
Operating Income from Continuing Operations
Flavors & Fragrances		2.9	%		(1.4	%)		4.3	%		0.8	%		(1.6	%)		2.3	%
Color		13.4	%		(1.2	%)		14.6	%		9.6	%		(2.1	%)		11.7	%
Asia Pacific		15.4	%		2.1	%		13.3	%		7.2	%		(2.8	%)		10.0	%
Corporate & Other		(17.8	%)		(0.8	%)		(17.0	%)		3.0	%		(1.5	%)		4.5	%
Operating Income from Continuing Operations		18.4	%		(1.0	%)		19.4	%		5.6	%		(2.0	%)		7.7	%
Diluted EPS from Continuing Operations		29.5	%		(1.6	%)		31.1	%		7.9	%		(2.1	%)		10.1	%
Adjusted Operating Income (1)		(0.1	%)		(1.1	%)		0.9	%		(0.7	%)		(2.2	%)		1.5	%
Adjusted Diluted EPS (1)		7.8	%		(1.3	%)		9.1	%		3.4	%		(2.6	%)		6.0	%

(1) Refer to table above for a reconciliation of these non-GAAP measures.

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 $200.7 million and $207.4 million for the three months ended September 30, 2016 and 2015, respectively, a decrease of 3.2%. Foreign exchange rates reduced segment revenue by 1.5%. The decrease in segment revenue was primarily due to lower revenue in Europe ($4.4 million) and lower revenue in North America ($2.7 million) partially offset by higher revenue in Latin America ($0.4 million). The lower revenue in Europe was primarily due to lower volumes ($2.4 million) and the impact of unfavorable exchange rates ($2.0 million). The lower revenue in North America was primarily due to lower volumes ($8.2 million) partially offset by higher selling prices ($5.4 million). The higher revenue in Latin America was primarily due to higher volumes ($0.9 million) and higher selling prices ($0.6 million) partially offset by the impact of unfavorable exchange rates ($1.1 million).

Flavors & Fragrances segment operating income was $32.3 million and $31.4 million for the three months ended September 30, 2016 and 2015, respectively, an increase of 2.9%. Foreign exchange rates reduced segment operating income by 1.4%. The higher segment operating income was due to higher operating income in North America ($1.4 million) partially offset by lower operating income in Latin America ($0.4). Operating income in Europe was consistent with the same period of 2015. The higher operating income in North America was primarily due to higher selling prices ($5.4 million), and savings associated with the 2014 Restructuring Plan ($1.5 million) partially offset by unfavorable volume and mix ($3.7 million) and higher raw material costs ($1.5 million). The lower operating income in Latin America was primarily due to higher raw material costs ($0.9 million) and higher manufacturing and other costs ($0.8 million) and the impact of unfavorable exchange rates ($0.3 million) partially offset by higher volume and mix ($0.9 million) and favorable selling prices ($0.6 million). Segment operating income as a percent of revenue was 16.1% in the current quarter and 15.1% in the prior year’s comparable quarter.

18

Flavors & Fragrances segment revenue was $608.3 million and $618.0 million for the nine months ended September 30, 2016 and 2015, respectively, a decrease of 1.6%. Foreign exchange rates reduced segment revenue by 1.7%. The decrease in segment revenue was primarily due to lower revenue in North America ($6.7 million) and lower revenue in Europe ($3.4 million) partially offset by higher revenue in Latin America ($0.4 million). The lower revenue in North America was primarily a result of lower volumes ($19.0 million), and the impact of unfavorable exchange rates ($2.2 million) partially offset by higher selling prices ($14.6 million). The lower revenue in Europe was primarily a result of the impact of unfavorable exchange rates ($4.1 million) and lower volumes ($1.4 million) partially offset by higher selling prices ($2.0 million). The higher revenue in Latin America was primarily a result of higher volumes ($2.4 million) and higher selling prices ($2.0 million) partially offset by the impact of unfavorable exchange rates ($4.0 million).

Flavors & Fragrances segment operating income was $95.1 million and $94.4 million for the nine months ended September 30, 2016 and 2015, respectively, an increase of 0.8%. Foreign exchange rates reduced segment operating income by 1.6%. The higher segment operating income was due to higher operating income in North America ($2.1 million) partially offset by lower operating income in Europe ($0.9 million) and Latin America ($0.5 million). The higher operating income in North America was primarily due to higher selling prices ($14.6 million), savings associated with the 2014 Restructuring Program ($5.1 million), lower manufacturing and other costs ($2.8 million) and profit on the sale of an import right ($2.2 million) partially offset by volume and mix ($11.3 million) and higher raw material costs ($11.1 million). The lower operating income in Europe was primarily a result of higher manufacturing and other costs ($7.5 million) partially offset by savings associated with the 2014 Restructuring Plan ($3.2 million), higher selling prices ($2.0 million), volumes and product mix ($0.9 million) and lower raw material costs ($0.6 million). The lower operating income in Latin America was primarily a result of higher raw material costs ($1.9 million), higher manufacturing and other costs ($1.8 million) and the impact of unfavorable exchange rates ($0.9 million) partially offset by volume and mix ($2.1 million) and higher selling prices ($2.0 million). Segment operating income as a percent of revenue was 15.6% in the current period and 15.3% in the prior year’s comparable period.

Color

Segment revenue for the Color segment was $125.4 million and $118.5 million for the three months ended September 30, 2016 and 2015, respectively, an increase of 5.9%. Foreign exchange rates reduced segment revenue by 1.5%. The higher segment revenue was due to higher sales of non-food colors ($4.7 million) and food and beverage colors ($2.3 million). The higher sales of non-food colors were primarily due to higher volumes ($5.3 million), primarily in cosmetic colors and specialty inks, partially offset by the impact of unfavorable exchange rates ($0.4 million). The higher sales of food and beverage colors was primarily a result of higher volumes ($2.6 million) and higher selling prices ($1.0 million) partially offset by the impact of unfavorable exchange rates ($1.3 million).

Segment operating income for the Color segment was $26.3 million and $23.2 million for the three months ended September 30, 2016 and 2015, respectively, an increase of 13.4%. Foreign exchange rates reduced segment operating income by 1.2%. The higher segment operating income was primarily due to higher profit for food and beverage colors ($1.8 million) and non-food colors ($1.3 million). The higher operating income in food and beverage colors is primarily a result of higher selling prices ($1.0 million), lower raw material costs ($0.8 million) and volume and product mix ($0.7 million) partially offset by higher manufacturing and other costs ($0.5 million). The higher operating income for non-food colors is primarily due to volumes and product mix ($2.3 million) partially offset by higher manufacturing and other costs ($0.7 million). Segment operating income as a percent of revenue was 21.0% in the current quarter and 19.6% in the prior year’s comparable quarter.

Segment revenue for the Color segment was $383.1 million and $362.5 million for the nine months ended September 30, 2016 and 2015, respectively, an increase of 5.7%. Foreign exchange rates reduced segment revenue by 2.9%. The higher segment revenue was due to higher sales of non-food colors ($18.0 million) and food and beverage colors ($2.6 million). The higher sales of non-food colors were primarily due to higher volumes ($20.4 million), primarily in cosmetic colors and specialty inks, and higher selling prices ($0.7 million) offset by the impact of unfavorable exchange rates ($3.1 million). The higher sales of food and beverage colors was primarily a result of higher volumes ($4.1 million) and higher selling prices ($6.0 million) offset by the impact of unfavorable exchange rates ($7.5 million).

Segment operating income for the Color segment was $82.1 million and $75.0 million for the nine months ended September 30, 2016 and 2015, respectively, an increase of 9.6%. Foreign exchange rates reduced segment operating income by 2.1%. The higher segment operating income was primarily due to higher profit for non-food colors ($5.1 million) and food and beverage colors ($2.1 million). The higher operating income for non-food colors was primarily due to volume and product mix ($9.5 million) and higher selling prices ($0.7 million) partially offset by higher manufacturing and other costs ($4.1 million), higher raw material costs ($0.5 million) and the impact of unfavorable exchange rates ($0.5 million). The higher operating income for food and beverage colors was primarily due to higher selling prices ($6.0 million) and volumes and product mix ($1.2 million) partially offset by higher raw material costs ($2.4 million), higher manufacturing and other costs ($1.6 million) and the impact of unfavorable exchange rates ($1.1 million). Segment operating income as a percent of revenue was 21.4% in the current period and 20.7% in the prior year’s comparable period.

19

Asia Pacific

Segment revenue for the Asia Pacific segment was $33.4 million and $28.4 million for the three months ended September 30, 2016 and 2015, respectively, an increase of 17.9%. Foreign exchange rates increased segment revenue by 2.6%. The higher revenue was due to higher volumes ($3.4 million), selling prices ($1.0 million) and the impact of favorable foreign exchange rates ($0.7 million).

Segment operating income for the Asia Pacific segment was $6.6 million and $5.7 million for the three months ended September 30, 2016 and 2015, respectively, an increase of 15.4%.  Foreign exchange rates increased segment operating income by 2.1%. The increase in segment operating income was primarily a result of volumes and product mix ($2.4 million) and higher selling prices ($1.0 million) partially offset by higher manufacturing and other costs ($2.5 million) and higher raw material costs ($0.2 million). Segment operating income as a percent of revenue was 19.7% in the current quarter and 20.1% in the prior year’s comparable quarter.

Segment revenue for the Asia Pacific segment was $95.0 million and $86.9 million for the nine months ended September 30, 2016 and 2015, respectively, an increase of 9.3%. Foreign exchange rates decreased segment revenue by 2.2%. The higher revenue was due to higher volumes ($7.4 million) and higher selling prices ($2.6 million) partially offset by the impact of unfavorable foreign exchange rates ($1.9 million).

Segment operating income for the Asia Pacific segment was $18.7 million and $17.5 million for the nine months ended September 30, 2016 and 2015, respectively.  Foreign exchange rates reduced segment operating income by 2.8%. The higher segment operating income was primarily a result of volumes and product mix ($5.1 million) and higher selling prices ($2.6 million) offset by higher manufacturing and other costs ($5.5 million), higher raw material costs ($0.4 million) and the impact of unfavorable foreign exchange rates ($0.5 million).  Segment operating income as a percent of revenue was 19.7% and 20.1% for the nine months ended September 30, 2016 and 2015, respectively.

Corporate & Other

The Corporate & Other operating loss was $14.0 million and $17.0 million for the three months ended September 30, 2016 and 2015, respectively, a decrease of 17.8%. The lower operating loss was primarily a result of lower restructuring and other costs ($8.0 million) offset by higher performance based compensation ($3.9 million) and higher professional services ($1.6 million). Restructuring and other costs were $3.0 million and $11.0 million for the three months ended September 30, 2016 and 2015, respectively.

The Corporate & Other operating loss was $53.6 million and $52.0 million for the nine months ended September 30, 2016 and 2015, respectively, an increase of 3.0%. The higher operating loss was primarily a result of higher performance based compensation ($7.1 million) and higher professional services ($3.9 million) partially offset by lower restructuring and other costs ($8.7 million). Restructuring and other costs were $19.9 million and $28.6 million for the nine months ended September 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 September 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 $150.6 million and $93.5 million for the nine months ended September 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.

20

Cash Flows from Investing Activities

Net cash used in investing activities was $54.5 million and $51.2 million for the nine months ended September 30 2016 and 2015, respectively. Capital expenditures were $58.0 million and $55.5 million for the nine months ended September 30 2016 and 2015, respectively. During the second quarter of 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 second quarter of 2015, the Company completed the acquisition of Xennia for $8.4 million.

Cash Flows from Financing Activities

Net cash used in financing activities was $86.0 million and $29.3 million for the nine months ended September 30 2016 and 2015, respectively. The Company repurchased $27.7 million and $161.0 million of Company stock for the nine months ended September 30, 2016 and 2015, respectively. Net debt decreased in the first nine months of 2016 by $22.3 million and increased by $167.0 million in 2015. The increase in net debt in 2015 was 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 $36.4 million and $35.9 million were paid during the nine months ended September 30, 2016 and 2015, respectively. Dividends paid were 81 cents per share and 77 cents per share in the first nine months of 2016 and 2015, respectively. Subsequent to September 30, 2016, the Company announced that its quarterly dividend would increase to 30 cents per share, starting with its dividend payable on December 1, 2016.

CONTRACTUAL OBLIGATIONS

There have been no material changes in the Company’s contractual obligations during the quarter ended September 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 September 30, 2016. As discussed in Note 13, Subsequent Events, above, on October 3, 2016, the Company entered into an accounts receivable securitization program with a commitment size of $40 million, whereby transactions under the program are accounted for as sales of trade receivables and removed from the Company’s consolidated balance sheet.

CRITICAL ACCOUNTING POLICIES

There have been no material changes in the Company’s critical accounting policies during the quarter ended September 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.

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 September 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: There has been no 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 has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

21

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 September 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.

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.

On September 20, 2016, the Company and the EEOC engaged in a mediation session in which the parties worked to settle this matter.  The parties are still negotiating and attempting to finalize the terms of a settlement agreement, but the Company accrued $0.6 million for the settlement of this matter, during the three months ended September 30, 2016.

22

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.

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 third 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
July 1 to July 31, 2016		-	$	-		-		1,816,232
August 1 to August 31, 2016		-		-		-		1,816,232
September 1 to September 30, 2016		89,251		74.77		89,251		1,726,981
Total		89,251	$	74.77		89,251

(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:	November 7, 2016	By:	/s/  John J. Manning
			John J. Manning, Vice President,
			General Counsel & Secretary
Date:	November 7, 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 SEPTEMBER 30, 2016

Exhibit	Description	Incorporated by Reference From	Filed Herewith
10.1	Receivables Sale Agreement, dated as of October 3, 2016, among Sensient Natural Ingredients LLC, Sensient Colors LLC and Sensient Receivables LLC	Exhibit 10.1 to current report on Form 8-K dated October 3, 2016 (Commission File No. 1-7626)
10.2	Receivables Purchase Agreement, dated as of October 3, 2016, among Sensient Receivables LLC, Sensient Technologies Corporation and Wells Fargo Bank, National Association	Exhibit 10.1 to current report on Form 8-K dated October 3, 2016 (Commission File No. 1-7626)
10.3	Performance Undertaking, made as of October 3, 2016, by Sensient Technologies Corporation in favor of Sensient Receivables LLC	Exhibit 10.1 to current report on Form 8-K dated October 3, 2016 (Commission File No. 1-7626)
31	Certifications of the Company’s Chairman, President & Chief Executive Officer and Senior Vice President & Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act		X
32	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

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:     November 7, 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:     November 7, 2016

 /s/ Stephen J. Rolfs

Stephen J. Rolfs, Senior Vice President &

Chief Financial Officer

EX-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 September 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:	November 7, 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 September 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:	November 7, 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.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 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		44,542,816
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016

XML

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract]
Revenue	$ 349,662	$ 344,533	$ 1,052,966	$ 1,036,768
Cost of products sold	227,099	231,761	690,126	688,408
Selling and administrative expenses	71,412	69,552	220,505	213,627
Operating income	51,151	43,220	142,335	134,733
Interest expense	4,584	4,295	14,021	12,316
Earnings before income taxes	46,567	38,925	128,314	122,417
Income taxes	10,948	11,287	36,751	34,502
Earnings from continuing operations	35,619	27,638	91,563	87,915
Gain (Loss) from discontinued operations, net of tax	0	(47)	3,343	(348)
Net earnings	$ 35,619	$ 27,591	$ 94,906	$ 87,567
Weighted average number of shares outstanding:
Basic (in shares)	44,532	45,392	44,604	46,239
Diluted (in shares)	44,816	45,675	44,873	46,543
Basic:
Continuing operations (in dollars per share)	$ 0.80	$ 0.61	$ 2.05	$ 1.90
Discontinued operations (in dollars per share)	0	0	0.07	(0.01)
Earnings per common share (in dollars per share)	0.80	0.61	2.13	1.89
Diluted:
Continuing operations (in dollars per share)	0.79	0.61	2.04	1.89
Discontinued operations (in dollars per share)	0	0	0.07	(0.01)
Earnings per common share (in dollars per share)	0.79	0.60	2.11	1.88
Dividends declared per common share (in dollars per share)	$ 0.27	$ 0.27	$ 0.81	$ 0.77

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CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Comprehensive Income	$ 32,784	$ 7,077	$ 86,708	$ 24,922

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CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 23,505	$ 11,997
Trade accounts receivable, net	244,157	232,047
Inventories	406,957	409,159
Prepaid expenses and other current assets	37,792	44,673
Assets held for sale	48,796	31,029
TOTAL CURRENT ASSETS	761,207	728,905
OTHER ASSETS	72,416	71,117
DEFERRED TAX ASSETS	17,323	25,177
INTANGIBLE ASSETS, NET	8,480	9,209
GOODWILL	397,764	399,646
PROPERTY, PLANT AND EQUIPMENT:
Land	35,118	33,975
Buildings	271,566	274,318
Machinery and equipment	651,446	664,917
Construction in progress	85,251	62,515
Property, Plant and Equipment, Gross, Total	1,043,381	1,035,725
Less accumulated depreciation	(564,952)	(566,047)
Property, Plant and Equipment, Net, Total	478,429	469,678
TOTAL ASSETS	1,735,619	1,703,732
CURRENT LIABILITIES:
Trade accounts payable	99,468	95,442
Accrued salaries, wages and withholdings from employees	25,766	23,530
Other accrued expenses	68,756	61,701
Income taxes	2,848	7,504
Short-term borrowings	21,417	20,655
Liabilities held for sale	6,192	4,090
TOTAL CURRENT LIABILITIES	224,447	212,922
DEFERRED INCOME TAXES	7,225	5,640
OTHER LIABILITIES	7,792	7,534
ACCRUED EMPLOYEE AND RETIREE BENEFITS	20,919	19,007
LONG-TERM DEBT	596,840	613,502
SHAREHOLDERS' EQUITY:
Common stock	5,396	5,396
Additional paid-in capital	114,642	109,974
Earnings reinvested in the business	1,360,851	1,302,302
Treasury stock, at cost	(424,233)	(402,483)
Accumulated other comprehensive loss	(178,260)	(170,062)
TOTAL SHAREHOLDERS' EQUITY	878,396	845,127
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,735,619	$ 1,703,732

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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net earnings	$ 94,906	$ 87,567
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization	35,176	36,374
Share-based compensation	6,743	14
Loss on assets	7,893	8,725
Deferred income taxes	8,454	4,466
Liquidation of foreign entity	(3,257)	0
Changes in operating assets and liabilities	679	(43,672)
Net cash provided by operating activities	150,594	93,474
Cash flows from investing activities:
Acquisition of property, plant and equipment	(58,004)	(55,508)
Proceeds from sale of assets	3,597	12,826
Acquisition of new business	0	(8,393)
Other investing activity	(82)	(168)
Net cash used in investing activities	(54,489)	(51,243)
Cash flows from financing activities:
Proceeds from additional borrowings	163,370	198,857
Debt payments	(185,697)	(31,850)
Purchase of treasury stock	(27,728)	(160,990)
Dividends paid	(36,357)	(35,901)
Proceeds from options exercised and other equity transactions	409	554
Net cash used in financing activities	(86,003)	(29,330)
Effect of exchange rate changes on cash and cash equivalents	1,406	(9,050)
Net increase in cash and cash equivalents	11,508	3,851
Cash and cash equivalents at beginning of period	11,997	20,329
Cash and cash equivalents at end of period	$ 23,505	$ 24,180

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Accounting Policies

9 Months Ended

Sep. 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) that are necessary to present fairly the financial position of the Company as of September 30, 2016; the results of operations and comprehensive income for the three and nine months ended September 30, 2016 and 2015; and cash flows for the nine months ended September 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 does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

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.

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Fair Value

9 Months Ended

Sep. 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 September 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 $0.2 million as of September 30, 2016, and December 31, 2015. The fair value of the investments based on September 30, 2016, and December 31, 2015, market quotes (Level 1 inputs) was an asset of $4.2 million and $1.5 million, respectively, 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 September 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 September 30, 2016, was $596.8 million. The fair value of the long-term debt at September 30, 2016, was $619.4 million.

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Segment Information

9 Months Ended

Sep. 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 September 30, 2016:
Revenue from external customers	$	194,845	$	121,424	$	33,393	$	-		$	349,662
Intersegment revenue		5,818		4,021		51		-			9,890
Total revenue	$	200,663	$	125,445	$	33,444	$	-		$	359,552
Operating income (loss)	$	32,280	$	26,295	$	6,584	$	(14,008	)	$	51,151
Interest expense		-		-		-		4,584			4,584
Earnings (loss) before income taxes	$	32,280	$	26,295	$	6,584	$	(18,592	)	$	46,567
Three months ended September 30, 2015:
Revenue from external customers	$	201,049	$	115,146	$	28,338	$	-		$	344,533
Intersegment revenue		6,324		3,322		35		-			9,681
Total revenue	$	207,373	$	118,468	$	28,373	$	-		$	354,214
Operating income (loss)	$	31,369	$	23,181	$	5,703	$	(17,033	)	$	43,220
Interest expense		-		-		-		4,295			4,295
Earnings (loss) before income taxes	$	31,369	$	23,181	$	5,703	$	(21,328	)	$	38,925

(In thousands)	Flavors & Fragrances		Color		Asia Pacific		Corporate & Other			Consolidated
Nine months ended September 30, 2016:
Revenue from external customers	$	586,955	$	371,166	$	94,845	$	-		$	1,052,966
Intersegment revenue		21,374		11,909		129		-			33,412
Total revenue	$	608,329	$	383,075	$	94,974	$	-		$	1,086,378
Operating income (loss)	$	95,097	$	82,143	$	18,701	$	(53,606	)	$	142,335
Interest expense		-		-		-		14,021			14,021
Earnings (loss) before income taxes	$	95,097	$	82,143	$	18,701	$	(67,627	)	$	128,314
Nine months ended September 30, 2015:
Revenue from external customers	$	598,226	$	351,737	$	86,805	$	-		$	1,036,768
Intersegment revenue		19,757		10,779		120		-			30,656
Total revenue	$	617,983	$	362,516	$	86,925	$	-		$	1,067,424
Operating income (loss)	$	94,354	$	74,972	$	17,448	$	(52,041	)	$	134,733
Interest expense		-		-		-		12,316			12,316
Earnings (loss) before income taxes	$	94,354	$	74,972	$	17,448	$	(64,357	)	$	122,417

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 pertain to the costs associated with the Company’s anticipated divestiture, see Note 12, Anticipated Divestiture, and the other costs in 2015 are acquisition related costs.

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Inventories

9 Months Ended

Sep. 30, 2016

Inventories [Abstract]

Inventories

4. Inventories

At September 30, 2016, and December 31, 2015, inventories included finished and in-process products totaling $277.1 million and $291.9 million, respectively, and raw materials and supplies of $129.8 million and $117.3 million, respectively.

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Retirement Plans

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
(In thousands)	2016			2015			2016			2015
Service cost	$	502		$	654		$	1,508		$	1,977
Interest cost		414			467			1,259			1,412
Expected return on plan assets		(286	)		(321	)		(883	)		(967	)
Amortization of actuarial loss		54			72			162			219
Settlement expense		-			506			-			506
Total defined benefit expense	$	684		$	1,378		$	2,046		$	3,147

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Shareholders' Equity

9 Months Ended

Sep. 30, 2016

Shareholders' Equity [Abstract]

Shareholders' Equity

6. Shareholders’ Equity

The Company repurchased 89,251 and 400,477 shares of its common stock for an aggregate cost of $6.7 million and $25.2 million, respectively, during the three and nine months ended September 30, 2016, and 0.6 million and 2.5 million shares of its common stock for an aggregate cost of $38.2 million and $165.4 million, respectively, during the three and nine months ended September 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 nine-month period.

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Derivative Instruments and Hedging Activity

9 Months Ended

Sep. 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 $16.4 million and $35.2 million of forward exchange contracts, designated as hedges, outstanding as of September 30, 2016, and December 31, 2015, respectively. For the three months ended September 30, 2016 and 2015, losses of $0.2 million and $0.5 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. For the nine months ended September 30, 2016 and 2015, losses of $0.9 million and $0.8 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 September 30, 2016, and December 31, 2015, the total value of the Company’s Euro and Swiss Franc debt was $208.5 million and $162.5 million, respectively.  For the three and nine months ended September 30, 2016, the impact of foreign exchange rates on these debt instruments increased debt by $2.2 million and  $5.8 million, respectively, which has been recorded as foreign currency translation in OCI.

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Income Taxes

9 Months Ended

Sep. 30, 2016

Income Taxes [Abstract]

Income Taxes

8. Income Taxes

The effective income tax rates for continuing operations for the quarters ended September 30, 2016 and 2015, were 23.5% and 29.0%, respectively. For the nine-month periods ended September 30, 2016 and 2015, the effective income tax rates for continuing operations were 28.6% and 28.2%, 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, adjustments to valuation allowances 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.

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 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 nine-month periods ended September 30, 2016:

(In thousands)	Cash Flow Hedges (a)			Pension Items (a)			Foreign Currency Items			Total
Balance as of June 30, 2016	$	(30	)	$	(4,320	)	$	(171,075	)	$	(175,425	)
Other comprehensive income before reclassifications		(322	)		-			(2,691	)		(3,013	)
Amounts reclassified from OCI		142			36			-			178
Balance as of September 30, 2016	$	(210	)	$	(4,284	)	$	(173,766	)	$	(178,260	)

(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		(1,065	)		-			(4,676	)		(5,741	)
Amounts reclassified from OCI		691			109			(3,257	)		(2,457	)
Balance as of September 30, 2016	$	(210	)	$	(4,284	)	$	(173,766	)	$	(178,260	)

(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.

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Restructuring

9 Months Ended

Sep. 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 $0.2 million and $2.6 million, during the three months ended September 30, 2016 and 2015, respectively, and $0.9 million and $10.1 million during the nine months ended September 30, 2016 and 2015, respectively. Since initiating the Plan, the Company has recorded $85.6 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 September 30, 2016, 256 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 $15 million.

As of September 30, 2016, the Company has recorded assets held for sale of land, buildings and equipment of $9.7 million related to the 2014 Restructuring Plan.  In addition, $20 million of inventory, receivables and other assets are included in assets held for sale related to the anticipated sale of the European Natural Ingredients business. The Company also has $4.6 million of liabilities held for sale related to the anticipated sale of the European Natural Ingredients business.

The Company recorded total restructuring costs of $2.8 million for the three months ended September 30, 2016, and $10.9 million for the three months ended September 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 $5.9 million and $27.7 million for the nine months ended September 30, 2016 and 2015, respectively. Since initiating the 2014 Restructuring Plan, the Company has incurred $147.3 million of restructuring costs through September 30, 2016. The Company expects to incur approximately $4 million of additional restructuring costs by the end of 2016 and approximately $16 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. Since initiating the Plan, the Company has realized total savings of approximately $22 million as of September 30, 2016. During the three months ended September 30, 2016, the Company realized approximately $3 million of savings and expects to realize approximately $1 million of additional savings by the end of 2016. The remaining savings are expected to be realized in 2017. The Company intends to continue to optimize production at the consolidating sites after the completion of the restructuring activities.

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 three months ended June 30, 2016, 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 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 nine months ended September 30, 2016 and 2015, respectively:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2016			2015			2016			2015
Flavors & Fragrances	$	2,763		$	10,035		$	8,630		$	23,055
Color		(67	)		245			65			1,828
Asia Pacific		-			-			-			58
Corporate & Other		85			672			703			2,748
Total Continuing Operations		2,781			10,952			9,398			27,689
Discontinued Operations		-			(71	)		(3,485	)		43
Total Restructuring	$	2,781		$	10,881		$	5,913		$	27,732

The Company recorded restructuring costs in continuing operations for the three and nine months ended September 30, 2016, as follows:

Three Months Ended September 30, 2016

(In thousands)	Selling & Administrative			Cost of Products Sold		Total
Employee separation	$	288		$	-	$	288
Long-lived asset impairment (gain)		(231	)		-		(231	)
Write-down of inventory		-			-		-
Other restructuring costs(1)		2,724			-		2,724
Total	$	2,781		$	-	$	2,781

Nine Months Ended September 30, 2016

(In thousands)	Selling & Administrative		Cost of Products Sold		Total
Employee separation	$	738	$	-	$	738
Long-lived asset impairment		502		-		502
Write-down of inventory		-		810		810
Other restructuring costs(1)		7,348		-		7,348
Total	$	8,588	$	810	$	9,398

⁽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 nine months ended September 30, 2015, as follows:

Three Months Ended September 30, 2015

(In thousands)	Selling & Administrative		Cost of Products Sold		Total
Employee separation	$	745	$	-	$	745
Long-lived asset impairment		2,610		-		2,610
Write-down of inventory		-		2,814		2,814
Other restructuring costs(1)		4,783		-		4,783
Total	$	8,138	$	2,814	$	10,952

Nine Months Ended September 30, 2015

(In thousands)	Selling & Administrative			Cost of Products Sold		Total
Employee separation	$	4,449		$	-	$	4,449
Long-lived asset impairment		10,090			-		10,090
Gain on asset sales		(1,301	)		-		(1,301	)
Write-down of inventory		-			3,095		3,095
Other restructuring costs(1)		11,356			-		11,356
Total	$	24,594		$	3,095	$	27,689

⁽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 nine months ended September 30, 2016:

(In thousands)	Employee Separations			Other			Total
Balance as of December 31, 2015	$	10,260		$	912		$	11,172
Expense activity		738			7,348			8,086
Cash spent		(3,216	)		(7,620	)		(10,836	)
Translation adjustment		209			-			209
Balance as of September 30, 2016	$	7,991		$	640		$	8,631

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Discontinued Operations

9 Months Ended

Sep. 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 three months ended June 30, 2016, 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 following table summarizes the discontinued operation’s results for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2016		2015			2016			2015
Revenue	$	-	$	-		$	-		$	187
Gain (Loss) from discontinued operations before income taxes		-		(11	)		3,410			(439	)
Income tax (expense) benefit		-		(36	)		(67	)		91
Gain (Loss) from discontinued operations, net of tax	$	-	$	(47	)	$	3,343		$	(348	)

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Anticipated Divestiture

9 Months Ended

Sep. 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 $19.1 million and $1.6 million of liabilities held for sale related to the anticipated sale as of September 30, 2016. In addition, the Company recorded an impairment charge of $10.3 million during the second quarter of 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 $7 million. During the three months ended September 30, 2016, the Company incurred $0.2 million of outside professional fees related to the anticipated divestiture.

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Subsequent Events

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

13. Subsequent Events

On October 3, 2016, the Company entered into an accounts receivable securitization program with a commitment size of $40 million, whereby transactions under the program are accounted for as sales of trade receivables in accordance with Accounting Standards Codification Topic 860, Transfers and Servicing. Trade receivables were sold to the third-party financial institution, Wells Fargo, for which $40 million in proceeds was received.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies [Abstract]

Commitments and Contingencies

14. 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.

On September 20, 2016, the Company and the EEOC engaged in a mediation session in which the parties worked to settle this matter.  The parties are still negotiating and attempting to finalize the terms of a settlement agreement, but the Company accrued $0.6 million for the settlement of this matter, during the three months ended September 30, 2016.

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.

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Segment Information (Tables)

9 Months Ended

Sep. 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 September 30, 2016:
Revenue from external customers	$	194,845	$	121,424	$	33,393	$	-		$	349,662
Intersegment revenue		5,818		4,021		51		-			9,890
Total revenue	$	200,663	$	125,445	$	33,444	$	-		$	359,552
Operating income (loss)	$	32,280	$	26,295	$	6,584	$	(14,008	)	$	51,151
Interest expense		-		-		-		4,584			4,584
Earnings (loss) before income taxes	$	32,280	$	26,295	$	6,584	$	(18,592	)	$	46,567
Three months ended September 30, 2015:
Revenue from external customers	$	201,049	$	115,146	$	28,338	$	-		$	344,533
Intersegment revenue		6,324		3,322		35		-			9,681
Total revenue	$	207,373	$	118,468	$	28,373	$	-		$	354,214
Operating income (loss)	$	31,369	$	23,181	$	5,703	$	(17,033	)	$	43,220
Interest expense		-		-		-		4,295			4,295
Earnings (loss) before income taxes	$	31,369	$	23,181	$	5,703	$	(21,328	)	$	38,925

(In thousands)	Flavors & Fragrances		Color		Asia Pacific		Corporate & Other			Consolidated
Nine months ended September 30, 2016:
Revenue from external customers	$	586,955	$	371,166	$	94,845	$	-		$	1,052,966
Intersegment revenue		21,374		11,909		129		-			33,412
Total revenue	$	608,329	$	383,075	$	94,974	$	-		$	1,086,378
Operating income (loss)	$	95,097	$	82,143	$	18,701	$	(53,606	)	$	142,335
Interest expense		-		-		-		14,021			14,021
Earnings (loss) before income taxes	$	95,097	$	82,143	$	18,701	$	(67,627	)	$	128,314
Nine months ended September 30, 2015:
Revenue from external customers	$	598,226	$	351,737	$	86,805	$	-		$	1,036,768
Intersegment revenue		19,757		10,779		120		-			30,656
Total revenue	$	617,983	$	362,516	$	86,925	$	-		$	1,067,424
Operating income (loss)	$	94,354	$	74,972	$	17,448	$	(52,041	)	$	134,733
Interest expense		-		-		-		12,316			12,316
Earnings (loss) before income taxes	$	94,354	$	74,972	$	17,448	$	(64,357	)	$	122,417

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Retirement Plans (Tables)

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
(In thousands)	2016			2015			2016			2015
Service cost	$	502		$	654		$	1,508		$	1,977
Interest cost		414			467			1,259			1,412
Expected return on plan assets		(286	)		(321	)		(883	)		(967	)
Amortization of actuarial loss		54			72			162			219
Settlement expense		-			506			-			506
Total defined benefit expense	$	684		$	1,378		$	2,046		$	3,147

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2016

Accumulated Other Comprehensive Income [Abstract]

Summary of Changes in OCI

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

(In thousands)	Cash Flow Hedges (a)			Pension Items (a)			Foreign Currency Items			Total
Balance as of June 30, 2016	$	(30	)	$	(4,320	)	$	(171,075	)	$	(175,425	)
Other comprehensive income before reclassifications		(322	)		-			(2,691	)		(3,013	)
Amounts reclassified from OCI		142			36			-			178
Balance as of September 30, 2016	$	(210	)	$	(4,284	)	$	(173,766	)	$	(178,260	)

(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		(1,065	)		-			(4,676	)		(5,741	)
Amounts reclassified from OCI		691			109			(3,257	)		(2,457	)
Balance as of September 30, 2016	$	(210	)	$	(4,284	)	$	(173,766	)	$	(178,260	)

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

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Restructuring (Tables)

9 Months Ended

Sep. 30, 2016

Restructuring [Abstract]

Restructuring Cost by Segment

The following table summarizes the restructuring expense by segment and discontinued operations for the three and nine months ended September 30, 2016 and 2015, respectively:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2016			2015			2016			2015
Flavors & Fragrances	$	2,763		$	10,035		$	8,630		$	23,055
Color		(67	)		245			65			1,828
Asia Pacific		-			-			-			58
Corporate & Other		85			672			703			2,748
Total Continuing Operations		2,781			10,952			9,398			27,689
Discontinued Operations		-			(71	)		(3,485	)		43
Total Restructuring	$	2,781		$	10,881		$	5,913		$	27,732

Summary of Restructuring Costs

The Company recorded restructuring costs in continuing operations for the three and nine months ended September 30, 2016, as follows:

Three Months Ended September 30, 2016

(In thousands)	Selling & Administrative			Cost of Products Sold		Total
Employee separation	$	288		$	-	$	288
Long-lived asset impairment (gain)		(231	)		-		(231	)
Write-down of inventory		-			-		-
Other restructuring costs(1)		2,724			-		2,724
Total	$	2,781		$	-	$	2,781

Nine Months Ended September 30, 2016

(In thousands)	Selling & Administrative		Cost of Products Sold		Total
Employee separation	$	738	$	-	$	738
Long-lived asset impairment		502		-		502
Write-down of inventory		-		810		810
Other restructuring costs(1)		7,348		-		7,348
Total	$	8,588	$	810	$	9,398

⁽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 nine months ended September 30, 2015, as follows:

Three Months Ended September 30, 2015

(In thousands)	Selling & Administrative		Cost of Products Sold		Total
Employee separation	$	745	$	-	$	745
Long-lived asset impairment		2,610		-		2,610
Write-down of inventory		-		2,814		2,814
Other restructuring costs(1)		4,783		-		4,783
Total	$	8,138	$	2,814	$	10,952

Nine Months Ended September 30, 2015

(In thousands)	Selling & Administrative			Cost of Products Sold		Total
Employee separation	$	4,449		$	-	$	4,449
Long-lived asset impairment		10,090			-		10,090
Gain on asset sales		(1,301	)		-		(1,301	)
Write-down of inventory		-			3,095		3,095
Other restructuring costs(1)		11,356			-		11,356
Total	$	24,594		$	3,095	$	27,689

⁽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 nine months ended September 30, 2016:

(In thousands)	Employee Separations			Other			Total
Balance as of December 31, 2015	$	10,260		$	912		$	11,172
Expense activity		738			7,348			8,086
Cash spent		(3,216	)		(7,620	)		(10,836	)
Translation adjustment		209			-			209
Balance as of September 30, 2016	$	7,991		$	640		$	8,631

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Discontinued Operations (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2016		2015			2016			2015
Revenue	$	-	$	-		$	-		$	187
Gain (Loss) from discontinued operations before income taxes		-		(11	)		3,410			(439	)
Income tax (expense) benefit		-		(36	)		(67	)		91
Gain (Loss) from discontinued operations, net of tax	$	-	$	(47	)	$	3,343		$	(348	)

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Accounting Policies (Details) $ in Millions	Dec. 31, 2015 USD ($)
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
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

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Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 4.2	$ 1.5
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Forward exchange contracts, liability	0.2	$ 0.2
Level 2 [Member] | Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term debt	596.8
Level 2 [Member] | Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term debt	$ 619.4

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenue from external customers	$ 349,662	$ 344,533	$ 1,052,966	$ 1,036,768
Total Revenue	359,552	354,214	1,086,378	1,067,424
Operating income (loss)	51,151	43,220	142,335	134,733
Interest expense	4,584	4,295	14,021	12,316
Earnings before income taxes	46,567	38,925	128,314	122,417
Flavors & Fragrances [Member]
Segment Reporting Information [Line Items]
Total Revenue	200,663	207,373	608,329	617,983
Color [Member]
Segment Reporting Information [Line Items]
Total Revenue	125,445	118,468	383,075	362,516
Asia Pacific [Member]
Segment Reporting Information [Line Items]
Total Revenue	33,444	28,373	94,974	86,925
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total Revenue	0	0	0	0
Operating Segments [Member] | Flavors & Fragrances [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	194,845	201,049	586,955	598,226
Operating income (loss)	32,280	31,369	95,097	94,354
Interest expense	0	0	0	0
Earnings before income taxes	32,280	31,369	95,097	94,354
Operating Segments [Member] | Color [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	121,424	115,146	371,166	351,737
Operating income (loss)	26,295	23,181	82,143	74,972
Interest expense	0	0	0	0
Earnings before income taxes	26,295	23,181	82,143	74,972
Operating Segments [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	33,393	28,338	94,845	86,805
Operating income (loss)	6,584	5,703	18,701	17,448
Interest expense	0	0	0	0
Earnings before income taxes	6,584	5,703	18,701	17,448
Operating Segments [Member] | Corporate and Other [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	0	0	0	0
Operating income (loss)	(14,008)	(17,033)	(53,606)	(52,041)
Interest expense	4,584	4,295	14,021	12,316
Earnings before income taxes	(18,592)	(21,328)	(67,627)	(64,357)
Intersegment Revenue [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	9,890	9,681	33,412	30,656
Intersegment Revenue [Member] | Flavors & Fragrances [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	5,818	6,324	21,374	19,757
Intersegment Revenue [Member] | Color [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	4,021	3,322	11,909	10,779
Intersegment Revenue [Member] | Asia Pacific [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	51	35	129	120
Intersegment Revenue [Member] | Corporate and Other [Member]
Segment Reporting Information [Line Items]
Revenue from external customers	$ 0	$ 0	$ 0	$ 0

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Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Inventories [Abstract]
Inventories, including finished and in-process products	$ 277.1	$ 291.9
Raw materials and supplies	$ 129.8	$ 117.3

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Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 502	$ 654	$ 1,508	$ 1,977
Interest cost	414	467	1,259	1,412
Expected return on plan assets	(286)	(321)	(883)	(967)
Amortization of actuarial loss	54	72	162	219
Settlement expense	0	506	0	506
Total defined benefit expense	$ 684	$ 1,378	$ 2,046	$ 3,147

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Shareholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Shareholders' Equity [Abstract]
Common stock repurchased during the period (in shares)	89,251	600,000	400,477	2,500,000
Common stock repurchased during the period, value	$ 6.7	$ 38.2	$ 25.2	$ 165.4

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Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Forward Exchange Contracts [Member]
Derivative instruments and hedging activity for the period [Abstract]
Amount of gain (loss) reclassified into net earnings	$ (0.2)	$ (0.5)	$ (0.9)	$ (0.8)
Forward Exchange Contracts [Member] | 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] | Cash Flow Hedges [Member]
Derivative instruments and hedging activity for the period [Abstract]
Derivative, fair value	16.4		$ 16.4		$ 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	208.5		208.5		$ 162.5
Impact of foreign exchange rates on debt instruments recorded in Other Comprehensive Income	$ 2.2		$ 5.8

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Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Taxes [Abstract]
Effective income tax rates for continuing operations	23.50%	29.00%	28.60%	28.20%

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
		Sep. 30, 2016	Sep. 30, 2016
Accumulated Other Comprehensive Loss [Roll Forward]
Beginning balance			$ 845,127
Other comprehensive income before reclassifications		$ (3,013)	(5,741)
Amounts reclassified from OCI		178	(2,457)
Ending balance		878,396	878,396
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Loss [Roll Forward]
Beginning balance		(175,425)	(170,062)
Ending balance		(178,260)	(178,260)
Cash Flow Hedges [Member]
Accumulated Other Comprehensive Loss [Roll Forward]
Beginning balance	[1]	(30)	164
Other comprehensive income before reclassifications	[1]	(322)	(1,065)
Amounts reclassified from OCI	[1]	142	691
Ending balance	[1]	(210)	(210)
Pension Items [Member]
Accumulated Other Comprehensive Loss [Roll Forward]
Beginning balance	[1]	(4,320)	(4,393)
Other comprehensive income before reclassifications	[1]	0	0
Amounts reclassified from OCI	[1]	36	109
Ending balance	[1]	(4,284)	(4,284)
Foreign Currency Items [Member]
Accumulated Other Comprehensive Loss [Roll Forward]
Beginning balance		(171,075)	(165,833)
Other comprehensive income before reclassifications		(2,691)	(4,676)
Amounts reclassified from OCI		0	(3,257)
Ending balance		$ (173,766)	$ (173,766)

[1] Cash Flow Hedges and Pension Items are net of tax.

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Restructuring (Details) $ in Thousands		3 Months Ended			9 Months Ended		30 Months Ended
		Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) Facilities Positions	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)
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							85,600
Position reduction due to restructuring | Positions					400
Number of positions eliminated due to restructuring | Positions					256
Non-cash loss on sale of business					$ 15,000
Liabilities held for sale		6,192			6,192		6,192	$ 4,090
Total restructuring costs incurred to date		147,300			147,300		147,300
Estimated cost savings due to restructuring					30,000
Annual cost of savings					27,000
Realized cost of savings		3,000					22,000
Expected incremental saving realized					1,000
Gain on sale of facilities			$ 200
Restructuring cost by segment [Abstract]
Total continuing operations		2,781		$ 10,952	9,398	$ 27,689
Discontinued operations		0		(71)	(3,485)	43
Total restructuring		2,781		10,881	5,913	27,732
Detail of the restructuring costs [Abstract]
Employee separation		288		745	738	4,449
Long-lived asset impairment (gain)		(231)		2,610	502	10,090
Gain on asset sales						(1,301)
Write-down of inventory		0		2,814	810	3,095
Other restructuring costs	[1]	2,724		4,783	7,348	11,356
Future restructuring costs, 2016		4,000			4,000		4,000
Future restructuring costs, 2017		16,000			16,000		16,000
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					8,086
Cash spent					(10,836)
Translation adjustment					209
Balance as of end of period		8,631			$ 8,631		8,631
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		2,781		8,138	$ 8,588	24,594
Detail of the restructuring costs [Abstract]
Employee separation		288		745	738	4,449
Long-lived asset impairment (gain)		(231)		2,610	502	10,090
Gain on asset sales						(1,301)
Write-down of inventory		0		0	0	0
Other restructuring costs	[1]	2,724		4,783	7,348	11,356
Cost of Products Sold [Member]
Restructuring cost by segment [Abstract]
Total continuing operations		0		2,814	810	3,095
Detail of the restructuring costs [Abstract]
Employee separation		0		0	0	0
Long-lived asset impairment (gain)		0		0	0	0
Gain on asset sales						0
Write-down of inventory		0		2,814	810	3,095
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		2,763		10,035	$ 8,630	23,055
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		(67)		245	$ 65	1,828
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		85		$ 672	703	$ 2,748
European Natural Ingredients Business [Member]
Restructuring Cost and Reserve [Line Items]
Assets held for sale of inventory, receivable and other assets		20,000			20,000		20,000
Liabilities held for sale		4,600			4,600		4,600
2014 Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Assets held for sale of land, building and equipment		9,700			9,700		9,700
Employee Separations [Member]
Summary of accrual for restructuring and other charges [Roll Forward]
Balance as of beginning of period					10,260
Expense activity					738
Cash spent					(3,216)
Translation adjustment					209
Balance as of end of period		7,991			7,991		7,991
Other [Member]
Summary of accrual for restructuring and other charges [Roll Forward]
Balance as of beginning of period					912
Expense activity					7,348
Cash spent					(7,620)
Translation adjustment					0
Balance as of end of period		$ 640			$ 640		$ 640

[1] Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs.

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Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Discontinued Operations [Abstract]
Gain on sale of assets		$ 200
Translation adjustment reclassified into net earnings		$ 3,300
Certain Consolidated Condensed Statements of Earnings information for discontinued operations [Abstract]
Revenue	$ 0		$ 0	$ 0	$ 187
Gain (Loss) from discontinued operations before income taxes	0		(11)	3,410	(439)
Income tax (expense) benefit	0		(36)	(67)	91
Gain (Loss) from discontinued operations, net of tax	$ 0		$ (47)	$ 3,343	$ (348)

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Anticipated Divestiture (Details) - Flavors & Fragrances [Member] - Europe [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2016
Long Lived Assets Held-for-sale [Line Items]
Assets held for sale of inventory and other assets	$ 19.1		$ 19.1
Liabilities held for sale	1.6		1.6
Long-lived assets	0.0		0.0
Expected non-cash loss on assets held for sale			$ 7.0
Outside professional fees related to anticipated divestiture	$ 0.2
Selling, General and Administrative Expenses [Member]
Long Lived Assets Held-for-sale [Line Items]
Impairment charges		$ 10.3

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Subsequent Events (Details) $ in Millions	Oct. 03, 2016 USD ($)
Subsequent Events [Member]
Subsequent Event [Line Items]
Procceds received by the Company for the sale of trade receivables from a third party	$ 40

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Commitments and Contingencies (Details) - Sensient Natural Ingredients LLC [Member] $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 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
Amount accrued for settlement | $	$ 0.6