0001140361-17-018693.txt : 20170508 0001140361-17-018693.hdr.sgml : 20170508 20170508105614 ACCESSION NUMBER: 0001140361-17-018693 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 53 CONFORMED PERIOD OF REPORT: 20170331 FILED AS OF DATE: 20170508 DATE AS OF CHANGE: 20170508 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SENSIENT TECHNOLOGIES CORP CENTRAL INDEX KEY: 0000310142 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 390561070 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07626 FILM NUMBER: 17821069 BUSINESS ADDRESS: STREET 1: 777 EAST WISCONSIN AVENUE CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 4142716755 MAIL ADDRESS: STREET 1: PO BOX 737 CITY: MILWAUKEE STATE: WI ZIP: 53201 FORMER COMPANY: FORMER CONFORMED NAME: UNIVERSAL FOODS CORP DATE OF NAME CHANGE: 19920703 10-Q 1 form10q.htm 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:                                                                          March 31, 2017

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, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 
 
Large accelerated filer ☒
Accelerated filer ☐
Non-accelerated filer ☐
(Do not check if a smaller reporting company)
     
 
Smaller reporting company ☐
Emerging growth company ☐ 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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 April 30, 2017
   Common Stock, par value $0.10 per share
 
44,258,871
 


SENSIENT TECHNOLOGIES CORPORATION
INDEX

     
Page No.
PART I. FINANCIAL INFORMATION:
 
       
 
Item 1.
Financial Statements:
 
   
1
       
   
2
   
 
 
   
3
       
   
4
       
   
5
        
 
Item 2.
13
   
 
 
Item 3.
19
       
 
Item 4.
19
       
PART II. OTHER INFORMATION:
 
       
 
Item 1.
20
       
 
Item 1A.
20
       
 
Item 2.
21
       
 
Item 6.
21
       
   
22
       
   
23
 
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 March 31,
    
2017       2016
             
Revenue
 
$
341,397
   
$
342,468
 
                 
Cost of products sold
   
220,452
     
226,625
 
                 
Selling and administrative expenses
   
96,908
     
68,324
 
                 
Operating income
   
24,037
     
47,519
 
                 
Interest expense
   
4,811
     
4,800
 
                 
Earnings before income taxes
   
19,226
     
42,719
 
                 
Income taxes
   
6,034
     
11,526
 
                 
Earnings from continuing operations
   
13,192
     
31,193
 
                 
Loss from discontinued operations, net of tax
   
-
     
(22
)
                 
Net earnings
 
$
13,192
   
$
31,171
 
                 
Weighted average number of shares outstanding:
               
Basic
   
44,202
     
44,718
 
                 
Diluted
   
44,479
     
44,981
 
                 
Earnings per common share:
               
                 
Basic:
               
Continuing operations
 
$
0.30
   
$
0.70
 
Discontinued operations
   
-
     
-
 
Earnings per common share
 
$
0.30
   
$
0.70
 
                 
Diluted:
               
Continuing operations
 
$
0. 30
   
$
0.69
 
Discontinued operations
   
-
     
-
 
Earnings per common share
 
$
 0.30
   
$
 0.69
 
                 
Dividends declared per common share
 
$
0.30
   
$
0.27
 

See accompanying notes to consolidated condensed financial statements.
 
1

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

   
Three Months
Ended March 31,
 
   
2017
   
2016
 
             
Comprehensive Income
 
$
37,271
   
$
46,750
 
 
See accompanying notes to consolidated condensed financial statements.
 
2

SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)

  
ASSETS
   
March 31,
2017
(Unaudited)
         
December 31,
2016
   
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
29,109
   
$
25,865
 
Trade accounts receivable, net
   
202,343
     
194,509
 
Inventories
   
410,067
     
404,320
 
Prepaid expenses and other current assets
   
51,422
     
50,974
 
Assets held for sale
   
6,788
     
41,393
 
                 
TOTAL CURRENT ASSETS
   
699,729
     
717,061
 
                 
OTHER ASSETS
   
70,298
     
70,462
 
DEFERRED TAX ASSETS
   
6,787
     
12,120
 
INTANGIBLE ASSETS, NET
   
7,900
     
8,126
 
GOODWILL
   
387,906
     
383,568
 
                 
PROPERTY, PLANT AND EQUIPMENT:
               
Land
   
32,925
     
33,015
 
Buildings
   
283,677
     
265,157
 
Machinery and equipment
   
686,858
     
643,869
 
Construction in progress
   
35,218
     
79,981
 
     
1,038,678
     
1,022,022
 
Less accumulated depreciation
   
(560,096
)
   
(545,499
)
 
   
478,582
     
476,523
 
                 
TOTAL ASSETS
 
$
1,651,202
   
$
1,667,860
 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES:
               
Trade accounts payable
 
$
81,260
   
$
92,450
 
Accrued salaries, wages and withholdings from employees
   
19,606
     
26,502
 
Other accrued expenses
   
55,774
     
54,752
 
Income taxes
   
14,163
     
14,080
 
Short-term borrowings
   
20,281
     
20,578
 
Liabilities held for sale
   
-
     
5,313
 
                 
TOTAL CURRENT LIABILITIES
   
191,084
     
213,675
 
                 
DEFERRED INCOME TAXES
   
11,375
     
9,650
 
OTHER LIABILITIES
   
6,278
     
6,103
 
ACCRUED EMPLOYEE AND RETIREE BENEFITS
   
20,430
     
19,911
 
LONG‑TERM DEBT
   
572,200
     
582,780
 
                 
SHAREHOLDERS' EQUITY:
               
Common stock
   
5,396
     
5,396
 
Additional paid‑in capital
   
108,593
     
107,686
 
Earnings reinvested in the business
   
1,378,809
     
1,378,923
 
Treasury stock, at cost
   
(453,577
)
   
(442,799
)
Accumulated other comprehensive loss
   
(189,386
)
   
(213,465
)
                 
TOTAL SHAREHOLDERS’ EQUITY
   
849,835
     
835,741
 
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
1,651,202
   
$
1,667,860
 

See accompanying notes to consolidated condensed financial statements.
 
3

SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

      
Three Months
Ended March 31,
 
2017       2016
Cash flows from operating activities:
           
Net earnings
 
$
13,192
   
$
31,171
 
Adjustments to arrive at net cash provided by operating activities:
               
Depreciation and amortization
   
12,141
     
11,612
 
Share-based compensation
   
1,930
     
2,018
 
Net loss on assets
   
386
     
458
 
Loss on divestiture of businesses
   
31,882
     
-
 
Deferred income taxes
   
2,202
     
(1,349
)
Changes in operating assets and liabilities
   
(24,167
)
   
2,263
 
                 
Net cash provided by operating activities
   
37,566
     
46,173
 
                 
Cash flows from investing activities:
               
Acquisition of property, plant and equipment
   
(10,069
)
   
(14,120
)
Proceeds from sale of assets
   
105
     
37
 
Proceeds from divestiture of businesses
   
12,457
     
-
 
Other investing activity
   
(63
)
   
(18
)
                 
Net cash used in investing activities
   
2,430
     
(14,101
)
                 
Cash flows from financing activities:
               
Proceeds from additional borrowings
   
5,657
     
95,562
 
Debt payments
   
(19,350
)
   
(87,284
)
Purchase of treasury stock
   
(12,365
)
   
(17,920
)
Dividends paid
   
(13,306
)
   
(12,163
)
Other financing activity
   
(477
)
   
161
 
                 
Net cash used in financing activities
   
(39,841
)
   
(21,644
)
                 
Effect of exchange rate changes on cash and cash equivalents
   
3,089
     
2,278
 
                 
Net increase in cash and cash equivalents
   
3,244
     
12,706
 
Cash and cash equivalents at beginning of period
   
25,865
     
11,997
 
                 
Cash and cash equivalents at end of period
 
$
29,109
   
$
24,703
 

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 March 31, 2017, and the results of operations, comprehensive income, and cash flows for the three months ended March 31, 2017 and 2016.  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 July 2015, the Financial Accounting Standards Board (FASB) affirmed its proposed one-year deferral of the effective date for Accounting Standards Update (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 has been reviewing the impact of this standard on the Company’s financial statements. The Company currently recognizes revenue (net of estimated discounts, allowances and returns) when title to goods passes, the customer is obliged to pay the Company, and the Company has no remaining obligations.  Such recognition typically corresponds with the shipment of goods. The Company created a project team within its Corporate Finance Department, in 2016, to review the potential impact that this ASU may have on the Company. The Company's revenue recognition project team has been gathering data, including issuing a detailed revenue recognition questionnaire designed to highlight instances of variable consideration, and reviewing existing contracts and other relevant documents across all of the Company's segments. In the first quarter of 2017, the Company finalized a detailed project plan and distributed a second revenue recognition questionnaire designed to examine potential instances of variable consideration in greater detail, and will review and document the results of this questionnaire by the end of the third quarter of 2017. The Company plans to incorporate this new standard using the Full Retrospective transition method. Based on procedures to-date, the Company has not identified any areas that will result in significant changes to the timing of recognition or measurement of revenue, but the Company will continue to evaluate the effects of this standard on the Company’s Consolidated Financial Statements.

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. The Company adopted this standard in first quarter of 2017 and it did not have a material effect on its consolidated financial statements.

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 December 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. Under current GAAP, the tax effects of intra-entity asset transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company is currently evaluating the impact of this standard.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as the other employee compensation costs arising from services rendered during the period. The other components of net benefit cost are to be presented outside of any subtotal of operating income. This ASU is effective for fiscal years and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluation the expected impact of this standard.
 
5

Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2016, 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 March 31, 2017, and December 31, 2016, 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 an asset of $0.2 million as of March 31, 2017, and a liability of $0.2 million as of December 31, 2016. The fair value of the investments based on March 31, 2017, and December 31, 2016, market quotes (Level 1 inputs) was an asset of $1.5 million and $1.8 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 March 31, 2017. 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 March 31, 2017, was $572.2 million. The fair value of the long-term debt at March 31, 2017, was $587.0 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 March 31, 2017:
                             
Revenue from external customers
 
$
181,075
   
$
130,840
   
$
29,482
   
$
-
   
$
341,397
 
Intersegment revenue
   
5,800
     
3,226
     
154
     
-
     
9,180
 
Total revenue
 
$
186,875
   
$
134,066
   
$
29,636
   
$
-
   
$
350,577
 
                                         
Operating income (loss)
 
$
28,770
   
$
30,217
   
$
5,150
   
$
(40,100
)
 
$
24,037
 
Interest expense
   
-
     
-
     
-
     
4,811
     
4,811
 
Earnings (loss) before income taxes
 
$
28,770
   
$
30,217
   
$
5,150
   
$
(44,911
)
 
$
19,226
 
                                         
Three months ended March 31, 2016:
                                       
Revenue from external customers
 
$
191,137
   
$
123,164
   
$
28,167
   
$
-
   
$
342,468
 
Intersegment revenue
   
7,347
     
3,318
     
40
     
-
     
10,705
 
Total revenue
 
$
198,484
   
$
126,482
   
$
28,207
   
$
-
   
$
353,173
 
                                         
Operating income (loss)
 
$
27,647
   
$
28,116
   
$
5,596
   
$
(13,840
)
 
$
47,519
 
Interest expense
   
-
     
-
     
-
     
4,800
     
4,800
 
Earnings (loss) before income taxes
 
$
27,647
   
$
28,116
   
$
5,596
   
$
(18,640
)
 
$
42,719
 
 
Beginning in the first quarter of 2017, the results of operations for certain of the Company’s cosmetic and fragrance businesses in the Asia Pacific segment are now reported in the Color segment and Flavors & Fragrances segment, respectively. The results for 2016 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 2017 and 2016 restructuring and other costs related to continuing operations are reported in Corporate & Other. See Note 11, Restructuring, for more information on the Company’s restructuring activities. The 2017 other costs pertain to the costs associated with the Company’s divestiture of a facility and certain related business lines within the Flavors & Fragrances business in Strasbourg, France; see Note 13, Divestiture.
 
6

4.
Inventories

At March 31, 2017, and December 31, 2016, inventories included finished and in-process products totaling $273.1 million and $273.8 million, respectively, and raw materials and supplies of $137.0 million and $130.5 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
March 31,
 
(In thousands)
 
2017
   
2016
 
             
Service cost
 
$
461
   
$
503
 
Interest cost
   
355
     
420
 
Expected return on plan assets
   
(255
)
   
(297
)
Amortization of actuarial (gain) loss
   
(21
)
   
53
 
                 
Total defined benefit expense
 
$
540
   
$
679
 
 
6.
Shareholders’ Equity

The Company repurchased 155,849 shares of its common stock for an aggregate cost of $12.4 million during the three months ended March 31, 2017, and 263,770 shares of its common stock for an aggregate cost of $15.4 million during the three months ended March 31, 2016. 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 three-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 $19.5 million and $25.4 million of forward exchange contracts, designated as hedges, outstanding as of March 31, 2017, and December 31, 2016, respectively. For the three months ended March 31, 2017, the losses reclassified were not material. For the three months ended March 31, 2016, losses of $0.5 million were reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the earnings impact of the related non-functional asset or liability hedged in the same period. 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 March 31, 2017, and December 31, 2016, the total value of the Company’s Euro and Swiss Franc debt was $198.2 million and $195.6 million, respectively.  For the three months ended March 31, 2017, the impact of foreign exchange rates on these debt instruments increased debt by $2.6 million, which has been recorded as foreign currency translation in OCI.
 
7

8.
Income Taxes

The effective income tax rates for continuing operations for the quarters ended March 31, 2017 and 2016, were 31.4% and 27.0%, respectively. The effective tax rates in both 2017 and 2016 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 tax rate in 2017 was also impacted by the limited tax deductibility of losses related to the divestitures discussed in Note 11, Restructuring and Note 13, Divestiture.
 
9.
Accumulated Other Comprehensive Income

The following table summarizes the changes in OCI during the three-month period ended March 31, 2017:

(In thousands)
 
Cash Flow
Hedges (a)
   
Pension
Items (a)
   
Foreign
Currency
Items
   
Total
 
Balance as of December 31, 2016
 
$
(85
)
 
$
(2,537
)
 
$
(210,843
)
 
$
(213,465
)
Other comprehensive income before reclassifications
   
327
     
-
     
17,276
     
17,603
 
Amounts reclassified from OCI
   
(20
)
   
(28
)
   
6,524
     
6,476
 
Balance as of March 31, 2017
 
$
222
   
$
(2,565
)
 
$
(187,043
)
 
$
(189,386
)

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

During the three months ended March 31, 2017, the Company completed the divestiture of a facility and certain related business lines in the Flavors & Fragrances segment (see Note 13, Divestiture, for additional information), resulting in the reclassification of the cumulative translation loss of $2.8 million into net earnings. In addition, the Company completed the sale of its European Natural Ingredient business (see Note 11, Restructuring, for additional information), resulting in the reclassification of the cumulative translation loss of $3.7 million into net earnings.
 
10.
Accounts Receivable Securitization

During October 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 ASC Topic 860, Transfers and Servicing. Sales of trade receivables under the program are recorded as a reduction of accounts receivable in the Company's Consolidated Balance Sheet. Proceeds received, including collections on the deferred purchase price receivable, are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows.

The initial trade receivables sold to the third-party financial institution, Wells Fargo, in October 2016, totaled $60.6 million, for which $40 million in proceeds was received. The fair value of the receivables sold equaled the carrying cost at the time of sale and no gain or loss was recorded as a result of the sale. The sale also resulted in the recording of a deferred purchase price amount, which represents the retained interest in the sold receivables. This amount is adjusted each month based on collections and other activity. The fair value of the deferred purchase price receivable recorded on the initial sale in October 2016 was $20.6 million. The Company estimates the fair value of the deferred purchase price receivable based on historical performance of similar receivables including an allowance for doubtful accounts, as well as estimated cash discounts to be taken by customers and potential credits issued to customers. The Company deems the interest rate risk related to the deferred purchase price receivable to be de minimis primarily due to the short average collection cycle of the related receivables. As of March 31, 2017, the trade receivables sold to Wells Fargo totaled $57.1 million. The fair value of the deferred purchase price receivable was $17.1 million which is recorded in Trade Accounts Receivable in the Company’s Consolidated Balance Sheets.
 
8

11.
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 12, 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. Closures have been announced in Indianapolis, Indiana, United States; Cornwall, Mississauga and Halton Hills, Canada; Bremen, Germany; and Milan, Italy. The Company also identified its two European Natural Ingredients facilities to be sold as part of the Plan, 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. The Company has operationally completed all of the above mentioned activities and closures with the exception of the closure of the Indianapolis facility, which is anticipated to be closed in the second quarter of 2017.

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 $14 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 $0.5 million during each of the three months ended March 31, 2017 and 2016. Since initiating the Plan, the Company has recorded $87.2 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 March 31, 2017, 355 positions had been eliminated as a result of this Plan.

During the three months ended March 31, 2017, the Company sold its European Natural Ingredients business (also known as the European Dehydrated Vegetable business), a business in the Flavors & Fragrances segment. This business had two facilities, located in Marchais, France, and Elburg, the Netherlands. The European Natural Ingredients business had not generated significant profits for several years and did not fit with the Company’s long-term strategic plan. The Company completed the sale of this business on March 27, 2017, for a de minimis amount and recognized a non-cash loss of approximately $21 million.

As of March 31, 2017, the Company has recorded assets held for sale of land, buildings, and equipment of $6.8 million related to the 2014 Restructuring Plan.

The Company recorded total restructuring costs of $20.2 million for the three months ended March 31, 2017, and $3.3 million for the three months ended March 31, 2016, in accordance with GAAP.  Since initiating the 2014 Restructuring Plan, the Company has incurred $172.7 million of restructuring costs through March 31, 2017. The Company expects to incur approximately $7 million of additional restructuring costs by the end of 2017.  The increase in the 2017 expected costs are primarily due to the delay in closing the Indianapolis facility, which is now anticipated to be closed in the second quarter of 2017.
 
9

The closure and sale of these operations have significantly lowered the Company’s operating costs over the last few years and anticipates additional savings in 2018. 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 March 31, 2017. During the three months ended March 31, 2017, the Company realized a de minimis amount of savings and expects to realize approximately $1 million of additional savings by the end of 2017 and approximately $3 to $4 million in 2018. Expected savings have shifted from 2017 to 2018 primarily due to the delay in closing the Indianapolis facility. 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. In 2016, the facility and remaining assets were sold and the entity was liquidated.

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 Corporate & Other. The following table summarizes the restructuring expense by segment and discontinued operations for the three months ended March 31, 2017 and 2016, respectively:

   
Three Months Ended
March 31,
 
(In thousands)
 
2017
   
2016
 
             
Flavors & Fragrances
 
$
20,153
   
$
2,942
 
Color
   
-
     
39
 
Asia Pacific
   
-
     
-
 
Corporate & Other
   
59
     
361
 
                 
Total Continuing Operations
   
20,212
     
3,342
 
                 
Discontinued Operations
   
-
     
-
 
                 
Total Restructuring
 
$
20,212
   
$
3,342
 
 
The Company recorded restructuring costs in continuing operations for the three months ended March 31, 2017, as follows:

Three Months Ended March 31, 2017
 
(In thousands)
  
Selling &
Administrative
     
Cost of
Products Sold
       
Total
  
Employee separation(1)
 
$
(4,485
)
 
$
-
   
$
(4,485
)
Long-lived asset impairment
   
456
     
-
     
456
 
Loss on sale of business
   
20,909
     
-
     
20,909
 
Write-down of inventory
   
-
     
342
     
342
 
Other restructuring costs(2)
   
2,990
     
-
     
2,990
 
                         
Total
 
$
19,870
   
$
342
   
$
20,212
 
 
(1)
Employee separation costs include a reversal of the employee separation accrual for the European Natural Ingredients business, which is no longer expected to be paid due to the sale of this business.
(2)
Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs.
 
10

The Company recorded restructuring costs in continuing operations for the three months ended March 31, 2016, as follows:
 
Three Months Ended March 31, 2016
(In thousands)
 
Selling &
 Administrative
   
Cost of
Products Sold
   
Total
 
Employee separation
 
$
131
   
$
-
   
$
131
 
Long-lived asset impairment
   
471
     
-
     
471
 
Write-down of inventory
   
-
     
644
     
644
 
Other restructuring costs(1)
   
2,096
     
-
     
2,096
 
                         
Total
 
$
2,698
   
$
644
   
$
3,342
 

(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 three months ended March 31, 2017:

(In thousands)
 
Employee
Separations
   
Other
   
Total
 
Balance as of December 31, 2016
 
$
6,959
   
$
570
   
$
7,529
 
Expense activity (1)
   
(4,485
)
   
2,990
     
(1,495
)
Cash spent
   
(1,252
)
   
(3,327
)
   
(4,579
)
Translation adjustment
   
77
     
-
     
77
 
Balance as of March 31, 2017
 
$
1,299
   
$
233
   
$
1,532
 

(1)
Employee separation costs include a reversal of the employee separation accrual for the European Natural Ingredients business, which is no longer expected to be paid due to the sale of this business.

12.
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. In 2016, the facility and remaining assets were sold and the entity was liquidated.

The following table summarizes the discontinued operation’s results for the three months ended March 31, 2017 and 2016:

   
Three Months Ended
March 31,
 
(In thousands)
 
2017
   
2016
 
             
Revenue
 
$
-
   
$
-
 
Loss from discontinued operations before income taxes
   
-
     
(31
)
Income tax benefit
   
-
     
9
 
Loss from discontinued operations, net of tax
 
$
-
   
$
(22
)
 
11

13.
Divestiture

In 2016, the Company’s Board of Directors authorized management to explore strategic alternatives for a facility and certain related business lines within the Flavors & Fragrances segment in Strasbourg, France. In 2016, the Company recorded a non-cash impairment charge of $10.8 million, 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. In addition, the Company incurred $0.7 million of outside professional fees and other related costs in 2016, as a result of the then anticipated divestiture.

On January 6, 2017, the Company completed the sale of this facility and certain related business lines for approximately $12.5 million. The Company recognized an additional non-cash loss of approximately $11 million during the three months ended March 31, 2017. The additional non-cash loss is primarily due to changes in the estimates related to the amount of the cumulative translation loss, deferred tax assets, and updating working capital balances and other estimates upon closing the transaction. The Company also incurred approximately $0.1 million of outside professional fees and other related costs.

14.
Subsequent Events

On May 3, 2017, the Company issued three new fixed-rate notes consisting of a 7-year note of €50 million (approximately $53 million) at a fixed rate of 1.27%; a 10-year note of €40 million (approximately $43 million) at a fixed rate of 1.71%; and a 7-year note of $27 million at a fixed rate of 3.65%. Also, on May 3, 2017, the Company extended the maturity date of its revolver from November 2020 to May 2022, and increased its credit facility term loan from $115 million to $145 million. Proceeds were used to refinance existing debt.
 
15.
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.

As of May 1, 2017, the parties finalized a settlement, which is pending Court approval. The Company previously accrued $0.6 million for the settlement of this matter, which it will pay to claimants after the settlement is approved by the Court.

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.
 
12

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 $341.4 million and $342.5 million for the three months ended March 31, 2017 and 2016, respectively, a decrease of 0.3%. The impact of foreign exchange rates decreased consolidated revenue by approximately 1.2% for the three months ended March 31, 2017.

Gross Profit
The Company’s gross margin was 35.4% and 33.8% for the three months ended March 31, 2017 and 2016, respectively. Included in the cost of sales are $0.3 million and $0.6 million of restructuring costs for the three months ended March 31, 2017 and 2016, respectively. The increase in gross margin for the three months ended March 31, 2017 is primarily a result of higher selling prices, higher volumes and the favorable impact of the divestiture (see the discussion below under Divestiture). Restructuring costs reduced gross margin by 10 basis points and 20 basis points for the three months ended March 31, 2017 and 2016, respectively.

Selling and Administrative Expense
Selling and administrative expenses as a percent of revenue were 28.4% and 20.0% for the three months ended March 31, 2017 and 2016, respectively. Restructuring and other costs (see the discussions below regarding Restructuring, Divestiture, and Non-GAAP Financial Measures) of $30.9 million and $2.7 million were included in selling and administrative expenses for the three months ended March 31, 2017 and 2016, respectively. The increase in selling and administrative expenses as a percent of revenue is primarily due to an increase in the restructuring and other costs which increased selling and administrative expense as a percent of revenue by 910 basis points and 80 basis points for the three months ended March 31, 2017 and 2016, respectively.

Operating Income
Operating income was $24.0 million and $47.5 million for the three months ended March 31, 2017 and 2016, respectively. Operating margins were 7.0% and 13.9% for the three months ended March 31, 2017 and 2016, respectively. Restructuring and other costs reduced operating margins by 920 basis points and 100 basis points during the three months ended March 31, 2017 and 2016, respectively.

Interest Expense
Interest expense was $4.8 million for the three months ended March 31, 2017 and 2016.

Income Taxes
The effective income tax rates for continuing operations for the three months ended March 31, 2017 and 2016, were 31.4% and 27.0%, respectively. The effective tax rates in both 2017 and 2016 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 tax rate in 2017 was also impacted by the tax deductibility of losses related to the divestitures discussed in Note 11, Restructuring and Note 13, Divestiture.
 
13

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 12, 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. Closures have been announced in Indianapolis, Indiana, United States; Cornwall, Mississauga and Halton Hills, Canada; Bremen, Germany; and Milan, Italy. The Company also identified its two European Natural Ingredients facilities to be sold as part of the Plan, 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. The Company has operationally completed all of the above mentioned activities and closures with the exception of the closure of the Indianapolis facility, which is anticipated to be closed in the second quarter of 2017.

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 $14 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 $0.5 million during each of the three months ended March 31, 2017 and 2016. Since initiating the Plan, the Company has recorded $87.2 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 March 31, 2017, 355 positions had been eliminated as a result of this Plan.

During the three months ended March 31, 2017, the Company sold its European Natural Ingredients business (also known as the European Dehydrated Vegetable business), a business in the Flavors & Fragrances segment. This business had two facilities, located in Marchais, France, and Elburg, the Netherlands. The European Natural Ingredients business had not generated significant profits for several years and did not fit with the Company’s long-term strategic plan. The Company completed the sale of this business on March 27, 2017, for a de minimis amount and recognized a non-cash loss of approximately $21 million.

As of March 31, 2017, the Company has recorded assets held for sale of land, buildings, and equipment of $6.8 million related to the 2014 Restructuring Plan.

The Company recorded total restructuring costs of $20.2 million for the three months ended March 31, 2017, and $3.3 million for the three months ended March 31, 2016, in accordance with GAAP.  Since initiating the 2014 Restructuring Plan, the Company has incurred $172.7 million of restructuring costs through March 31, 2017. The Company expects to incur approximately $7 million of additional restructuring costs by the end of 2017.  The increase in the 2017 expected costs are primarily due to the delay in closing the Indianapolis facility, which is now anticipated to be closed in the second quarter of 2017.
14

The closure and sale of these operations have significantly lowered the Company’s operating costs over the last few years and anticipates additional savings in 2018. 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 March 31, 2017. During the three months ended March 31, 2017, the Company realized a de minimis amount of savings and expects to realize approximately $1 million of additional savings by the end of 2017 and approximately $3 to $4 million in 2018. Expected savings have shifted from 2017 to 2018 primarily due to the delay in closing the Indianapolis facility. 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. In 2016, the facility and remaining assets were sold and the entity was liquidated.

Divestiture
In 2016, the Company’s Board of Directors authorized management to explore strategic alternatives for a facility and certain related business lines within the Flavors & Fragrances segment in Strasbourg, France. In 2016, the Company recorded a non-cash impairment charge of $10.8 million, 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. In addition, the Company incurred $0.7 million of outside professional fees and other related costs in 2016, as a result of the then anticipated divestiture.

On January 6, 2017, the Company completed the sale of this facility and certain related business lines for approximately $12.5 million. The Company recognized an additional non-cash loss of approximately $11 million during the three months ended March 31, 2017. The additional non-cash loss is primarily due to changes in the estimates related to the amount of the cumulative translation loss, deferred tax assets, and updating working capital balances and the other estimates upon closing the transaction. The Company also incurred approximately $0.1 million of outside professional fees and other related costs.

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 2017 are for the divestiture related costs discussed under Divestiture above.

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.
 
15

 
Three Months Ended March 31,
 
   
2017
   
2016
   
%
Change
 
Operating income from continuing operations (GAAP)
 
$
24,037
   
$
47,519
     
-49.4
%
Restructuring - Cost of products sold
   
342
     
644
         
Restructuring - Selling and administrative
   
19,870
     
2,698
         
Other  - Selling and administrative (1)
   
11,047
     
-
         
Adjusted operating income
 
$
55,296
   
$
50,861
     
8.7
%
                         
Net earnings from continuing operations (GAAP)
 
$
13,192
   
$
31,193
     
-57.7
%
Restructuring and other, before tax
   
31,259
     
3,342
         
Tax impact of restructuring and other
   
(7,827
)
   
(862
)
       
Adjusted net earnings
 
$
36,624
   
$
33,673
     
8.8
%
                         
Diluted EPS from continuing operations (GAAP)
 
$
0.30
   
$
0.69
     
-56.5
%
Restructuring and other, net of tax
   
0.53
     
0.06
         
Adjusted diluted EPS
 
$
0.82
   
$
0.75
     
9.3
%

(1)
The other costs in 2017 are for the divestiture related costs discussed under Divestiture above.

The following table summarizes the percentage change for the results for the three months ended March 31, 2017, compared to the results for the three ended March 31, 2016, in the respective financial measures:

   
Three Months Ended March 31, 2017
 
Revenue
 
Total
   
Foreign
Exchange
 Rates
   
Local
Currency
 
Flavors & Fragrances
   
(5.8
%)
   
(2.0
%)
   
(3.9
%)
Color
   
6.0
%
   
(0.8
%)
   
6.8
%
Asia Pacific
   
5.1
%
   
1.0
%
   
4.1
%
Total Revenue
   
(0.3
%)
   
(1.2
%)
   
0.9
%
                         
                         
Operating Income from Continuing Operations
                       
Flavors & Fragrances
   
4.1
%
   
(1.1
%)
   
5.2
%
Color
   
7.5
%
   
(1.5
%)
   
9.0
%
Asia Pacific
   
(8.0
%)
   
0.8
%
   
(8.8
%)
Corporate & Other
   
189.7
%
   
(0.3
%)
   
190.0
%
Operating Income from Continuing Operations
   
(49.4
%)
   
(1.4
%)
   
(48.0
%)
                         
Diluted EPS from Continuing Operations
   
(56.5
%)
   
(1.4
%)
   
(55.1
%)
                         
Adjusted Operating Income (1)
   
8.7
%
   
(1.4
%)
   
10.1
%
Adjusted Diluted EPS (1)
   
9.3
%
   
(1.3
%)
   
10.7
%

 
(1)
Refer to the table above for a reconciliation of these non-GAAP measures.
 
16

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 Corporate & Other, interest expense, and income taxes.

Beginning in the first quarter of 2017, the results of operations for certain of the Company’s cosmetic and fragrance businesses in the Asia Pacific segment, are now reported in the Color segment and Flavors & Fragrances segment, respectively. The results for 2016 have been restated to reflect these changes.

Flavors & Fragrances
Flavors & Fragrances segment revenue was $186.9 million and $198.5 million for the three months ended March 31, 2017 and 2016, respectively, a decrease of 5.8%. Foreign exchange rates reduced segment revenue by 2.0%. The decrease in segment revenue was primarily due to lower revenue in North America ($7.0 million) and Europe ($5.4 million) partially offset by higher revenue in Latin America ($0.8 million). The lower revenue in North America was primarily due to lower volumes ($11.4 million) partially offset by higher selling prices ($3.9 million) and the favorable impact of exchange rates ($0.5 million). The lower revenue in Europe was primarily due to the unfavorable impact of exchange rates ($3.5 million), the divestitures ($2.1 million), and lower volumes ($0.7 million) partially offset by higher selling prices ($0.8 million). The higher revenue in Latin America was primarily due to higher volumes ($1.1 million) and higher selling prices ($0.7 million) partially offset by the impact of unfavorable exchange rates ($1.0 million).

Flavors & Fragrances segment operating income was $28.8 million and $27.6 million for the three months ended March 31, 2017 and 2016, respectively, an increase of 4.1%. Foreign exchange rates reduced segment operating income by 1.1%. The higher segment operating income was due to higher operating income in North America ($0.4 million) and Europe ($0.8 million). The higher operating income in North America was primarily due to higher selling prices ($3.9 million), lower manufacturing and other costs ($0.7 million), and lower raw material costs ($0.5 million) partially offset by unfavorable volume and mix ($4.2 million). The higher operating income in Europe was primarily due to the divestiture ($1.2 million) higher selling prices ($0.8 million), and lower raw material costs ($0.4 million) partially offset by higher manufacturing and other costs ($1.3 million) and volume and mix ($0.3 million). Segment operating income as a percent of revenue was 15.4% in the current quarter and 13.9% in the prior year’s comparable quarter.

Color
Segment revenue for the Color segment was $134.1 million and $126.5 million for the three months ended March 31, 2017 and 2016, respectively, an increase of 6.0%. Foreign exchange rates reduced segment revenue by 0.8%. The higher segment revenue was due to higher sales of non-food colors ($6.1 million) and food and beverage colors ($1.4 million). The higher sales of non-food colors were primarily due to higher volumes ($6.4 million), primarily in cosmetic colors, partially offset by lower selling prices ($0.2 million) and the impact of unfavorable exchange rates ($0.1 million). The higher sales of food and beverage colors was primarily a result of higher volumes ($1.3 million) and higher selling prices ($1.2 million) partially offset by the impact of unfavorable exchange rates ($1.0 million).

Segment operating income for the Color segment was $30.2 million and $28.1 million for the three months ended March 31, 2017 and 2016, respectively, an increase of 7.5%. Foreign exchange rates reduced segment operating income by 1.5%. The higher segment operating income was primarily due to higher profit for non-food colors ($1.5 million) and food and beverage colors ($0.6 million). The higher operating income for non-food colors is primarily a result of volume and product mix ($3.4 million) partially offset by higher manufacturing and other costs ($1.1 million), higher raw material costs ($0.6 million), lower selling prices ($0.2 million), and the unfavorable impact of foreign exchange rates ($0.2 million). The higher operating income for food and beverage colors is primarily a result of higher selling prices ($1.2 million) and lower manufacturing and other costs ($0.6 million) partially offset by product mix ($0.9 million) and the unfavorable impact of exchange rates ($0.3 million). Segment operating income as a percent of revenue was 22.5% in the current quarter and 22.2% in the prior year’s comparable quarter.
 
17

Asia Pacific
Segment revenue for the Asia Pacific segment was $29.6 million and $28.2 million for the three months ended March 31, 2017 and 2016, respectively, an increase of 5.1%. Foreign exchange rates increased segment revenue by 1.0%. The higher revenue was due to higher volumes ($0.8 million), selling prices ($0.3 million) and the impact of favorable foreign exchange rates ($0.3 million).

Segment operating income for the Asia Pacific segment was $5.2 million and $5.6 million for the three months ended March 31, 2017 and 2016, respectively, a decrease of 8.0%.  Foreign exchange rates increased segment operating income by 0.8%. The decrease in segment operating income was primarily a result of higher manufacturing and other costs ($1.2 million), which was a result of order timing, partially offset by volume and mix ($0.4 million) and higher selling prices ($0.3 million). Segment operating income as a percent of revenue was 17.4% in the current quarter and 19.8% in the prior year’s comparable quarter.

Corporate & Other
The Corporate & Other operating loss was $40.1 million and $13.8 million for the three months ended March 31, 2017and 2016, respectively. The higher operating loss was primarily a result of higher restructuring and other costs ($27.9 million) partially offset by lower outside services ($1.1 million). The higher restructuring and other costs principally relate to the non-cash losses from the divestitures of a European savory ingredient facility and the Company's European Natural Ingredients business. Restructuring and other costs were $31.3 million and $3.3 million for the three months ended March 31, 2017 and 2016, respectively.

LIQUIDITY AND FINANCIAL CONDITION

Financial Condition
The Company’s financial position remains strong. The Company entered into agreements on May 3, 2017, to issue new fixed rate notes as well as to increase its existing credit facility term loan and extend the maturity date of its existing revolver (refer to Note 14, Subsequent Events included in Part I, Item I of this report). Proceeds were used to refinance existing debt. The Company is in compliance with its loan covenants calculated in accordance with applicable agreements as of March 31, 2017. 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 $37.6 million and $46.2 million for the three months ended March 31, 2017 and 2016, respectively. The lower cash provided by operating activities is primarily due to a higher use of working capital in the current period.

Cash Flows from Investing Activities
Net cash provided from investing activities was $2.4 million for the three months ended March 31, 2017, compared to net cash used in investing activities of $14.1 million for the three months ended March 31, 2016. Capital expenditures were $10.1 million and $14.1 million for the three months ended March 31, 2017 and 2016, respectively. During the three months ended March 31, 2017, the Company sold two different businesses for $12.5 million in proceeds.

Cash Flows from Financing Activities
Net cash used in financing activities was $39.8 million and $21.6 million for the three months ended March 31, 2017 and 2016, respectively. The Company repurchased $12.4 million and $17.9 million of Company stock for the three months ended March 31, 2017 and 2016, respectively. Net debt decreased in the first three months of 2017 by $13.7 million and increased by $8.3 million in the first quarter of 2016. For purposes of the cash flow statement, net changes in debt exclude the impact of foreign exchange rates. Dividends of $13.3 million and $12.2 million were paid during the three months ended March 31, 2017 and 2016, respectively. Dividends paid were 30 cents per share and 27 cents per share in the first three months of 2017 and 2016, respectively.

CONTRACTUAL OBLIGATIONS

There have been no material changes in the Company’s contractual obligations during the quarter ended March 31, 2017.  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, 2016.

OFF-BALANCE SHEET ARRANGEMENTS

In 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 ASC Topic 860, Transfers and Servicing, and removed from the Company’s consolidated balance sheet (refer to Note 10, Accounts Receivable Securitization, included in Part I, Item I of this report).
 
18

CRITICAL ACCOUNTING POLICIES

There have been no material changes in the Company’s critical accounting policies during the quarter ended March 31, 2017.  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, 2016.
 
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 March 31, 2017.  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, 2016.

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.

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 March 31, 2017, 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2016; 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.
 
19

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.

As of May 1, 2017, the parties finalized a settlement, which is pending Court approval. The Company previously accrued $0.6 million for the settlement of this matter, which it will pay to claimants after the settlement is approved by the Court.

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, 2016.
 
20

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 first quarter of 2017:
 
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
 
                         
January 1 to January 31, 2017
   
-
   
$
-
     
-
     
1,424,760
 
February 1 to February 28, 2017
   
69,700
     
79.30
     
69,700
     
1,355,060
 
March 1 to March 31, 2017
   
86,149
     
79.38
     
86,149
     
1,268,911
 
                                 
Total
   
155,849
   
$
79.34
     
155,849
         
 
  (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.
 
21

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:
May 8, 2017
By:
 /s/  John J. Manning
 
     
John J. Manning, Vice President,
 
     
General Counsel & Secretary
 
 
Date:
May 8, 2017
By:
 /s/  Stephen J. Rolfs
 
     
Stephen J. Rolfs, Senior Vice President & Chief Financial Officer
 
 
22

SENSIENT TECHNOLOGIES CORPORATION
EXHIBIT INDEX
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 2017
 
Exhibit
Description
 
Incorporated by Reference From
 
Filed Herewith
           
4.1
 
Note Purchase Agreement dated as of May 3, 2017
 
 
Exhibit 10.2 to Current Report on Form 8-K dated May 5, 2017 (Commission File No. 1-7626)
   
           
4.2
 
Second Amendment dated as of May 3, 2017 to Note Purchase Agreement dated as of March 22, 2011
 
 
Exhibit 10.5 to Current Report on Form 8-K dated May 5, 2017 (Commission File No. 1-7626)
   
           
4.3
 
Second Amendment dated as of May 3, 2017 to Note Purchase Agreement dated as of April 5, 2013
 
Exhibit 10.4 to Current Report on Form 8-K dated May 5, 2017 (Commission File No. 1-7626)
   
           
4.4
 
First Amendment dated as of May 3, 2017 to Note Purchase Agreement dated as of November 6, 2015
 
Exhibit 10.3 to Current Report on Form 8-K dated May 5, 2017 (Commission File No. 1-7626)
   
           
10.1
 
Second Amended and Restated Credit Agreement dated as of May 3, 2017
 
Exhibit 10.1 to Current Report on Form 8-K dated May 5, 2017 (Commission File No. 1-7626)
   
           
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
           
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
 
 
23

EX-31 2 ex31.htm EXHIBIT 31

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

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

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

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

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

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

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

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

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

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

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

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

Date:      May 8, 2017
 
   
/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:       May 8, 2017
 
   
/s/ Stephen J. Rolfs
 
Stephen J. Rolfs, Senior Vice President &
 
Chief Financial Officer
 
 
 

EX-32 3 ex32.htm EXHIBIT 32

EXHIBIT 32
 
CERTIFICATION
Pursuant to 18 United States Code § 1350
 
The undersigned hereby certifies that the Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2017, 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:
May 8, 2017
 

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 March 31, 2017, 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:
May 8, 2017
 

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

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vertical-align: top; width: 18pt; align: right;">11.</td><td style="vertical-align: top; text-align: justify; width: auto;"><div style="font-size: 10pt; font-family: 'Times New Roman';">Restructuring</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">The Company incurred restructuring costs in both continuing and discontinued operations. The discussion in this note relates to the combination of both continuing and discontinued operations unless otherwise noted. Restructuring costs related to discontinued operations are recorded in discontinued operations within the Company&#8217;s Consolidated Condensed Statements of Earnings and are discussed in Note 12, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Discontinued Operations</font>, in more detail.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In March 2014, the Company announced that it was initiating a restructuring plan (&#8220;2014 Restructuring Plan&#8221; or &#8220;Plan&#8221;) to eliminate underperforming operations, consolidate manufacturing facilities, and improve efficiencies within the Company. The Company determined that it had redundant manufacturing capabilities in both North America and Europe and that it could lower costs and operate more efficiently by consolidating into fewer facilities. Eight facilities were identified for consolidation in the Flavors &amp; Fragrances segment, four in North America and four in Europe. Closures have been announced in Indianapolis, Indiana, United States; Cornwall, Mississauga and Halton Hills, Canada; Bremen, Germany; and Milan, Italy. The Company also identified its two European Natural Ingredients facilities to be sold as part of the Plan, as discussed below. In addition, the Company discontinued one of the businesses in the Color segment, located near Leipzig, Germany, because it did not fit with the Company&#8217;s long-term strategic plan and it had generated losses for several years. In 2015, the Company identified additional opportunities to consolidate manufacturing operations at one of the Color segment&#8217;s facilities in Europe and eliminate additional positions in the European Flavors &amp; Fragrances businesses. The Company has operationally completed all of the above mentioned activities and closures with the exception of the closure of the Indianapolis facility, which is anticipated to be closed in the second quarter of 2017.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">Based on this Plan, the Company determined that certain long-lived assets associated with the underperforming operations were impaired. The Company reduced the carrying amounts of these assets to their aggregate respective fair values, which were determined based on independent market valuations. The fair values of the remaining long-lived assets are estimated to be approximately $14 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 $0.5 million during each of the three months ended March 31, 2017 and 2016. Since initiating the Plan, the Company has recorded $87.2 million of long-lived asset impairments, including the impairment charges and accelerated depreciation. 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The Company expects to incur approximately $7 million of additional restructuring costs by the end of 2017.&#160; The increase in the 2017 expected costs are primarily due to the delay in closing the Indianapolis facility, which is now anticipated to be closed in the second quarter of 2017.</div><div>&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">The closure and sale of these operations have significantly lowered the Company&#8217;s operating costs over the last few years and anticipates additional savings in 2018. 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 March 31, 2017. During the three months ended March 31, 2017, the Company realized a de minimis amount of savings and expects to realize approximately $1 million of additional savings by the end of 2017 and approximately $3 to $4 million in 2018. Expected savings have shifted from 2017 to 2018 primarily due to the delay in closing the Indianapolis facility. 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margin-left: 7.2pt; text-indent: -7.2pt;">Balance as of December 31, 2016</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(85</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; 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text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">341,397</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; 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font-family: 'Times New Roman';">154</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">9,180</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 4px; width: 30%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Total revenue</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; 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text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">350,577</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; width: 30%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; width: 30%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Operating income (loss)</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; 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padding-bottom: 2px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">4,811</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">4,811</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 4px; width: 30%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Earnings (loss) before income taxes</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">28,770</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">30,217</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">5,150</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(44,911</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">19,226</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; 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width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(44,911</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; 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text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; width: 30%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: normal; font-style: normal; text-align: left; margin-left: 7.2pt; background-color: #cceeff; text-indent: -7.2pt;"><u>Three months ended March 31, 2016:</u></div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">123,164</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">28,167</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; 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padding-bottom: 2px; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">10,705</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 4px; width: 30%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Total revenue</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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font-family: 'Times New Roman';">42,719</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr></table><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">Beginning in the first quarter of 2017, the results of operations for certain of the Company&#8217;s cosmetic and fragrance businesses in the Asia Pacific segment are now reported in the Color segment and Flavors &amp; Fragrances segment, respectively. The results for 2016 have been restated to reflect these changes.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">The Company evaluates performance based on operating income of the respective segments before restructuring and other costs, interest expense and income taxes. The 2017 and 2016 restructuring and other costs related to continuing operations are reported in Corporate &amp; Other. See Note 11, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Restructuring</font>, for more information on the Company&#8217;s restructuring activities. The 2017 other costs pertain to the costs associated with the Company&#8217;s divestiture of a facility and certain related business lines within the Flavors &amp; Fragrances business in Strasbourg, France; see Note 13, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Divestiture</font>.</div></div> 96908000 68324000 131000 -4485000 0 0 -4485000 131000 2018000 1930000 20281000 20578000 <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman'; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; width: 18pt; align: right;">1.</td><td style="vertical-align: top; text-align: justify; width: auto;"><div style="font-size: 10pt; font-family: 'Times New Roman';">Accounting Policies</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In the opinion of Sensient Technologies Corporation (the &#8220;Company&#8221;), 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 March 31, 2017, and the results of operations, comprehensive income, and cash flows for the three months ended March 31, 2017 and 2016.&#160; The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">The preparation of financial statements in conformity with U.S. generally accepted accounting principles (&#8220;GAAP&#8221;) 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.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In July 2015, the Financial Accounting Standards Board (FASB) affirmed its proposed one-year deferral of the effective date for Accounting Standards Update (ASU) No. 2014-09, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Revenue from Contracts with Customers</font>. Under this proposal, the requirements of the new standard are effective for interim and annual periods beginning after December 15, 2017. The proposal also permits entities to adopt the standard for interim and annual reporting periods beginning after December 15, 2016. The Company has been reviewing the impact of this standard on the Company&#8217;s financial statements. The Company currently recognizes revenue (net of estimated discounts, allowances and returns) when title to goods passes, the customer is obliged to pay the Company, and the Company has no remaining obligations.&#160; Such recognition typically corresponds with the shipment of goods. The Company created a project team within its Corporate Finance Department,&#160;in 2016, to review&#160;the potential impact that this ASU may have on the Company.&#160;The Company's revenue recognition project team has been gathering data, including issuing a detailed revenue recognition questionnaire designed to highlight instances of variable consideration, and reviewing existing contracts and other relevant documents across all of the Company's segments.&#160;In the first quarter of 2017, the Company finalized a detailed project plan and&#160;distributed a second revenue recognition questionnaire designed to examine potential instances of variable consideration in greater detail, and will review and document the results of this questionnaire by the end of the third quarter of 2017. The Company plans to incorporate this new standard using the Full Retrospective transition method. Based on procedures to-date, the Company has not identified any areas that will result in significant changes to the timing of recognition or measurement of revenue, but the Company will continue to evaluate the effects of this standard on the Company&#8217;s Consolidated Financial Statements.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In July 2015, the FASB issued ASU No. 2015-11, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Simplifying the Measurement of Inventory</font>. Under this guidance, inventory that is accounted for using first-in-first-out, or average cost method, shall be measured at the lower of cost or net realizable value, as opposed to the lower of cost or market measurement under current guidance. This guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this standard in first quarter of 2017 and it did not have a material effect on its consolidated financial statements.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In February 2016, the FASB issued ASU No. 2016-02, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Leases</font>, which requires lessees to recognize the lease assets and lease liabilities that arise from leases on the balance sheet and to disclose qualitative and quantitative information about lease transactions. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the expected impact of this standard.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In December 2016, the FASB issued ASU 2016-16, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory</font>. Under current GAAP, the tax effects of intra-entity asset transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company is currently evaluating the impact of this standard.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">In March 2017, the FASB issued ASU No. 2017-07, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost</font>. This ASU requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as the other employee compensation costs arising from services rendered during the period. The other components of net benefit cost are to be presented outside of any subtotal of operating income. This ASU is effective for fiscal years and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluation the expected impact of this standard.</div><div>&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">Please refer to the notes in the Company&#8217;s annual consolidated financial statements for the year ended December 31, 2016, for additional details of the Company&#8217;s financial condition and a description of the Company&#8217;s accounting policies, which have been continued without change.</div></div> 849835000 835741000 -210843000 -2537000 -213465000 -85000 -2565000 222000 -187043000 -189386000 <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman'; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; width: 18pt; align: right;">14.</td><td style="vertical-align: top; text-align: justify; width: auto;"><div style="font-size: 10pt; font-family: 'Times New Roman';">Subsequent Events</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">On May 3, 2017, the Company issued three new fixed-rate notes consisting of a 7-year note of &#8364;50 million (approximately $53 million) at a fixed rate of 1.27%; a 10-year note of &#8364;40 million (approximately $43 million) at a fixed rate of 1.71%; and a 7-year note of $27 million at a fixed rate of 3.65%. Also, on May 3, 2017, the Company extended the maturity date of its revolver from November 2020 to May 2022, and increased its credit facility term loan from $115 million to $145 million. Proceeds were used to refinance existing debt.</div></div> <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman'; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; width: 18pt; align: right;">10.</td><td style="vertical-align: top; text-align: justify; width: auto;"><div style="font-size: 10pt; font-family: 'Times New Roman';">Accounts Receivable Securitization</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">During October 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 ASC Topic 860, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Transfers and Servicing</font>. 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Commitments and Contingencies Disclosure [Text Block] Commitments and Contingencies [Abstract] Dividends declared per common share (in dollars per share) Common stock Common Stock, Value, Issued Retirement Plans [Abstract] Accumulated Other Comprehensive Income Comprehensive Income (Loss) Note [Text Block] Comprehensive Income Comprehensive Income (Loss), Net of Tax, Attributable to Parent Consolidation Items [Axis] Consolidation Items [Domain] Construction in progress Corporate and Other [Member] Corporate & Other [Member] Cost of products sold Cost of Products Sold [Member] Cost of Sales [Member] Foreign Currency Denominated Debt, Net Investment Hedging [Member] Debt [Member] Debt instrument term Debt Instrument [Axis] Debt instrument amount Debt Instrument, Name [Domain] Debt instrument interest rate DEFERRED TAX ASSETS DEFERRED INCOME TAXES Deferred Tax Liabilities, Net, Noncurrent Amortization of actuarial (gain) loss Defined Benefit Plan, Amortization of Gains (Losses) Defined 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Tax Discontinued Operations [Abstract] Revenue Disposal Group, Including Discontinued Operation, Revenue Certain Consolidated Condensed Statements of Earnings information for discontinued operations [Abstract] Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] Loss on divestiture of businesses Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal Assets held for sale of land, building and equipment Discontinued Operations Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] Europe [Member] Europe [Member] Basic: Earnings Per Share, Basic [Abstract] Diluted: Earnings Per Share, Diluted [Abstract] Earnings per common share (in dollars per share) Earnings Per Share, Basic Earnings per common share (in dollars per share) Earnings Per Share, Diluted Earnings per common share: Effect of exchange rate changes on cash and cash equivalents Effective income tax rates for continuing operations Accrued salaries, wages and withholdings from employees Employee-related Liabilities, Current Employee Separations [Member] Employee Severance [Member] Equity Component [Domain] Fair Value [Member] Estimate of Fair Value Measurement [Member] Fair Value, Hierarchy [Axis] Fair Value [Abstract] Measurement Basis [Axis] Measurement Basis [Axis] Fair Value Measurements, Recurring and Nonrecurring [Table] Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] Fair Value Hierarchy [Domain] Fair Value Fair Value Disclosures [Text Block] Fair Value Measurement [Domain] Level 1 [Member] Level 2 [Member] Fair Value, Inputs, Level 2 [Member] INTANGIBLE ASSETS, NET Finite-Lived Intangible Assets, Net Forward exchange contracts, liability Forward exchange contracts, assets Foreign Currency Contract, Asset, Fair Value Disclosure Forward Exchange Contracts [Member] Foreign Exchange Forward [Member] Loss on sale of business Net loss on assets Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property GOODWILL Goodwill Hedging Relationship [Domain] Intersegment Revenue [Member] Intersegment Eliminations [Member] Impairment charges Long-lived asset impairment Impairment of Long-Lived Assets Held-for-use Income Taxes [Abstract] Earnings from continuing operations Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent Discontinued operations (in dollars per share) Continuing operations (in dollars per share) Income (Loss) from Continuing Operations, Per Basic Share Income Statement Location [Axis] Earnings before income taxes Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest Income Statement Location [Domain] Discontinued operations (in dollars per share) Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share Continuing operations (in dollars per share) Income Taxes Income Tax Disclosure [Text Block] Income taxes Income Tax Expense (Benefit) CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract] Loss from discontinued operations, net of tax Loss from discontinued operations, net of tax Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent Deferred income taxes Increase (Decrease) in Deferred Income Taxes Changes in operating assets and liabilities Increase (Decrease) in Operating Capital Interest expense Interest Expense Write-down of inventory Inventory Write-down Inventories Inventory, Net Inventories, including finished and in-process products Inventories Inventory Disclosure [Text Block] Inventories [Abstract] Raw materials and supplies Investments Land Land Liabilities held for sale TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities and Equity LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities and Equity [Abstract] TOTAL CURRENT LIABILITIES Liabilities, Current CURRENT LIABILITIES: Liabilities, Current [Abstract] 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reclassifications Operating Segments [Member] Operating income (loss) Operating income Other [Member] OTHER ASSETS Other Assets, Noncurrent OTHER LIABILITIES Other Liabilities, Noncurrent Other restructuring costs Other Restructuring Costs Other accrued expenses Other Accrued Liabilities, Current Other investing activity Payments for (Proceeds from) Other Investing Activities Cash spent Payments for Restructuring Purchase of treasury stock Payments for Repurchase of Common Stock Dividends paid Payments of Ordinary Dividends, Common Stock Acquisition of property, plant and equipment Payments to Acquire Property, Plant, and Equipment Retirement Plans Pension and Other Postretirement Benefits Disclosure [Text Block] Defined Benefit Plan [Member] Portion at Fair Value Measurement [Member] Portion at Fair Value Measurement [Member] Prepaid expenses and other current assets Other financing activity Proceeds from additional borrowings Proceeds from divestiture of businesses Proceeds from the sale of facility and related business lines Proceeds from sale of assets Outside professional fees related to anticipated divestiture Professional Fees PROPERTY, PLANT AND EQUIPMENT: Property, Plant and Equipment, Net [Abstract] Property, plant and equipment, net Property, Plant and Equipment, Net Property, plant and equipment, gross Property, Plant and Equipment, Gross Range [Axis] Range [Domain] Amounts reclassified from OCI Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent Debt payments Repayments of Debt Position reduction due to restructuring Number of positions eliminated due to restructuring Translation adjustment Restructuring Reserve, Foreign Currency Translation Gain (Loss) Total restructuring Restructuring Charges Restructuring [Abstract] Balance as of beginning of period Balance as of end of period Restructuring Reserve Total restructuring costs incurred to date Restructuring Plan [Domain] Restructuring Plan [Axis] Detail of the restructuring costs [Abstract] Restructuring and Related Activities [Abstract] Summary of accrual for restructuring and other charges [Roll Forward] Restructuring Reserve [Roll Forward] Restructuring Type [Axis] Restructuring Cost and Reserve [Line Items] Restructuring Future restructuring costs, 2017 Restructuring and Related Cost, Expected Cost Remaining Earnings reinvested in the business Retained Earnings (Accumulated Deficit) Total revenue Revenue from external customers Revenue Sales Revenue, Goods, Net Summary of Changes in OCI Components of Annual Benefit Cost Certain Consolidated Condensed Statements of Earnings Information for Discontinued Operations Disposal Groups, Including Discontinued Operations [Table Text Block] Schedule of Defined Benefit Plans Disclosures [Table] Schedule of Long Lived Assets Held-for-sale [Table] Segment Information Schedule of Restructuring and Related Costs [Table] Schedule of Segment Reporting Information, by Segment [Table] Summary of Restructuring Costs Restructuring and Related Costs [Table Text Block] Summary of Accrual for Restructuring and Other Charges Schedule of Restructuring Reserve by Type of Cost [Table Text Block] Segment Information Segment Reporting Disclosure [Text Block] Segments [Domain] Segment [Domain] Segment Information [Abstract] Segment Reporting Information [Line Items] Geographical [Domain] Continuing Operations [Member] Discontinued Operations [Member] Operating Activities [Domain] Selling and administrative expenses Selling, General and Administrative Expenses [Member] Selling & Administrative [Member] Employee separation Severance Costs Share-based compensation Short-term borrowings Short-term Debt Accounting Policies Significant Accounting Policies [Text Block] Equity Components [Axis] CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) [Abstract] CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] Operating Activities [Axis] CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) [Abstract] Segments [Axis] Geographical [Axis] SHAREHOLDERS' EQUITY: Stockholders' Equity Attributable to Parent [Abstract] Shareholders' Equity [Abstract] TOTAL SHAREHOLDERS' EQUITY Beginning balance Ending balance Stockholders' Equity Attributable to Parent Subsequent Events [Abstract] Subsequent Events [Member] Subsequent Events Subsequent Events [Text Block] Subsequent Event Type [Axis] Subsequent Event [Line Items] Subsequent Event [Table] Subsequent Event Type [Domain] Accounts Receivable Securitization Accounts Receivable Securitization [Abstract] Impact of foreign exchange rates on debt instruments recorded in Other Comprehensive Income Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) Translation adjustment functional to reporting currency, net of tax Translation Adjustment Functional to Reporting Currency, Net of Tax Shareholders' Equity Common stock repurchased during the period (in shares) Treasury stock, at cost Treasury Stock, Value Type of Restructuring [Domain] Diluted (in shares) Weighted Average Number of Shares Outstanding, Diluted Weighted average number of shares outstanding: Weighted Average Number of Shares Outstanding, Diluted [Abstract] Basic (in shares) Weighted Average Number of Shares Outstanding, Basic France [Member] FRANCE Information on the flavors and fragrances segment. Flavors And Fragrances [Member] Flavors & Fragrances [Member] Information on the color segment. Color [Member] Color [Member] Divestiture [Abstract] The Disclosure about carrying value of the assets and liabilities comprising the disposal group. Divestiture [Text Block] Divestiture Amount of obligations incurred for noncurrent employer-related costs. Employee Related Liabilities Non Current ACCRUED EMPLOYEE AND RETIREE BENEFITS Document and Entity Information [Abstract] Equity impact of the value of stock that has been repurchased during the period and are held in treasury. Treasury Stock Value Acquired Common stock repurchased during the period, value Long-lived assets related to the divesture other than financial instruments, long-term customer relationships of a financial institution, mortgage and other servicing rights, deferred policy acquisition costs, and deferred tax assets. Long-Lived Assets Divesture Long-lived assets Refers to expected amount of write-downs for impairments recognized when long-lived assets are sold. Expected Impairment Of Long Lived Assets To Be Sold Non-cash loss on assets held for sale The business within the flavors and fragrances segment. European Natural Ingredients Business [Member] European Natural Ingredients Business [Member] Derivative instruments and hedging activity for the period [Abstract] Number of months for contracts to mature. Number of months for contracts to mature Number of months for contracts to mature Bond that takes priority over other debt securities sold by the issuer. In the event the issuer goes bankrupt, senior debt holders receive priority for (must receive) repayment prior to (relative to) junior and unsecured (general) creditors. Senior Notes Two [Member] 3.65% Senior Note [Member] Bond that takes priority over other debt securities sold by the issuer. In the event the issuer goes bankrupt, senior debt holders receive priority for (must receive) repayment prior to (relative to) junior and unsecured (general) creditors. Senior Notes One [Member] 1.71% Senior Note [Member] Refers to number of fixed notes issued by the entity. Number of Fixed Notes Number of fixed-rate notes Bond that takes priority over other debt securities sold by the issuer. In the event the issuer goes bankrupt, senior debt holders receive priority for (must receive) repayment prior to (relative to) junior and unsecured (general) creditors. Senior Notes Three [Member] 1.27% Senior Note [Member] Represents the current expected annual cost reductions after full implementation of the planned restructuring. Current Estimate For Annual Cost Reductions Annual cost of savings Represents the initial expected annual cost reductions after full implementation of the planned restructuring. Initial Estimate For Annual Cost Reductions Estimated cost savings due to restructuring Represents the facilities identified for closure. Facilities identified for closure Facilities identified for closure Represents the facilities identified for consolidation in segments. Facilities identified for consolidation Amount of expected overall incremental savings against earnings in next fiscal year following latest fiscal year for the specified restructuring cost. Expected Incremental Saving, Next Twelve Months Expected incremental savings in 2017 Amount of expected overall incremental savings against earnings in second fiscal year following latest fiscal year for the specified restructuring cost. Expected Incremental Saving, Year Two Expected incremental savings in 2018 Refers to cost of savings which as been realized in portions. Realized cost of savings Amount of costs incurred for the long lived asset impairments. Long Lived Asset Impairments Recorded Long-lived asset impairment Refers to expected incremental savings realized during period. Expected Incremental Saving Realized Expected incremental saving realized Restructuring Cost By Segment [Abstract] Restructuring cost by segment [Abstract] Amount of expenses associated with exit or disposal activities pursuant to an authorized plan. Restructuring Expense Activity Expense activity Amount of costs incurred to date for the long lived asset impairments. Long lived asset impairments recorded to date Long lived asset impairments recorded to date Fair value portion of assets classified as held for use. Assets Held For Use Long Lived Fair Value Disclosure Estimated fair values of the remaining long-lived assets The 2014 restructuring program. 2014 Restructuring plan [Member] 2014 Restructuring Plan [Member] Refers to number of facility for sale. Number of Facility for Sale Number of facilities for sale Tabular disclosure of restructuring and related costs by segment including the description of the restructuring costs, such as the expected cost; the costs incurred during the period; the cumulative costs incurred as of the balance sheet date; the income statement caption within which the restructuring charges recognized for the period are included; and changes to an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost. Schedule Of Restructuring And Related Costs By Segment [Text Block] Restructuring Cost by Segment Refers to the number of employees who were allegedly wrongfully terminated by the company. Number of employees terminated Refers to the number of additional potentially aggrieved former employees not listed in the complaint. Number of additional potentially aggrieved former employees Refers to employees as additional claimants for whom the Agency seeks relief. Number of additional claimants Number of additional claimants Estimated amount of judgment or settlement awarded to (against) the entity in respect of litigation. Estimated Litigation Settlement Amount Amount accrued for settlement Information on the legal action with Sensient Natural Ingredients LLC. Sensient Natural Ingredients LLC [Member] Accounts receivable sold via securitization program. Accounts Receivable Sold Via Securitization Program Accounts receivable securitization program The amount of fair value of the deferred purchase price receivable. Fair value of Deferred Purchase Price Receivable Fair value of the deferred purchase price receivable The amount of proceeds owed to the reporting entity by a third party for the sale of trade receivables. Proceeds Received By The Company For The Sale Of Trade Receivables From A Third Party Proceeds from accounts receivable securitization program EX-101.PRE 9 sxt-20170331_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 10 R1.htm IDEA: XBRL DOCUMENT v3.7.0.1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2017
Apr. 30, 2017
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   44,258,871
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q1  
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2017  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.7.0.1
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract]    
Revenue $ 341,397 $ 342,468
Cost of products sold 220,452 226,625
Selling and administrative expenses 96,908 68,324
Operating income 24,037 47,519
Interest expense 4,811 4,800
Earnings before income taxes 19,226 42,719
Income taxes 6,034 11,526
Earnings from continuing operations 13,192 31,193
Loss from discontinued operations, net of tax 0 (22)
Net earnings $ 13,192 $ 31,171
Weighted average number of shares outstanding:    
Basic (in shares) 44,202 44,718
Diluted (in shares) 44,479 44,981
Basic:    
Continuing operations (in dollars per share) $ 0.30 $ 0.70
Discontinued operations (in dollars per share) 0 0
Earnings per common share (in dollars per share) 0.30 0.70
Diluted:    
Continuing operations (in dollars per share) 0.30 0.69
Discontinued operations (in dollars per share) 0 0
Earnings per common share (in dollars per share) 0.30 0.69
Dividends declared per common share (in dollars per share) $ 0.30 $ 0.27
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.7.0.1
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]    
Comprehensive Income $ 37,271 $ 46,750
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.7.0.1
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
CURRENT ASSETS:    
Cash and cash equivalents $ 29,109 $ 25,865
Trade accounts receivable, net 202,343 194,509
Inventories 410,067 404,320
Prepaid expenses and other current assets 51,422 50,974
Assets held for sale 6,788 41,393
TOTAL CURRENT ASSETS 699,729 717,061
OTHER ASSETS 70,298 70,462
DEFERRED TAX ASSETS 6,787 12,120
INTANGIBLE ASSETS, NET 7,900 8,126
GOODWILL 387,906 383,568
PROPERTY, PLANT AND EQUIPMENT:    
Land 32,925 33,015
Buildings 283,677 265,157
Machinery and equipment 686,858 643,869
Construction in progress 35,218 79,981
Property, plant and equipment, gross 1,038,678 1,022,022
Less accumulated depreciation (560,096) (545,499)
Property, plant and equipment, net 478,582 476,523
TOTAL ASSETS 1,651,202 1,667,860
CURRENT LIABILITIES:    
Trade accounts payable 81,260 92,450
Accrued salaries, wages and withholdings from employees 19,606 26,502
Other accrued expenses 55,774 54,752
Income taxes 14,163 14,080
Short-term borrowings 20,281 20,578
Liabilities held for sale 0 5,313
TOTAL CURRENT LIABILITIES 191,084 213,675
DEFERRED INCOME TAXES 11,375 9,650
OTHER LIABILITIES 6,278 6,103
ACCRUED EMPLOYEE AND RETIREE BENEFITS 20,430 19,911
LONG-TERM DEBT 572,200 582,780
SHAREHOLDERS' EQUITY:    
Common stock 5,396 5,396
Additional paid-in capital 108,593 107,686
Earnings reinvested in the business 1,378,809 1,378,923
Treasury stock, at cost (453,577) (442,799)
Accumulated other comprehensive loss (189,386) (213,465)
TOTAL SHAREHOLDERS' EQUITY 849,835 835,741
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,651,202 $ 1,667,860
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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows from operating activities:    
Net earnings $ 13,192 $ 31,171
Adjustments to arrive at net cash provided by operating activities:    
Depreciation and amortization 12,141 11,612
Share-based compensation 1,930 2,018
Net loss on assets 386 458
Loss on divestiture of businesses 31,882 0
Deferred income taxes 2,202 (1,349)
Changes in operating assets and liabilities (24,167) 2,263
Net cash provided by operating activities 37,566 46,173
Cash Flows from Investing Activities:    
Acquisition of property, plant and equipment (10,069) (14,120)
Proceeds from sale of assets 105 37
Proceeds from divestiture of businesses 12,457 0
Other investing activity (63) (18)
Net cash used in investing activities 2,430 (14,101)
Cash flows from financing activities:    
Proceeds from additional borrowings 5,657 95,562
Debt payments (19,350) (87,284)
Purchase of treasury stock (12,365) (17,920)
Dividends paid (13,306) (12,163)
Other financing activity (477) 161
Net cash used in financing activities (39,841) (21,644)
Effect of exchange rate changes on cash and cash equivalents 3,089 2,278
Net increase in cash and cash equivalents 3,244 12,706
Cash and cash equivalents at beginning of period 25,865 11,997
Cash and cash equivalents at end of period $ 29,109 $ 24,703
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.7.0.1
Accounting Policies
3 Months Ended
Mar. 31, 2017
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 March 31, 2017, and the results of operations, comprehensive income, and cash flows for the three months ended March 31, 2017 and 2016.  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 July 2015, the Financial Accounting Standards Board (FASB) affirmed its proposed one-year deferral of the effective date for Accounting Standards Update (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 has been reviewing the impact of this standard on the Company’s financial statements. The Company currently recognizes revenue (net of estimated discounts, allowances and returns) when title to goods passes, the customer is obliged to pay the Company, and the Company has no remaining obligations.  Such recognition typically corresponds with the shipment of goods. The Company created a project team within its Corporate Finance Department, in 2016, to review the potential impact that this ASU may have on the Company. The Company's revenue recognition project team has been gathering data, including issuing a detailed revenue recognition questionnaire designed to highlight instances of variable consideration, and reviewing existing contracts and other relevant documents across all of the Company's segments. In the first quarter of 2017, the Company finalized a detailed project plan and distributed a second revenue recognition questionnaire designed to examine potential instances of variable consideration in greater detail, and will review and document the results of this questionnaire by the end of the third quarter of 2017. The Company plans to incorporate this new standard using the Full Retrospective transition method. Based on procedures to-date, the Company has not identified any areas that will result in significant changes to the timing of recognition or measurement of revenue, but the Company will continue to evaluate the effects of this standard on the Company’s Consolidated Financial Statements.

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. The Company adopted this standard in first quarter of 2017 and it did not have a material effect on its consolidated financial statements.

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 December 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory. Under current GAAP, the tax effects of intra-entity asset transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company is currently evaluating the impact of this standard.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as the other employee compensation costs arising from services rendered during the period. The other components of net benefit cost are to be presented outside of any subtotal of operating income. This ASU is effective for fiscal years and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluation the expected impact of this standard.
 
Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2016, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change.
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.7.0.1
Fair Value
3 Months Ended
Mar. 31, 2017
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 March 31, 2017, and December 31, 2016, 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 an asset of $0.2 million as of March 31, 2017, and a liability of $0.2 million as of December 31, 2016. The fair value of the investments based on March 31, 2017, and December 31, 2016, market quotes (Level 1 inputs) was an asset of $1.5 million and $1.8 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 March 31, 2017. 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 March 31, 2017, was $572.2 million. The fair value of the long-term debt at March 31, 2017, was $587.0 million.
XML 17 R8.htm IDEA: XBRL DOCUMENT v3.7.0.1
Segment Information
3 Months Ended
Mar. 31, 2017
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 March 31, 2017:
               
Revenue from external customers
 
$
181,075
  
$
130,840
  
$
29,482
  
$
-
  
$
341,397
 
Intersegment revenue
  
5,800
   
3,226
   
154
   
-
   
9,180
 
Total revenue
 
$
186,875
  
$
134,066
  
$
29,636
  
$
-
  
$
350,577
 
                     
Operating income (loss)
 
$
28,770
  
$
30,217
  
$
5,150
  
$
(40,100
)
 
$
24,037
 
Interest expense
  
-
   
-
   
-
   
4,811
   
4,811
 
Earnings (loss) before income taxes
 
$
28,770
  
$
30,217
  
$
5,150
  
$
(44,911
)
 
$
19,226
 
                     
Three months ended March 31, 2016:
                    
Revenue from external customers
 
$
191,137
  
$
123,164
  
$
28,167
  
$
-
  
$
342,468
 
Intersegment revenue
  
7,347
   
3,318
   
40
   
-
   
10,705
 
Total revenue
 
$
198,484
  
$
126,482
  
$
28,207
  
$
-
  
$
353,173
 
                     
Operating income (loss)
 
$
27,647
  
$
28,116
  
$
5,596
  
$
(13,840
)
 
$
47,519
 
Interest expense
  
-
   
-
   
-
   
4,800
   
4,800
 
Earnings (loss) before income taxes
 
$
27,647
  
$
28,116
  
$
5,596
  
$
(18,640
)
 
$
42,719
 
 
Beginning in the first quarter of 2017, the results of operations for certain of the Company’s cosmetic and fragrance businesses in the Asia Pacific segment are now reported in the Color segment and Flavors & Fragrances segment, respectively. The results for 2016 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 2017 and 2016 restructuring and other costs related to continuing operations are reported in Corporate & Other. See Note 11, Restructuring, for more information on the Company’s restructuring activities. The 2017 other costs pertain to the costs associated with the Company’s divestiture of a facility and certain related business lines within the Flavors & Fragrances business in Strasbourg, France; see Note 13, Divestiture.
XML 18 R9.htm IDEA: XBRL DOCUMENT v3.7.0.1
Inventories
3 Months Ended
Mar. 31, 2017
Inventories [Abstract]  
Inventories
4.
Inventories

At March 31, 2017, and December 31, 2016, inventories included finished and in-process products totaling $273.1 million and $273.8 million, respectively, and raw materials and supplies of $137.0 million and $130.5 million, respectively.
XML 19 R10.htm IDEA: XBRL DOCUMENT v3.7.0.1
Retirement Plans
3 Months Ended
Mar. 31, 2017
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
March 31,
 
(In thousands)
 
2017
  
2016
 
       
Service cost
 
$
461
  
$
503
 
Interest cost
  
355
   
420
 
Expected return on plan assets
  
(255
)
  
(297
)
Amortization of actuarial (gain) loss
  
(21
)
  
53
 
         
Total defined benefit expense
 
$
540
  
$
679
 
XML 20 R11.htm IDEA: XBRL DOCUMENT v3.7.0.1
Shareholders' Equity
3 Months Ended
Mar. 31, 2017
Shareholders' Equity [Abstract]  
Shareholders' Equity
6.
Shareholders’ Equity

The Company repurchased 155,849 shares of its common stock for an aggregate cost of $12.4 million during the three months ended March 31, 2017, and 263,770 shares of its common stock for an aggregate cost of $15.4 million during the three months ended March 31, 2016. 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 three-month period.
XML 21 R12.htm IDEA: XBRL DOCUMENT v3.7.0.1
Derivative Instruments and Hedging Activity
3 Months Ended
Mar. 31, 2017
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 $19.5 million and $25.4 million of forward exchange contracts, designated as hedges, outstanding as of March 31, 2017, and December 31, 2016, respectively. For the three months ended March 31, 2017, the losses reclassified were not material. For the three months ended March 31, 2016, losses of $0.5 million were reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the earnings impact of the related non-functional asset or liability hedged in the same period. 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 March 31, 2017, and December 31, 2016, the total value of the Company’s Euro and Swiss Franc debt was $198.2 million and $195.6 million, respectively.  For the three months ended March 31, 2017, the impact of foreign exchange rates on these debt instruments increased debt by $2.6 million, which has been recorded as foreign currency translation in OCI.
XML 22 R13.htm IDEA: XBRL DOCUMENT v3.7.0.1
Income Taxes
3 Months Ended
Mar. 31, 2017
Income Taxes [Abstract]  
Income Taxes
8.
Income Taxes

The effective income tax rates for continuing operations for the quarters ended March 31, 2017 and 2016, were 31.4% and 27.0%, respectively. The effective tax rates in both 2017 and 2016 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 tax rate in 2017 was also impacted by the limited tax deductibility of losses related to the divestitures discussed in Note 11, Restructuring and Note 13, Divestiture.
XML 23 R14.htm IDEA: XBRL DOCUMENT v3.7.0.1
Accumulated Other Comprehensive Income
3 Months Ended
Mar. 31, 2017
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-month period ended March 31, 2017:

(In thousands)
 
Cash Flow
Hedges (a)
  
Pension
Items (a)
  
Foreign
Currency
Items
  
Total
 
Balance as of December 31, 2016
 
$
(85
)
 
$
(2,537
)
 
$
(210,843
)
 
$
(213,465
)
Other comprehensive income before reclassifications
  
327
   
-
   
17,276
   
17,603
 
Amounts reclassified from OCI
  
(20
)
  
(28
)
  
6,524
   
6,476
 
Balance as of March 31, 2017
 
$
222
  
$
(2,565
)
 
$
(187,043
)
 
$
(189,386
)

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

During the three months ended March 31, 2017, the Company completed the divestiture of a facility and certain related business lines in the Flavors & Fragrances segment (see Note 13, Divestiture, for additional information), resulting in the reclassification of the cumulative translation loss of $2.8 million into net earnings. In addition, the Company completed the sale of its European Natural Ingredient business (see Note 11, Restructuring, for additional information), resulting in the reclassification of the cumulative translation loss of $3.7 million into net earnings.
XML 24 R15.htm IDEA: XBRL DOCUMENT v3.7.0.1
Accounts Receivable Securitization
3 Months Ended
Mar. 31, 2017
Accounts Receivable Securitization [Abstract]  
Accounts Receivable Securitization
10.
Accounts Receivable Securitization

During October 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 ASC Topic 860, Transfers and Servicing. Sales of trade receivables under the program are recorded as a reduction of accounts receivable in the Company’s Consolidated Balance Sheet. Proceeds received, including collections on the deferred purchase price receivable, are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows.

The initial trade receivables sold to the third-party financial institution, Wells Fargo, in October 2016, totaled $60.6 million, for which $40 million in proceeds was received. The fair value of the receivables sold equaled the carrying cost at the time of sale and no gain or loss was recorded as a result of the sale. The sale also resulted in the recording of a deferred purchase price amount, which represents the retained interest in the sold receivables. This amount is adjusted each month based on collections and other activity. The fair value of the deferred purchase price receivable recorded on the initial sale in October 2016 was $20.6 million. The Company estimates the fair value of the deferred purchase price receivable based on historical performance of similar receivables including an allowance for doubtful accounts, as well as estimated cash discounts to be taken by customers and potential credits issued to customers. The Company deems the interest rate risk related to the deferred purchase price receivable to be de minimis primarily due to the short average collection cycle of the related receivables. As of March 31, 2017, the trade receivables sold to Wells Fargo totaled $57.1 million. The fair value of the deferred purchase price receivable was $17.1 million which is recorded in Trade Accounts Receivable in the Company’s Consolidated Balance Sheets.
XML 25 R16.htm IDEA: XBRL DOCUMENT v3.7.0.1
Restructuring
3 Months Ended
Mar. 31, 2017
Restructuring [Abstract]  
Restructuring
11.
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 12, 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. Closures have been announced in Indianapolis, Indiana, United States; Cornwall, Mississauga and Halton Hills, Canada; Bremen, Germany; and Milan, Italy. The Company also identified its two European Natural Ingredients facilities to be sold as part of the Plan, 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. The Company has operationally completed all of the above mentioned activities and closures with the exception of the closure of the Indianapolis facility, which is anticipated to be closed in the second quarter of 2017.

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 $14 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 $0.5 million during each of the three months ended March 31, 2017 and 2016. Since initiating the Plan, the Company has recorded $87.2 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 March 31, 2017, 355 positions had been eliminated as a result of this Plan.

During the three months ended March 31, 2017, the Company sold its European Natural Ingredients business (also known as the European Dehydrated Vegetable business), a business in the Flavors & Fragrances segment. This business had two facilities, located in Marchais, France, and Elburg, the Netherlands. The European Natural Ingredients business had not generated significant profits for several years and did not fit with the Company’s long-term strategic plan. The Company completed the sale of this business on March 27, 2017, for a de minimis amount and recognized a non-cash loss of approximately $21 million.

As of March 31, 2017, the Company has recorded assets held for sale of land, buildings, and equipment of $6.8 million related to the 2014 Restructuring Plan.

The Company recorded total restructuring costs of $20.2 million for the three months ended March 31, 2017, and $3.3 million for the three months ended March 31, 2016, in accordance with GAAP.  Since initiating the 2014 Restructuring Plan, the Company has incurred $172.7 million of restructuring costs through March 31, 2017. The Company expects to incur approximately $7 million of additional restructuring costs by the end of 2017.  The increase in the 2017 expected costs are primarily due to the delay in closing the Indianapolis facility, which is now anticipated to be closed in the second quarter of 2017.
 
The closure and sale of these operations have significantly lowered the Company’s operating costs over the last few years and anticipates additional savings in 2018. 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 March 31, 2017. During the three months ended March 31, 2017, the Company realized a de minimis amount of savings and expects to realize approximately $1 million of additional savings by the end of 2017 and approximately $3 to $4 million in 2018. Expected savings have shifted from 2017 to 2018 primarily due to the delay in closing the Indianapolis facility. 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. In 2016, the facility and remaining assets were sold and the entity was liquidated.

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 Corporate & Other. The following table summarizes the restructuring expense by segment and discontinued operations for the three months ended March 31, 2017 and 2016, respectively:

  
Three Months Ended
March 31,
 
(In thousands)
 
2017
  
2016
 
       
Flavors & Fragrances
 
$
20,153
  
$
2,942
 
Color
  
-
   
39
 
Asia Pacific
  
-
   
-
 
Corporate & Other
  
59
   
361
 
         
Total Continuing Operations
  
20,212
   
3,342
 
         
Discontinued Operations
  
-
   
-
 
         
Total Restructuring
 
$
20,212
  
$
3,342
 
 
The Company recorded restructuring costs in continuing operations for the three months ended March 31, 2017, as follows:

Three Months Ended March 31, 2017
 
(In thousands)
  
Selling &
Administrative
    
Cost of
Products Sold
     
Total
  
Employee separation(1)
 
$
(4,485
)
 
$
-
  
$
(4,485
)
Long-lived asset impairment
  
456
   
-
   
456
 
Loss on sale of business
  
20,909
   
-
   
20,909
 
Write-down of inventory
  
-
   
342
   
342
 
Other restructuring costs(2)
  
2,990
   
-
   
2,990
 
             
Total
 
$
19,870
  
$
342
  
$
20,212
 
 
(1)
Employee separation costs include a reversal of the employee separation accrual for the European Natural Ingredients business, which is no longer expected to be paid due to the sale of this business.
(2)
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 months ended March 31, 2016, as follows:
 
Three Months Ended March 31, 2016
(In thousands)
 
Selling &
 Administrative
  
Cost of
Products Sold
  
Total
 
Employee separation
 
$
131
  
$
-
  
$
131
 
Long-lived asset impairment
  
471
   
-
   
471
 
Write-down of inventory
  
-
   
644
   
644
 
Other restructuring costs(1)
  
2,096
   
-
   
2,096
 
             
Total
 
$
2,698
  
$
644
  
$
3,342
 

(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 three months ended March 31, 2017:

(In thousands)
 
Employee
Separations
  
Other
  
Total
 
Balance as of December 31, 2016
 
$
6,959
  
$
570
  
$
7,529
 
Expense activity (1)
  
(4,485
)
  
2,990
   
(1,495
)
Cash spent
  
(1,252
)
  
(3,327
)
  
(4,579
)
Translation adjustment
  
77
   
-
   
77
 
Balance as of March 31, 2017
 
$
1,299
  
$
233
  
$
1,532
 

(1)
Employee separation costs include a reversal of the employee separation accrual for the European Natural Ingredients business, which is no longer expected to be paid due to the sale of this business.
XML 26 R17.htm IDEA: XBRL DOCUMENT v3.7.0.1
Discontinued Operations
3 Months Ended
Mar. 31, 2017
Discontinued Operations [Abstract]  
Discontinued Operations
12.
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. In 2016, the facility and remaining assets were sold and the entity was liquidated.

The following table summarizes the discontinued operation’s results for the three months ended March 31, 2017 and 2016:

  
Three Months Ended
March 31,
 
(In thousands)
 
2017
  
2016
 
       
Revenue
 
$
-
  
$
-
 
Loss from discontinued operations before income taxes
  
-
   
(31
)
Income tax benefit
  
-
   
9
 
Loss from discontinued operations, net of tax
 
$
-
  
$
(22
)
XML 27 R18.htm IDEA: XBRL DOCUMENT v3.7.0.1
Divestiture
3 Months Ended
Mar. 31, 2017
Divestiture [Abstract]  
Divestiture
13.
Divestiture

In 2016, the Company’s Board of Directors authorized management to explore strategic alternatives for a facility and certain related business lines within the Flavors & Fragrances segment in Strasbourg, France. In 2016, the Company recorded a non-cash impairment charge of $10.8 million, 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. In addition, the Company incurred $0.7 million of outside professional fees and other related costs in 2016, as a result of the then anticipated divestiture.

On January 6, 2017, the Company completed the sale of this facility and certain related business lines for approximately $12.5 million. The Company recognized an additional non-cash loss of approximately $11 million during the three months ended March 31, 2017. The additional non-cash loss is primarily due to changes in the estimates related to the amount of the cumulative translation loss, deferred tax assets, and updating working capital balances and other estimates upon closing the transaction. The Company also incurred approximately $0.1 million of outside professional fees and other related costs.
XML 28 R19.htm IDEA: XBRL DOCUMENT v3.7.0.1
Subsequent Events
3 Months Ended
Mar. 31, 2017
Subsequent Events [Abstract]  
Subsequent Events
14.
Subsequent Events

On May 3, 2017, the Company issued three new fixed-rate notes consisting of a 7-year note of €50 million (approximately $53 million) at a fixed rate of 1.27%; a 10-year note of €40 million (approximately $43 million) at a fixed rate of 1.71%; and a 7-year note of $27 million at a fixed rate of 3.65%. Also, on May 3, 2017, the Company extended the maturity date of its revolver from November 2020 to May 2022, and increased its credit facility term loan from $115 million to $145 million. Proceeds were used to refinance existing debt.
XML 29 R20.htm IDEA: XBRL DOCUMENT v3.7.0.1
Commitments and Contingencies
3 Months Ended
Mar. 31, 2017
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
15.
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.

As of May 1, 2017, the parties finalized a settlement, which is pending Court approval. The Company previously accrued $0.6 million for the settlement of this matter, which it will pay to claimants after the settlement is approved by the Court.
Other Claims and Litigation
The Company is subject to various claims and litigation arising in the normal course of business. The Company establishes reserves for claims and proceedings when it is probable that liabilities exist and reasonable estimates of loss can be made. While it is not possible to predict the outcome of these matters, based on our assessment of the facts and circumstances now known, we do not believe that these matters, individually or in the aggregate, will have a material adverse effect on our financial position. However, actual outcomes may be different from those expected and could have a material effect on our results of operations or cash flows in a particular period.
XML 30 R21.htm IDEA: XBRL DOCUMENT v3.7.0.1
Segment Information (Tables)
3 Months Ended
Mar. 31, 2017
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 March 31, 2017:
               
Revenue from external customers
 
$
181,075
  
$
130,840
  
$
29,482
  
$
-
  
$
341,397
 
Intersegment revenue
  
5,800
   
3,226
   
154
   
-
   
9,180
 
Total revenue
 
$
186,875
  
$
134,066
  
$
29,636
  
$
-
  
$
350,577
 
                     
Operating income (loss)
 
$
28,770
  
$
30,217
  
$
5,150
  
$
(40,100
)
 
$
24,037
 
Interest expense
  
-
   
-
   
-
   
4,811
   
4,811
 
Earnings (loss) before income taxes
 
$
28,770
  
$
30,217
  
$
5,150
  
$
(44,911
)
 
$
19,226
 
                     
Three months ended March 31, 2016:
                    
Revenue from external customers
 
$
191,137
  
$
123,164
  
$
28,167
  
$
-
  
$
342,468
 
Intersegment revenue
  
7,347
   
3,318
   
40
   
-
   
10,705
 
Total revenue
 
$
198,484
  
$
126,482
  
$
28,207
  
$
-
  
$
353,173
 
                     
Operating income (loss)
 
$
27,647
  
$
28,116
  
$
5,596
  
$
(13,840
)
 
$
47,519
 
Interest expense
  
-
   
-
   
-
   
4,800
   
4,800
 
Earnings (loss) before income taxes
 
$
27,647
  
$
28,116
  
$
5,596
  
$
(18,640
)
 
$
42,719
 
XML 31 R22.htm IDEA: XBRL DOCUMENT v3.7.0.1
Retirement Plans (Tables)
3 Months Ended
Mar. 31, 2017
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
March 31,
 
(In thousands)
 
2017
  
2016
 
       
Service cost
 
$
461
  
$
503
 
Interest cost
  
355
   
420
 
Expected return on plan assets
  
(255
)
  
(297
)
Amortization of actuarial (gain) loss
  
(21
)
  
53
 
         
Total defined benefit expense
 
$
540
  
$
679
 
XML 32 R23.htm IDEA: XBRL DOCUMENT v3.7.0.1
Accumulated Other Comprehensive Income (Tables)
3 Months Ended
Mar. 31, 2017
Accumulated Other Comprehensive Income [Abstract]  
Summary of Changes in OCI
The following table summarizes the changes in OCI during the three-month period ended March 31, 2017:

(In thousands)
 
Cash Flow
Hedges (a)
  
Pension
Items (a)
  
Foreign
Currency
Items
  
Total
 
Balance as of December 31, 2016
 
$
(85
)
 
$
(2,537
)
 
$
(210,843
)
 
$
(213,465
)
Other comprehensive income before reclassifications
  
327
   
-
   
17,276
   
17,603
 
Amounts reclassified from OCI
  
(20
)
  
(28
)
  
6,524
   
6,476
 
Balance as of March 31, 2017
 
$
222
  
$
(2,565
)
 
$
(187,043
)
 
$
(189,386
)

(a)
Cash Flow Hedges and Pension Items are net of tax.
XML 33 R24.htm IDEA: XBRL DOCUMENT v3.7.0.1
Restructuring (Tables)
3 Months Ended
Mar. 31, 2017
Restructuring [Abstract]  
Restructuring Cost by Segment
The following table summarizes the restructuring expense by segment and discontinued operations for the three months ended March 31, 2017 and 2016, respectively:

  
Three Months Ended
March 31,
 
(In thousands)
 
2017
  
2016
 
       
Flavors & Fragrances
 
$
20,153
  
$
2,942
 
Color
  
-
   
39
 
Asia Pacific
  
-
   
-
 
Corporate & Other
  
59
   
361
 
         
Total Continuing Operations
  
20,212
   
3,342
 
         
Discontinued Operations
  
-
   
-
 
         
Total Restructuring
 
$
20,212
  
$
3,342
 
Summary of Restructuring Costs
The Company recorded restructuring costs in continuing operations for the three months ended March 31, 2017, as follows:

Three Months Ended March 31, 2017
 
(In thousands)
  
Selling &
Administrative
    
Cost of
Products Sold
     
Total
  
Employee separation(1)
 
$
(4,485
)
 
$
-
  
$
(4,485
)
Long-lived asset impairment
  
456
   
-
   
456
 
Loss on sale of business
  
20,909
   
-
   
20,909
 
Write-down of inventory
  
-
   
342
   
342
 
Other restructuring costs(2)
  
2,990
   
-
   
2,990
 
             
Total
 
$
19,870
  
$
342
  
$
20,212
 
 
(1)
Employee separation costs include a reversal of the employee separation accrual for the European Natural Ingredients business, which is no longer expected to be paid due to the sale of this business.
(2)
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 months ended March 31, 2016, as follows:
 
Three Months Ended March 31, 2016
(In thousands)
 
Selling &
 Administrative
  
Cost of
Products Sold
  
Total
 
Employee separation
 
$
131
  
$
-
  
$
131
 
Long-lived asset impairment
  
471
   
-
   
471
 
Write-down of inventory
  
-
   
644
   
644
 
Other restructuring costs(1)
  
2,096
   
-
   
2,096
 
             
Total
 
$
2,698
  
$
644
  
$
3,342
 

(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 three months ended March 31, 2017:

(In thousands)
 
Employee
Separations
  
Other
  
Total
 
Balance as of December 31, 2016
 
$
6,959
  
$
570
  
$
7,529
 
Expense activity (1)
  
(4,485
)
  
2,990
   
(1,495
)
Cash spent
  
(1,252
)
  
(3,327
)
  
(4,579
)
Translation adjustment
  
77
   
-
   
77
 
Balance as of March 31, 2017
 
$
1,299
  
$
233
  
$
1,532
 

(1)
Employee separation costs include a reversal of the employee separation accrual for the European Natural Ingredients business, which is no longer expected to be paid due to the sale of this business.
XML 34 R25.htm IDEA: XBRL DOCUMENT v3.7.0.1
Discontinued Operations (Tables)
3 Months Ended
Mar. 31, 2017
Discontinued Operations [Abstract]  
Certain Consolidated Condensed Statements of Earnings Information for Discontinued Operations
The following table summarizes the discontinued operation’s results for the three months ended March 31, 2017 and 2016:

  
Three Months Ended
March 31,
 
(In thousands)
 
2017
  
2016
 
       
Revenue
 
$
-
  
$
-
 
Loss from discontinued operations before income taxes
  
-
   
(31
)
Income tax benefit
  
-
   
9
 
Loss from discontinued operations, net of tax
 
$
-
  
$
(22
)
XML 35 R26.htm IDEA: XBRL DOCUMENT v3.7.0.1
Fair Value (Details) - USD ($)
$ in Millions
Mar. 31, 2017
Dec. 31, 2016
Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments $ 1.5 $ 1.8
Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Forward exchange contracts, assets 0.2  
Forward exchange contracts, liability   $ 0.2
Level 2 [Member] | Carrying Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long term debt 572.2  
Level 2 [Member] | Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long term debt $ 587.0  
XML 36 R27.htm IDEA: XBRL DOCUMENT v3.7.0.1
Segment Information (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Segment Reporting Information [Line Items]    
Revenue from external customers $ 341,397 $ 342,468
Total revenue 350,577 353,173
Operating income (loss) 24,037 47,519
Interest expense 4,811 4,800
Earnings before income taxes 19,226 42,719
Flavors & Fragrances [Member]    
Segment Reporting Information [Line Items]    
Total revenue 186,875 198,484
Color [Member]    
Segment Reporting Information [Line Items]    
Total revenue 134,066 126,482
Asia Pacific [Member]    
Segment Reporting Information [Line Items]    
Total revenue 29,636 28,207
Corporate and Other [Member]    
Segment Reporting Information [Line Items]    
Revenue from external customers 0 0
Total revenue 0 0
Operating income (loss) (40,100) (13,840)
Interest expense 4,811 4,800
Earnings before income taxes (44,911) (18,640)
Operating Segments [Member] | Flavors & Fragrances [Member]    
Segment Reporting Information [Line Items]    
Revenue from external customers 181,075 191,137
Operating income (loss) 28,770 27,647
Interest expense 0 0
Earnings before income taxes 28,770 27,647
Operating Segments [Member] | Color [Member]    
Segment Reporting Information [Line Items]    
Revenue from external customers 130,840 123,164
Operating income (loss) 30,217 28,116
Interest expense 0 0
Earnings before income taxes 30,217 28,116
Operating Segments [Member] | Asia Pacific [Member]    
Segment Reporting Information [Line Items]    
Revenue from external customers 29,482 28,167
Operating income (loss) 5,150 5,596
Interest expense 0 0
Earnings before income taxes 5,150 5,596
Intersegment Revenue [Member]    
Segment Reporting Information [Line Items]    
Revenue from external customers 9,180 10,705
Intersegment Revenue [Member] | Flavors & Fragrances [Member]    
Segment Reporting Information [Line Items]    
Revenue from external customers 5,800 7,347
Intersegment Revenue [Member] | Color [Member]    
Segment Reporting Information [Line Items]    
Revenue from external customers 3,226 3,318
Intersegment Revenue [Member] | Asia Pacific [Member]    
Segment Reporting Information [Line Items]    
Revenue from external customers 154 40
Intersegment Revenue [Member] | Corporate and Other [Member]    
Segment Reporting Information [Line Items]    
Revenue from external customers $ 0 $ 0
XML 37 R28.htm IDEA: XBRL DOCUMENT v3.7.0.1
Inventories (Details) - USD ($)
$ in Millions
Mar. 31, 2017
Dec. 31, 2016
Inventories [Abstract]    
Inventories, including finished and in-process products $ 273.1 $ 273.8
Raw materials and supplies $ 137.0 $ 130.5
XML 38 R29.htm IDEA: XBRL DOCUMENT v3.7.0.1
Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Defined Benefit Plan Disclosure [Line Items]    
Service cost $ 461 $ 503
Interest cost 355 420
Expected return on plan assets (255) (297)
Amortization of actuarial (gain) loss (21) 53
Total defined benefit expense $ 540 $ 679
XML 39 R30.htm IDEA: XBRL DOCUMENT v3.7.0.1
Shareholders' Equity (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Shareholders' Equity [Abstract]    
Common stock repurchased during the period (in shares) 155,849 263,770
Common stock repurchased during the period, value $ 12.4 $ 15.4
XML 40 R31.htm IDEA: XBRL DOCUMENT v3.7.0.1
Derivative Instruments and Hedging Activity (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Dec. 31, 2016
Forward Exchange Contracts [Member]      
Derivative instruments and hedging activity for the period [Abstract]      
Amount of gain (loss) reclassified into net earnings   $ (0.5)  
Forward Exchange Contracts [Member] | Maximum [Member]      
Derivative instruments and hedging activity for the period [Abstract]      
Number of months for 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 $ 19.5   $ 25.4
Foreign Currency Denominated Debt, Net Investment Hedging [Member]      
Derivative instruments and hedging activity for the period [Abstract]      
Carrying value of foreign denominated debt 198.2   $ 195.6
Impact of foreign exchange rates on debt instruments recorded in Other Comprehensive Income $ 2.6    
XML 41 R32.htm IDEA: XBRL DOCUMENT v3.7.0.1
Income Taxes (Details)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Income Taxes [Abstract]    
Effective income tax rates for continuing operations 31.40% 27.00%
XML 42 R33.htm IDEA: XBRL DOCUMENT v3.7.0.1
Accumulated Other Comprehensive Income (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2017
USD ($)
Accumulated Other Comprehensive Loss [Roll Forward]  
Beginning balance $ 835,741
Other comprehensive income before reclassifications 17,603
Amounts reclassified from OCI 6,476
Ending balance 849,835
Flavors & Fragrances [Member]  
Accumulated Other Comprehensive Loss [Roll Forward]  
Translation adjustment functional to reporting currency, net of tax (2,800)
European Natural Ingredients Business [Member]  
Accumulated Other Comprehensive Loss [Roll Forward]  
Translation adjustment functional to reporting currency, net of tax (3,700)
Accumulated Other Comprehensive (Loss) Income [Member]  
Accumulated Other Comprehensive Loss [Roll Forward]  
Beginning balance (213,465)
Ending balance (189,386)
Cash Flow Hedges [Member]  
Accumulated Other Comprehensive Loss [Roll Forward]  
Beginning balance (85) [1]
Other comprehensive income before reclassifications 327 [1]
Amounts reclassified from OCI (20) [1]
Ending balance 222 [1]
Pension Items [Member]  
Accumulated Other Comprehensive Loss [Roll Forward]  
Beginning balance (2,537) [1]
Other comprehensive income before reclassifications 0 [1]
Amounts reclassified from OCI (28) [1]
Ending balance (2,565) [1]
Foreign Currency Items [Member]  
Accumulated Other Comprehensive Loss [Roll Forward]  
Beginning balance (210,843)
Other comprehensive income before reclassifications 17,276
Amounts reclassified from OCI 6,524
Ending balance $ (187,043)
[1] Cash Flow Hedges and Pension Items are net of tax.
XML 43 R34.htm IDEA: XBRL DOCUMENT v3.7.0.1
Accounts Receivable Securitization (Details) - USD ($)
$ in Millions
1 Months Ended
Oct. 31, 2016
Mar. 31, 2017
Accounts Receivable Securitization [Abstract]    
Accounts receivable securitization program $ 60.6 $ 57.1
Proceeds from accounts receivable securitization program 40.0  
Fair value of the deferred purchase price receivable $ 20.6 $ 17.1
XML 44 R35.htm IDEA: XBRL DOCUMENT v3.7.0.1
Restructuring (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2017
USD ($)
Facility
Position
Mar. 31, 2016
USD ($)
Restructuring Cost and Reserve [Line Items]    
Estimated fair values of the remaining long-lived assets $ 14,000  
Long-lived asset impairment 500 $ 500
Long lived asset impairments recorded to date $ 87,200  
Position reduction due to restructuring | Position 400  
Number of positions eliminated due to restructuring | Position 355  
Total restructuring costs incurred to date $ 172,700  
Future restructuring costs, 2017 7,000  
Estimated cost savings due to restructuring 30,000  
Annual cost of savings 27,000  
Realized cost of savings 22,000  
Expected incremental saving realized 1,000  
Expected incremental savings in 2017 3,000  
Expected incremental savings in 2018 4,000  
Restructuring cost by segment [Abstract]    
Total restructuring 20,212 3,342
Detail of the restructuring costs [Abstract]    
Employee separation (4,485) [1] 131
Long-lived asset impairment 456 471
Loss on sale of business 20,909  
Write-down of inventory 342 644
Other restructuring costs [2] 2,990 2,096
Summary of accrual for restructuring and other charges [Roll Forward]    
Balance as of beginning of period 7,529  
Expense activity [1] (1,495)  
Cash spent (4,579)  
Translation adjustment 77  
Balance as of end of period 1,532  
Continuing Operations [Member]    
Restructuring cost by segment [Abstract]    
Total restructuring 20,212 3,342
Discontinued Operations [Member]    
Restructuring cost by segment [Abstract]    
Total restructuring 0 0
Selling & Administrative [Member]    
Restructuring cost by segment [Abstract]    
Total restructuring 19,870 2,698
Detail of the restructuring costs [Abstract]    
Employee separation (4,485) [1] 131
Long-lived asset impairment 456 471
Loss on sale of business 20,909  
Write-down of inventory 0 0
Other restructuring costs [2] 2,990 2,096
Cost of Products Sold [Member]    
Restructuring cost by segment [Abstract]    
Total restructuring 342 644
Detail of the restructuring costs [Abstract]    
Employee separation 0 [1] 0
Long-lived asset impairment 0 0
Loss on sale of business 0  
Write-down of inventory 342 644
Other restructuring costs [2] $ 0 0
Flavors & Fragrances [Member]    
Restructuring Cost and Reserve [Line Items]    
Facilities identified for consolidation | Facility 8  
Flavors & Fragrances [Member] | Continuing Operations [Member]    
Restructuring cost by segment [Abstract]    
Total restructuring $ 20,153 2,942
Flavors & Fragrances [Member] | North America [Member]    
Restructuring Cost and Reserve [Line Items]    
Facilities identified for consolidation | Facility 4  
Flavors & Fragrances [Member] | Europe [Member]    
Restructuring Cost and Reserve [Line Items]    
Facilities identified for consolidation | Facility 4  
Number of facilities for sale | Facility 2  
Color [Member]    
Restructuring Cost and Reserve [Line Items]    
Facilities identified for closure | Facility 1  
Color [Member] | Continuing Operations [Member]    
Restructuring cost by segment [Abstract]    
Total restructuring $ 0 39
Asia Pacific [Member] | Continuing Operations [Member]    
Restructuring cost by segment [Abstract]    
Total restructuring 0 0
Corporate & Other [Member] | Continuing Operations [Member]    
Restructuring cost by segment [Abstract]    
Total restructuring 59 $ 361
2014 Restructuring Plan [Member]    
Restructuring Cost and Reserve [Line Items]    
Assets held for sale of land, building and equipment 6,800  
Employee Separations [Member]    
Summary of accrual for restructuring and other charges [Roll Forward]    
Balance as of beginning of period 6,959  
Expense activity [1] (4,485)  
Cash spent (1,252)  
Translation adjustment 77  
Balance as of end of period 1,299  
Other [Member]    
Summary of accrual for restructuring and other charges [Roll Forward]    
Balance as of beginning of period 570  
Expense activity [1] 2,990  
Cash spent (3,327)  
Translation adjustment 0  
Balance as of end of period $ 233  
[1] Employee separation costs include a reversal of the employee separation accrual for the European Natural Ingredients business, which is no longer expected to be paid due to the sale of this business.
[2] Other costs include decommissioning costs, professional services, temporary labor, moving costs and other related costs.
XML 45 R36.htm IDEA: XBRL DOCUMENT v3.7.0.1
Discontinued Operations (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Certain Consolidated Condensed Statements of Earnings information for discontinued operations [Abstract]    
Revenue $ 0 $ 0
Loss from discontinued operations before income taxes 0 (31)
Income tax benefit 0 9
Loss from discontinued operations, net of tax $ 0 $ (22)
XML 46 R37.htm IDEA: XBRL DOCUMENT v3.7.0.1
Divestiture (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Jan. 06, 2017
Mar. 31, 2017
Mar. 31, 2016
Dec. 31, 2016
Long Lived Assets Held-for-sale [Line Items]        
Long-lived assets   $ 0    
Non-cash loss on assets held for sale   11,000    
Proceeds from the sale of facility and related business lines $ 12,500 12,457 $ 0  
Outside professional fees related to anticipated divestiture   $ 100   $ 700
Selling, General and Administrative Expenses [Member]        
Long Lived Assets Held-for-sale [Line Items]        
Impairment charges       $ 10,800
XML 47 R38.htm IDEA: XBRL DOCUMENT v3.7.0.1
Subsequent Events (Details)
€ in Millions, $ in Millions
3 Months Ended
May 03, 2017
USD ($)
Note
Mar. 31, 2017
USD ($)
May 03, 2017
EUR (€)
Subsequent Event [Line Items]      
Credit facility amount   $ 115  
Credit facility maturity date   Nov. 06, 2020  
Subsequent Events [Member]      
Subsequent Event [Line Items]      
Number of fixed-rate notes | Note 3    
Credit facility amount $ 145    
Credit facility maturity date May 31, 2022    
Subsequent Events [Member] | 1.27% Senior Note [Member]      
Subsequent Event [Line Items]      
Debt instrument term 7 years    
Debt instrument amount $ 53   € 50
Debt instrument interest rate 1.27%   1.27%
Subsequent Events [Member] | 1.71% Senior Note [Member]      
Subsequent Event [Line Items]      
Debt instrument term 10 years    
Debt instrument amount $ 43   € 40
Debt instrument interest rate 1.71%   1.71%
Subsequent Events [Member] | 3.65% Senior Note [Member]      
Subsequent Event [Line Items]      
Debt instrument term 7 years    
Debt instrument amount $ 27    
Debt instrument interest rate 3.65%   3.65%
XML 48 R39.htm IDEA: XBRL DOCUMENT v3.7.0.1
Commitments and Contingencies (Details) - Sensient Natural Ingredients LLC [Member]
$ in Millions
3 Months Ended
Mar. 31, 2017
USD ($)
Employee
Loss Contingencies [Line Items]  
Number of employees terminated 5
Number of additional claimants 3
Number of additional potentially aggrieved former employees 13
Amount accrued for settlement | $ $ 0.6
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