Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies [Abstract]

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 alleged that SNI failed to comply with the Americans with Disabilities Act (ADA), as amended, when it terminated five employees in 2011. In its discovery responses, the EEOC identified 3 additional former employees as claimants for whom the Agency sought relief.

The parties reached an agreement to settle the case through a Consent Decree, which was approved by the Court on June 29, 2017. The Company previously accrued $0.6 million for the settlement of this matter, which it will pay to the previously identified claimants in accordance with the terms of the Consent Decree. Additionally, the Company has agreed to pay up to an additional $0.2 million to any other claimant(s) that may be identified by the EEOC through a claims process, and to undertake additional training efforts and policy enhancements related to ADA compliance.

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.