☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended:
|
September 30, 2017
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from
|
to
|
Wisconsin
|
39‑0561070
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
Registrant's telephone number, including area code:
|
(414) 271‑6755
|
Large accelerated filer ☒
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
(Do not check if a smaller reporting company)
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
Yes ☐
|
No ☒
|
Class
|
Outstanding at October 31, 2017
|
|
Common Stock, par value $0.10 per share
|
43,475,886
|
Page No.
|
|||
PART I. FINANCIAL INFORMATION: | |||
Item 1.
|
Financial Statements:
|
||
1
|
|||
2 | |||
|
|
||
3
|
|||
4
|
|||
5
|
|||
Item 2.
|
15
|
||
|
|
||
Item 3.
|
22
|
||
Item 4.
|
22
|
||
PART II. OTHER INFORMATION: | |||
Item 1.
|
23
|
||
Item 1A.
|
23
|
||
Item 2.
|
24
|
||
Item 6.
|
24
|
||
25
|
|||
26
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Revenue
|
$
|
353,519
|
$
|
349,662
|
$
|
1,033,391
|
$
|
1,052,966
|
||||||||
Cost of products sold
|
230,784
|
227,099
|
670,486
|
690,126
|
||||||||||||
Selling and administrative expenses
|
70,725
|
71,412
|
242,478
|
220,505
|
||||||||||||
Operating income
|
52,010
|
51,151
|
120,427
|
142,335
|
||||||||||||
Interest expense
|
4,946
|
4,584
|
14,474
|
14,021
|
||||||||||||
Earnings before income taxes
|
47,064
|
46,567
|
105,953
|
128,314
|
||||||||||||
Income taxes
|
14,851
|
10,948
|
29,774
|
36,751
|
||||||||||||
Earnings from continuing operations
|
32,213
|
35,619
|
76,179
|
91,563
|
||||||||||||
Gain from discontinued operations, net of tax
|
-
|
-
|
-
|
3,343
|
||||||||||||
Net earnings
|
$
|
32,213
|
$
|
35,619
|
$
|
76,179
|
$
|
94,906
|
||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
43,624
|
44,532
|
43,947
|
44,604
|
||||||||||||
Diluted
|
43,864
|
44,816
|
44,209
|
44,873
|
||||||||||||
Earnings per common share:
|
||||||||||||||||
Basic:
|
||||||||||||||||
Continuing operations
|
$
|
0.74
|
$
|
0.80
|
$
|
1.73
|
$
|
2.05
|
||||||||
Discontinued operations
|
-
|
-
|
-
|
0.07
|
||||||||||||
Earnings per common share
|
$
|
0.74
|
$
|
0.80
|
$
|
1.73
|
$
|
2.13
|
||||||||
Diluted:
|
||||||||||||||||
Continuing operations
|
$
|
0.73
|
$
|
0.79
|
$
|
1.72
|
$
|
2.04
|
||||||||
Discontinued operations
|
-
|
-
|
-
|
0.07
|
||||||||||||
Earnings per common share
|
$
|
0.73
|
$
|
0.79
|
$
|
1.72
|
$
|
2.11
|
||||||||
Dividends declared per common share
|
$
|
0.30
|
$
|
0.27
|
$
|
0.90
|
$
|
0.81
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Comprehensive Income
|
$
|
44,599
|
$
|
32,784
|
$
|
141,053
|
$
|
86,708
|
ASSETS
|
September 30,
2017
(Unaudited)
|
December 31,
2016
|
||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
24,654
|
$
|
25,865
|
||||
Trade accounts receivable, net
|
222,552
|
194,509
|
||||||
Inventories
|
456,480
|
404,320
|
||||||
Prepaid expenses and other current assets
|
43,245
|
50,974
|
||||||
Assets held for sale
|
7,396
|
41,393
|
||||||
TOTAL CURRENT ASSETS
|
754,327
|
717,061
|
||||||
OTHER ASSETS
|
66,917
|
70,462
|
||||||
DEFERRED TAX ASSETS
|
18,075
|
12,120
|
||||||
INTANGIBLE ASSETS, NET
|
7,658
|
8,126
|
||||||
GOODWILL
|
407,127
|
383,568
|
||||||
PROPERTY, PLANT AND EQUIPMENT:
|
||||||||
Land
|
34,866
|
33,015
|
||||||
Buildings
|
306,217
|
265,157
|
||||||
Machinery and equipment
|
684,526
|
643,869
|
||||||
Construction in progress
|
44,974
|
79,981
|
||||||
1,070,583
|
1,022,022
|
|||||||
Less accumulated depreciation
|
(585,822
|
)
|
(545,499
|
)
|
||||
484,761
|
476,523
|
|||||||
TOTAL ASSETS
|
$
|
1,738,865
|
$
|
1,667,860
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade accounts payable
|
$
|
101,104
|
$
|
92,450
|
||||
Accrued salaries, wages and withholdings from employees
|
25,676
|
26,502
|
||||||
Other accrued expenses
|
58,282
|
54,752
|
||||||
Income taxes
|
5,057
|
14,080
|
||||||
Short-term borrowings
|
20,092
|
20,578
|
||||||
Liabilities held for sale
|
-
|
5,313
|
||||||
TOTAL CURRENT LIABILITIES
|
210,211
|
213,675
|
||||||
DEFERRED INCOME TAXES
|
12,017
|
9,650
|
||||||
OTHER LIABILITIES
|
8,427
|
6,103
|
||||||
ACCRUED EMPLOYEE AND RETIREE BENEFITS
|
21,283
|
19,911
|
||||||
LONG‑TERM DEBT
|
607,395
|
582,780
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Common stock
|
5,396
|
5,396
|
||||||
Additional paid‑in capital
|
112,459
|
107,686
|
||||||
Earnings reinvested in the business
|
1,415,406
|
1,378,923
|
||||||
Treasury stock, at cost
|
(505,138
|
)
|
(442,799
|
)
|
||||
Accumulated other comprehensive loss
|
(148,591
|
)
|
(213,465
|
)
|
||||
TOTAL SHAREHOLDERS’ EQUITY
|
879,532
|
835,741
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
1,738,865
|
$
|
1,667,860
|
Nine Months
Ended September 30,
|
||||||||
2017
|
2016
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
76,179
|
$
|
94,906
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
36,626
|
35,176
|
||||||
Share-based compensation
|
6,296
|
6,743
|
||||||
Net loss on assets
|
1,371
|
7,893
|
||||||
Loss on divestiture of businesses
|
33,160
|
-
|
||||||
Deferred income taxes
|
(9,087
|
)
|
8,454
|
|||||
Liquidation of foreign entity
|
-
|
(3,257
|
)
|
|||||
Changes in operating assets and liabilities
|
(33,423
|
)
|
679
|
|||||
Net cash provided by operating activities
|
111,122
|
150,594
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant and equipment
|
(32,825
|
)
|
(58,004
|
)
|
||||
Proceeds from sale of assets
|
5,444
|
3,597
|
||||||
Proceeds from divestiture of businesses
|
12,457
|
-
|
||||||
Other investing activity
|
(338
|
)
|
(82
|
)
|
||||
Net cash used in investing activities
|
(15,262
|
)
|
(54,489
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
188,387
|
163,370
|
||||||
Debt payments
|
(190,164
|
)
|
(185,697
|
)
|
||||
Purchase of treasury stock
|
(64,486
|
)
|
(27,728
|
)
|
||||
Dividends paid
|
(39,696
|
)
|
(36,357
|
)
|
||||
Other financing activity
|
(988
|
)
|
409
|
|||||
Net cash used in financing activities
|
(106,947
|
)
|
(86,003
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
9,876
|
1,406
|
||||||
Net (decrease) increase in cash and cash equivalents
|
(1,211
|
)
|
11,508
|
|||||
Cash and cash equivalents at beginning of period
|
25,865
|
11,997
|
||||||
Cash and cash equivalents at end of period
|
$
|
24,654
|
$
|
23,505
|
1. |
Accounting Policies
|
2. |
Fair Value
|
3. |
Segment Information
|
(In thousands)
|
Flavors &
Fragrances
|
Color
|
|
Asia
Pacific
|
|
Corporate
& Other
|
Consolidated
|
|||||||||||||
Three months ended September 30, 2017:
|
||||||||||||||||||||
Revenue from external customers
|
$
|
191,063
|
$
|
129,899
|
$
|
32,557
|
$
|
-
|
$
|
353,519
|
||||||||||
Intersegment revenue
|
4,929
|
3,324
|
151
|
-
|
8,404
|
|||||||||||||||
Total revenue
|
$
|
195,992
|
$
|
133,223
|
$
|
32,708
|
$
|
-
|
$
|
361,923
|
||||||||||
Operating income (loss)
|
$
|
33,006
|
$
|
28,624
|
$
|
5,780
|
$
|
(15,400
|
)
|
$
|
52,010
|
|||||||||
Interest expense
|
-
|
-
|
-
|
4,946
|
4,946
|
|||||||||||||||
Earnings (loss) before income taxes
|
$
|
33,006
|
$
|
28,624
|
$
|
5,780
|
$
|
(20,346
|
)
|
$
|
47,064
|
|||||||||
Three months ended September 30, 2016:
|
||||||||||||||||||||
Revenue from external customers
|
$
|
195,318
|
$
|
122,302
|
$
|
32,042
|
$
|
-
|
$
|
349,662
|
||||||||||
Intersegment revenue
|
5,457
|
3,430
|
51
|
-
|
8,938
|
|||||||||||||||
Total revenue
|
$
|
200,775
|
$
|
125,732
|
$
|
32,093
|
$
|
-
|
$
|
358,600
|
||||||||||
Operating income (loss)
|
$
|
32,386
|
$
|
26,522
|
$
|
6,251
|
$
|
(14,008
|
)
|
$
|
51,151
|
|||||||||
Interest expense
|
-
|
-
|
-
|
4,584
|
4,584
|
|||||||||||||||
Earnings (loss) before income taxes
|
$
|
32,386
|
$
|
26,522
|
$
|
6,251
|
$
|
(18,592
|
)
|
$
|
46,567
|
(In thousands)
|
Flavors &
Fragrances
|
|
Color |
|
Asia
Pacific
|
|
Corporate
& Other
|
|
Consolidated | |||||||||||
Nine months ended September 30, 2017:
|
||||||||||||||||||||
Revenue from external customers
|
$
|
552,874
|
$
|
389,992
|
$
|
90,525
|
$
|
-
|
$
|
1,033,391
|
||||||||||
Intersegment revenue
|
15,549
|
10,191
|
764
|
-
|
26,504
|
|||||||||||||||
Total revenue
|
$
|
568,423
|
$
|
400,183
|
$
|
91,289
|
$
|
-
|
$
|
1,059,895
|
||||||||||
Operating income (loss)
|
$
|
90,278
|
$
|
87,913
|
$
|
14,750
|
$
|
(72,514
|
)
|
$
|
120,427
|
|||||||||
Interest expense
|
-
|
-
|
-
|
14,474
|
14,474
|
|||||||||||||||
Earnings (loss) before income taxes
|
$
|
90,278
|
$
|
87,913
|
$
|
14,750
|
$
|
(86,988
|
)
|
$
|
105,953
|
|||||||||
Nine months ended September 30, 2016:
|
||||||||||||||||||||
Revenue from external customers
|
$
|
588,728
|
$
|
373,944
|
$
|
90,294
|
$
|
-
|
$
|
1,052,966
|
||||||||||
Intersegment revenue
|
20,019
|
10,471
|
129
|
-
|
30,619
|
|||||||||||||||
Total revenue
|
$
|
608,747
|
$
|
384,415
|
$
|
90,423
|
$
|
-
|
$
|
1,083,585
|
||||||||||
Operating income (loss)
|
$
|
95,494
|
$
|
82,947
|
$
|
17,500
|
$
|
(53,606
|
)
|
$
|
142,335
|
|||||||||
Interest expense
|
-
|
-
|
-
|
14,021
|
14,021
|
|||||||||||||||
Earnings (loss) before income taxes
|
$
|
95,494
|
$
|
82,947
|
$
|
17,500
|
$
|
(67,627
|
)
|
$
|
128,314
|
4. |
Inventories
|
5. |
Retirement Plans
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
(In thousands)
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
Service cost
|
$
|
466
|
$
|
502
|
$
|
1,392
|
$
|
1,508
|
||||||||
Interest cost
|
366
|
414
|
1,080
|
1,259
|
||||||||||||
Expected return on plan assets
|
(264
|
)
|
(286
|
)
|
(778
|
)
|
(883
|
)
|
||||||||
Amortization of actuarial (gain) loss
|
(19
|
)
|
54
|
(61
|
)
|
162
|
||||||||||
Settlement expense
|
-
|
-
|
3,797
|
-
|
||||||||||||
Total defined benefit expense
|
$
|
549
|
$
|
684
|
$
|
5,430
|
$
|
2,046
|
6. |
Shareholders’ Equity
|
7. |
Derivative Instruments and Hedging Activity
|
8. |
Income Taxes
|
9. |
Accumulated Other Comprehensive Income
|
(In thousands)
|
Cash Flow
Hedges (a)
|
Pension
Items (a)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balance as of June 30, 2017
|
$
|
161
|
$
|
(1,145
|
)
|
$
|
(159,993
|
)
|
$
|
(160,977
|
)
|
|||||
Other comprehensive (loss) income before reclassifications
|
(437
|
)
|
-
|
12,827
|
12,390
|
|||||||||||
Amounts reclassified from OCI
|
22
|
(26
|
)
|
-
|
(4
|
)
|
||||||||||
Balance as of September 30, 2017
|
$
|
(254
|
)
|
$
|
(1,171
|
)
|
$
|
(147,166
|
)
|
$
|
(148,591
|
)
|
(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 (loss) income before reclassifications
|
(46
|
)
|
-
|
56,895
|
56,849
|
|||||||||||
Amounts reclassified from OCI
|
(123
|
)
|
1,366
|
6,782
|
8,025
|
|||||||||||
Balance as of September 30, 2017
|
$
|
(254
|
)
|
$
|
(1,171
|
)
|
$
|
(147,166
|
)
|
$
|
(148,591
|
)
|
(a)
|
Cash Flow Hedges and Pension Items are net of tax.
|
10. |
Accounts Receivable Securitization
|
11. |
Restructuring
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
(In thousands)
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
Flavors & Fragrances
|
$
|
5,968
|
$
|
2,763
|
$
|
33,460
|
$
|
8,630
|
||||||||
Color
|
-
|
(67
|
)
|
-
|
65
|
|||||||||||
Asia Pacific
|
-
|
-
|
-
|
-
|
||||||||||||
Corporate & Other
|
32
|
85
|
167
|
703
|
||||||||||||
Total Continuing Operations
|
6,000
|
2,781
|
33,627
|
9,398
|
||||||||||||
Discontinued Operations
|
-
|
-
|
-
|
(3,485
|
)
|
|||||||||||
Total Restructuring
|
$
|
6,000
|
$
|
2,781
|
$
|
33,627
|
$
|
5,913
|
(In thousands)
|
Selling &
Administrative
|
Cost of
Products Sold
|
Total
|
|||||||||
Employee separation
|
$
|
29
|
$
|
-
|
$
|
29
|
||||||
Long-lived asset impairment
|
976
|
-
|
976
|
|||||||||
Write-down of inventory
|
-
|
3,073
|
3,073
|
|||||||||
Other restructuring costs(1)
|
1,922
|
-
|
1,922
|
|||||||||
Total
|
$
|
2,927
|
$
|
3,073
|
$
|
6,000
|
(1)
|
Other costs include decommissioning costs, professional services, temporary labor, moving costs, and other related costs.
|
(In thousands)
|
Selling &
Administrative
|
Cost of
Products Sold
|
Total
|
|||||||||
Employee separation(1)
|
$
|
(599
|
)
|
$
|
-
|
$
|
(599
|
)
|
||||
Long-lived asset impairment
|
1,444
|
-
|
1,444
|
|||||||||
Loss on sale of business
|
21,563
|
-
|
21,563
|
|||||||||
Write-down of inventory
|
-
|
3,415
|
3,415
|
|||||||||
Other restructuring costs(2)
|
7,804
|
-
|
7,804
|
|||||||||
Total
|
$
|
30,212
|
$
|
3,415
|
$
|
33,627
|
(1)
|
Employee separation costs include a reversal, during the three months ended March 31, 2017, of the employee separation accrual for the European Natural Ingredients business, given the sale of this business, as well as, settlement expense, incurred during the three months ended June 30, 2017, related to the termination of one of the Company’s pension plans.
|
(2)
|
Other costs include decommissioning costs, professional services, temporary labor, moving costs, and other related costs.
|
(In thousands)
|
Selling &
Administrative
|
Cost of
Products Sold
|
Total
|
|||||||||
Employee separation
|
$
|
288
|
$
|
-
|
$
|
288
|
||||||
Long-lived asset impairment
|
(231
|
)
|
-
|
(231
|
)
|
|||||||
Write-down of inventory
|
-
|
-
|
-
|
|||||||||
Other restructuring costs(1)
|
2,724
|
-
|
2,724
|
|||||||||
Total
|
$
|
2,781
|
$
|
-
|
$
|
2,781
|
(1)
|
Other costs include decommissioning costs, professional services, temporary labor, moving costs, and other related costs.
|
(In thousands)
|
Selling &
Administrative
|
Cost of
Products Sold
|
Total
|
|||||||||
Employee separation
|
$
|
738
|
$
|
-
|
$
|
738
|
||||||
Long-lived asset impairment
|
502
|
-
|
502
|
|||||||||
Write-down of inventory
|
-
|
810
|
810
|
|||||||||
Other restructuring costs(1)
|
7,348
|
-
|
7,348
|
|||||||||
Total
|
$
|
8,588
|
$
|
810
|
$
|
9,398
|
(1)
|
Other costs include decommissioning costs, professional services, temporary labor, moving costs, and other related costs.
|
(In thousands)
|
Employee
Separations
|
Other
|
Total
|
|||||||||
Balance as of December 31, 2016
|
$
|
6,959
|
$
|
570
|
$
|
7,529
|
||||||
Expense activity(1)
|
(4,396
|
)
|
7,804
|
3,408
|
||||||||
Cash spent
|
(2,250
|
)
|
(7,766
|
)
|
(10,016
|
)
|
||||||
Translation adjustment
|
101
|
-
|
101
|
|||||||||
Balance as of September 30, 2017
|
$
|
414
|
$
|
608
|
$
|
1,022
|
(1)
|
Employee separation costs include a reversal, during the three months ended March 31, 2017, of the employee separation accrual for the European Natural Ingredients business, given the sale of this business.
|
12. |
Discontinued Operations
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
(In thousands)
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
Revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Gain from discontinued operations before income taxes
|
-
|
-
|
-
|
3,410
|
||||||||||||
Income tax expense
|
-
|
-
|
-
|
(67
|
)
|
|||||||||||
Gain from discontinued operations, net of tax
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
3,343
|
13. |
Divestiture
|
14. |
Debt
|
15. |
Commitments and Contingencies
|
16. |
Subsequent Events
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
|||||||||||||||||||
Operating income from continuing operations (GAAP)
|
$
|
52,010
|
$
|
51,151
|
1.7
|
%
|
$
|
120,427
|
$
|
142,335
|
(15.4
|
%)
|
||||||||||||
Restructuring - Cost of products sold
|
3,073
|
-
|
3,415
|
810
|
||||||||||||||||||||
Restructuring - Selling and administrative
|
2,927
|
2,781
|
30,212
|
8,588
|
||||||||||||||||||||
Other - Selling and administrative (1)
|
14
|
191
|
11,555
|
10,483
|
||||||||||||||||||||
Adjusted operating income
|
$
|
58,024
|
$
|
54,123
|
7.2
|
%
|
$
|
165,609
|
$
|
162,216
|
2.1
|
%
|
||||||||||||
Net earnings from continuing operations (GAAP)
|
$
|
32,213
|
$
|
35,619
|
(9.6
|
%)
|
$
|
76,179
|
$
|
91,563
|
(16.8
|
%)
|
||||||||||||
Restructuring and other, before tax
|
6,014
|
2,972
|
45,182
|
19,881
|
||||||||||||||||||||
Tax impact of restructuring and other
|
681
|
(1,399
|
)
|
(7,424
|
)
|
(2,999
|
)
|
|||||||||||||||||
Adjusted net earnings
|
$
|
38,908
|
$
|
37,192
|
4.6
|
%
|
$
|
113,937
|
$
|
108,445
|
5.1
|
%
|
||||||||||||
Diluted EPS from continuing operations (GAAP)
|
$
|
0.73
|
$
|
0.79
|
(7.6
|
%)
|
$
|
1.72
|
$
|
2.04
|
(15.7
|
%)
|
||||||||||||
Restructuring and other, net of tax
|
0.15
|
0.04
|
0.85
|
0.38
|
||||||||||||||||||||
Adjusted diluted EPS
|
$
|
0.89
|
$
|
0.83
|
7.2
|
%
|
$
|
2.58
|
$
|
2.42
|
6.6
|
%
|
(1)
|
The other costs in 2017 and 2016 are for the divestiture related costs discussed under Divestiture above.
|
Three Months Ended September 30, 2017
|
Nine Months Ended September 30, 2017
|
|||||||||||||||||||||||
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Local
Currency
|
Total
|
Foreign
Exchange
Rates
|
Local
Currency
|
||||||||||||||||||
Flavors & Fragrances
|
(2.4
|
%)
|
1.3
|
%
|
(3.7
|
%)
|
(6.6
|
%)
|
(0.8
|
%)
|
(5.9
|
%)
|
||||||||||||
Color
|
6.0
|
%
|
2.1
|
%
|
3.8
|
%
|
4.1
|
%
|
0.2
|
%
|
3.9
|
%
|
||||||||||||
Asia Pacific
|
1.9
|
%
|
0.5
|
%
|
1.4
|
%
|
1.0
|
%
|
0.4
|
%
|
0.6
|
%
|
||||||||||||
Total Revenue
|
1.1
|
%
|
1.5
|
%
|
(0.4
|
%)
|
(1.9
|
%)
|
(0.2
|
%)
|
(1.6
|
%)
|
||||||||||||
Operating Income from Continuing Operations
|
||||||||||||||||||||||||
Flavors & Fragrances
|
1.9
|
%
|
0.3
|
%
|
1.6
|
%
|
(5.5
|
%)
|
(0.5
|
%)
|
(5.0
|
%)
|
||||||||||||
Color
|
7.9
|
%
|
2.1
|
%
|
5.8
|
%
|
6.0
|
%
|
(0.1
|
%)
|
6.1
|
%
|
||||||||||||
Asia Pacific
|
(7.5
|
%)
|
0.8
|
%
|
(8.3
|
%)
|
(15.7
|
%)
|
0.6
|
%
|
(16.3
|
%)
|
||||||||||||
Corporate & Other
|
9.9
|
%
|
0.2
|
%
|
9.8
|
%
|
35.3
|
%
|
(0.1
|
%)
|
35.4
|
%
|
||||||||||||
Operating Income from Continuing Operations
|
1.7
|
%
|
1.3
|
%
|
0.4
|
%
|
(15.4
|
%)
|
(0.3
|
%)
|
(15.1
|
%)
|
||||||||||||
Diluted EPS from Continuing Operations
|
(7.6
|
%)
|
1.3
|
%
|
(8.9
|
%)
|
(15.7
|
%)
|
(0.5
|
%)
|
(15.2
|
%)
|
||||||||||||
Adjusted Operating Income (1)
|
7.2
|
%
|
1.3
|
%
|
5.9
|
%
|
2.1
|
%
|
(0.3
|
%)
|
2.4
|
%
|
||||||||||||
Adjusted Diluted EPS (1)
|
7.2
|
%
|
1.2
|
%
|
6.0
|
%
|
6.6
|
%
|
(0.4
|
%)
|
7.0
|
%
|
(1)
|
Refer to the table above for a reconciliation of these non-GAAP measures.
|
Period
|
Total number
of shares
purchased
|
Average
price paid
per share
|
Total number of
shares purchased as
part of a publicly
announced plan (1)
|
Maximum number of
shares that may be
purchased under
publicly announced plans
|
||||||||||||
July 1 to July 31, 2017
|
213,085
|
$
|
75.20
|
213,085
|
877,026
|
|||||||||||
August 1 to August 31, 2017
|
292,000
|
74.38
|
292,000
|
585,026
|
||||||||||||
September 1 to September 30, 2017
|
-
|
-
|
-
|
585,026
|
||||||||||||
Total
|
505,085
|
$
|
74.73
|
505,085
|
(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. On October 19, 2017, the Board of Directors, approved a resolution to increase the authorization to repurchase under its share repurchase program by three million shares.
|
Exhibit
|
Description
|
Incorporated by Reference From
|
Filed Herewith
|
|||
Amendment No. 1 to the Receivables Sale Agreement, dated as of October 2, 2017, among Sensient Natural Ingredients LLC,Sensient Colors LLC, Sensient Flavors LLC, and Sensient Receivables LLC
|
Exhibit 10.1 to Current Report on Form 8-K dated October 2, 2017 (Commission File No. 1-7626)
|
|||||
Amendment No. 1 to the Receivables Purchase Agreement and Performance Undertaking, dated as of October 2, 2017, among Sensient Receivables LLC, Sensient Technologies Corporation, and Wells Fargo Bank, National Association
|
Exhibit 10.2 to Current Report on Form 8-K dated October 2, 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 |
SENSIENT TECHNOLOGIES CORPORATION
|
||||
Date:
|
November 7, 2017
|
By:
|
/s/ John J. Manning
|
|
|
John J. Manning,Vice President, General Counsel &Secretary
|
Date:
|
November 7, 2017
|
By:
|
/s/ Stephen J. Rolfs
|
|
Stephen J. Rolfs, Senior Vice President & Chief Financial Officer
|
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.
|
/s/ Paul Manning
|
|
Paul Manning, Chairman, President &
Chief Executive Officer
|
1. |
I have reviewed this quarterly report on Form 10-Q of Sensient Technologies Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d) |
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a) |
all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 7, 2017 |
/s/ Stephen J. Rolfs
|
|
Stephen J. Rolfs, Senior Vice President &
Chief Financial Officer
|
/s/ Paul Manning
|
|||
Name:
|
Paul Manning
|
||
Title:
|
Chairman, President & Chief Executive Officer
|
||
Date:
|
November 7, 2017
|
/s/ Stephen J. Rolfs
|
|||
Name:
|
Stephen J. Rolfs
|
||
Title:
|
Senior Vice President & Chief Financial Officer
|
||
Date:
|
November 7, 2017
|
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Oct. 31, 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 | 43,475,886 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Comprehensive Income | $ 44,599 | $ 32,784 | $ 141,053 | $ 86,708 |
Accounting Policies |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2017 | |||
Accounting Policies [Abstract] | |||
Accounting Policies |
In the opinion of Sensient Technologies Corporation (the “Company”), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of September 30, 2017, and the results of operations and comprehensive income for the three and nine months ended September 30, 2017 and 2016, and cash flows for the nine months ended September 30, 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 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. At that time, the Company’s revenue recognition project team began 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. In the second and third quarters of 2017, the Company reviewed and analyzed the questionnaires and supporting documentation and completed its review and analysis during the current quarter. In addition, the Company has updated its current internal controls and implemented additional controls and monitoring around revenue recognition during the second and third quarters of 2017. The Company also conducted training for all financial personnel on the new standard, controls, and monitoring during this quarter. The Company again updated its Audit Committee on the status of the implementation of this ASU during the current quarter. 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. The Company will continue to evaluate the effects of this standard on its consolidated financial statements. As a result of our ongoing assessment, as of June 30, 2017, the Company has changed its planned method to incorporate this new standard and now plans to use the modified retrospective method. 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 previous guidance. This guidance became effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this standard in the 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 continues to evaluate 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 continues to evaluate the expected 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 evaluating the expected impact of this standard. In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities, which expands an entity’s ability to hedge nonfinancial and financial risk components and reduce complexity in fair value hedges of interest rate risk. This guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement as the hedged item. This ASU is effective for fiscal years and interim periods beginning after December 15, 2018. The Company is currently evaluating the expected impact of this standard. Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 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. |
Fair Value |
9 Months Ended | ||
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Sep. 30, 2017 | |||
Fair Value [Abstract] | |||
Fair Value |
Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, defines fair value for financial assets and liabilities, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. As of September 30, 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 a liability of $0.2 million as of September 30, 2017, and December 31, 2016. The fair value of the investments based on September 30, 2017, and December 31, 2016, market quotes (Level 1 inputs) was an asset of $0.2 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 September 30, 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 September 30, 2017, was $607.4 million. The fair value of the long-term debt at September 30, 2017, was $624.1 million. |
Segment Information |
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
Operating results by segment for the periods presented are as follows:
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 and 2016 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. |
Inventories |
9 Months Ended | ||
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Sep. 30, 2017 | |||
Inventories [Abstract] | |||
Inventories |
At September 30, 2017, and December 31, 2016, inventories included finished and in-process products totaling $306.2 million and $273.8 million, respectively, and raw materials and supplies of $150.3 million and $130.5 million, respectively. |
Retirement Plans |
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Retirement Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans |
The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows:
During the three months ended June 30, 2017, one of the Company’s defined benefit plans was terminated. As a result, the pension benefit obligation was settled by making lump-sum cash payments to certain participants and also purchasing nonparticipating annuity contracts to cover the remaining vested benefits. As a result of this plan’s termination, the Company recognized $3.8 million of settlement expense during the three months ended June 30, 2017, which have been recorded in the Company’s restructuring and other costs. The plan was associated with two facilities which were closed under the Company’s 2014 Restructuring Plan. |
Shareholders' Equity |
9 Months Ended | ||
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Sep. 30, 2017 | |||
Shareholders' Equity [Abstract] | |||
Shareholders' Equity |
The Company repurchased 505,085 and 839,734 shares of its common stock for an aggregate cost of $37.7 million and $64.5 million during the three and nine months ended September 30, 2017, respectively. The Company repurchased 89,251 and 400,477 shares of its common stock for an aggregate cost of $6.7 million and $25.2 million during the three and nine months ended September 30, 2016, respectively. The amount of treasury stock purchases reported in the Company’s Consolidated Condensed Statements of Cash Flow represent purchases that have settled within each respective nine-month period. |
Derivative Instruments and Hedging Activity |
9 Months Ended | ||
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Sep. 30, 2017 | |||
Derivative Instruments and Hedging Activity [Abstract] | |||
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 in order to reduce 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 $30.0 million and $25.4 million of forward exchange contracts designated as hedges outstanding as of September 30, 2017, and December 31, 2016, respectively. For the three months ended September 30, 2017, gains reclassified into net earnings in the Company’s Consolidated Statement of Earnings were immaterial. For the nine months ended September 30, 2017, gains reclassified into net earnings in the Company’s Consolidated Statement of Earnings were $0.2 million, which offset the earnings impact of the related non-functional asset or liability hedged in the same period. For the three and nine months ended September 30, 2016, losses reclassified into net earnings were $0.2 million and $0.9 million, respectively. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges. The results of these transactions were not material to the consolidated financial statements. Net investment hedges – The Company has certain debt denominated in Euros and Swiss Francs. These debt instruments have been designated as partial hedges of the Company’s Euro and Swiss Franc net asset positions. Changes in the fair value of this debt attributable to changes in the spot foreign exchange rate are recorded in foreign currency translation in other comprehensive income (“OCI”). As of September 30, 2017, and December 31, 2016, the total value of the Company’s Euro and Swiss Franc debt was $258.4 million and $195.6 million, respectively. For the three and nine months ended September 30, 2017, the impact of foreign exchange rates on these debt instruments increased debt by $7.3 million and $25.3 million, respectively, which has been recorded as foreign currency translation in OCI. |
Income Taxes |
9 Months Ended | ||
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Sep. 30, 2017 | |||
Income Taxes [Abstract] | |||
Income Taxes |
The effective income tax rates for continuing operations for the quarters ended September 30, 2017 and 2016, were 31.6% and 23.5%, respectively. For the nine-month periods ended September 30, 2017 and 2016, the effective income tax rates for continuing operations were 28.1% and 28.6%, 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 nine-month period ended September 30, 2016, was also impacted by deferred tax adjustments related to the divestitures discussed in Note 13, Divestiture. The nine-month period ended September 30, 2017, was also impacted by the limited tax deductibility of losses discussed in Note 11, Restructuring, and impacted by a tax planning opportunity that expires in 2017. |
Accumulated Other Comprehensive Income |
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Accumulated Other Comprehensive Income |
The following table summarizes the changes in OCI during the three- and nine-month periods ended September 30, 2017:
In 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 $4.0 million into net earnings. During the three months ended June 30, 2017, one of the Company’s pension plans was terminated resulting in the reclassification of the cumulative loss of $1.5 million into net earnings (See Note 5, Retirement Plans, for additional information). |
Accounts Receivable Securitization |
9 Months Ended | ||
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Sep. 30, 2017 | |||
Accounts Receivable Securitization [Abstract] | |||
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 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 September 30, 2017, the trade receivables sold to Wells Fargo totaled $64.9 million. The fair value of the deferred purchase price receivable was $24.9 million, which is recorded in Trade Accounts Receivable in the Company’s Consolidated Balance Sheets. In October, 2017, the Company amended this program. See Note 16, Subsequent Event, for additional information. |
Restructuring |
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Restructuring [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 completed in Indianapolis, Indiana, United States; Cornwall, Mississauga, and Halton Hills, Canada; Bremen, Germany; and Milan, Italy. The Company also sold its two European Natural Ingredients facilities 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 to eliminate additional positions in the European Flavors & Fragrances businesses. As of September 30, 2017, the Company has effectively completed all of the above-mentioned activities and closures. 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 $8 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 $1 million of long-lived asset impairments, including the impairment charges and accelerated depreciation, during the three months ended September 30, 2017, versus $0.2 million during the three months ended September 30, 2016, and $1.4 million and $0.9 million during the nine months ended September 30, 2017 and 2016, respectively. Since initiating the Plan, the Company has recorded $88 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 originally anticipated that it would reduce headcount related to direct and indirect labor at manufacturing sites by approximately 400 positions at the affected facilities, primarily in the Flavors & Fragrances segment. Except for certain positions assisting with the facility decommissioning activities, the majority of these positions have been eliminated as of September 30, 2017. 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 has recognized a non-cash loss of approximately $21.6 million. As of September 30, 2017, the Company has recorded assets held for sale of land, buildings, and equipment of $7.4 million related to the 2014 Restructuring Plan. In accordance with GAAP, the Company recorded total restructuring costs of $6 million and $2.8 million for the three months ended September 30, 2017 and 2016, respectively, and restructuring costs of $33.6 million and $5.9 million for the nine months ended September 30, 2017 and 2016, respectively. Within the restructuring costs incurred during the current quarter, the Company incurred $3.1 million of inventory write-down costs related to the restructuring activities in North America and $1 million of long-lived asset impairments related to the potential sale of the Indianapolis facility. These non-cash costs were not anticipated as of June 30, 2017, and relate to the closure of the Indianapolis facility. Management re-evaluated its operational priorities during the third quarter and determined that certain inventories would not be used due to capacity constraints and other considerations related to the production transfer. In addition, the Company entered into an agreement to sell the Indianapolis property at a price that was below the net book value of the property as of June 30, 2017. Since initiating the 2014 Restructuring Plan, the Company has incurred $186 million of restructuring costs through September 30, 2017. The Company expects to incur approximately $1 million to $2 million of additional restructuring costs by the end of 2017, primarily related to the wind down of restructuring activities. Since initiating the Plan, the Company has realized total savings of approximately $22 million as of September 30, 2017. During the three and nine months ended September 30, 2017, the Company realized a de minimis amount of savings. The Company does not expect any additional savings for the remainder of 2017, but expects additional savings of approximately $4 million to $5 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 and nine months ended September 30, 2017 and 2016, respectively:
The Company recorded restructuring costs in continuing operations for the three and nine months ended September 30, 2017, as follows: Three Months Ended September 30, 2017
Nine Months Ended September 30, 2017
The Company recorded restructuring costs in continuing operations for the three and nine months ended September 30, 2016, as follows: Three Months Ended September 30, 2016
Nine Months Ended September 30, 2016
The following table summarizes the accrual activities for the restructuring activities for the nine months ended September 30, 2017:
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Discontinued Operations |
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Discontinued Operations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 and nine months ended September 30, 2017 and 2016:
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Divestiture |
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Sep. 30, 2017 | |||
Divestiture [Abstract] | |||
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. At that time, the Company recognized an additional non-cash loss of approximately $11 million during the three months ended March 31, 2017. In addition, an additional non-cash loss of approximately $0.6 million was recognized during the three months ended June 30, 2017. The additional non-cash losses in 2017 are primarily due to changes in the estimates related to working capital balances. |
Debt |
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Sep. 30, 2017 | |||
Debt [Abstract] | |||
Debt |
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 revolving credit loan from November 2020 to May 2022, and increased its credit facility term loan to $145 million. Proceeds were used to refinance existing debt. |
Commitments and Contingencies |
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Sep. 30, 2017 | |||
Commitments and Contingencies [Abstract] | |||
Commitments and Contingencies |
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. |
Subsequent Events |
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Sep. 30, 2017 | |||
Subsequent Events [Abstract] | |||
Subsequent Events |
In October 2017, the Company amended its existing accounts receivable securitization program to increase the commitment size from $40 million to $60 million and extend the expiration date of the program until October 2018. Trade receivables were sold to Wells Fargo, for which $20 million in proceeds was received. |
Segment Information (Tables) |
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Operating results by segment for the periods presented are as follows:
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Retirement Plans (Tables) |
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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:
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Accumulated Other Comprehensive Income (Tables) |
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Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in OCI | The following table summarizes the changes in OCI during the three- and nine-month periods ended September 30, 2017:
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Restructuring (Tables) |
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Restructuring [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost by Segment | The following table summarizes the restructuring expense by segment and discontinued operations for the three and nine months ended September 30, 2017 and 2016, respectively:
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Summary of Restructuring Costs | The Company recorded restructuring costs in continuing operations for the three and nine months ended September 30, 2017, as follows: Three Months Ended September 30, 2017
Nine Months Ended September 30, 2017
The Company recorded restructuring costs in continuing operations for the three and nine months ended September 30, 2016, as follows: Three Months Ended September 30, 2016
Nine Months Ended September 30, 2016
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Summary of Accrual for Restructuring and Other Charges | The following table summarizes the accrual activities for the restructuring activities for the nine months ended September 30, 2017:
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Discontinued Operations (Tables) |
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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 and nine months ended September 30, 2017 and 2016:
|
Inventories (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventories [Abstract] | ||
Inventories, including finished and in-process products | $ 306.2 | $ 273.8 |
Raw materials and supplies | $ 150.3 | $ 130.5 |
Retirement Plans (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
Facility
|
Sep. 30, 2016
USD ($)
|
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of facilities closed associated with the defined benefit plan | Facility | 2 | |||
Defined Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 466 | $ 502 | $ 1,392 | $ 1,508 |
Interest cost | 366 | 414 | 1,080 | 1,259 |
Expected return on plan assets | (264) | (286) | (778) | (883) |
Amortization of actuarial (gain) loss | (19) | 54 | (61) | 162 |
Settlement expense | 0 | 0 | 3,797 | 0 |
Total defined benefit expense | $ 549 | $ 684 | $ 5,430 | $ 2,046 |
Shareholders' Equity (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Shareholders' Equity [Abstract] | ||||
Common stock repurchased during the period (in shares) | 505,085 | 89,251 | 839,734 | 400,477 |
Common stock repurchased during the period, value | $ 37.7 | $ 6.7 | $ 64.5 | $ 25.2 |
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Maximum [Member] | |||||
Derivative instruments and hedging activity for the period [Abstract] | |||||
Number of months for contracts to mature | 18 months | ||||
Forward Exchange Contracts [Member] | |||||
Derivative instruments and hedging activity for the period [Abstract] | |||||
Amount of gain (loss) reclassified into net earnings | $ (0.2) | $ 0.2 | $ (0.9) | ||
Forward Exchange Contracts [Member] | Cash Flow Hedges [Member] | |||||
Derivative instruments and hedging activity for the period [Abstract] | |||||
Derivative, fair value | $ 30.0 | 30.0 | $ 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 | 258.4 | 258.4 | $ 195.6 | ||
Impact of foreign exchange rates on debt instruments recorded in Other Comprehensive Income | $ 7.3 | $ 25.3 |
Income Taxes (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Income Taxes [Abstract] | ||||
Effective income tax rates for continuing operations | 31.60% | 23.50% | 28.10% | 28.60% |
Accounts Receivable Securitization (Details) - USD ($) $ in Millions |
1 Months Ended | 9 Months Ended |
---|---|---|
Oct. 31, 2016 |
Sep. 30, 2017 |
|
Accounts Receivable Securitization [Abstract] | ||
Proceeds from accounts receivable securitization program | $ 40.0 | $ 40.0 |
Accounts receivable securitization program | 60.6 | 64.9 |
Fair value of the deferred purchase price receivable | $ 20.6 | $ 24.9 |
Restructuring (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017
USD ($)
Facility
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
Facility
Position
|
Sep. 30, 2016
USD ($)
|
|||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Estimated fair values of the remaining long-lived assets | $ 8,000 | $ 8,000 | ||||||||||
Long-lived asset impairment | 1,000 | $ 200 | 1,400 | $ 900 | ||||||||
Long lived asset impairments recorded to date | 88,000 | |||||||||||
Total restructuring costs incurred to date | 186,000 | 186,000 | ||||||||||
Future restructuring costs, 2017 | 1,000 | 1,000 | ||||||||||
Realized cost of savings | 22,000 | |||||||||||
Expected incremental saving realized | 0 | |||||||||||
Expected incremental savings in 2017 | 4,000 | 4,000 | ||||||||||
Expected incremental savings in 2018 | 5,000 | 5,000 | ||||||||||
Restructuring cost by segment [Abstract] | ||||||||||||
Total restructuring | 6,000 | 2,781 | 33,627 | 5,913 | ||||||||
Summary of accrual for restructuring and other charges [Roll Forward] | ||||||||||||
Balance as of beginning of period | 7,529 | |||||||||||
Expense activity | [1] | 3,408 | ||||||||||
Cash spent | (10,016) | |||||||||||
Translation adjustment | 101 | |||||||||||
Balance as of end of period | 1,022 | 1,022 | ||||||||||
Continuing Operations [Member] | ||||||||||||
Restructuring cost by segment [Abstract] | ||||||||||||
Total restructuring | 6,000 | 2,781 | 33,627 | 9,398 | ||||||||
Detail of the restructuring costs [Abstract] | ||||||||||||
Employee separation | 29 | 288 | (599) | [2] | 738 | |||||||
Long-lived asset impairment | 976 | (231) | 1,444 | 502 | ||||||||
Loss on sale of business | 21,563 | |||||||||||
Write-down of inventory | 3,073 | 0 | 3,415 | 810 | ||||||||
Other restructuring costs | [3] | 1,922 | 2,724 | 7,804 | 7,348 | |||||||
Discontinued Operations [Member] | ||||||||||||
Restructuring cost by segment [Abstract] | ||||||||||||
Total restructuring | 0 | 0 | 0 | (3,485) | ||||||||
Selling & Administrative [Member] | Continuing Operations [Member] | ||||||||||||
Restructuring cost by segment [Abstract] | ||||||||||||
Total restructuring | 2,927 | 2,781 | 30,212 | 8,588 | ||||||||
Detail of the restructuring costs [Abstract] | ||||||||||||
Employee separation | 29 | 288 | (599) | [2] | 738 | |||||||
Long-lived asset impairment | 976 | (231) | 1,444 | 502 | ||||||||
Loss on sale of business | 21,563 | |||||||||||
Write-down of inventory | 0 | 0 | 0 | 0 | ||||||||
Other restructuring costs | [3] | 1,922 | 2,724 | 7,804 | 7,348 | |||||||
Cost of Products Sold [Member] | Continuing Operations [Member] | ||||||||||||
Restructuring cost by segment [Abstract] | ||||||||||||
Total restructuring | 3,073 | 0 | 3,415 | 810 | ||||||||
Detail of the restructuring costs [Abstract] | ||||||||||||
Employee separation | 0 | 0 | 0 | [2] | 0 | |||||||
Long-lived asset impairment | 0 | 0 | 0 | 0 | ||||||||
Loss on sale of business | 0 | |||||||||||
Write-down of inventory | 3,073 | 0 | 3,415 | 810 | ||||||||
Other restructuring costs | [3] | 0 | 0 | $ 0 | 0 | |||||||
Flavors & Fragrances [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Facilities identified for consolidation | Facility | 8 | |||||||||||
Position reduction due to restructuring | Position | 400 | |||||||||||
Flavors & Fragrances [Member] | Continuing Operations [Member] | ||||||||||||
Restructuring cost by segment [Abstract] | ||||||||||||
Total restructuring | $ 5,968 | 2,763 | $ 33,460 | 8,630 | ||||||||
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 | (67) | $ 0 | 65 | ||||||||
Asia Pacific [Member] | Continuing Operations [Member] | ||||||||||||
Restructuring cost by segment [Abstract] | ||||||||||||
Total restructuring | 0 | 0 | 0 | 0 | ||||||||
Corporate & Other [Member] | Continuing Operations [Member] | ||||||||||||
Restructuring cost by segment [Abstract] | ||||||||||||
Total restructuring | 32 | $ 85 | 167 | $ 703 | ||||||||
2014 Restructuring Plan [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Assets held for sale of land, building and equipment | 7,400 | 7,400 | ||||||||||
Employee Separations [Member] | ||||||||||||
Summary of accrual for restructuring and other charges [Roll Forward] | ||||||||||||
Balance as of beginning of period | 6,959 | |||||||||||
Expense activity | [1] | (4,396) | ||||||||||
Cash spent | (2,250) | |||||||||||
Translation adjustment | 101 | |||||||||||
Balance as of end of period | 414 | 414 | ||||||||||
Other [Member] | ||||||||||||
Summary of accrual for restructuring and other charges [Roll Forward] | ||||||||||||
Balance as of beginning of period | 570 | |||||||||||
Expense activity | [1] | 7,804 | ||||||||||
Cash spent | (7,766) | |||||||||||
Translation adjustment | 0 | |||||||||||
Balance as of end of period | $ 608 | $ 608 | ||||||||||
|
Discontinued Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Certain Consolidated Condensed Statements of Earnings information for discontinued operations [Abstract] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Gain from discontinued operations before income taxes | 0 | 0 | 0 | 3,410 |
Income tax expense | 0 | 0 | 0 | (67) |
Gain from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ 3,343 |
Divestiture (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jan. 06, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Long Lived Assets Held-for-sale [Line Items] | ||||||
Long-lived assets | $ 0 | |||||
Outside professional fees related to anticipated divestiture | $ 700 | |||||
Proceeds from the sale of facility and related business lines | $ 12,457 | $ 12,457 | $ 0 | |||
Non-cash loss on assets held for sale | $ 600 | $ 11,000 | ||||
Selling, General and Administrative Expenses [Member] | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Impairment charges | $ 10,800 |
Debt (Details) € in Millions, $ in Millions |
9 Months Ended | ||
---|---|---|---|
May 03, 2017
USD ($)
Note
|
Sep. 30, 2017 |
May 03, 2017
EUR (€)
|
|
Debt Instrument [Line Items] | |||
Number of fixed-rate notes | Note | 3 | ||
1.27% Senior Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 7 years | ||
Debt instrument amount | $ 53 | € 50 | |
Debt instrument interest rate | 1.27% | 1.27% | |
1.71% Senior Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 10 years | ||
Debt instrument amount | $ 43 | € 40 | |
Debt instrument interest rate | 1.71% | 1.71% | |
3.65% Senior Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 7 years | ||
Debt instrument amount | $ 27 | ||
Debt instrument interest rate | 3.65% | 3.65% | |
Term Loan [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility amount | $ 145 | ||
Credit facility maturity date | May 31, 2022 |
Subsequent Events (Details) - USD ($) $ in Millions |
1 Months Ended | 9 Months Ended | |
---|---|---|---|
Oct. 31, 2017 |
Oct. 31, 2016 |
Sep. 30, 2017 |
|
Subsequent Event [Line Items] | |||
Proceeds from accounts receivable securitization program | $ 40 | $ 40 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Proceeds from accounts receivable securitization program | $ 60 | ||
Incremental proceeds from accounts receivable securitization program | $ 20 |
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