0001140361-17-041246.txt : 20171107 0001140361-17-041246.hdr.sgml : 20171107 20171107102206 ACCESSION NUMBER: 0001140361-17-041246 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 54 CONFORMED PERIOD OF REPORT: 20170930 FILED AS OF DATE: 20171107 DATE AS OF CHANGE: 20171107 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: 171182084 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:
September 30, 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 October 31, 2017
Common Stock, par value $0.10 per share
 
43,475,886
 


SENSIENT TECHNOLOGIES CORPORATION
INDEX

      
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
 
PART I.      FINANCIAL INFORMATION
ITEM 1.      FINANCIAL STATEMENTS

SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(In thousands except per share amounts)
(Unaudited)

 
Three Months
Ended September 30,
   
Nine Months
Ended September 30,
 
   
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
 

See accompanying notes to consolidated condensed financial statements.
 
1

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

 
Three Months
Ended September 30,
   
Nine Months
Ended September 30,
 
   
2017
   
2016
   
2017
   
2016
 
                         
Comprehensive Income
 
$
44,599
   
$
32,784
   
$
141,053
   
$
86,708
 

See accompanying notes to consolidated condensed financial statements.
 
2

SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)

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
 

See accompanying notes to consolidated condensed financial statements.
 
3

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

   
Nine Months
Ended September 30,
 
   
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
 

See accompanying notes to consolidated condensed financial statements.
 
4

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

1.
Accounting Policies

In the opinion of Sensient Technologies Corporation (the “Company”), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of September 30, 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.
 
5

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.

2.
Fair Value

Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, defines fair value for financial assets and liabilities, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. As of September 30, 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.
 
6

3.
Segment Information

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

(In thousands)
 
Flavors &
Fragrances
 
 
Color 
 
 
 
Asia
Pacific 
 
 
 
Corporate
& Other 
 
 
Consolidated 
 
Three months ended September 30, 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
 

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.
 
7

4.
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.

5.
Retirement Plans

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

   
Three Months Ended
September 30,
   
Nine Months Ended
September 30,
 
(In thousands)
 
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
 

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.

6.
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.

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 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.
 
8

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.

8.
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.

9.
Accumulated Other Comprehensive Income

The following table summarizes the changes in OCI during the three- and nine-month periods ended September 30, 2017:

(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.
 
9

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).

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 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.

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 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.
 
10

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.
 
11

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:

   
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
 
 
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

 
(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.
 
Nine Months Ended September 30, 2017

 
(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.
 
12

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

Three Months Ended September 30, 2016
 
 
(In thousands)
  
Selling &
Administrative
     
Cost of
Products Sold
       
Total
  
Employee separation
 
$
288
   
$
-
   
$
288
 
Long-lived asset impairment
   
(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.

Nine Months Ended September 30, 2016

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

 
(1)
Other costs include decommissioning costs, professional services, temporary labor, moving costs, and other related costs.
 
The following table summarizes the accrual activities for the restructuring activities for the nine months ended September 30, 2017:

 
(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
 
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.
 
13

The following table summarizes the discontinued operation’s results for the three and nine months ended September 30, 2017 and 2016:

   
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

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.

14.
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.

15.
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.
 
16.
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.
 
14

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 $353.5 million and $349.7 million for the three months ended September 30, 2017 and 2016, respectively, an increase of 1.1%. Revenue was $1.0 billion and $1.1 billion for the nine months ended September 30, 2017 and 2016, respectively. The impact of foreign exchange rates increased consolidated revenue by approximately 1.5% for the three months ended September 30, 2017 and decreased revenue by 0.2% for the nine months ended September 30, 2017.

Gross Profit
The Company’s gross margin was 34.7% and 35.1% for the three months ended September 30, 2017 and 2016, respectively. Included in cost of sales is $3.1 million of restructuring costs for the three months ended September 30, 2017. The decrease in gross margin for the three months ended September 30, 2017, is primarily a result of higher restructuring and other costs partially offset by higher selling prices and the favorable impact of the divestitures (See Note 11, Restructuring, and Note 13, Divestiture, for further information). Restructuring costs reduced gross margin by 90 basis points during the three months ended September 30, 2017, and did not have a material impact on margin for the three months ended September 30, 2016.

Gross margin was 35.1% and 34.5% for the nine months ended September 30, 2017 and 2016, respectively. Included in costs of sales is $3.4 million and $0.8 million of restructuring costs for the nine months ended September 30, 2017 and 2016, respectively. The decrease in gross margin for the nine months ended September 30, 2017, is primarily due to the increase in restructuring costs partially offset by higher selling prices and the favorable impact of the divestitures. Restructuring costs reduced gross margin by 30 basis points for the nine months ended September 30, 2017, and did not have a material impact on the margin during the nine months ended September 30, 2016.

Selling and Administrative Expense
Selling and administrative expenses as a percent of revenue were 20.0% and 20.4% for the three months ended September 30, 2017 and 2016, respectively. Restructuring and other costs (see the discussions below regarding Restructuring, Divestiture, and Non-GAAP Financial Measures) of $2.9 million and $3.0 million were included in selling and administrative expenses for the three months ended September 30, 2017 and 2016, respectively. The decrease in selling and administrative expenses as a percent of revenue is primarily due to lower outside services. Restructuring and other costs increased selling and administrative expense as a percent of revenue by 80 basis points for both the three months ended September 30, 2017 and 2016.

Selling and administrative expenses as a percent of revenue were 23.5% and 20.9% for the nine months ended September 30, 2017 and 2016, respectively. Restructuring and other costs of $41.8 million and $19.1 million were included in selling and administrative expenses for the nine months ended September 30, 2017 and 2016, respectively. The increase in selling and administrative expenses as a percent of revenue is primarily due to the higher restructuring and other costs and profit on a sale of an import right in 2016 in the Flavors & Fragrances segment, partially offset by lower performance-based executive compensation and lower outside services. Restructuring and other costs increased selling and administrative expense as a percent of revenue by 410 basis points and 180 basis points for the nine months ended September 30, 2017 and 2016, respectively.
 
Operating Income
Operating income was $52.0 million and $51.2 million for the three months ended September 30, 2017 and 2016, respectively. Operating margins were 14.7% and 14.6% for the three months ended September 30, 2017 and 2016, respectively. Restructuring and other costs reduced operating margins by 170 basis points and 90 basis points during the three months ended September 30, 2017 and 2016, respectively.
 
15

Operating income was $120.4 million and $142.3 million for the nine months ended September 30, 2017 and 2016, respectively. Operating margins were 11.7% and 13.5% for the nine months ended September 30, 2017 and 2016, respectively. Restructuring and other costs reduced operating margins by 430 basis points and 190 basis points during the nine months ended September 30, 2017 and 2016, respectively.

Interest Expense
Interest expense was $4.9 million and $4.6 million for the three months ended September 30, 2017 and 2016, respectively, and $14.5 million and $14.0 million for the nine months ended September 30, 2017 and 2016, respectively.

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.

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.
 
16

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.
 
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.
 
17

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 and 2016 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 period-to-period performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this report. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends, and the Company believes the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

   
Three Months Ended September 30,
   
Nine Months Ended September 30,
 
   
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.
 
18

The following table summarizes the percentage change for the results for the three and nine months ended September 30, 2017, compared to the results for the three and nine months ended September 30, 2016, in the respective financial measures.

   
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.

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 $196.0 million and $200.8 million for the three months ended September 30, 2017 and 2016, respectively, a decrease of 2.4%. Foreign exchange rates increased segment revenue by 1.3%. The decrease in segment revenue was primarily due to lower revenue in Europe ($5.1 million) which was primarily due to the divestitures ($7.3 million) and lower volumes ($0.7 million), partially offset by higher selling prices ($1.1 million) and the favorable impact of exchange rates ($1.9 million).
 
Flavors & Fragrances segment revenue was $568.4 million and $608.7 million for the nine months ended September 30, 2017 and 2016, respectively, a decrease of 6.6%. Foreign exchange rates reduced segment revenue by 0.8%. The decrease in segment revenue was primarily due to lower revenue in Europe ($25.6 million) and North America ($14.9 million). The lower revenue in Europe was primarily due to the divestitures ($16.2 million), lower volumes ($8.5 million), and the unfavorable impact of exchange rates ($4.5 million) partially offset by higher selling prices ($3.7 million). The lower revenue in North America was primarily due to lower volumes ($27.4 million) partially offset by higher selling prices ($12.0 million) and the favorable impact of foreign exchange rates ($0.5 million).
 
19

Flavors & Fragrances segment operating income was $33.0 million and $32.4 million for the three months ended September 30, 2017 and 2016, respectively, an increase of 1.9%. Foreign exchange rates increased segment operating income by 0.3%. The higher segment operating income was due to higher operating income in North America ($1.2 million), and Latin America ($0.3 million) partially offset by lower operating income in Europe ($0.8 million). The higher operating income in North America was primarily due to higher selling prices ($3.6 million), partially offset by higher raw material costs ($1.0 million), higher manufacturing and other costs ($0.5 million), unfavorable volume and product mix ($0.5 million), and the unfavorable impact of foreign exchange rates ($0.4 million). The lower operating income in Europe was primarily due to unfavorable volume and mix ($1.6 million), higher manufacturing and other costs ($1.2 million), higher raw material prices ($0.7 million), partially offset by the impact of the divestiture ($1.5 million) and higher selling prices ($1.1 million). Segment operating income as a percent of revenue was 16.8% in the current quarter and 16.1% in the prior year’s comparable quarter.
 
Flavors & Fragrances segment operating income was $90.3 million and $95.5 million for the nine months ended September 30, 2017 and 2016, respectively, a decrease of 5.5%. Foreign exchange rates decreased segment operating income by 0.5%. The lower segment operating income was due to lower operating income in Europe ($2.6 million), North America ($2.0 million), and Latin America ($0.5 million). The lower operating income in Europe was primarily due to higher manufacturing and other costs ($6.4 million), unfavorable volume and product mix ($3.3 million), and the impact of unfavorable exchange rates ($0.2 million) partially offset by higher selling prices ($3.7 million) and the impact of the divestitures ($3.8 million). The lower operating income in North America was primarily due to unfavorable volume and product mix ($9.3 million), profit on the one-time sale of an import right in 2016 ($2.7 million), and raw material costs ($1.8 million) partially offset by higher selling prices ($12.0 million). The lower operating income in Latin America was primarily a result of higher raw material costs ($1.6 million), unfavorable volume and product mix ($0.7 million), higher manufacturing and other costs ($0.4 million), and the unfavorable impact of foreign exchange rates ($0.2 million) partially offset by higher selling prices ($2.4 million). Segment operating income as a percent of revenue was 15.9% for the nine months ended September 30, 2017, and 15.7% for the prior year’s comparable period.

Color
Segment revenue for the Color segment was $133.2 million and $125.7 million for the three months ended September 30, 2017 and 2016, respectively, an increase of 6.0%. Foreign exchange rates increased segment revenue by 2.1%. The higher segment revenue was due to higher sales of non-food colors ($6.0 million) and higher sales of food and beverage colors ($1.5 million). The higher sales of non-food colors were primarily due to higher volumes ($4.8 million), primarily in cosmetics, the impact of favorable exchange rates ($0.9 million), and higher selling prices ($0.4 million). The higher sales of food and beverage colors was primarily a result of the impact of favorable exchange rates ($1.8 million), and higher selling prices ($0.4 million) partially offset by lower volumes ($0.8 million).

Segment revenue for the Color segment was $400.2 million and $384.4 million for the nine months ended September 30, 2017 and 2016, respectively, an increase of 4.1%. Foreign exchange rates increased segment revenue by 0.2%. The higher segment revenue was due to higher sales of non-food colors ($15.5 million) and food and beverage colors ($0.3 million). The higher sales of non-food colors were primarily due to higher volumes ($14.1 million) and selling prices ($1.0 million), primarily in cosmetics, and the impact of favorable exchange rates ($0.4 million).

Segment operating income for the Color segment was $28.6 million and $26.5 million for the three months ended September 30, 2017 and 2016, respectively, an increase of 7.9%. Foreign exchange rates increased segment operating income by 2.1%. The higher segment operating income was primarily due to higher profit for non-food colors ($2.8 million) partially offset by lower profit for food and beverage colors ($0.7 million). The higher operating income for non-food colors was primarily a result of volume and product mix ($3.5 million), higher selling prices ($0.4 million), lower raw material costs ($0.3 million), and the favorable impact of exchange rates ($0.2 million), partially offset by higher manufacturing and other costs ($1.4 million). The lower operating income for food and beverage colors was primarily a result of higher raw material costs ($1.3 million) and unfavorable volume and product mix ($0.7 million), partially offset by lower manufacturing and other costs ($0.5 million), the favorable impact of exchange rates ($0.4 million), and higher selling prices ($0.4 million). Segment operating income as a percent of revenue was 21.5% in the current quarter and 21.1% in the prior year’s comparable quarter.
 
Segment operating income for the Color segment was $87.9 million and $82.9 million for the nine months ended September 30, 2017 and 2016, respectively, an increase of 6.0%. Foreign exchange rates decreased segment operating income by 0.1%. The higher segment operating income was primarily due to higher profit for non-food colors ($6.0 million) partially offset by lower profit for food and beverage colors ($1.1 million). The higher operating income for non-food colors was primarily a result of volume and product mix ($7.6 million) and higher selling prices ($1.0 million) partially offset by higher manufacturing and other costs ($2.5 million), and the unfavorable impact of foreign exchange rates ($0.2 million). The lower operating income for food and beverage colors was primarily a result of unfavorable volume and product mix ($1.6 million), higher manufacturing and other costs ($0.6 million), and higher raw material costs ($0.6 million), partially offset by higher selling prices ($1.7 million). Segment operating income as a percent of revenue was 22.0% and 21.6% for the nine months ending September 30, 2017 and 2016, respectively.
 
20

Asia Pacific
Segment revenue for the Asia Pacific segment was $32.7 million and $32.1 million for the three months ended September 30, 2017 and 2016, respectively, an increase of 1.9%. Foreign exchange rates increased segment revenue by 0.5%. The higher revenue was due to higher selling prices ($0.5 million) and the favorable impact of foreign exchange rates ($0.2 million) partially offset by lower volumes ($0.1 million).

Segment revenue for the Asia Pacific segment was $91.3 million and $90.4 million for the nine months ended September 30, 2017 and 2016, respectively, an increase of 1.0%. Foreign exchange rates increased segment revenue by 0.4%. The higher revenue was due to higher selling prices ($1.3 million), and the favorable impact of foreign exchange rates ($0.4 million) partially offset by lower volumes ($0.7 million).

Segment operating income for the Asia Pacific segment was $5.8 million and $6.3 million for the three months ended September 30, 2017 and 2016, respectively, a decrease of 7.5%.  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 ($1.0 million), and unfavorable volume and product mix ($0.4 million), partially offset by higher selling prices ($0.5 million) and lower raw material costs ($0.3 million). Segment operating income as a percent of revenue was 17.7% in the current quarter and 19.5% in the prior year’s comparable quarter.

Segment operating income for the Asia Pacific segment was $14.8 million and $17.5 million for the nine months ended September 30, 2017 and 2016, respectively, a decrease of 15.7%.  Foreign exchange rates increased segment operating income by 0.6%. The decrease in segment operating income was primarily a result of higher manufacturing and other costs ($3.5 million), higher raw material costs ($0.2 million), and unfavorable volume and product mix ($0.4 million) partially offset by higher selling prices ($1.3 million) and the favorable impact of exchange rates ($0.1 million). Segment operating income as a percent of revenue was 16.2% and 19.4% for the nine months ended September 30, 2017 and 2016, respectively.

Corporate & Other
The Corporate & Other operating loss was $15.4 million and $14.0 million for the three months ended September 30, 2017 and 2016, respectively. The higher operating loss was primarily a result of higher restructuring and other costs ($3.1 million), partially offset by lower outside services ($1.6 million).  Restructuring and other costs were $6.0 million and $3.0 million for the three months ended September 30, 2017 and 2016, respectively.

The Corporate & Other operating loss was $72.5 million and $53.6 million for the nine months ended September 30, 2017 and 2016, respectively. The higher operating loss was primarily a result of higher restructuring and other costs ($25.3 million) partially offset by lower outside services ($3.9 million) and lower performance based executive compensation ($1.3 million). Restructuring and other costs were $45.2 million and $19.9 million for the nine months ended September 30, 2017 and 2016, respectively.
 
LIQUIDITY AND FINANCIAL CONDITION

Financial Condition
The Company’s financial position remains strong. The Company is in compliance with its loan covenants calculated in accordance with applicable agreements as of September 30, 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 $111.1 million and $150.6 million for the nine months ended September 30, 2017 and 2016, respectively. The lower cash provided by operating activities is primarily due to a higher use of working capital and the timing of tax payments.
21

Cash Flows from Investing Activities
Net cash used in investing activities was $15.3 million and $54.5 million for the nine months ended September 30, 2017 and 2016, respectively. Capital expenditures were $32.8 million and $58.0 million for the nine months ended September 30, 2017 and 2016, respectively. During the three months ended March 31, 2017, the Company sold two different businesses for $12.5 million in proceeds. During the three months ended June 30, 2017, the Company sold a facility (that was previously closed as a result of the Company’s 2014 Restructuring Plan) for $5.0 million.
 
Cash Flows from Financing Activities
Net cash used in financing activities was $106.9 million and $86.0 million for the nine months ended September 30, 2017 and 2016, respectively. The Company repurchased $64.5 million and $27.7 million of Company stock in the first nine months of 2017 and 2016, respectively. Net debt decreased in the first nine months of 2017 and 2016, by $1.8 million and $22.3 million, respectively. For purposes of the cash flow statement, net changes in debt exclude the impact of foreign exchange rates. Dividends of $39.7 million and $36.4 million were paid during the nine months ended September 30, 2017 and 2016, respectively. Dividends paid were 90 cents per share and 81 cents per share in the first nine months of 2017 and 2016, respectively. Subsequent to September 30, 2017, the Company announced that its quarterly dividend would increase to 33 cents per share, starting with its dividend payable on December 1, 2017.

CONTRACTUAL OBLIGATIONS

There have been no material changes in the Company’s contractual obligations during the quarter ended September 30, 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). In October 2017, the Company extended this program for 1 year and increased the commitment size to $60 million (refer to Note 16, Subsequent Event, included in Part I, Item I of this report).

CRITICAL ACCOUNTING POLICIES

There have been no material changes in the Company’s critical accounting policies during the quarter ended September 30, 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 September 30, 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.
 
There have been no changes in the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the Company’s most recent quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
 
22

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements that reflect management’s current assumptions and estimates of future economic circumstances, industry conditions, Company performance, and financial results.  Forward-looking statements include statements in the future tense, statements referring to any period after September 30, 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, governmental 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.

PART II.
OTHER INFORMATION

ITEM 1.
LEGAL PROCEEDINGS

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
 
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.
 
23

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

The following table provides the specified information about the repurchases of its common shares by the Company during the third quarter of 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
 
                         
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.

ITEM 6.
EXHIBITS
 
See Exhibit Index following this report.
 
24

SENSIENT TECHNOLOGIES CORPORATION
EXHIBIT INDEX
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2017

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
 
25

SIGNATURES

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


   
SENSIENT TECHNOLOGIES CORPORATION
       
Date:
November 7, 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
 
 
26

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:     November 7, 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: 
November 7, 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 September 30, 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:
November 7, 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 September 30, 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:
November 7, 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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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 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&#8217;s long-term strategic plan and it had generated losses for several years. 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Except for certain positions assisting with the facility decommissioning activities, the majority of these positions have been eliminated as of September 30, 2017.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt;">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 &amp; 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&#8217;s long-term strategic plan. 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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 $186 million of restructuring costs through September 30, 2017. 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text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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padding-bottom: 4px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(1,171</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; 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text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">353,519</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 30%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Intersegment revenue</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: right; 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border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">8,404</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">32,708</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; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">361,923</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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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;">Operating income (loss)</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">33,006</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">28,624</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; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">5,780</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">(15,400</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; text-align: right; 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';">52,010</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 30%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Interest expense</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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';">4,946</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; text-align: right; 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';">4,946</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;">Earnings (loss) before income taxes</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; 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';">33,006</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; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">28,624</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">5,780</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; text-align: right; 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; 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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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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;"><u>Three months ended September 30, 2016:</u></div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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text-align: left; width: 1%; background-color: #ffffff;"><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';">349,662</div></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; padding-bottom: 2px; width: 30%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Intersegment revenue</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: right; 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; 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padding-bottom: 2px; text-align: right; 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';">51</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; text-align: right; 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; 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border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">125,732</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; 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padding-bottom: 4px; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">358,600</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><tr><td valign="bottom" style="vertical-align: top; width: 30%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; width: 30%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Operating income (loss)</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; 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';">32,386</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; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">26,522</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">6,251</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; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(14,008</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">51,151</div></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; padding-bottom: 2px; width: 30%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Interest expense</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: right; 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%; 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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; text-align: right; 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; text-align: right; 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; 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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; text-align: right; 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';">14,474</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; text-align: right; 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';">14,474</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; 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text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; width: 30%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: normal; font-style: normal; text-align: left;"><u>Nine months ended September 30, 2016:</u></div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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; 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text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">373,944</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; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">90,294</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">-</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; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,052,966</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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padding-bottom: 4px; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">-</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; text-align: right; 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; 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padding-bottom: 2px; text-align: right; 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';">3,324</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; text-align: right; 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; 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text-align: right; 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';">8,404</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;">Total revenue</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; 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';">195,992</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; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">133,223</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">32,708</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; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">361,923</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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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;">Operating income (loss)</div></td><td valign="bottom" style="vertical-align: bottom; 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font-family: 'Times New Roman';">28,624</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; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">5,780</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">(15,400</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; text-align: right; 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';">52,010</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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padding-bottom: 2px; text-align: right; 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; text-align: right; 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; text-align: right; 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';">4,946</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; text-align: right; 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';">4,946</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;">Earnings (loss) before income taxes</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; 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';">33,006</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; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; 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padding-bottom: 4px; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">(20,346</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; text-align: right; 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';">47,064</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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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;"><u>Three months ended September 30, 2016:</u></div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; width: 30%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Revenue from external customers</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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text-align: right; width: 9%; background-color: #ffffff;"><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; text-align: right; 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';">349,662</div></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; padding-bottom: 2px; width: 30%; background-color: #cceeff;"><div style="font-size: 10pt; 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width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">200,775</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">125,732</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">32,093</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">358,600</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; 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text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 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; text-align: right; 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; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; width: 30%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Operating income (loss)</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">32,386</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">26,522</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; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,251</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; 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text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 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; text-align: right; 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; 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padding-bottom: 2px; text-align: right; 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; text-align: right; 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; 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border-bottom: #000000 4px double; 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: 4px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,059,895</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><tr><td valign="bottom" style="vertical-align: top; width: 30%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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; 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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; text-align: right; 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; 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padding-bottom: 4px; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">14,750</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(86,988</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: right; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">105,953</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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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; text-align: right; 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; text-align: right; 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; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: top; width: 30%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: normal; font-style: normal; text-align: left;"><u>Nine months ended September 30, 2016:</u></div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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; text-align: right; 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;">Revenue from external customers</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; 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';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">588,728</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; 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text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">90,294</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</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';">-</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; text-align: right; 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; padding-bottom: 4px; text-align: right; 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';">128,314</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></table><div><br /></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. <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">See </font>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 and 2016 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. <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">See</font> Note 13, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Divestiture</font>.</div></div> 220505000 242478000 70725000 71412000 -599000 -599000 29000 0 288000 0 738000 0 288000 738000 29000 0 6296000 6743000 20092000 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 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.&#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.&#160; 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.&#160; 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&#8217;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&#8217;s segments.&#160; 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. 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Forward exchange contracts, liability Net loss on assets Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property Loss on sale of business GOODWILL Goodwill Hedging Relationship [Domain] Intersegment Revenue [Member] Intersegment Eliminations [Member] Long-lived asset impairment Impairment of Long-Lived Assets Held-for-use Impairment charges Earnings from continuing operations Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent Income Taxes [Abstract] 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 Continuing operations (in dollars per share) 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 Discontinued operations (in dollars per share) CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract] Income Taxes Income Tax Disclosure [Text Block] Income taxes Income Tax Expense (Benefit) Gain from discontinued operations, net of tax Gain 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 Inventories, including finished and in-process products Inventories Inventory Disclosure [Text Block] Write-down of inventory Inventory Write-down Inventories Inventory, Net Inventories [Abstract] Raw materials and supplies Investments Land Land TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities and Equity Liabilities held for sale LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities and Equity [Abstract] TOTAL CURRENT LIABILITIES Liabilities, Current CURRENT LIABILITIES: Liabilities, Current [Abstract] Credit facility maturity date Credit facility amount Long Lived Assets Held-for-sale [Line Items] Long term debt LONG-TERM DEBT Long-term Debt, Excluding Current Maturities Machinery and equipment Machinery and Equipment, Gross Maximum [Member] North America [Member] Net cash used in financing activities Net Cash Provided by (Used in) Financing Activities Cash flows from financing activities: Net Cash Provided by (Used in) Financing Activities [Abstract] Cash flows from investing activities: Net Cash Provided by (Used in) Investing Activities [Abstract] Cash flows from operating activities: Net cash used in investing activities Net Cash Provided by (Used in) Investing Activities Net cash provided by operating activities Net Cash Provided by (Used in) Operating Activities Net earnings Net earnings Net Income (Loss) Attributable to Parent Other comprehensive (loss) income before 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 Dividends paid Payments of Ordinary Dividends, Common Stock Cash spent Payments for Restructuring Purchase of treasury stock Payments for Repurchase of 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 the sale of facility and related business lines Proceeds from divestiture of businesses 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 [Domain] Range [Axis] Amounts reclassified from OCI Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent Debt payments Repayments of Debt Restructuring Plan [Axis] Restructuring [Abstract] Restructuring Plan [Domain] Translation adjustment Restructuring Reserve, Foreign Currency Translation Gain (Loss) Total restructuring Restructuring Charges Restructuring Restructuring Type [Axis] Detail of the restructuring costs [Abstract] Restructuring and Related Activities [Abstract] Balance as of beginning of period Balance as of end of period Restructuring Reserve Summary of accrual for restructuring and other charges [Roll Forward] Restructuring Reserve [Roll Forward] Future restructuring costs, 2017 Restructuring and Related Cost, Expected Cost Remaining Position reduction due to restructuring Restructuring Cost and Reserve [Line Items] Total restructuring costs incurred to date Earnings reinvested in the business Retained Earnings (Accumulated Deficit) Retirement Plan Type [Domain] Retirement Plan Type [Axis] Total revenue Revolving Credit Facility [Member] Revenue from external customers Revenue Sales Revenue, Goods, Net Components of Annual Benefit Cost Summary of Changes in OCI 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] Schedule of Restructuring and Related Costs [Table] Summary of Accrual for Restructuring and Other Charges Schedule of Restructuring Reserve by Type of Cost [Table Text Block] Summary of Restructuring Costs Restructuring and Related Costs [Table Text Block] Segment Information Schedule of Segment Reporting Information, by Segment [Table] Segment Information Segment Reporting Disclosure [Text Block] Segment Information [Abstract] Segments [Domain] Segment [Domain] Segment Reporting Information [Line Items] Discontinued Operations [Member] Operating Activities [Domain] Geographical [Domain] Continuing Operations [Member] Selling, General and Administrative Expenses [Member] Selling & Administrative [Member] Selling and administrative expenses Employee separation Severance Costs Share-based compensation Short-term borrowings Short-term Debt Accounting Policies Significant Accounting Policies [Text Block] Geographical [Axis] CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) [Abstract] Segments [Axis] CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) [Abstract] Operating Activities [Axis] Equity Components [Axis] TOTAL SHAREHOLDERS' EQUITY Ending balance Beginning balance Stockholders' Equity Attributable to Parent SHAREHOLDERS' EQUITY: Stockholders' Equity Attributable to Parent [Abstract] Shareholders' Equity [Abstract] Subsequent Events [Abstract] Subsequent Event Type [Domain] Subsequent Event Type [Axis] Subsequent Events Subsequent Event [Line Items] Subsequent Event [Table] Subsequent Event [Member] Accounts Receivable Securitization [Abstract] Accounts Receivable Securitization 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 Treasury stock, at cost Treasury Stock, Value Shareholders' Equity Common stock repurchased during the period (in shares) Type of Restructuring [Domain] Basic (in shares) Weighted Average Number of Shares Outstanding, Basic Diluted (in shares) Weighted Average Number of Shares Outstanding, Diluted Weighted average number of shares outstanding: Weighted Average Number of Shares Outstanding, Diluted [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 The incremental amount of proceeds owed to the reporting entity by a third party for the sale of trade receivables. Incremental Proceeds Received By The Company For The Sale Of Trade Receivables From A Third Party Incremental proceeds from accounts receivable securitization program Number of months for contracts to mature. Number of months for contracts to mature Number of months for contracts to mature Derivative instruments and hedging activity for the period [Abstract] 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 a loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate. Term loans almost always mature between one and 10 years. Term Loan [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 Three [Member] 1.27% Senior Note [Member] Refers to number of fixed notes issued by the entity. Number of Fixed Notes Number of fixed-rate notes 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 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 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 Accounts receivable sold via securitization program. Accounts Receivable Sold Via Securitization Program Accounts receivable securitization program The business within the flavors and fragrances segment. European Natural Ingredients Business [Member] European Natural Ingredients Business [Member] Number of facilities closed associated with the defined benefit plan. Number of Facilities Closed Associated With Defined Benefit Plan Number of facilities closed associated with the defined benefit plan Refers to expected incremental savings realized during period. Expected Incremental Saving Realized Expected incremental saving realized Amount of expenses associated with exit or disposal activities pursuant to an authorized plan. Restructuring Expense Activity Expense activity The 2014 restructuring program. 2014 Restructuring plan [Member] 2014 Restructuring Plan [Member] Refers to cost of savings which as been realized in portions. Realized cost of savings 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 Refers to number of facility for sale. Number of Facility for Sale Number of facilities for sale 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 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 Restructuring Cost By Segment [Abstract] Restructuring cost by segment [Abstract] Represents the facilities identified for closure. Facilities identified for closure Facilities identified for closure 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 Amount of costs incurred for the long lived asset impairments. Long Lived Asset Impairments Recorded Long-lived asset impairment Represents the facilities identified for consolidation in segments. Facilities identified for consolidation Document and Entity Information [Abstract] Cash flow amount before tax of reclassification adjustment from accumulated other comprehensive income for translation gain (loss) realized upon the sale or liquidation of an investment in a foreign entity and foreign currency hedges that are designated and qualified as hedging instruments for hedges of the foreign currency exposure of a net investment in a foreign operation. Cash Flow For Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From AOCI Realized Upon Sale Or Liquidation Before Tax Liquidation of foreign entity 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 Disclosure about carrying value of the assets and liabilities comprising the disposal group. Divestiture [Text Block] Divestiture Divestiture [Abstract] Amount of obligations incurred for noncurrent employer-related costs. Employee Related Liabilities Non Current ACCRUED EMPLOYEE AND RETIREE BENEFITS Information on the color segment. Color [Member] Color [Member] Information on the flavors and fragrances segment. Flavors And Fragrances [Member] Flavors & Fragrances [Member] EX-101.PRE 9 sxt-20170930_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 10 R1.htm IDEA: XBRL DOCUMENT v3.8.0.1
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  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract]        
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 0 0 0 3,343
Net earnings $ 32,213 $ 35,619 $ 76,179 $ 94,906
Weighted average number of shares outstanding:        
Basic (in shares) 43,624 44,532 43,947 44,604
Diluted (in shares) 43,864 44,816 44,209 44,873
Basic:        
Continuing operations (in dollars per share) $ 0.74 $ 0.80 $ 1.73 $ 2.05
Discontinued operations (in dollars per share) 0 0 0 0.07
Earnings per common share (in dollars per share) 0.74 0.80 1.73 2.13
Diluted:        
Continuing operations (in dollars per share) 0.73 0.79 1.72 2.04
Discontinued operations (in dollars per share) 0 0 0 0.07
Earnings per common share (in dollars per share) 0.73 0.79 1.72 2.11
Dividends declared per common share (in dollars per share) $ 0.30 $ 0.27 $ 0.90 $ 0.81
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.8.0.1
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
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 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
Property, plant and equipment, gross 1,070,583 1,022,022
Less accumulated depreciation (585,822) (545,499)
Property, plant and equipment, net 484,761 476,523
TOTAL ASSETS 1,738,865 1,667,860
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 0 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
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2017
Sep. 30, 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 0
Deferred income taxes (9,087) 8,454
Liquidation of foreign entity 0 (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 0
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
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accounting Policies
9 Months Ended
Sep. 30, 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 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.
XML 16 R7.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value
9 Months Ended
Sep. 30, 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 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.
XML 17 R8.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segment Information
9 Months Ended
Sep. 30, 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 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
 

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.
XML 18 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1
Inventories
9 Months Ended
Sep. 30, 2017
Inventories [Abstract]  
Inventories
4.
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.
XML 19 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
Retirement Plans
9 Months Ended
Sep. 30, 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
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
 

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.
XML 20 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
Shareholders' Equity
9 Months Ended
Sep. 30, 2017
Shareholders' Equity [Abstract]  
Shareholders' Equity
6.
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.
XML 21 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivative Instruments and Hedging Activity
9 Months Ended
Sep. 30, 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 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.
XML 22 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
Income Taxes
9 Months Ended
Sep. 30, 2017
Income Taxes [Abstract]  
Income Taxes
8.
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.
XML 23 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accumulated Other Comprehensive Income
9 Months Ended
Sep. 30, 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- and nine-month periods ended September 30, 2017:

(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.
 
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).
XML 24 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accounts Receivable Securitization
9 Months Ended
Sep. 30, 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 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.
XML 25 R16.htm IDEA: XBRL DOCUMENT v3.8.0.1
Restructuring
9 Months Ended
Sep. 30, 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 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:

  
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
 
 
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

 
(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.
 
Nine Months Ended September 30, 2017

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

Three Months Ended September 30, 2016
 
 
(In thousands)
  
Selling &
Administrative
    
Cost of
Products Sold
     
Total
  
Employee separation
 
$
288
  
$
-
  
$
288
 
Long-lived asset impairment
  
(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.

Nine Months Ended September 30, 2016

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

 
(1)
Other costs include decommissioning costs, professional services, temporary labor, moving costs, and other related costs.
 
The following table summarizes the accrual activities for the restructuring activities for the nine months ended September 30, 2017:

 
(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.
XML 26 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
Discontinued Operations
9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2017 and 2016:

  
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
 
XML 27 R18.htm IDEA: XBRL DOCUMENT v3.8.0.1
Divestiture
9 Months Ended
Sep. 30, 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. 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.
XML 28 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1
Debt
9 Months Ended
Sep. 30, 2017
Debt [Abstract]  
Debt
14.
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.
XML 29 R20.htm IDEA: XBRL DOCUMENT v3.8.0.1
Commitments and Contingencies
9 Months Ended
Sep. 30, 2017
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
15.
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.
XML 30 R21.htm IDEA: XBRL DOCUMENT v3.8.0.1
Subsequent Events
9 Months Ended
Sep. 30, 2017
Subsequent Events [Abstract]  
Subsequent Events
16.
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.
XML 31 R22.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segment Information (Tables)
9 Months Ended
Sep. 30, 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 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
 
XML 32 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Retirement Plans (Tables)
9 Months Ended
Sep. 30, 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
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
 
XML 33 R24.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accumulated Other Comprehensive Income (Tables)
9 Months Ended
Sep. 30, 2017
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:

(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.
XML 34 R25.htm IDEA: XBRL DOCUMENT v3.8.0.1
Restructuring (Tables)
9 Months Ended
Sep. 30, 2017
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:

  
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
 
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

 
(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.
 
Nine Months Ended September 30, 2017

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

Three Months Ended September 30, 2016
 
 
(In thousands)
  
Selling &
Administrative
    
Cost of
Products Sold
     
Total
  
Employee separation
 
$
288
  
$
-
  
$
288
 
Long-lived asset impairment
  
(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.

Nine Months Ended September 30, 2016

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

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

 
(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.
XML 35 R26.htm IDEA: XBRL DOCUMENT v3.8.0.1
Discontinued Operations (Tables)
9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2017 and 2016:

  
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
 
XML 36 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value (Details) - USD ($)
$ in Millions
Sep. 30, 2017
Dec. 31, 2016
Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments $ 0.2 $ 1.8
Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Forward exchange contracts, liability 0.2 $ 0.2
Level 2 [Member] | Carrying Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long term debt 607.4  
Level 2 [Member] | Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long term debt $ 624.1  
XML 37 R28.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segment Information (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Segment Reporting Information [Line Items]        
Revenue from external customers $ 353,519 $ 349,662 $ 1,033,391 $ 1,052,966
Total revenue 361,923 358,600 1,059,895 1,083,585
Operating income (loss) 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
Flavors & Fragrances [Member]        
Segment Reporting Information [Line Items]        
Total revenue 195,992 200,775 568,423 608,747
Color [Member]        
Segment Reporting Information [Line Items]        
Total revenue 133,223 125,732 400,183 384,415
Asia Pacific [Member]        
Segment Reporting Information [Line Items]        
Total revenue 32,708 32,093 91,289 90,423
Corporate and Other [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 0 0 0 0
Total revenue 0 0 0 0
Operating income (loss) (15,400) (14,008) (72,514) (53,606)
Interest expense 4,946 4,584 14,474 14,021
Earnings before income taxes (20,346) (18,592) (86,988) (67,627)
Operating Segments [Member] | Flavors & Fragrances [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 191,063 195,318 552,874 588,728
Operating income (loss) 33,006 32,386 90,278 95,494
Interest expense 0 0 0 0
Earnings before income taxes 33,006 32,386 90,278 95,494
Operating Segments [Member] | Color [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 129,899 122,302 389,992 373,944
Operating income (loss) 28,624 26,522 87,913 82,947
Interest expense 0 0 0 0
Earnings before income taxes 28,624 26,522 87,913 82,947
Operating Segments [Member] | Asia Pacific [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 32,557 32,042 90,525 90,294
Operating income (loss) 5,780 6,251 14,750 17,500
Interest expense 0 0 0 0
Earnings before income taxes 5,780 6,251 14,750 17,500
Intersegment Revenue [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 8,404 8,938 26,504 30,619
Intersegment Revenue [Member] | Flavors & Fragrances [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 4,929 5,457 15,549 20,019
Intersegment Revenue [Member] | Color [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 3,324 3,430 10,191 10,471
Intersegment Revenue [Member] | Asia Pacific [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers 151 51 764 129
Intersegment Revenue [Member] | Corporate and Other [Member]        
Segment Reporting Information [Line Items]        
Revenue from external customers $ 0 $ 0 $ 0 $ 0
XML 38 R29.htm IDEA: XBRL DOCUMENT v3.8.0.1
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
XML 39 R30.htm IDEA: XBRL DOCUMENT v3.8.0.1
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
XML 40 R31.htm IDEA: XBRL DOCUMENT v3.8.0.1
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
XML 41 R32.htm IDEA: XBRL DOCUMENT v3.8.0.1
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    
XML 42 R33.htm IDEA: XBRL DOCUMENT v3.8.0.1
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%
XML 43 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Accumulated Other Comprehensive Income (Details)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
USD ($)
Sep. 30, 2017
USD ($)
Accumulated Other Comprehensive Loss [Roll Forward]    
Beginning balance   $ 835,741
Other comprehensive (loss) income before reclassifications $ 12,390 56,849
Amounts reclassified from OCI (4) 8,025
Ending balance 879,532 879,532
Flavors & Fragrances [Member]    
Accumulated Other Comprehensive Loss [Roll Forward]    
Translation adjustment functional to reporting currency, net of tax (2,800) (2,800)
European Natural Ingredients Business [Member]    
Accumulated Other Comprehensive Loss [Roll Forward]    
Translation adjustment functional to reporting currency, net of tax (4,000) (4,000)
Accumulated Other Comprehensive (Loss) Income [Member]    
Accumulated Other Comprehensive Loss [Roll Forward]    
Beginning balance (160,977) (213,465)
Ending balance (148,591) (148,591)
Cash Flow Hedges [Member]    
Accumulated Other Comprehensive Loss [Roll Forward]    
Beginning balance 161 [1] (85) [1]
Other comprehensive (loss) income before reclassifications (437) [1] (46) [1]
Amounts reclassified from OCI 22 [1] (123) [1]
Ending balance (254) [1] (254) [1]
Pension Items [Member]    
Accumulated Other Comprehensive Loss [Roll Forward]    
Beginning balance (1,145) [1] (2,537) [1]
Other comprehensive (loss) income before reclassifications 0 [1] 0 [1]
Amounts reclassified from OCI (26) [1] 1,366 [1]
Ending balance (1,171) [1] (1,171) [1]
Translation adjustment functional to reporting currency, net of tax (1,500) (1,500)
Foreign Currency Items [Member]    
Accumulated Other Comprehensive Loss [Roll Forward]    
Beginning balance (159,993) (210,843)
Other comprehensive (loss) income before reclassifications 12,827 56,895
Amounts reclassified from OCI 0 6,782
Ending balance $ (147,166) $ (147,166)
[1] Cash Flow Hedges and Pension Items are net of tax.
XML 44 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
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
XML 45 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
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  
[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.
[2] 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.
[3] Other costs include decommissioning costs, professional services, temporary labor, moving costs, and other related costs.
XML 46 R37.htm IDEA: XBRL DOCUMENT v3.8.0.1
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
XML 47 R38.htm IDEA: XBRL DOCUMENT v3.8.0.1
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
XML 48 R39.htm IDEA: XBRL DOCUMENT v3.8.0.1
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  
XML 49 R40.htm IDEA: XBRL DOCUMENT v3.8.0.1
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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