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Operational Improvement Plan
 9 Months Ended
Sep. 30, 2021
Operational Improvement Plan [Abstract]  
Operational Improvement Plan
3.
Operational Improvement Plan

During the third quarter of 2020, the Company approved an operational improvement plan (Operational Improvement Plan) to consolidate manufacturing facilities and improve efficiencies within the Company. As part of the Operational Improvement Plan, the Company is combining its New Jersey cosmetics manufacturing facility in the Personal Care product line of the Color segment into its existing Color segment facility in Missouri. In addition, the Company is centralizing certain Flavors & Extracts segment support functions in Europe into one location. In the Asia Pacific segment, the Company incurred costs in connection with the elimination of certain selling and administrative positions.
During the second quarter of 2021, the Company received cash proceeds, net of associated expenses, in connection with the termination of a New Jersey office and laboratory space lease. The terminated lease was originally executed in November 2020 as part of the Operational Improvement Plan; however, the landlord for the property requested to terminate the lease prior to the end of its term and compensated the Company as part of a negotiated resolution for that termination. The Company reports all costs and income associated with the Operational Improvement Plan in Corporate & Other.
The following table summarizes the Operational Improvement Plan income and expenses recorded in Selling and Administrative Expenses by segment for the three months ended September 30, 2021:
(In thousands)
  
Flavors & Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Employee separation costs
  
$
1
    
$
(120
)
  
$
(4
)
  
$
(123
)
Other costs
    
-
      
605
      
1
      
606
  
Total expense (income)
  
$
1
    
$
485
    
$
(3
)
  
$
483
  

The following table summarizes the Operational Improvement Plan expenses recorded in Selling and Administrative Expenses by segment for the nine months ended September 30, 2021:

(In thousands)
  
Flavors & Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Employee separation costs
  
$
(15
)
  
$
(40
)
  
$
(72
)
  
$
(127
)
Other income(1)
    
-
      
(3,624
)
    
-
      
(3,624
)
Other costs(2)
    
-
      
1,739
      
2
      
1,741
  
Total expense (income)
  
$
(15
)
  
$
(1,925
)
  
$
(70
)
  
$
(2,010
)


(1)
Other income includes cash received for the early termination of a lease less associated expenses.

(2)
Other costs include professional services, accelerated depreciation, and other related costs.

The following table summarizes the Operational Improvement Plan expenses by segment for the three and nine months ended September 30, 2020:
 

(In thousands)
  
Flavors & Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Employee separation costs – Selling and administrative expenses
  
$
337
    
$
1,477
    
$
610
    
$
2,424
  
Other costs – Selling and administrative expenses(1)
    
-
      
182
      
-
      
182
  
Other costs – Cost of products sold
    
-
      
35
      
-
      
35
  
Total expense  
$
337
    
$
1,694
    
$
610
    
$
2,641
  


(1) Other costs include professional services, accelerated depreciation, and other related costs.

As of September 30, 2021 and December 31, 2020, the Company recorded $1.0 million and $2.2 million, respectively, of accrued liabilities in Other Accrued Expenses on the Company’s Consolidated Balance Sheet related to this plan. As of September 30, 2021, the Company estimates remaining 2021 Operational Improvement Plan costs will not be significant.