QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended:
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from
|
to
|
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
Registrant's telephone number, including area code:
|
(
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
Accelerated Filer ☐
|
Non-Accelerated Filer ☐
|
Smaller Reporting Company
|
Emerging Growth Company
|
Class
|
Outstanding at October 20, 2021
|
|
Common Stock, par value $0.10 per share
|
|
|
|
Page No.
|
|
|
|
PART I. FINANCIAL INFORMATION:
|
|
|
|
|
|
Item 1.
|
Financial Statements:
|
|
|
1
|
|
|
|
|
|
2
|
|
|
|
|
|
3
|
|
|
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|
|
4
|
|
|
|
|
|
5
|
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|
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|
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6
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|
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|
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Item 2.
|
19
|
|
|
|
|
Item 3.
|
26
|
|
|
|
|
Item 4.
|
26
|
|
|
|
|
PART II. OTHER INFORMATION:
|
|
|
|
|
|
Item 1.
|
27
|
|
|
|
|
Item 1A.
|
27
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|
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Item 2.
|
27
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Item 6.
|
27
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|
|
|
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|
28
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|
|
|
|
29
|
PART I. |
FINANCIAL INFORMATION
|
ITEM 1. |
FINANCIAL STATEMENTS
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Cost of products sold
|
|
|
|
|
||||||||||||
Selling and administrative expenses
|
|
|
|
|
||||||||||||
Operating income
|
|
|
|
|
||||||||||||
Interest expense
|
|
|
|
|
||||||||||||
Earnings before income taxes
|
|
|
|
|
||||||||||||
Income taxes
|
|
|
|
|
||||||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||
Basic
|
|
|
|
|
||||||||||||
Diluted
|
|
|
|
|
||||||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Dividends declared per common share
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Comprehensive income
|
$
|
|
$
|
|
$
|
|
$
|
|
Assets
|
September 30,
2021
(Unaudited)
|
December 31, 2020
|
||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Trade accounts receivable
|
|
|
||||||
Inventories
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Assets held for sale
|
|
|
||||||
Total current assets
|
|
|
||||||
Other assets
|
|
|
||||||
Deferred tax assets
|
|
|
||||||
Intangible assets, net
|
|
|
||||||
Goodwill
|
|
|
||||||
Property, Plant, and Equipment:
|
||||||||
Land
|
|
|
||||||
Buildings
|
|
|
||||||
Machinery and equipment
|
|
|
||||||
Construction in progress
|
|
|
||||||
|
|
|||||||
Less accumulated depreciation
|
(
|
)
|
(
|
)
|
||||
|
|
|||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities
and Shareholders’ Equity
|
||||||||
Current Liabilities:
|
||||||||
Trade accounts payable
|
$
|
|
$
|
|
||||
Accrued salaries, wages, and withholdings from employees
|
|
|
||||||
Other accrued expenses
|
|
|
||||||
Income taxes
|
|
|
||||||
Short-term borrowings
|
|
|
||||||
Liabilities held for sale
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Deferred tax liabilities
|
|
|
||||||
Other liabilities
|
|
|
||||||
Accrued employee and retiree benefits
|
|
|
||||||
Long-term debt
|
|
|
||||||
Shareholders’ Equity:
|
||||||||
Common stock
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Earnings reinvested in the business
|
|
|
||||||
Treasury stock, at cost
|
(
|
)
|
(
|
)
|
||||
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
Nine Months
Ended September 30,
|
||||||||
2021
|
2020
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
|
$
|
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Share-based compensation expense
|
|
|
||||||
Net loss (gain) on assets
|
|
(
|
)
|
|||||
Loss on divestitures and other charges
|
|
|
||||||
Deferred income taxes
|
|
(
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Trade accounts receivable
|
(
|
)
|
(
|
)
|
||||
Inventories
|
(
|
)
|
|
|||||
Prepaid expenses and other assets
|
(
|
)
|
(
|
)
|
||||
Accounts payable and other accrued expenses
|
|
|
||||||
Accrued salaries, wages, and withholdings from employees
|
|
|
||||||
Income taxes
|
(
|
)
|
(
|
)
|
||||
Other liabilities
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant, and equipment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sale of assets
|
|
|
||||||
Proceeds from divesture of businesses
|
|
|
||||||
Acquisition of new businesses
|
( |
) | ||||||
Other investing activities
|
|
|
||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
|
|
||||||
Debt payments
|
(
|
)
|
(
|
)
|
||||
Purchase of treasury stock
|
(
|
)
|
|
|||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Other financing activities
|
(
|
)
|
(
|
)
|
||||
Net cash used in financing activities
|
(
|
)
|
(
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(
|
)
|
(
|
)
|
||||
Net increase in cash and cash equivalents
|
|
|
||||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
Common
|
Additional
Paid-In
|
Earnings Reinvested
|
Treasury Stock
|
Accumulated
Other
Comprehensive
|
Total
|
|||||||||||||||||||||||
Three Months Ended September 30, 2021
|
Stock
|
Capital
|
in the Business
|
Shares
|
Amount
|
Income (Loss)
|
Equity
|
|||||||||||||||||||||
Balances at June 30, 2021
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Net earnings
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other comprehensive loss
|
|
|
|
-
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Cash dividends paid – $
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Share-based compensation
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Purchase of treasury stock
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||
Balances at September 30, 2021
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Three Months Ended September 30, 2020
|
||||||||||||||||||||||||||||
Balances at June 30, 2020
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Net earnings
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other comprehensive income
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Cash dividends paid – $
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Share-based compensation
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balances at September 30, 2020
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Nine Months Ended September 30, 2021
|
||||||||||||||||||||||||||||
Balances at December 31, 2020
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Net earnings
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other comprehensive loss
|
|
|
|
-
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Cash dividends paid – $
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Share-based compensation
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Non-vested stock issued upon vesting
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||||||||||||||||
Benefit plans
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
Purchase of treasury stock
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||
Other
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||
Balances at September 30, 2021
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Nine Months Ended September 30, 2020
|
||||||||||||||||||||||||||||
Balances at December 31, 2019
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
|||||||||||||
Net earnings
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Other comprehensive loss
|
|
|
|
-
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Cash dividends paid – $
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Share-based compensation
|
|
|
|
-
|
|
|
|
|||||||||||||||||||||
Non-vested stock issued upon vesting
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||||||||||||||||
Benefit plans
|
|
|
|
(
|
)
|
|
|
|
||||||||||||||||||||
Adoption of ASU 2016-13
|
|
|
(
|
)
|
-
|
|
|
(
|
)
|
|||||||||||||||||||
Other
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||
Balances at September 30, 2020
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
1.
|
Accounting Policies
|
2. |
Divestitures
|
(In thousands)
|
December 31,
2020
|
|||
Assets held
for sale:
|
||||
Trade
accounts receivable
|
$
|
|
||
Inventories
|
|
|||
Prepaid
expenses and other current assets
|
|
|||
Property,
plant, and equipment, net
|
|
|||
Intangible
assets
|
|
|||
Assets held
for sale
|
$
|
|
||
Liabilities
held for sale:
|
||||
Trade
accounts payable
|
$
|
|
||
Accrued
salaries, wages, and withholdings from employees
|
|
|||
Other
accrued expenses
|
|
|||
Liabilities
held for sale
|
$
|
|
(In
thousands)
|
Yogurt Fruit Preparations
|
Fragrances
|
Inks
|
Corporate/
Other
|
Total
|
|||||||||||||||
Other costs -
Selling and administrative expenses(1)
|
$ |
|
$ |
|
$ |
(
|
)
|
$ |
|
$ |
|
(1) |
|
(In
thousands)
|
Yogurt Fruit Preparations
|
Fragrances
|
Inks
|
Corporate/
Other
|
Total
|
|||||||||||||||
Other costs -
Selling and administrative expenses(1)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
Other costs – Cost of Products Sold | ( |
) | ( |
) | ||||||||||||||||
Total
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
(1) |
|
(In
thousands)
|
Yogurt Fruit Preparations
|
Fragrances
|
Inks
|
Corporate/
Other
|
Total
|
|||||||||||||||
Non-cash
impairment charges – Selling and administrative expenses
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Non-cash
charges – Cost of products sold
|
|
|
(
|
)
|
|
|
||||||||||||||
Reclassification
of foreign currency translation and related items – Selling and administrative expenses
|
|
|
|
|
|
|||||||||||||||
Other costs -
Selling and administrative expenses(1)
|
|
|
(
|
)
|
|
|
||||||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
(1) |
|
(In
thousands)
|
Yogurt Fruit Preparations
|
Fragrances
|
Inks
|
Corporate/
Other
|
Total
|
|||||||||||||||
Non-cash
impairment charges – Selling and administrative expenses
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Non-cash
charges – Cost of products sold
|
|
|
(
|
)
|
|
|
||||||||||||||
Reclassification
of foreign currency translation and related items – Selling and administrative expenses
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||
Other costs -
Selling and administrative expenses(1)
|
(
|
)
|
|
|
|
|
||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|
3. |
Operational Improvement Plan
|
(In thousands)
|
Flavors & Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Employee separation costs
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Other costs
|
|
|
|
|
||||||||||||
Total expense (income)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(In thousands) |
Flavors & Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Employee separation costs
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Other income(1)
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Other costs(2)
|
|
|
|
|
||||||||||||
Total expense (income)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(1) |
|
|
(2) |
|
(In thousands) |
Flavors & Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Employee separation costs – Selling and administrative
expenses
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other costs – Selling and administrative
expenses(1)
|
|
|
|
|
||||||||||||
Other costs – Cost of products sold
|
|
|
|
|
||||||||||||
Total expense |
$
|
|
$
|
|
$
|
|
$
|
|
|
(1) | |
4. |
Acquisition
|
5.
|
Trade Accounts Receivable
|
(In thousands)
Three Months Ended September 30, 2021
|
Allowance for
Doubtful Accounts
|
|||
Balance at June
30, 2021
|
$
|
|
||
Provision for
expected credit losses
|
|
|||
Accounts
written off
|
(
|
)
|
||
Translation and
other activity
|
(
|
)
|
||
Balance at
September 30, 2021
|
$
|
|
(In thousands)
Three Months Ended September 30, 2020
|
Allowance for
Doubtful Accounts
|
|||
Balance at June 30, 2020
|
$
|
|
||
Provision for
expected credit losses
|
|
|||
Accounts
written off
|
(
|
)
|
||
Translation and
other activity
|
|
|||
Balance at
September 30, 2020
|
$
|
|
(In thousands)
Nine
Months Ended September 30, 2021
|
Allowance for
Doubtful Accounts
|
|||
Balance at
December 31, 2020
|
$
|
|
||
Provision for
expected credit losses
|
|
|||
Accounts
written off
|
(
|
)
|
||
Translation and
other activity
|
(
|
)
|
||
Balance at
September 30, 2021
|
$
|
|
(In thousands)
Nine
Months Ended September 30, 2020
|
Allowance for
Doubtful Accounts
|
|||
Balance at
December 31, 2019
|
$
|
|
||
Adoption of ASU 2016-13 | ||||
Provision for
expected credit losses
|
|
|||
Accounts
written off
|
( |
) | ||
Divestiture |
( |
) | ||
Translation and
other activity
|
( |
) | ||
Balance at
September 30, 2020
|
$ |
6. |
Inventories
|
7. |
Debt
|
8. |
Fair Value
|
9. |
Segment Information
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia
Pacific
|
Corporate
& Other
|
Consolidated
|
|||||||||||||||
Three months ended September 30, 2021:
|
||||||||||||||||||||
Revenue from
external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment
revenue
|
|
|
|
|
|
|||||||||||||||
Total revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Operating
income (loss)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Interest
expense
|
|
|
|
|
|
|||||||||||||||
Earnings (loss)
before income taxes
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Three months ended September 30, 2020:
|
||||||||||||||||||||
Revenue from
external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment
revenue
|
|
|
|
|
|
|||||||||||||||
Total revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Operating
income (loss)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Interest
expense
|
|
|
|
|
|
|||||||||||||||
Earnings (loss)
before income taxes
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia
Pacific
|
Corporate
& Other
|
Consolidated
|
|||||||||||||||
Nine months ended September 30,
2021:
|
||||||||||||||||||||
Revenue from
external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment
revenue
|
|
|
|
|
|
|||||||||||||||
Total revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Operating
income (loss)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Interest
expense
|
|
|
|
|
|
|||||||||||||||
Earnings (loss)
before income taxes
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Nine months ended September 30,
2020:
|
||||||||||||||||||||
Revenue from
external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment
revenue
|
|
|
|
|
|
|||||||||||||||
Total revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Operating
income (loss)
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Interest
expense
|
|
|
|
|
|
|||||||||||||||
Earnings (loss)
before income taxes
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Three months ended September 30, 2021:
|
||||||||||||||||
Flavors,
Extracts & Flavor Ingredients
|
$
|
|
$
|
-
|
$
|
-
|
$
|
|
||||||||
Natural
Ingredients
|
|
-
|
-
|
|
||||||||||||
Yogurt Fruit
Preparations
|
|
-
|
-
|
|
||||||||||||
Food &
Pharmaceutical Colors
|
-
|
|
-
|
|
||||||||||||
Personal Care
|
-
|
|
-
|
|
||||||||||||
Inks
|
-
|
|
-
|
|
||||||||||||
Asia Pacific
|
-
|
-
|
|
|
||||||||||||
Intersegment
Revenue
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Three months ended September 30, 2020:
|
||||||||||||||||
Flavors,
Extracts & Flavor Ingredients
|
$
|
|
$
|
-
|
$
|
-
|
$
|
|
||||||||
Natural
Ingredients
|
|
-
|
-
|
|
||||||||||||
Fragrances
|
|
-
|
-
|
|
||||||||||||
Yogurt Fruit
Preparations
|
|
-
|
-
|
|
||||||||||||
Food &
Pharmaceutical Colors
|
-
|
|
-
|
|
||||||||||||
Personal Care
|
-
|
|
-
|
|
||||||||||||
Inks
|
-
|
|
-
|
|
||||||||||||
Asia Pacific
|
-
|
-
|
|
|
||||||||||||
Intersegment
Revenue
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Nine months ended September 30,
2021:
|
||||||||||||||||
Flavors,
Extracts & Flavor Ingredients
|
$
|
|
$
|
-
|
$
|
-
|
$
|
|
||||||||
Natural
Ingredients
|
|
-
|
-
|
|
||||||||||||
Fragrances
|
|
-
|
-
|
|
||||||||||||
Yogurt Fruit
Preparations
|
|
-
|
-
|
|
||||||||||||
Food &
Pharmaceutical Colors
|
-
|
|
-
|
|
||||||||||||
Personal Care
|
-
|
|
-
|
|
||||||||||||
Inks
|
-
|
|
-
|
|
||||||||||||
Asia Pacific
|
-
|
-
|
|
|
||||||||||||
Intersegment
Revenue
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Nine months ended September 30, 2020:
|
||||||||||||||||
Flavors,
Extracts & Flavor Ingredients
|
$
|
|
$
|
-
|
$
|
-
|
$
|
|
||||||||
Natural
Ingredients
|
|
-
|
-
|
|
||||||||||||
Fragrances
|
|
-
|
-
|
|
||||||||||||
Yogurt Fruit
Preparations
|
|
-
|
-
|
|
||||||||||||
Food &
Pharmaceutical Colors
|
-
|
|
-
|
|
||||||||||||
Personal Care
|
-
|
|
-
|
|
||||||||||||
Inks
|
-
|
|
-
|
|
||||||||||||
Asia Pacific
|
-
|
-
|
|
|
||||||||||||
Intersegment
Revenue
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Three months ended September 30, 2021:
|
||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Three months ended September 30, 2020:
|
||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Nine months ended September 30,
2021:
|
||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Nine months ended September 30,
2020:
|
||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Europe
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total revenue
from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
|
10. |
Retirement Plans
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
(In thousands)
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
Service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest cost
|
|
|
|
|
||||||||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Recognized actuarial loss
|
|
|
|
|
||||||||||||
Total defined benefit expense
|
$
|
|
$
|
|
$
|
|
$
|
|
11. |
Derivative Instruments and Hedging
Activity
|
12. |
Income Taxes
|
13. |
Accumulated Other Comprehensive Income
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balances at December 31, 2020
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss)
before reclassifications
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Amounts reclassified from OCI
|
(
|
)
|
|
|
|
|||||||||||
Balances at September 30, 2021
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balances at June 30, 2021
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Other comprehensive loss before
reclassifications
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Amounts reclassified from OCI
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Balances at September 30, 2021
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balances at December 31, 2019
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Other comprehensive loss before
reclassifications
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Amounts reclassified from OCI
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Balances at September 30, 2020
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balances at June 30, 2020
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Other comprehensive income before
reclassifications
|
|
|
|
|
||||||||||||
Amounts reclassified from OCI
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Balances at September 30, 2020
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(1) |
|
14. |
Commitments and Contingencies
|
15. |
Subsequent Events
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
(In thousands, except per share amounts)
|
2021
|
2020
|
% Change
|
2021
|
2020
|
% Change
|
||||||||||||||||||
Revenue (GAAP)
|
$
|
344,287
|
$
|
323,566
|
6.4
|
%
|
$
|
1,039,816
|
$
|
997,333
|
4.3
|
%
|
||||||||||||
Revenue of the divested product lines
|
(1,622
|
)
|
(23,588
|
)
|
(29,399
|
)
|
(88,390
|
)
|
||||||||||||||||
Adjusted revenue
|
$
|
342,665
|
$
|
299,978
|
14.2
|
%
|
$
|
1,010,417
|
$
|
908,943
|
11.2
|
%
|
||||||||||||
Operating Income (GAAP)
|
$
|
46,958
|
$
|
41,155
|
14.1
|
%
|
$
|
129,608
|
$
|
117,841
|
10.0
|
%
|
||||||||||||
Divestiture & other related costs (income) – Cost of products sold
|
-
|
(148
|
)
|
28
|
1,791
|
|||||||||||||||||||
Divestiture & other related costs – Selling and administrative expenses
|
241
|
312
|
13,473
|
8,689
|
||||||||||||||||||||
Operating loss (income) of the divested product lines
|
70
|
(2,449
|
)
|
(2,398
|
)
|
(4,165
|
)
|
|||||||||||||||||
Operational improvement plan – Cost of products sold
|
-
|
35
|
-
|
35
|
||||||||||||||||||||
Operational improvement plan – Selling and administrative expenses (income)
|
483
|
2,606
|
(2,010
|
)
|
2,606
|
|||||||||||||||||||
Adjusted operating income
|
$
|
47,752
|
$
|
41,511
|
15.0
|
%
|
$
|
138,701
|
$
|
126,797
|
9.4
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Net Earnings (GAAP)
|
$
|
33,912
|
$
|
32,910
|
3.0
|
%
|
$
|
91,516
|
$
|
84,303
|
8.6
|
%
|
||||||||||||
Divestiture & other related costs, before tax
|
241
|
164
|
13,501
|
10,480
|
||||||||||||||||||||
Tax impact of divestiture & other related costs
|
1,179
|
(787
|
)
|
283
|
(1,212
|
)
|
||||||||||||||||||
Net loss (earnings) of the divested product lines, before tax
|
70
|
(2,449
|
)
|
(2,398
|
)
|
(4,165
|
)
|
|||||||||||||||||
Tax impact of the divested product lines
|
(18
|
)
|
655
|
590
|
1,155
|
|||||||||||||||||||
Operational improvement plan costs (income), before tax
|
483
|
2,641
|
(2,010
|
)
|
2,641
|
|||||||||||||||||||
Tax impact of operational improvement plan
|
(115
|
)
|
(656
|
)
|
44
|
(656
|
)
|
|||||||||||||||||
Adjusted net earnings
|
$
|
35,752
|
$
|
32,478
|
10.1
|
%
|
$
|
101,526
|
$
|
92,546
|
9.7
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Diluted earnings per share (GAAP)
|
$
|
0.80
|
$
|
0.78
|
2.6
|
%
|
$
|
2.16
|
$
|
1.99
|
8.5
|
%
|
||||||||||||
Divestiture & other related costs (income), net of tax
|
0.03
|
(0.01
|
)
|
0.33
|
0.22
|
|||||||||||||||||||
Results of operations of the divested product lines, net of tax
|
-
|
(0.04
|
)
|
(0.04
|
)
|
(0.07
|
)
|
|||||||||||||||||
Operational improvement plan costs (income), net of tax
|
0.01
|
0.05
|
(0.05
|
)
|
0.05
|
|||||||||||||||||||
Adjusted diluted earnings per share
|
$
|
0.85
|
$
|
0.77
|
10.4
|
%
|
$
|
2.40
|
$
|
2.19
|
9.6
|
%
|
Three Months Ended September 30, 2021
|
Nine Months Ended September 30, 2021
|
|||||||||||||||||||||||||||||||
Revenue
|
Total
|
Foreign Exchange Rates
|
Adjustments(1)
|
Adjusted Local Currency
|
Total
|
Foreign Exchange Rates
|
Adjustments(1)
|
Adjusted Local Currency
|
||||||||||||||||||||||||
Flavors & Extracts
|
(0.7
|
%)
|
1.1
|
%
|
(13.4
|
%)
|
11.6
|
%
|
1.6
|
%
|
2.4
|
%
|
(10.7
|
%)
|
9.9
|
%
|
||||||||||||||||
Color
|
19.6
|
%
|
1.9
|
%
|
(0.4
|
%)
|
18.1
|
%
|
7.1
|
%
|
3.2
|
%
|
(3.4
|
%)
|
7.3
|
%
|
||||||||||||||||
Asia Pacific
|
8.8
|
%
|
(0.5
|
%)
|
(0.2
|
%)
|
9.5
|
%
|
11.8
|
%
|
3.6
|
%
|
(0.2
|
%)
|
8.4
|
%
|
||||||||||||||||
Total Revenue
|
6.4
|
%
|
1.2
|
%
|
(7.8
|
%)
|
13.0
|
%
|
4.3
|
%
|
2.8
|
%
|
(7.1
|
%)
|
8.6
|
%
|
||||||||||||||||
Operating Income
|
||||||||||||||||||||||||||||||||
Flavors & Extracts
|
5.5
|
%
|
0.6
|
%
|
(11.1
|
%)
|
16.0
|
%
|
13.7
|
%
|
1.9
|
%
|
(4.9
|
%)
|
16.7
|
%
|
||||||||||||||||
Color
|
15.7
|
%
|
1.8
|
%
|
(0.9
|
%)
|
14.8
|
%
|
5.3
|
%
|
3.5
|
%
|
0.8
|
%
|
1.0
|
%
|
||||||||||||||||
Asia Pacific
|
7.8
|
%
|
(2.3
|
%)
|
(0.4
|
%)
|
10.5
|
%
|
19.4
|
%
|
(0.7
|
%)
|
(0.3
|
%)
|
20.4
|
%
|
||||||||||||||||
Corporate & Other
|
(2.5
|
%)
|
0.0
|
%
|
(21.0
|
%)
|
18.5
|
%
|
11.1
|
%
|
0.0
|
%
|
(11.0
|
%)
|
22.1
|
%
|
||||||||||||||||
Total Operating Income
|
14.1
|
%
|
1.1
|
%
|
(0.9
|
%)
|
13.9
|
%
|
10.0
|
%
|
3.2
|
%
|
0.3
|
%
|
6.5
|
%
|
||||||||||||||||
Diluted Earnings per Share
|
2.6
|
%
|
0.0
|
%
|
(6.5
|
%)
|
9.1
|
%
|
8.5
|
%
|
3.0
|
%
|
(1.3
|
%)
|
6.8
|
%
|
(1) |
For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income and Diluted Earnings per Share, adjustments consist of the results of the divested
product lines, divestiture & other related costs, and operational improvement plan costs and income.
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
PART II.
|
OTHER INFORMATION
|
● |
Restrictions on energy sources for our facilities may negatively affect our results.
|
ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
Total
Number of
Shares
Purchased
|
Average
Price
Paid per
Share
|
Total Number of
shares purchased
as part of
publicly
announced plans
or programs
|
Maximum number
of shares that may
yet be purchased
under the plans or
programs
|
||||||||||||
July 1 to July 31, 2021
|
11,000
|
$
|
86.40
|
11,000
|
1,937,033
|
|||||||||||
August 1 to August 31, 2021
|
48,400
|
87.14
|
48,400
|
1,888,633
|
||||||||||||
September 1 to September 30, 2021
|
46,200
|
90.89
|
46,200
|
1,842,433
|
||||||||||||
Total
|
105,600
|
105,600
|
ITEM 6. |
EXHIBITS
|
Exhibit
|
Description
|
Incorporated by Reference From
|
Filed Herewith
|
|||
Amendment No. 7 to Receivables Purchase Agreement, dated as of October 1, 2021, among Sensient Receivables LLC, Sensient Technologies Corporation, and Wells Fargo Bank, National Association
|
Exhibit 10.1 to Current Report on Form 8-K filed October 5, 2021 (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.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
|
X
|
||||
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document
|
X
|
||||
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
X
|
||||
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
X
|
||||
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
X
|
||||
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
X
|
||||
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
X
|
SENSIENT TECHNOLOGIES CORPORATION
|
||||
Date:
|
November 2, 2021
|
By:
|
/s/ John J. Manning
|
|
John J. Manning, Senior Vice President, General Counsel & Secretary
|
||||
Date:
|
November 2, 2021
|
By:
|
/s/ Stephen J. Rolfs
|
|
Stephen J. Rolfs, Senior Vice President & Chief Financial Officer
|