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Restructuring and Other Charges, Net
9 Months Ended
Sep. 30, 2020
Restructuring and Related Activities [Abstract]  
Restructuring and Other Charges, Net RESTRUCTURING AND OTHER CHARGES, NET
Restructuring and other charges primarily consist of separation costs for employees including severance, outplacement and other employee benefit costs ("Severance"), charges related to the write-down of fixed assets of plants to be closed ("Fixed asset write-down") and all other related restructuring ("Other") costs. All restructuring and other charges, net are separately stated on the Consolidated Statement of Comprehensive Income (Loss).
Frutarom Integration Initiative
In connection with the acquisition of Frutarom, the Company began to execute an integration plan that, among other initiatives, seeks to optimize its manufacturing network. As part of the Frutarom Integration Initiative, the Company expects to close approximately 35 manufacturing sites with most of the closures targeted to occur by the end of 2021. During 2019, the Company announced the closure of ten sites, of which six sites were in Europe, Africa and Middle East, two sites in Latin America, and one site in each North America and Greater Asia regions. During the nine months ended September 30, 2020, the Company announced the closure of six sites, of which three sites are in Europe, Africa and Middle East, one site in Latin America, and two sites in North America. Since the inception of the initiative through September 30, 2020, the Company has closed sixteen sites and expensed total costs of $18.3 million. Total costs for the program are expected to be approximately $40 million to $50 million including cash and non-cash items.
2019 Severance Program
During the year ended December 31, 2019, the Company incurred severance charges related to approximately 190 headcount reductions, excluding those previously mentioned under the Frutarom Integration Initiative. The headcount reductions primarily related to the Scent business unit with additional amounts related to headcount reductions in all business units associated with the establishment of a new shared service center in Europe. Since the inception of the program, the Company has expensed $21.7 million to date. Total costs for the program are expected to be approximately $25 million.
2017 Productivity Program
In connection with the 2017 Productivity Program, the Company recorded $24.5 million of charges related to personnel costs and lease termination costs since the program's inception to date. As of September 30, 2020, the program is largely completed. Total costs for the program are expected to be approximately $25 million.
Changes in Restructuring Liabilities
Changes in restructuring liabilities by program during the nine months ended September 30, 2020 were as follows:
(DOLLARS IN THOUSANDS)Balance at
December 31, 2019
Additional Charges (Reversals), NetNon-Cash ChargesCash PaymentsBalance at September 30, 2020
2017 Productivity Program
Severance$1,106 $— $— $(277)$829 
Other(1)
88 — — — 88 
Frutarom Integration Initiative
Severance4,038 2,003 — (3,221)2,820 
Fixed asset write down— 4,647 (4,647)— — 
Other(1)
2,485 1,291 371 (812)3,335 
2019 Severance Plan
Severance12,897 358 — (4,905)8,350 
Other(1)
471 — — — 471 
Total restructuring$21,085 $8,299 $(4,276)$(9,215)$15,893 
_______________________ 
(1)Other includes supplier contract termination costs, consulting and advisory fees.
Charges by Segment
The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment:
 Three Months Ended September 30,Nine Months Ended September 30,
(DOLLARS IN THOUSANDS)2020201920202019
Taste$1,139 $2,541 $7,941 $7,618 
Scent358 803 358 11,703 
Shared IT & Corporate Costs— 372 — 3,094 
Total Restructuring and other charges, net$1,497 $3,716 $8,299 $22,415