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 28, 2020 |
|
Common Stock, par value $0.10 per share |
Page No. |
|||
PART I. FINANCIAL INFORMATION: |
|||
Item 1. |
Financial Statements: |
||
1 |
|||
2 |
|||
3 |
|||
4 |
|||
5 |
|||
6 |
|||
Item 2. |
18 |
||
Item 3. |
26 |
||
Item 4. |
26 |
||
PART II. OTHER INFORMATION: |
|||
Item 1. |
27 |
||
Item 1A. |
28 |
||
Item 2. |
29 |
||
Item 6. |
29 |
||
30 |
|||
31 |
|||
| PART I. | FINANCIAL INFORMATION |
| ITEM 1. | FINANCIAL STATEMENTS |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
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, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Comprehensive income |
$ |
$ |
$ |
$ |
||||||||||||
ASSETS |
September 30, 2020 (Unaudited) |
December 31, 2019 |
||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ |
$ |
||||||
Trade accounts receivable, net |
||||||||
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, |
||||||||
2020 |
2019 |
|||||||
Cash flows from operating activities: |
||||||||
Net earnings |
$ |
$ |
||||||
Adjustments to arrive at net cash provided by operating activities: |
||||||||
Depreciation and amortization |
||||||||
Share-based compensation expense (income) |
( |
) |
||||||
Net gain on assets |
( |
) |
( |
) |
||||
Net 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 |
||||||||
Other investing activities |
||||||||
Net cash used in investing activities |
( |
) |
( |
) |
||||
Cash flows from financing activities: |
||||||||
Proceeds from additional borrowings |
||||||||
Debt payments |
( |
) |
( |
) |
||||
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 |
$ |
$ |
||||||
Additional |
Earnings Reinvested |
Treasury Stock |
Accumulated Other Comprehensive |
|||||||||||||||||||||||||
Nine Months Ended September 30, 2019 |
Common Stock |
Paid-In Capital |
in the Business |
Shares |
Amount |
Income (Loss) |
Total Equity |
|||||||||||||||||||||
Balances at December 31, 2018 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||||||
Net earnings |
- |
|||||||||||||||||||||||||||
Other comprehensive loss |
- |
( |
) |
( |
) |
|||||||||||||||||||||||
Cash dividends paid - $ |
( |
) |
- |
( |
) |
|||||||||||||||||||||||
Share-based compensation |
( |
) |
- |
( |
) |
|||||||||||||||||||||||
Non-vested stock issued upon vesting |
( |
) |
( |
) |
||||||||||||||||||||||||
Benefit plans |
( |
) |
||||||||||||||||||||||||||
Other |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||
Balances at September 30, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||||||
Three Months Ended September 30, 2019 |
||||||||||||||||||||||||||||
Balances at June 30, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||||||
Net earnings |
- |
|||||||||||||||||||||||||||
Other comprehensive loss |
- |
( |
) |
( |
) |
|||||||||||||||||||||||
Cash dividends paid - $ |
( |
) |
- |
( |
) |
|||||||||||||||||||||||
Share-based compensation |
- |
|||||||||||||||||||||||||||
Non-vested stock issued upon vesting |
( |
) |
( |
) |
||||||||||||||||||||||||
Other |
( |
) |
( |
) |
||||||||||||||||||||||||
Balances at September 30, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||||||
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 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||||||
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 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||||||
| 1. | Accounting Policies |
| 2. | Divestitures |
(in thousands) |
September 30, 2020 |
December 31, 2019 |
||||||
Assets held for sale: |
||||||||
Trade accounts receivable, net |
$ |
$ |
||||||
Inventories |
||||||||
Prepaid expenses and other current assets |
||||||||
Property, plant, and equipment, net |
||||||||
Intangible assets, net |
||||||||
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 |
$ |
$ |
||||||
| 3. | Operational Improvement Plan |
(In thousands) Three and Nine Months Ended September 30, 2020 |
Flavors & Extracts |
Color |
Asia Pacific |
Consolidated |
||||||||||||
Employee separation |
$ |
$ |
$ |
$ |
||||||||||||
Other costs(1) |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
| (1) |
(In thousands) Three and Nine Months Ended September 30, 2020 |
Selling & Administrative Expenses |
Cost of Products Sold |
Consolidated |
|||||||||
Employee separation |
$ |
$ |
$ |
|||||||||
Other costs(1) |
||||||||||||
Total |
$ |
$ |
$ |
|||||||||
| (1) |
| 4. | Trade Accounts Receivable |
(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, 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 |
$ |
|||
| 5. | Inventories |
| 6. | Fair Value |
| 7. | Segment Information |
(In thousands) |
Flavors & Extracts |
Color |
Asia Pacific |
Corporate & Other |
Consolidated |
|||||||||||||||
Three months ended September 30, 2020: |
||||||||||||||||||||
Revenue from external customers |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Intersegment revenue |
||||||||||||||||||||
Total revenue |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Operating income (loss) |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||
Interest expense |
||||||||||||||||||||
Earnings (loss) before income taxes |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||
Three months ended September 30, 2019: |
||||||||||||||||||||
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, 2020: |
||||||||||||||||||||
Revenue from external customers |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Intersegment revenue |
||||||||||||||||||||
Total revenue |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Operating income (loss) |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||
Interest expense |
||||||||||||||||||||
Earnings (loss) before income taxes |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||
Nine months ended September 30, 2019: |
||||||||||||||||||||
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, 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 |
$ |
$ |
$ |
$ |
||||||||||||
Three months ended September 30, 2019: |
||||||||||||||||
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, 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 |
$ |
$ |
$ |
$ |
||||||||||||
Nine months ended September 30, 2019: |
||||||||||||||||
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, 2020: |
||||||||||||||||
North America |
$ |
$ |
$ |
$ |
||||||||||||
Europe |
||||||||||||||||
Asia Pacific |
||||||||||||||||
Other |
||||||||||||||||
Total revenue from external customers |
$ |
$ |
$ |
$ |
||||||||||||
Three months ended September 30, 2019: |
||||||||||||||||
North America |
$ |
$ |
$ |
$ |
||||||||||||
Europe |
||||||||||||||||
Asia Pacific |
||||||||||||||||
Other |
||||||||||||||||
Total revenue from external customers |
$ |
$ |
$ |
$ |
||||||||||||
(In thousands) |
Flavors & Extracts |
Color |
Asia Pacific |
Consolidated |
||||||||||||
Nine months ended September 30, 2020: |
||||||||||||||||
North America |
$ |
$ |
$ |
$ |
||||||||||||
Europe |
||||||||||||||||
Asia Pacific |
||||||||||||||||
Other |
||||||||||||||||
Total revenue from external customers |
$ |
$ |
$ |
$ |
||||||||||||
Nine months ended September 30, 2019: |
||||||||||||||||
North America |
$ |
$ |
$ |
$ |
||||||||||||
Europe |
||||||||||||||||
Asia Pacific |
||||||||||||||||
Other |
||||||||||||||||
Total revenue from external customers |
$ |
$ |
$ |
$ |
||||||||||||
| 8. | Retirement Plans |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(In thousands) |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Service cost |
$ |
$ |
$ |
$ |
||||||||||||
Interest cost |
||||||||||||||||
Expected return on plan assets |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Recognized actuarial loss (gain) |
( |
) |
( |
) |
||||||||||||
Total defined benefit expense |
$ |
$ |
$ |
$ |
||||||||||||
| 9. | Derivative Instruments and Hedging Activity |
| 10. | Income Taxes |
| 11. | Accumulated Other Comprehensive Income |
(In thousands) |
Cash Flow Hedges (2) |
Pension Items (2) |
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 (2) |
Pension Items (2) |
Foreign Currency Items |
Total |
||||||||||||
Balances at June 30, 2020 |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
||||
Other comprehensive income before reclassifications |
||||||||||||||||
Amounts reclassified from OCI |
( |
) |
( |
) |
||||||||||||
Balances at September 30, 2020 |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
||||||
(In thousands) |
Cash Flow Hedges (2) |
Pension Items (2) |
Foreign Currency Items |
Total |
||||||||||||
Balances at December 31, 2018 |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
||||||||
Other comprehensive loss before reclassifications |
( |
) |
( |
) |
( |
) |
||||||||||
Amounts reclassified from OCI |
( |
) |
( |
) |
( |
) |
||||||||||
Balances at September 30, 2019 |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
( |
) |
||||||
(In thousands) |
Cash Flow Hedges (2) |
Pension Items (2) |
Foreign Currency Items |
Total |
||||||||||||
Balances at June 30, 2019 |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
( |
) |
||||||
Other comprehensive loss before reclassifications |
( |
) |
( |
) |
( |
) |
||||||||||
Amounts reclassified from OCI |
( |
) |
||||||||||||||
Balances at September 30, 2019 |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
( |
) |
||||||
| (2) |
| 12. | Commitments and Contingencies |
| 13. | Subsequent Events |
| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||
(In thousands, except per share amounts) |
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
||||||||||||||||||
Revenue (GAAP) |
$ |
323,566 |
$ |
317,650 |
1.9 |
% |
$ |
997,333 |
$ |
1,004,349 |
(0.7 |
%) |
||||||||||||
Revenue of the product lines divested or to be divested |
(23,588 |
) |
(34,112 |
) |
(88,390 |
) |
(109,489 |
) |
||||||||||||||||
Adjusted revenue |
$ |
299,978 |
$ |
283,538 |
5.8 |
% |
$ |
908,943 |
$ |
894,860 |
1.6 |
% |
||||||||||||
Operating Income (GAAP) |
$ |
41,155 |
$ |
38,788 |
6.1 |
% |
$ |
117,841 |
$ |
135,576 |
(13.1 |
%) |
||||||||||||
Divestiture & other related costs (income) – Cost of products sold |
(148 |
) |
- |
1,791 |
- |
|||||||||||||||||||
Divestiture & other related costs – Selling and administrative expenses |
312 |
- |
8,689 |
- |
||||||||||||||||||||
Operating income of the product lines divested or to be divested |
(2,449 |
) |
(856 |
) |
(4,165 |
) |
(1,233 |
) |
||||||||||||||||
Operational improvement plan – Cost of products sold |
35 |
- |
35 |
- |
||||||||||||||||||||
Operational improvement plan – Selling and administrative expenses |
2,606 |
- |
2,606 |
- |
||||||||||||||||||||
Adjusted operating income |
$ |
41,511 |
$ |
37,932 |
9.4 |
% |
$ |
126,797 |
$ |
134,343 |
(5.6 |
%) |
||||||||||||
Net Earnings (GAAP) |
$ |
32,910 |
$ |
31,871 |
3.3 |
% |
$ |
84,303 |
$ |
99,009 |
(14.9 |
%) |
||||||||||||
Divestiture & other related costs, before tax |
164 |
- |
10,480 |
- |
||||||||||||||||||||
Tax impact of divestiture & other related costs |
(787 |
) |
- |
(1,212 |
) |
- |
||||||||||||||||||
Net earnings of the product lines divested or to be divested, before tax |
(2,449 |
) |
(856 |
) |
(4,165 |
) |
(1,233 |
) |
||||||||||||||||
Tax impact of the product lines divested or to be divested |
655 |
87 |
1,155 |
203 |
||||||||||||||||||||
Operational improvement plan costs, before tax |
2,641 |
- |
2,641 |
- |
||||||||||||||||||||
Tax impact of operational improvement plan |
(656 |
) |
- |
(656 |
) |
- |
||||||||||||||||||
Adjusted net earnings |
$ |
32,478 |
$ |
31,102 |
4.4 |
% |
$ |
92,546 |
$ |
97,979 |
(5.5 |
%) |
||||||||||||
Diluted earnings per share (GAAP) |
$ |
0.78 |
$ |
0.75 |
4.0 |
% |
$ |
1.99 |
$ |
2.34 |
(15.0 |
%) |
||||||||||||
Divestiture & other related costs (income), net of tax |
(0.01 |
) |
- |
0.22 |
- |
|||||||||||||||||||
Results of operations of the product lines divested or to be divested, net of tax |
(0.04 |
) |
(0.02 |
) |
(0.07 |
) |
(0.02 |
) |
||||||||||||||||
Operational improvement plan costs, net of tax |
0.05 |
- |
0.05 |
- |
||||||||||||||||||||
Adjusted diluted earnings per share |
$ |
0.77 |
$ |
0.74 |
4.1 |
% |
$ |
2.19 |
$ |
2.32 |
(5.6 |
%) |
||||||||||||
Three Months Ended September 30, 2020 |
Nine Months Ended September 30, 2020 |
|||||||||||||||||||||||||||||||
Revenue |
Total |
Foreign Exchange Rates |
Divestiture & Operational Improvement Plan Impact |
Adjusted Local Currency |
Total |
Foreign Exchange Rates |
Divestiture & Operational Improvement Plan Impact |
Adjusted Local Currency |
||||||||||||||||||||||||
Flavors & Extracts |
9.1 |
% |
0.5 |
% |
(4.3 |
%) |
12.9 |
% |
4.1 |
% |
(0.8 |
%) |
(2.3 |
%) |
7.2 |
% |
||||||||||||||||
Color |
(8.3 |
%) |
(1.2 |
%) |
(5.6 |
%) |
(1.5 |
%) |
(7.0 |
%) |
(2.6 |
%) |
(3.2 |
%) |
(1.2 |
%) |
||||||||||||||||
Asia Pacific |
2.0 |
% |
0.4 |
% |
(0.5 |
%) |
2.1 |
% |
1.6 |
% |
(1.2 |
%) |
(0.2 |
%) |
3.0 |
% |
||||||||||||||||
Total Revenue |
1.9 |
% |
(0.2 |
%) |
(4.0 |
%) |
6.1 |
% |
(0.7 |
%) |
(1.6 |
%) |
(2.1 |
%) |
3.0 |
% |
||||||||||||||||
Operating Income |
||||||||||||||||||||||||||||||||
Flavors & Extracts |
35.5 |
% |
(0.3 |
%) |
11.7 |
% |
24.1 |
% |
11.0 |
% |
(0.9 |
%) |
7.9 |
% |
4.0 |
% |
||||||||||||||||
Color |
0.5 |
% |
(0.4 |
%) |
(2.1 |
%) |
3.0 |
% |
(7.4 |
%) |
(2.3 |
%) |
(2.0 |
%) |
(3.1 |
%) |
||||||||||||||||
Asia Pacific |
13.3 |
% |
(1.4 |
%) |
(0.8 |
%) |
15.5 |
% |
16.0 |
% |
(0.5 |
%) |
(0.4 |
%) |
16.9 |
% |
||||||||||||||||
Corporate & Other |
61.6 |
% |
0.0 |
% |
36.7 |
% |
24.9 |
% |
100.3 |
% |
0.0 |
% |
63.8 |
% |
36.5 |
% |
||||||||||||||||
Total Operating Income |
6.1 |
% |
(0.6 |
%) |
(3.4 |
%) |
10.1 |
% |
(13.1 |
%) |
(1.8 |
%) |
(7.4 |
%) |
(3.9 |
%) |
||||||||||||||||
Diluted Earnings per Share |
4.0 |
% |
0.0 |
% |
(2.8 |
%) |
6.8 |
% |
(15.0 |
%) |
(1.8 |
%) |
(9.8 |
%) |
(3.4 |
%) |
||||||||||||||||
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
| ITEM 4. | CONTROLS AND PROCEDURES |
| PART II. | OTHER INFORMATION |
| ITEM 1. | LEGAL PROCEEDINGS |
| ITEM 1A. | RISK FACTORS |
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
| ITEM 6. | EXHIBITS |
Exhibit |
Description |
Incorporated by Reference From |
Filed Herewith |
||
Amendment No. 5 to Receivables Purchase Agreement, dated as of October 1, 2020, 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 7, 2020 (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 3, 2020 |
By: |
/s/ John J. Manning |
|
John J. Manning, Senior Vice President, General Counsel & Secretary |
||||
Date: |
November 3, 2020 |
By: |
/s/ Stephen J. Rolfs |
|
Stephen J. Rolfs, Senior Vice President & Chief Financial Officer |
||||
| 1. |
I have reviewed this quarterly report on Form 10-Q of Sensient Technologies Corporation;
|
| 2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
| 3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
| 4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
| a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
| b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
| c) |
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
|
| d) |
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
| 5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the
audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
| a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
registrant’s ability to record, process, summarize, and report financial information; and
|
| b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
| /s/ Paul Manning |
|
|
Paul Manning, Chairman, President &
Chief Executive Officer
|
|
| 1. |
I have reviewed this quarterly report on Form 10-Q of Sensient Technologies Corporation;
|
| 2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
| 3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
| 4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
| a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating
to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
| b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
| c) |
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
|
| d) |
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s
fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
| 5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the
audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
| a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the
registrant’s ability to record, process, summarize, and report financial information; and
|
| b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
| /s/ Stephen J. Rolfs | |
|
Stephen J. Rolfs, Senior Vice President &
Chief Financial Officer
|
|
|
|
/s/ Paul Manning |
|
|
Name: | Paul Manning |
|
|
Title: |
Chairman, President & Chief Executive Officer |
|
|
Date: | November 3, 2020 |
|
|
|
/s/ Stephen J. Rolfs |
|
|
Name: | Stephen J. Rolfs |
|
|
Title: |
Senior Vice President & Chief Financial Officer |
|
|
Date: | November 3, 2020 |
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
| CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) [Abstract] | ||||
| Revenue | $ 323,566 | $ 317,650 | $ 997,333 | $ 1,004,349 |
| Cost of products sold | 217,920 | 215,250 | 677,580 | 674,956 |
| Selling and administrative expenses | 64,491 | 63,612 | 201,912 | 193,817 |
| Operating income | 41,155 | 38,788 | 117,841 | 135,576 |
| Interest expense | 3,497 | 4,936 | 11,412 | 15,538 |
| Earnings before income taxes | 37,658 | 33,852 | 106,429 | 120,038 |
| Income taxes | 4,748 | 1,981 | 22,126 | 21,029 |
| Net earnings | $ 32,910 | $ 31,871 | $ 84,303 | $ 99,009 |
| Weighted average number of common shares outstanding: | ||||
| Basic (in shares) | 42,307 | 42,272 | 42,299 | 42,261 |
| Diluted (in shares) | 42,349 | 42,299 | 42,326 | 42,291 |
| Earnings per common share: | ||||
| Basic (in dollars per share) | $ 0.78 | $ 0.75 | $ 1.99 | $ 2.34 |
| Diluted (in dollars per share) | 0.78 | 0.75 | 1.99 | 2.34 |
| Dividends declared per common share (in dollars per share) | $ 0.39 | $ 0.36 | $ 1.17 | $ 1.08 |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
| CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
| Comprehensive income | $ 51,232 | $ 14,104 | $ 60,909 | $ 83,254 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands |
Common Stock [Member] |
Additional Paid-In Capital [Member] |
Earnings Reinvested in the Business [Member] |
Treasury Stock [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Total |
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Additional Paid-In Capital [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Earnings Reinvested in the Business [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Treasury Stock [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member] |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Beginning balance at Dec. 31, 2018 | $ 5,396 | $ 101,663 | $ 1,516,243 | $ (597,800) | $ (165,555) | $ 859,947 | ||||||
| Beginning balance (in shares) at Dec. 31, 2018 | 11,731,223 | |||||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
| Net earnings | 0 | 0 | 99,009 | $ 0 | 0 | 99,009 | ||||||
| Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (15,755) | (15,755) | ||||||
| Cash dividends paid | 0 | 0 | (45,688) | 0 | 0 | (45,688) | ||||||
| Share-based compensation | 0 | (816) | 0 | 0 | 0 | (816) | ||||||
| Non-vested stock issued upon vesting | 0 | (2,343) | 0 | $ 2,343 | 0 | 0 | ||||||
| Non-vested stock issued upon vesting (in shares) | (45,981) | |||||||||||
| Benefit plans | 0 | 72 | 0 | $ 948 | 0 | 1,020 | ||||||
| Benefit plans (in shares) | (18,597) | |||||||||||
| Other | 0 | (229) | 0 | $ (815) | 0 | (1,044) | ||||||
| Other (in shares) | 15,991 | |||||||||||
| Ending balance at Sep. 30, 2019 | 5,396 | 98,347 | 1,569,564 | $ (595,324) | (181,310) | 896,673 | ||||||
| Ending balance (in shares) at Sep. 30, 2019 | 11,682,636 | |||||||||||
| Beginning balance at Jun. 30, 2019 | 5,396 | 98,037 | 1,552,928 | $ (595,336) | (163,543) | 897,482 | ||||||
| Beginning balance (in shares) at Jun. 30, 2019 | 11,682,876 | |||||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
| Net earnings | 0 | 0 | 31,871 | $ 0 | 0 | 31,871 | ||||||
| Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (17,767) | (17,767) | ||||||
| Cash dividends paid | 0 | 0 | (15,235) | 0 | 0 | (15,235) | ||||||
| Share-based compensation | 0 | 339 | 0 | 0 | 0 | 339 | ||||||
| Non-vested stock issued upon vesting | 0 | (12) | 0 | $ 12 | 0 | 0 | ||||||
| Non-vested stock issued upon vesting (in shares) | (240) | |||||||||||
| Other | 0 | (17) | 0 | $ 0 | 0 | (17) | ||||||
| Other (in shares) | 0 | |||||||||||
| Ending balance at Sep. 30, 2019 | 5,396 | 98,347 | 1,569,564 | $ (595,324) | (181,310) | 896,673 | ||||||
| Ending balance (in shares) at Sep. 30, 2019 | 11,682,636 | |||||||||||
| Beginning balance at Dec. 31, 2019 | 5,396 | 98,425 | 1,536,100 | $ (595,324) | (163,008) | 881,589 | ||||||
| Beginning balance (ASU 2016-13 [Member]) at Dec. 31, 2019 | $ 0 | $ 0 | $ (853) | $ 0 | $ 0 | $ (853) | ||||||
| Beginning balance (in shares) at Dec. 31, 2019 | 11,682,636 | |||||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
| Net earnings | 0 | 0 | 84,303 | $ 0 | 0 | 84,303 | ||||||
| Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (23,394) | (23,394) | ||||||
| Cash dividends paid | 0 | 0 | (49,537) | 0 | 0 | (49,537) | ||||||
| Share-based compensation | 0 | 4,017 | 0 | 0 | 0 | 4,017 | ||||||
| Non-vested stock issued upon vesting | 0 | (1,352) | 0 | $ 1,352 | 0 | 0 | ||||||
| Non-vested stock issued upon vesting (in shares) | (26,515) | |||||||||||
| Benefit plans | 0 | 241 | 0 | $ 833 | 0 | 1,074 | ||||||
| Benefit plans (in shares) | (16,344) | |||||||||||
| Other | 0 | (13) | 0 | $ (401) | 0 | (414) | ||||||
| Other (in shares) | 7,850 | |||||||||||
| Ending balance at Sep. 30, 2020 | 5,396 | 101,318 | 1,570,013 | $ (593,540) | (186,402) | 896,785 | ||||||
| Ending balance (in shares) at Sep. 30, 2020 | 11,647,627 | |||||||||||
| Beginning balance at Jun. 30, 2020 | 5,396 | 99,962 | 1,553,622 | $ (593,540) | (204,724) | 860,716 | ||||||
| Beginning balance (in shares) at Jun. 30, 2020 | 11,647,627 | |||||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
| Net earnings | 0 | 0 | 32,910 | $ 0 | 0 | 32,910 | ||||||
| Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 18,322 | 18,322 | ||||||
| Cash dividends paid | 0 | 0 | (16,519) | 0 | 0 | (16,519) | ||||||
| Share-based compensation | 0 | 1,355 | 0 | 0 | 0 | 1,355 | ||||||
| Other | 0 | 1 | 0 | $ 0 | 0 | 1 | ||||||
| Other (in shares) | 0 | |||||||||||
| Ending balance at Sep. 30, 2020 | $ 5,396 | $ 101,318 | $ 1,570,013 | $ (593,540) | $ (186,402) | $ 896,785 | ||||||
| Ending balance (in shares) at Sep. 30, 2020 | 11,647,627 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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| CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) [Abstract] | ||||
| Cash dividends per share (in dollars per share) | $ 0.39 | $ 0.36 | $ 1.17 | $ 1.08 |
Accounting Policies |
9 Months Ended | ||
|---|---|---|---|
Sep. 30, 2020 | |||
| Accounting Policies [Abstract] | |||
| Accounting Policies |
In the opinion of Sensient Technologies Corporation (the Company), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of September 30, 2020; the results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended September 30, 2020 and 2019; and cash flows for the nine months ended September 30, 2020 and 2019. 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.
Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2019, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change, except for the Company’s Accounts Receivable accounting policy. This policy was updated in the first quarter of 2020 as a result of the Company’s adoption of Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and is described below.
Accounts Receivable
Receivables are recorded at their face amount, less an allowance for losses on doubtful accounts. The allowance for doubtful accounts is based on customer-specific analysis and expected future credit losses based on historical experience, current conditions, and expected future conditions. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible.
Recently Adopted Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss impairment model with a methodology that reflects expected credit losses. Under the new standard, entities are required to measure expected credit losses on financial instruments held at amortized cost, including trade receivables, based on historical experience, current conditions, and reasonable forecasts. The Company adopted this standard in the first quarter of 2020. The adoption of this standard resulted in an increase of $0.9 million to the allowance for losses on Trade Accounts Receivable and a corresponding decrease in Earnings Reinvested in the Business as of January 1, 2020. The adoption of this standard did not have an impact on the Company’s Consolidated Condensed Statements of Earnings, or to cash provided by or used in operating, financing, or investing activities on the Company’s Consolidated Statements of Cash Flows.
In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates step two of the current goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. The Company adopted this standard in the first quarter of 2020, and the adoption did not have a material impact on the Company’s consolidated financial statements.
In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which changes the requirements for fair value measurements by removing, modifying, and adding certain disclosures. The Company adopted this standard in the first quarter of 2020, and the adoption did not have a material impact on the Company’s consolidated financial statements or its related disclosures.
Recently Issued Accounting Pronouncements
In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans Subtopic 715-20, which amends Accounting Standards Codification (ASC) 715-20, Compensation – Retirement Benefits – Defined Benefit Plans – General. This standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The effective date is January 1, 2021, with early adoption permitted. The Company is currently evaluating the potential impact of this standard on its disclosures.
In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other inter-bank offered rates to alternative rates. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements and its related disclosures.
Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2019, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change, except as discussed above.
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Divestitures |
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| Divestitures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Divestitures |
In October 2019, the Company announced its intent to divest its inks, fragrances (excluding its essential oils product line), and yogurt fruit preparations product lines. In the fourth quarter of 2019, the Board of Directors approved the sale of the inks product line, which is within the Color segment, and the fragrances product line (excluding its essential oils product line), which is within the Flavors & Extracts segment (formerly known as the Flavors & Fragrances segment; see Note 7, Segment Information). In the second quarter of 2020, the Board of Directors approved the sale of the yogurt fruit preparations product line, which is within the Flavors & Extracts segment. The divesting and exit of these three product lines does not meet the criteria to be presented as a discontinued operation on the Consolidated Condensed Statements of Earnings.
On June 30, 2020, the Company completed the sale of its inks product line. At closing, the Company received $10.3 million of net cash, subject to post-closing working capital and net debt adjustments, and estimates it would realize additional value for the sale of certain assets post-closing and the collection of retained accounts receivables. During the three months ended September 30, 2020, the Company received $1.0 million of cash related to the sale of certain assets post-closing. The Company expects to receive additional cash when it finalizes its post-closing adjustments and completes the post-closing asset sales. For the nine months ended September 30, 2020, the Company recorded a non-cash impairment charge of $9.4 million as the estimated fair value less costs to sell the inks product line was lower than its carrying value and a non-cash net gain of $8.2 million related to the reclassification of foreign currency translation and related items from Accumulated Other Comprehensive Loss to Selling and Administrative Expenses.
On September 18, 2020, the Company completed the sale of its yogurt fruit preparations product line and recorded a net gain of approximately $0.9 million during the three months ended September 30, 2020. The sale included an earn-out based on future performance, which could result in additional consideration for the Company. During the second quarter of 2020, the Company reviewed the yogurt fruit preparations product line’s long-lived assets for impairment and determined that the carrying amounts of certain asset groups were not fully recoverable. As such, the Company recorded a non-cash impairment charge of $2.4 million in Selling and Administrative Expenses related to the long-lived assets in order to reduce their carrying value to their estimated fair value. In addition, in the second quarter of 2020, the Company recorded a non-cash charge of $1.7 million in Cost of Products Sold related to the yogurt fruit preparations divestiture to reduce the carrying value of certain inventories as they were determined to be excess based on changes in assumptions resulting from the signing of the definitive agreement.
The assets and liabilities related to the inks and fragrances product lines are recorded in Assets Held for Sale and Liabilities Held for Sale as of September 30, 2020, and December 31, 2019, as follows:
In March 2020, the Company was notified by a potential buyer of the Company’s fragrances product line that environmental sampling conducted at the Company’s Granada, Spain location had identified the presence of contaminants in soil and groundwater in certain areas of the property. The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and the amount of the liability is reasonably estimable. Based upon an environmental investigation and a quantitative risk assessment performed by a consultant hired by the Company during the second quarter of 2020, the Company has recorded $0.8 million related to these obligations in Selling and Administrative Expenses in the nine months ended September 30, 2020.
In addition, the Company currently estimates a non-cash charge of $10 million to $12 million upon closing the sale of the fragrances product line related to the reclassification of accumulated foreign currency translation and related items from Accumulated Other Comprehensive Loss to Selling and Administrative Expenses in the Consolidated Condensed Statement of Earnings. The estimated fair value of the fragrances product line (excluding its essential oils product line) was determined based on indicative bids, which are classified as Level 3 inputs in the fair value measurement hierarchy.
The Company also incurred $1.2 million and $5.2 million of other divestiture and other related costs, primarily severance and legal expenses, during the three and nine month periods ended September 30, 2020, respectively, which are recorded in Selling and Administrative Expenses.
The Company expects total cash costs in 2019, 2020, and 2021 associated with the divestitures of all three product lines to be between $6 million and $9 million, primarily related to severance and other exit activities.
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Operational Improvement Plan |
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| Operational Improvement Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operational Improvement Plan |
During the three months ended September 30, 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, and the Company incurred additional employee separation costs within its Personal Care product line in the Color segment. 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 employee separation costs in connection with the elimination of certain selling and administrative positions.
The following table summarizes the Operational Improvement Plan costs by segment for the three and nine months ended September 30, 2020:
The Company recorded the Operational Improvement Plan costs for the three and nine months ended September 30, 2020, as follows:
The Company expects the total costs in 2020 and 2021 associated with the Operational Improvement Plan to be between $5 million and $7 million, primarily related to severance and accelerated depreciation.
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Trade Accounts Receivable |
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| Trade Accounts Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trade Accounts Receivable |
Trade accounts receivables are recorded at their face amount, less an allowance for expected losses on doubtful accounts. The allowance for doubtful accounts is calculated based on customer-specific analysis and an aging methodology using historical loss information. The Company believes historical loss information is a reasonable basis for expected credit losses as the Company’s historical credit loss experience correlates with its customer delinquency status. This information is also adjusted for any known current economic conditions, including the current and expected impact of COVID-19. Currently, the COVID-19 pandemic has not had and is not anticipated to have a material impact on trade accounts receivable. Forecasted economic conditions have not had a significant impact on the current credit loss estimate due to the short-term nature of the Company’s customer receivables, however, the Company will continue to monitor and evaluate the rapidly changing economic conditions. Additionally, as the Company only has one portfolio segment, there are not different risks between portfolios. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible.
The following table summarizes the changes in the allowance for doubtful accounts during the three and nine month periods ended September 30, 2020:
See Note 2, Divestitures, for further information regarding the divestiture included in the above table.
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Inventories |
9 Months Ended | ||
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Sep. 30, 2020 | |||
| Inventories [Abstract] | |||
| Inventories |
At September 30, 2020, and December 31, 2019, inventories included finished and in-process products totaling $274.5 million and $313.1 million, respectively, and raw materials and supplies of $126.5 million and $109.4 million, respectively.
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Fair Value |
9 Months Ended | ||
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Sep. 30, 2020 | |||
| Fair Value [Abstract] | |||
| Fair Value |
ASC 820, Fair Value Measurement, 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, 2020, and December 31, 2019, the Company’s assets and liabilities subject to this standard are forward exchange contracts. The net fair value of the forward exchange contracts based on current pricing obtained for comparable derivative products (Level 2 inputs) was a liability of $0.3 million and $0.1 million as of September 30, 2020, and December 31, 2019, respectively. The carrying values of the Company’s cash and cash equivalents, trade accounts receivable, trade accounts payable, accrued expenses, and short-term borrowings were approximately the same as the fair values as of September 30, 2020. 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, 2020, was $537.1 million. The fair value of the long-term debt at September 30, 2020, was $563.9 million.
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Segment Information |
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| Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information |
During the third quarter of 2020, the Company changed the name of its Flavors & Fragrances segment to the Flavors & Extracts segment in order to more accurately reflect the group’s product portfolio. In addition, the Company changed the name of its Food & Beverage Colors product line to Food & Pharmaceutical Colors.
Operating results by segment for the periods presented are as follows:
The Company evaluates performance based on operating income before divestiture and other related costs, restructuring and other charges including operational improvement plan costs, interest expense, and income taxes (segment operating income). Total revenue and segment operating income by business segment and geographic region include both sales to customers, as reported in the Company’s Consolidated Condensed Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation.
The 2020 divestiture and other related costs, which pertain to the divestitures of the Company’s inks and yogurt fruit preparations product lines, and the anticipated divestiture of the Company’s fragrances product line (excluding its essential oils product line), and the operational improvement plan, are reported in Corporate & Other. There were no divestiture and other related costs, restructuring and other costs, or operational improvement plan costs, in the first nine months of 2019.
In addition to evaluating the Company’s performance based on the segments above, revenue is also disaggregated and analyzed by product line and geographic market. The following tables display the Company’s revenue by these major sources.
During the first quarter of 2020, the Company updated its product line disclosures as a result of its intent to divest its inks, fragrances (excluding its essential oils product line), and yogurt fruit preparations product lines. Flavors, Extracts & Flavor Ingredients now includes essential oils, which was previously reported in Fragrances. Fragrances now only includes the aroma chemicals and fragrance compounds product lines. Yogurt Fruit Preparations is now disclosed separately; previously it was reported in the Flavors product line. Food & Pharmaceutical Colors (formerly Food & Beverage Colors) now includes pharmaceutical colors and natural extraction, which were previously reported in Other Colors. Personal Care includes cosmetic and non-food colors. Inks is now disclosed separately; previously it was reported in Other Colors. The results for 2019 have been restated to reflect these changes.
Product Lines
Geographic Markets
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Retirement Plans |
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| Retirement Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Plans |
The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows:
The Company’s non-service cost portion of defined benefit expense is recorded in Interest Expense on the Company’s Consolidated Condensed Statements of Earnings. The Company’s service cost portion of defined benefit expense is recorded in Selling and Administrative Expenses on the Company’s Consolidated Condensed Statements of Earnings.
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Derivative Instruments and Hedging Activity |
9 Months Ended | ||
|---|---|---|---|
Sep. 30, 2020 | |||
| Derivative Instruments and Hedging Activity [Abstract] | |||
| Derivative Instruments and Hedging Activity |
The Company may use forward exchange contracts and foreign currency denominated debt to manage its exposure to foreign exchange risk in order to reduce the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company’s primary hedging activities and their accounting treatment are summarized below.
Forward exchange contracts – Certain forward exchange contracts have been designated as cash flow hedges. The Company had $23.8 million and $59.9 million of forward exchange contracts designated as cash flow hedges outstanding as of September 30, 2020, and December 31, 2019, respectively. For the nine months ended September 30, 2020, losses of $1.4 million were reclassified into net earnings in the Company’s Consolidated Condensed Statement of Earnings that offset the underlying transactions’ impact on earnings in the same period. For the three months ended September 30, 2020 and the three and nine months ended September 30, 2019, the amounts reclassified into net earnings in the Company’s Consolidated Condensed Statement of Earnings that offset the underlying transactions’ impact on earnings in the same period were not material. 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 financial statements.
Net investment hedges – The Company has designated certain foreign currency denominated long-term borrowings as partial hedges of the Company’s foreign currency net asset positions. As of September 30, 2020, the total value of the Company’s net investment hedges was $316.7 million. These net investment hedges included Euro and British Pound denominated long-term debt. As of December 31, 2019, the total value of the Company’s net investment hedges was $363.4 million. These net investment hedges then included Euro, Swiss Franc, and British Pound denominated long-term debt. 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). For the three and nine months ended September 30, 2020, the impact of foreign exchange rates on these debt instruments increased debt by $13.1 million and $9.8 million, respectively, which has been recorded as foreign currency translation in OCI. For the three and nine months ended September 30, 2020, gains of $0.3 million and losses of $10.8 million, respectively, were reclassified into net earnings in the Company’s Consolidated Condensed Statement of Earnings that offset the underlying transactions’ impact on earnings in the same period. The losses during the nine months ended September 30, 2020, were primarily associated with the termination of the net investment hedge related to the Swiss Franc debt that was terminated in connection with the sale of the inks product line on June 30, 2020. See Note 2, Divestitures, for additional information. There were no amounts reclassified into net earnings for the three and nine months ended September 30, 2019.
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Income Taxes |
9 Months Ended | ||
|---|---|---|---|
Sep. 30, 2020 | |||
| Income Taxes [Abstract] | |||
| Income Taxes |
The effective income tax rates for the three months ended September 30, 2020 and 2019, were 12.6% and 5.9%, respectively. For the nine months ended September 30, 2020 and 2019, the effective income tax rates were 20.8% and 17.5%, respectively. The effective tax rates for the three and nine months ended September 30, 2020 and 2019 were both impacted by changes in estimates associated with the finalization of prior year foreign tax items, audit settlements, changes in valuation allowances, and the mix of foreign earnings. The three and nine months ended September 30, 2020 were also impacted by a change in a reserve for an uncertain tax position.
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The CARES Act allows for the deferral of income and social security tax payments, a five-year carryback for net operating losses, changes to interest expense and business loss limitation rules, certain new tax credits, and certain new loans and grants to businesses. The Company has reviewed its income tax assumptions and projections in light of the CARES Act and has determined the CARES Act does not materially impact the Company’s income tax expense or projections. As of September 30, 2020, the Company has deferred certain payroll tax payments of $3.7 million as permitted by the CARES Act.
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Accumulated Other Comprehensive Income |
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| Accumulated Other Comprehensive Income |
The following table summarizes the changes in OCI during the three and nine month periods ended September 30, 2020 and 2019:
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Commitments and Contingencies |
9 Months Ended | ||
|---|---|---|---|
Sep. 30, 2020 | |||
| Commitments and Contingencies [Abstract] | |||
| Commitments and Contingencies |
Agar v. Sensient Natural Ingredients LLC
On March 29, 2019, Calvin Agar (Agar), a former employee, filed a Class Action Complaint in Stanislaus County Superior Court against Sensient Natural Ingredients LLC (SNI). On May 22, 2019, Agar filed a First Amended Class Action Complaint against SNI (the Complaint). Agar alleges that SNI improperly reported overtime pay on employees’ wage statements, in violation of the California Labor Code. The Complaint alleges two causes of action, both of which concern the wage statements.
The Complaint does not allege that SNI failed to pay any overtime due to Agar or any of the putative class or group members. The Complaint merely challenges the manner in which SNI has reported overtime pay on its wage statements.
SNI maintains that it has accurately paid Agar and the putative class members for all overtime worked, and that they have not experienced any harm. SNI further maintains that the format of its wage statements does not violate the requirements of state law or any specific guidance from California decisional law, the California Division of Labor Standards Enforcement, or the California Labor Commissioner's Office. Finally, SNI contended that certain of the state law claims are subject to mandatory individual arbitration.
SNI filed its Answer and Affirmative Defenses to the Complaint on July 10, 2019. The parties participated in an early mediation in the case in December 2019, which was not successful. On March 17, 2020, the Court granted Agar leave to file a Second Amended Complaint, which removed the claim that SNI had asserted was subject to mandatory individual arbitration. SNI filed a Demurrer to the Second Amended Complaint, seeking dismissal of the remaining claim, on May 1, 2020. The Court overruled the Demurrer on September 1, 2020. SNI is seeking discretionary appellate review of this decision. SNI continues to evaluate the developing legal authority on this issue. SNI intends to continue to vigorously defend its interests, absent a reasonable resolution.
Kelley v. Sensient Natural Ingredients LLC; Bryan v. Sensient Natural Ingredients LLC
On March 4, 2020, Monique Kelley filed a Class Action Complaint against SNI in Merced County Superior Court in California. Ms. Kelley worked at SNI for less than a week in 2017 through a temporary staffing company. Ms. Kelley has brought suit for purported violations of the California Labor Code and the California Business and Professions Code on her own behalf, and on behalf of all current and former California-based hourly-paid or non-exempt employees of SNI. Ms. Kelley specifically asserts claims for unpaid overtime wages, unpaid minimum wages, unpaid meal and rest break premiums, failure to timely pay final wages upon termination, non-compliant wage statements, and unreimbursed business expenses. SNI filed a Demurrer on May 21, 2020, seeking dismissal of the Complaint in its entirety on the grounds that it contains only boilerplate allegations that fail to state facts sufficient to constitute a cause of action, and it is otherwise uncertain, ambiguous, and unintelligible. SNI further sought dismissal of one cause of action based upon the statute of limitations. SNI simultaneously filed a Motion to Strike certain allegations in the Complaint as improperly pled. The Court sustained the Demurrer with leave to amend on August 25, 2020. The Court also granted the Motion to Strike. Pending the filing of an amended pleading, the parties have begun discovery.
On June 15, 2020, the same law firm representing Ms. Kelley also filed notice with the State of California of the intent to pursue a claim on a representative basis pursuant to the California Private Attorneys General Act of 2004 (PAGA). This notice was served on behalf of Julie Bryan, who worked at SNI through a temporary staffing agency in early 2020. The notice states the intent to pursue relief on behalf of Ms. Bryan as well as other alleged aggrieved employees, identified as all current and former hourly or non-exempt employees of SNI, whether hired directly or through staffing agencies or labor contractors. The notice alleges that SNI failed to properly pay Ms. Bryan and the other alleged aggrieved employees for all hours worked, failed to properly provide or compensate minimum and overtime wages and for meal and rest breaks, failed to issue compliant wage statements, and failed to reimburse for all necessary business-related expenses, in violation of the California Labor Code and California Industrial Welfare Commission Orders. On August 19, 2020, Ms. Bryan filed a Complaint in Merced County Superior Court asserting the claims set forth in her PAGA notice. SNI has filed its Answer and Affirmative Defenses, and the parties have entered the discovery phase of the case. SNI intends to vigorously defend its interests in both of these matters, absent a reasonable resolution.
Other Claims
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.
See Note 2, Divestitures, for information about estimated environmental remediation costs associated with our Granada, Spain, location.
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Subsequent Events |
9 Months Ended | ||
|---|---|---|---|
Sep. 30, 2020 | |||
| Subsequent Events [Abstract] | |||
| Subsequent Events |
On October 1, 2020, the Company amended its existing accounts receivable securitization program with Wells Fargo Bank, National Association to extend the expiration date of the program to October 2021, provide for the determination of an alternative interest rate, and exclude the receivables of certain obligors from the program.
On October 15, 2020, the Company announced its quarterly dividend of 39 cents per share would be payable on December 1, 2020.
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Accounting Policies (Policies) |
9 Months Ended |
|---|---|
Sep. 30, 2020 | |
| Accounting Policies [Abstract] | |
| Accounts Receivable |
Accounts Receivable
Receivables are recorded at their face amount, less an allowance for losses on doubtful accounts. The allowance for doubtful accounts is based on customer-specific analysis and expected future credit losses based on historical experience, current conditions, and expected future conditions. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible.
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| Recently Adopted/Issued Accounting Pronouncements |
Recently Adopted Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss impairment model with a methodology that reflects expected credit losses. Under the new standard, entities are required to measure expected credit losses on financial instruments held at amortized cost, including trade receivables, based on historical experience, current conditions, and reasonable forecasts. The Company adopted this standard in the first quarter of 2020. The adoption of this standard resulted in an increase of $0.9 million to the allowance for losses on Trade Accounts Receivable and a corresponding decrease in Earnings Reinvested in the Business as of January 1, 2020. The adoption of this standard did not have an impact on the Company’s Consolidated Condensed Statements of Earnings, or to cash provided by or used in operating, financing, or investing activities on the Company’s Consolidated Statements of Cash Flows.
In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates step two of the current goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. The Company adopted this standard in the first quarter of 2020, and the adoption did not have a material impact on the Company’s consolidated financial statements.
In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which changes the requirements for fair value measurements by removing, modifying, and adding certain disclosures. The Company adopted this standard in the first quarter of 2020, and the adoption did not have a material impact on the Company’s consolidated financial statements or its related disclosures.
Recently Issued Accounting Pronouncements
In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans Subtopic 715-20, which amends Accounting Standards Codification (ASC) 715-20, Compensation – Retirement Benefits – Defined Benefit Plans – General. This standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The effective date is January 1, 2021, with early adoption permitted. The Company is currently evaluating the potential impact of this standard on its disclosures.
In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other inter-bank offered rates to alternative rates. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements and its related disclosures.
Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2019, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change, except as discussed above.
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Divestitures (Tables) |
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| Divestitures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets and Liabilities Held for Sale |
The assets and liabilities related to the inks and fragrances product lines are recorded in Assets Held for Sale and Liabilities Held for Sale as of September 30, 2020, and December 31, 2019, as follows:
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Operational Improvement Plan (Tables) |
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| Operational Improvement Plan Costs by Segment |
The following table summarizes the Operational Improvement Plan costs by segment for the three and nine months ended September 30, 2020:
The Company recorded the Operational Improvement Plan costs for the three and nine months ended September 30, 2020, as follows:
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Trade Accounts Receivable (Tables) |
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| Changes in Allowance for Doubtful Accounts |
The following table summarizes the changes in the allowance for doubtful accounts during the three and nine month periods ended September 30, 2020:
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Segment Information (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information |
Operating results by segment for the periods presented are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Product Information |
Product Lines
|
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| Geographical Information |
Geographic Markets
|
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Retirement Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annual Benefit Cost |
The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows:
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Accumulated Other Comprehensive Income (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Changes in OCI |
The following table summarizes the changes in OCI during the three and nine month periods ended September 30, 2020 and 2019:
|
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Accounting Policies (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|---|
| New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||
| Allowance for losses on trade accounts receivable | $ 4,792 | $ 4,890 | $ 6,913 |
| Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASU 2016-13 [Member] | |||
| New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||
| Allowance for losses on trade accounts receivable | $ 900 |
Trade Accounts Receivable (Details) $ in Thousands |
3 Months Ended | 9 Months Ended |
|---|---|---|
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
Segment
|
|
| Trade Accounts Receivable [Abstract] | ||
| Number of portfolio segments | Segment | 1 | |
| Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
| Beginning balance | $ 4,890 | $ 6,913 |
| Provision for expected credit losses | 148 | 504 |
| Accounts written off | (453) | (1,080) |
| Divestiture | (2,174) | |
| Translation and other activity | 207 | (224) |
| Ending balance | $ 4,792 | 4,792 |
| ASU 2016-13 [Member] | ||
| Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
| Adoption of ASU 2016-13 | $ 853 |
Inventories (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Inventories [Abstract] | ||
| Inventories, including finished and in-process products | $ 274.5 | $ 313.1 |
| Raw materials and supplies | $ 126.5 | $ 109.4 |
Fair Value (Details) - Level 2 [Member] - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Investments, Fair Value Disclosure [Abstract] | ||
| Forward exchange contract, liability | $ 0.3 | $ 0.1 |
| Carrying Value [Member] | ||
| Investments, Fair Value Disclosure [Abstract] | ||
| Long term debt | 537.1 | |
| Fair Value [Member] | ||
| Investments, Fair Value Disclosure [Abstract] | ||
| Long term debt | $ 563.9 |
Segment Information, Operating Results by Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
| Revenue [Abstract] | ||||
| Revenue | $ 323,566 | $ 317,650 | $ 997,333 | $ 1,004,349 |
| Operating income (loss) | 41,155 | 38,788 | 117,841 | 135,576 |
| Interest expense | 3,497 | 4,936 | 11,412 | 15,538 |
| Earnings before income taxes | 37,658 | 33,852 | 106,429 | 120,038 |
| Flavors & Extracts [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 179,687 | 163,870 | 539,304 | 517,148 |
| Operating income (loss) | 23,844 | 17,600 | 67,467 | 60,775 |
| Interest expense | 0 | 0 | 0 | 0 |
| Earnings before income taxes | 23,844 | 17,600 | 67,467 | 60,775 |
| Color [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 113,139 | 123,710 | 369,211 | 399,610 |
| Operating income (loss) | 23,559 | 23,436 | 75,486 | 81,512 |
| Interest expense | 0 | 0 | 0 | 0 |
| Earnings before income taxes | 23,559 | 23,436 | 75,486 | 81,512 |
| Asia Pacific [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 30,740 | 30,070 | 88,818 | 87,591 |
| Operating income (loss) | 6,123 | 5,406 | 16,031 | 13,825 |
| Interest expense | 0 | 0 | 0 | 0 |
| Earnings before income taxes | 6,123 | 5,406 | 16,031 | 13,825 |
| Reportable Segments [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 330,020 | 324,707 | 1,023,242 | 1,028,706 |
| Reportable Segments [Member] | Flavors & Extracts [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 182,866 | 167,577 | 552,975 | 531,264 |
| Reportable Segments [Member] | Color [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 116,414 | 127,005 | 381,205 | 409,796 |
| Reportable Segments [Member] | Asia Pacific [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 30,740 | 30,125 | 89,062 | 87,646 |
| Intersegment Revenue [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 6,454 | 7,057 | 25,909 | 24,357 |
| Intersegment Revenue [Member] | Flavors & Extracts [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 3,179 | 3,707 | 13,671 | 14,116 |
| Intersegment Revenue [Member] | Color [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 3,275 | 3,295 | 11,994 | 10,186 |
| Intersegment Revenue [Member] | Asia Pacific [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 0 | 55 | 244 | 55 |
| Corporate & Other [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 0 | 0 | 0 | 0 |
| Operating income (loss) | (12,371) | (7,654) | (41,143) | (20,536) |
| Interest expense | 3,497 | 4,936 | 11,412 | 15,538 |
| Earnings before income taxes | $ (15,868) | $ (12,590) | $ (52,555) | $ (36,074) |
Segment Information, Revenue from External Customers by Product Line (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
| Revenue [Abstract] | ||||
| Revenue | $ 323,566 | $ 317,650 | $ 997,333 | $ 1,004,349 |
| Flavors, Extracts & Flavor Ingredients [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 98,952 | 88,404 | 302,047 | 292,347 |
| Natural Ingredients [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 60,937 | 53,220 | 175,764 | 156,864 |
| Fragrances [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 19,890 | 21,395 | 63,251 | 65,828 |
| Yogurt Fruit Preparations [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 3,087 | 4,558 | 11,913 | 16,225 |
| Food & Pharmaceutical Colors [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 83,406 | 81,805 | 261,024 | 259,249 |
| Personal Care [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 32,495 | 37,276 | 107,333 | 123,595 |
| Inks [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 513 | 7,924 | 12,848 | 26,952 |
| Asia Pacific [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 30,740 | 30,125 | 89,062 | 87,646 |
| Flavors & Extracts [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 179,687 | 163,870 | 539,304 | 517,148 |
| Flavors & Extracts [Member] | Flavors, Extracts & Flavor Ingredients [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 98,952 | 88,404 | 302,047 | 292,347 |
| Flavors & Extracts [Member] | Natural Ingredients [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 60,937 | 53,220 | 175,764 | 156,864 |
| Flavors & Extracts [Member] | Fragrances [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 19,890 | 21,395 | 63,251 | 65,828 |
| Flavors & Extracts [Member] | Yogurt Fruit Preparations [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 3,087 | 4,558 | 11,913 | 16,225 |
| Color [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 113,139 | 123,710 | 369,211 | 399,610 |
| Color [Member] | Food & Pharmaceutical Colors [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 83,406 | 81,805 | 261,024 | 259,249 |
| Color [Member] | Personal Care [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 32,495 | 37,276 | 107,333 | 123,595 |
| Color [Member] | Inks [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 513 | 7,924 | 12,848 | 26,952 |
| Asia Pacific [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 30,740 | 30,070 | 88,818 | 87,591 |
| Asia Pacific [Member] | Asia Pacific [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 30,740 | 30,125 | 89,062 | 87,646 |
| Intersegment Revenue [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 6,454 | 7,057 | 25,909 | 24,357 |
| Intersegment Revenue [Member] | Flavors & Extracts [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 3,179 | 3,707 | 13,671 | 14,116 |
| Intersegment Revenue [Member] | Color [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 3,275 | 3,295 | 11,994 | 10,186 |
| Intersegment Revenue [Member] | Asia Pacific [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | $ 0 | $ 55 | $ 244 | $ 55 |
Segment Information, Revenue from External Customers by Geographic Markets (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
| Revenue [Abstract] | ||||
| Revenue | $ 323,566 | $ 317,650 | $ 997,333 | $ 1,004,349 |
| North America [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 186,110 | 170,485 | 551,273 | 527,717 |
| Europe [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 62,221 | 69,123 | 209,425 | 239,412 |
| Asia Pacific [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 48,320 | 49,636 | 154,205 | 155,200 |
| Other [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 26,915 | 28,406 | 82,430 | 82,020 |
| Flavors & Extracts [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 179,687 | 163,870 | 539,304 | 517,148 |
| Color [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 113,139 | 123,710 | 369,211 | 399,610 |
| Asia Pacific [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 30,740 | 30,070 | 88,818 | 87,591 |
| Reportable Geographical Components [Member] | Flavors & Extracts [Member] | North America [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 124,125 | 109,659 | 361,653 | 335,521 |
| Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Europe [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 37,257 | 35,964 | 120,406 | 125,288 |
| Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Asia Pacific [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 7,905 | 7,002 | 25,363 | 24,041 |
| Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Other [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 10,400 | 11,245 | 31,882 | 32,298 |
| Reportable Geographical Components [Member] | Color [Member] | North America [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 61,937 | 60,801 | 189,572 | 192,109 |
| Reportable Geographical Components [Member] | Color [Member] | Europe [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 24,953 | 33,027 | 88,941 | 113,844 |
| Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 10,926 | 12,903 | 43,096 | 44,440 |
| Reportable Geographical Components [Member] | Color [Member] | Other [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 15,323 | 16,979 | 47,602 | 49,217 |
| Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 48 | 25 | 48 | 87 |
| Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 11 | 132 | 78 | 280 |
| Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | 29,489 | 29,731 | 85,746 | 86,719 |
| Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member] | ||||
| Revenue [Abstract] | ||||
| Revenue | $ 1,192 | $ 182 | $ 2,946 | $ 505 |
Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
| Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
| Service cost | $ 400 | $ 358 | $ 1,196 | $ 1,076 |
| Interest cost | 256 | 315 | 763 | 954 |
| Expected return on plan assets | (209) | (224) | (622) | (684) |
| Recognized actuarial loss (gain) | 16 | (40) | 47 | (118) |
| Total defined benefit expense | $ 463 | $ 409 | $ 1,384 | $ 1,228 |
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
| 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 | $ (1.4) | ||||
| Forward Exchange Contracts [Member] | Cash Flow Hedges [Member] | |||||
| Derivative instruments and hedging activity for the period [Abstract] | |||||
| Derivative, fair value | $ 23.8 | 23.8 | $ 59.9 | ||
| Foreign Currency Denominated Debt, Net Investment Hedging [Member] | |||||
| Derivative instruments and hedging activity for the period [Abstract] | |||||
| Amount of gain (loss) reclassified into net earnings | 0.3 | $ 0.0 | (10.8) | $ 0.0 | |
| Carrying value of foreign denominated debt | 316.7 | 316.7 | $ 363.4 | ||
| Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ 13.1 | $ 9.8 | |||
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
| Income Taxes [Abstract] | ||||
| Effective income tax rates | 12.60% | 5.90% | 20.80% | 17.50% |
| Deferred payroll tax payments | $ 3.7 | $ 3.7 | ||
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Beginning balance | $ 860,716 | $ 897,482 | $ 881,589 | $ 859,947 | ||
| Other comprehensive (loss) income before reclassifications | 18,527 | (17,771) | (16,159) | (15,414) | ||
| Amounts reclassified from OCI | (205) | 4 | (7,235) | (341) | ||
| Ending balance | 896,785 | 896,673 | 896,785 | 896,673 | ||
| Accumulated Other Comprehensive (Loss) Income [Member] | ||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Beginning balance | (204,724) | (163,543) | (163,008) | (165,555) | ||
| Ending balance | (186,402) | (181,310) | (186,402) | (181,310) | ||
| Cash Flow Hedges [Member] | ||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Beginning balance | [1] | (912) | (58) | (199) | 147 | |
| Other comprehensive (loss) income before reclassifications | [1] | 889 | (91) | (995) | (25) | |
| Amounts reclassified from OCI | [1] | 209 | 42 | 1,380 | (229) | |
| Ending balance | [1] | 186 | (107) | 186 | (107) | |
| Pension Items [Member] | ||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Beginning balance | [1] | (656) | 475 | (672) | 549 | |
| Other comprehensive (loss) income before reclassifications | [1] | 0 | 0 | 0 | 0 | |
| Amounts reclassified from OCI | [1] | 8 | (38) | 24 | (112) | |
| Ending balance | [1] | (648) | 437 | (648) | 437 | |
| Foreign Currency Items [Member] | ||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Beginning balance | (203,156) | (163,960) | (162,137) | (166,251) | ||
| Other comprehensive (loss) income before reclassifications | 17,638 | (17,680) | (15,164) | (15,389) | ||
| Amounts reclassified from OCI | (422) | 0 | (8,639) | 0 | ||
| Ending balance | $ (185,940) | $ (181,640) | $ (185,940) | $ (181,640) | ||
| ||||||
Subsequent Events (Details) |
Oct. 15, 2020
$ / shares
|
|---|---|
| Subsequent Events [Abstract] | |
| Dividend declared date | Oct. 15, 2020 |
| Dividend payable (in dollars per share) | $ 0.39 |
| Dividend payable date | Dec. 01, 2020 |