ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
(State of Incorporation)
|
|
(IRS Employer Identification Number)
|
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
|
|
|
5
|
|||
5
|
|||
5
|
|||
5
|
|||
6
|
|||
6
|
|||
6
|
|||
7
|
|||
7
|
|||
7
|
|||
7
|
|||
8
|
|||
8
|
|||
8
|
|||
8
|
|||
8
|
|||
10
|
|||
10
|
|||
18
|
|||
18
|
|||
19
|
|||
19
|
|||
19
|
|||
21
|
|||
21
|
|||
22
|
|||
22
|
|||
29
|
|||
31
|
|||
61
|
|||
61
|
|||
62
|
|||
63 | |||
63 | |||
63 | |||
63 | |||
63 | |||
63 | |||
64 | |||
64 | |||
64 | |||
70 | |||
70 | |||
70 | |||
64 | |||
71 |
Item 1. |
Business.
|
● |
flavors, flavor enhancers, ingredients, extracts, and bionutrients;
|
● |
essential oils;
|
● |
dehydrated vegetables and other food ingredients;
|
● |
natural and synthetic food and beverage colors;
|
● |
cosmetic colors and ingredients;
|
● |
pharmaceutical and nutraceutical excipients and ingredients; and
|
● |
technical colors, specialty colors, and specialty dyes and pigments.
|
● |
Sensient Food Colors (food and beverage colors);
|
● |
Sensient Pharmaceutical Coating Systems (pharmaceutical and nutraceutical colors and coatings);
|
● |
Sensient Cosmetic Technologies (cosmetic colors, ingredients, and systems); and
|
● |
Sensient Industrial Colors (paper colors; and industrial colors for plastics, leather, wood stains, antifreeze, landscaping, and other uses).
|
• |
Flavors & Extracts. Competition in the flavors, extracts, and ingredients industries continues to have an ever-increasing global
nature. Most of the Company’s customers do not buy all of their flavor and ingredients products from a single supplier, and the Company does not compete with a single supplier in all product categories. Competition for the supply of
flavors, extracts, and essential oils is based on the development of customized ingredients for new and reformulated customer products as well as on quality, customer service, and price. Competition
to supply dehydrated vegetable products is present through several large and small domestic competitors as well as competitors from other countries. Competition for the supply of dehydrated vegetables is based principally on product
quality, customer service, and price.
|
• |
Color. Competition in the color market is diverse, with the majority of the Company’s competitors specializing in either synthetic
dyes and pigments or natural colors or coloring foodstuffs (in Europe). The Company believes that it gains a competitive advantage as the only major basic manufacturer of a full range of color products, including synthetic dyes and
pigments as well as natural colors. Competition in the supply of cosmetic colors and ingredients, and pharmaceutical and nutraceutical ingredients and excipients is based on the development of customized products and solutions as well as
quality, customer service, and price. The Company believes that its reputation and capacity as a color producer as well as its product development and applications expertise give it a competitive advantage in these markets.
|
• |
Asia Pacific. The Company offers a broad array of products to customers through the Asia Pacific Group. Competition is based upon
reliability in product quality, service, and price as well as technical support available to customers.
|
• |
Implemented and regularly updated a company-wide COVID-19 policy, which includes (i) information regarding COVID-19, its symptoms, how to prevent its transmission, and what
to do if you may or do have COVID-19; (ii) requirements around hygiene, sanitation, and social distancing; (iii) travel guidelines; and (iv) expectations of employees working remotely;
|
• |
CEO town hall videos regularly shown to entire workforce include discussions of the expectations around illness prevention, hygiene, sanitation, social distancing, and
elevating issues to the CEO as well as encouraging all employees to become vaccinated with appropriate booster shots;
|
• |
Implemented and continually updated an “Are You Sick” Flow Chart (under the guidance of Director Dr. Donald Landry) setting forth a simple summary of required actions when an
employee feels ill or may have had possible exposure to COVID-19;
|
• |
Implemented a vaccine mandate in the United States and elsewhere, as permitted by local law, for all positions at the director level and above, and all customer-facing sales
roles.
|
• |
Produced a video Q&A session with the CEO and Director Dr. Donald Landry to discuss the benefits of the vaccine and to dispel myths concerning its safety and efficacy,
which was mandatory viewing for all employees;
|
• |
Purchase, distribution, and use of Corporate-sponsored COVID-19 test kits (PCR-based) with next day results in most locations to ensure business continuity and employee peace
of mind;
|
• |
Checklist for contact tracing, proactive cleaning, and work-relatedness assessment;
|
• |
Decontamination and sanitation protocols, including regular cleaning of work areas;
|
• |
Protective on-site measures to prevent transmission, that have evolved to take into account the fully vaccinated status of many employees and updated guidance concerning the
transmission of the virus, such as face coverings; visitor health screenings; manufacture and provision of hand sanitizer; reconfiguration of work areas to maximize distance between employees; installation of plexiglass barriers;
mandatory spacing in break rooms, conference rooms, and common areas; controlled traffic patterns to maximize distance; alternative work and break schedules; use of video conferencing; and signage in offices and facilities concerning
hygiene;
|
• |
Rapid conversion to remote work during government-mandated lockdowns and case surges for employees capable of performing work from home;
|
• |
“Return to Office” checklist to ensure safe transition of employees back to office setting;
|
• |
Use of Quality team to audit effectiveness of sanitation efforts in production and non-production areas, including office spaces, breakrooms, and laboratories;
|
• |
Developed a COVID-19 Response and Preparedness Plan template for local implementation;
|
• |
Notification to employees when positive cases in the local workforce occur;
|
• |
Designated key contacts leading COVID-19 response at local and Corporate level;
|
• |
Reasonable accommodation of employees at high risk for developing a severe case of COVID-19;
|
• |
Disciplinary action for employees violating social distancing and mask rules;
|
• |
COVID-19 in-house testing tracker to monitor COVID-19 testing and test kit inventory;
|
• |
Development of a vaccination roster for employees based in the United States; and
|
• |
Global COVID-19 tracker to monitor positive cases, quarantined employees, and other COVID-related absenteeism.
|
Item 1A. |
Risk Factors.
|
• |
The coronavirus/COVID-19 has significantly impacted worldwide economic conditions and could adversely affect
our results and financial condition.
|
• |
Intense competition with our competitors may result in reduced sales and profitability.
|
• |
Intense competition among our customers and their competitors may result in reduced sales and profitability for our customers and us.
|
• |
In some product lines, most of our sales are made to a relatively small number of customers; if we lose any of those customers, sales and operating
results could decline.
|
• |
Consolidation has resulted in customers with increased buying power, which can affect our profitability.
|
• |
Our sales and profitability are affected by changing consumer preferences, changing regulations and technologies, and our ability and our customers’
ability to make and sell to consumers in highly competitive markets.
|
• |
The financial condition of our customers may adversely affect their ability to buy products from us at current levels, to accept price increases, or to
pay for products that they have already purchased.
|
• |
If we do not maintain an efficient cost structure, our profitability could decrease.
|
• |
A disruption in our supply chain could adversely affect our profitability.
|
•
|
A disruption in our manufacturing operations could adversely affect our profitability.
|
• |
Our ability to efficiently manage inventory may not be as effective as we anticipate and may adversely impact our performance.
|
• |
Raw material, energy, labor, and transportation cost volatility, including inflation in prices due to ongoing supply chain challenges and other
macroeconomic forces, may reduce our profitability.
|
• |
The impact of currency exchange rate fluctuation may negatively affect our results.
|
•
|
Operating in foreign countries and emerging markets exposes us to increased risks, including economic, political, security, and international operation
risks.
|
•
|
The impact of tariffs and other trade barriers may negatively affect our results.
|
• |
Various stakeholders’ increasing and changing expectations and new regulations with respect to Environmental, Social, and Governance (ESG) matters may
impose additional costs on us or expose us to additional risks.
|
• |
The transition away from LIBOR could negatively impact our borrowing costs.
|
• |
World events and natural disasters are beyond our control and could affect our results.
|
• |
Many of our products are used in items for human consumption and contact. We may be subject to product liability claims and product recalls, which could
negatively impact our profitability and corporate image.
|
• |
There are an enormous number of laws and regulations applicable to us, our suppliers, and our customers across all of our business lines. Compliance with
these legal requirements is costly to us and can affect our operations as well as those of our suppliers and customers. Failure to comply could also be costly and disruptive.
|
• |
Environmental compliance may be costly to us.
|
• |
We could be adversely affected by violations of anti-bribery and anti-corruption laws and regulations.
|
• |
Changes in tax rates or tax laws could expose us to additional tax liabilities that may negatively affect our results.
|
• |
We depend on certain key personnel, and the loss of these persons may harm our business, including the loss of trade secrets.
|
• |
We face risks associated with strategic transactions that we have completed and may pursue in the future, which could adversely affect our operating
results.
|
• |
Our recent restructurings and the operational improvement plan may not be as effective as we anticipated and we may fail to realize the expected cost
savings.
|
•
|
Our ability to protect our intellectual property rights is key to our performance.
|
• |
Our ability to successfully maintain and upgrade our information technology systems, and to respond effectively to failures, disruptions, compromises, or
breaches of our information technology systems, may adversely affect our competitiveness and profitability.
|
Item 1B. |
Unresolved Staff Comments.
|
Item 2. |
Properties.
|
Item 3. |
Legal Proceedings.
|
Item 4. |
Mine Safety Disclosure.
|
Name
|
Age
|
Position
|
Paul Manning
|
47
|
Chairman, President, and Chief Executive Officer
|
Amy M. Agallar
|
44
|
Vice President and Treasurer
|
Michael C. Geraghty
|
60
|
President, Color Group
|
Thierry Hoang
|
39
|
Vice President, Asia Pacific Group
|
Amy Schmidt Jones
|
52
|
Vice President, Human Resources and Senior Counsel
|
John J. Manning
|
53
|
Senior Vice President, General Counsel, and Secretary
|
E. Craig Mitchell
|
57
|
President, Flavors and Extracts Group
|
Stephen J. Rolfs
|
57
|
Senior Vice President and Chief Financial Officer
|
Tobin Tornehl
|
48
|
Vice President, Controller and Chief Accounting Officer
|
• |
Mr. Paul Manning has held his present office since April 21, 2016, and previously served as President and Chief Executive Officer (2014 – April 2016).
|
• |
Ms. Agallar has held her present office since January 9, 2019. Prior to joining the Company, Ms. Agallar was Director – Business Development CIS of Modine Manufacturing (June
2018 – January 2019), and Director – Global Treasury Operations of Modine Manufacturing (2011– June 2018).
|
• |
Mr. Hoang has held his present office since June 1, 2018, and previously served as a General Manager, Business Unit Manager, and Sales Account Manager for Sensient Cosmetics
in France and Asia Pacific (2009 – May 2018).
|
• |
Ms. Jones has held her present office since April 2, 2018. Prior to joining the Company, Ms. Jones was a partner of Michael Best & Friedrich LLP (1998 – March 2018).
|
• |
Mr. John J. Manning has held his present office since April 21, 2016, and previously served as Vice President and Assistant General Counsel (2013 – April 2016).
|
• |
Mr. Mitchell has held his present office since September 17, 2018. Prior to joining the Company, Mr. Mitchell served as President and Chief Operating Officer of Sekisui
Specialty Chemical America, LLC (April 2016 – September 2018), and Vice President of Sales, Americas of Celanese Corporation (2013 – April 2016).
|
• |
Mr. Tornehl has held his present office since November 10, 2018, and previously served as Director, Finance (2008 – November 2018).
|
Item 5. |
Market for the Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity
Securities.
|
Period
|
Total
Number of
Shares
Purchased
|
Average
Price
Paid per
Share
|
Total Number of
shares purchased
as part of
publicly
announced plans
or programs
|
Maximum number
of shares that may
yet be purchased
under the plans or
programs
|
||||||||||||
October 1 to October 31, 2021
|
46,200
|
$
|
93.65
|
46,200
|
1,796,233
|
|||||||||||
November 1 to November 30, 2021
|
46,200
|
100.20
|
46,200
|
1,750,033
|
||||||||||||
December 1 to December 31, 2021
|
17,052
|
98.59
|
17,052
|
1,732,981
|
||||||||||||
Total
|
109,452
|
109,452
|
December
31, 2016
|
December
31, 2017
|
December
31, 2018
|
December
31, 2019
|
December
31, 2020
|
December
31, 2021
|
|||||||||||||||||||
Sensient Technologies Corporation
|
$
|
100
|
$
|
95
|
$
|
74
|
$
|
89
|
$
|
102
|
$
|
141
|
||||||||||||
S&P Midcap Specialty Chemicals Index
|
100
|
107
|
102
|
120
|
129
|
154
|
||||||||||||||||||
S&P Midcap Food Products Index
|
100
|
105
|
98
|
115
|
126
|
147
|
||||||||||||||||||
S&P 500 Index
|
100
|
122
|
116
|
153
|
181
|
233
|
Item 6. |
[Reserved]
|
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
2021
|
2020
|
|||||||
Rate before divestiture and discrete items
|
24.3
|
%
|
24.8
|
%
|
||||
Divestiture & other related costs impact
|
4.2
|
%
|
0.3
|
%
|
||||
Discrete items
|
(3.9
|
%)
|
(4.5
|
%)
|
||||
Reported effective tax rate
|
24.6
|
%
|
20.6
|
%
|
Twelve Months Ended December 31,
|
||||||||||||
(In thousands except per share amounts)
|
2021
|
2020
|
% Change
|
|||||||||
Revenue (GAAP)
|
$
|
1,380,264
|
$
|
1,332,001
|
3.6
|
%
|
||||||
Revenue of the divested product lines
|
(30,062
|
)
|
(113,553
|
)
|
||||||||
Adjusted revenue
|
$
|
1,350,202
|
1,218,448
|
10.8
|
%
|
|||||||
Operating Income (GAAP)
|
$
|
170,028
|
$
|
152,656
|
11.4
|
%
|
||||||
Divestiture & other related costs – Cost of products sold
|
86
|
1,795
|
||||||||||
Divestiture & other related costs – Selling and administrative expenses
|
14,052
|
10,360
|
||||||||||
Operating income of the divested product lines
|
(1,880
|
)
|
(7,580
|
)
|
||||||||
Operational improvement plan – Cost of products sold
|
-
|
35
|
||||||||||
Operational improvement plan – Selling and administrative (income) expenses
|
(1,895
|
)
|
3,304
|
|||||||||
COVID-19 employee payment– Cost of products sold
|
-
|
1,036
|
||||||||||
COVID-19 employee payment – Selling and administrative expenses
|
-
|
1,986
|
||||||||||
Adjusted operating income
|
$
|
180,391
|
$
|
163,592
|
10.3
|
%
|
||||||
Net Earnings (GAAP)
|
$
|
118,745
|
$
|
109,472
|
8.5
|
%
|
||||||
Divestiture & other related costs, before tax
|
14,138
|
12,155
|
||||||||||
Tax impact of divestiture & other related costs
|
2,092
|
(2,605
|
)
|
|||||||||
Net earnings of the divested product lines, before tax
|
(1,880
|
)
|
(7,580
|
)
|
||||||||
Tax impact of the divested product lines
|
460
|
1,945
|
||||||||||
Operational improvement plan (income) costs, before tax
|
(1,895
|
)
|
3,339
|
|||||||||
Tax impact of operational improvement plan
|
471
|
(826
|
)
|
|||||||||
COVID-19 employee payment, before tax
|
-
|
3,022
|
||||||||||
Tax impact of COVID-19 employee payment
|
-
|
(675
|
)
|
|||||||||
Adjusted net earnings
|
$
|
132,131
|
$
|
118,247
|
11.7
|
%
|
||||||
Diluted Earnings Per Share (GAAP)
|
$
|
2.81
|
$
|
2.59
|
8.5
|
%
|
||||||
Divestiture & other related costs, net of tax
|
0.38
|
0.23
|
||||||||||
Results of operations of the divested product lines, net of tax
|
(0.03
|
)
|
(0.13
|
)
|
||||||||
Operational improvement plan, net of tax
|
(0.03
|
)
|
0.06
|
|||||||||
COVID-19 employee payment, net of tax
|
-
|
0.06
|
||||||||||
Adjusted diluted earnings per share
|
$
|
3.13
|
$
|
2.79
|
12.2
|
%
|
Twelve Months Ended December 31, 2021
|
||||||||||||||||
Total
|
Foreign
Exchange
Rates
|
Adjustments(1)
|
Adjusted Local Currency
|
|||||||||||||
Revenue
|
||||||||||||||||
Flavors & Extracts
|
(0.4
|
%)
|
1.6
|
%
|
(11.4
|
%)
|
9.4
|
%
|
||||||||
Color
|
8.8
|
%
|
2.1
|
%
|
(2.7
|
%)
|
9.4
|
%
|
||||||||
Asia Pacific
|
11.6
|
%
|
1.7
|
%
|
(0.2
|
%)
|
10.1
|
%
|
||||||||
Total Revenue
|
3.6
|
%
|
1.8
|
%
|
(7.3
|
%)
|
9.1
|
%
|
||||||||
Operating Income
|
||||||||||||||||
Flavors & Extracts
|
8.4
|
%
|
1.2
|
%
|
(8.0
|
%)
|
15.2
|
%
|
||||||||
Color
|
7.9
|
%
|
2.6
|
%
|
0.5
|
%
|
4.8
|
%
|
||||||||
Asia Pacific
|
19.3
|
%
|
(1.8
|
%)
|
(0.5
|
%)
|
21.6
|
%
|
||||||||
Corporate & Other
|
3.7
|
%
|
0.0
|
%
|
(18.4
|
%)
|
22.1
|
%
|
||||||||
Total Operating Income
|
11.4
|
%
|
2.1
|
%
|
1.0
|
%
|
8.3
|
%
|
||||||||
Diluted Earnings per Share
|
8.5
|
%
|
1.9
|
%
|
(3.4
|
%)
|
10.0
|
%
|
(1)
|
For Revenue, adjustments consist of revenues of the divested product lines. For Operating Income and Diluted Earnings per Share, adjustments consist of the
results of the divested product lines, divestitures & other related costs, operational improvement plan costs and income, and the 2020 one-time COVID-19 employee payment.
|
Item 7A. |
Quantitative and Qualitative Disclosures about Market Risk.
|
|
Years Ended December 31,
|
|||||||||||
(In thousands except per share amounts)
|
2021
|
2020
|
2019
|
|||||||||
Revenue
|
$
|
|
$
|
|
$
|
|
||||||
Cost of products sold
|
|
|
|
|||||||||
Selling and administrative expenses
|
|
|
|
|||||||||
Operating income
|
|
|
|
|||||||||
Interest expense
|
|
|
|
|||||||||
Earnings before income taxes
|
|
|
|
|||||||||
Income taxes
|
|
|
|
|||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
||||||
|
||||||||||||
Earnings per common share:
|
||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
||||||
Diluted
|
$
|
|
$
|
|
$
|
|
||||||
|
||||||||||||
Weighted average number of common shares outstanding:
|
||||||||||||
Basic
|
|
|
|
|||||||||
Diluted
|
|
|
|
(In thousands)
|
Years Ended December 31,
|
|||||||||||
|
2021
|
2020
|
2019
|
|||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
||||||
Cash flow hedges adjustment, net of tax expense (benefit) of ($
|
(
|
)
|
|
(
|
)
|
|||||||
Pension adjustment, net of tax expense (benefit) of $
|
|
(
|
)
|
(
|
)
|
|||||||
Foreign currency translation on net investment hedges
|
|
(
|
)
|
|
||||||||
Tax effect of current year activity on net investment hedges
|
(
|
)
|
|
(
|
)
|
|||||||
Foreign currency translation on long-term intercompany loans
|
|
(
|
)
|
(
|
)
|
|||||||
Tax effect of current year activity on intercompany long-term loans
|
(
|
)
|
|
(
|
)
|
|||||||
Reclassification of cumulative translation to net earnings
|
|
(
|
)
|
|
||||||||
Other foreign currency translation
|
(
|
)
|
|
|
||||||||
Total comprehensive income
|
$
|
|
$
|
|
$
|
|
(In thousands except share and per share amounts)
|
December 31,
|
|||||||
|
2021
|
2020
|
||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Trade accounts receivable
|
|
|
||||||
Inventories
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Assets held for sale
|
|
|
||||||
Total current assets
|
|
|
||||||
Other assets
|
|
|
||||||
Deferred tax assets
|
|
|
||||||
Intangible assets, net
|
|
|
||||||
Goodwill
|
|
|
||||||
Property, Plant, and Equipment:
|
||||||||
Land
|
|
|
||||||
Buildings
|
|
|
||||||
Machinery and equipment
|
|
|
||||||
Construction in progress
|
|
|
||||||
|
|
|
||||||
Less accumulated depreciation
|
(
|
)
|
(
|
)
|
||||
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
|
||||||||
Liabilities and Shareholders’ Equity
|
||||||||
Current Liabilities:
|
||||||||
Trade accounts payable
|
$
|
|
$
|
|
||||
Accrued salaries, wages, and withholdings from employees
|
|
|
||||||
Other accrued expenses
|
|
|
||||||
Income taxes
|
|
|
||||||
Short-term borrowings
|
|
|
||||||
Liabilities held for sale
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Deferred tax liabilities
|
|
|
||||||
Other liabilities
|
|
|
||||||
Accrued employee and retiree benefits
|
|
|
||||||
Long-term debt
|
|
|
||||||
Shareholders’ Equity:
|
||||||||
Common stock, par value $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Earnings reinvested in the business
|
|
|
||||||
Treasury stock,
|
(
|
)
|
(
|
)
|
||||
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
(In thousands)
|
Years ended December 31,
|
|||||||||||
|
2021
|
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 loss (gain) on assets
|
|
(
|
)
|
(
|
)
|
|||||||
Loss on divestitures and other charges
|
|
|
|
|||||||||
Deferred income taxes
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Changes in operating assets and liabilities:
|
||||||||||||
Trade accounts receivable
|
(
|
)
|
(
|
)
|
|
|||||||
Inventories
|
(
|
)
|
|
|
||||||||
Prepaid expenses and other assets
|
(
|
)
|
(
|
)
|
|
|||||||
Trade 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 divestiture of businesses
|
|
|
|
|||||||||
Acquisition of new business
|
(
|
)
|
|
|
||||||||
Other investing activities
|
|
|
(
|
)
|
||||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
||||||||||||
Cash Flows from Financing Activities
|
||||||||||||
Proceeds from additional borrowings
|
|
|
|
|||||||||
Debt payments
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Purchase of treasury stock
|
(
|
)
|
|
|
||||||||
Dividends paid
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Other financing activities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net cash used in financing activities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
(
|
)
|
|
|
||||||||
|
||||||||||||
Net increase (decrease) in cash and cash equivalents
|
|
|
(
|
)
|
||||||||
Cash and cash equivalents at beginning of year
|
|
|
|
|||||||||
|
||||||||||||
Cash and cash equivalents at end of year
|
$
|
|
$
|
|
$
|
|
||||||
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$
|
|
$
|
|
$
|
|
||||||
Income taxes
|
|
|
|
|||||||||
Capitalized interest
|
|
|
|
(In thousands except share and per share amounts)
|
Common
|
Additional
Paid-in
|
Earnings
Reinvested
in the
|
Treasury Stock
|
Accumulated
Other
Comprehensive
|
|||||||||||||||||||
|
Stock
|
Capital
|
Business
|
Shares
|
Amount
|
(Loss) Income
|
||||||||||||||||||
Balances at December 31, 2018
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||||||||
Net earnings
|
|
|||||||||||||||||||||||
Other comprehensive income
|
|
|||||||||||||||||||||||
Cash dividends paid – $
|
(
|
)
|
||||||||||||||||||||||
Share-based compensation
|
(
|
)
|
||||||||||||||||||||||
Non-vested stock issued upon vesting
|
(
|
)
|
(
|
)
|
|
|||||||||||||||||||
Benefit plans
|
|
(
|
)
|
|
||||||||||||||||||||
Other
|
(
|
)
|
|
(
|
)
|
|
||||||||||||||||||
Balances at December 31, 2019
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Net earnings
|
|
|||||||||||||||||||||||
Other comprehensive income
|
|
|||||||||||||||||||||||
Cash dividends paid – $
|
(
|
)
|
||||||||||||||||||||||
Share-based compensation
|
|
|||||||||||||||||||||||
Non-vested stock issued upon vesting
|
(
|
)
|
(
|
)
|
|
|||||||||||||||||||
Benefit plans
|
|
(
|
)
|
|
||||||||||||||||||||
Other
|
(
|
)
|
( |
) |
|
(
|
)
|
|||||||||||||||||
Balances at December 31, 2020
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Net earnings
|
|
|||||||||||||||||||||||
Other comprehensive loss
|
(
|
)
|
||||||||||||||||||||||
Cash dividends paid – $
|
(
|
)
|
||||||||||||||||||||||
Share-based compensation
|
|
|||||||||||||||||||||||
Non-vested stock issued upon vesting
|
(
|
)
|
(
|
)
|
|
|||||||||||||||||||
Benefit plans
|
|
(
|
)
|
|
||||||||||||||||||||
Purchase of treasury stock | ( |
) | ||||||||||||||||||||||
Other
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||
Balances at December 31, 2021
|
$
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
(
|
)
|
• |
Identification of the contract, or contracts, with a customer
|
• |
Identification of the performance obligations in the contract
|
• |
Determination of the transaction price
|
• |
Allocation of the transaction price to the performance obligations in the contract
|
• |
Recognition of revenue when, or as, the Company satisfies the performance obligations
|
|
Years Ended December 31,
|
|||||||||||
(In thousands except per share amounts)
|
2021
|
2020
|
2019
|
|||||||||
Numerator:
|
||||||||||||
Net earnings
|
$
|
|
$
|
|
$
|
|
||||||
Denominator:
|
||||||||||||
Denominator for basic EPS - weighted average common shares
|
|
|
|
|||||||||
Effect of dilutive securities
|
|
|
|
|||||||||
Denominator for diluted EPS - diluted weighted average shares outstanding
|
|
|
|
|||||||||
|
||||||||||||
Earnings per Common Share:
|
||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
||||||
Diluted
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Allowance for
Doubtful Accounts
|
|||
Balance at December 31, 2019
|
$
|
|
||
Adoption of ASU 2016-13
|
|
|||
Provision for expected credit losses
|
|
|||
Accounts written off
|
(
|
)
|
||
Divestitures
|
(
|
)
|
||
Translation and other activity
|
(
|
)
|
||
Balance at December 31, 2020
|
$
|
|
||
Provision for expected credit losses |
||||
Accounts written off |
( |
) | ||
Translation and other activity |
( |
) | ||
Balance at December 31, 2021 | $ |
|
2021
|
2020
|
||||||||||||||||||
(In thousands except weighted average amortization years)
|
Weighted
Average
Amortization
Years
|
Cost
|
Accumulated
Amortization
|
Cost
|
Accumulated
Amortization
|
|||||||||||||||
|
||||||||||||||||||||
Technological know-how
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|||||||||
Customer relationships
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||
Patents, trademarks, non-compete agreements, and other
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||
Total finite-lived intangibles
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
Balance as of December 31,
2019
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Currency translation impact
|
|
|
|
|
||||||||||||
Goodwill related to divestitures(1)
|
|
|
|
|
||||||||||||
Balance as of December 31,
2020
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Currency translation impact
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Goodwill related to divestitures(2)
|
(
|
)
|
|
|
(
|
)
|
||||||||||
Acquisitions(3)
|
||||||||||||||||
Balance as of December 31,
2021
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|
(2) |
|
(3) |
|
(In thousands)
|
||||
Year ending December 31,
|
||||
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
Thereafter
|
|
|||
Total lease payments
|
|
|||
Less imputed interest
|
(
|
)
|
||
Present value of lease liabilities
|
$
|
|
(In thousands)
|
2021
|
2020
|
||||||
|
$
|
|
$
|
|
||||
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
|
|
|
||||||
Term loan
|
|
|
||||||
Revolving Credit Facilities
|
|
|
||||||
Various other notes
|
|
|
||||||
Total debt
|
|
|
||||||
Less debt fees
|
(
|
)
|
(
|
)
|
||||
Less current portion
|
(
|
)
|
(
|
)
|
||||
Total long-term debt
|
$
|
|
$
|
|
(In thousands)
|
||||
Year ending December 31,
|
||||
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
Thereafter
|
|
|||
Total long-term debt maturities
|
$
|
|
|
Actual
|
Required
|
|
Debt to EBITDA(1) (Maximum)
|
|
<
|
|
Interest Coverage (Minimum)
|
|
>
|
(1) |
|
(In thousands)
|
2021
|
2020
|
||||||
U.S. credit facilities
|
$
|
|
$
|
|
||||
Current maturities of long-term debt
|
|
|
||||||
Loans of foreign subsidiaries
|
|
|
||||||
Total
|
$
|
|
$
|
|
(In thousands except fair value)
|
Shares
|
Grant Date
Weighted Average
Fair Value
|
Aggregate Intrinsic
Value
|
|||||||||
Outstanding at December 31,
2018
|
|
$
|
|
$
|
|
|||||||
Granted
|
|
|
||||||||||
Vested
|
(
|
)
|
|
|||||||||
Cancelled
|
(
|
)
|
|
|||||||||
Outstanding at December 31,
2019
|
|
|
|
|||||||||
Granted
|
|
|
||||||||||
Vested
|
(
|
)
|
|
|||||||||
Cancelled
|
(
|
)
|
|
|||||||||
Outstanding at December 31,
2020
|
|
|
|
|||||||||
Granted
|
|
|
||||||||||
Vested
|
(
|
)
|
|
|||||||||
Cancelled
|
(
|
)
|
|
|||||||||
Outstanding at December 31,
2021
|
|
$
|
|
$
|
|
(In thousands)
|
2021
|
2020
|
||||||
Benefit obligation at beginning of year
|
$
|
|
$
|
|
||||
Service cost
|
|
|
||||||
Interest cost
|
|
|
||||||
Foreign currency exchange rate changes
|
(
|
)
|
|
|||||
Benefits and settlements paid
|
(
|
)
|
(
|
)
|
||||
Amendments
|
|
|
||||||
Actuarial (gain) loss
|
(
|
)
|
|
|||||
Benefit obligation at end of year
|
|
|
||||||
Plan assets at beginning of year
|
|
|
||||||
Company contributions
|
|
|
||||||
Foreign currency exchange rate changes
|
(
|
)
|
|
|||||
Benefits paid
|
(
|
)
|
(
|
)
|
||||
Settlement payments |
( |
) | ||||||
Actual (loss) gain on plan assets
|
(
|
)
|
|
|||||
Plan assets at end of year
|
|
|
||||||
Funded status
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Accumulated benefit obligation
|
$
|
|
$
|
|
(In thousands)
|
2021
|
2020
|
||||||
Accrued employee and retiree benefits
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Other accrued expenses
|
(
|
)
|
(
|
)
|
||||
Other assets
|
|
|
||||||
Net liability
|
$
|
(
|
)
|
$
|
(
|
)
|
(In thousands)
|
2021
|
2020
|
2019
|
|||||||||
Service cost
|
$
|
|
$
|
|
$
|
|
||||||
Interest cost
|
|
|
|
|||||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Recognized actuarial loss (gain)
|
|
|
(
|
)
|
||||||||
Settlement income
|
(
|
)
|
|
|
||||||||
Defined benefit expense
|
$
|
|
$
|
|
$
|
|
|
2021
|
2020
|
||||||
Discount rate
|
|
%
|
|
%
|
||||
Expected return on plan assets
|
|
%
|
|
%
|
||||
Rate of compensation increase
|
|
%
|
|
%
|
|
2021
|
2020
|
2019
|
|||||||||
Discount rate
|
|
%
|
|
%
|
|
%
|
||||||
Expected return on plan assets
|
|
%
|
|
%
|
|
%
|
||||||
Rate of compensation increase
|
|
%
|
|
%
|
|
%
|
(In thousands)
|
2021
|
2020
|
||||||
Unrecognized net actuarial loss
|
$
|
|
$
|
|
||||
Prior service cost
|
|
|
||||||
Total before tax effects
|
$
|
|
$
|
|
(In thousands)
|
2021
|
2020
|
2019
|
|||||||||
Net actuarial gain (loss) arising during the period
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Prior service cost
|
|
(
|
)
|
|
||||||||
Amortization of actuarial loss (gain), included in defined benefit expense
|
|
|
(
|
)
|
||||||||
Pension adjustment, net of tax
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
|
Fair Value
as of
December 31,
|
Fair Value Measurements at
December 31, 2021
Using Fair Value Hierarchy
|
Fair Value
as of
December 31,
|
Fair Value Measurements at
December 31, 2020
Using Fair Value Hierarchy
|
||||||||||||||||||||||||||||
(In thousands)
|
2021
|
Level 1
|
Level 2
|
Level 3
|
2020
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||||||||||
Equity Funds
|
||||||||||||||||||||||||||||||||
Domestic
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
International
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
International Fixed Income Funds
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Other investments
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total assets at fair value
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Level 1: |
Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
Level 2: |
Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data.
|
Level 3: |
Unobservable inputs that reflect the reporting entity’s own assumptions.
|
(In thousands)
|
Cash Flow
Hedges (1)
|
Pension
Items (1)
|
Foreign Currency
Items
|
Total
|
||||||||||||
Balance as of December 31,
2018
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||
Other comprehensive income (loss) before reclassifications
|
(
|
)
|
(
|
)
|
|
|
||||||||||
Amounts reclassified from OCI
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||
Balance as of December 31,
2019
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Other comprehensive income (loss) before reclassifications
|
(
|
)
|
(
|
)
|
|
|
||||||||||
Amounts reclassified from OCI
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Balance as of December 31,
2020
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
|
|
(
|
)
|
(
|
)
|
||||||||||
Amounts reclassified from OCI
|
(
|
)
|
|
|
|
|||||||||||
Balance as of December 31,
2021
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(1) |
|
(In thousands)
|
2021
|
2020
|
2019
|
|||||||||
United States
|
$
|
|
$
|
|
$
|
|
||||||
Foreign
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
2021
|
2020
|
2019
|
|||||||||
Current income tax expense:
|
||||||||||||
Federal
|
$
|
|
$
|
|
$
|
|
||||||
State
|
|
|
|
|||||||||
Foreign
|
|
|
|
|||||||||
|
|
|
|
|||||||||
Deferred expense (benefit):
|
||||||||||||
Federal
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
State
|
(
|
)
|
(
|
)
|
|
|||||||
Foreign
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Income taxes
|
$
|
|
$
|
|
$
|
|
|
2021
|
2020
|
2019
|
|||||||||
Taxes at statutory rate
|
|
%
|
|
%
|
|
%
|
||||||
State income taxes, net of federal income tax benefit
|
|
|
|
|||||||||
Tax credits
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Taxes on foreign earnings
|
|
|
|
|||||||||
Global Intangible Low-Taxed Income
|
|
|
|
|||||||||
Foreign Derived Intangible Income
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Loss on balance sheet hedge
|
|
|
|
|||||||||
Resolution of prior years’ tax matters
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Valuation allowance adjustments
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Other, net
|
(
|
)
|
(
|
)
|
|
|||||||
Effective tax rate
|
|
%
|
|
%
|
|
%
|
(In thousands)
|
2021
|
2020
|
||||||
Deferred tax assets:
|
||||||||
Benefit plans
|
$
|
|
$
|
|
||||
Liabilities and reserves
|
|
|
||||||
Operating loss and credit carryovers
|
|
|
||||||
Other
|
|
|
||||||
Gross deferred tax assets
|
|
|
||||||
Valuation allowance
|
(
|
)
|
(
|
)
|
||||
Deferred tax assets
|
|
|
||||||
Deferred tax liabilities:
|
||||||||
Property, plant, and equipment
|
(
|
)
|
(
|
)
|
||||
Goodwill
|
(
|
)
|
(
|
)
|
||||
Deferred tax liabilities
|
(
|
)
|
(
|
)
|
||||
Net deferred tax assets
|
$
|
|
$
|
|
(In thousands)
|
2021
|
2020
|
||||||
Balance at beginning of year
|
$
|
|
$
|
|
||||
Increases for tax positions taken in the current year
|
|
|
||||||
Increases for tax positions taken in prior years
|
|
|
||||||
Decreases related to settlements with tax authorities
|
(
|
)
|
(
|
)
|
||||
Decreases as a result of lapse of the applicable statutes of limitations
|
(
|
)
|
(
|
)
|
||||
Foreign currency exchange rate changes
|
(
|
)
|
|
|||||
Balance at the end of year
|
$
|
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Corporate
& Other
|
Consolidated
|
|||||||||||||||
2021:
|
||||||||||||||||||||
Revenue from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment revenue
|
|
|
|
|
|
|||||||||||||||
Total revenue
|
|
|
|
|
|
|||||||||||||||
|
||||||||||||||||||||
Operating income (loss)
|
|
|
|
(
|
)
|
|
||||||||||||||
Interest expense
|
|
|
|
|
|
|||||||||||||||
Earnings (loss) before income taxes
|
|
|
|
(
|
)
|
|
||||||||||||||
|
||||||||||||||||||||
Assets
|
|
|
|
|
|
|||||||||||||||
Capital expenditures
|
|
|
|
|
|
|||||||||||||||
Depreciation and amortization
|
|
|
|
|
|
|||||||||||||||
|
||||||||||||||||||||
2020:
|
||||||||||||||||||||
Revenue from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment revenue
|
|
|
|
|
|
|||||||||||||||
Total revenue
|
|
|
|
|
|
|||||||||||||||
|
||||||||||||||||||||
Operating income (loss)
|
|
|
|
(
|
)
|
|
||||||||||||||
Interest expense
|
|
|
|
|
|
|||||||||||||||
Earnings (loss) before income taxes
|
|
|
|
(
|
)
|
|
||||||||||||||
|
||||||||||||||||||||
Assets
|
|
|
|
|
|
|||||||||||||||
Capital expenditures
|
|
|
|
|
|
|||||||||||||||
Depreciation and amortization
|
|
|
|
|
|
|||||||||||||||
|
||||||||||||||||||||
2019:
|
||||||||||||||||||||
Revenue from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Intersegment revenue
|
|
|
|
|
|
|||||||||||||||
Total revenue
|
|
|
|
|
|
|||||||||||||||
|
||||||||||||||||||||
Operating income (loss)
|
|
|
|
(
|
)
|
|
||||||||||||||
Interest expense
|
|
|
|
|
|
|||||||||||||||
Earnings (loss) before income taxes
|
|
|
|
(
|
)
|
|
||||||||||||||
|
||||||||||||||||||||
Assets
|
|
|
|
|
|
|||||||||||||||
Capital expenditures
|
|
|
|
|
|
|||||||||||||||
Depreciation and amortization
|
|
|
|
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Corporate
& Other
|
Consolidated
|
|||||||||||||||
2021:
|
||||||||||||||||||||
Revenue from external customers:
|
||||||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Asia Pacific
|
|
|
|
|
|
|||||||||||||||
Other
|
|
|
|
|
|
|||||||||||||||
Total revenue from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Long-lived assets:
|
||||||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Asia Pacific
|
|
|
|
|
|
|||||||||||||||
Other
|
|
|
|
|
|
|||||||||||||||
Total long-lived assets
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
|
||||||||||||||||||||
2020:
|
||||||||||||||||||||
Revenue from external customers:
|
||||||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Asia Pacific
|
|
|
|
|
|
|||||||||||||||
Other
|
|
|
|
|
|
|||||||||||||||
Total revenue from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Long-lived assets:
|
||||||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Asia Pacific
|
|
|
|
|
|
|||||||||||||||
Other
|
|
|
|
|
|
|||||||||||||||
Total long-lived assets
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
|
||||||||||||||||||||
2019:
|
||||||||||||||||||||
Revenue from external customers:
|
||||||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Asia Pacific
|
|
|
|
|
|
|||||||||||||||
Other
|
|
|
|
|
|
|||||||||||||||
Total revenue from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Long-lived assets:
|
||||||||||||||||||||
North America
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Europe
|
|
|
|
|
|
|||||||||||||||
Asia Pacific
|
|
|
|
|
|
|||||||||||||||
Other
|
|
|
|
|
|
|||||||||||||||
Total long-lived assets
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Flavors &
Extracts
|
Color
|
Asia Pacific
|
Consolidated
|
||||||||||||
2021:
|
||||||||||||||||
Flavors, Extracts & Flavor Ingredients
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Natural Ingredients
|
|
|
|
|
||||||||||||
Fragrances
|
|
|
|
|
||||||||||||
Yogurt Fruit Preparations
|
|
|
|
|
||||||||||||
Food & Pharmaceutical Colors
|
|
|
|
|
||||||||||||
Personal Care
|
|
|
|
|
||||||||||||
Inks
|
|
|
|
|
||||||||||||
Asia Pacific
|
|
|
|
|
||||||||||||
Intersegment Revenue
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total revenue from external customers
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
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
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
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)
|
December 31, 2020
|
|||
Assets held for sale:
|
||||
Trade accounts receivable, less allowance for losses of $
|
$
|
|
||
Inventories
|
|
|||
Prepaid expenses and other current assets
|
|
|||
Property, Plant, and Equipment, net
|
|
|||
Intangible assets
|
|
|||
Assets held for sale
|
$
|
|
||
Liabilities held for sale:
|
||||
Trade accounts payable
|
$
|
|
||
Accrued salaries, wages, and withholdings from employees
|
|
|||
Other accrued expenses
|
|
|||
Liabilities held for sale
|
$
|
|
(In thousands)
|
Yogurt Fruit Preparations
|
Fragrances
|
Inks
|
Corporate/
Other
|
Consolidated
|
|||||||||||||||
Non-cash impairment charges – Selling and administrative expenses
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
Non-cash charges – Cost of products sold
|
|
|
(
|
)
|
|
|
||||||||||||||
Reclassification of foreign currency translation and related items – Selling and administrative expenses
|
|
|
|
|
|
|||||||||||||||
Other costs - Selling and administrative expenses(1)
|
|
|
(
|
)
|
|
|
||||||||||||||
Total
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|
(1) |
|
(In thousands)
|
Yogurt Fruit Preparations
|
Fragrances
|
Inks
|
Corporate/
Other
|
Consolidated
|
|||||||||||||||
Non-cash impairment charges – Selling and administrative expenses
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Non-cash charges – Cost of products sold
|
|
|
(
|
)
|
|
|
||||||||||||||
Reclassification of foreign currency translation and related items – Selling and administrative expenses
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||
Other costs - Selling and administrative expenses(1)
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
(1) |
|
(In thousands)
|
Yogurt Fruit Preparations
|
Fragrances
|
Inks
|
Corporate/
Other
|
Consolidated
|
|||||||||||||||
Non-cash impairment charges – Selling and administrative expenses
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Non-cash charges – Cost of products sold
|
|
|
|
|
|
|||||||||||||||
Other costs - Selling and administrative expenses(1)
|
|
|
|
|
|
|||||||||||||||
Other costs – Cost of products sold(2)
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
(1) |
|
|
(2) |
(In thousands)
|
Flavors & Extracts
|
Color
|
Asia
Pacific
|
Consolidated
|
||||||||||||
Employee separation
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Other income(1)
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Other costs(2)
|
|
|
|
|
||||||||||||
Total
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
(1) |
|
(2) |
|
(In thousands)
|
Flavors & Extracts
|
Color
|
Asia
Pacific
|
Consolidated
|
||||||||||||
Employee separation
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other costs(1)
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|
(In thousands)
|
Selling and Administrative Expenses
|
Cost of Products Sold
|
Consolidated
|
|||||||||
Employee separation
|
$
|
|
$
|
|
$
|
|
||||||
Other costs(1)
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
(1) |
|
Report of Independent Registered Public Accounting Firm
|
The Board of Directors and Shareholders of
Sensient Technologies Corporation
Milwaukee, Wisconsin
|
|
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Sensient Technologies Corporation and subsidiaries (the Company) as of
December 31, 2021 and 2020, the related consolidated statements of earnings, comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period ended December 31, 2021, and the related notes and the financial
statement schedule listed in the Index at Item 15 (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of
the Company at December 31, 2021 and 2020, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with U.S. generally accepted accounting principles.
|
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the
Company’s internal control over financial reporting as of December 31, 2021, based on the criteria established in the Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013
framework) and our report dated February 18, 2022 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s
financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules
and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements,
whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
|
|
|
Income Taxes--Valuation Allowances for Deferred Tax Assets
|
Description of the Matter
|
|
As described in Note 11 to the consolidated financial statements, at December 31, 2021, the Company had gross deferred tax assets of
$106.0 million, $68.6 million of which relate to net operating losses (NOLs), foreign tax credits and other tax credits reduced by a $36.9 million valuation allowance. Deferred tax assets are reduced by a valuation allowance if, based
upon the weight of all available evidence, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized.
Management’s analysis of the realizability of its deferred tax assets related to NOLs, foreign tax credits and other tax credits was
significant to our audit because the amounts are material to the financial statements and the assessment process related to the realizability of these deferred tax assets is complex, and involves significant judgments that include
projections of income, sources of income and tax planning strategies.
|
How We Addressed the Matter in Our Audit
|
|
We tested controls relating to the realizability of deferred tax assets, including controls over management’s projections of future
taxable income, the future reversal of existing taxable temporary differences and management’s identification and use of available tax planning strategies.
To test management’s assessment of the realizability of its deferred tax assets related to NOLs, foreign and other tax credits, our
audit procedures included, among others, evaluation of the assumptions used by the Company to develop tax planning strategies and projections of future taxable income by jurisdiction and testing the completeness and accuracy of the
underlying data used in its projections. We involved our tax professionals to evaluate the application of tax law in the Company’s available tax planning strategies and projections of future taxable income. We assessed the historical
accuracy of management’s projections and reconciled the projections of future taxable income with other forecasted financial information prepared by the Company. We also tested the Company’s scheduling of the reversal of existing
temporary taxable differences.
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
|
Item 15.
|
Exhibit and Financial Statement Schedules.
|
33
|
||
31
|
||
32
|
||
35
|
||
34
|
||
36-59
|
||
60
|
Exhibit
Number
|
Description
|
Incorporated by
Reference from
|
Filed
Herewith
|
|||
Sensient Technologies Corporation Amended and Restated Articles of Incorporation
|
Exhibit 3.1 to Current Report on Form 8-K dated July 24, 2017 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Corporation Amended and Restated By-Laws
|
Exhibit 3.1 to Current Report on Form 8-K dated filed February 15, 2022 (Commission File No. 1-7626)
|
|||||
Note Purchase Agreement dated as of April 5, 2013
|
Exhibit 10.1 to Current Report on Form 8-K dated April 5, 2013 (Commission File No. 1-7626)
|
|||||
First Amendment dated as of November 6, 2015 to Note Purchase Agreement dated as of April 5, 2013
|
Exhibit 10.3 to Current Report on Form 8-K dated November 6, 2015 (Commission File No. 1-7626)
|
|||||
Second Amendment dated as of May 3, 2017 to Note Purchase Agreement dated as of April 5, 2013
|
Exhibit 10.4 to Current Report on Form 8-K dated May 5, 2017 (Commission File No. 1-7626)
|
|||||
Third Amendment dated as of June 22, 2018 to Note Purchase Agreement dated as of April 5, 2013
|
Exhibit 4.2(d) to Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 (Commission File No. 1-7626)
|
|
Fourth Amendment dated as of May 6, 2021 to Note Purchase Agreement dated as of April 5, 2013
|
Exhibit 4.1 to Current Report on Form 8-K filed May 11, 2021 (Commission File No. 1-7626)
|
||||
Note Purchase Agreement dated as of November 6, 2015
|
Exhibit 10.2 to Current Report on Form 8-K dated November 6, 2015 (Commission File No. 1-7626)
|
|||||
First Amendment dated as of May 3, 2017 to Note Purchase Agreement dated as of November 6, 2015
|
Exhibit 10.3 to Current Report on Form 8-K dated May 5, 2017 (Commission File No. 1-7626)
|
|||||
Second Amendment dated as of June 22, 2018 to Note Purchase Agreement dated as of November 6, 2015
|
Exhibit 4.3(c) to Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 (Commission File No. 1-7626)
|
|||||
Third Amendment dated as of May 6, 2021 to Note Purchase Agreement dated as of November 6, 2015
|
Exhibit 4.2 to Current Report on Form 8-K filed May 11, 2021 (Commission File No. 1-7626)
|
|||||
Note Purchase Agreement dated as of May 3, 2017
|
Exhibit 10.2 to Current Report on Form 8-K dated May 5, 2017 (Commission File No. 1-7626)
|
|||||
First Amendment dated as of June 22, 2018 to Note Purchase Agreement dated as of May 3, 2017
|
Exhibit 4.4(b) to Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 (Commission File No. 1-7626)
|
|||||
Second Amendment dated as of May 6, 2021 to Note Purchase Agreement dated as of May 3, 2017
|
Exhibit 4.3 to Current Report on Form 8-K filed May 11, 2021 (Commission File No. 1-7626)
|
|||||
Note Purchase Agreement dated as of November 1, 2018
|
Exhibit 10.1 to Current Report on Form 8-K dated November 1, 2018 (Commission File No. 1-7626)
|
|||||
First Amendment dated as of May 6, 2021 to Note Purchase Agreement dated as of November 1, 2018
|
Exhibit 4.4 to Current Report on Form 8-K filed May 11, 2021 (Commission File No. 1-7626)
|
|||||
Description of Sensient Technologies Corporation’s securities registered pursuant to Section 12 of the Securities Exchange Act
|
Exhibit 4.5 to Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (Commission File No. 1-7626)
|
|||||
10
|
Material Contracts
|
|||||
10.1
|
Management Contracts or Compensatory Plans
|
|||||
Executive Employment Contract dated as of February 13, 2020, between Sensient Technologies Corporation and Paul Manning
|
Exhibit 10.1 to Current Report on Form 8-K dated February 13, 2020 (Commission File No. 1-7626)
|
|||||
Form of Change of Control Employment and Severance Agreement
|
Exhibit 10.1(b)(3) to Annual Report on Form 10-K for the fiscal year ended December 31, 2011 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Corporation 2012 Non-Employee Directors Stock Plan
|
Exhibit 10.1(c)(2) to Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (Commission File No. 1-7626)
|
Sensient Technologies Corporation Directors’ Deferred Compensation Plan
|
Exhibit 10.1 to Current Report on Form 8-K dated May 28, 2014 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Corporation Non-Employee Directors’ Retirement Plan
|
Exhibit 10.2 to Current Report on Form 8-K dated July 25, 2013 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Corporation Frozen Management Income Deferral Plan
|
Exhibit 10.5(a) to Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Corporation Management Income Deferral Plan
|
Exhibit 10.5(b) to Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Corporation Frozen Executive Income Deferral Plan
|
Exhibit 10.4(a) to Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Corporation Executive Income Deferral Plan
|
Exhibit 10.4(b) to Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 (Commission File No. 1-7626)
|
|||||
Amended and Restated Sensient Technologies Corporation Rabbi Trust “A” Agreement dated November 30, 2009, between Sensient Technologies Corporation and Wells Fargo Bank,
N.A.
|
Exhibit 10.1(l) to Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (Commission File No. 1-7626)
|
|||||
Amended and Restated Sensient Technologies Corporation Rabbi Trust “B” Agreement dated November 30, 2009, between Sensient Technologies Corporation and Wells Fargo Bank,
N.A.
|
Exhibit 10.1(m) to Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (Commission File No. 1-7626)
|
|||||
Amendment No. 1 to the Amended and Restated Sensient Technologies Corporation Rabbi Trust “B” Agreement
|
Exhibit 10.1(m)(2) to Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 (Commission File No. 1-7626)
|
|||||
Amended and Restated Sensient Technologies Corporation Rabbi Trust “C” Agreement dated November 30, 2009, between Sensient Technologies Corporation and Wells Fargo Bank,
N.A.
|
Exhibit 10.1(n) to Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Corporation Form of Supplemental Executive Retirement Plan A Agreement
|
Exhibit 10.1(s) to Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (Commission File No. 1-7626)
|
Form of Amendment No. 1 to the Sensient Technologies Corporation Amended and Restated Supplemental Executive Retirement Plan A
|
Exhibit 10.1(s)(2) to Annual Report on Form 10-K for the fiscal year ended December 31, 2010 (Commission file No. 1-7626)
|
|||||
Form of Amendment No. 2 to the Sensient Technologies Corporation Amended and Restated Supplemental Executive Retirement Plan A
|
Exhibit 10.1 to Current Report on Form 8-K dated April 22, 2010 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Corporation Form of Supplemental Executive Retirement Plan B Agreement
|
Exhibit 10.1(t) to Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (Commission File No. 1-7626)
|
|||||
Form of Amendment No. 1 to the Sensient Technologies Corporation Amended and Restated Supplemental Executive Retirement Plan B
|
Exhibit 10.1(t)(2) to Annual Report on Form 10-K for the fiscal year ended December 31, 2010 (Commission File No. 1-7626)
|
|||||
Form of Amendment No. 2 to the Sensient Technologies Corporation Amended and Restated Supplemental Executive Retirement Plan B
|
Exhibit 10.2 to Current Report on Form 8-K dated April 22, 2010 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Frozen Supplemental Benefit Plan
|
Exhibit 10.6(a) to Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Supplemental Benefit Plan
|
Exhibit 10.6(b) to Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Corporation Policy on Recovery of Incentive Compensation from Executives
|
Exhibit 10.1 to Current Report on Form 8-K dated December 8, 2011 (Commission File No. 1-7626)
|
|||||
Form of Performance Stock Unit Agreement
|
Exhibit 10.3 to Current Report on Form 8-K dated May 28, 2014 (Commission File No. 1-7626)
|
|||||
Form of Restricted Stock Agreement
|
Exhibit 10.1 to Current Report on Form 8-K dated December 10, 2020 (Commission File No. 1-7626)
|
|||||
Form of Restricted Stock Unit Agreement
|
Exhibit 10.2 to Current Report on Form 8-K dated December 10, 2020 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Corporation 2017 Stock Plan
|
Appendix B to Definitive Proxy Statement filed on Schedule 14A on March 10, 2017 (Commission File No. 1-7626)
|
|||||
Sensient Technologies Management Incentive Compensation Plan, as amended on February 10, 2022
|
X
|
Third Amended and Restated Credit Agreement dated as of May 5, 2021
|
Exhibit 10.1 to Current Report on Form 8-K filed May 11, 2021 (Commission File No. 1-7626)
|
|
||||
Receivables Sale Agreement dated as of October 3, 2016
|
Exhibit 10.1 to Current Report on Form 8-K dated October 3, 2016 (Commission File No. 1-7626)
|
|||||
Amendment No. 1 to the Receivables Sale Agreement, dated as of October 2, 2017
|
Exhibit 10.1 to Current Report on Form 8-K dated October 2, 2017 (Commission File No. 1-7626)
|
|||||
Receivables Purchase Agreement dated as of October 3, 2016
|
Exhibit 10.2 to Current Report on Form 8-K dated October 3, 2016 (Commission File No. 1-7626)
|
|||||
Amendment No. 1 to the Receivables Purchase Agreement and Performance Undertaking, dated as of October 2, 2017
|
Exhibit 10.2 to Current Report on Form 8-K dated October 2, 2017 (Commission File No. 1-7626)
|
|||||
Amendment No. 2 to Receivables Purchase Agreement, dated as of June 26, 2018
|
Exhibit 10.5(c) to Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 (Commission File No. 1-7626)
|
|||||
Amendment No. 3 to Receivables Purchase Agreement, dated as of October 1, 2018
|
Exhibit 10.1 to Current Report on Form 8-K dated October 1, 2018 (Commission File No. 1-7626)
|
|||||
Amendment No. 4 to Receivables Purchase Agreement, dated as of October 1, 2019
|
Exhibit 10.1 to Current Report on Form 8-K dated October 7, 2019 (Commission File No. 1-7626)
|
|||||
Amendment No. 5 to Receivables Purchase Agreement, dated as of October 1, 2020
|
Exhibit 10.1 to Current Report on Form 8-K dated October 1, 2020 (Commission File No. 1-7626)
|
|||||
Amendment No. 6 to Receivables Purchase Agreement, dated as of November 12, 2020
|
Exhibit 10.4(g) to Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (Commission File No. 1-7626)
|
|||||
Amendment No. 7 to Receivables Purchase Agreement, dated as of October 1, 2021
|
Exhibit 10.1 to Current Report on Form 8-K filed October 5, 2021 (Commission File No. 1-7626)
|
|||||
Performance Undertaking made as of October 3, 2016
|
Exhibit 10.3 to Current Report on Form 8-K dated October 3, 2016 (Commission File No. 1-7626)
|
|||||
Subsidiaries of the Registrant
|
X
|
|||||
Consent of Ernst & Young LLP
|
X
|
Certifications of Sensient’s President and Chief Executive Officer and Senior Vice President and Chief Financial Officer, pursuant to Rule 13a-14(a) of the Exchange Act
|
X
|
|||||
Certifications of Sensient’s President and Chief Executive Officer and Senior Vice President and Chief Financial Officer, pursuant to 18 United States Code § 1350
|
X
|
|||||
101.INS*
|
Inline Instance 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)
|
Valuation Accounts Deducted in the Balance Sheet From the Assets to Which They Apply
|
Balance
at Beginning
of Period
|
Additions
Charged to
Costs and
Expenses
|
Additions
Recorded
During
Acquisitions
|
Deductions
(A)
|
Balance at
End of
Period
|
|||||||||||||||
2019
Allowance for losses:
Trade accounts receivable
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
|
||||||||||||||||||||
2020
Allowance for losses:
Trade accounts receivable
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
|
||||||||||||||||||||
2021
Allowance for losses:
Trade accounts receivable
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
(A)
|
SENSIENT TECHNOLOGIES CORPORATION
|
|
/s/ John J. Manning
|
|
John J. Manning
|
|
Senior Vice President, General Counsel and Secretary
|
|
Dated: February 18, 2022
|
/s/ Paul Manning
|
/s/ Sharad P. Jain
|
Paul Manning
|
Sharad P. Jain
|
Chairman of the Board, President and
|
Director
|
Chief Executive Officer
|
|
/s/ Stephen J. Rolfs
|
/s/ Donald W. Landry
|
Stephen J. Rolfs
|
Donald W. Landry
|
Senior Vice President and
|
Director
|
Chief Financial Officer
|
|
/s/ Tobin Tornehl
|
/s/ Deborah McKeithan-Gebhardt
|
Tobin Tornehl
|
Deborah McKeithan-Gebhardt
|
Vice President, Controller and
|
Director
|
Chief Accounting Officer
|
|
/s/ Joseph Carleone
|
/s/ Scott Morrison
|
Joseph Carleone
|
Scott Morrison
|
Director
|
Director
|
/s/ Edward H. Cichurski
|
/s/ Elaine R. Wedral
|
Edward H. Cichurski
|
Elaine R. Wedral
|
Director
|
Director
|
/s/ Mario Ferruzzi
|
/s/ Essie Whitelaw
|
Mario Ferruzzi
|
Essie Whitelaw
|
Director
|
Director
|
/s/ Carol R. Jackson
|
|
Carol R. Jackson
|
|
Director
|
NAME
|
INCORPORATION
|
DOMESTIC
|
|
POINTING COLOR INC.
|
DELAWARE
|
SENSIENT COLORS LLC
|
DELAWARE
|
SENSIENT FLAVORS INTERNATIONAL, INC.
|
INDIANA
|
SENSIENT FLAVORS LLC
|
DELAWARE
|
SENSIENT HOLDING COMPANY LLC
|
DELAWARE
|
SENSIENT NATURAL INGREDIENTS LLC
|
DELAWARE
|
SENSIENT RECEIVABLES LLC
|
DELAWARE
|
SENSIENT TECHNOLOGIES HOLDING COMPANY LLC
|
DELAWARE
|
SENSIENT WISCONSIN LLC
|
WISCONSIN
|
NAME
|
INCORPORATION
|
FOREIGN
|
|
POINTING HOLDINGS LIMITED
|
UNITED KINGDOM
|
POINTING INTERNATIONAL LIMITED
|
UNITED KINGDOM
|
POINTING LIMITED
|
UNITED KINGDOM
|
PT SENSIENT TECHNOLOGIES INDONESIA
|
INDONESIA
|
SENSIENT COLORS CANADA LTD.
|
CANADA
|
SENSIENT TECHNOLOGIES EUROPE GMBH
|
GERMANY
|
SENSIENT COLORS S.A.
|
ARGENTINA
|
SENSIENT COLORS S.A. DE C.V.
|
MEXICO
|
SENSIENT COLORS UK LTD
|
UNITED KINGDOM
|
SENSIENT COSMETIC TECHNOLOGIES
|
FRANCE
|
SENSIENT COSMETIC TECHNOLOGIES E CORANTES, IMPORTAÇÃO E EXPORTAÇÃO DO BRASIL LTDA
ENGLISH: SENSIENT COSMETIC TECHNOLOGIES BRAZIL
|
BRAZIL
|
SENSIENT COSTA RICA S.R.L.
|
COSTA RICA
|
SENSIENT FINANCE IRELAND DAC
|
IRELAND
|
SENSIENT FLAVORS BELGIUM NV
|
BELGIUM
|
SENSIENT FLAVORS CANADA INC.
|
CANADA
|
SENSIENT FLAVORS CENTRAL AMERICA S.R.L.
|
COSTA RICA
|
SENSIENT FLAVORS & FRAGRANCES SAS
|
FRANCE
|
SENSIENT FLAVORS & FRAGRANCES GMBH & CO. KG
|
GERMANY
|
SENSIENT FLAVORS GMBH
|
GERMANY
|
SENSIENT FLAVORS ITALY S.R.L.
|
ITALY
|
SENSIENT FLAVORS LIMITED
|
UNITED KINGDOM
|
SENSIENT FLAVORS MEXICO, S.A. DE C.V.
|
MEXICO
|
SENSIENT FLAVORS POLAND SP. Z.O.O.
|
POLAND
|
SENSIENT FLAVORS SCANDINAVIA AB
|
SWEDEN
|
SENSIENT FLAVORS & FRAGRANCES INDUSTRY & TRADE LIMITED COMPANY (TURKEY)
|
TURKEY
|
SENSIENT FOOD COLORS CZECH REPUBLIC CZ S.R.O.
|
CZECH REPUBLIC
|
SENSIENT FOOD COLORS HUNGARY KFT
|
HUNGARY
|
SENSIENT FOOD COLORS ITALY S.R.L.
|
ITALY
|
SENSIENT TECHNOLOGIES POLAND SP. Z.O.O.
|
POLAND
|
SENSIENT FOOD COLORS THE NETHERLANDS B.V.
|
NETHERLANDS
|
SENSIENT FRAGRANCES MEXICO, S.A. DE C.V.
|
MEXICO
|
SENSIENT HOLDING I B.V.
|
NETHERLANDS
|
SENSIENT HOLDING II B.V.
|
NETHERLANDS
|
SENSIENT HOLDINGS MALTA LIMITED
|
MALTA
|
SENSIENT HOLDINGS UK
|
UNITED KINGDOM
|
SENSIENT INDIA PRIVATE LIMITED
|
INDIA
|
SENSIENT NATURAL COLORS PERU S.A.C.
|
PERU
|
SENSIENT NATURAL EXTRACTION INC.
|
CANADA
|
SENSIENT NATURAL INGREDIENTS (QINGDAO) CO., LTD.
|
CHINA
|
SENSIENT NATURAL INGREDIENTS (TAI’AN) CO., LTD.
|
CHINA
|
SENSIENT SAVORY FLAVORS FRANCE
|
FRANCE
|
SENSIENT TECHNOLOGIES ASIA PACIFIC PTE LTD
|
SINGAPORE
|
SENSIENT TECHNOLOGIES AUSTRALIA PTY LTD
|
AUSTRALIA
|
SENSIENT TECHNOLOGIES BRASIL INDUSTRIA, COMERCIO, IMPORTACAO E EXPORTACAO DE INGREDIENTES LTDA.
ENGLISH: SENSIENT TECHNOLOGIES BRAZIL LTDA.
|
BRAZIL
|
SENSIENT TECHNOLOGIES COLOMBIA LTDA.
|
COLOMBIA
|
SENSIENT TECHNOLOGIES CORPORATION (CHINA) LTD
|
CHINA
|
SENSIENT TECHNOLOGIES CORPORATION (JAPAN)
|
JAPAN
|
SENSIENT TECHNOLOGIES C.V.
|
NETHERLANDS
|
SENSIENT TECHNOLOGIES ESSENTIAL OILS, S.L.U.
|
SPAIN
|
SENSIENT TECHNOLOGIES HOLDING DEUTSCHLAND GMBH
|
GERMANY
|
SENSIENT TECHNOLOGIES HONG KONG LTD
|
CHINA
|
SENSIENT TECHNOLOGIES LIMITED
|
UNITED KINGDOM
|
SENSIENT TECHNOLOGIES LUXEMBOURG S.A.R.L.
|
LUXEMBOURG
|
SENSIENT TECHNOLOGIES MENA FZE
|
UNITED ARAB
EMIRATES
|
SENSIENT TECHNOLOGIES MOROCCO
|
MOROCCO
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SENSIENT TECHNOLOGIES (PHILIPPINES), INC.
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PHILIPPINES
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SENSIENT TECHNOLOGIES REAL ESTATE GMBH
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GERMANY
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SENSIENT TECHNOLOGIES SOUTH AFRICA (PTY) LTD.
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SOUTH AFRICA
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SENSIENT TECHNOLOGIES (THAILAND), LTD.
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THAILAND
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1. |
I have reviewed this annual report on Form 10-K of Sensient Technologies Corporation;
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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;
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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;
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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:
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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;
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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;
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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
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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
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a) |
all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to
record, process, summarize and report financial information; and
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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.
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/s/ Paul Manning
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Paul Manning,
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Chairman, President and
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Chief Executive Officer
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1. |
I have reviewed this annual report on Form 10-K of Sensient Technologies Corporation;
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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;
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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;
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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:
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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;
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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;
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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
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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
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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.
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/s/ Stephen J. Rolfs
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Stephen J. Rolfs,
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Senior Vice President and
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Chief Financial Officer
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/s/ Paul Manning
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Name:
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Paul Manning
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Title:
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Chairman, President and
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Chief Executive Officer
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Date:
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February 18, 2022
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/s/ Stephen J. Rolfs
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Name:
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Stephen J. Rolfs
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Title:
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Senior Vice President and
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Chief Financial Officer
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Date:
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February 18, 2022
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CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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CONSOLIDATED STATEMENTS OF EARNINGS [Abstract] | |||
Revenue | $ 1,380,264 | $ 1,332,001 | $ 1,322,934 |
Cost of products sold | 925,603 | 908,254 | 908,061 |
Selling and administrative expenses | 284,633 | 271,091 | 293,763 |
Operating income | 170,028 | 152,656 | 121,110 |
Interest expense | 12,544 | 14,811 | 20,107 |
Earnings before income taxes | 157,484 | 137,845 | 101,003 |
Income taxes | 38,739 | 28,373 | 18,956 |
Net earnings | $ 118,745 | $ 109,472 | $ 82,047 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 2.82 | $ 2.59 | $ 1.94 |
Diluted (in dollars per share) | $ 2.81 | $ 2.59 | $ 1.94 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 42,077 | 42,301 | 42,263 |
Diluted (in shares) | 42,258 | 42,346 | 42,294 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net earnings | $ 118,745 | $ 109,472 | $ 82,047 |
Cash flow hedges adjustment, net of tax expense (benefit) of ($430), $524 and ($193), respectively | (543) | 948 | (346) |
Pension adjustment, net of tax expense (benefit) of $577, ($475) and ($409), respectively | 1,612 | (1,293) | (1,221) |
Foreign currency translation on net investment hedges | 17,937 | (24,044) | 3,091 |
Tax effect of current year activity on net investment hedges | (4,455) | 5,973 | (768) |
Foreign currency translation on long-term intercompany loans | 13,798 | (7,731) | (752) |
Tax effect of current year activity on intercompany long-term loans | (3,990) | 3,757 | (768) |
Reclassification of cumulative translation to net earnings | 10,203 | (8,625) | 0 |
Other foreign currency translation | (50,099) | 34,932 | 3,311 |
Total comprehensive income | $ 103,208 | $ 113,389 | $ 84,594 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Cash flow hedges adjustment, tax expense (benefit) | $ (430) | $ 524 | $ (193) |
Pension adjustment, tax expense (benefit) | $ 577 | $ (475) | $ (409) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Shareholders' Equity: | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 53,954,874 | 53,954,874 |
Treasury stock, shares (in shares) | 12,107,549 | 11,647,627 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 1.58 | $ 1.56 | $ 1.47 |
Summary of Significant Accounting Policies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies |
1. Summary of Significant Accounting Policies
Nature of Operations
Sensient Technologies Corporation, together with its subsidiaries (the Company or Sensient), is a leading global manufacturer and marketer of colors,
flavors, and other specialty ingredients. The Company uses advanced technologies at facilities around the world to develop specialty food and beverage systems; cosmetic, essential oils, pharmaceutical, and nutraceutical systems; specialty colors;
and other specialty and fine chemicals. The Company’s three reportable segments are the Flavors & Extracts Group and the Color
Group, which are managed on a product basis, and the Asia Pacific Group, which is managed on a geographic basis. The Company’s corporate expenses, restructuring including operational improvement plans, divestiture, share-based compensation, the
one-time COVID-19 employee payment in 2020, and other costs are included in the “Corporate & Other” category. In the second quarter of 2020, the Company divested its inks product line; in the third quarter of 2020, the Company divested its
yogurt fruit preparations product line; and in the second quarter of 2021, the Company divested its fragrances (excluding essential oils) product line.
Principles of Consolidation and Basis of Presentation
The consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United
States of America (GAAP). All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of the consolidated financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets, liabilities,
revenue, and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.
Revenue Recognition
The Company recognizes revenue at the transfer of control of its products to the Company’s customers in an amount reflecting the consideration to which the Company expects
to be entitled. In order to achieve this core principle, the Company applies the following five-step approach:
The Company considers customer purchase orders, which in some cases are governed by master sales agreements, coupled with the Company’s purchase
order acknowledgements, to be the contracts with the customer. For each contract, the Company considers the identified performance obligation to be the promise to transfer products. In determining the transaction price, the Company evaluates
whether the price is subject to refund or adjustment and then determines the net consideration to which the Company expects to be entitled. In addition, the Company assesses the customer’s ability to pay as part of its evaluation of the contract.
As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under Accounting Standards Codification (ASC) 606-10-32-18, and determined that its contracts do not have a significant financing component.
The Company allocates the transaction price to each distinct product based on the relative standalone selling price. Revenue is recognized when control of the product is transferred to the customer, the customer is obligated to pay the Company, and
the Company has no remaining obligations, which is typically at shipment. In certain locations, primarily outside the United States, product delivery terms may vary. Thus, in such locations, the point at which control of the product transfers to
the customer and revenue recognition occurs will vary accordingly.
Customer returns of non-conforming products are estimated at the time revenue is recognized. In certain customer relationships, volume rebates exist, which are recognized
according to the terms and conditions of the contractual relationship. Customer returns, rebates, and discounts are not material to the Company’s consolidated financial statements. The Company has elected to recognize the revenue and cost for freight
and shipping when control over the products has transferred to the customer. The Company has elected to immediately expense contract costs related to obtaining a contract as the amortization period of the asset the Company otherwise would have
recognized would have been less than a year.
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 (See Note
12, Segment and Geographic Information, for further information).
Cost of Products Sold
Cost of products sold includes materials, labor, and overhead expenses incurred in the manufacture of our products. Cost of products sold also includes charges for obsolete
and slow-moving inventories as well as costs for quality control, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, other costs of our internal distribution network, and costs incurred for shipping and
handling. The Company records fees billed to customers for shipping and handling as revenue.
Selling and Administrative Expenses
Selling and administrative expenses primarily include the salaries and related costs for executive, finance, accounting, human resources, information technology, research
and development, and legal personnel as well as salaries and related costs of salespersons and commissions paid to external sales agents.
Cash Equivalents
The Company considers all highly liquid investments with original maturities of three months or less at the date of acquisition as cash equivalents.
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 general matters such as current assessments of past due balances and economic conditions. Specific accounts are written off against the allowance for doubtful accounts when it is deemed that the receivable is no longer collectible.
Inventories
Inventories are stated at the lower of cost or net realizable value. Net realizable value is determined on the basis of estimated realizable values. Cost is determined
using the first-in, first-out (FIFO) method with the exception of certain locations of the Flavors & Extracts Group where cost is determined using a weighted average method. Inventories include finished and in-process products totaling $280.2 million and $268.1 million at
December 31, 2021 and 2020, respectively, and raw materials and supplies of $131.4 million and $113.2 million at December 31, 2021 and 2020, respectively.
The Company recorded a non-cash charge of $0.1 million, $1.8 million, and $9.8 million in Cost of Products Sold related to the divested product lines in 2021, 2020, and 2019, respectively. The non-cash charge reduced the
carrying value of certain inventories, as they were determined to be excess. See Note 14, Divestitures, for additional information.
Property, Plant, and Equipment
Property, plant, and equipment are recorded at cost reduced by accumulated depreciation. Depreciation is provided over the estimated useful life of the related asset using
the straight-line method for financial reporting. The estimated useful lives for buildings and leasehold improvements range from 5 to 40 years. Machinery and equipment have estimated useful lives ranging from 3 to 20 years. Interest costs on significant projects constructed or developed for the Company’s own use
are capitalized as part of the asset.
Goodwill and Other Intangible Assets
The carrying value of goodwill is evaluated for impairment on an annual basis or more frequently when an indicator of impairment occurs. The impairment assessment includes
comparing the carrying amount of net assets, including goodwill, of each reporting unit to its respective fair value as of the date of the assessment. Fair value was estimated based upon an evaluation of the reporting unit’s estimated future
discounted cash flows as well as the public trading and private transaction valuation multiples for comparable companies. The Company performed such a quantitative analysis in 2019, which indicated a substantial premium compared to the carrying value
of net assets, including goodwill, at the reporting unit level. In 2021 and 2020, the Company completed a qualitative assessment noting no indicators of impairment. The Company
did not record impairment charges for any of its reporting units in 2021, 2020, or 2019.
In the fourth quarter of 2019, as a result of the Company meeting the assets held
for sale criteria for its divestitures of its inks and fragrances (excluding its essential oils product line) product lines, the Company allocated $8.4
million of goodwill to those disposal groups. The $8.4 million of goodwill related to the disposal groups was determined to be fully
impaired. In 2020, the fair value of the disposal groups decreased, which resulted in the previously allocated goodwill of $2.2 million to be reallocated to its respective financial reporting units. In 2021, the fair value of the disposal groups increased, which resulted
in an additional $0.8 million of goodwill allocated to the disposal groups. See Note 14, Divestitures, for additional details.
The cost of intangible assets with determinable useful lives is amortized on a straight-line basis to reflect the pattern of economic benefits consumed, ranging from 5 to 20 years. These assets include
technological know-how, customer relationships, patents, trademarks, and non-compete agreements, among others.
Impairment of Long-lived Assets
The Company reviews long-lived assets for impairment whenever events or changes in business circumstances
indicate that the carrying amount of the assets may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if potential impairment exists. If impairment is determined to exist, any related impairment loss is
calculated based on the difference between fair value and carrying value. Impairment losses were recorded as a result of the Company’s divestiture of its inks product line and its divestiture of its fragrances product line (excluding its
essential oils product line). See Note 14, Divestitures, for additional information.
Leases
The Company enters into lease agreements for certain office space, warehouses, land, and equipment in the ordinary course of business. The Company
determines if an arrangement is a lease at inception and evaluates the lease classification (i.e., operating lease or financing lease) at that time. Lease arrangements with an initial term of 12 months or less are considered short-term leases and
are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the term of the lease.
Operating leases are included in Other Assets, Other Accrued Expenses, and Other Liabilities on the Company’s
Consolidated Balance Sheet. Operating lease right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease
right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term.
The Company uses its incremental borrowing rate on the commencement date for determining the present value of lease payments. The Company considers
the likelihood of exercising options to extend or terminate the lease when determining the lease term.
The Company has lease agreements with lease and non-lease components. The Company has elected the practical expedient of accounting for the lease and
non-lease components of each lease as a single lease component.
Derivative Financial Instruments
The Company selectively uses derivative financial instruments to reduce market risk associated with changes in foreign currency and interest rate exposures, which exist as
part of ongoing business operations. All derivative transactions are authorized and executed pursuant to the Company’s risk management policies and procedures, which strictly prohibit the use of financial instruments for speculative trading purposes.
The primary objectives of the foreign exchange risk management activities are to understand and mitigate the impact of potential foreign exchange fluctuations on the
Company’s financial results and its economic well-being. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. These risk management
transactions may involve the use of foreign currency derivatives to protect against exposure resulting from recorded accounts receivable and payable. The Company may utilize forward exchange contracts, generally with maturities of less than 18 months, which qualify as cash flow hedges. Generally, these foreign exchange contracts are intended to offset the effect of exchange rate fluctuations
on non-functional currency denominated sales and purchases. For derivative instruments that are designated as cash flow hedges, gains and losses are deferred in Accumulated Other Comprehensive Income (OCI)
until the underlying transaction is recognized in earnings.
For hedges designated as cash flow hedges, the Company elects critical terms that match at the onset of the hedge transaction. Hedge accounting is permitted only if the
hedge meets the critical terms match requirements. The Company reviews the critical terms at each effectiveness testing date to ensure the respective terms match; therefore, achieving a highly effective hedge.
Interest Rate Hedging
The Company is exposed to interest rate risk through its corporate borrowing activities. The objective of the Company’s interest rate risk management activities is to
manage the levels of the Company’s fixed and floating interest rate exposure to be consistent with the Company’s preferred mix. The interest rate risk management program may include entering into interest rate swaps, which qualify as fair value
hedges, when there is a desire to modify the Company’s exposure to interest rates. Gains or losses on fair value hedges are recognized in earnings, net of gains and losses on the fair value of the hedged instruments.
Net Investments Hedging
The Company is exposed to risk related to its net investments in foreign subsidiaries. As part of its risk management activities, the Company may enter into
foreign-denominated debt to be used as a non-derivative instrument to hedge the Company’s net investment in foreign subsidiaries. The change in the fair value of debt designated as a net investment hedge is recorded in foreign currency translation in
OCI.
Commodity Purchases
The Company purchases certain commodities in the normal course of business that result in physical delivery of the goods and, hence, are excluded from ASC 815, Derivatives and Hedging.
Translation of Foreign Currencies
For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of foreign operations are translated into U.S. dollars at
current exchange rates. Revenue and expense accounts are translated into U.S. dollars at average exchange rates prevailing during the year. Adjustments resulting from the translation of foreign accounts into U.S. dollars are recorded in foreign
currency translation in OCI. Transaction gains and losses that occur as a result of transactions denominated in non-functional currencies are included in earnings and were not significant during the years ended December 31, 2021, 2020, and 2019.
Share-Based Compensation
Share-based compensation expense is recognized over the vesting period of each award based on the fair value of the instrument at the time of grant as summarized in Note 8, Share-Based Compensation.
Income Taxes
The Company recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax liability or
asset for the estimated future tax effects attributable to temporary differences and carryforwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Deferred tax assets are reduced, if
necessary, by the amount of any tax benefits for which the utilization of the asset is not considered likely.
Earnings Per Share
The difference between basic and diluted earnings per share (EPS) is the dilutive effect of non-vested stock. Diluted EPS assumes that non-vested stock has vested.
The following table sets forth the computation of basic and diluted EPS for the years ended December 31:
The Company has a share-based compensation plan under which employees may be granted share-based awards in which non-forfeitable dividends are paid on non-vested shares for
certain awards. As such, these shares are considered participating securities under the two-class method of calculating EPS as described in ASC 260, Earnings per
Share. The two-class method of calculating EPS did not have a material impact on the Company’s EPS calculations as of December 31, 2021, 2020, and 2019.
All EPS amounts are presented on a diluted basis unless otherwise noted.
Accumulated Other Comprehensive Income (Loss)
Accumulated OCI is composed primarily of foreign currency translation, pension liability, and unrealized gains or losses on cash flow hedges. See Note 10, Accumulated Other Comprehensive Income, for additional information.
Research and Development
Research and development costs are recorded in Selling and Administrative Expenses in the year they are incurred. Research and development costs were $34.3 million, $38.5 million, and $40.1 million, during the years ended December 31, 2021, 2020, and 2019, respectively.
Advertising
Advertising costs are recorded in Selling and Administrative Expenses as they are incurred. Advertising costs were $2.4 million, $2.0 million, and $2.2 million, during the years ended December 31, 2021, 2020,
and 2019, respectively.
Environmental Liabilities
The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and reasonably estimable. Such accruals are
adjusted as further information becomes available or as circumstances change. Estimated future expenditures are discounted to their present value when the timing and amount of future cash flows are fixed and readily determinable. Recoveries of
remediation costs from other parties, if any, are recognized as assets when their receipt is realizable.
Subsequent Events
The Company performed an evaluation of subsequent events through the date these financial statements were issued. See Note 17, Subsequent Event, for additional information.
Recently Adopted Accounting Pronouncements
In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which clarifies and simplifies aspects of the accounting for income taxes. ASU 2019-12 is effective for public business entities
beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2019-12 on January 1, 2021, using retrospective, modified retrospective, or prospective basis for certain
amendments. There was no impact to the consolidated financial statements.
Recently Issued Accounting Pronouncements
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 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.
Other recently issued accounting pronouncements are not expected to have a material impact on the Company’s consolidated financial statements.
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Acquisition |
12 Months Ended |
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Dec. 31, 2021 | |
Acquisition [Abstract] | |
Acquisition |
2. Acquisition
On July 15, 2021, the Company acquired substantially all of the assets of Flavor
Solutions, Inc., a flavors business located in New Jersey. The purchase price for this acquisition was $14.9 million in cash with
approximately $1.0 million of such amount being held back by the Company for 12 months in order to satisfy post-closing indemnification claims that may arise. The assets acquired and liabilities assumed were recorded at their estimated fair value as of the acquisition
date. The Company acquired net assets of $0.4 million and identified intangible assets, principally customer relationships, of $5.0 million. The remaining $9.5 million was
allocated to goodwill. This business is now part of the Flavors & Extracts segment.
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Trade Accounts Receivable |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade Accounts Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade Accounts Receivable |
3. 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 for the years ended December 31, 2021 and 2020:
See Note 14, Divestitures, for further information regarding the divestitures
included in the above table.
|
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets |
4. Goodwill and Intangible Assets
At December 31, 2021 and 2020, goodwill is the only intangible asset that is not subject to amortization. The following table summarizes intangible assets with determinable
useful lives by major category as of December 31, 2021 and 2020:
In 2020, $1.7 million of intangible assets ($2.1 million of cost and $0.4 million
of accumulated amortization) was recorded in Assets Held for Sale on the Consolidated
Balance Sheet related to the fragrances product line (excluding its essential oils product line). See Note 14, Divestitures, for additional information.
Amortization of intangible assets was $1.8 million in 2021,
$1.5 million in 2020, and $2.9
million in 2019. Estimated amortization expense, for the five years subsequent to December 31, 2021, is $2.1 million in 2022; $1.9 million in 2023; $1.6
million in 2024 and 2025; and $1.5 million in 2026.
The changes in goodwill for the years ended December 31, 2021 and 2020, by reportable business segment, were as follows:
|
Leases |
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
5. Leases
The Company leases certain office space, warehouses, land, and equipment under operating lease arrangements. Some of the Company’s leases include options to extend the
leases for up to an additional five years. Some of the Company’s lease agreements also include rental payments that are adjusted
periodically for inflation (i.e., CPI index).
The Company recorded operating lease expense, which includes short-term lease expense and variable lease
costs, of $9.6 million, $10.6
million, and $11.2 million during the years ended December 31, 2021, 2020 and 2019, respectively.
For the years ended December 31, 2021,
2020, and 2019, the Company paid $8.2 million, $9.2 million, and $9.9 million, respectively, in cash for operating
leases, not including short-term lease expense or variable lease costs. The Company entered into operating leases that resulted in $9.8 million, $13.0 million, and $7.1 million of right-of-use
assets in exchange for operating lease obligations for the years ended December 31, 2021, 2020, and 2019, respectively.
The Company included $26.5 million and $23.3 million of right-of-use assets in , $6.2 million and
$6.0 million of operating lease liabilities in , and $20.6
million and $17.5 million of operating lease liabilities in , on the Company’s Consolidated Balance Sheets as of December 31, 2021 and 2020, respectively.
The Company’s weighted average remaining operating lease term was 6.1 years as of December 31, 2021. The Company’s weighted average discount rate for operating leases was 4.1% as of December 31, 2021.
As of December 31, 2021, maturities of operating lease liabilities for future annual periods are as follows:
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Debt |
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Debt |
6. Debt
Long-term Debt
Long-term debt consisted of the following unsecured obligations at December 31:
In May 2021, the Company executed an amended and restated credit agreement with a syndicate of banks to
extend the maturity of Sensient’s $350 million multi-currency
revolving credit facility from to and to modify certain other provisions of the credit agreement as set forth
therein. At December 31, 2020, the Company’s term loan borrowings totaled $8.4 million; term loan repayments were completed in 2021. A term loan was not issued as part of the 2021 amended credit agreement. Borrowings under the revolving credit facility bear interest at a variable rate, based upon the applicable
reference rate and including a margin percentage dependent upon the Company’s leverage ratio, as described below.
In October 2021, the Company amended its accounts receivable securitization program with Wells Fargo Bank N.A. (Wells Fargo) to reduce the program amount from $65 million to $30 million. Under the amended program, Wells Fargo has extended a secured loan (Secured Loan) of up to $30 million to the Company secured by Wells Fargo’s undivided interests in certain of the
Company’s trade accounts receivables. The interest rate on the Secured Loan is LIBOR plus 0.75%. The Company has the intent and
ability either to repay the Secured Loan with available funds from the Company’s existing long-term revolving credit facility or to extend its accounts receivable program with Wells Fargo when it matures. Accordingly, the Secured Loan has been
classified as long-term debt on the Company’s Consolidated Balance Sheet and is included with the Revolving Credit Facilities above. As of December 31, 2021, the amount was fully drawn.
The borrowings under the revolving credit facility, excluding borrowings on the accounts receivable
securitization program, had an average interest rate of 1.33% and 1.35% for the years ended December 31, 2021 and 2020, respectively.
The aggregate amounts of contractual maturities on long-term debt subsequent to December 31, 2021, are as follows:
The Company had $291.2 million available under the revolving
credit facility and $22.6 million available under other lines of credit from several banks at December 31, 2021.
Substantially all of the senior financing obligations contain restrictions concerning interest coverage, borrowings, and investments. The Company is in compliance with all
of these restrictions at December 31, 2021. The following table summarizes the Company’s most restrictive loan covenants calculated in accordance with the applicable agreements as of December 31, 2021:
The Company had stand-by and trade letters of credit outstanding of $2.8
million and $2.7 million as of December 31, 2021 and 2020, respectively.
Short-term Borrowings
The Company’s short-term borrowings consisted of the following items at December 31:
The weighted average interest rates on short-term borrowings were 1.55%
and 1.36% at December 31, 2021 and 2020, respectively.
|
Derivative Instruments and Hedging Activity |
12 Months Ended |
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Dec. 31, 2021 | |
Derivative Instruments and Hedging Activity [Abstract] | |
Derivative Instruments and Hedging Activity |
7. Derivative Instruments and Hedging Activity
The Company may use derivative instruments for the purpose of hedging currency, commodity, and interest rate exposures, which exist as part of ongoing business operations.
As a policy, the Company does not engage in speculative or leveraged transactions nor does the Company hold or issue financial instruments for trading purposes. Hedge effectiveness is determined by how closely the changes in the fair value of the
hedging instrument offset the changes in the fair value or cash flows of the hedged transaction. Hedge accounting, which generally results in the deferral of derivative gains and losses until such time as the underlying transaction is recognized in
net earnings, is permitted only if the hedging relationship is expected to be highly effective at the inception of the transaction and on an ongoing basis.
The Company manages its exposure to foreign exchange risk by the use of forward exchange contracts to reduce the effect of fluctuating foreign currencies on non-functional
currency sales, purchases, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18
months. The Company also uses certain debt denominated in foreign currencies to manage the net asset positions of the Company’s foreign subsidiaries. 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 $48.6 million and $54.1 million of forward exchange contracts, designated as cash
flow hedges, outstanding as of December 31, 2021 and 2020, respectively. For the years ended December 31, 2021 and 2020, gains of $1.3
million and losses of $1.3 million, respectively, were reclassified into net earnings in the Company’s Consolidated Statement of Earnings
that offset the earnings impact of the related non-functional asset or liability hedged in the same period. For the year ended December 31, 2019, the amounts reclassified into net earnings in the Company’s Consolidated Statement of Earnings that
offset the earnings impact of the related non-functional asset or liability hedged in the same period were not material. In addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges and the results of these
transactions are 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 December
31, 2021 and 2020, the total value of the Company’s net investment hedges was $289.5 million and $325.0 million, respectively. These net investment hedges include Euro 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 OCI. The impact of foreign exchange rates on these debt instruments decreased debt by $17.9 million and increased debt by $24.0 million for the years ended December 31, 2021 and 2020, respectively, and are recorded as foreign currency
translation in OCI. For the year ended December 31, 2021 and 2020, losses of $4.2 million and $10.8 million, respectively, were reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the underlying
transactions’ impact on earnings in the same period. In 2021, the losses were
primarily associated with the partial termination of the net investment hedge related to the Euro debt in connection with the sale of the fragrances product line, including the Spanish legal entity. In 2020, the losses were primarily
associated with the termination of the net investment hedge related to the Swiss Franc debt that terminated in connection with the sale of the inks product line, including the Swiss legal entity. See Note 14, Divestitures, for additional information. There were no amounts reclassified into net earnings for the year ended December 31, 2019.
Concentrations of Credit Risk
Counterparties to forward exchange contracts consist of large international financial institutions. While these counterparties may expose the Company to potential losses
due to the credit risk of non-performance, losses are not anticipated. Concentrations of credit risk with respect to trade accounts receivable are limited by the large number of customers, generally short payment terms, and their dispersion across
geographic areas.
|
Share-Based Compensation |
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Share-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation |
8. Share-Based Compensation
The Company has various stock plans, under which employees and directors may be granted non-vested stock which vests over a specific time period. In April 2017, the
shareholders of the Company approved the 2017 Stock Plan authorizing 1.8 million shares for issuance as non-vested stock in the form of
restricted stock, restricted stock units, performance stock units, non-qualified stock options, incentive stock options, and stock appreciation rights. As of December 31, 2021, there were 1.1 million shares available to issue as non-vested stock under the Company’s existing stock plans. The Company may also issue
up to 0.2 million shares of stock pursuant to its 1999 Amended and Restated Directors Deferred Compensation Plan.
The Company recognizes expense for shares of non-vested stock over the vesting period with a pro-rata vesting upon retirement. Beginning with awards granted in December
2013, the vesting period is three years. During the period of restriction, the holder of non-vested stock has voting rights and is
entitled to receive all dividends and other distributions paid with respect to the stock. The holders of the performance stock units are not entitled to vote or receive dividends and
other distributions paid with respect to the stock, until the units have vested and shares of stock issued.
Grants issued after December 2013 and before December 2020, to elected officers, consist of 100% performance stock unit awards. These awards are based on a three-year performance period and a three-year vesting period with a pro-rata vesting upon retirement. Three-year performance that exceeds the stated performance metrics would result in an award up to 150%
of the original grant, except for the grant issued in December 2019, which would result in an award up to 200% of the original grant for three year performance that exceeds the stated performance metrics. Starting with the December 2020 grant, grants issued to
elected officers consist of 60% performance stock unit awards
and 40% non-vested restricted stock awards. The performance
stock unit awards are based on a three-year performance period and
a three-year vesting period with a pro-rata vesting upon
retirement. Three-year performance that exceeds the stated
performance metrics would result in an award up to 200% of the
original grant. The non-vested restricted stock awards granted are based on a three-year vesting period with a pro-rata vesting upon retirement.
The Company expenses awards for non-vested stock, including time-vesting stock and performance stock units, based on the fair value of the Company’s common stock at the
date of the grant.
The following table summarizes the non-vested stock and performance stock unit activity:
The total intrinsic values of shares vested during 2021, 2020, and 2019, was $1.9
million, $1.4 million, and $3.0
million, respectively.
As of December 31, 2021, total remaining unearned compensation, net of expected forfeitures, related to non-vested stock and performance stock units was $21.7 million, which will be amortized over the weighted average remaining service period of 2.18 years.
Total pre-tax share-based compensation expense (income) recognized in the Consolidated Statements of
Earnings was $9.6 million, $5.6
million, and ($0.7) million in 2021, 2020, and 2019, respectively. The
Company also recognized tax related benefits (expense) of $1.0 million, $0.8 million, and ($0.2) million, in 2021, 2020, and 2019, respectively. During the year ended December 31, 2019, the Company determined that it was not probable that it would meet the stated performance metrics related to certain performance-based awards
resulting in an adjustment of share-based compensation of $3.6
million.
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Retirement Plans |
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Retirement Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans |
9. Retirement Plans
The Company provides benefits under defined contribution plans including a savings plan and an employee stock ownership plan (ESOP). The savings plan covers substantially
all domestic salaried and certain non-union hourly employees and provides for matching contributions up to 4% of each employee’s salary.
The ESOP covers substantially all domestic employees and provides for contributions based on a percentage of each employee’s compensation as determined by the Company’s Board of Directors. Total expense for the Company’s defined contribution plans
was $6.7 million in 2021, $6.1
million in 2020, and $6.0 million in 2019.
Although the Company intends for these defined contribution plans to be the primary retirement benefit for most employees, the Company also has several defined benefit
plans. The funded status of the defined benefit plans was as follows at December 31:
Amounts recognized in the Consolidated Balance Sheets at December 31:
Components of annual benefit cost:
The Company’s non-service cost portion of defined benefit expense is recorded in Interest
Expense on the Company’s Consolidated 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 Statements of Earnings.
Weighted average liability assumptions as of December 31:
Weighted average cost assumptions for the year ended December 31:
The aggregate amounts of benefits expected to be paid from defined benefit plans in each of the next five years subsequent to December 31, 2021, which include employees’
expected future service, are as follows: 2022, $1.7 million; 2023, $3.8 million; 2024, $3.9 million; 2025, $1.7 million; 2026, $4.8 million; and $10.6 million in total for the years 2027 through 2031.
The Company expects to contribute $0.7 million to defined
benefit plans in 2022.
Amounts in accumulated other comprehensive loss at December 31 were as follows:
The pension adjustments, net of tax, recognized in OCI, were as follows:
The investment objectives and target allocations for the Company’s pension plans related to the assets of the plans are reviewed on a regular basis. The investment
objectives for the pension assets are to maximize the return on assets while maintaining an overall level of risk appropriate for a retirement fund and ensuring the availability of funds for the payment of retirement benefits. The levels of risk
assumed by the pension plans are determined by market conditions, the rate of return expectations, and the liquidity requirements of each pension plan. The actual asset allocations of each pension plan are reviewed on a regular basis to ensure that
they are in line with the target allocations.
The following table presents the Company’s pension plan assets by asset category as of December 31, 2021 and 2020:
The Company is required to categorize pension plan assets based on the following fair value hierarchy:
|
Accumulated Other Comprehensive Income |
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Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income |
10. Accumulated Other Comprehensive Income
The following table summarizes the changes in OCI for 2021, 2020, and 2019:
|
Income Taxes |
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Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
11. Income Taxes
Earnings before income taxes were as follows:
The provision for income taxes was as follows:
The reconciliation between the U.S. Federal tax rate and the actual effective tax rate was as
follows:
Taxes on foreign earnings include the difference between the tax rates applied to foreign earnings relative
to the U.S. statutory tax rate, accruals for foreign unrecognized tax benefits, and the impact of the U.S. foreign tax credit, not including the impact from Global Intangible Low-Taxed Income (GILTI). The impact on the Company’s effective tax
rate varies from year to year based on the finalization of prior year foreign and domestic tax items, audit settlements, and mix of foreign earnings. The effective tax rates in 2021 and 2020 were both impacted by tax costs related to the divestitures and the release of valuation allowances related to the foreign tax credit carryover and net operating losses.
The Company’s valuation allowance at December 31, 2021 and 2020 was $36.9 million and $47.8 million, respectively. In 2021, the valuation allowance related to foreign tax credits and state and foreign NOLs was reduced. In the first quarter of 2019, the valuation
allowance was increased by $16.2 million related to the increase
in the foreign tax credit deferred tax asset. The valuation allowance was also increased in 2019 by $6.8 million for the deferred tax assets related to net operating losses that the Company does not believe are more likely than not to be realized. During 2020 and 2019, the Company completed
tax planning strategies and Federal tax regulations were finalized that resulted in the partial release of this valuation allowance.
The increase of the 2021 effective tax rate from GILTI compared to 2020 is primarily related to not filing the high tax election given the foreign rate mix. The decrease
of the 2020 effective tax rate from GILTI compared to 2019 is primarily the result of the US Treasury releasing final regulations in 2020 that changed the high tax election for GILTI and Sensient applying the high tax election for 2020.
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following:
At December 31, 2021, foreign tax credit carryovers were $36.8 million, all of which expires before 2035. At December 31, 2021, foreign operating loss carryovers were $87.2
million. Included in the foreign operating loss carryovers are losses of $10.1 million that expire through 2035 and $77.1 million that expire after 2036 or do not have an expiration date. At December 31, 2021, state operating loss carryovers were $126.4 million, which expire prior to 2036.
The Company is electing to recognize GILTI as a period expense in the period the tax is incurred.
Federal and state income taxes are provided on international subsidiary income distributed to or taxable in the U.S. during the year. At December 31, 2021, no additional
income or withholding taxes have been provided for the $625.9 million of undistributed earnings or any additional outside basis
differences inherent in these entities, as these amounts are considered to be invested indefinitely. If the undistributed earnings were repatriated, the Company estimates it
would have a withholding tax liability of $32.9 million. The determination of the tax liability for any outside basis differences is not
practicable.
A reconciliation of the change in the liability for unrecognized tax benefits for 2021 and 2020 is as follows:
The amount of the unrecognized tax benefits that would affect the effective tax rate, if recognized, was approximately $4 million. The Company recognizes interest and penalties related to the unrecognized tax benefits in income tax expense. As of December 31, 2021 and 2020, $0.4 million and $0.7 million,
respectively, of accrued interest and penalties were reported as an income tax liability in each period. The liability for unrecognized tax benefits relates to multiple jurisdictions and is reported in Other Liabilities on the Company’s Consolidated Balance Sheet at December 31, 2021.
The Company believes that it is reasonably possible that the total amount of liability for unrecognized tax benefits as of December 31, 2021, will decrease by
approximately $0.7 million during 2022, of which $0.4 million is estimated to impact the effective tax rate. The potential decrease relates to various tax matters for which the statute of limitations may expire or will be otherwise settled in 2022. The amount that
is ultimately recognized in the financial statements will be dependent upon various factors including potential increases or decreases in unrecognized tax benefits as a result of examinations, settlements, and other unanticipated items that may
occur during the year. With limited exceptions, the Company is no longer subject to federal, state, and local, or non-U.S. income tax examinations by tax authorities for years before 2017.
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Segment and Geographic Information |
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Segment and Geographic Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Geographic Information |
12. Segment and Geographic Information
The accounting policies of the segments are the same as those described in the summary of significant
accounting policies. The Company evaluates performance based on operating income before divestiture & other related costs, share-based compensation, restructuring and other charges including operational improvement plan costs and income,
the one-time COVID-19 employee payment in 2020, 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 Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation.
Assets by business segment and geographic region are those assets used in the Company’s operations in each segment and geographic region. Segment assets reflect the
allocation of goodwill to each segment. Corporate & Other assets consist primarily of investments, deferred tax assets, and fixed assets.
Segment Information
The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. Segment
performance is evaluated on operating income of the respective business units before divestiture & other related costs, share-based compensation, and restructuring and other charges including operational improvement plan costs and income, which
are reported in Corporate & Other.
The Company’s three reportable segments are Flavors & Extracts and Color segments, which are both managed on a product line basis, and the Asia Pacific segment, which is managed on a geographic basis. The Company’s Flavors & Extracts
segment produces flavor, extracts, and essential oils products that impart a desired taste, texture, aroma, or other characteristic to a broad range of consumers and other products. The Color segment produces natural and synthetic color systems for
foods, beverages, pharmaceuticals and nutraceuticals; colors, ingredients, and systems for cosmetics; and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color,
flavor, and essential oils products for the Asia Pacific countries. The Company’s corporate expenses, divestiture & other related costs, share-based compensation, operational improvement plan expenses and income, the one-time COVID-19 employee
payment, and other costs are included in the “Corporate & Other” category.
Divestiture & other related costs and restructuring and other costs, including the operational
improvement plan costs and income, for the years ended December 31, 2021, 2020, and 2019, are further
described in Note 14, Divestitures, and Note 15, Operational Improvement
Plan, and are included in the operating income (loss) results in Corporate & Other below. In addition, the Company’s corporate expenses and share-based compensation are
included in Corporate & Other.
Geographic Information
The Company has manufacturing facilities or sales offices in North America, Europe, Asia, Australia, South America, and Africa.
The Company’s annual revenue summarized by geographic location is as follows:
Sales in the United States, based on the final country of destination of the Company’s products, were $658.0 million, $614.3 million, and $575.2 million, in 2021, 2020, and 2019, respectively. No other country of destination exceeded 10% of consolidated
sales. Total long-lived assets in the United States amounted to $550.3 million, $518.2 million, and $471.8 million, at December 31, 2021, 2020, and 2019,
respectively.
Product Information
The Company’s revenue summarized by product portfolio is as follows:
|
Fair Value Measurements |
12 Months Ended |
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Dec. 31, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements |
13. Fair Value Measurements
Accounting Standards Codification 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 December 31, 2021 and 2020, 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 an asset of $0.1 million and $0.5 million as of December 31, 2021 and 2020, 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 December 31, 2021. 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 December 31, 2021 and 2020, was $503.5 million and $526.9 million, respectively. The fair value of the long-term
debt at December 31, 2021 and 2020, was $520.0 million and $556.1 million, respectively.
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Divestitures |
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Divestitures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestitures |
14. 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. The divesting and exit of these three product lines does not meet the criteria to be presented as a discontinued operation on the Consolidated Statements of Earnings.
On June 30, 2020, the Company completed the sale of its inks product line. In 2021 and 2020, the Company received $0.5 million and $11.6 million of net cash, respectively, as part of the sale.
On September 18, 2020, the Company completed the sale of its yogurt fruit preparations product line. In 2021 and 2020, the Company received $1.0 million of net cash in both years, as part of the sale. The sale also included an earnout based on future performance, which could result in
additional cash consideration for the Company.
On April 1, 2021, the Company completed the sale of its fragrances product line (excluding its essential oils product line) for $36.3 million of net cash. As a result of the completion of the sale, the Company recorded a non-cash net loss of $11.3 million, for the year ended December 31, 2021, primarily 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 Statements of Earnings.
The assets and liabilities related to the inks and fragrances (excluding its essential oils product line) product lines are recorded in Assets Held for Sale and Liabilities Held for Sale as of December 31, 2020, as follows:
The Company reports all costs associated with the divestitures
in Corporate & Other. The following table summarizes the divestiture & other related costs for the year ended December 31, 2021:
The Company reports all costs associated with the divestitures in Corporate & Other. The following table summarizes the divestiture & other related costs for the
year ended December 31, 2020:
The Company reports all costs associated with the divestitures in Corporate & Other. The following table summarizes the divestiture & other related costs for the
year ended December 31, 2019:
The Company recorded non-cash impairment charges in Selling and Administrative Expenses,
primarily related to property, plant, and equipment and allocated goodwill, during the years ended December 31, 2021, 2020, and 2019, when the estimated fair value less costs to sell the product line was lower than its carrying value. The estimated
fair values for the inks and fragrances (excluding its essential oils product line) product lines were determined based on indicative bids, which are classified as Level 3 inputs in the fair value measurement hierarchy. The Company recorded non-cash
charges in Cost of Products Sold during the years ended December 31, 2021, 2020, and 2019, to reduce the carrying value of certain inventories, when they were
determined to be excess. The Company recorded a non-cash loss during the year ended December 31, 2021 and a non-cash gain during the year ended December 31, 2020, related to the reclassification of foreign currency translation and related items from
Accumulated Other Comprehensive Loss to Selling and Administrative Expenses
in the Consolidated Statement of Earnings.
In March 2020, the Company was notified by the 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, the Company has recorded $0.3 million and $0.8 million related to these obligations in Selling and Administrative Expenses during the years ended December 31, 2021 and 2020, respectively.
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Operational Improvement Plan |
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Operational Improvement Plan [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operational Improvement Plan |
15. Operational Improvement Plan
During the third quarter of 2020, the Company approved an operational improvement plan (Operational Improvement Plan) to consolidate manufacturing facilities and improve
efficiencies within the Company. As part of the Operational Improvement Plan, the Company combined its New Jersey cosmetics manufacturing facility in the Personal Care product line of the Color segment into its existing Color segment facility in
Missouri. In addition, the Company is centralizing certain Flavors & Extracts segment support functions in Europe into one location. In the Asia Pacific segment, the Company incurred costs in connection with the elimination of certain selling and
administrative positions.
During the second quarter of 2021, the Company received cash
proceeds, net of associated expenses, in connection with the termination of a New Jersey office and laboratory space lease. The terminated lease was originally executed in November 2020 as part of the Operational Improvement Plan; however, the
landlord for the property requested to terminate the lease prior to the end of its term and compensated the Company as part of a negotiated resolution for that termination. The Company reports all costs and income associated with the Operational
Improvement Plan in Corporate & Other.
The following table summarizes the Operational Improvement Plan income and expenses recorded in Selling and Administrative Expenses by segment for the year ended December 31, 2021:
The following table summarizes the Operational Improvement Plan expenses by segment for the year ended December 31, 2020:
The Company recorded the Operational Improvement Plan expenses for the year ended December 31, 2020, as follows:
As of December 31, 2021 and 2020, accrued liabilities in Other Accrued Expenses totaled
$0.8 million and $2.2
million, respectively, related to this plan.
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Commitments and Contingencies |
12 Months Ended |
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Dec. 31, 2021 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies |
16. 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 requested discretionary
appellate review of this decision. The Court of Appeal of the State of California, Fifth Appellate District granted SNI’s application on February 19, 2021 and ordered briefing by the parties. Discovery is currently stayed in the matter pending the
outcome of appellate review. 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; Walters 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. Ms. Kelley has amended her original pleading, asserting the same causes of action, to which SNI has filed a responsive 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 filed its Answer and Affirmative
Defenses, and the parties entered the discovery phase of the case. On May 20, 2021, however, Ms. Bryan filed a Request for Dismissal of her action, without prejudice.
On April 26, 2021, prior to the filing of the above-referenced
Notice of Dismissal, the same law firm filed an additional notice with the State of California of the intent to pursue a claim on a representative basis pursuant to PAGA. This notice was served on behalf of Patrick Walters, an employee of SNI. The
notice states the intent to pursue relief on behalf of Mr. Walters 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. The
notice alleges that SNI failed to properly pay Mr. Walters 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 July 30, 2021, Mr. Walters filed a Complaint in Merced County
Superior Court asserting the claims set forth in his PAGA notice. SNI filed its Answer and Affirmative Defenses in response. Ms. Kelley and Mr. Walters have agreed to attempt a joint mediation with Ms. Sofia Rodriguez (see case description below),
which is scheduled for August 2022. SNI intends to vigorously defend its interests in both the Kelley and Walters matters, absent a reasonable resolution.
Sofia Rodriguez v. Sensient Natural Ingredients LLC and One
Source Staffing Solutions, Inc.
On June 10, 2021, Sofia Rodriguez filed notice with the State of California of the intent to pursue a claim on a representative basis pursuant to PAGA. The notice was
served on behalf of Ms. Rodriguez, who worked at SNI through One Source Staffing Solutions, Inc. for five months in 2020. The notice states the intent to pursue relief on behalf of Ms. Rodriguez as well as other alleged aggrieved employees,
identified as all non-exempt employees who worked for Defendants in the State of California, and who were paid on an hourly basis. The notice alleges that SNI failed to allow Ms. Rodriguez and the other alleged aggrieved employees to take
statutorily required meal and rest periods. The notice further alleges that Defendants suffered and permitted Ms. Rodriguez and other alleged aggrieved employees to work off the clock, failed to pay for all hours worked, failed to properly provide
or compensate for minimum and overtime wages, failed to issue compliant wage statements, and failed to pay wages owed upon termination of employment, in violation of the California Labor Code. Ms. Rodriguez also asserts that she was taken off the
schedule and not returned to work after complaining about the alleged wage and hour violations set forth in the PAGA notice. On August 17, 2021, Ms. Rodriguez filed a Complaint in Stanislaus County Superior Court asserting the claims set forth in
her PAGA notice. SNI filed its Answer and Affirmative Defenses in response. Ms. Rodriguez has agreed to attempt a joint mediation with Ms. Monique Kelley and Mr. Patrick Walters (see case descriptions above), which is scheduled for August 2022. SNI
intends to vigorously defend its interests in the Rodriguez matter, 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 14, Divestitures, for information about estimated environmental remediation costs associated with our former Granada, Spain, location.
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Subsequent Event |
12 Months Ended |
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Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event |
17. Subsequent Event
On January 21, 2022, the Company announced its quarterly dividend of 41 cents per share would be payable on March 1, 2022.
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Schedule II Valuation and Qualifying Accounts |
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Schedule II - Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts |
Financial Statement Schedule
Schedule II
Valuation and Qualifying Accounts (in thousands); Years Ended December 31, 2021, 2020, and 2019
All other schedules are omitted because they are inapplicable, not required by the instructions, or the information is included in the consolidated
financial statements or notes thereto.
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Summary of Significant Accounting Policies (Policies) |
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Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation and Basis of Presentation |
Principles of Consolidation and Basis of Presentation
The consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United
States of America (GAAP). All significant intercompany accounts and transactions have been eliminated in consolidation.
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Use of Estimates |
Use of Estimates
The preparation of the consolidated financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets, liabilities,
revenue, and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.
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Revenue Recognition |
Revenue Recognition
The Company recognizes revenue at the transfer of control of its products to the Company’s customers in an amount reflecting the consideration to which the Company expects
to be entitled. In order to achieve this core principle, the Company applies the following five-step approach:
The Company considers customer purchase orders, which in some cases are governed by master sales agreements, coupled with the Company’s purchase
order acknowledgements, to be the contracts with the customer. For each contract, the Company considers the identified performance obligation to be the promise to transfer products. In determining the transaction price, the Company evaluates
whether the price is subject to refund or adjustment and then determines the net consideration to which the Company expects to be entitled. In addition, the Company assesses the customer’s ability to pay as part of its evaluation of the contract.
As the Company’s standard payment terms are less than one year, the Company elected the practical expedient under Accounting Standards Codification (ASC) 606-10-32-18, and determined that its contracts do not have a significant financing component.
The Company allocates the transaction price to each distinct product based on the relative standalone selling price. Revenue is recognized when control of the product is transferred to the customer, the customer is obligated to pay the Company, and
the Company has no remaining obligations, which is typically at shipment. In certain locations, primarily outside the United States, product delivery terms may vary. Thus, in such locations, the point at which control of the product transfers to
the customer and revenue recognition occurs will vary accordingly.
Customer returns of non-conforming products are estimated at the time revenue is recognized. In certain customer relationships, volume rebates exist, which are recognized
according to the terms and conditions of the contractual relationship. Customer returns, rebates, and discounts are not material to the Company’s consolidated financial statements. The Company has elected to recognize the revenue and cost for freight
and shipping when control over the products has transferred to the customer. The Company has elected to immediately expense contract costs related to obtaining a contract as the amortization period of the asset the Company otherwise would have
recognized would have been less than a year.
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 (See Note
12, Segment and Geographic Information, for further information).
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Cost of Products Sold |
Cost of Products Sold
Cost of products sold includes materials, labor, and overhead expenses incurred in the manufacture of our products. Cost of products sold also includes charges for obsolete
and slow-moving inventories as well as costs for quality control, purchasing and receiving costs, inspection costs, warehousing costs, internal transfer costs, other costs of our internal distribution network, and costs incurred for shipping and
handling. The Company records fees billed to customers for shipping and handling as revenue.
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Selling and Administrative Expenses |
Selling and Administrative Expenses
Selling and administrative expenses primarily include the salaries and related costs for executive, finance, accounting, human resources, information technology, research
and development, and legal personnel as well as salaries and related costs of salespersons and commissions paid to external sales agents.
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Cash Equivalents |
Cash Equivalents
The Company considers all highly liquid investments with original maturities of three months or less at the date of acquisition as cash equivalents.
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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 general matters such as current assessments of past due balances and economic conditions. Specific accounts are written off against the allowance for doubtful accounts when it is deemed that the receivable is no longer collectible.
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Inventories |
Inventories
Inventories are stated at the lower of cost or net realizable value. Net realizable value is determined on the basis of estimated realizable values. Cost is determined
using the first-in, first-out (FIFO) method with the exception of certain locations of the Flavors & Extracts Group where cost is determined using a weighted average method. Inventories include finished and in-process products totaling $280.2 million and $268.1 million at
December 31, 2021 and 2020, respectively, and raw materials and supplies of $131.4 million and $113.2 million at December 31, 2021 and 2020, respectively.
The Company recorded a non-cash charge of $0.1 million, $1.8 million, and $9.8 million in Cost of Products Sold related to the divested product lines in 2021, 2020, and 2019, respectively. The non-cash charge reduced the
carrying value of certain inventories, as they were determined to be excess. See Note 14, Divestitures, for additional information.
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Property, Plant, and Equipment |
Property, Plant, and Equipment
Property, plant, and equipment are recorded at cost reduced by accumulated depreciation. Depreciation is provided over the estimated useful life of the related asset using
the straight-line method for financial reporting. The estimated useful lives for buildings and leasehold improvements range from 5 to 40 years. Machinery and equipment have estimated useful lives ranging from 3 to 20 years. Interest costs on significant projects constructed or developed for the Company’s own use
are capitalized as part of the asset.
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Goodwill and Other Intangible Assets |
Goodwill and Other Intangible Assets
The carrying value of goodwill is evaluated for impairment on an annual basis or more frequently when an indicator of impairment occurs. The impairment assessment includes
comparing the carrying amount of net assets, including goodwill, of each reporting unit to its respective fair value as of the date of the assessment. Fair value was estimated based upon an evaluation of the reporting unit’s estimated future
discounted cash flows as well as the public trading and private transaction valuation multiples for comparable companies. The Company performed such a quantitative analysis in 2019, which indicated a substantial premium compared to the carrying value
of net assets, including goodwill, at the reporting unit level. In 2021 and 2020, the Company completed a qualitative assessment noting no indicators of impairment. The Company
did not record impairment charges for any of its reporting units in 2021, 2020, or 2019.
In the fourth quarter of 2019, as a result of the Company meeting the assets held
for sale criteria for its divestitures of its inks and fragrances (excluding its essential oils product line) product lines, the Company allocated $8.4
million of goodwill to those disposal groups. The $8.4 million of goodwill related to the disposal groups was determined to be fully
impaired. In 2020, the fair value of the disposal groups decreased, which resulted in the previously allocated goodwill of $2.2 million to be reallocated to its respective financial reporting units. In 2021, the fair value of the disposal groups increased, which resulted
in an additional $0.8 million of goodwill allocated to the disposal groups. See Note 14, Divestitures, for additional details.
The cost of intangible assets with determinable useful lives is amortized on a straight-line basis to reflect the pattern of economic benefits consumed, ranging from 5 to 20 years. These assets include
technological know-how, customer relationships, patents, trademarks, and non-compete agreements, among others.
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Impairment of Long-lived Assets |
Impairment of Long-lived Assets
The Company reviews long-lived assets for impairment whenever events or changes in business circumstances
indicate that the carrying amount of the assets may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if potential impairment exists. If impairment is determined to exist, any related impairment loss is
calculated based on the difference between fair value and carrying value. Impairment losses were recorded as a result of the Company’s divestiture of its inks product line and its divestiture of its fragrances product line (excluding its
essential oils product line). See Note 14, Divestitures, for additional information.
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Leases |
Leases
The Company enters into lease agreements for certain office space, warehouses, land, and equipment in the ordinary course of business. The Company
determines if an arrangement is a lease at inception and evaluates the lease classification (i.e., operating lease or financing lease) at that time. Lease arrangements with an initial term of 12 months or less are considered short-term leases and
are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the term of the lease.
Operating leases are included in Other Assets, Other Accrued Expenses, and Other Liabilities on the Company’s
Consolidated Balance Sheet. Operating lease right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease
right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term.
The Company uses its incremental borrowing rate on the commencement date for determining the present value of lease payments. The Company considers
the likelihood of exercising options to extend or terminate the lease when determining the lease term.
The Company has lease agreements with lease and non-lease components. The Company has elected the practical expedient of accounting for the lease and
non-lease components of each lease as a single lease component.
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Derivative Financial Instruments |
Derivative Financial Instruments
The Company selectively uses derivative financial instruments to reduce market risk associated with changes in foreign currency and interest rate exposures, which exist as
part of ongoing business operations. All derivative transactions are authorized and executed pursuant to the Company’s risk management policies and procedures, which strictly prohibit the use of financial instruments for speculative trading purposes.
The primary objectives of the foreign exchange risk management activities are to understand and mitigate the impact of potential foreign exchange fluctuations on the
Company’s financial results and its economic well-being. Changes in the fair value of derivatives that are designated as fair value hedges, along with the gain or loss on the hedged item, are recorded in current period earnings. These risk management
transactions may involve the use of foreign currency derivatives to protect against exposure resulting from recorded accounts receivable and payable. The Company may utilize forward exchange contracts, generally with maturities of less than 18 months, which qualify as cash flow hedges. Generally, these foreign exchange contracts are intended to offset the effect of exchange rate fluctuations
on non-functional currency denominated sales and purchases. For derivative instruments that are designated as cash flow hedges, gains and losses are deferred in Accumulated Other Comprehensive Income (OCI)
until the underlying transaction is recognized in earnings.
For hedges designated as cash flow hedges, the Company elects critical terms that match at the onset of the hedge transaction. Hedge accounting is permitted only if the
hedge meets the critical terms match requirements. The Company reviews the critical terms at each effectiveness testing date to ensure the respective terms match; therefore, achieving a highly effective hedge.
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Interest Rate Hedging |
Interest Rate Hedging
The Company is exposed to interest rate risk through its corporate borrowing activities. The objective of the Company’s interest rate risk management activities is to
manage the levels of the Company’s fixed and floating interest rate exposure to be consistent with the Company’s preferred mix. The interest rate risk management program may include entering into interest rate swaps, which qualify as fair value
hedges, when there is a desire to modify the Company’s exposure to interest rates. Gains or losses on fair value hedges are recognized in earnings, net of gains and losses on the fair value of the hedged instruments.
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Net Investments Hedging |
Net Investments Hedging
The Company is exposed to risk related to its net investments in foreign subsidiaries. As part of its risk management activities, the Company may enter into
foreign-denominated debt to be used as a non-derivative instrument to hedge the Company’s net investment in foreign subsidiaries. The change in the fair value of debt designated as a net investment hedge is recorded in foreign currency translation in
OCI.
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Commodity Purchases |
Commodity Purchases
The Company purchases certain commodities in the normal course of business that result in physical delivery of the goods and, hence, are excluded from ASC 815, Derivatives and Hedging.
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Translation of Foreign Currencies |
Translation of Foreign Currencies
For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of foreign operations are translated into U.S. dollars at
current exchange rates. Revenue and expense accounts are translated into U.S. dollars at average exchange rates prevailing during the year. Adjustments resulting from the translation of foreign accounts into U.S. dollars are recorded in foreign
currency translation in OCI. Transaction gains and losses that occur as a result of transactions denominated in non-functional currencies are included in earnings and were not significant during the years ended December 31, 2021, 2020, and 2019.
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Share-Based Compensation |
Share-Based Compensation
Share-based compensation expense is recognized over the vesting period of each award based on the fair value of the instrument at the time of grant as summarized in Note 8, Share-Based Compensation.
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Income Taxes |
Income Taxes
The Company recognizes a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax liability or
asset for the estimated future tax effects attributable to temporary differences and carryforwards. The measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. Deferred tax assets are reduced, if
necessary, by the amount of any tax benefits for which the utilization of the asset is not considered likely.
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Earnings Per Share |
Earnings Per Share
The difference between basic and diluted earnings per share (EPS) is the dilutive effect of non-vested stock. Diluted EPS assumes that non-vested stock has vested.
The following table sets forth the computation of basic and diluted EPS for the years ended December 31:
The Company has a share-based compensation plan under which employees may be granted share-based awards in which non-forfeitable dividends are paid on non-vested shares for
certain awards. As such, these shares are considered participating securities under the two-class method of calculating EPS as described in ASC 260, Earnings per
Share. The two-class method of calculating EPS did not have a material impact on the Company’s EPS calculations as of December 31, 2021, 2020, and 2019.
All EPS amounts are presented on a diluted basis unless otherwise noted.
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Accumulated Other Comprehensive Income (Loss) |
Accumulated Other Comprehensive Income (Loss)
Accumulated OCI is composed primarily of foreign currency translation, pension liability, and unrealized gains or losses on cash flow hedges. See Note 10, Accumulated Other Comprehensive Income, for additional information.
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Research and Development |
Research and Development
Research and development costs are recorded in Selling and Administrative Expenses in the year they are incurred. Research and development costs were $34.3 million, $38.5 million, and $40.1 million, during the years ended December 31, 2021, 2020, and 2019, respectively.
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Advertising |
Advertising
Advertising costs are recorded in Selling and Administrative Expenses as they are incurred. Advertising costs were $2.4 million, $2.0 million, and $2.2 million, during the years ended December 31, 2021, 2020,
and 2019, respectively.
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Environmental Liabilities |
Environmental Liabilities
The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and reasonably estimable. Such accruals are
adjusted as further information becomes available or as circumstances change. Estimated future expenditures are discounted to their present value when the timing and amount of future cash flows are fixed and readily determinable. Recoveries of
remediation costs from other parties, if any, are recognized as assets when their receipt is realizable.
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Subsequent Events |
Subsequent Events
The Company performed an evaluation of subsequent events through the date these financial statements were issued. See Note 17, Subsequent Event, for additional information.
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Recently Adopted/Issued Accounting Pronouncements |
Recently Adopted Accounting Pronouncements
In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which clarifies and simplifies aspects of the accounting for income taxes. ASU 2019-12 is effective for public business entities
beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2019-12 on January 1, 2021, using retrospective, modified retrospective, or prospective basis for certain
amendments. There was no impact to the consolidated financial statements.
Recently Issued Accounting Pronouncements
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 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.
Other recently issued accounting pronouncements are not expected to have a material impact on the Company’s consolidated financial statements.
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Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Common Shares for the Computation of EPS |
The following table sets forth the computation of basic and diluted EPS for the years ended December 31:
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Trade Accounts Receivable (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade Accounts Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Allowance for Doubtful Accounts |
The following table summarizes the changes in the allowance for doubtful accounts for the years ended December 31, 2021 and 2020:
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Goodwill and Intangible Assets (Tables) |
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets |
At December 31, 2021 and 2020, goodwill is the only intangible asset that is not subject to amortization. The following table summarizes intangible assets with determinable
useful lives by major category as of December 31, 2021 and 2020:
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Changes in Goodwill by Business Segment |
The changes in goodwill for the years ended December 31, 2021 and 2020, by reportable business segment, were as follows:
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Leases (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of Operating Lease Liabilities |
As of December 31, 2021, maturities of operating lease liabilities for future annual periods are as follows:
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Debt (Tables) |
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt |
Long-term debt consisted of the following unsecured obligations at December 31:
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Contractual Maturities on Long-Term Debt |
The aggregate amounts of contractual maturities on long-term debt subsequent to December 31, 2021, are as follows:
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Restrictive Loan Covenants |
Substantially all of the senior financing obligations contain restrictions concerning interest coverage, borrowings, and investments. The Company is in compliance with all
of these restrictions at December 31, 2021. The following table summarizes the Company’s most restrictive loan covenants calculated in accordance with the applicable agreements as of December 31, 2021:
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Short-Term Borrowings |
The Company’s short-term borrowings consisted of the following items at December 31:
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Share-Based Compensation (Tables) |
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-vested Stock and Performance Unit Activity |
The following table summarizes the non-vested stock and performance stock unit activity:
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Retirement Plans (Tables) |
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funded Status of Defined Benefit Plan |
Although the Company intends for these defined contribution plans to be the primary retirement benefit for most employees, the Company also has several defined benefit
plans. The funded status of the defined benefit plans was as follows at December 31:
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Amounts Recognized in Consolidated Balance Sheets |
Amounts recognized in the Consolidated Balance Sheets at December 31:
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Annual Benefit Cost |
Components of annual benefit cost:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Assumptions |
Weighted average liability assumptions as of December 31:
Weighted average cost assumptions for the year ended December 31:
|
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Amounts Recognized in Accumulated Other Comprehensive Loss |
Amounts in accumulated other comprehensive loss at December 31 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Adjustments Recognized in Accumulated Other Comprehensive Income |
The pension adjustments, net of tax, recognized in OCI, were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plan Assets by Asset Category |
The following table presents the Company’s pension plan assets by asset category as of December 31, 2021 and 2020:
|
Accumulated Other Comprehensive Income (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in OCI |
The following table summarizes the changes in OCI for 2021, 2020, and 2019:
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Before Income Taxes |
Earnings before income taxes were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Income Taxes |
The provision for income taxes was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective Income Tax Rate Reconciliation |
The reconciliation between the U.S. Federal tax rate and the actual effective tax rate was as
follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax Effects of Temporary Differences - Deferred Tax Assets and Liabilities |
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Change in Liability for Unrecognized Tax Benefits |
A reconciliation of the change in the liability for unrecognized tax benefits for 2021 and 2020 is as follows:
|
Segment and Geographic Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Geographic Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
Divestiture & other related costs and restructuring and other costs, including the operational
improvement plan costs and income, for the years ended December 31, 2021, 2020, and 2019, are further
described in Note 14, Divestitures, and Note 15, Operational Improvement
Plan, and are included in the operating income (loss) results in Corporate & Other below. In addition, the Company’s corporate expenses and share-based compensation are
included in Corporate & Other.
|
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Geographical Information |
The Company’s annual revenue summarized by geographic location is as follows:
|
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Product Information |
The Company’s revenue summarized by product portfolio is as follows:
|
Divestitures (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestitures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Held for Sale |
The assets and liabilities related to the inks and fragrances (excluding its essential oils product line) product lines are recorded in Assets Held for Sale and Liabilities Held for Sale as of December 31, 2020, as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestiture and Other Related Costs |
The Company reports all costs associated with the divestitures
in Corporate & Other. The following table summarizes the divestiture & other related costs for the year ended December 31, 2021:
The Company reports all costs associated with the divestitures in Corporate & Other. The following table summarizes the divestiture & other related costs for the
year ended December 31, 2020:
The Company reports all costs associated with the divestitures in Corporate & Other. The following table summarizes the divestiture & other related costs for the
year ended December 31, 2019:
|
Operational Improvement Plan (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operational Improvement Plan [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operational Improvement Plan Costs by Segment |
The following table summarizes the Operational Improvement Plan income and expenses recorded in Selling and Administrative Expenses by segment for the year ended December 31, 2021:
The following table summarizes the Operational Improvement Plan expenses by segment for the year ended December 31, 2020:
The Company recorded the Operational Improvement Plan expenses for the year ended December 31, 2020, as follows:
|
Summary of Significant Accounting Policies, Nature of Operations (Details) |
12 Months Ended |
---|---|
Dec. 31, 2021
Segment
| |
Nature of Operations [Abstract] | |
Number of reportable segments | 3 |
Summary of Significant Accounting Policies, Inventories (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Inventories [Abstract] | |||
Inventories include finished and in-process products | $ 280.2 | $ 268.1 | |
Raw materials and supplies | 131.4 | 113.2 | |
Non-cash impairment charges | $ 0.1 | $ 1.8 | $ 9.8 |
Summary of Significant Accounting Policies, Property Plant and Equipment (Details) |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Building and Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant, and Equipment [Abstract] | |
Estimated useful lives | 5 years |
Building and Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant, and Equipment [Abstract] | |
Estimated useful lives | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant, and Equipment [Abstract] | |
Estimated useful lives | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant, and Equipment [Abstract] | |
Estimated useful lives | 20 years |
Summary of Significant Accounting Policies, Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|||||||
Intangible assets [Abstract] | |||||||||
Impairment charge | $ 0 | $ 0 | |||||||
Goodwill related to divestitures | [1] | $ 8,400 | |||||||
Goodwill related to divestitures | $ (812) | [2] | $ 2,198 | [1] | |||||
Minimum [Member] | |||||||||
Intangible assets [Abstract] | |||||||||
Useful lives of intangible assets | 5 years | ||||||||
Maximum [Member] | |||||||||
Intangible assets [Abstract] | |||||||||
Useful lives of intangible assets | 20 years | ||||||||
|
Summary of Significant Accounting Policies, Derivative Financial Instruments (Details) - Maximum [Member] |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Derivative Financial Instruments [Abstract] | |
Number of months for contracts to mature | 18 months |
Forward Exchange Contracts [Member] | |
Derivative Financial Instruments [Abstract] | |
Number of months for contracts to mature | 18 months |
Summary of Significant Accounting Policies, Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Numerator [Abstract] | |||
Net earnings | $ 118,745 | $ 109,472 | $ 82,047 |
Denominator [Abstract] | |||
Denominator for basic EPS - weighted average common shares (in shares) | 42,077 | 42,301 | 42,263 |
Effect of dilutive securities (in shares) | 181 | 45 | 31 |
Denominator for diluted EPS - diluted weighted average shares outstanding (in shares) | 42,258 | 42,346 | 42,294 |
Earnings per Common Share [Abstract] | |||
Basic (in dollars per share) | $ 2.82 | $ 2.59 | $ 1.94 |
Diluted (in dollars per share) | $ 2.81 | $ 2.59 | $ 1.94 |
Summary of Significant Accounting Policies, Research and Development (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Research and Development [Abstract] | |||
Research and development costs | $ 34.3 | $ 38.5 | $ 40.1 |
Summary of Significant Accounting Policies, Advertising (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Advertising [Abstract] | |||
Advertising costs | $ 2.4 | $ 2.0 | $ 2.2 |
Acquisition (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Jul. 15, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Acquisition [Abstract] | ||||
Acquisition of new businesses | $ (13,875) | $ 0 | $ 0 | |
Goodwill | $ 420,034 | $ 423,290 | $ 407,042 | |
Flavor Solutions, Inc. [Member] | ||||
Acquisition [Abstract] | ||||
Acquisition of new businesses | $ (14,900) | |||
Held back amount of cash | $ 1,000 | |||
Post-closing indemnification claims satisfy period | 12 months | |||
Net assets acquired | $ 400 | |||
Goodwill | 9,500 | |||
Flavor Solutions, Inc. [Member] | Customer Relationships [Member] | ||||
Acquisition [Abstract] | ||||
Intangibles assets acquired | $ 5,000 |
Trade Accounts Receivable (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021
USD ($)
Segment
|
Dec. 31, 2020
USD ($)
|
|
Trade Accounts Receivable [Abstract] | ||
Number of portfolio segments | Segment | 1 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 3,891 | $ 6,913 |
Provision for expected credit losses | 1,631 | 565 |
Accounts written off | (434) | (1,590) |
Divestitures | (2,174) | |
Translation and other activity | (211) | (676) |
Ending balance | $ 4,877 | 3,891 |
ASU 2016-13 [Member] | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Adoption of ASU 2016-13 | $ 853 |
Goodwill and Intangible Assets, Goodwill (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|||||||||
Goodwill and Intangible Assets [Abstract] | |||||||||||
Goodwill related to divestitures | [1] | $ 8,400 | |||||||||
Goodwill activity [Roll Forward] | |||||||||||
Balance as of beginning of period | $ 423,290 | $ 407,042 | |||||||||
Currency translation impact | (11,900) | 14,050 | |||||||||
Goodwill related to divestitures | (812) | [2] | 2,198 | [1] | |||||||
Acquisitions | [3] | 9,456 | |||||||||
Balance as of end of period | 420,034 | 423,290 | 407,042 | ||||||||
Flavors & Extracts [Member] | |||||||||||
Goodwill activity [Roll Forward] | |||||||||||
Balance as of beginning of period | 112,370 | 108,148 | |||||||||
Currency translation impact | (17,298) | 3,565 | |||||||||
Goodwill related to divestitures | (812) | [2] | 657 | [1] | |||||||
Acquisitions | [3] | 9,456 | |||||||||
Balance as of end of period | 103,716 | 112,370 | 108,148 | ||||||||
Color [Member] | |||||||||||
Goodwill activity [Roll Forward] | |||||||||||
Balance as of beginning of period | 305,263 | 293,636 | |||||||||
Currency translation impact | 6,001 | 10,086 | |||||||||
Goodwill related to divestitures | 0 | [2] | 1,541 | [1] | |||||||
Acquisitions | [3] | 0 | |||||||||
Balance as of end of period | 311,264 | 305,263 | 293,636 | ||||||||
Asia Pacific [Member] | |||||||||||
Goodwill activity [Roll Forward] | |||||||||||
Balance as of beginning of period | 5,657 | 5,258 | |||||||||
Currency translation impact | (603) | 399 | |||||||||
Goodwill related to divestitures | 0 | [2] | 0 | [1] | |||||||
Acquisitions | [3] | 0 | |||||||||
Balance as of end of period | $ 5,054 | $ 5,657 | $ 5,258 | ||||||||
|
Derivative Instruments and Hedging Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Derivative instruments and hedging activity for the period [Abstract] | |||
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ 17,937 | $ (24,044) | $ 3,091 |
Maximum [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Number of months for contracts to mature | 18 months | ||
Forward Exchange Contracts [Member] | Maximum [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Number of months for contracts to mature | 18 months | ||
Forward Exchange Contracts [Member] | Cash Flow Hedging [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Derivative, fair value | $ 48,600 | 54,100 | |
Amount of gains (losses) reclassified into net earnings | 1,300 | (1,300) | |
Foreign Currency Denominated Debt, Net Investment Hedging [Member] | |||
Derivative instruments and hedging activity for the period [Abstract] | |||
Amount of gains (losses) reclassified into net earnings | (4,200) | (10,800) | |
Carrying value of foreign denominated debt | 289,500 | 325,000 | |
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income | $ 17,900 | $ (24,000) |
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Additional Disclosures [Abstract] | ||||
Total pre-tax share-based compensation expense (income) recognized in the Consolidated Statements of Earnings | $ 9,600 | $ 5,600 | $ (700) | |
Tax related benefits (expense) | $ 1,000 | $ 800 | (200) | |
Adjustments to share-based compensation | $ 3,600 | |||
Non-vested Stock [Member] | ||||
Stock Unit Activity [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 451 | 404 | 380 | |
Granted (in shares) | 129 | 142 | 134 | |
Vested (in shares) | (25) | (27) | (46) | |
Cancelled (in shares) | (73) | (68) | (64) | |
Outstanding, end of period (in shares) | 482 | 451 | 404 | |
Grant Date Weighted Average Fair Value [Abstract] | ||||
Outstanding, beginning of period (in dollars per share) | $ 63.28 | $ 64.89 | $ 66.02 | |
Granted (in dollars per share) | 90.10 | 65.61 | 60.04 | |
Vested (in dollars per share) | 61.91 | 74.21 | 63.61 | |
Cancelled (in dollars per share) | 72.37 | 73.39 | 62.39 | |
Outstanding, end of period (in dollars per share) | $ 69.15 | $ 63.28 | $ 64.89 | |
Aggregate Intrinsic Value [Abstract] | ||||
Outstanding, aggregate intrinsic value | $ 48,271 | $ 33,283 | $ 26,710 | $ 21,239 |
Additional Disclosures [Abstract] | ||||
Total intrinsic values of shares vested | 1,900 | $ 1,400 | $ 3,000 | |
Non-vested Stock and Performance Stock Units [Member] | ||||
Additional Disclosures [Abstract] | ||||
Compensation cost net yet recognized | $ 21,700 | |||
Compensation cost not yet recognized, period for recognition | 2 years 2 months 4 days | |||
2017 Stock Plan [Member] | Non-vested Stock [Member] | ||||
Share-based Compensation Arrangement [Abstract] | ||||
Number of shares authorized for issuance (in shares) | 1,800 | |||
Number of shares available for issuance (in shares) | 1,100 | |||
Award vesting period | 3 years | |||
Percentage of grants to elected officers that will be performance stock unit awards | 60.00% | 60.00% | 100.00% | |
Percentage of grants, non-vested restricted stock awards | 40.00% | 40.00% | ||
Number of years to measure performance metrics | 3 years | |||
2017 Stock Plan [Member] | Non-vested Stock [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement [Abstract] | ||||
Percentage of stated performance metrics award of grant | 200.00% | 200.00% | 200.00% | 150.00% |
Amended and Restated Directors Deferred Compensation Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement [Abstract] | ||||
Number of shares available for issuance (in shares) | 200 |
Retirement Plans, Defined Contribution Plans (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Defined Contribution Plan [Member] | |||
Defined Contribution Pension and Other Postretirement Benefit Expense [Abstract] | |||
Percentage of matching contributions under defined contribution plan | 4.00% | ||
Total expense for defined contribution plans | $ 6,700 | $ 6,100 | $ 6,000 |
Pension Plan [Member] | |||
Benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 45,631 | 39,421 | |
Service cost | 1,740 | 1,601 | 1,432 |
Interest cost | 851 | 1,022 | 1,273 |
Foreign currency exchange rate changes | (291) | 690 | |
Benefits and settlements paid | (3,298) | (1,948) | |
Amendments | 0 | 42 | |
Actuarial (gain) loss | (2,853) | 4,803 | |
Benefit obligation at end of year | 41,780 | 45,631 | 39,421 |
Change in fair value of plan assets [Roll Forward] | |||
Plan assets at beginning of year | 35,676 | 31,776 | |
Company contributions | 947 | 1,117 | |
Foreign currency exchange rate changes | (297) | 882 | |
Benefits paid | (1,718) | (1,948) | |
Settlement payments | (1,580) | 0 | |
Actual (loss) gain on plan assets | (46) | 3,849 | |
Plan assets at end of year | 32,982 | 35,676 | 31,776 |
Funded status | (8,798) | (9,955) | |
Accumulated benefit obligation | 40,873 | 44,559 | |
Amounts recognized in Consolidated Balance Sheets [Abstract] | |||
Accrued employee and retiree benefits | (18,375) | (19,349) | |
Other accrued expenses | (693) | (722) | |
Other assets | 10,270 | 10,116 | |
Net liability | (8,798) | (9,955) | |
Components of annual benefit cost [Abstract] | |||
Service cost | 1,740 | 1,601 | 1,432 |
Interest cost | 851 | 1,022 | 1,273 |
Expected return on plan assets | (728) | (813) | (896) |
Recognized actuarial loss (gain) | 267 | 41 | (176) |
Settlement income | (151) | 0 | 0 |
Defined benefit expense | $ 1,979 | $ 1,851 | $ 1,633 |
Weighted average liability assumptions [Abstract] | |||
Discount rate | 2.35% | 1.87% | |
Expected return on plan assets | 2.54% | 2.17% | |
Rate of compensation increase | 0.27% | 0.34% | |
Weighted average cost assumption [Abstract] | |||
Discount rate | 1.87% | 2.69% | 3.80% |
Expected return on plan assets | 2.17% | 2.68% | 3.21% |
Rate of compensation increase | 0.34% | 0.34% | 0.31% |
Estimated Future Benefit Payments [Abstract] | |||
2022 | $ 1,700 | ||
2023 | 3,800 | ||
2024 | 3,900 | ||
2025 | 1,700 | ||
2026 | 4,800 | ||
2027 through 2031 | 10,600 | ||
Estimated future employer contributions for next fiscal year | 700 | ||
Amounts recognized in Accumulated Other Comprehensive Loss [Abstract] | |||
Unrecognized net actuarial loss | 221 | $ 2,402 | |
Prior service cost | 179 | 187 | |
Total before tax effects | 400 | 2,589 | |
Other Comprehensive Income (Loss), Pension Adjustment, Net of Tax [Abstract] | |||
Net actuarial gain (loss) arising during the period | 1,528 | (1,293) | $ (1,091) |
Prior service cost | 0 | (32) | 0 |
Amortization of actuarial loss (gain), included in defined benefit expense | 84 | 32 | (130) |
Pension adjustment, net of tax | $ 1,612 | $ (1,293) | $ (1,221) |
Retirement Plans, Pension Plan Assets (Details) - Pension Plan [Member] - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | $ 32,982 | $ 35,676 | $ 31,776 |
Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 8,037 | 7,831 | |
Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 24,945 | 27,845 | |
Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Domestic [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 7,033 | 6,565 | |
Domestic [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 7,033 | 6,565 | |
Domestic [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Domestic [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
International [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 79 | 97 | |
International [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
International [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 79 | 97 | |
International [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
International Fixed Income Funds [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 25,732 | 28,911 | |
International Fixed Income Funds [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 889 | 1,190 | |
International Fixed Income Funds [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 24,843 | 27,721 | |
International Fixed Income Funds [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 0 | 0 | |
Other Investments [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 138 | 103 | |
Other Investments [Member] | Level 1 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 115 | 76 | |
Other Investments [Member] | Level 2 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | 23 | 27 | |
Other Investments [Member] | Level 3 [Member] | |||
Pension Plan Assets by Asset Category [Abstract] | |||
Total assets at fair value | $ 0 | $ 0 |
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 934,336 | ||||
Other comprehensive income (loss) before reclassifications | (24,506) | $ 11,188 | $ 2,912 | ||
Amounts reclassified from OCI | 8,969 | (7,271) | (365) | ||
Ending balance | 938,425 | 934,336 | |||
Accumulated Other Comprehensive (Loss) Income [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (159,091) | (163,008) | (165,555) | ||
Ending balance | (174,628) | (159,091) | (163,008) | ||
Cash Flow Hedges [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | 749 | (199) | 147 | |
Other comprehensive income (loss) before reclassifications | [1] | 775 | (374) | (111) | |
Amounts reclassified from OCI | [1] | (1,318) | 1,322 | (235) | |
Ending balance | [1] | 206 | 749 | (199) | |
Pension Items [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | (1,965) | (672) | 549 | |
Other comprehensive income (loss) before reclassifications | [1] | 1,528 | (1,325) | (1,091) | |
Amounts reclassified from OCI | [1] | 84 | 32 | (130) | |
Ending balance | [1] | (353) | (1,965) | (672) | |
Foreign Currency Items [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (157,875) | (162,137) | (166,251) | ||
Other comprehensive income (loss) before reclassifications | (26,809) | 12,887 | 4,114 | ||
Amounts reclassified from OCI | 10,203 | (8,625) | 0 | ||
Ending balance | $ (174,481) | $ (157,875) | $ (162,137) | ||
|
Income Taxes, Earnings Before Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Earnings before income taxes [Abstract] | |||
United States | $ 71,764 | $ 72,593 | $ 38,356 |
Foreign | 85,720 | 65,252 | 62,647 |
Earnings before income taxes | $ 157,484 | $ 137,845 | $ 101,003 |
Income Taxes, Provision for Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Current income tax expense [Abstract] | |||
Federal | $ 16,807 | $ 9,660 | $ 12,994 |
State | 5,128 | 3,000 | 2,622 |
Foreign | 22,875 | 24,418 | 22,680 |
Current income tax expense, total | 44,810 | 37,078 | 38,296 |
Deferred expense (benefit) [Abstract] | |||
Federal | (4,159) | (6,918) | (17,246) |
State | (1,189) | (565) | 18 |
Foreign | (723) | (1,222) | (2,112) |
Deferred income tax expense (benefit), total | (6,071) | (8,705) | (19,340) |
Income taxes | $ 38,739 | $ 28,373 | $ 18,956 |
Income Taxes, Tax Reconciliation and Tax Cuts and Jobs Act (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Effective tax rate reconciliation [Abstract] | ||||
Taxes at statutory rate | 21.00% | 21.00% | 21.00% | |
State income taxes, net of federal income tax benefit | 2.90% | 2.20% | 2.20% | |
Tax credits | (1.40%) | (1.50%) | (2.60%) | |
Taxes on foreign earnings | 4.70% | 2.80% | 5.10% | |
Global Intangible Low-Taxed Income | 0.70% | 0.10% | 0.90% | |
Foreign Derived Intangible Income | (0.90%) | (1.10%) | (1.00%) | |
Loss on balance sheet hedge | 0.70% | 2.00% | 0.00% | |
Resolution of prior years' tax matters | (0.40%) | (0.10%) | (0.40%) | |
Valuation allowance adjustments | (1.90%) | (3.70%) | (8.80%) | |
Other, net | (0.80%) | (1.10%) | 2.40% | |
Effective tax rate | 24.60% | 20.60% | 18.80% | |
Valuation Allowance [Abstract] | ||||
Valuation allowance | $ (36,859) | $ (47,813) | ||
Increase in valuation allowance amount | $ 16,200 | |||
Increase in valuation allowance for deferred tax assets, related to operating losses | $ 6,800 |
Income Taxes, Deferred Tax Assets and Liabilities, Operating Loss Carryovers (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Deferred tax assets [Abstract] | ||
Benefit plans | $ 10,360 | $ 7,665 |
Liabilities and reserves | 16,978 | 19,291 |
Operating loss and credit carryovers | 68,646 | 77,756 |
Other | 10,031 | 13,228 |
Gross deferred tax assets | 106,015 | 117,940 |
Valuation allowance | (36,859) | (47,813) |
Deferred tax assets | 69,156 | 70,127 |
Deferred tax liabilities [Abstract] | ||
Property, plant, and equipment | (32,560) | (31,709) |
Goodwill | (21,044) | (22,012) |
Deferred tax liabilities | (53,604) | (53,721) |
Net deferred tax assets | 15,552 | $ 16,406 |
Operating Loss Carryforwards [Abstract] | ||
Operating loss carryovers, tax credit | 36,800 | |
Undistributed earnings | 625,900 | |
Withholding of tax liability | 32,900 | |
Foreign [Member] | ||
Operating Loss Carryforwards [Abstract] | ||
Operating loss carryovers | 87,200 | |
Operating loss carryovers, subject to expiration | 10,100 | |
Operating loss carryovers, not subject to expiration | 77,100 | |
State [Member] | ||
Operating Loss Carryforwards [Abstract] | ||
Operating loss carryovers | 126,400 | |
Operating loss carryovers, subject to expiration | $ 126,400 |
Income Taxes, Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Reconciliation of change in liability for unrecognized tax benefits [Roll Forward] | ||
Balance at beginning of year | $ 7,445 | $ 6,032 |
Increases for tax positions taken in the current year | 715 | 805 |
Increases for tax positions taken in prior years | 0 | 1,267 |
Decreases related to settlements with tax authorities | (3,643) | (386) |
Decreases as a result of lapse of the applicable statutes of limitations | (367) | (625) |
Foreign currency exchange rate changes | (389) | 352 |
Balance at the end of year | 3,761 | 7,445 |
Income tax uncertainties [Abstract] | ||
Unrecognized tax benefits that would impact the effective tax rate, if recognized | 4,000 | |
Income tax interest and penalties accrued | 400 | $ 700 |
Expected decrease in liability for unrecognized tax benefits in the next fiscal year | 700 | |
Unrecognized tax benefits that would impact the effective tax rate in the next fiscal year | $ 400 |
Segment and Geographic Information, Reportable Segments (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021
USD ($)
Segment
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Segment and Geographic Information [Abstract] | |||
Number of reportable segment | Segment | 3 | ||
Revenue [Abstract] | |||
Revenue | $ 1,380,264 | $ 1,332,001 | $ 1,322,934 |
Operating income (loss) | 170,028 | 152,656 | 121,110 |
Interest expense | 12,544 | 14,811 | 20,107 |
Earnings before income taxes | 157,484 | 137,845 | 101,003 |
Assets | 1,745,493 | 1,740,860 | 1,740,151 |
Capital expenditures | 60,788 | 52,162 | 39,100 |
Depreciation and amortization | 52,051 | 49,641 | 55,015 |
Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue | 717,688 | 724,483 | 682,705 |
Operating income (loss) | 98,660 | 90,974 | 74,961 |
Interest expense | 0 | 0 | 0 |
Earnings before income taxes | 98,660 | 90,974 | 74,961 |
Assets | 639,992 | 686,348 | 714,779 |
Capital expenditures | 35,846 | 24,541 | 16,968 |
Depreciation and amortization | 26,020 | 24,801 | 27,179 |
Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 527,626 | 486,536 | 522,051 |
Operating income (loss) | 103,575 | 96,034 | 101,190 |
Interest expense | 0 | 0 | 0 |
Earnings before income taxes | 103,575 | 96,034 | 101,190 |
Assets | 738,139 | 718,665 | 734,343 |
Capital expenditures | 16,806 | 19,840 | 16,521 |
Depreciation and amortization | 20,572 | 19,368 | 22,088 |
Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 134,950 | 120,982 | 118,178 |
Operating income (loss) | 26,330 | 22,075 | 19,382 |
Interest expense | 0 | 0 | 0 |
Earnings before income taxes | 26,330 | 22,075 | 19,382 |
Assets | 108,126 | 100,258 | 99,183 |
Capital expenditures | 2,813 | 2,687 | 2,545 |
Depreciation and amortization | 2,748 | 2,578 | 2,581 |
Reportable Segments [Member] | |||
Revenue [Abstract] | |||
Revenue | 1,420,045 | 1,364,280 | 1,353,763 |
Reportable Segments [Member] | Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue | 739,427 | 742,035 | 700,356 |
Reportable Segments [Member] | Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 545,270 | 501,018 | 535,159 |
Reportable Segments [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 135,348 | 121,227 | 118,248 |
Intersegment Revenue [Member] | |||
Revenue [Abstract] | |||
Revenue | 39,781 | 32,279 | 30,829 |
Intersegment Revenue [Member] | Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue | 21,739 | 17,552 | 17,651 |
Intersegment Revenue [Member] | Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 17,644 | 14,482 | 13,108 |
Intersegment Revenue [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 398 | 245 | 70 |
Corporate & Other [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Operating income (loss) | (58,537) | (56,427) | (74,423) |
Interest expense | 12,544 | 14,811 | 20,107 |
Earnings before income taxes | (71,081) | (71,238) | (94,530) |
Assets | 259,236 | 235,589 | 191,846 |
Capital expenditures | 5,323 | 5,094 | 3,066 |
Depreciation and amortization | $ 2,711 | $ 2,894 | $ 3,167 |
Segment and Geographic Information, Segment and Geographic Info (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Revenue [Abstract] | |||
Revenue from external customers | $ 1,380,264 | $ 1,332,001 | $ 1,322,934 |
Long-lived assets | 1,004,340 | 999,274 | 951,938 |
North America [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 787,107 | 733,330 | 700,098 |
Long-lived assets | 624,766 | 600,404 | 552,673 |
Europe [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 278,229 | 289,980 | 307,631 |
Long-lived assets | 317,875 | 339,264 | 344,942 |
Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 221,566 | 199,921 | 205,979 |
Long-lived assets | 37,689 | 36,708 | 35,782 |
Other [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 93,362 | 108,770 | 109,226 |
Long-lived assets | 24,010 | 22,898 | 18,541 |
Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 717,688 | 724,483 | 682,705 |
Long-lived assets | 361,711 | 358,331 | 355,974 |
Color [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 527,626 | 486,536 | 522,051 |
Long-lived assets | 504,553 | 506,532 | 484,829 |
Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 134,950 | 120,982 | 118,178 |
Long-lived assets | 32,901 | 31,834 | 31,007 |
Reportable Geographical Components [Member] | United States [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 658,000 | 614,300 | 575,200 |
Long-lived assets | 550,300 | 518,200 | 471,800 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | North America [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 523,960 | 491,641 | 448,393 |
Long-lived assets | 268,934 | 244,921 | 251,822 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Europe [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 135,348 | 160,083 | 158,902 |
Long-lived assets | 91,934 | 112,424 | 102,631 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 29,880 | 30,080 | 32,203 |
Long-lived assets | 275 | 204 | 1,017 |
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Other [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 28,500 | 42,679 | 43,207 |
Long-lived assets | 568 | 782 | 504 |
Reportable Geographical Components [Member] | Color [Member] | North America [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 263,031 | 241,608 | 251,593 |
Long-lived assets | 250,682 | 252,906 | 220,723 |
Reportable Geographical Components [Member] | Color [Member] | Europe [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 142,741 | 129,704 | 148,393 |
Long-lived assets | 225,916 | 226,840 | 242,311 |
Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 59,914 | 52,414 | 57,268 |
Long-lived assets | 4,513 | 4,670 | 3,758 |
Reportable Geographical Components [Member] | Color [Member] | Other [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 61,940 | 62,810 | 64,797 |
Long-lived assets | 23,442 | 22,116 | 18,037 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 116 | 81 | 112 |
Long-lived assets | 0 | 0 | 0 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 140 | 193 | 336 |
Long-lived assets | 0 | 0 | 0 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 131,772 | 117,427 | 116,508 |
Long-lived assets | 32,901 | 31,834 | 31,007 |
Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 2,922 | 3,281 | 1,222 |
Long-lived assets | 0 | 0 | 0 |
Intersegment Revenue [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 39,781 | 32,279 | 30,829 |
Intersegment Revenue [Member] | Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 21,739 | 17,552 | 17,651 |
Intersegment Revenue [Member] | Color [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 17,644 | 14,482 | 13,108 |
Intersegment Revenue [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 398 | 245 | 70 |
Corporate & Other [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | 105,175 | 102,577 | 80,128 |
Corporate & Other [Member] | North America [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | 105,150 | 102,577 | 80,128 |
Corporate & Other [Member] | Europe [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | 25 | 0 | 0 |
Corporate & Other [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | 0 | 0 | 0 |
Corporate & Other [Member] | Other [Member] | |||
Revenue [Abstract] | |||
Revenue from external customers | 0 | 0 | 0 |
Long-lived assets | $ 0 | $ 0 | $ 0 |
Segment and Geographic Information, Revenue from External Customers by Products Line (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Revenue [Abstract] | |||
Revenue | $ 1,380,264 | $ 1,332,001 | $ 1,322,934 |
Flavors, Extracts & Flavor Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 455,818 | 399,331 | 378,967 |
Natural Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 255,772 | 243,161 | 214,027 |
Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | 22,739 | 85,354 | 86,399 |
Yogurt Fruit Preparations [Member] | |||
Revenue [Abstract] | |||
Revenue | 5,098 | 14,189 | 20,963 |
Food & Pharmaceutical Colors [Member] | |||
Revenue [Abstract] | |||
Revenue | 385,069 | 346,269 | 340,327 |
Personal Care [Member] | |||
Revenue [Abstract] | |||
Revenue | 158,237 | 141,331 | 159,640 |
Inks [Member] | |||
Revenue [Abstract] | |||
Revenue | 1,964 | 13,418 | 35,192 |
Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 135,348 | 121,227 | 118,248 |
Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue | 717,688 | 724,483 | 682,705 |
Flavors & Extracts [Member] | Flavors, Extracts & Flavor Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 455,818 | 399,331 | 378,967 |
Flavors & Extracts [Member] | Natural Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 255,772 | 243,161 | 214,027 |
Flavors & Extracts [Member] | Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | 22,739 | 85,354 | 86,399 |
Flavors & Extracts [Member] | Yogurt Fruit Preparations [Member] | |||
Revenue [Abstract] | |||
Revenue | 5,098 | 14,189 | 20,963 |
Flavors & Extracts [Member] | Food & Pharmaceutical Colors [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Flavors & Extracts [Member] | Personal Care [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Flavors & Extracts [Member] | Inks [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Flavors & Extracts [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 527,626 | 486,536 | 522,051 |
Color [Member] | Flavors, Extracts & Flavor Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Color [Member] | Natural Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Color [Member] | Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Color [Member] | Yogurt Fruit Preparations [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Color [Member] | Food & Pharmaceutical Colors [Member] | |||
Revenue [Abstract] | |||
Revenue | 385,069 | 346,269 | 340,327 |
Color [Member] | Personal Care [Member] | |||
Revenue [Abstract] | |||
Revenue | 158,237 | 141,331 | 159,640 |
Color [Member] | Inks [Member] | |||
Revenue [Abstract] | |||
Revenue | 1,964 | 13,418 | 35,192 |
Color [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 134,950 | 120,982 | 118,178 |
Asia Pacific [Member] | Flavors, Extracts & Flavor Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | Natural Ingredients [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | Fragrances [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | Yogurt Fruit Preparations [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | Food & Pharmaceutical Colors [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | Personal Care [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | Inks [Member] | |||
Revenue [Abstract] | |||
Revenue | 0 | 0 | 0 |
Asia Pacific [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | 135,348 | 121,227 | 118,248 |
Intersegment Revenue [Member] | |||
Revenue [Abstract] | |||
Revenue | 39,781 | 32,279 | 30,829 |
Intersegment Revenue [Member] | Flavors & Extracts [Member] | |||
Revenue [Abstract] | |||
Revenue | 21,739 | 17,552 | 17,651 |
Intersegment Revenue [Member] | Color [Member] | |||
Revenue [Abstract] | |||
Revenue | 17,644 | 14,482 | 13,108 |
Intersegment Revenue [Member] | Asia Pacific [Member] | |||
Revenue [Abstract] | |||
Revenue | $ 398 | $ 245 | $ 70 |
Fair Value Measurements (Details) - Level 2 [Member] - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Investments, Fair Value Disclosure [Abstract] | ||
Forward exchange contract, liability | $ 0.1 | $ 0.5 |
Carrying Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | 503.5 | 526.9 |
Fair Value [Member] | ||
Investments, Fair Value Disclosure [Abstract] | ||
Long term debt | $ 520.0 | $ 556.1 |
Divestitures (Details) $ in Thousands |
12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 01, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
ProductLine
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
||||||||||||
Divestiture Transactions [Abstract] | |||||||||||||||
Number of product lines divested or to be divested | ProductLine | 3 | ||||||||||||||
Proceeds from divestiture of businesses | $ 37,790 | $ 12,595 | $ 0 | ||||||||||||
Assets held for sale [Abstract] | |||||||||||||||
Assets held for sale | 0 | 52,760 | |||||||||||||
Liabilities held for sale [Abstract] | |||||||||||||||
Liabilities held for sale | 0 | 17,339 | |||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Non-cash impairment charges | 100 | 1,800 | 9,800 | ||||||||||||
Divestiture and other related costs | 14,138 | 12,155 | 45,880 | ||||||||||||
Yogurt Fruit Preparations [Member] | |||||||||||||||
Divestiture Transactions [Abstract] | |||||||||||||||
Proceeds from divestiture of businesses | 1,000 | 1,000 | |||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Divestiture and other related costs | (83) | 4,613 | 10,567 | ||||||||||||
Inks and Fragrances [Member] | |||||||||||||||
Assets held for sale [Abstract] | |||||||||||||||
Trade accounts receivable, less allowance for losses of $456 | 20,722 | ||||||||||||||
Inventories | 25,045 | ||||||||||||||
Prepaid expenses and other current assets | 1,843 | ||||||||||||||
Property, Plant, and Equipment, net | 3,434 | ||||||||||||||
Intangible assets | 1,716 | ||||||||||||||
Assets held for sale | 52,760 | ||||||||||||||
Liabilities held for sale [Abstract] | |||||||||||||||
Trade accounts payable | 13,967 | ||||||||||||||
Accrued salaries, wages and withholdings from employees | 1,739 | ||||||||||||||
Other accrued expenses | 1,633 | ||||||||||||||
Liabilities held for sale | 17,339 | ||||||||||||||
Trade accounts receivable, allowance for losses | 456 | ||||||||||||||
Fragrances [Member] | |||||||||||||||
Divestiture Transactions [Abstract] | |||||||||||||||
Proceeds from divestiture of businesses | $ 36,300 | ||||||||||||||
Non-cash loss on disposal of business | 11,300 | ||||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Divestiture and other related costs | 13,911 | 5,161 | 18,509 | ||||||||||||
Inks [Member] | |||||||||||||||
Divestiture Transactions [Abstract] | |||||||||||||||
Proceeds from divestiture of businesses | 500 | 11,600 | |||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Divestiture and other related costs | (288) | 992 | 15,875 | ||||||||||||
Corporate & Other [Member] | |||||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Divestiture and other related costs | 598 | 1,389 | 929 | ||||||||||||
Selling, General and Administrative Expenses [Member] | |||||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Non-cash impairment charges | 62 | 12,719 | 34,608 | ||||||||||||
Reclassification of foreign currency translation and related items | 10,203 | (8,625) | |||||||||||||
Other costs | 3,787 | [1] | 6,266 | [2] | 705 | [3] | |||||||||
Expenses recorded related to environmental obligations | 300 | 800 | |||||||||||||
Selling, General and Administrative Expenses [Member] | Yogurt Fruit Preparations [Member] | |||||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Non-cash impairment charges | (1,000) | 2,597 | 0 | ||||||||||||
Reclassification of foreign currency translation and related items | 0 | 0 | |||||||||||||
Other costs | 917 | [1] | 337 | [2] | 0 | [3] | |||||||||
Selling, General and Administrative Expenses [Member] | Fragrances [Member] | |||||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Non-cash impairment charges | 1,062 | 2,055 | 18,204 | ||||||||||||
Reclassification of foreign currency translation and related items | 10,201 | 0 | |||||||||||||
Other costs | 2,553 | [1] | 3,029 | [2] | 305 | [3] | |||||||||
Selling, General and Administrative Expenses [Member] | Inks [Member] | |||||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Non-cash impairment charges | 0 | 8,928 | 15,849 | ||||||||||||
Reclassification of foreign currency translation and related items | 2 | (8,625) | |||||||||||||
Other costs | (281) | [1] | 892 | [2] | 26 | [3] | |||||||||
Selling, General and Administrative Expenses [Member] | Corporate & Other [Member] | |||||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Non-cash impairment charges | 0 | (861) | 555 | ||||||||||||
Reclassification of foreign currency translation and related items | 0 | 0 | |||||||||||||
Other costs | 598 | [1] | 2,008 | [2] | 374 | [3] | |||||||||
Cost of Products Sold [Member] | |||||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Non-cash impairment charges | 86 | 1,795 | 9,767 | ||||||||||||
Other costs | [4] | 800 | |||||||||||||
Cost of Products Sold [Member] | Yogurt Fruit Preparations [Member] | |||||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Non-cash impairment charges | 0 | 1,679 | 9,767 | ||||||||||||
Other costs | [4] | 800 | |||||||||||||
Cost of Products Sold [Member] | Fragrances [Member] | |||||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Non-cash impairment charges | 95 | 77 | 0 | ||||||||||||
Other costs | [4] | 0 | |||||||||||||
Cost of Products Sold [Member] | Inks [Member] | |||||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Non-cash impairment charges | (9) | (203) | 0 | ||||||||||||
Other costs | [4] | 0 | |||||||||||||
Cost of Products Sold [Member] | Corporate & Other [Member] | |||||||||||||||
Divestiture & other related costs [Abstract] | |||||||||||||||
Non-cash impairment charges | $ 0 | $ 242 | 0 | ||||||||||||
Other costs | [4] | $ 0 | |||||||||||||
|
Operational Improvement Plan (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | $ 3,339 | |||||
Accrued liabilities | $ 800 | 2,200 | ||||
Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | (1,895) | 3,304 | ||||
Cost of Products Sold [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 35 | |||||
Employee Separation Costs [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 2,690 | |||||
Employee Separation Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | (482) | 2,690 | ||||
Employee Separation Costs [Member] | Cost of Products Sold [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 0 | |||||
Other Income [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [1] | (3,624) | ||||
Other Costs [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | 649 | ||||
Other Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | 2,211 | 614 | |||
Other Costs [Member] | Cost of Products Sold [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | 35 | ||||
Flavors & Extracts [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 352 | |||||
Flavors & Extracts [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | (123) | |||||
Flavors & Extracts [Member] | Employee Separation Costs [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 352 | |||||
Flavors & Extracts [Member] | Employee Separation Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | (123) | |||||
Flavors & Extracts [Member] | Other Income [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [1] | 0 | ||||
Flavors & Extracts [Member] | Other Costs [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | 0 | ||||
Flavors & Extracts [Member] | Other Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | 0 | ||||
Color [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 2,389 | |||||
Color [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | (1,425) | |||||
Color [Member] | Employee Separation Costs [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 1,749 | |||||
Color [Member] | Employee Separation Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | (8) | |||||
Color [Member] | Other Income [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [1] | (3,624) | ||||
Color [Member] | Other Costs [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | 640 | ||||
Color [Member] | Other Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | 2,207 | ||||
Asia Pacific [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 598 | |||||
Asia Pacific [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | (347) | |||||
Asia Pacific [Member] | Employee Separation Costs [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | 589 | |||||
Asia Pacific [Member] | Employee Separation Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | (351) | |||||
Asia Pacific [Member] | Other Income [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [1] | 0 | ||||
Asia Pacific [Member] | Other Costs [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | $ 9 | ||||
Asia Pacific [Member] | Other Costs [Member] | Selling & Administrative Expenses [Member] | ||||||
Restructuring Costs [Abstract] | ||||||
Operational Improvement Plan costs | [2] | $ 4 | ||||
|
Subsequent Event (Details) - Subsequent Event [Member] |
Jan. 21, 2022
$ / shares
|
---|---|
Subsequent Events [Abstract] | |
Dividend declared date | Jan. 21, 2022 |
Dividend payable (in dollars per share) | $ 0.41 |
Dividend payable date | Mar. 01, 2022 |
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|||
Inks and Fragrances [Member] | |||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Allowance for credit loss | $ 456 | $ 2,350 | |||
Allowance for Trade Receivables [Member] | |||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Balance at Beginning of Period | 3,435 | $ 4,563 | 5,976 | ||
Additions Charged to Costs and Expenses | 1,631 | 565 | 2,469 | ||
Additions Recorded During Acquisitions | 0 | 0 | 0 | ||
Deductions | [1] | 189 | 1,693 | 3,882 | |
Balance at End of Period | $ 4,877 | $ 3,435 | $ 4,563 | ||
|
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