Restructuring and Other Charges, Net

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges, Net

RESTRUCTURING AND OTHER CHARGES, NETRestructuring and other charges primarily consist of separation costs for employees including severance, outplacement and other employee benefit costs ("Severance"), charges related to the write-down of fixed assets of plants to be closed ("Fixed asset write-down") and all other related restructuring ("Other") costs. All restructuring and other charges, net are separately stated on the Consolidated Statement of Comprehensive Income (Loss).

Frutarom Integration Initiative

In connection with the acquisition of Frutarom, the Company began to execute an integration plan that, among other initiatives, seeks to optimize its manufacturing network. As part of the Frutarom Integration Initiative, the Company expects to close approximately 35 manufacturing sites with most of the closures targeted to occur by the end of 2021. During 2019, the Company announced the closure of ten sites, of which six sites were in Europe, Africa and Middle East, two sites in Latin America, and one site in each North America and Greater Asia regions. During the six months ended June 30, 2020, the Company announced the closure of five sites, of which two sites are in Europe, Africa and Middle East, one site in Latin America, and two sites in North America. Since the inception of the initiative through June 30, 2020, the Company has closed fifteen sites and expensed total costs of $17.2 million. Total costs for the program are expected to be approximately $40 million to $50 million including cash and non-cash items.

2019 Severance Program

During the year ended December 31, 2019, the Company incurred severance charges related to approximately 190 headcount reductions, excluding those previously mentioned under the Frutarom Integration Initiative. The headcount reductions primarily related to the Scent business unit with additional amounts related to headcount reductions in all business units associated with the establishment of a new shared service center in Europe. Since the inception of the program, the Company has expensed $21.3 million to date. Total costs for the program are expected to be approximately $25 million.

2017 Productivity Program

In connection with the 2017 Productivity Program, the Company recorded $24.5 million of charges related to personnel costs and lease termination costs since the program's inception to date. Total costs for the program are expected to be approximately $25 million.

Changes in Restructuring Liabilities

Changes in restructuring liabilities by program during the six months ended June 30, 2020 were as follows:

(DOLLARS IN THOUSANDS)	Balance at December 31, 2019		Additional Charges (Reversals), Net		Non-Cash Charges		Cash Payments		Balance at June 30, 2020
2017 Productivity Program
Severance	$	1,106	$	—	$	—	$	(217)	$	889
Other(1)	88		—		—		—		88
Frutarom Integration Initiative
Severance	4,038		1,737		—		(2,390)		3,385
Fixed asset write down	—		3,766		(3,766)		—		—
Other(1)	2,485		1,299		(28)		(325)		3,431
2019 Severance Plan
Severance	12,897		—		—		(3,413)		9,484
Other(1)	471		—		—		—		471
Total restructuring	$	21,085	$	6,802	$	(3,794)	$	(6,345)	$	17,748

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(1)Other includes supplier contract termination costs, consulting and advisory fees.

Charges by Segment

The following table summarizes the total amount of costs incurred in connection with these restructuring programs by segment:

	Three Months Ended June 30,				Six Months Ended June 30,
(DOLLARS IN THOUSANDS)	2020		2019		2020		2019
Taste	$	1,884	$	2,525	$	6,802	$	5,078
Scent	—		—		—		10,900
Shared IT & Corporate Costs	—		—		—		2,721
Total Restructuring and other charges, net	$	1,884	$	2,525	$	6,802	$	18,699