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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
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For the Fiscal Year Ended December 31, 2010 | |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
WISCONSIN | 39-0561070 | |
(State of Incorporation) | (IRS Employer Identification Number) |
TITLE OF EACH CLASS
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Common Stock, $0.10 par value |
ON WHICH REGISTERED
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New York Stock Exchange, Inc. |
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E-
1
E-
2
E-
3
E-
4
flavors, flavor enhancers and bionutrients;
fragrances and aroma chemicals;
dehydrated vegetables and other food ingredients;
natural and synthetic food and beverage colors;
cosmetic and pharmaceutical colors and additives; and
technical colors, inkjet colors and inks, and specialty dyes and pigments.
Table of Contents
Table of Contents
Sensient Food Colors (food and beverage colors);
Sensient Pharmaceutical Technologies (pharmaceutical colors and coatings);
Sensient Paper Colors (paper dyes and colorants);
Sensient Cosmetic Technologies (cosmetic colors and ingredients and systems); and
Sensient Technical Colors (including paper colors; industrial colors for plastics,
leather, wood stains, antifreeze and other uses; inkjet colors and inks; specialty
inks; and display imaging).
Table of Contents
Flavors and Fragrances.
Competition to supply the flavors and fragrances industries has
taken on an increasingly global nature. Most of the Companys customers do not buy their
entire flavor and/or fragrance 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 and fragrances 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 in 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 Companys
competitors specializing in either synthetic dyes and pigments or natural colors. 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 inkjet inks is based principally upon price, quality
and service, as well as product development and technical capabilities. The Company
competes against a number of large and small suppliers of inkjet inks.
Table of Contents
Asia Pacific and China.
Because of the broad array of products available to customers of
the Asia Pacific Group and the China Group, the Company believes that it is able to offer a
wider product base than many of its competitors. Competition is based upon reliability in
product quality, service and price as well as technical support available to customers.
Table of Contents
Table of Contents
Table of Contents
LOCATION
GROUP/DIVISION
FUNCTION
Color
Sales and R&D/inkjet products and specialty inks
Flavors & Fragrances
Flavors & Fragrances
Production and R&D/dehydrated flavors
Flavors & Fragrances
Production, R&D and sales/dehydrated flavors
Flavors & Fragrances
Production/ingredients and flavors
Flavors & Fragrances
Production, sales and R&D/flavors, group headquarters/flavors & fragrances
Flavors & Fragrances
Production/flavors and flavor enhancers
Color
Production, R&D, sales/food, cosmetic, pharmaceutical and technical colors, group headquarters/colors
Color
Production, R&D and sales/cosmetic and pharmaceutical colors and ingredients
Table of Contents
Flavors & Fragrances
Production/flavor enhancers and extracts
Headquarters
Administrative offices
Color
Sales/food colors
Asia Pacific
Production, R&D and sales/colors and flavors, group headquarters/Asia Pacific
Flavors & Fragrances
Sales/flavors
Flavors & Fragrances
Production and sales/natural health ingredients
Flavors & Fragrances
Production, R&D and sales/ingredients and flavors
Color
Production, R&D and sales/food colors and flavors
Flavors & Fragrances
Production/flavor enhancers and extracts
Flavors & Fragrances
Production/ingredients and flavors
Flavors & Fragrances
Production/ingredients and flavors
Color
Production, R&D and sales/food colors
Flavors & Fragrances
R&D and sales/flavors
Flavors & Fragrances
Sales/dehydrated flavors
Flavors & Fragrances
Production/ingredients and flavors
China
Sales/colors and flavors
China
Production, R&D and sales/flavors and food and pharmaceutical colors, group headquarters/China
China
Sales/colors and flavors
Flavors & Fragrances
Production/dehydrated flavors
China
R&D and sales/colors and flavors
Flavors & Fragrances
Production and sales/flavors
Color
Sales/food colors
Flavors & Fragrances
Sales/flavors
Table of Contents
Flavors & Fragrances
Sales/flavors
Flavors & Fragrances
Production/dehydrated flavors
Color
Sales/food colors
Color
Production, R&D and sales/cosmetic colors and ingredients
Flavors & Fragrances
Production, R&D and sales/flavor enhancers and extracts
Flavors & Fragrances
Production, R&D and sales/flavors, flavored products and essential oils
Color
Production, R&D and sales/food colors
Color
Production, R&D and sales/specialty dyes and chemicals
Flavors & Fragrances
Sales/fragrances
Color
Production/food colors
Asia Pacific
R&D and sales/colors and flavors
Asia Pacific
R&D and sales/fragrances and cosmetic colors
Flavors & Fragrances
Production, R&D and sales/flavors
Color
Production, R&D and sales/natural colors
Asia Pacific
Production/flavors and colors
Asia Pacific
R&D and sales/flavors and colors
Asia Pacific
Sales/flavors, colors and specialty chemicals
Flavors & Fragrances
Production and sales/flavor enhancers and extracts
Color
Production, R&D and sales/food and cosmetic colors
Color
Production/inkjet inks
Flavors & Fragrances
Production, R&D, distribution and sales/ingredients, flavors and fragrances
Flavors & Fragrances
Production/dehydrated flavors
Flavors & Fragrances
Sales/food colors and dehydrated and other flavors
Table of Contents
Asia Pacific
Production, R&D and sales/flavors
Asia Pacific
Production, R&D and sales/flavors, fragrances, cosmetic ingredients and color blending
Color
Sales/food colors
Flavors
Sales/flavors
Flavors
Sales/flavors
Color
Sales/food colors
Asia Pacific
R&D and sales/food colors and flavors
Color
Production, R&D and sales/food colors
Flavors & Fragrances
Sales/flavors
Flavors & Fragrances
Production, R&D and sales/fragrances and aromatic chemicals
Flavors & Fragrances
Sales/flavors
Color
Production, R&D and sales/technical colors
Asia Pacific
R&D and sales/colors and flavors
Flavors & Fragrances
Sales/flavors
Flavors & Fragrances
Production, R&D and sales/flavors and flavor enhancers
Color
Production, R&D and sales/food colors and ink jet inks
Flavors & Fragrances
Production, R&D and sales/flavors and extracts
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Executive Officers of the Registrant
Name
Age
Position
69
Chairman and Chief Executive Officer
41
Vice President and Treasurer
37
Vice President, Human Resources
64
Senior Vice President, General Counsel and Secretary
54
Vice President, Marketing & Technology
63
Senior Vice President and Chief Financial Officer
47
Vice President, Controller & Chief Accounting Officer
44
Assistant Controller
36
President, Color Group
58
President, Flavor & Fragrances Group
58
President and Chief Operating Officer
46
Vice President, Administration
54
President, Asia Pacific Group
Table of Contents
Item 5.
Market for the Registrants Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities
Table of Contents
Table of Contents
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
Table of Contents
1 and 2:
Financial Statements and Financial Statement Schedule. See below for
List of Financial Statements and Financial Statement Schedule.
3:
See Exhibit Index following this report.
1. Financial Statements
2010 Annual Report
To Shareholders
47-48
28
27
30-31
29
32-45
2. Financial Statement Schedule
Form 10-K
23
24
Table of Contents
Sensient Technologies Corporation
Milwaukee, Wisconsin
February 25, 2011
Table of Contents
Valuation and Qualifying Accounts
(in thousands); Years Ended December 31, 2010, 2009, 2008
Additions
Additions
Valuation Accounts Deducted in the
Balance at
Charged to
Recorded
Balance
Balance Sheet From the Assets To
Beginning of
Costs and
During
Deductions
At End of
Which They Apply
Period
Expenses
Acquisitions
(A)
Period
$4,242
$725
$0
$672
$4,295
$4,295
$1,264
$0
$2,132
$3,427
$3,427
$1,326
$0
$754
$3,999
Table of Contents
John L. Hammond
Senior Vice President, General Counsel and Secretary
/s/ James A.D. Croft
James A.D. Croft
Director
/s/ William V. Hickey
William V. Hickey
Director
/s/ Peter M. Salmon
Peter M. Salmon
Director
/s/ Elaine R. Wedral
Elaine R. Wedral
Director
/s/ Essie Whitelaw
Essie Whitelaw
Director
Table of Contents
Exhibit
Incorporated by
Filed
Number
Description
Reference From
Herewith
Amended and Restated Articles of
Incorporation adopted January 21, 1999 as
amended as of April 21, 2005
Exhibit 3.1 to
Quarterly Report on
Form 10-Q for the
quarter ended March
31, 2005
(Commission File
No.1-7626)
Amended and Restated By-Laws of Sensient
Technologies Corporation as amended as
of December 9, 2010
Exhibit 3.2 to
Current Report on
Form 8-K dated
December 9, 2010
(Commission File
No. 1-7626)
Note Purchase Agreement dated as of June
27, 2006
Exhibit 10.1 to
Current Report on
Form 8-K dated June
27, 2006
(Commission File
No. 1-7626)
Material Contracts
Management Contracts or
Compensatory
Plans
Amended and Restated Executive
Employment Contract dated August 17,
2007 between Registrant and Kenneth P.
Manning (superseded)
Exhibit 10.1 to
Current Report on
Form 8-K dated
August 17, 2007
(Commission File
No. 1-7626)
Amended and Restated Executive
Employment Contract dated as of October
27, 2008 between the Company and Kenneth
P. Manning (superseded)
Exhibit 10.2 to
Quarterly Report on
Form 10-Q for the
quarter ended
September 30, 2008
(Commission File
No. 1-7626)
Amended and Restated Executive
Employment Contract dated as of February
5, 2009 between the Company and Kenneth
P. Manning (superseded)
Exhibit 10.1 to
Current Report on
Form 8-K dated
February 5, 2009
(Commission File
No. 1-7626)
Amended and Restated Executive
Employment Contract dated as of July 22, 2010 between the Company and Kenneth
P. Manning
Exhibit 10.1 to
Current Report on
Form 8-K dated
July 22, 2010
(Commission File No. 1-7626)
Form of Amended and Restated Change of
Control Employment and Severance
Agreement for Executive Officers
(Executive Change in Control
Agreement)
Exhibit 10.1 to
Quarterly Report on
Form 10-Q for the
quarter ended
September 30, 2008
(Commission File
No. 1-7626)
Form of Amendment to Executive
Change in Control Agreement
Exhibit 10.1 to
Current Report on
Form 8-K dated
March 23, 2010
(Commission File No. 1-7626)
Sensient Technologies Corporation 2002
Non-Employee Directors Stock Plan
Appendix C to
Definitive Proxy
Statement filed on
Schedule 14A on
March 15, 2004
(Commission File
No. 1-7626)
Universal Foods Corporation 1994
Employee Stock Plan, as amended
September 10, 1998
Exhibit 10.2(f) to
Annual Report on
Form 10-K for the
fiscal year ended
September 30, 1998
(Commission File
No. 1-7626)
Table of Contents
EXHIBIT INDEX
2010 ANNUAL REPORT ON FORM 10-K
Exhibit
Incorporated by
Filed
Number
Description
Reference From
Herewith
Amendment of 1994 Employee
Stock Plan dated as of November
6, 2000
Exhibit 10.1(e)(1) to Annual Report on Form
10-K for the fiscal year ended December 31,
2000 (Commission File No. 1-7626)
Universal Foods Corporation 1998
Stock Option Plan, as amended
September 10, 1998
Exhibit 10.2(h) to Annual Report on Form 10-K
for the fiscal year ended September 30, 1998
(Commission File No. 1-7626)
Amendment of 1998 Stock Option
Plan dated as of November 6,
2000
Exhibit 10.1(f)(1) to Annual Report on Form
10-K for
the fiscal year ended December 31, 2000
(Commission File No. 1-7626)
1999 Non-Employee Director Stock
Option Plan
Appendix A to Definitive Proxy Statement filed
on Schedule 14A on December 17, 1999.
(Commission File No. 1-7626)
Amendment of 1999 Non-Employee
Director Stock Option Plan
dated as of November 6, 2000
Exhibit 10.1(g)(1) to Annual Report of Form
10-K for the fiscal year ended December 31,
2000 (Commission File No. 1-7626)
Sensient Technologies
Corporation 2002 Stock Option
Plan
Appendix B to Definitive Proxy Statement
filed on Schedule 14A on March 22, 2002
Amendment of No. 1 to the
Sensient Technologies
Corporation 2002 Stock Option
Plan
Exhibit 10.11 to Quarterly Report on Form
10-Q for the quarter ended September 30, 2008
(Commission File No. 1-7626)
Form of Restricted Stock
Agreement thereunder
Exhibit 10.1 to Current Report on Form 8-K
dated December 1, 2005 (Commission File No.
1-7626)
Sensient Technologies
Corporation 2007 Restricted
Stock Plan
Appendix B to the Proxy Statement for the
Annual Meeting of Shareholders of the Company
dated March 15, 2007
Amendment No. 1 to the Sensient
Technologies Corporation 2007
Restricted Stock Plan
Exhibit 10.12 to Quarterly Report on Form
10-Q for the quarter ended September 30, 2008
(Commission File No. 1-7626)
Directors Deferred Compensation
Plan, as amended and restated
effective as of January 1, 2005
Exhibit 10.3 to Quarterly Report on Form
10-Q for the quarter ended September 30, 2008
(Commission File No. 1-7626)
Directors Unfunded Retirement
Plan, Amended and Restated as
of January 1, 2009
Exhibit 10.1(i)(l) to Annual Report of Form
10-K for the fiscal year ended December 31,
2009 (Commission File No. 1-7626)
Management Income Deferral
Plan, as amended and restated
effective as of December 31,
2004 (frozen portion)
Exhibit 10.5(a) to Quarterly Report on Form
10-Q for the quarter ended September 30, 2008
(Commission File No. 1-7626)
Management Income Deferral
Plan, as amended and restated
effective as of January 1, 2005
(non-frozen portion)
Exhibit 10.5(b) to Quarterly Report on Form
10-Q for the quarter ended September 30, 2008
(Commission File No. 1-7626)
Table of Contents
EXHIBIT INDEX
2010 ANNUAL REPORT ON FORM 10-K
Exhibit
Incorporated by
Filed
Number
Description
Reference From
Herewith
Executive Income Deferral Plan, as
amended and restated effective as of
December 31, 2004 (frozen portion)
Exhibit 10.4(a) to
Quarterly Report on
Form 10-Q the
quarter ended
September 30, 2008
(Commission File
No. 1-7626)
Executive Income Deferral Plan, as
Amended and restated effective as of
January 1, 2005 (non-frozen portion)
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 Registrant 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 Registrant 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)
Amended and Restated Sensient
Technologies Corporation Rabbi Trust
C Agreement dated November 30, 2009
between Registrant 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)
Incentive Compensation Plan for Elected
Corporate Officers
Exhibit 10.10 to
Quarterly Report on
Form 10Q for the
quarter ended
September 30, 2008
(Commission File
No. 1-7626)
Management Incentive Plan for Group
Presidents
Exhibit 10.9 to
Quarterly Report on
Form 10-Q for the
quarter ended
September 30, 2008
(Commission File
No. 1-7626)
Management Incentive Plan for Corporate
Management
Exhibit 10.7 to
Quarterly Report on
Form 10-Q for the
quarter ended
September 30, 2008
(Commission File
No. 1-7626)
Management Incentive Plan for
Group/Division Management
Exhibit 10.8 to
Quarterly Report on
Form 10-Q for the
quarter ended
September 30, 2008
(Commission File
No. 1-7626)
Form of Agreement for Executive
Officers (Supplemental Executive
Retirement Plan A), as amended and
restated effective as of January 1,
2005
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 (Effective as of January 1, 2005)
X
Form of Amendment No. 2 to the Sensient Technologies Corporation Amended and Restated
Supplemental Executive Retirement Plan A (Effective as of January 1, 2005)
Exhibit 10.1 to
Current Report on form 8-K dated April 22, 2010 (Commission File
No. 1-7626)
Form of Agreement for Executive Officers
(Supplemental Executive Retirement Plan
B), as amended and restated effective
as of January 1, 2005
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 (Effective as of January 1, 2005)
X
Form of Amendment No. 2 to the Sensient Technologies Corporation Amended and Restated Supplemental
Executive Retirement Plan B (Effective as of January 1, 2005)
Exhibit 10.2 to
Current Report on form 8-K dated April 22, 2010 (Commission File
No. 1-7626)
Table of Contents
EXHIBIT INDEX
2010 ANNUAL REPORT ON FORM 10-K
Exhibit
Incorporated by
Filed
Number
Description
Reference From
Herewith
Supplemental Benefit Plan, as amended and
restated effective as of December 31, 2004
(frozen portion)
Exhibit 10.6(a) to Quarterly Report on Form
10-Q for the quarter ended September 30, 2008
(Commission File No. 1-7626)
Supplemental Benefit Plan, as amended and
restated effective as of January 1, 2005
(non-frozen portion)
Exhibit 10.6(b) to Quarterly Report on Form
10-Q for the quarter ended September 30, 2008
(Commission File No. 1-7626)
Credit Agreement dated as of June 15, 2007
Exhibit 10.1 to Current Report on Form 8-K
dated June 15, 2007 (Commission File No.
1-7626)
Credit Agreement dated as of October 7, 2008
Exhibit 10.1 to Quarterly Report on Form 8-K
dated October 7, 2008 (Commission File No.
1-7626)
Annual Report to Shareholders
for the year ended December 31, 2010
X
Code of Ethics for Senior Financial Officers
Exhibit 14 to Annual Report on Form 10-K for the
fiscal year ended December 31, 2003
(Commission File
No. 1-7626)
Subsidiaries of the Registrant
X
Consent of Ernst & Young LLP
X
Certifications of Sensients Chairman 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 Sensients Chairman and
Chief Executive Officer and Senior Vice
President and Chief Financial Officer,
pursuant to 18 United States Code § 1350
X
SENSIENT TECHNOLOGIES CORPORATION | ||||
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SENSIENT TECHNOLOGIES CORPORATION | ||||
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Years ended December 31, | 2010 | 2009 | % Change | |||||||||
Results of operations
|
||||||||||||
Revenue
|
$ | 1,328,180 | $ | 1,201,412 | 11 | % | ||||||
Operating Income
|
174,577 | 146,963 | 19 | % | ||||||||
Net Earnings
|
107,144 | 86,561 | 24 | % | ||||||||
|
||||||||||||
Per common share
|
||||||||||||
Net Earnings:
|
||||||||||||
Basic
|
$ | 2.18 | $ | 1.79 | 22 | % | ||||||
Diluted
|
2.17 | 1.78 | 22 | % | ||||||||
Dividends
|
0.79 | 0.76 | 4 | % | ||||||||
Book Value
|
19.70 | 18.49 | 7 | % | ||||||||
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||||||||||||
Other information
|
||||||||||||
Capital Expenditures
|
$ | 55,823 | $ | 47,716 | ||||||||
Depreciation and Amortization
|
$ | 43,423 | $ | 42,183 | ||||||||
Total Debt
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$ | 349,810 | $ | 428,033 | ||||||||
Number of Employees
|
3,618 | 3,570 | ||||||||||
Number of Shareholders of Record
|
2,977 | 3,082 | ||||||||||
Average Common Shares
Outstanding:
|
||||||||||||
Basic
|
49,138 | 48,379 | ||||||||||
Diluted
|
49,424 | 48,641 |
1
2
Sensients solid financial position, disciplined operations and leading technology-based products all contributed to our success in 2010. We have continued to stay the course in a challenging economic environment. |
3
| Complete product line of proprietary flavors and ingredient systems | ||
| Industry-leading extraction and reaction flavor technologies | ||
| Technical capabilities for product development, extension and customization | ||
| Extensive international sales and technical resources |
4
| A broad product mix serving global markets and multiple regulatory environments | ||
| Advanced natural color technologies in North America and Europe | ||
| Expanding technical and manufacturing capabilities in natural colors, pharmaceutical colors and coatings and commercial and desktop inks | ||
| Leading pigment dispersion, emulsion and coating technology expertise |
5
6
9
10
13
14
16
17
19
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Managements Discussion & Analysis of Operations & Financial Condition | |
27
|
Consolidated Statements of Earnings | |
28
|
Consolidated Balance Sheets | |
29
|
Consolidated Statements of Cash Flows | |
30
|
Consolidated Statements of Shareholders Equity | |
32
|
Notes to Consolidated Financial Statements | |
46
|
Managements Report on Internal Control Over Financial Reporting | |
47
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Report of Independent Registered Public Accounting Firm | |
48
|
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting | |
49
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Quarterly Data | |
49
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Common Stock Prices and Dividends | |
49
|
Company Stock Performance | |
50
|
Five Year Review | |
52
|
Directors & Officers | |
Inside
back cover |
Investor Information |
18
Managements Discussion & Analysis
of Operations & Financial Condition |
Sensient Technologies Corporation Annual Report 2010 |
2010 | 2009 | |||||||||||||||
(in thousands | Diluted | Diluted | ||||||||||||||
except per | Operating | Earnings | Operating | Earnings | ||||||||||||
share amounts) | Income | per Share | Income | per Share | ||||||||||||
As reported
|
$ | 174,577 | $ | 2.17 | $ | 146,963 | $ | 1.78 | ||||||||
Settlement charges (gain)
|
(1,458 | ) | (0.02 | ) | 11,297 | 0.14 | ||||||||||
|
$ | 173,119 | $ | 2.15 | $ | 158,260 | $ | 1.92 | ||||||||
19
2010 | 2009 | |||||||
Rate excluding discrete
items
|
32.9 | % | 32.2 | % | ||||
Discrete items
|
(2.4 | %) | (2.5 | %) | ||||
Reported effective tax
rate
|
30.5 | % | 29.7 | % | ||||
20
2009 | 2008 | |||||||
Rate excluding discrete
items
|
32.2 | % | 32.4 | % | ||||
Discrete items
|
(2.5 | %) | (2.7 | %) | ||||
Reported effective tax rate
|
29.7 | % | 29.7 | % | ||||
21
22
23
24
25
PAYMENTS DUE BY PERIOD | ||||||||||||||||||||
(in thousands) | Total | 1 year | 2-3 years | 4-5 years | > 5 years | |||||||||||||||
Long-term debt
|
$ | 324,360 | $ | 102,617 | $ | 119,651 | $ | 24,351 | $ | 77,741 | ||||||||||
Interest payments on long-term debt
|
53,975 | 15,851 | 23,941 | 12,272 | 1,911 | |||||||||||||||
Operating lease obligations
|
19,333 | 6,874 | 7,030 | 2,282 | 3,147 | |||||||||||||||
Manufacturing purchase commitments
|
106,448 | 91,564 | 14,884 | | | |||||||||||||||
Pension funding obligations
|
56,835 | 2,697 | 32,030 | 5,319 | 16,789 | |||||||||||||||
Total contractual obligations
|
$ | 560,951 | $ | 219,603 | $ | 197,536 | $ | 44,224 | $ | 99,588 | ||||||||||
26
Consolidated Statements of Earnings | Sensient Technologies Corporation Annual Report 2O1O |
(in thousands except per share amounts) Years ended December 31, | 2010 | 2009 | 2008 | |||||||||
Revenue
|
$ | 1,328,180 | $ | 1,201,412 | $ | 1,252,620 | ||||||
Cost of products sold
|
919,821 | 832,382 | 871,754 | |||||||||
Selling and administrative expenses
|
233,782 | 222,067 | 219,267 | |||||||||
Operating Income
|
174,577 | 146,963 | 161,599 | |||||||||
Interest expense
|
20,384 | 23,788 | 32,306 | |||||||||
Earnings Before Income Taxes
|
154,193 | 123,175 | 129,293 | |||||||||
Income taxes
|
47,049 | 36,614 | 38,432 | |||||||||
Net Earnings
|
$ | 107,144 | $ | 86,561 | $ | 90,861 | ||||||
Earnings per share:
|
||||||||||||
Basic
|
$ | 2.18 | $ | 1.79 | $ | 1.91 | ||||||
Diluted
|
$ | 2.17 | $ | 1.78 | $ | 1.89 | ||||||
Average common shares outstanding:
|
||||||||||||
Basic
|
49,138 | 48,379 | 47,654 | |||||||||
Diluted
|
49,424 | 48,641 | 48,131 | |||||||||
27
(in thousands except share and per share amounts) December 31, | 2010 | 2009 | ||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$ | 14,255 | $ | 12,219 | ||||
Trade accounts receivable, less allowance for losses of $3,999 and
$3,427, respectively
|
218,614 | 200,186 | ||||||
Inventories
|
392,166 | 390,011 | ||||||
Prepaid expenses and other current assets
|
34,676 | 42,668 | ||||||
Deferred income taxes
|
12,594 | 13,025 | ||||||
Total current assets
|
672,305 | 658,109 | ||||||
Other assets
|
36,093 | 38,349 | ||||||
Intangible assets at cost, less accumulated amortization of $12,281
and $11,014, respectively
|
13,219 | 13,621 | ||||||
Goodwill
|
445,115 | 455,995 | ||||||
Property, Plant and Equipment:
|
||||||||
Land
|
49,760 | 49,429 | ||||||
Buildings
|
293,605 | 293,200 | ||||||
Machinery and equipment
|
648,985 | 630,420 | ||||||
Construction in progress
|
32,797 | 20,211 | ||||||
|
1,025,147 | 993,260 | ||||||
Less accumulated depreciation
|
(592,611 | ) | (567,643 | ) | ||||
|
432,536 | 425,617 | ||||||
Total assets
|
$ | 1,599,268 | $ | 1,591,691 | ||||
|
||||||||
Liabilities and Shareholders Equity
|
||||||||
Current Liabilities:
|
||||||||
Trade accounts payable
|
$ | 95,852 | $ | 88,915 | ||||
Accrued salaries, wages and withholdings from employees
|
26,822 | 22,568 | ||||||
Other accrued expenses
|
49,819 | 64,789 | ||||||
Income taxes
|
7,120 | 692 | ||||||
Short-term borrowings
|
25,450 | 39,181 | ||||||
Current maturities of long-term debt
|
| | ||||||
Total current liabilities
|
205,063 | 216,145 | ||||||
Deferred income taxes
|
21,034 | 12,810 | ||||||
Other liabilities
|
12,279 | 14,393 | ||||||
Accrued employee and retiree benefits
|
52,747 | 50,796 | ||||||
Long-term debt
|
324,360 | 388,852 | ||||||
Shareholders Equity:
|
||||||||
Common stock, par value $0.10 a share, authorized 100,000,000
shares; issued 53,954,874 shares
|
5,396 | 5,396 | ||||||
Additional paid-in capital
|
89,027 | 85,504 | ||||||
Earnings reinvested in the business
|
991,094 | 922,963 | ||||||
Treasury stock, 4,345,712 and 5,182,710 shares, respectively, at cost
|
(87,102 | ) | (103,878 | ) | ||||
Accumulated other comprehensive loss
|
(14,630 | ) | (1,290 | ) | ||||
|
983,785 | 908,695 | ||||||
Total liabilities and shareholders equity
|
$ | 1,599,268 | $ | 1,591,691 | ||||
28
Consolidated Statements of Cash Flows | Sensient Technologies Corporation Annual Report 2010 |
(in thousands) Years ended December 31, | 2010 | 2009 | 2008 | |||||||||
Cash Flows from Operating Activities
|
||||||||||||
Net earnings
|
$ | 107,144 | $ | 86,561 | $ | 90,861 | ||||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
43,423 | 42,183 | 44,445 | |||||||||
Share-based compensation
|
5,678 | 3,860 | 3,798 | |||||||||
Loss on assets
|
1,382 | 1,819 | 1,358 | |||||||||
Deferred income taxes
|
8,685 | (3,895 | ) | 3,329 | ||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Trade accounts receivable
|
(20,229 | ) | 5,013 | (16,908 | ) | |||||||
Inventories
|
(4,191 | ) | 1,190 | (40,591 | ) | |||||||
Prepaid expenses and other assets
|
9,370 | (14,602 | ) | (672 | ) | |||||||
Accounts payable and other accrued expenses
|
(7,757 | ) | 14,058 | (2,216 | ) | |||||||
Accrued salaries, wages and withholdings from employees
|
5,053 | (1,557 | ) | 2,084 | ||||||||
Income taxes
|
2,699 | 965 | 1,939 | |||||||||
Other liabilities
|
4,468 | 2,741 | (453 | ) | ||||||||
Net cash provided by operating activities
|
155,725 | 138,336 | 86,974 | |||||||||
|
||||||||||||
Cash Flows from Investing Activities
|
||||||||||||
Acquisition of property, plant and equipment
|
(55,823 | ) | (47,716 | ) | (53,680 | ) | ||||||
Proceeds from sale of assets
|
172 | 109 | 2,064 | |||||||||
Other investing activities
|
528 | (440 | ) | 1,661 | ||||||||
Net cash used in investing activities
|
(55,123 | ) | (48,047 | ) | (49,955 | ) | ||||||
|
||||||||||||
Cash Flows from Financing Activities
|
||||||||||||
Proceeds from additional borrowings
|
139,344 | 222,553 | 112,514 | |||||||||
Debt payments
|
(211,935 | ) | (277,064 | ) | (134,135 | ) | ||||||
Dividends paid
|
(39,013 | ) | (37,042 | ) | (35,597 | ) | ||||||
Proceeds from options exercised and other equity transactions
|
14,063 | 11,185 | 18,862 | |||||||||
Net cash used in financing activities
|
(97,541 | ) | (80,368 | ) | (38,356 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents
|
(1,025 | ) | (6,200 | ) | (687 | ) | ||||||
Net increase (decrease) in cash and cash equivalents
|
2,036 | 3,721 | (2,024 | ) | ||||||||
Cash and cash equivalents at beginning of year
|
12,219 | 8,498 | 10,522 | |||||||||
Cash and cash equivalents at end of year
|
$ | 14,255 | $ | 12,219 | $ | 8,498 | ||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$ | 19,932 | $ | 26,982 | $ | 31,975 | ||||||
Income taxes
|
32,668 | 36,801 | 28,424 | |||||||||
Capitalized interest
|
810 | 840 | 1,999 | |||||||||
29
Additional | ||||||||
Common | Paid-in | |||||||
(in thousands except share and per share amounts) | Stock | Capital | ||||||
Balances at December 31, 2007
|
$ | 5,396 | $ | 75,233 | ||||
Net earnings
|
||||||||
Unrealized loss on cash flow hedges, arising during the period, net of tax of $13
|
||||||||
Reclassification adjustment for cash flow hedges included in net income, net of tax of $3
|
||||||||
Pension adjustment, net of tax of $1,473
|
||||||||
Foreign currency translation
|
||||||||
Total comprehensive income
|
||||||||
Cash dividends paid $0.74 a share
|
||||||||
Share-based compensation
|
4,989 | |||||||
Stock options exercised
|
2,511 | |||||||
Nonvested stock issued upon vesting
|
(1,688 | ) | ||||||
Benefit plans
|
173 | |||||||
Other
|
1,043 | |||||||
|
||||||||
Balances at December 31, 2008
|
5,396 | 82,261 | ||||||
Net earnings
|
||||||||
Unrealized gain on cash flow hedges, arising during the period, net of tax of $118
|
||||||||
Reclassification adjustment for cash flow hedges included in net income, net of tax of $141
|
||||||||
Pension adjustment, net of tax of $3,329
|
||||||||
Foreign currency translation
|
||||||||
Total comprehensive income
|
||||||||
Cash dividends paid $0.76 a share
|
||||||||
Share-based compensation
|
4,088 | |||||||
Stock options exercised
|
901 | |||||||
Nonvested stock issued upon vesting
|
(1,830 | ) | ||||||
Benefit plans
|
34 | |||||||
Other
|
50 | |||||||
|
||||||||
Balances at December 31, 2009
|
5,396 | 85,504 | ||||||
Net earnings
|
||||||||
Unrealized gain on cash flow hedges, arising during the period, net of tax of $90
|
||||||||
Reclassification adjustment for cash flow hedges included in net income, net of tax of $41
|
||||||||
Pension adjustment, net of tax of $504
|
||||||||
Foreign currency translation
|
||||||||
Total comprehensive income
|
||||||||
Cash dividends paid $0.79 a share
|
||||||||
Share-based compensation
|
5,746 | |||||||
Stock options exercised
|
1,365 | |||||||
Nonvested stock issued upon vesting
|
(4,609 | ) | ||||||
Benefit plans
|
184 | |||||||
Other
|
837 | |||||||
|
||||||||
Balances at December 31, 2010
|
$ | 5,396 | $ | 89,027 | ||||
30
Accumulated | ||||||||||||||||||||
Earnings | Other | Total | ||||||||||||||||||
Reinvested in | Treasury Stock | Comprehensive | Comprehensive | |||||||||||||||||
the Business | Shares | Amount | Income (Loss) | Income | ||||||||||||||||
$ | 818,180 |
|
6,603,650 | $ | (132,358 | ) | $ | 47,970 | ||||||||||||
90,861 |
|
$ | 90,861 | |||||||||||||||||
|
(91 | ) | (91 | ) | ||||||||||||||||
|
18 | 18 | ||||||||||||||||||
|
3,574 | 3,574 | ||||||||||||||||||
|
(77,759 | ) | (77,759 | ) | ||||||||||||||||
|
$ | 16,603 | ||||||||||||||||||
(35,597 | ) |
|
||||||||||||||||||
|
59,400 | (1,191 | ) | |||||||||||||||||
|
(759,241 | ) | 15,217 | |||||||||||||||||
|
(84,200 | ) | 1,688 | |||||||||||||||||
|
(21,312 | ) | 427 | |||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
873,444 |
|
5,798,297 | (116,217 | ) | (26,288 | ) | ||||||||||||||
86,561 |
|
$ | 86,561 | |||||||||||||||||
|
826 | 826 | ||||||||||||||||||
|
(987 | ) | (987 | ) | ||||||||||||||||
|
(6,136 | ) | (6,136 | ) | ||||||||||||||||
|
31,295 | 31,295 | ||||||||||||||||||
|
$ | 111,559 | ||||||||||||||||||
(37,042 | ) |
|
||||||||||||||||||
|
11,400 | (228 | ) | |||||||||||||||||
|
(502,167 | ) | 10,065 | |||||||||||||||||
|
(91,300 | ) | 1,830 | |||||||||||||||||
|
(33,520 | ) | 672 | |||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
922,963 |
|
5,182,710 | (103,878 | ) | (1,290 | ) | ||||||||||||||
107,144 |
|
$ | 107,144 | |||||||||||||||||
|
628 | 628 | ||||||||||||||||||
|
(284 | ) | (284 | ) | ||||||||||||||||
|
910 | 910 | ||||||||||||||||||
|
(14,594 | ) | (14,594 | ) | ||||||||||||||||
|
$ | 93,804 | ||||||||||||||||||
(39,013 | ) |
|
||||||||||||||||||
|
3,400 | (68 | ) | |||||||||||||||||
|
(582,174 | ) | 11,668 | |||||||||||||||||
|
(229,951 | ) | 4,609 | |||||||||||||||||
|
(28,273 | ) | 567 | |||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
$ | 991,094 |
|
4,345,712 | $ | (87,102 | ) | $ | (14,630 | ) | |||||||||||
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Years ended December 31, 2010, 2009 and 2008
Summary of Significant
Accounting Policies
Years ended December 31, 2010, 2009 and 2008
(in thousands)
2010
2009
2008
49,138
48,379
47,654
49,424
48,641
48,131
(in thousands)
2010
2009
$
(1,475
)
$
13,140
(13,324
)
(14,255
)
169
(175
)
$
(14,630
)
$
(1,290
)
Weighted Average
2010
2009
(in thousands except weighted
Amortization
Accumulated
Accumulated
average amortization years)
Years
Cost
Amortization
Cost
Amortization
20.0
$
8,840
$
(4,242
)
$
8,609
$
(3,744
)
20.0
7,222
(3,078
)
7,185
(2,690
)
17.5
9,438
(4,961
)
8,841
(4,580
)
19.1
$
25,500
$
(12,281
)
$
24,635
$
(11,014
)
Flavors &
Corporate
(in thousands)
Fragrances
Color
& Other
Consolidated
$
131,942
$
304,781
$
3,693
$
440,416
7,149
8,472
(42
)
15,579
139,091
313,253
3,651
455,995
(2,699
)
(8,638
)
457
(10,880
)
$
136,392
$
304,615
$
4,108
$
445,115
(in thousands)
2010
2009
$
110,000
$
25,876
27,689
25,000
25,000
51,753
55,377
30,000
30,000
27,689
2,143
4,286
15,000
46,625
99,750
28,871
98,912
4,092
5,149
324,360
388,852
$
324,360
$
388,852
Years ended December 31, 2010, 2009 and 2008
(dollars in thousands)
Actual
Required
26.3
%
60.0
%
1.64
3.50
$
983,785
$
625,000
5.98
2.00
(in thousands)
2010
2009
$
$
25,000
20,476
11,590
4,974
2,591
$
25,450
$
39,181
Hedging Activity
Years ended December 31, 2010, 2009 and 2008
Weighted-
Weighted-
(in thousands
Average
Average
Aggregate
except exercise
Exercise
Remaining
Intrinsic
price and life)
Options
Price
Life (Years)
Value
2,228
$
21.10
5.3
$
16,008
14
30.07
(759
)
21.09
(33
)
21.64
1,450
21.17
5.0
4,110
(502
)
19.34
(38
)
22.58
910
22.13
4.4
3,852
(582
)
22.16
328
$
22.06
3.9
$
4,807
323
$
21.95
3.8
$
4,776
Range of Exercise Price
(in thousands except
$18.00-
$19.71-
$23.00-
life and exercise price)
19.70
22.99
30.07
80
73
175
3.5
2.9
4.5
$
18.78
$
20.53
$
24.19
80
73
170
$
18.78
$
20.53
$
24.03
Grant Date
Weighted-
Aggregate
(in thousands
Average
Intrinsic
except fair value)
Shares
Fair Value
Value
451
$
24.22
$
12,764
266
23.02
(129
)
21.33
(134
)
23.93
454
24.42
10,847
235
24.78
(131
)
24.66
(134
)
24.76
424
24.44
11,142
265
34.45
(259
)
27.92
(67
)
24.79
363
$
29.20
$
13,340
(in thousands)
2010
2009
$
58,142
$
42,478
1,896
1,285
2,902
2,961
1,099
2,728
178
1,826
(2,665
)
(2,268
)
2,238
9,132
63,790
58,142
22,720
17,465
3,873
3,728
231
1,946
(2,665
)
(2,268
)
1,870
1,849
26,029
22,720
$
(37,761
)
$
(35,422
)
$
59,903
$
54,675
(in thousands)
2010
2009
$
(45,265
)
$
(41,057
)
7,504
5,635
$
(37,761
)
$
(35,422
)
(in thousands)
2010
2009
2008
$
1,896
$
1,285
$
1,267
2,902
2,961
2,922
(1,367
)
(1,103
)
(1,264
)
3,011
1,824
1,950
1,252
166
175
710
$
7,694
$
5,133
$
5,760
2010
2009
4.35
%
5.04
%
5.80
%
6.06
%
4.27
%
4.38
%
Years ended December 31, 2010, 2009 and 2008
2010
2009
5.04
%
6.83
%
6.06
%
5.96
%
4.38
%
4.28
%
(in thousands)
2010
2009
$
6,445
$
8,349
14,741
14,250
(in thousands)
2010
2009
2008
$
11,476
$
16,637
$
10,467
1,939
2,711
1,902
24,949
21,161
22,734
38,364
40,509
35,103
7,320
(2,287
)
1,399
404
40
(603
)
961
(1,648
)
2,533
8,685
(3,895
)
3,329
$
47,049
$
36,614
$
38,432
(in thousands)
2010
2009
$
12,802
$
12,080
10,397
10,505
39,536
30,075
14,782
16,569
77,517
69,229
(39,084
)
(25,682
)
38,433
43,547
(24,298
)
(21,934
)
(2,755
)
(2,619
)
(19,820
)
(18,779
)
(46,873
)
(43,332
)
$
(8,440
)
$
215
2010
2009
2008
35.0
%
35.0
%
35.0
%
1.1
1.6
1.1
(0.3
)
(0.3
)
(0.2
)
(3.7
)
(3.6
)
(3.2
)
(1.5
)
(2.1
)
(1.1
)
(0.4
)
(0.7
)
(0.1
)
(0.5
)
(1.2
)
30.5
%
29.7
%
29.7
%
(in thousands)
2010
2009
2008
$
56,150
$
46,467
$
40,454
98,043
76,708
88,839
$
154,193
$
123,175
$
129,293
(in thousands)
2010
2009
$
12,213
$
9,481
677
1,579
870
4,037
(792
)
(177
)
(2,276
)
(1,786
)
(846
)
(1,477
)
(423
)
556
$
9,423
$
12,213
Geographic Information
Years ended December 31, 2010, 2009 and 2008
Flavors &
Corporate
(in thousands)
Fragrances
Color
& Other
Consolidated
$
786,532
$
430,782
$
110,866
$
1,328,180
22,521
16,679
2,313
41,513
809,053
447,461
113,179
1,369,693
121,997
77,404
(24,824
)
174,577
20,384
20,384
121,997
77,404
(45,208
)
154,193
785,205
676,656
137,407
1,599,268
27,214
22,306
6,303
55,823
24,896
13,473
5,054
43,423
$
755,525
$
358,761
$
87,126
$
1,201,412
17,347
16,046
1,280
34,673
772,872
374,807
88,406
1,236,085
124,482
58,685
(36,204
)
146,963
23,788
23,788
124,482
58,685
(59,992
)
123,175
800,156
651,446
140,089
1,591,691
28,696
11,865
7,155
47,716
24,155
13,098
4,930
42,183
$
780,254
$
388,089
$
84,277
$
1,252,620
20,496
14,275
1,663
36,434
800,750
402,364
85,940
1,289,054
123,475
71,581
(33,457
)
161,599
32,306
32,306
123,475
71,581
(65,763
)
129,293
774,868
635,590
114,979
1,525,437
33,097
14,193
6,390
53,680
25,631
13,594
5,220
44,445
(in thousands)
2010
2009
2008
$
699,429
$
650,847
$
674,777
374,616
334,755
371,414
166,809
137,804
128,650
87,326
78,006
77,779
$
1,328,180
$
1,201,412
$
1,252,620
$
420,084
$
407,758
$
393,973
470,811
493,263
478,161
34,993
31,605
25,047
1,075
956
733
$
926,963
$
933,582
$
897,914
Years ended December 31, 2010, 2009 and 2008
47
48
49
50
51
52
Sensient Technologies Corporation
Milwaukee, Wisconsin
Milwaukee, Wisconsin
February 25, 2011
on Internal Control Over Financial Reporting
Sensient Technologies Corporation
Milwaukee, Wisconsin
Milwaukee, Wisconsin
February 25, 2011
Quarterly Data
Gross
Net
Net Earnings Per Share
(in thousands except per share amounts) (unaudited)
Revenue
Profit
Earnings
Basic
Diluted
$
314,076
$
94,946
$
23,467
$
0.48
$
0.48
333,969
104,961
28,685
0.58
0.58
340,868
106,276
29,217
0.59
0.59
339,267
102,176
25,775
0.52
0.52
$
282,824
$
86,530
$
21,607
$
0.45
$
0.45
303,959
94,690
25,819
0.53
0.53
303,179
93,076
22,829
0.47
0.47
311,450
94,734
16,306
0.34
0.33
Market Price
Dividends
Common Stock Prices and Dividends
High
Low
Per Share
$
29.72
$
24.76
$
0.19
32.40
25.87
0.20
31.00
25.69
0.20
37.61
30.29
0.20
$
24.95
$
18.42
$
0.19
25.40
22.08
0.19
28.62
21.89
0.19
29.07
24.62
0.19
(in thousands except employee and per share data) Years ended December 31,
2010
$
1,328,180
100.0
%
919,821
69.3
233,782
17.6
174,577
13.1
20,384
1.5
154,193
11.6
47,049
3.5
$
107,144
8.1
%
$
2.18
$
2.17
$
0.79
49,138
49,424
$
19.70
24.76-37.61
36.73
55,823
42,109
1,314
1,599,268
324,360
349,810
983,785
11.6
%
26.2
%
3,618
2009
2008
2007
2006
$
1,201,412
100.0
%
$
1,252,620
100.0
%
$
1,184,778
100.0
%
$
1,098,774
100.0%
832,382
69.3
871,754
69.6
822,479
69.5
766,506
69.7
222,067
18.5
219,267
17.5
214,929
18.1
202,991
18.5
146,963
12.2
161,599
12.9
147,370
12.4
129,277
11.8
23,788
2.0
32,306
2.6
36,127
3.0
35,748
3.3
123,175
10.3
129,293
10.3
111,243
9.4
93,529
8.5
36,614
3.0
38,432
3.1
33,457
2.8
27,104
2.5
$
86,561
7.2
%
$
90,861
7.3
%
$
77,786
6.6
%
$
66,425
6.0%
$
1.79
$
1.91
$
1.66
$
1.45
$
1.78
$
1.89
$
1.65
$
1.44
$
0.76
$
0.74
$
0.68
$
0.61
48,379
47,654
46,740
45,900
48,641
48,131
47,257
46,204
$
18.49
$
16.87
$
17.10
$
15.12
18.42-29.07
21.05-33.12
23.66-31.99
16.92-25.33
26.30
23.88
28.28
24.60
47,716
53,680
41,961
39,314
40,881
42,798
42,849
41,658
1,302
1,647
1,463
1,386
1,591,691
1,525,437
1,564,182
1,454,067
388,852
445,682
449,621
441,306
428,033
479,895
507,108
532,532
908,695
818,596
814,421
704,104
10.0
%
10.7
%
10.2
%
9.9
%
32.0
%
37.0
%
38.4
%
43.1
%
3,570
3,613
3,623
3,582
Chairman and Chief Executive Officer
Sensient Technologies Corporation
Elected Director in 1989 (2,6)
President Emeritus
University of Colorado
Elected Director in 2004 (1, 4, 5)
Distinguished Professor,
Department of Food Science, and Director
of the Food Science Policy Alliance at the
University of Massachusetts Amherst
Elected Director in 1998 (2, 3, 4, 6)
Chairman
Bartlodge Limited
Elected Director in 1997 (1, 2, 3, 6)
President and Chief Executive Officer
Sealed Air Corporation
Elected Director in 1997 (1, 2, 4, 5)
President
International Food Network, Inc.
Elected Director in 2005 (5, 6)
Retired, Former President
Nestles Research and Development
Worldwide Food Service Systems
Elected Director in 2006 (5, 6)
Retired, Former Senior Vice President, Operations
Wisconsin Physician Services
Elected Director in 1993 (3,4)
COMMITTEES
1
Audit Committee
2
Executive Committee
3
Compensation and Development Committee
4
Nominating and Corporate Governance Committee
5
Finance Committee
6
Scientific Advisory Committee
Chairman and Chief Executive Officer
With the Company 23 years
Vice President and Treasurer
With the Company 11 years
Vice President, Human Resources
With the Company 11 years
Senior Vice President, General Counsel and Secretary
With the Company 13 years
Vice President, Marketing & Technology
With the Company 16 years
Senior Vice President and Chief Financial Officer
With the Company 37 years
Vice President, Controller and Chief Accounting Officer
With the Company 14 years
Assistant Controller
With the Company 19 years
President, Color Group
With the Company 1 year
President, Flavors & Fragrances Group
With the Company 2 years
President and Chief Operating Officer
With the Company 5 years
Vice President, Administration
With the Company 13 years
President, Asia Pacific Group
With the Company 7 years
Vice President, Administrative Services
With the Company 13 years
President, Dehydrated Flavors
With the Company 30 years
Vice President, Information Technology
With the Company 15 years
Vice President, Engineering
With the Company 17 years
Milwaukee, Wisconsin 53202-5304
(414)271-6755
(800) 558-9892
Fax: (414) 347-4795
E-mail: corporate.communications@sensient.com
Web site: www.sensient.com
Shareowner Services
P. 0. Box 64854
St. Paul, Minnesota 55164-0854
(800)468-9716
Web site: www.wellsfargo.com/shareownerservices
Stock is traded on the New York Stock Exchange.
Ticker symbol: SXT.
NAME | INCORPORATION | |
DOMESTIC
|
||
POINTING COLOR INC.
|
DELAWARE | |
SENSIENT
COLORS LLC
|
DELAWARE | |
SENSIENT DEHYDRATED FLAVORS LLC
|
DELAWARE | |
SENSIENT FLAVORS INTERNATIONAL, INC.
|
INDIANA | |
SENSIENT FLAVORS LLC
|
DELAWARE | |
SENSIENT FOOD COLORS LP
|
MISSOURI | |
SENSIENT HOLDING COMPANY LLC
|
DELAWARE | |
SENSIENT IMAGING TECHNOLOGIES INC.
|
CALIFORNIA | |
SENSIENT TECHNOLOGIES HOLDING COMPANY LLC
|
DELAWARE | |
SENSIENT WISCONSIN L.L.C.
|
WISCONSIN |
STC SUBSIDIARIES AS OF 12/20/10 | PAGE 1 OF 5 |
NAME | INCORPORATION | |
FOREIGN
|
||
BIOLUX FINANCE NV
|
BELGIUM | |
DC FLAVOURS LIMITED
|
UNITED KINGDOM | |
LCW POLSKA LTD (60% Owner)
|
POLAND | |
LES COLORANTS WACKHERR DO BRASIL LTDA (50% Owner)
|
BRAZIL | |
POINTING CANADA LIMITED
|
CANADA | |
POINTING CHEMICALS LIMITED
|
UNITED KINGDOM | |
POINTING HOLDINGS LIMITED
|
UNITED KINGDOM | |
POINTING INTERNATIONAL LTD.
|
UNITED KINGDOM | |
POINTING LIMITED
|
UNITED KINGDOM | |
PROMAVIL N.V.
|
BELGIUM | |
PT SENSIENT TECHNOLOGIES INDONESIA
|
INDONESIA | |
SENSIENT COLORS CANADA LIMITED
|
CANADA | |
SENSIENT COLORS S.A.
|
ARGENTINA | |
SENSIENT COLORS S.A. DE C.V.
|
MEXICO | |
SENSIENT COLORS SOUTH AFRICA (PROPRIETARY) LIMITED
|
SOUTH AFRICA | |
SENSIENT COLORS UK LIMITED
|
UNITED KINGDOM | |
SENSIENT COSMETIC TECHNOLOGIES
|
FRANCE | |
SENSIENT COSTA RICA SRL
|
COSTA RICA | |
SENSIENT DEHYDRATED FLAVORS B.V.
|
NETHERLANDS | |
SENSIENT DEHYDRATED FLAVORS CANADA, INC.
|
CANADA | |
SENSIENT DEHYDRATED FLAVORS (QINGDAO) CO. LTD.
|
CHINA | |
SENSIENT DEHYDRATED FLAVORS SAS
|
FRANCE |
STC SUBSIDIARIES AS OF 12/20/10 | PAGE 2 OF 5 |
NAME | INCORPORATION | |
FOREIGN
|
||
SENSIENT ESSENTIAL OILS GERMANY GMBH
|
GERMANY | |
SENSIENT FINANCE (ALBERTA) LIMITED PARTNERSHIP
|
CANADA | |
SENSIENT FINANCE IRELAND LIMITED
|
IRELAND | |
SENSIENT FINANCE (LUXEMBOURG) SARL
|
LUXEMBOURG | |
SENSIENT FLAVORS AUSTRIA GMBH
|
AUSTRIA | |
SENSIENT FLAVORS BELGIUM NV
|
BELGIUM | |
SENSIENT FLAVORS BIOLUX, NV
|
BELGIUM | |
SENSIENT FLAVORS CANADA, INC.
|
ONTARIO | |
SENSIENT FLAVORS CENTRAL AMERICA S.R.L.
|
COSTA RICA | |
SENSIENT FLAVORS FINLAND OY
|
FINLAND | |
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 ROMANIA S.R.L.
|
ROMANIA | |
SENSIENT FLAVORS SCANDINAVIA AB
|
SWEDEN | |
SENSIENT FLAVORS STRASBOURG
|
FRANCE | |
SENSIENT FLAVORS WALES LIMITED
|
UNITED KINGDOM | |
SENSIENT FOOD COLORS CZECH REPUBLIC S.R.O.
|
CZECH REPUBLIC | |
SENSIENT FOOD COLORS FRANCE
|
FRANCE |
STC SUBSIDIARIES AS OF 12/20/10 | PAGE 3 OF 5 |
NAME | INCORPORATION | |
FOREIGN
|
||
SENSIENT FOOD COLORS GERMANY GMBH
|
GERMANY | |
SENSIENT FOOD COLORS HUNGARY KFT
|
HUNGARY | |
SENSIENT FOOD COLORS ITALY S.R.L.
|
ITALY | |
SENSIENT FOOD COLORS POLAND SP.ZO.O.
|
POLAND | |
SENSIENT FOOD COLORS ROMANIA S.R.L.
|
ROMANIA | |
SENSIENT FOOD COLORS SMN D.O.O.
|
SERBIA & MONTENEGRO | |
SENSIENT FOOD COLORS THE NETHERLANDS BV
|
NETHERLANDS | |
SENSIENT FRAGRANCES GUATEMALA, S.A.
|
GUATEMALA | |
SENSIENT FRAGRANCES MEXICO, S.A. DE C.V.
|
MEXICO | |
SENSIENT FRAGRANCES, S.A.
|
SPAIN | |
SENSIENT HOLDING I BV
|
NETHERLANDS | |
SENSIENT HOLDING II BV
|
NETHERLANDS | |
SENSIENT HOLDING III BV
|
NETHERLANDS | |
SENSIENT HOLDING (ALBERTA) LIMITED PARTNERSHIP
|
CANADA | |
SENSIENT HOLDING LUXEMBOURG SARL
|
LUXEMBOURG | |
SENSIENT HOLDINGS MALTA LTD
|
MALTA | |
SENSIENT HOLDINGS UK
|
UNITED KINGDOM | |
SENSIENT IMAGING TECHNOLOGIES GMBH
|
GERMANY | |
SENSIENT IMAGING TECHNOLOGIES LTD
|
SWITZERLAND | |
SENSIENT IMAGING TECHNOLOGIES S.A. DE C.V.
|
MEXICO | |
SENSIENT INDIA PRIVATE LIMITED
|
INDIA | |
SENSIENT TECHNOLOGIES ASIA PACIFIC PTE, LTD
|
SINGAPORE | |
SENSIENT TECHNOLOGIES AUSTRALIA PTY, LTD.
|
AUSTRALIA |
STC SUBSIDIARIES AS OF 12/20/10 | PAGE 4 OF 5 |
NAME | INCORPORATION | |
FOREIGN
|
||
SENSIENT TECHNOLOGIES BRAZIL LTDA.
|
BRAZIL | |
SENSIENT TECHNOLOGIES COLOMBIA LTDA
|
COLOMBIA | |
SENSIENT TECHNOLOGIES CORP. (CHINA) LTD
|
CHINA | |
SENSIENT TECHNOLOGIES CORPORATION (JAPAN)
|
JAPAN | |
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 (PHILIPPINES), INC.
|
PHILIPPINES | |
SENSIENT TECHNOLOGIES REAL ESTATE GMBH
|
GERMANY | |
SENSIENT TECHNOLOGIES (THAILAND), LTD.
|
THAILAND | |
SENSIENT VERMÖGENSVERWALTUNGSGESELLSCHAFT MBH
|
GERMANY | |
SOCIETE CIVILE IMMOBILIERE GRISEDA
|
FRANCE | |
UNIVERSAL HOLDINGS CAYMAN
|
BRITISH WEST INDIES |
STC SUBSIDIARIES AS OF 12/20/10 | PAGE 5 OF 5 |
1. | I have reviewed this annual report on Form 10-K of Sensient Technologies Corporation; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent functions): |
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 registrants ability to record, process, summarize and report financial information; and | ||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/s/ Kenneth P. Manning
|
||
& Chief Executive Officer
|
1. | I have reviewed this annual report on Form 10-K of Sensient Technologies Corporation; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c) | evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d) | disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent functions): |
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 registrants ability to record, process, summarize and report financial information; and | ||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/s/ Richard F. Hobbs
|
||
and Chief Financial Officer
|
/s/ Kenneth P. Manning | ||||||
|
Name: | Kenneth P. Manning | ||||
|
Title: | Chairman & | ||||
|
Chief Executive Officer | |||||
|
Date: | February 25, 2011 |
/s/ Richard F. Hobbs | ||||||
|
Name: | Richard F. Hobbs | ||||
|
Title: | Senior Vice President and | ||||
|
Chief Financial Officer | |||||
|
Date: | February 25, 2011 |