☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended:
|
June 30, 2017
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from
|
to
|
Wisconsin
|
39‑0561070
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
Registrant's telephone number, including area code:
|
(414) 271‑6755
|
Large accelerated filer ☒
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
(Do not check if a smaller reporting company)
|
|
Smaller reporting company ☐
|
Emerging growth company ☐
|
Class
|
Outstanding at July 31, 2017
|
|
Common Stock, par value $0.10 per share
|
43,866,336
|
Page No.
|
|||
PART I. FINANCIAL INFORMATION:
|
|||
Item 1.
|
Financial Statements:
|
||
1
|
|||
2
|
|||
3
|
|||
4
|
|||
5
|
|||
Item 2.
|
15
|
||
Item 3.
|
22
|
||
Item 4.
|
22
|
||
PART II. OTHER INFORMATION:
|
|||
Item 1.
|
23
|
||
Item 1A.
|
24
|
||
Item 2.
|
24
|
||
Item 6.
|
24
|
||
25
|
|||
26
|
PART I. |
FINANCIAL INFORMATION
|
ITEM 1. |
FINANCIAL STATEMENTS
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Revenue
|
$
|
338,475
|
$
|
360,836
|
$
|
679,872
|
$
|
703,304
|
||||||||
Cost of products sold
|
219,250
|
236,402
|
439,702
|
463,027
|
||||||||||||
Selling and administrative expenses
|
74,845
|
80,769
|
171,753
|
149,093
|
||||||||||||
Operating income
|
44,380
|
43,665
|
68,417
|
91,184
|
||||||||||||
Interest expense
|
4,717
|
4,637
|
9,528
|
9,437
|
||||||||||||
Earnings before income taxes
|
39,663
|
39,028
|
58,889
|
81,747
|
||||||||||||
Income taxes
|
8,889
|
14,277
|
14,923
|
25,803
|
||||||||||||
Earnings from continuing operations
|
30,774
|
24,751
|
43,966
|
55,944
|
||||||||||||
Gain from discontinued operations, net of tax
|
-
|
3,365
|
-
|
3,343
|
||||||||||||
Net earnings
|
$
|
30,774
|
$
|
28,116
|
$
|
43,966
|
$
|
59,287
|
||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
44,023
|
44,562
|
44,112
|
44,640
|
||||||||||||
Diluted
|
44,290
|
44,822
|
44,384
|
44,902
|
||||||||||||
Earnings per common share:
|
||||||||||||||||
Basic:
|
||||||||||||||||
Continuing operations
|
$
|
0.70
|
$
|
0.56
|
$
|
1.00
|
$
|
1.25
|
||||||||
Discontinued operations
|
-
|
0.08
|
-
|
0.07
|
||||||||||||
Earnings per common share
|
$
|
0.70
|
$
|
0.63
|
$
|
1.00
|
$
|
1.33
|
||||||||
Diluted:
|
||||||||||||||||
Continuing operations
|
$
|
0.69
|
$
|
0.55
|
$
|
0.99
|
$
|
1.25
|
||||||||
Discontinued operations
|
-
|
0.08
|
-
|
0.07
|
||||||||||||
Earnings per common share
|
$
|
0.69
|
$
|
0.63
|
$
|
0.99
|
$
|
1.32
|
||||||||
Dividends declared per common share
|
$
|
0.30
|
$
|
0.27
|
$
|
0.60
|
$
|
0.54
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|||||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
Comprehensive Income
|
$
|
59,183
|
$
|
7,174
|
$
|
96,454
|
$
|
53,924
|
ASSETS
|
June 30,
2017
(Unaudited)
|
December 31,
2016
|
||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
26,016
|
$
|
25,865
|
||||
Trade accounts receivable, net
|
216,197
|
194,509
|
||||||
Inventories
|
428,932
|
404,320
|
||||||
Prepaid expenses and other current assets
|
48,203
|
50,974
|
||||||
Assets held for sale
|
7,333
|
41,393
|
||||||
TOTAL CURRENT ASSETS
|
726,681
|
717,061
|
||||||
OTHER ASSETS
|
70,314
|
70,462
|
||||||
DEFERRED TAX ASSETS
|
13,127
|
12,120
|
||||||
INTANGIBLE ASSETS, NET
|
7,791
|
8,126
|
||||||
GOODWILL
|
400,414
|
383,568
|
||||||
PROPERTY, PLANT AND EQUIPMENT:
|
||||||||
Land
|
34,249
|
33,015
|
||||||
Buildings
|
286,800
|
265,157
|
||||||
Machinery and equipment
|
697,038
|
643,869
|
||||||
Construction in progress
|
37,331
|
79,981
|
||||||
1,055,418
|
1,022,022
|
|||||||
Less accumulated depreciation
|
(575,412
|
)
|
(545,499
|
)
|
||||
480,006
|
476,523
|
|||||||
TOTAL ASSETS
|
$
|
1,698,333
|
$
|
1,667,860
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade accounts payable
|
$
|
93,018
|
$
|
92,450
|
||||
Accrued salaries, wages and withholdings from employees
|
22,823
|
26,502
|
||||||
Other accrued expenses
|
50,949
|
54,752
|
||||||
Income taxes
|
1,368
|
14,080
|
||||||
Short-term borrowings
|
20,385
|
20,578
|
||||||
Liabilities held for sale
|
-
|
5,313
|
||||||
TOTAL CURRENT LIABILITIES
|
188,543
|
213,675
|
||||||
DEFERRED INCOME TAXES
|
11,227
|
9,650
|
||||||
OTHER LIABILITIES
|
6,849
|
6,103
|
||||||
ACCRUED EMPLOYEE AND RETIREE BENEFITS
|
21,059
|
19,911
|
||||||
LONG‑TERM DEBT
|
586,940
|
582,780
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Common stock
|
5,396
|
5,396
|
||||||
Additional paid‑in capital
|
110,452
|
107,686
|
||||||
Earnings reinvested in the business
|
1,396,336
|
1,378,923
|
||||||
Treasury stock, at cost
|
(467,492
|
)
|
(442,799
|
)
|
||||
Accumulated other comprehensive loss
|
(160,977
|
)
|
(213,465
|
)
|
||||
TOTAL SHAREHOLDERS’ EQUITY
|
883,715
|
835,741
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
1,698,333
|
$
|
1,667,860
|
Six Months
Ended June 30,
|
||||||||
2017
|
2016
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
43,966
|
$
|
59,287
|
||||
Adjustments to arrive at net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
24,436
|
23,301
|
||||||
Share-based compensation
|
4,252
|
4,803
|
||||||
Net loss on assets
|
328
|
8,107
|
||||||
Loss on divestiture of businesses
|
33,138
|
-
|
||||||
Deferred income taxes
|
(4,765
|
)
|
6,231
|
|||||
Liquidation of foreign entity
|
-
|
(3,257
|
)
|
|||||
Changes in operating assets and liabilities
|
(38,541
|
)
|
2,373
|
|||||
Net cash provided by operating activities
|
62,814
|
100,845
|
||||||
Cash flows from investing activities:
|
||||||||
Acquisition of property, plant and equipment
|
(19,666
|
)
|
(34,294
|
)
|
||||
Proceeds from sale of assets
|
5,305
|
910
|
||||||
Proceeds from divestiture of businesses
|
12,457
|
-
|
||||||
Other investing activity
|
(132
|
)
|
(48
|
)
|
||||
Net cash used in investing activities
|
(2,036
|
)
|
(33,432
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from additional borrowings
|
139,820
|
107,484
|
||||||
Debt payments
|
(154,282
|
)
|
(123,067
|
)
|
||||
Purchase of treasury stock
|
(26,743
|
)
|
(21,055
|
)
|
||||
Dividends paid
|
(26,553
|
)
|
(24,266
|
)
|
||||
Other financing activity
|
(1,047
|
)
|
290
|
|||||
Net cash used in financing activities
|
(68,805
|
)
|
(60,614
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
8,178
|
1,397
|
||||||
Net increase in cash and cash equivalents
|
151
|
8,196
|
||||||
Cash and cash equivalents at beginning of period
|
25,865
|
11,997
|
||||||
Cash and cash equivalents at end of period
|
$
|
26,016
|
$
|
20,193
|
1. |
Accounting Policies
|
2. |
Fair Value
|
3. |
Segment Information
|
(In thousands)
|
Flavors &
Fragrances
|
Color
|
Asia
Pacific
|
Corporate
& Other
|
Consolidated
|
|||||||||||||||
Three months ended June 30, 2017:
|
||||||||||||||||||||
Revenue from external customers
|
$
|
180,736
|
$
|
129,253
|
$
|
28,486
|
$
|
-
|
$
|
338,475
|
||||||||||
Intersegment revenue
|
4,820
|
3,641
|
459
|
-
|
8,920
|
|||||||||||||||
Total revenue
|
$
|
185,556
|
$
|
132,894
|
$
|
28,945
|
$
|
-
|
$
|
347,395
|
||||||||||
Operating income (loss)
|
$
|
28,502
|
$
|
29,072
|
$
|
3,820
|
$
|
(17,014
|
)
|
$
|
44,380
|
|||||||||
Interest expense
|
-
|
-
|
-
|
4,717
|
4,717
|
|||||||||||||||
Earnings (loss) before income taxes
|
$
|
28,502
|
$
|
29,072
|
$
|
3,820
|
$
|
(21,731
|
)
|
$
|
39,663
|
|||||||||
Three months ended June 30, 2016:
|
||||||||||||||||||||
Revenue from external customers
|
$
|
202,273
|
$
|
128,478
|
$
|
30,085
|
$
|
-
|
$
|
360,836
|
||||||||||
Intersegment revenue
|
7,215
|
3,723
|
38
|
-
|
10,976
|
|||||||||||||||
Total revenue
|
$
|
209,488
|
$
|
132,201
|
$
|
30,123
|
$
|
-
|
$
|
371,812
|
||||||||||
Operating income (loss)
|
$
|
35,461
|
$
|
28,309
|
$
|
5,653
|
$
|
(25,758
|
)
|
$
|
43,665
|
|||||||||
Interest expense
|
-
|
-
|
-
|
4,637
|
4,637
|
|||||||||||||||
Earnings (loss) before income taxes
|
$
|
35,461
|
$
|
28,309
|
$
|
5,653
|
$
|
(30,395
|
)
|
$
|
39,028
|
(In thousands)
|
Flavors &
Fragrances
|
Color
|
Asia
Pacific
|
Corporate
& Other
|
Consolidated
|
|||||||||||||||
Six months ended June 30, 2017:
|
||||||||||||||||||||
Revenue from external customers
|
$
|
361,811
|
$
|
260,093
|
$
|
57,968
|
$
|
-
|
$
|
679,872
|
||||||||||
Intersegment revenue
|
10,620
|
6,867
|
613
|
-
|
18,100
|
|||||||||||||||
Total revenue
|
$
|
372,431
|
$
|
266,960
|
$
|
58,581
|
$
|
-
|
$
|
697,972
|
||||||||||
Operating income (loss)
|
$
|
57,272
|
$
|
59,289
|
$
|
8,970
|
$
|
(57,114
|
)
|
$
|
68,417
|
|||||||||
Interest expense
|
-
|
-
|
-
|
9,528
|
9,528
|
|||||||||||||||
Earnings (loss) before income taxes
|
$
|
57,272
|
$
|
59,289
|
$
|
8,970
|
$
|
(66,642
|
)
|
$
|
58,889
|
|||||||||
Six months ended June 30, 2016:
|
||||||||||||||||||||
Revenue from external customers
|
$
|
393,410
|
$
|
251,642
|
$
|
58,252
|
$
|
-
|
$
|
703,304
|
||||||||||
Intersegment revenue
|
14,562
|
7,041
|
78
|
-
|
21,681
|
|||||||||||||||
Total revenue
|
$
|
407,972
|
$
|
258,683
|
$
|
58,330
|
$
|
-
|
$
|
724,985
|
||||||||||
Operating income (loss)
|
$
|
63,108
|
$
|
56,425
|
$
|
11,249
|
$
|
(39,598
|
)
|
$
|
91,184
|
|||||||||
Interest expense
|
-
|
-
|
-
|
9,437
|
9,437
|
|||||||||||||||
Earnings (loss) before income taxes
|
$
|
63,108
|
$
|
56,425
|
$
|
11,249
|
$
|
(49,035
|
)
|
$
|
81,747
|
4. |
Inventories
|
5. |
Retirement Plans
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(In thousands)
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
Service cost
|
$
|
465
|
$
|
503
|
$
|
926
|
$
|
1,006
|
||||||||
Interest cost
|
359
|
425
|
714
|
845
|
||||||||||||
Expected return on plan assets
|
(259
|
)
|
(300
|
)
|
(514
|
)
|
(597
|
)
|
||||||||
Amortization of actuarial (gain) loss
|
(21
|
)
|
55
|
(42
|
)
|
108
|
||||||||||
Settlement expense
|
3,797
|
-
|
3,797
|
-
|
||||||||||||
Total defined benefit expense
|
$
|
4,341
|
$
|
683
|
$
|
4,881
|
$
|
1,362
|
6. |
Shareholders’ Equity
|
7. |
Derivative Instruments and Hedging Activity
|
8. |
Income Taxes
|
9. |
Accumulated Other Comprehensive Income
|
(In thousands)
|
Cash Flow
Hedges
(a)
|
Pension
Items
(a)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balance as of March 31, 2017
|
$
|
222
|
$
|
(2,565
|
)
|
$
|
(187,043
|
)
|
$
|
(189,386
|
)
|
|||||
Other comprehensive income before reclassifications
|
64
|
-
|
26,792
|
26,856
|
||||||||||||
Amounts reclassified from OCI
|
(125
|
)
|
1,420
|
258
|
1,553
|
|||||||||||
Balance as of June 30, 2017
|
$
|
161
|
$
|
(1,145
|
)
|
$
|
(159,993
|
)
|
$
|
(160,977
|
)
|
(In thousands)
|
Cash Flow
Hedges
(a)
|
Pension
Items
(a)
|
Foreign
Currency
Items
|
Total
|
||||||||||||
Balance as of December 31, 2016
|
$
|
(85
|
)
|
$
|
(2,537
|
)
|
$
|
(210,843
|
)
|
$
|
(213,465
|
)
|
||||
Other comprehensive income before reclassifications
|
391
|
-
|
44,068
|
44,459
|
||||||||||||
Amounts reclassified from OCI
|
(145
|
)
|
1,392
|
6,782
|
8,029
|
|||||||||||
Balance as of June 30, 2017
|
$
|
161
|
$
|
(1,145
|
)
|
$
|
(159,993
|
)
|
$
|
(160,977
|
)
|
(a) |
Cash Flow Hedges and Pension Items are net of tax.
|
10. |
Accounts Receivable Securitization
|
11. |
Restructuring
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(In thousands)
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
Flavors & Fragrances
|
$
|
7,339
|
$
|
2,925
|
$
|
27,492
|
$
|
5,867
|
||||||||
Color
|
-
|
93
|
-
|
132
|
||||||||||||
Asia Pacific
|
-
|
-
|
-
|
-
|
||||||||||||
Corporate & Other
|
76
|
257
|
135
|
618
|
||||||||||||
Total Continuing Operations
|
7,415
|
3,275
|
27,627
|
6,617
|
||||||||||||
Discontinued Operations
|
-
|
(3,485
|
)
|
-
|
(3,485
|
)
|
||||||||||
Total Restructuring
|
$
|
7,415
|
$
|
(210
|
)
|
$
|
27,627
|
$
|
3,132
|
(In thousands)
|
Selling &
Administrative
|
Cost of
Products Sold
|
Total
|
|||||||||
Employee separation
(1)
|
$
|
3,857
|
$
|
-
|
$
|
3,857
|
||||||
Long-lived asset impairment
|
12
|
-
|
12
|
|||||||||
Loss on sale of business
|
654
|
-
|
654
|
|||||||||
Write-down of inventory
|
-
|
-
|
-
|
|||||||||
Other restructuring costs
(2)
|
2,892
|
-
|
2,892
|
|||||||||
Total
|
$
|
7,415
|
$
|
-
|
$
|
7,415
|
(1)
|
Employee separation costs includes settlement expense related to the termination of one of the Company’s defined benefit plans.
|
(2) |
Other costs include decommissioning costs, professional services, temporary labor, moving costs, and other related costs.
|
(In thousands)
|
Selling &
Administrative
|
Cost of
Products Sold
|
Total
|
|||||||||
Employee separation
(1)
|
$
|
(628
|
)
|
$
|
-
|
$
|
(628
|
)
|
||||
Long-lived asset impairment
|
468
|
-
|
468
|
|||||||||
Loss on sale of business
|
21,563
|
-
|
21,563
|
|||||||||
Write-down of inventory
|
-
|
342
|
342
|
|||||||||
Other restructuring costs
(2)
|
5,882
|
-
|
5,882
|
|||||||||
Total
|
$
|
27,285
|
$
|
342
|
$
|
27,627
|
(1) |
Employee separation costs include a reversal, during the three months ended March 31, 2017, of the employee separation accrual for the European Natural Ingredients business, given the sale of this business, as well as, settlement expense related to the termination of one of the Company’s defined benefit plans.
|
(2) |
Other costs include decommissioning costs, professional services, temporary labor, moving costs, and other related costs.
|
(In thousands)
|
Selling &
Administrative
|
Cost of
Products Sold
|
Total
|
|||||||||
Employee separation
|
$
|
319
|
$
|
-
|
$
|
319
|
||||||
Long-lived asset impairment
|
262
|
-
|
262
|
|||||||||
Write-down of inventory
|
-
|
166
|
166
|
|||||||||
Other restructuring costs
(1)
|
2,528
|
-
|
2,528
|
|||||||||
Total
|
$
|
3,109
|
$
|
166
|
$
|
3,275
|
(1) |
Other costs include decommissioning costs, professional services, temporary labor, moving costs, and other related costs.
|
(In thousands)
|
Selling &
Administrative
|
Cost of
Products Sold
|
Total
|
|||||||||
Employee separation
|
$
|
450
|
$
|
-
|
$
|
450
|
||||||
Long-lived asset impairment
|
733
|
-
|
733
|
|||||||||
Write-down of inventory
|
-
|
810
|
810
|
|||||||||
Other restructuring costs
(1)
|
4,624
|
-
|
4,624
|
|||||||||
Total
|
$
|
5,807
|
$
|
810
|
$
|
6,617
|
(1) |
Other costs include decommissioning costs, professional services, temporary labor, moving costs, and other related costs.
|
(In thousands)
|
Employee
Separations
|
Other
|
Total
|
|||||||||
Balance as of December 31, 2016
|
$
|
6,959
|
$
|
570
|
$
|
7,529
|
||||||
Expense activity
(1)
|
(4,425
|
)
|
5,882
|
1,457
|
||||||||
Cash spent
|
(1,847
|
)
|
(6,238
|
)
|
(8,085
|
)
|
||||||
Translation adjustment
|
109
|
-
|
109
|
|||||||||
Balance as of June 30, 2017
|
$
|
796
|
$
|
214
|
$
|
1,010
|
(1) |
Employee separation costs include a reversal, during the three months ended March 31, 2017, of the employee separation accrual for the European Natural Ingredients business, given the sale of this business.
|
12. |
Discontinued Operations
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(In thousands)
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
Revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Gain from discontinued operations before income taxes
|
-
|
3,441
|
-
|
3,410
|
||||||||||||
Income tax expense
|
-
|
(76
|
)
|
-
|
(67
|
)
|
||||||||||
Gain from discontinued operations, net of tax
|
$
|
-
|
$
|
3,365
|
$
|
-
|
$
|
3,343
|
13. |
Divestiture
|
14. |
Debt
|
15. |
Commitments and Contingencies
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
2017
|
2016
|
% Change
|
2017
|
2016
|
% Change
|
|||||||||||||||||||
Operating income from continuing operations (GAAP)
|
$
|
44,380
|
$
|
43,665
|
1.6
|
%
|
$
|
68,417
|
$
|
91,184
|
-25.0
|
%
|
||||||||||||
Restructuring - Cost of products sold
|
-
|
166
|
342
|
810
|
||||||||||||||||||||
Restructuring - Selling and administrative
|
7,415
|
3,109
|
27,285
|
5,807
|
||||||||||||||||||||
Other - Selling and administrative
(1)
|
494
|
10,292
|
11,541
|
10,292
|
||||||||||||||||||||
Adjusted operating income
|
$
|
52,289
|
$
|
57,232
|
-8.6
|
%
|
$
|
107,585
|
$
|
108,093
|
-0.5
|
%
|
||||||||||||
Net earnings from continuing operations (GAAP)
|
$
|
30,774
|
$
|
24,751
|
24.3
|
%
|
$
|
43,966
|
$
|
55,944
|
-21.4
|
%
|
||||||||||||
Restructuring and other, before tax
|
7,909
|
13,567
|
39,168
|
16,909
|
||||||||||||||||||||
Tax impact of restructuring and other
|
(278
|
)
|
(738
|
)
|
(8,105
|
)
|
(1,600
|
)
|
||||||||||||||||
Adjusted net earnings
|
$
|
38,405
|
$
|
37,580
|
2.2
|
%
|
$
|
75,029
|
$
|
71,253
|
5.3
|
%
|
||||||||||||
Diluted EPS from continuing operations (GAAP)
|
$
|
0.69
|
$
|
0.55
|
25.5
|
%
|
$
|
0.99
|
$
|
1.25
|
-20.8
|
%
|
||||||||||||
Restructuring and other, net of tax
|
0.17
|
0.29
|
0.70
|
0.34
|
||||||||||||||||||||
Adjusted diluted EPS
|
$
|
0.87
|
$
|
0.84
|
3.6
|
%
|
$
|
1.69
|
$
|
1.59
|
6.3
|
%
|
(1) |
The other costs in 2017 and 2016 are for the divestiture related costs discussed under
Divestiture
above.
|
Three Months Ended June 30, 2017
|
Six Months Ended June 30, 2017
|
|||||||||||||||||||||||
Revenue
|
Total
|
Foreign
Exchange
Rates
|
Local
Currency
|
Total
|
Foreign
Exchange
Rates
|
Local
Currency
|
||||||||||||||||||
Flavors & Fragrances
|
(11.4
|
%)
|
(1.6
|
%)
|
(9.9
|
%)
|
(8.7
|
%)
|
(1.8
|
%)
|
(6.9
|
%)
|
||||||||||||
Color
|
0.5
|
%
|
(0.7
|
%)
|
1.2
|
%
|
3.2
|
%
|
(0.8
|
%)
|
4.0
|
%
|
||||||||||||
Asia Pacific
|
(3.9
|
%)
|
(0.3
|
%)
|
(3.7
|
%)
|
0.4
|
%
|
0.3
|
%
|
0.1
|
%
|
||||||||||||
Total Revenue
|
(6.2
|
%)
|
(1.1
|
%)
|
(5.1
|
%)
|
(3.3
|
%)
|
(1.1
|
%)
|
(2.2
|
%)
|
||||||||||||
Operating Income from Continuing Operations
|
||||||||||||||||||||||||
Flavors & Fragrances
|
(19.6
|
%)
|
(0.7
|
%)
|
(18.9
|
%)
|
(9.2
|
%)
|
(0.9
|
%)
|
(8.3
|
%)
|
||||||||||||
Color
|
2.7
|
%
|
(0.8
|
%)
|
3.5
|
%
|
5.1
|
%
|
(1.2
|
%)
|
6.3
|
%
|
||||||||||||
Asia Pacific
|
(32.4
|
%)
|
0.1
|
%
|
(32.5
|
%)
|
(20.3
|
%)
|
0.4
|
%
|
(20.7
|
%)
|
||||||||||||
Corporate & Other
|
(33.9
|
%)
|
(0.2
|
%)
|
(33.7
|
%)
|
44.2
|
%
|
(0.2
|
%)
|
44.5
|
%
|
||||||||||||
Operating Income from Continuing Operations
|
1.6
|
%
|
(1.0
|
%)
|
2.7
|
%
|
(25.0
|
%)
|
(1.2
|
%)
|
(23.8
|
%)
|
||||||||||||
Diluted EPS from Continuing Operations
|
25.5
|
%
|
(1.8
|
%)
|
27.3
|
%
|
(20.8
|
%)
|
(1.6
|
%)
|
(19.2
|
%)
|
||||||||||||
Adjusted Operating Income
(1)
|
(8.6
|
%)
|
(0.9
|
%)
|
(7.8
|
%)
|
(0.5
|
%)
|
(1.1
|
%)
|
0.6
|
%
|
||||||||||||
Adjusted Diluted EPS
(1)
|
3.6
|
%
|
(1.2
|
%)
|
4.8
|
%
|
6.3
|
%
|
(1.3
|
%)
|
7.5
|
%
|
||||||||||||
(1)
|
Refer to the table above for a reconciliation of these non-GAAP measures.
|
PART II. |
OTHER INFORMATION
|
Period
|
Total number
of shares
purchased
|
Average
price paid
per share
|
Total number of
shares purchased as
part of a publicly
announced plan
(1)
|
Maximum number of
shares that may be
purchased under
publicly announced plans
|
||||||||||||
April 1 to April 30, 2017
|
-
|
$
|
-
|
-
|
1,268,911
|
|||||||||||
May 1 to May 31, 2017
|
178,800
|
80.41
|
178,800
|
1,090,111
|
||||||||||||
June 1 to June 30, 2017
|
-
|
-
|
-
|
1,090,111
|
||||||||||||
Total
|
178,800
|
$
|
80.41
|
178,800
|
(1) |
Shares were repurchased pursuant to the Board of Directors’ August 21, 2014, authorization to repurchase up to five million shares. Repurchases under this authorization do not have an expiration date. This authorization may be modified, suspended, or discontinued by the Board of Directors at any time.
|
SENSIENT TECHNOLOGIES CORPORATION
|
||||
Date:
|
August 7, 2017
|
By:
|
/s/ John J. Manning
|
|
John J. Manning, Vice President, General Counsel & Secretary
|
Date:
|
August 7, 2017
|
By:
|
/s/ Stephen J. Rolfs
|
|
Stephen J. Rolfs, Senior Vice President & Chief Financial Officer
|
Exhibit
|
Description
|
Incorporated by Reference From
|
Filed Herewith
|
|||
3.1
|
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)
|
||||
Amendment No. 1 to the Amended and Restated Sensient Technologies Corporation Rabbi Trust “B” Agreement
|
X
|
|||||
10.1(x)
|
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)
|
||||
Certifications of the Company’s Chairman, President & Chief Executive Officer and Senior Vice President & Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act
|
X
|
|||||
Certifications of the Company’s Chairman, President & Chief Executive Officer and Senior Vice President & Chief Financial Officer pursuant to 18 United States Code
§
1350
|
X
|
|||||
101
|
Interactive data files pursuant to Rule 405 of Regulation S-T
|
X |
1. |
Effective August 1, 2017, Section 1(b) of the Trust Agreement is hereby amended in its entirety to read as follows:
|
(b) |
Except as provided for in Section 1(e)(2), Section 2, Section 3, Section 4(b)(2) and Section 8 hereof, the Trust is irrevocable. The Company shall have no right or power, except as otherwise specified in the prior sentence, to direct the Trustee to return to the Company, or to divert to others, any of the Trust assets before all obligations to Executives pursuant to the terms of the Plans, and expenses pursuant to the terms of Section 8 of this Trust Agreement, have been satisfied. Notwithstanding the foregoing, prior to the occurrence of a Change of Control, in the event the Company determines that the sum of the cash surrender value of life insurance policies held in the Trust and the fair market value of all other assets in the Trust exceeds 110% of the assets needed by the Trust to pay all benefits owed to Executives under the Plans ("Excess Assets"), the Company may from time to time direct the Trustee in writing to transfer to the Company all or any portion of the Excess Assets. In making such transfer, the Trustee may rely on the Company's determination of the amount of any Excess Assets.
|
2. |
Except as expressly modified or varied by this Amendment, all of the terms, covenants and conditions of the Trust Agreement shall remain in full force and effect. If there is a conflict between the provisions of the Trust Agreement and the provisions of this Amendment, then the provisions of this Amendment shall control.
|
SENSIENT TECHNOLOGIES CORPORATION
|
|
By:
|
|
[Name]
|
|
Title:
|
|
Date:
|
|
WELLS FARGO BANK, N.A.
|
|
By:
|
|
[Name] | |
Title:
|
|
Date:
|
1. |
I have reviewed this quarterly report on Form 10-Q of Sensient Technologies Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d) |
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a) |
all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Paul Manning
|
|
Paul Manning, Chairman, President &
|
|
Chief Executive Officer
|
1. |
I have reviewed this quarterly report on Form 10-Q of Sensient Technologies Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c) |
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d) |
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a) |
all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Stephen J. Rolfs
|
|
Stephen J. Rolfs, Senior Vice President &
|
|
Chief Financial Officer
|
/s/ Paul Manning
|
|||
Name:
|
Paul Manning
|
||
Title:
|
Chairman, President & Chief Executive Officer
|
||
Date:
|
August 7, 2017
|
/s/ Stephen J. Rolfs
|
|||
Name:
|
Stephen J. Rolfs
|
||
Title:
|
Senior Vice President & Chief Financial Officer
|
||
Date:
|
August 7, 2017
|