UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549

FORM 10-Q
(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended:
September 30, 2023
  

OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from
to
  
Commission file number: 001-07626

Sensient Technologies Corporation
(Exact name of registrant as specified in its charter)

Wisconsin
  
39-0561070
(State or other jurisdiction of incorporation or organization)
  
(I.R.S. Employer Identification Number)

777 EAST WISCONSIN AVENUE, MILWAUKEE, WISCONSIN 53202-5304
(Address of principal executive offices)

Registrant’s telephone number, including area code:
(414) 271-6755

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.10 per share
SXT
New York Stock Exchange LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days.Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer   ☒
Accelerated Filer ☐
Non-Accelerated Filer ☐
Smaller Reporting Company ☐
Emerging Growth Company ☐
  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐    No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class
  
Outstanding at October 31, 2023
Common Stock, par value $0.10 per share
  
42,249,509

SENSIENT TECHNOLOGIES CORPORATION
INDEX

      
Page No.
       
PART I. FINANCIAL INFORMATION:
  
       
 
Item 1.
Financial Statements:
  
 

 
  
 

1
 

 
  
 

2
 
 
 
  
 

3
 

 
  
 

4
 
 
 
  
 

5
   
 
  
 

6
   
 
  
 
Item 2.
 13
 

 

 
Item 3.
17
   
 
  
 
Item 4.
17
       
PART II. OTHER INFORMATION:
  
       
 
Item 1.
18
   
 
  
 
Item 1A.
18
   
 
  
 
Item 2.
18
   
 
  
  Item 5.
 18
   
 
  
 
Item 6.
18
   
 
  
 

19
   
 
  
 

20

PART I.
FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS

SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands except per share amounts)
(Unaudited)

 
Three Months
Ended September 30,
    
Nine Months
Ended September 30,
  
   
2023
    
2022
    
2023
    
2022
  
                         
Revenue
  
$
363,829
    
$
361,076
    
$
1,107,148
    
$
1,088,303
  
Cost of products sold
    
250,202
      
239,318
      
746,681
      
710,696
  
Selling and administrative expenses
    
69,096
      
74,265
      
213,507
      
222,081
  
Operating income
    
44,531
      
47,493
      
146,960
      
155,526
  
Interest expense
    
6,294
      
3,672
      
18,648
      
9,748
  
Earnings before income taxes
    
38,237
      
43,821
      
128,312
      
145,778
  
Income taxes
    
6,694
      
7,773
      
29,085
      
34,012
  
Net earnings
  
$
31,543
    
$
36,048
    
$
99,227
    
$
111,766
  
                                 
Weighted average number of common shares outstanding:
                                
Basic
    
42,045
      
41,896
      
42,020
      
41,885
  
Diluted
    
42,233
      
42,242
      
42,241
      
42,199
  
                                 
Earnings per common share:
                                
Basic
  
$
0.75
    
$
0.86
    
$
2.36
    
$
2.67
  
Diluted
  
$
0.75
    
$
0.85
    
$
2.35
    
$
2.65
  
                                 
Dividends declared per common share
  
$
0.41
    
$
0.41
    
$
1.23
    
$
1.23
  

See accompanying notes to consolidated condensed financial statements.

1
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)

 
Three Months
Ended September 30,
    
Nine Months
Ended September 30,
  
   
2023
    
2022
    
2023
    
2022
  
                         
Comprehensive income
  
$
18,229
    
$
8,997
    
$
109,380
    
$
56,171
  

See accompanying notes to consolidated condensed financial statements.

2
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)


  
September 30,
2023
(Unaudited)
    
December 31,
2022
  
Assets
           
Current Assets:
            
Cash and cash equivalents
  
$
31,985
    
$
20,921
  
Trade accounts receivable
    
284,668
      
302,109
  
Inventories
    
587,024
      
564,110
  
Prepaid expenses and other current assets
    
41,477
      
47,640
  
                 
Total current assets
    
945,154
      
934,780
  
                 
Other assets
    
94,646
      
96,609
  
Deferred tax assets
    
30,857
      
32,717
  
Intangible assets, net
    
17,352
      
18,600
  
Goodwill
    
415,618
      
415,715
  
Property, Plant, and Equipment:
                
Land
    
31,269
      
31,444
  
Buildings
    
336,152
      
322,268
  
Machinery and equipment
    
759,191
      
722,294
  
Construction in progress
    
71,223
      
65,809
  
     
1,197,835
      
1,141,815
  
Less accumulated depreciation
    
(691,286
)
    
(658,622
)
     
506,549
      
483,193
  
                 
Total assets
  
$
2,010,176
    
$
1,981,614
  
                 
Liabilities and Shareholders’ Equity
                
                 
Current Liabilities:
                
Trade accounts payable
  
$
110,973
    
$
142,365
  
Accrued salaries, wages, and withholdings from employees
    
26,818
      
43,738
  
Other accrued expenses
    
55,676
      
51,231
  
Income taxes
    
7,543
      
14,446
  
Short-term borrowings
    
22,807
      
20,373
  
                 
Total current liabilities
    
223,817
      
272,153
  
                 
Deferred tax liabilities
    
16,202
      
15,977
  
Other liabilities
    
37,115
      
37,191
  
Accrued employee and retiree benefits
    
26,830
      
26,364
  
Long-term debt
    
648,556
      
630,331
  
Shareholders’ Equity:
                
Common stock
    
5,396
      
5,396
  
Additional paid-in capital
    
116,775
      
124,043
  
Earnings reinvested in the business
    
1,750,027
      
1,702,700
  
Treasury stock, at cost
    
(624,007
)
    
(631,853
)
Accumulated other comprehensive loss
    
(190,535
)
    
(200,688
)
                 
Total shareholders’ equity
    
1,057,656
      
999,598
  
                 
Total liabilities and shareholders’ equity
  
$
2,010,176
    
$
1,981,614
  

See accompanying notes to consolidated condensed financial statements.

3
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 
Nine Months
Ended September 30,
  
   
2023
    
2022
  
             
Cash flows from operating activities:
            
Net earnings
  
$
99,227
    
$
111,766
  
Adjustments to arrive at net cash provided by operating activities:
                
Depreciation and amortization
    
43,360
      
39,262
  
Share-based compensation expense
    
7,285
      
12,476
  
Net (gain) loss on assets
    
(81
)
    
283
  
Deferred income taxes
    
2,082
      
20,465
  
Changes in operating assets and liabilities:
                
Trade accounts receivable
    
18,830
      
(39,520
)
Inventories
    
(21,455
)
    
(112,021
)
Prepaid expenses and other assets
    
842
      
(39,598
)
Accounts payable and other accrued expenses
    
(20,572
)
    
24,110
  
Accrued salaries, wages, and withholdings from employees
    
(16,749
)
    
1,819
  
Income taxes
    
(6,536
)
    
(4,342
)
Other liabilities
    
587
      
198
  
                 
Net cash provided by operating activities
    
106,820
      
14,898
  
                 
Cash flows from investing activities:
                
Acquisition of property, plant, and equipment
    
(67,718
)
    
(51,703
)
Proceeds from sale of assets
    
130
      
94
  
Acquisition of new business
     -       (1,048 )
Other investing activities
    
2,036
      
947
  
                 
Net cash used in investing activities
    
(65,552
)
    
(51,710
)
                 
Cash flows from financing activities:
                
Proceeds from additional borrowings
    
197,577
      
187,715
  
Debt payments
    
(174,083
)
    
(87,657
)
Dividends paid
    
(51,900
)
    
(51,681
)
Other financing activities
    
(8,034
)
    
(2,056
)
                 
Net cash (used in) provided by financing activities
    
(36,440
)
    
46,321
  
                 
Effect of exchange rate changes on cash and cash equivalents
    
6,236
      
11,330
  
                 
Net increase in cash and cash equivalents
    
11,064
      
20,839
  
Cash and cash equivalents at beginning of period
    
20,921
      
25,740
  
Cash and cash equivalents at end of period
  
$
31,985
    
$
46,579
  

See accompanying notes to consolidated condensed financial statements.

4
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In thousands, except share and per share amounts)
(Unaudited)

 

   
   
   
Treasury Stock
    
   

 
Three Months Ended September 30, 2023
  
Common
Stock
    
Additional
Paid-In
Capital
    
Earnings
Reinvested
in the
Business
    
Shares
    
Amount
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Total
Equity
  
Balances at June 30, 2023
  
$
5,396
    
$
114,330
    
$
1,735,807
      
11,909,833
    
$
(624,048
)
  
$
(177,221
)
  
$
1,054,264
  
Net earnings
    
-
      
-
      
31,543
      
-
      
-
      
-
      
31,543
  
Other comprehensive loss
    
-
      
-
      
-
      
-
      
-
      
(13,314
)
    
(13,314
)
Cash dividends paid – $0.41 per share
    
-
      
-
      
(17,323
)
    
-
      
-
      
-
      
(17,323
)
Share-based compensation
    
-
      
2,519
      
-
      
-
      
-
      
-
      
2,519
  
Non-vested stock issued upon vesting
     -       (67 )     -       (1,285 )     67       -       -  
Other
     -       (7 )     -       492       (26 )     -       (33 )
Balances at September 30, 2023
  
$
5,396
    
$
116,775
    
$
1,750,027
      
11,909,040
    
$
(624,007
)
  
$
(190,535
)
  
$
1,057,656
  

Three Months Ended September 30, 2022
                                          
Balances at June 30, 2022
  
$
5,396
    
$
116,596
    
$
1,672,000
      
12,058,773
    
$
(631,853
)
  
$
(203,172
)
  
$
958,967
  
Net earnings
    
-
      
-
      
36,048
      
-
      
-
      
-
      
36,048
  
Other comprehensive loss
    
-
      
-
      
-
      
-
      
-
      
(27,051
)
    
(27,051
)
Cash dividends paid – $0.41 per share
    
-
      
-
      
(17,235
)
    
-
      
-
      
-
      
(17,235
)
Share-based compensation
    
-
      
3,785
      
-
      
-
      
-
      
-
      
3,785
  
Balances at September 30, 2022
  
$
5,396
    
$
120,381
    
$
1,690,813
      
12,058,773
    
$
(631,853
)
  
$
(230,223
)
  
$
954,514
  

Nine Months Ended September 30, 2023  
                                         
Balances at December 31, 2022
  
$
5,396
    
$
124,043
    
$
1,702,700
      
12,058,773
    
$
(631,853
)
  
$
(200,688
)
  
$
999,598
  
Net earnings
    
-
      
-
      
99,227
      
-
      
-
      
-
      
99,227
  
Other comprehensive income
    
-
      
-
      
-
      
-
      
-
      
10,153
      
10,153
  
Cash dividends paid – $1.23 per share
    
-
      
-
      
(51,900
)
    
-
      
-
      
-
      
(51,900
)
Share-based compensation
    
-
      
7,285
      
-
      
-
      
-
      
-
      
7,285
  
Non-vested stock issued upon vesting
    
-
      
(12,686
)
    
-
      
(242,110
)
    
12,686
      
-
      
-
  
Benefit plans
    
-
      
375
      
-
      
(18,172
)
    
952
      
-
      
1,327
  
Other
    
-
      
(2,242
)
    
-
      
110,549
      
(5,792
)
    
-
      
(8,034
)
Balances at September 30, 2023
  
$
5,396
    
$
116,775
    
$
1,750,027
      
11,909,040
    
$
(624,007
)
  
$
(190,535
)
  
$
1,057,656
  

Nine Months Ended September 30, 2022  
                                         
Balances at December 31, 2021
  
$
5,396
    
$
111,352
    
$
1,630,713
      
12,107,549
    
$
(634,408
)
  
$
(174,628
)
  
$
938,425
  
Net earnings
    
-
      
-
      
111,766
      
-
      
-
      
-
      
111,766
  
Other comprehensive loss
    
-
      
-
      
-
      
-
      
-
      
(55,595
)
    
(55,595
)
Cash dividends paid – $1.23 per share
    
-
      
-
      
(51,681
)
    
-
      
-
      
-
      
(51,681
)
Share-based compensation
    
-
      
12,476
      
-
      
-
      
-
      
-
      
12,476
  
Non-vested stock issued upon vesting
    
-
      
(3,239
)
    
-
      
(61,821
)
    
3,239
      
-
      
-
  
Benefit plans
    
-
      
560
      
-
      
(11,786
)
    
618
      
-
      
1,178
  
Other
    
-
      
(768
)
    
15
      
24,831
      
(1,302
)
    
-
      
(2,055
)
Balances at September 30, 2022
  
$
5,396
    
$
120,381
    
$
1,690,813
      
12,058,773
    
$
(631,853
)
  
$
(230,223
)
  
$
954,514
  

See accompanying notes to consolidated condensed financial statements.

5
SENSIENT TECHNOLOGIES CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1.
Accounting Policies

In the opinion of Sensient Technologies Corporation (the Company), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of September 30, 2023, and the results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended September 30, 2023 and 2022, and cash flows for the nine months ended September 30, 2023 and 2022. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred.

Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2022, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change.

2.
Acquisition

On October 3, 2022, the Company acquired Endemix Doğal Maddeler A.Ş. and Teknoloji Yatırımları ve Danışmanlık Sanayi ve Ticaret A.Ş. (collectively, Endemix), a natural colors business located in Turkey. The Company paid $23.3 million in cash for this acquisition, which is net of $1.3 million in debt assumed, with $1.7 million of such amount being held back by the Company for 12 months to satisfy any 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 $8.9 million and identified intangible assets, principally technological know-how and customer relationships, of $4.9 million. The remaining $9.5 million was allocated to goodwill. This business is part of the Color segment.

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. 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 as economic conditions change. Additionally, as the Company only has one portfolio segment, there are not different risks between portfolios. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible.

The following table summarizes the changes in the allowance for doubtful accounts during the three and nine month periods ended September 30, 2023 and 2022:

(In thousands)
Three Months Ended September 30, 2023
  
Allowance for
Doubtful Accounts
  
Balance at June 30, 2023
  
$
4,293
  
Provision for expected credit losses
    
13
  
Accounts written off
    
(244
)
Translation and other activity
    
(76
)
Balance at September 30, 2023
  
$
3,986
  

(In thousands)
Three Months Ended September 30, 2022
  
Allowance for
Doubtful Accounts
  
Balance at June 30, 2022
  
$
4,494
  
Provision for expected credit losses
    
51
  
Accounts written off
    
(33
)
Translation and other activity
    
(105
)
Balance at September 30, 2022
  
$
4,407
  

(In thousands)
Nine Months Ended September 30, 2023
  
Allowance for
Doubtful Accounts
  
Balance at December 31, 2022
  
$
4,436
  
Provision for expected credit losses
    
504
  
Accounts written off
    
(1,051
)
Translation and other activity
    
97
Balance at September 30, 2023
  
$
3,986
  

(In thousands)
Nine Months Ended September 30, 2022
  
Allowance for
Doubtful Accounts
  
Balance at December 31, 2021
  
$
4,877
  
Provision for expected credit losses
    
883
  
Accounts written off
     (1,129 )
Translation and other activity
     (224 )
Balance at September 30, 2022
   $ 4,407  

6
4.
Inventories
 
At September 30, 2023, and December 31, 2022, inventories included finished and in-process products totaling $414.8 million and $385.2 million, respectively, and raw materials and supplies of $172.2 million and $178.9 million, respectively.

5.
Debt

On May 31, 2023, the Company entered into an agreement to issue $75 million and €40 million in five-year, fixed-rate, senior notes at coupon rates of 4.94% and 4.15%, respectively. The notes were issued on May 31, 2023, and proceeds have been used to repay a portion of existing indebtedness under the Company’s Third Amended and Restated Credit Agreement, as amended. The notes will mature in May 2028.

On August 31, 2023, the Company entered into Amendment No. 10 (Amendment) to the Receivables Purchase Agreement, dated as of October 3, 2016.  The Amendment extended the termination date from August 31, 2023 to August 30, 2024.

6.
Fair Value

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. The carrying values of the Company’s cash and cash equivalents, trade accounts receivable, trade accounts payable, accrued expenses, and short-term borrowings were approximately the same as the fair values as of September 30, 2023 and December 31, 2022. 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 $1.0 million and a liability of $0.2 million as of September 30, 2023 and December 31, 2022, respectively. The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2 inputs). The carrying value of the long-term debt at September 30, 2023 and December 31, 2022 was $648.8 million and $630.8 million, respectively. The fair value of the long-term debt at September 30, 2023 and December 31, 2022 was $639.5 million and $622.2 million, respectively.

7.
Segment Information

The Company evaluates performance based on operating income before share-based compensation, 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.

7
The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. The Company’s three reportable segments are the 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 characteristics to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, such as colors, flavors, coatings, and nutraceutical ingredients; 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 in the Asia Pacific countries. The Company’s corporate expenses and share-based compensation are included in the “Corporate & Other” category.

Operating results by segment for the periods presented are as follows:

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia
Pacific
    
Corporate &
Other
    
Consolidated
  
Three months ended September 30, 2023:
                              
Revenue from external customers
  
$
185,029
    
$
142,026
    
$
36,774
    
$
-
    
$
363,829
  
Intersegment revenue
    
5,968
   
2,913
   
-
      
-
      
8,881
Total revenue
  
$
190,997
    
$
144,939
    
$
36,774
    
$
-
    
$
372,710
  
                                         
Operating income (loss)
  
$
23,078
    
$
22,925
    
$
8,095
    
$
(9,567
)
  
$
44,531
  
Interest expense
    
-
      
-
      
-
      
6,294
      
6,294
  
Earnings (loss) before income taxes
  
$
23,078
    
$
22,925
    
$
8,095
    
$
(15,861
)
  
$
38,237
  
                                         
Three months ended September 30, 2022:
                                        
Revenue from external customers
  
$
181,397
    
$
144,570
    
$
35,109
    
$
-
    
$
361,076
  
Intersegment revenue
    
5,649
   
6,899
   
112
   
-
      
12,660
Total revenue
  
$
187,046
    
$
151,469
    
$
35,221
    
$
-
    
$
373,736
  
                                         
Operating income (loss)
  
$
26,337
    
$
28,200
    
$
6,952
    
$
(13,996
)
  
$
47,493
  
Interest expense
    
-
      
-
      
-
      
3,672
      
3,672
  
Earnings (loss) before income taxes
  
$
26,337
    
$
28,200
    
$
6,952
    
$
(17,668
)
  
$
43,821
  

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia
Pacific
    
Corporate &
Other
    
Consolidated
  
Nine months ended September 30, 2023:
                              
Revenue from external customers
  
$
538,753
    
$
455,507
    
$
112,888
    
$
-
    
$
1,107,148
  
Intersegment revenue
    
19,380
   
11,056
   
-
      
-
      
30,436
Total revenue
  
$
558,133
    
$
466,563
    
$
112,888
    
$
-
    
$
1,137,584
  
                                         
Operating income (loss)
  
$
69,714
    
$
84,027
    
$
24,911
    
$
(31,692
)
  
$
146,960
  
Interest expense
    
-
      
-
      
-
      
18,648
      
18,648
  
Earnings (loss) before income taxes
  
$
69,714
    
$
84,027
    
$
24,911
    
$
(50,340
)
  
$
128,312
  
                                         
Nine months ended September 30, 2022:
                                        
Revenue from external customers
  
$
539,014
    
$
440,568
    
$
108,721
    
$
-
    
$
1,088,303
  
Intersegment revenue
    
20,096
   
15,607
   
293
   
-
      
35,996
Total revenue
  
$
559,110
    
$
456,175
    
$
109,014
    
$
-
    
$
1,124,299
  
                                         
Operating income (loss)
  
$
83,929
    
$
90,035
    
$
22,877
    
$
(41,315
)
  
$
155,526
  
Interest expense
    
-
      
-
      
-
      
9,748
      
9,748
  
Earnings (loss) before income taxes
  
$
83,929
    
$
90,035
    
$
22,877
    
$
(51,063
)
  
$
145,778
  

8
Product Lines

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Three months ended September 30, 2023:
                        
Flavors, Extracts & Flavor Ingredients
  
$
124,697
    
$
-
    
$
-
    
$
124,697
  
Natural Ingredients
    
66,300
      
-
      
-
      
66,300
  
Food & Pharmaceutical Colors
    
-
      
107,723
      
-
      
107,723
  
Personal Care
    
-
      
37,216
      
-
      
37,216
  
Asia Pacific
    
-
      
-
      
36,774
      
36,774
  
Intersegment Revenue
    
(5,968
)
    
(2,913
)
    
-
   
(8,881
)
Total revenue from external customers
  
$
185,029
    
$
142,026
    
$
36,774
    
$
363,829
  
                                 
Three months ended September 30, 2022:
                                
Flavors, Extracts & Flavor Ingredients
  
$
123,945
    
$
-
    
$
-
    
$
123,945
  
Natural Ingredients
    
63,101
      
-
      
-
      
63,101
  
Food & Pharmaceutical Colors
    
-
      
111,194
      
-
      
111,194
  
Personal Care
    
-
      
39,689
      
-
      
39,689
  
Inks
    
-
      
586
      
-
      
586
  
Asia Pacific
    
-
      
-
      
35,221
      
35,221
  
Intersegment Revenue
    
(5,649
)
    
(6,899
)
    
(112
)
    
(12,660
)
Total revenue from external customers
  
$
181,397
    
$
144,570
    
$
35,109
    
$
361,076
  

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Nine months ended September 30, 2023:
                        
Flavors, Extracts & Flavor Ingredients
  
$
383,210
    
$
-
    
$
-
    
$
383,210
  
Natural Ingredients
    
174,923
      
-
      
-
      
174,923
  
Food & Pharmaceutical Colors
    
-
      
346,635
      
-
      
346,635
  
Personal Care
    
-
      
119,928
      
-
      
119,928
  
Asia Pacific
    
-
      
-
      
112,888
      
112,888
  
Intersegment Revenue
    
(19,380
)
    
(11,056
)
    
-
   
(30,436
)
Total revenue from external customers
  
$
538,753
    
$
455,507
    
$
112,888
    
$
1,107,148
  
                                 
Nine months ended September 30, 2022:
                                
Flavors, Extracts & Flavor Ingredients
  
$
381,041
    
$
-
    
$
-
    
$
381,041
  
Natural Ingredients
    
178,069
      
-
      
-
      
178,069
  
Food & Pharmaceutical Colors
    
-
      
328,087
      
-
      
328,087
  
Personal Care
    
-
      
126,651
      
-
      
126,651
  
Inks
    
-
      
1,437
      
-
      
1,437
  
Asia Pacific
    
-
      
-
      
109,014
      
109,014
  
Intersegment Revenue
    
(20,096
)
    
(15,607
)
    
(293
)
    
(35,996
)
Total revenue from external customers
  
$
539,014
    
$
440,568
    
$
108,721
    
$
1,088,303
  

9
Geographic Markets

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Three months ended September 30, 2023:
                        
North America
  
$
147,992
    
$
75,417
    
$
-
    
$
223,409
  
Europe
    
25,298
      
36,816
      
57
      
62,171
  
Asia Pacific
    
4,881
      
13,344
      
35,791
      
54,016
  
Other
    
6,858
      
16,449
      
926
      
24,233
  
Total revenue from external customers
  
$
185,029
    
$
142,026
    
$
36,774
    
$
363,829
  
                                 
Three months ended September 30, 2022:
                                
North America
  
$
142,097
    
$
74,220
    
$
27
    
$
216,344
  
Europe
    
26,795
      
34,591
      
44
      
61,430
  
Asia Pacific
    
7,091
      
16,770
      
34,433
      
58,294
  
Other
    
5,414
      
18,989
      
605
      
25,008
  
Total revenue from external customers
  
$
181,397
    
$
144,570
    
$
35,109
    
$
361,076
  

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Nine months ended September 30, 2023:
                        
North America
  
$
417,095
    
$
231,348
    
$
124
    
$
648,567
  
Europe
    
86,092
      
124,465
      
184
      
210,741
  
Asia Pacific
    
16,372
      
47,801
      
110,380
      
174,553
  
Other
    
19,194
      
51,893
      
2,200
      
73,287
  
Total revenue from external customers
  
$
538,753
    
$
455,507
    
$
112,888
    
$
1,107,148
  
                                 
Nine months ended September 30, 2022:
                                
North America
  
$
407,684
    
$
223,508
    
$
87
    
$
631,279
  
Europe
    
90,565
      
116,184
      
175
      
206,924
  
Asia Pacific
    
23,628
      
49,199
      
105,222
      
178,049
  
Other
    
17,137
      
51,677
      
3,237
      
72,051
  
Total revenue from external customers
  
$
539,014
    
$
440,568
    
$
108,721
    
$
1,088,303
 

8.
Retirement Plans
 
The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows:
 

 
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
(In thousands)
  
2023
    
2022
    
2023
    
2022
  
Service cost
  
$
372
    
$
404
    
$
1,111
    
$
1,219
  
Interest cost
    
415
      
235
      
1,237
      
719
  
Expected return on plan assets
    
(248
)
    
(194
)
    
(732
)
    
(598
)
Recognized actuarial loss
    
(138
)
    
12
      
(415
)
    
36
  
Total defined benefit expense
  
$
401
    
$
457
    
$
1,201
    
$
1,376
  
 
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.

9.
Derivative Instruments and Hedging Activity

The Company may use forward exchange contracts and foreign currency denominated debt to manage its exposure to foreign exchange risk in order to reduce the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company’s primary hedging activities and their accounting treatment are summarized below.

Forward exchange contracts – Certain forward exchange contracts have been designated as cash flow hedges. The Company had $16.1 million and $70.1 million of forward exchange contracts designated as cash flow hedges outstanding as of September 30, 2023 and December 31, 2022, respectively. For the three months ended September 30, 2023, gains of $0.8 million 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. For the three months ended September 30, 2022, amounts reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the underlying transactions’ impact on earnings in the same period were not material. For the nine months ended September 30, 2023 and 2022, gains of $1.4 million and $0.6 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 addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges. The results of these transactions were not material to the financial statements of the Company.

10
Net investment hedges – The Company has designated certain foreign currency denominated long-term borrowings as partial hedges of the Company’s foreign currency net asset positions. As of September 30, 2023 and December 31, 2022, the total value of the Company’s net investment hedges was $328.8 million and $315.5 million, respectively. These net investment hedges included 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 Other Comprehensive Income (OCI). For the three months ended September 30, 2023 and 2022, the impact of foreign exchange rates on these debt instruments decreased debt by $11.0 million and $18.4 million, respectively, which has been recorded as foreign currency translation in OCI. For the nine months ended September 30, 2023 and 2022, the impact of foreign exchange rates on these debt instruments decreased debt by $2.8 million and $42.4 million, respectively, which has been recorded as foreign currency translation in OCI.

10.
Income Taxes

The effective income tax rates for the three months ended September 30, 2023 and 2022, were 17.5% and 17.7%, respectively. For the nine months ended September 30, 2023 and 2022, the effective income tax rates were 22.7% and 23.3%, respectively. The effective tax rates for the three and nine months ended September 30, 2023 and 2022, were impacted by changes in estimates associated with changes in valuation allowances, the finalization of prior year foreign tax items, and the mix of foreign earnings.

11.
Accumulated Other Comprehensive Income

The following table summarizes the changes in OCI during the three and nine month periods ended September 30, 2023 and 2022:

(In thousands)
  
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at December 31, 2022
  
$
(599
)
  
$
(1,792
)
  
$
(198,297
)
  
$
(200,688
)
Other comprehensive income before reclassifications
    
2,974
      
-
      
8,977
      
11,951
  
Amounts reclassified from OCI
    
(1,432
)
    
(366
)
    
-
      
(1,798
)
Balances at September 30, 2023
  
$
943
    
$
(2,158
)
  
$
(189,320
)
  
$
(190,535
)

(In thousands)
  
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at June 30, 2023
  
$
1,997
    
$
(2,036
)
  
$
(177,182
)
  
$
(177,221
)
Other comprehensive loss before reclassifications
    
(239
)
    
-
      
(12,138
)
    
(12,377
)
Amounts reclassified from OCI
    
(815
)
    
(122
)
    
-
      
(937
)
Balances at September 30, 2023
  
$
943
    
$
(2,158
)
  
$
(189,320
)
  
$
(190,535
)

(In thousands)
  
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at December 31, 2021
  
$
206
    
$
(353
)
  
$
(174,481
)
  
$
(174,628
)
Other comprehensive income (loss) before reclassifications
    
516
      
-
      
(55,514
)
    
(54,998
)
Amounts reclassified from OCI
    
(621
)
    
24
      
-
      
(597
)
Balances at September 30, 2022
  
$
101
 
$
(329
)
  
$
(229,995
)
  
$
(230,223
)

11
(In thousands)
 
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at June 30, 2022
  
$
(152
)
  
$
(337
)
  
$
(202,683
)
  
$
(203,172
)
Other comprehensive income (loss) before reclassifications
    
380
      
-
      
(27,312
)
    
(26,932
)
Amounts reclassified from OCI
    
(127
)
    
8
      
-
      
(119
)
Balances at September 30, 2022
  
$
101
    
$
(329
)
  
$
(229,995
)
  
$
(230,223
)


(1)
Cash Flow Hedges and Pension Items are net of tax.

12.
Commitments and Contingencies


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.

13.
Subsequent Events

On October 19, 2023, the Company announced its quarterly dividend of $0.41 per share would be payable on December 1, 2023.

12
ITEM 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements that reflect management’s current assumptions and estimates of future economic circumstances, industry conditions, Company performance, and financial results. Forward-looking statements include statements in the future tense, statements referring to any period after September 30, 2023, and statements including the terms “expect,” “believe,” “anticipate,” and other similar terms that express expectations as to future events or conditions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for such forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors that could cause actual events to differ materially from those expressed in the forward-looking statements. A variety of factors could cause the Company’s actual results and experience to differ materially from the anticipated results. These factors and assumptions include, among others, the Company’s ability to manage economic and capital market conditions and the impact of recessions and economic downturns; the impact of macroeconomic and geopolitical volatility, including inflation and shortages impacting the availability and cost of raw materials, energy, and other supplies; the availability and cost of labor, logistics, and transportation; the impact and uncertainty created by the COVID-19 pandemic and efforts to manage it on the global economy, including, but not limited to, its effects on our employees, facilities, customers, and suppliers, governmental regulations and restrictions, and general economic conditions; the uncertain impacts of the ongoing conflict between Russia and Ukraine on our supply chain, input costs, including energy and transportation, and on general economic conditions; the pace and nature of new product introductions by the Company and the Company’s customers; the Company’s ability to anticipate and respond to changing consumer preferences and changing technologies; the Company’s ability to successfully implement its growth strategies; the outcome of the Company’s various productivity-improvement and cost-reduction efforts, acquisition and divestiture activities, and operational improvement plan; industry, regulatory, legal, and economic factors related to the Company’s domestic and international business; the effects of tariffs, trade barriers, and disputes; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; currency exchange rate fluctuations; and the matters discussed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Except to the extent required by applicable law, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

OVERVIEW

Revenue
Revenue was $363.8 million and $361.1 million for the three months ended September 30, 2023 and 2022, respectively. The increase in revenue for the three months ended September 30, 2023, was primarily due to increased pricing, offset by lower volumes. Revenue was $1.1 billion for both the nine months ended September 30, 2023 and 2022. Revenue for the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022, was impacted by higher prices, partially offset by lower volumes. For the three and nine months ended September 30, 2023, the impact of foreign exchange rates increased consolidated revenue by approximately 3% and 1%, respectively.

Gross Margin
The Company’s gross margin was 31.2% and 33.7% for the three months ended September 30, 2023 and 2022, respectively. The Company’s gross margin was 32.6% and 34.7% for the nine months ended September 30, 2023 and 2022, respectively. The decrease in gross margin for both the three and nine months ended September 30, 2023, was primarily due to the lower volumes, higher input costs, and unfavorable product mix, partially offset by higher prices.

Selling and Administrative Expenses
Selling and administrative expense as a percent of revenue was 19.0% and 20.6% for the three months ended September 30, 2023 and 2022, respectively. Selling and administrative expense as a percent of revenue was 19.3% and 20.4% for the nine months ended September 30, 2023 and 2022, respectively. The decrease in selling and administrative expense as a percent of revenue for the three and nine months ended September 30, 2023, was primarily due to lower performance-based compensation expense in 2023.

Operating Income
Operating income was $44.5 million and $47.5 million for the three months ended September 30, 2023 and 2022, respectively. Operating margins were 12.2% and 13.2% for the three months ended September 30, 2023 and 2022, respectively. The decreases in operating income and operating margin were primarily due to lower volumes, higher input costs, and unfavorable product mix, partially offset by higher pricing and lower performance-based compensation expense in 2023.

13
Operating income was $147.0 million and $155.5 million for the nine months ended September 30, 2023 and 2022, respectively. Operating margins were 13.3% and 14.3% for the nine months ended September 30, 2023 and 2022, respectively. The decreases in operating income and operating margin were primarily due to higher input costs, lower volumes, and unfavorable product mix, partially offset by higher pricing and lower performance-based compensation expense in 2023.

Interest Expense
Interest expense was $6.3 million and $3.7 million for the three months ended September 30, 2023 and 2022, respectively, and $18.6 million and $9.7 million for the nine months ended September 30, 2023 and 2022, respectively. The increase in interest expense for the three and nine months ended September 30, 2023, was primarily due to an increase in the average interest rate and average debt outstanding.

Income Taxes
The effective income tax rates for the three months ended September 30, 2023 and 2022, were 17.5% and 17.7%, respectively. The effective income tax rates for the nine months ended September 30, 2023 and 2022, were 22.7% and 23.3%, respectively. The effective tax rates for the three and nine months ended September 30, 2023 and 2022, were impacted by changes in estimates associated with changes in valuation allowances, the finalization of prior year foreign tax items, and the mix of foreign earnings.

Acquisition
On October 3, 2022, the Company acquired Endemix Doğal Maddeler A.Ş. and Teknoloji Yatırımları ve Danışmanlık Sanayi ve Ticaret A.Ş. (collectively, Endemix), a natural colors business located in Turkey. The Company paid $23.3 million in cash for this acquisition, which is net of $1.3 million in debt assumed, with $1.7 million of such amount being held back by the Company for 12 months to satisfy any indemnification claims that may arise. This business is part of the Color segment.

NON-GAAP FINANCIAL MEASURES

Within the following table, the Company reports certain non-GAAP financial measures, including percentage changes in revenue, operating income, and diluted earnings per share on a local currency basis, which eliminate the effects that result from translating its international operations into U.S. dollars.

The Company has included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this report. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends, and the Company believes the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

The following table summarizes the percentage change for the results of the three and nine months ended September 30, 2023, compared to the results for the three and nine months ended September 30, 2022, in the respective financial measures.
Three Months Ended September 30, 2023
    
Nine Months Ended September 30, 2023
  
Revenue
  
Total
    
Foreign
Exchange
Rates
    
Adjusted
Local
Currency
    
Total
    
Foreign
Exchange
Rates
    
Adjusted
Local
Currency
  
Flavors & Extracts
  
2.1
%
  
2.6
%
    
(0.5
%)
 
(0.2
%)
 
0.9
%

(1.1
%)
Color

(4.3
%)
  
3.9
%
  
(8.2
%)
 
2.3
%

1.2
%
 
1.1
%
Asia Pacific

4.4
%

0.1
%
  
4.3
%
 
3.6
%

(2.5
%)

6.1
%
Total Revenue
 
0.8
%
 
2.8
%
  
(2.0
%)

1.7
%
    
0.7
%

1.0
%



   

   

   
   
 
   

   
Operating Income

   

   

   



 
   

 
Flavors & Extracts

(12.4
%)

1.2
%
    
(13.6
%)

(16.9
%)
  
0.6
%

(17.5
%)
Color
 
(18.7
%)
 
4.7
%

(23.4
%)
    
(6.7
%)

1.1
%
 
(7.8
%)
Asia Pacific
 
16.4
%

0.6
%

15.8
%
 
8.9
%

(2.7
%)

11.6
%
Corporate & Other

(31.6
%)

0.0
%

(31.6
%)
 
(23.3
%)

0.0
%

(23.3
%)
Total Operating Income
 
(6.2
%)
 
3.6
%

(9.8
%)
 
(5.5
%)

0.6
%

(6.1
%)
Diluted Earnings per Share
 
(11.8
%)

3.5
%
 
(15.3
%)

(11.3
)%

0.4
%

(11.7
%)

14
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 before share-based compensation and other costs (which are reported in Corporate & Other), interest expense, and income taxes.

The Company’s reportable segments consist of the Flavors & Extracts, Color, and Asia Pacific segments.

Flavors & Extracts
Flavors & Extracts segment revenue was $191.0 million and $187.0 million for the three months ended September 30, 2023 and 2022, respectively, an increase of approximately 2%. The increase was primarily a result of higher revenue in Natural Ingredients due to higher selling prices and volumes. Foreign exchange rates increased segment revenue by approximately 3%.

Flavors & Extracts segment revenue was $558.1 million and $559.1 million for the nine months ended September 30, 2023 and 2022, respectively. The decrease was primarily a result of lower revenue in Natural Ingredients, partially offset by higher revenue in Flavors, Extracts & Flavor Ingredients. The lower revenue in Natural Ingredients was primarily due to lower volumes, partially offset by higher selling prices. The higher revenue in Flavors, Extracts & Flavor Ingredients was primarily due to higher selling prices and the favorable impact of foreign exchange rates that increased segment revenue by approximately 1%, partially offset by lower volumes.

Flavors & Extracts segment operating income was $23.1 million and $26.3 million for the three months ended September 30, 2023 and 2022, respectively, a decrease of approximately 12%. The decrease was primarily a result of lower segment operating income in Natural Ingredients and Flavors, Extracts & Flavor Ingredients. The lower segment operating income in Natural Ingredients was primarily a result of higher raw material costs and an unfavorable product mix, partially offset by higher selling prices. The lower segment operating income in Flavors, Extracts & Flavor Ingredients was primarily a result of higher raw material costs, lower volumes, and an unfavorable product mix, partially offset by higher selling prices. Foreign exchange rates increased segment operating income by approximately 1%. Segment operating income as a percent of revenue was 12.1% in the current quarter compared to 14.1% in the prior year’s comparable quarter.

Flavors & Extracts segment operating income was $69.7 million and $83.9 million for the nine months ended September 30, 2023 and 2022, respectively, a decrease of approximately 17%. The decrease was primarily a result of lower segment operating income in Natural Ingredients and Flavors, Extracts & Flavor Ingredients. The lower segment operating income in Natural Ingredients was primarily a result of higher raw material costs, lower volumes, and an unfavorable product mix, partially offset by higher selling prices and lower manufacturing and other costs. The lower segment operating income in Flavors, Extracts & Flavor Ingredients was primarily a result of higher raw material and manufacturing and other costs and lower volumes, partially offset by higher selling prices. Foreign exchange rates increased segment operating income by approximately 1%. Segment operating income as a percent of revenue was 12.5% in the current nine month period compared to 15.0% in the prior year’s comparable nine month period.

Color
Color segment revenue was $144.9 million and $151.5 million for the three months ended September 30, 2023 and 2022, respectively, a decrease of approximately 4%. The decrease was a result of lower revenue in Food & Pharmaceutical Colors and Personal Care due to lower volumes, partially offset by higher selling prices and the favorable impact of foreign exchange rates that increased segment revenue by approximately 4%.  The lower volumes in Food & Pharmaceutical Colors were also partially offset by the favorable impact of the acquisition of Endemix in October 2022.

Color segment revenue was $466.6 million and $456.2 million for the nine months ended September 30, 2023 and 2022, respectively, an increase of approximately 2%. The increase was a result of higher revenue in Food & Pharmaceutical Colors, partially offset by lower revenue in Personal Care.  The higher revenue in Food & Pharmaceutical Colors was primarily due to higher selling prices, the acquisition of Endemix in October 2022, and the favorable impact of foreign exchange rates that increased segment revenue by approximately 1%, partially offset by lower volumes.  The lower revenue in Personal Care was primarily due to lower volumes, partially offset by higher selling prices.

15
Segment operating income for the Color segment was $22.9 million and $28.2 million for the three months ended September 30, 2023 and 2022, respectively, a decrease of approximately 19%. The decrease in segment operating income was a result of lower operating income in Food & Pharmaceutical Colors and Personal Care. The lower operating income in Food & Pharmaceutical Colors was due to higher raw material costs and lower volumes, partially offset by higher selling prices and lower manufacturing and other costs. The lower operating income in Personal Care was due to higher raw material and manufacturing and other costs and lower volumes, partially offset by higher selling prices. Foreign exchange rates increased segment operating income by approximately 5%. Segment operating income as a percent of revenue was 15.8% in the current quarter and 18.6% in the prior year’s comparable quarter.

Segment operating income for the Color segment was $84.0 million and $90.0 million for the nine months ended September 30, 2023 and 2022, respectively, a decrease of approximately 7%. The decrease in segment operating income was a result of lower operating income in Personal Care, partially offset by higher operating income in Food & Pharmaceutical Colors.  The lower operating income in Personal Care was primarily due to higher raw material and manufacturing and other costs and lower volumes, partially offset by higher selling prices. The higher operating income in Food & Pharmaceutical Colors was primarily due to higher selling prices, partially offset by higher raw material costs, lower volumes, and an unfavorable product mix. Foreign exchange rates increased segment operating income by approximately 1%. Segment operating income as a percent of revenue was 18.0% in the current nine month period and 19.7% in the prior year’s comparable period.

Asia Pacific
Segment revenue for the Asia Pacific segment was $36.8 million and $35.2 million for the three months ended September 30, 2023 and 2022, respectively, an increase of approximately 4%. The increase was primarily a result of higher selling prices. Foreign exchange rates had an immaterial impact on segment revenue for the three months ended September 30, 2023.

Segment revenue for the Asia Pacific segment was $112.9 million and $109.0 million for the nine months ended September 30, 2023 and 2022, respectively, an increase of approximately 4%. The increase was primarily a result of higher selling prices, partially offset by the unfavorable impact of foreign exchange rates, which decreased segment revenue by approximately 3%.

Segment operating income for the Asia Pacific segment was $8.1 million and $7.0 million for the three months ended September 30, 2023 and 2022, respectively, an increase of approximately 16%. The increase was primarily a result of higher selling prices and the favorable impact of foreign exchange rates that increased segment operating income by approximately 1%, partially offset by higher raw material costs. Segment operating income as a percent of revenue was 22.0% in the current quarter and 19.7% in the prior year’s comparable quarter.

Segment operating income for the Asia Pacific segment was $24.9 million and $22.9 million for the nine months ended September 30, 2023 and 2022, respectively, an increase of approximately 9%. The increase was primarily a result of higher selling prices, partially offset by higher raw material costs and the unfavorable impact of foreign exchange rates that decreased segment operating income by approximately 3%. Segment operating income as a percent of revenue was 22.1% in the current nine month period and 21.0% in the prior year’s comparable period.

Corporate & Other
The Corporate & Other operating expense was $9.6 million and $14.0 million for the three months ended September 30, 2023 and 2022, respectively. The Corporate & Other operating expense was $31.7 million and $41.3 million for the nine months ended September 30, 2023 and 2022, respectively. The lower operating expense for both the three and nine months ended September 30, 2023, was primarily due to lower performance-based compensation expense in 2023.

LIQUIDITY AND FINANCIAL CONDITION

Financial Condition
The Company’s financial position remains strong. The Company is in compliance with its loan covenants calculated in accordance with applicable agreements as of September 30, 2023. The Company expects its cash flow from operations and its existing debt capacity can be used to meet anticipated future cash requirements for operations, capital expenditures, and dividend payments, as well as potential acquisitions and stock repurchases. The Company’s contractual obligations consist primarily of operational commitments, which we expect to continue to be able to satisfy through cash generated from operations and debt. The Company has various series of notes outstanding that mature from 2023 through 2028. The Company believes that it has the ability to refinance or repay these obligations through a combination of cash flow from operations, issuance of additional notes, and sufficient borrowing capacity under the Company’s revolving credit facility, which matures in 2026.

16
As a result of our ability to manage the impact of inflation through pricing and other actions, the impact of inflation was not material to the Company’s financial position and its results of operations for the three or nine months ended September 30, 2023. The Company continues to experience elevated costs for certain inputs, such as labor, raw materials, energy, and certain agricultural costs. We continue to expect to manage these impacts in the near term, but persistent, accelerated, or expanded inflationary conditions could exacerbate these challenges and impact our profitability.

Cash Flows from Operating Activities
Net cash provided by operating activities was $106.8 million and $14.9 million for the nine months ended September 30, 2023 and 2022, respectively. The increase in net cash from operating activities was primarily due to a decrease in cash used for inventory investments during 2023 compared to 2022 and an increase in cash provided by accounts receivable.

Cash Flows from Investing Activities
Net cash used in investing activities was $65.6 million and $51.7 million during the nine months ended September 30, 2023 and 2022, respectively. During the nine months ended September 30, 2022, the Company paid $1.0 million related to the acquisition of Flavors Solutions, Inc.  Capital expenditures were $67.7 million and $51.7 million during the nine months ended September 30, 2023 and 2022, respectively.

Cash Flows from Financing Activities
Net cash used in financing activities was $36.4 million for the nine months ended September 30, 2023, and net cash provided by financing activities was $46.3 million for the nine months ended September 30, 2022. Net debt increased by $23.5 million and $100.1 million for the nine months ended September 30, 2023 and 2022, respectively. The cash proceeds from the increase in net debt in the current period were primarily used to support capital expenditure investments during the nine months ended September 30, 2023. For purposes of the cash flow statement, net changes in debt exclude the impact of foreign exchange rates. Dividends of $51.9 million and $51.7 million were paid during the nine months ended September 30, 2023 and 2022, respectively. Dividends paid were $1.23 per share for both the nine months ended September 30, 2023 and 2022.

CRITICAL ACCOUNTING POLICIES

There have been no material changes in the Company’s critical accounting policies during the quarter ended September 30, 2023. For additional information about the Company’s critical accounting policies, refer to “Critical Accounting Policies” under Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the Company’s exposure to market risk during the quarter ended September 30, 2023. For additional information about market risk, refer to Part II, Item 7A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

ITEM 4.
CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures: The Company carried out an evaluation, under the supervision and with the participation of management, including the Company’s Chairman, President, and Chief Executive Officer and its Senior Vice President and Chief Financial Officer, of the effectiveness, as of the end of the period covered by this report, of the design and operation of the disclosure controls and procedures, as defined in Rule 13a-15(e) of the Exchange Act. Based upon that evaluation, the Company’s Chairman, President, and Chief Executive Officer and its Senior Vice President and Chief Financial Officer have concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control over Financial Reporting: There have been no changes in the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the quarter ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

17
PART II.     OTHER INFORMATION

ITEM 1.
LEGAL PROCEEDINGS

See Part I, Item 1, Note 12, Commitments and Contingencies, of this report for information regarding legal proceedings in which the Company is involved.

ITEM 1A.
RISK FACTORS

There were no material changes to the risk factors previously disclosed in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On October 19, 2017, the Board of Directors authorized the repurchase of up to three million shares (2017 Authorization). As of September 30, 2023, 1,267,019 shares had been repurchased under the 2017 Authorization. There is no expiration date for the 2017 Authorization. The 2017 Authorization may be modified, suspended, or discontinued by the Board of Directors at any time. As of September 30, 2023, the maximum number of shares that may be purchased under publicly announced plans is 1,732,981. No shares were purchased by the Company during the three or nine months ended September 30, 2023.

ITEM 5.
OTHER INFORMATION

During the three months ended September 30, 2023, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

ITEM 6.
EXHIBITS

See Exhibit Index following this report.

18
SENSIENT TECHNOLOGIES CORPORATION
EXHIBIT INDEX
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2023

Exhibit
Description
Incorporated by Reference From
Filed Herewith




Amendment No. 10 to Receivables Purchase Agreement, dated as of August 31, 2023, among Sensient Receivables LLC, Sensient Technologies Corporation, and Wells Fargo Bank, National Association.
Exhibit 10.1 to Current Report on Form 8-K filed September 6, 2023 (Commission File No. 1-7626)




Certifications of the Company’s Chairman, President & Chief Executive Officer and Senior Vice President & Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act
X




Certifications of the Company’s Chairman, President & Chief Executive Officer and Senior Vice President & Chief Financial Officer pursuant to 18 United States Code § 1350
X




101.INS
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
X




101.SCH
Inline XBRL Taxonomy Extension Schema Document
X




101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
X




101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
X

101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
X




101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
X




104
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
X

19
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SENSIENT TECHNOLOGIES CORPORATION





Date:
November 7, 2023
By:
 /s/  John J. Manning



John J. Manning, Senior Vice
President, General Counsel &
Secretary





 Date:
November 7, 2023
  By:
 /s/  Stephen J. Rolfs



Stephen J. Rolfs, Senior Vice
President & Chief Financial Officer


20
EXHIBIT 31

CERTIFICATION
Pursuant to Rule 13a-14(a) of the Exchange Act

I, Paul Manning, certify that:

1.
I have reviewed this quarterly report on Form 10-Q of Sensient Technologies Corporation;

2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


a)
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


b)
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


c)
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


d)
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):


a)
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and


b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:     November 7, 2023


 /s/ Paul Manning
Paul Manning, Chairman, President &
Chief Executive Officer

EXHIBIT 31

CERTIFICATION
Pursuant to Rule 13a-14(a) of the Exchange Act

I, Stephen J. Rolfs, certify that:

1.
I have reviewed this quarterly report on Form 10-Q of Sensient Technologies Corporation;

2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


a)
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


b)
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


c)
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


d)
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):


a)
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and


b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:     November 7, 2023


 /s/ Stephen J. Rolfs
Stephen J. Rolfs, Senior Vice President &
Chief Financial Officer


EXHIBIT 32

CERTIFICATION
Pursuant to 18 United States Code § 1350

The undersigned hereby certifies that the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023, of Sensient Technologies Corporation (the “Company”) filed with the Securities and Exchange Commission on or about the date hereof fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Paul Manning
  

Name:
Paul Manning

Title:
Chairman, President & Chief Executive Officer

Date:
November 7, 2023

A signed original of this written statement required by Section 906 has been provided to Sensient Technologies Corporation and will be retained by Sensient Technologies Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EXHIBIT 32

CERTIFICATION
Pursuant to 18 United States Code § 1350

The undersigned hereby certifies that the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023, of Sensient Technologies Corporation (the “Company”) filed with the Securities and Exchange Commission on or about the date hereof fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Stephen J. Rolfs

Name:
Stephen J. Rolfs

Title:
Senior Vice President & Chief Financial Officer

Date:
November 7, 2023

A signed original of this written statement required by Section 906 has been provided to Sensient Technologies Corporation and will be retained by Sensient Technologies Corporation and furnished to the Securities and Exchange Commission or its staff upon request.


v3.23.3
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2023
Oct. 31, 2023
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Document Type 10-Q  
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Document Quarterly Report true  
Document Period End Date Sep. 30, 2023  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
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Entity File Number 001-07626  
Entity Registrant Name Sensient Technologies Corp  
Entity Central Index Key 0000310142  
Entity Incorporation, State or Country Code WI  
Entity Tax Identification Number 39-0561070  
Entity Address, Address Line One 777 EAST WISCONSIN AVENUE  
Entity Address, City or Town MILWAUKEE  
Entity Address, State or Province WI  
Entity Address, Postal Zip Code 53202-5304  
City Area Code 414  
Local Phone Number 271-6755  
Title of 12(b) Security Common stock, par value $0.10 per share  
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Security Exchange Name NYSE  
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v3.23.3
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
CONSOLIDATED STATEMENTS OF EARNINGS [Abstract]        
Revenue $ 363,829 $ 361,076 $ 1,107,148 $ 1,088,303
Cost of products sold 250,202 239,318 746,681 710,696
Selling and administrative expenses 69,096 74,265 213,507 222,081
Operating income 44,531 47,493 146,960 155,526
Interest expense 6,294 3,672 18,648 9,748
Earnings before income taxes 38,237 43,821 128,312 145,778
Income taxes 6,694 7,773 29,085 34,012
Net earnings $ 31,543 $ 36,048 $ 99,227 $ 111,766
Weighted average number of common shares outstanding:        
Basic (in shares) 42,045 41,896 42,020 41,885
Diluted (in shares) 42,233 42,242 42,241 42,199
Earnings per common share:        
Basic (in dollars per share) $ 0.75 $ 0.86 $ 2.36 $ 2.67
Diluted (in dollars per share) 0.75 0.85 2.35 2.65
Dividends declared per common share (in dollars per share) $ 0.41 $ 0.41 $ 1.23 $ 1.23
v3.23.3
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]        
Comprehensive income $ 18,229 $ 8,997 $ 109,380 $ 56,171
v3.23.3
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2023
Dec. 31, 2022
Current Assets:    
Cash and cash equivalents $ 31,985 $ 20,921
Trade accounts receivable 284,668 302,109
Inventories 587,024 564,110
Prepaid expenses and other current assets 41,477 47,640
Total current assets 945,154 934,780
Other assets 94,646 96,609
Deferred tax assets 30,857 32,717
Intangible assets, net 17,352 18,600
Goodwill 415,618 415,715
Property, Plant, and Equipment:    
Land 31,269 31,444
Buildings 336,152 322,268
Machinery and equipment 759,191 722,294
Construction in progress 71,223 65,809
Property, plant, and equipment, gross 1,197,835 1,141,815
Less accumulated depreciation (691,286) (658,622)
Property, plant, and equipment, net 506,549 483,193
Total assets 2,010,176 1,981,614
Current Liabilities:    
Trade accounts payable 110,973 142,365
Accrued salaries, wages, and withholdings from employees 26,818 43,738
Other accrued expenses 55,676 51,231
Income taxes 7,543 14,446
Short-term borrowings 22,807 20,373
Total current liabilities 223,817 272,153
Deferred tax liabilities 16,202 15,977
Other liabilities 37,115 37,191
Accrued employee and retiree benefits 26,830 26,364
Long-term debt 648,556 630,331
Shareholders' Equity:    
Common stock 5,396 5,396
Additional paid-in capital 116,775 124,043
Earnings reinvested in the business 1,750,027 1,702,700
Treasury stock, at cost (624,007) (631,853)
Accumulated other comprehensive loss (190,535) (200,688)
Total shareholders' equity 1,057,656 999,598
Total liabilities and shareholders' equity $ 2,010,176 $ 1,981,614
v3.23.3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Cash flows from operating activities:    
Net earnings $ 99,227 $ 111,766
Adjustments to arrive at net cash provided by operating activities:    
Depreciation and amortization 43,360 39,262
Share-based compensation expense 7,285 12,476
Net (gain) loss on assets (81) 283
Deferred income taxes 2,082 20,465
Changes in operating assets and liabilities:    
Trade accounts receivable 18,830 (39,520)
Inventories (21,455) (112,021)
Prepaid expenses and other assets 842 (39,598)
Accounts payable and other accrued expenses (20,572) 24,110
Accrued salaries, wages, and withholdings from employees (16,749) 1,819
Income taxes (6,536) (4,342)
Other liabilities 587 198
Net cash provided by operating activities 106,820 14,898
Cash Flows from Investing Activities:    
Acquisition of property, plant, and equipment (67,718) (51,703)
Proceeds from sale of assets 130 94
Acquisition of new business 0 (1,048)
Other investing activities 2,036 947
Net cash used in investing activities (65,552) (51,710)
Cash flows from financing activities:    
Proceeds from additional borrowings 197,577 187,715
Debt payments (174,083) (87,657)
Dividends paid (51,900) (51,681)
Other financing activities (8,034) (2,056)
Net cash (used in) provided by financing activities (36,440) 46,321
Effect of exchange rate changes on cash and cash equivalents 6,236 11,330
Net increase in cash and cash equivalents 11,064 20,839
Cash and cash equivalents at beginning of period 20,921 25,740
Cash and cash equivalents at end of period $ 31,985 $ 46,579
v3.23.3
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands
Common Stock [Member]
Additional Paid-In Capital [Member]
Earnings Reinvested in the Business [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Total
Beginning balance at Dec. 31, 2021 $ 5,396 $ 111,352 $ 1,630,713 $ (634,408) $ (174,628) $ 938,425
Beginning balance (in shares) at Dec. 31, 2021       12,107,549    
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings 0 0 111,766 $ 0 0 111,766
Other comprehensive income (loss) 0 0 0 0 (55,595) (55,595)
Cash dividends paid 0 0 (51,681) 0 0 (51,681)
Share-based compensation 0 12,476 0 0 0 12,476
Non-vested stock issued upon vesting 0 (3,239) 0 $ 3,239 0 0
Non-vested stock issued upon vesting (in shares)       (61,821)    
Benefit plans 0 560 0 $ 618 0 1,178
Benefit plans (in shares)       (11,786)    
Other 0 (768) 15 $ (1,302) 0 (2,055)
Other (in shares)       24,831    
Ending balance at Sep. 30, 2022 5,396 120,381 1,690,813 $ (631,853) (230,223) 954,514
Ending balance (in shares) at Sep. 30, 2022       12,058,773    
Beginning balance at Jun. 30, 2022 5,396 116,596 1,672,000 $ (631,853) (203,172) 958,967
Beginning balance (in shares) at Jun. 30, 2022       12,058,773    
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings 0 0 36,048 $ 0 0 36,048
Other comprehensive income (loss) 0 0 0 0 (27,051) (27,051)
Cash dividends paid 0 0 (17,235) 0 0 (17,235)
Share-based compensation 0 3,785 0 0 0 3,785
Ending balance at Sep. 30, 2022 5,396 120,381 1,690,813 $ (631,853) (230,223) 954,514
Ending balance (in shares) at Sep. 30, 2022       12,058,773    
Beginning balance at Dec. 31, 2022 5,396 124,043 1,702,700 $ (631,853) (200,688) 999,598
Beginning balance (in shares) at Dec. 31, 2022       12,058,773    
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings 0 0 99,227 $ 0 0 99,227
Other comprehensive income (loss) 0 0 0 0 10,153 10,153
Cash dividends paid 0 0 (51,900) 0 0 (51,900)
Share-based compensation 0 7,285 0 0 0 7,285
Non-vested stock issued upon vesting 0 (12,686) 0 $ 12,686 0 0
Non-vested stock issued upon vesting (in shares)       (242,110)    
Benefit plans 0 375 0 $ 952 0 1,327
Benefit plans (in shares)       (18,172)    
Other 0 (2,242) 0 $ (5,792) 0 (8,034)
Other (in shares)       110,549    
Ending balance at Sep. 30, 2023 5,396 116,775 1,750,027 $ (624,007) (190,535) 1,057,656
Ending balance (in shares) at Sep. 30, 2023       11,909,040    
Beginning balance at Jun. 30, 2023 5,396 114,330 1,735,807 $ (624,048) (177,221) 1,054,264
Beginning balance (in shares) at Jun. 30, 2023       11,909,833    
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net earnings 0 0 31,543 $ 0 0 31,543
Other comprehensive income (loss) 0 0 0 0 (13,314) (13,314)
Cash dividends paid 0 0 (17,323) 0 0 (17,323)
Share-based compensation 0 2,519 0 0 0 2,519
Non-vested stock issued upon vesting 0 (67) 0 $ 67 0 0
Non-vested stock issued upon vesting (in shares)       (1,285)    
Other 0 (7) 0 $ (26) 0 (33)
Other (in shares)       492    
Ending balance at Sep. 30, 2023 $ 5,396 $ 116,775 $ 1,750,027 $ (624,007) $ (190,535) $ 1,057,656
Ending balance (in shares) at Sep. 30, 2023       11,909,040    
v3.23.3
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract]        
Cash dividends per share (in dollars per share) $ 0.41 $ 0.41 $ 1.23 $ 1.23
v3.23.3
Accounting Policies
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Accounting Policies
1.
Accounting Policies

In the opinion of Sensient Technologies Corporation (the Company), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of September 30, 2023, and the results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended September 30, 2023 and 2022, and cash flows for the nine months ended September 30, 2023 and 2022. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred.

Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2022, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change.
v3.23.3
Acquisition
 9 Months Ended
Sep. 30, 2023
Acquisition [Abstract]  
Acquisition
2.
Acquisition

On October 3, 2022, the Company acquired Endemix Doğal Maddeler A.Ş. and Teknoloji Yatırımları ve Danışmanlık Sanayi ve Ticaret A.Ş. (collectively, Endemix), a natural colors business located in Turkey. The Company paid $23.3 million in cash for this acquisition, which is net of $1.3 million in debt assumed, with $1.7 million of such amount being held back by the Company for 12 months to satisfy any 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 $8.9 million and identified intangible assets, principally technological know-how and customer relationships, of $4.9 million. The remaining $9.5 million was allocated to goodwill. This business is part of the Color segment.
v3.23.3
Trade Accounts Receivable
 9 Months Ended
Sep. 30, 2023
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. 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 as economic conditions change. Additionally, as the Company only has one portfolio segment, there are not different risks between portfolios. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible.
The following table summarizes the changes in the allowance for doubtful accounts during the three and nine month periods ended September 30, 2023 and 2022:
(In thousands)
Three Months Ended September 30, 2023
  
Allowance for
Doubtful Accounts
  
Balance at June 30, 2023
  
$
4,293
  
Provision for expected credit losses
    
13
  
Accounts written off
    
(244
)
Translation and other activity
    
(76
)
Balance at September 30, 2023
  
$
3,986
  

(In thousands)
Three Months Ended September 30, 2022
  
Allowance for
Doubtful Accounts
  
Balance at June 30, 2022
  
$
4,494
  
Provision for expected credit losses
    
51
  
Accounts written off
    
(33
)
Translation and other activity
    
(105
)
Balance at September 30, 2022
  
$
4,407
  

(In thousands)
Nine Months Ended September 30, 2023
  
Allowance for
Doubtful Accounts
  
Balance at December 31, 2022
  
$
4,436
  
Provision for expected credit losses
    
504
  
Accounts written off
    
(1,051
)
Translation and other activity
    
97
Balance at September 30, 2023
  
$
3,986
  

(In thousands)
Nine Months Ended September 30, 2022
  
Allowance for
Doubtful Accounts
  
Balance at December 31, 2021
  
$
4,877
  
Provision for expected credit losses
    
883
  
Accounts written off
     (1,129 )
Translation and other activity
     (224 )
Balance at September 30, 2022
   $ 4,407  
v3.23.3
Inventories
 9 Months Ended
Sep. 30, 2023
Inventories [Abstract]  
Inventories
4.
Inventories
 
At September 30, 2023, and December 31, 2022, inventories included finished and in-process products totaling $414.8 million and $385.2 million, respectively, and raw materials and supplies of $172.2 million and $178.9 million, respectively.
v3.23.3
Debt
 9 Months Ended
Sep. 30, 2023
Debt [Abstract]  
Debt
5.
Debt

On May 31, 2023, the Company entered into an agreement to issue $75 million and €40 million in five-year, fixed-rate, senior notes at coupon rates of 4.94% and 4.15%, respectively. The notes were issued on May 31, 2023, and proceeds have been used to repay a portion of existing indebtedness under the Company’s Third Amended and Restated Credit Agreement, as amended. The notes will mature in May 2028.

On August 31, 2023, the Company entered into Amendment No. 10 (Amendment) to the Receivables Purchase Agreement, dated as of October 3, 2016.  The Amendment extended the termination date from August 31, 2023 to August 30, 2024.
v3.23.3
Fair Value
 9 Months Ended
Sep. 30, 2023
Fair Value [Abstract]  
Fair Value
6.
Fair Value

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. The carrying values of the Company’s cash and cash equivalents, trade accounts receivable, trade accounts payable, accrued expenses, and short-term borrowings were approximately the same as the fair values as of September 30, 2023 and December 31, 2022. 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 $1.0 million and a liability of $0.2 million as of September 30, 2023 and December 31, 2022, respectively. The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2 inputs). The carrying value of the long-term debt at September 30, 2023 and December 31, 2022 was $648.8 million and $630.8 million, respectively. The fair value of the long-term debt at September 30, 2023 and December 31, 2022 was $639.5 million and $622.2 million, respectively.
v3.23.3
Segment Information
 9 Months Ended
Sep. 30, 2023
Segment Information [Abstract]  
Segment Information
7.
Segment Information

The Company evaluates performance based on operating income before share-based compensation, 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.
The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. The Company’s three reportable segments are the 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 characteristics to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, such as colors, flavors, coatings, and nutraceutical ingredients; 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 in the Asia Pacific countries. The Company’s corporate expenses and share-based compensation are included in the “Corporate & Other” category.
Operating results by segment for the periods presented are as follows:
(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia
Pacific
    
Corporate &
Other
    
Consolidated
  
Three months ended September 30, 2023:
                              
Revenue from external customers
  
$
185,029
    
$
142,026
    
$
36,774
    
$
-
    
$
363,829
  
Intersegment revenue
    
5,968
   
2,913
   
-
      
-
      
8,881
Total revenue
  
$
190,997
    
$
144,939
    
$
36,774
    
$
-
    
$
372,710
  
                                         
Operating income (loss)
  
$
23,078
    
$
22,925
    
$
8,095
    
$
(9,567
)
  
$
44,531
  
Interest expense
    
-
      
-
      
-
      
6,294
      
6,294
  
Earnings (loss) before income taxes
  
$
23,078
    
$
22,925
    
$
8,095
    
$
(15,861
)
  
$
38,237
  
                                         
Three months ended September 30, 2022:
                                        
Revenue from external customers
  
$
181,397
    
$
144,570
    
$
35,109
    
$
-
    
$
361,076
  
Intersegment revenue
    
5,649
   
6,899
   
112
   
-
      
12,660
Total revenue
  
$
187,046
    
$
151,469
    
$
35,221
    
$
-
    
$
373,736
  
                                         
Operating income (loss)
  
$
26,337
    
$
28,200
    
$
6,952
    
$
(13,996
)
  
$
47,493
  
Interest expense
    
-
      
-
      
-
      
3,672
      
3,672
  
Earnings (loss) before income taxes
  
$
26,337
    
$
28,200
    
$
6,952
    
$
(17,668
)
  
$
43,821
  

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia
Pacific
    
Corporate &
Other
    
Consolidated
  
Nine months ended September 30, 2023:
                              
Revenue from external customers
  
$
538,753
    
$
455,507
    
$
112,888
    
$
-
    
$
1,107,148
  
Intersegment revenue
    
19,380
   
11,056
   
-
      
-
      
30,436
Total revenue
  
$
558,133
    
$
466,563
    
$
112,888
    
$
-
    
$
1,137,584
  
                                         
Operating income (loss)
  
$
69,714
    
$
84,027
    
$
24,911
    
$
(31,692
)
  
$
146,960
  
Interest expense
    
-
      
-
      
-
      
18,648
      
18,648
  
Earnings (loss) before income taxes
  
$
69,714
    
$
84,027
    
$
24,911
    
$
(50,340
)
  
$
128,312
  
                                         
Nine months ended September 30, 2022:
                                        
Revenue from external customers
  
$
539,014
    
$
440,568
    
$
108,721
    
$
-
    
$
1,088,303
  
Intersegment revenue
    
20,096
   
15,607
   
293
   
-
      
35,996
Total revenue
  
$
559,110
    
$
456,175
    
$
109,014
    
$
-
    
$
1,124,299
  
                                         
Operating income (loss)
  
$
83,929
    
$
90,035
    
$
22,877
    
$
(41,315
)
  
$
155,526
  
Interest expense
    
-
      
-
      
-
      
9,748
      
9,748
  
Earnings (loss) before income taxes
  
$
83,929
    
$
90,035
    
$
22,877
    
$
(51,063
)
  
$
145,778
  

Product Lines
(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Three months ended September 30, 2023:
                        
Flavors, Extracts & Flavor Ingredients
  
$
124,697
    
$
-
    
$
-
    
$
124,697
  
Natural Ingredients
    
66,300
      
-
      
-
      
66,300
  
Food & Pharmaceutical Colors
    
-
      
107,723
      
-
      
107,723
  
Personal Care
    
-
      
37,216
      
-
      
37,216
  
Asia Pacific
    
-
      
-
      
36,774
      
36,774
  
Intersegment Revenue
    
(5,968
)
    
(2,913
)
    
-
   
(8,881
)
Total revenue from external customers
  
$
185,029
    
$
142,026
    
$
36,774
    
$
363,829
  
                                 
Three months ended September 30, 2022:
                                
Flavors, Extracts & Flavor Ingredients
  
$
123,945
    
$
-
    
$
-
    
$
123,945
  
Natural Ingredients
    
63,101
      
-
      
-
      
63,101
  
Food & Pharmaceutical Colors
    
-
      
111,194
      
-
      
111,194
  
Personal Care
    
-
      
39,689
      
-
      
39,689
  
Inks
    
-
      
586
      
-
      
586
  
Asia Pacific
    
-
      
-
      
35,221
      
35,221
  
Intersegment Revenue
    
(5,649
)
    
(6,899
)
    
(112
)
    
(12,660
)
Total revenue from external customers
  
$
181,397
    
$
144,570
    
$
35,109
    
$
361,076
  

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Nine months ended September 30, 2023:
                        
Flavors, Extracts & Flavor Ingredients
  
$
383,210
    
$
-
    
$
-
    
$
383,210
  
Natural Ingredients
    
174,923
      
-
      
-
      
174,923
  
Food & Pharmaceutical Colors
    
-
      
346,635
      
-
      
346,635
  
Personal Care
    
-
      
119,928
      
-
      
119,928
  
Asia Pacific
    
-
      
-
      
112,888
      
112,888
  
Intersegment Revenue
    
(19,380
)
    
(11,056
)
    
-
   
(30,436
)
Total revenue from external customers
  
$
538,753
    
$
455,507
    
$
112,888
    
$
1,107,148
  
                                 
Nine months ended September 30, 2022:
                                
Flavors, Extracts & Flavor Ingredients
  
$
381,041
    
$
-
    
$
-
    
$
381,041
  
Natural Ingredients
    
178,069
      
-
      
-
      
178,069
  
Food & Pharmaceutical Colors
    
-
      
328,087
      
-
      
328,087
  
Personal Care
    
-
      
126,651
      
-
      
126,651
  
Inks
    
-
      
1,437
      
-
      
1,437
  
Asia Pacific
    
-
      
-
      
109,014
      
109,014
  
Intersegment Revenue
    
(20,096
)
    
(15,607
)
    
(293
)
    
(35,996
)
Total revenue from external customers
  
$
539,014
    
$
440,568
    
$
108,721
    
$
1,088,303
  

Geographic Markets
(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Three months ended September 30, 2023:
                        
North America
  
$
147,992
    
$
75,417
    
$
-
    
$
223,409
  
Europe
    
25,298
      
36,816
      
57
      
62,171
  
Asia Pacific
    
4,881
      
13,344
      
35,791
      
54,016
  
Other
    
6,858
      
16,449
      
926
      
24,233
  
Total revenue from external customers
  
$
185,029
    
$
142,026
    
$
36,774
    
$
363,829
  
                                 
Three months ended September 30, 2022:
                                
North America
  
$
142,097
    
$
74,220
    
$
27
    
$
216,344
  
Europe
    
26,795
      
34,591
      
44
      
61,430
  
Asia Pacific
    
7,091
      
16,770
      
34,433
      
58,294
  
Other
    
5,414
      
18,989
      
605
      
25,008
  
Total revenue from external customers
  
$
181,397
    
$
144,570
    
$
35,109
    
$
361,076
  

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Nine months ended September 30, 2023:
                        
North America
  
$
417,095
    
$
231,348
    
$
124
    
$
648,567
  
Europe
    
86,092
      
124,465
      
184
      
210,741
  
Asia Pacific
    
16,372
      
47,801
      
110,380
      
174,553
  
Other
    
19,194
      
51,893
      
2,200
      
73,287
  
Total revenue from external customers
  
$
538,753
    
$
455,507
    
$
112,888
    
$
1,107,148
  
                                 
Nine months ended September 30, 2022:
                                
North America
  
$
407,684
    
$
223,508
    
$
87
    
$
631,279
  
Europe
    
90,565
      
116,184
      
175
      
206,924
  
Asia Pacific
    
23,628
      
49,199
      
105,222
      
178,049
  
Other
    
17,137
      
51,677
      
3,237
      
72,051
  
Total revenue from external customers
  
$
539,014
    
$
440,568
    
$
108,721
    
$
1,088,303
 
v3.23.3
Retirement Plans
 9 Months Ended
Sep. 30, 2023
Retirement Plans [Abstract]  
Retirement Plans
8.
Retirement Plans
 
The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows:
 

  
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
(In thousands)
  
2023
    
2022
    
2023
    
2022
  
Service cost
  
$
372
    
$
404
    
$
1,111
    
$
1,219
  
Interest cost
    
415
      
235
      
1,237
      
719
  
Expected return on plan assets
    
(248
)
    
(194
)
    
(732
)
    
(598
)
Recognized actuarial loss
    
(138
)
    
12
      
(415
)
    
36
  
Total defined benefit expense
  
$
401
    
$
457
    
$
1,201
    
$
1,376
  
 
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.
v3.23.3
Derivative Instruments and Hedging Activity
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activity [Abstract]  
Derivative Instruments and Hedging Activity
9.
Derivative Instruments and Hedging Activity

The Company may use forward exchange contracts and foreign currency denominated debt to manage its exposure to foreign exchange risk in order to reduce the effect of fluctuating foreign currencies on short-term foreign currency denominated intercompany transactions, non-functional currency raw material purchases, non-functional currency sales, and other known foreign currency exposures. These forward exchange contracts generally have maturities of less than 18 months. The Company’s primary hedging activities and their accounting treatment are summarized below.
Forward exchange contracts – Certain forward exchange contracts have been designated as cash flow hedges. The Company had $16.1 million and $70.1 million of forward exchange contracts designated as cash flow hedges outstanding as of September 30, 2023 and December 31, 2022, respectively. For the three months ended September 30, 2023, gains of $0.8 million 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. For the three months ended September 30, 2022, amounts reclassified into net earnings in the Company’s Consolidated Statement of Earnings that offset the underlying transactions’ impact on earnings in the same period were not material. For the nine months ended September 30, 2023 and 2022, gains of $1.4 million and $0.6 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 addition, the Company utilizes forward exchange contracts that are not designated as cash flow hedges. The results of these transactions were not material to the financial statements of the Company.
Net investment hedges – The Company has designated certain foreign currency denominated long-term borrowings as partial hedges of the Company’s foreign currency net asset positions. As of September 30, 2023 and December 31, 2022, the total value of the Company’s net investment hedges was $328.8 million and $315.5 million, respectively. These net investment hedges included 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 Other Comprehensive Income (OCI). For the three months ended September 30, 2023 and 2022, the impact of foreign exchange rates on these debt instruments decreased debt by $11.0 million and $18.4 million, respectively, which has been recorded as foreign currency translation in OCI. For the nine months ended September 30, 2023 and 2022, the impact of foreign exchange rates on these debt instruments decreased debt by $2.8 million and $42.4 million, respectively, which has been recorded as foreign currency translation in OCI.
v3.23.3
Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Taxes [Abstract]  
Income Taxes
10.
Income Taxes

The effective income tax rates for the three months ended September 30, 2023 and 2022, were 17.5% and 17.7%, respectively. For the nine months ended September 30, 2023 and 2022, the effective income tax rates were 22.7% and 23.3%, respectively. The effective tax rates for the three and nine months ended September 30, 2023 and 2022, were impacted by changes in estimates associated with changes in valuation allowances, the finalization of prior year foreign tax items, and the mix of foreign earnings.
v3.23.3
Accumulated Other Comprehensive Income
 9 Months Ended
Sep. 30, 2023
Accumulated Other Comprehensive Income [Abstract]  
Accumulated Other Comprehensive Income
11.
Accumulated Other Comprehensive Income

The following table summarizes the changes in OCI during the three and nine month periods ended September 30, 2023 and 2022:
(In thousands)
  
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at December 31, 2022
  
$
(599
)
  
$
(1,792
)
  
$
(198,297
)
  
$
(200,688
)
Other comprehensive income before reclassifications
    
2,974
      
-
      
8,977
      
11,951
  
Amounts reclassified from OCI
    
(1,432
)
    
(366
)
    
-
      
(1,798
)
Balances at September 30, 2023
  
$
943
    
$
(2,158
)
  
$
(189,320
)
  
$
(190,535
)

(In thousands)
  
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at June 30, 2023
  
$
1,997
    
$
(2,036
)
  
$
(177,182
)
  
$
(177,221
)
Other comprehensive loss before reclassifications
    
(239
)
    
-
      
(12,138
)
    
(12,377
)
Amounts reclassified from OCI
    
(815
)
    
(122
)
    
-
      
(937
)
Balances at September 30, 2023
  
$
943
    
$
(2,158
)
  
$
(189,320
)
  
$
(190,535
)

(In thousands)
  
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at December 31, 2021
  
$
206
    
$
(353
)
  
$
(174,481
)
  
$
(174,628
)
Other comprehensive income (loss) before reclassifications
    
516
      
-
      
(55,514
)
    
(54,998
)
Amounts reclassified from OCI
    
(621
)
    
24
      
-
      
(597
)
Balances at September 30, 2022
  
$
101
 
$
(329
)
  
$
(229,995
)
  
$
(230,223
)

(In thousands)
 
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at June 30, 2022
  
$
(152
)
  
$
(337
)
  
$
(202,683
)
  
$
(203,172
)
Other comprehensive income (loss) before reclassifications
    
380
      
-
      
(27,312
)
    
(26,932
)
Amounts reclassified from OCI
    
(127
)
    
8
      
-
      
(119
)
Balances at September 30, 2022
  
$
101
    
$
(329
)
  
$
(229,995
)
  
$
(230,223
)


(1)
Cash Flow Hedges and Pension Items are net of tax.
v3.23.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2023
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
12.
Commitments and Contingencies


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.
v3.23.3
Subsequent Events
 9 Months Ended
Sep. 30, 2023
Subsequent Events [Abstract]  
Subsequent Events
13.
Subsequent Events

On October 19, 2023, the Company announced its quarterly dividend of $0.41 per share would be payable on December 1, 2023.
v3.23.3
Insider Trading Arrangements
 9 Months Ended
Sep. 30, 2023
Insider Trading Arrangements [Line Items]  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.23.3
Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2023
Accounting Policies [Abstract]  
Basis of Accounting
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred.
v3.23.3
Trade Accounts Receivable (Tables)
 9 Months Ended
Sep. 30, 2023
Trade Accounts Receivable [Abstract]  
Changes in Allowance for Doubtful Accounts
The following table summarizes the changes in the allowance for doubtful accounts during the three and nine month periods ended September 30, 2023 and 2022:
(In thousands)
Three Months Ended September 30, 2023
  
Allowance for
Doubtful Accounts
  
Balance at June 30, 2023
  
$
4,293
  
Provision for expected credit losses
    
13
  
Accounts written off
    
(244
)
Translation and other activity
    
(76
)
Balance at September 30, 2023
  
$
3,986
  

(In thousands)
Three Months Ended September 30, 2022
  
Allowance for
Doubtful Accounts
  
Balance at June 30, 2022
  
$
4,494
  
Provision for expected credit losses
    
51
  
Accounts written off
    
(33
)
Translation and other activity
    
(105
)
Balance at September 30, 2022
  
$
4,407
  

(In thousands)
Nine Months Ended September 30, 2023
  
Allowance for
Doubtful Accounts
  
Balance at December 31, 2022
  
$
4,436
  
Provision for expected credit losses
    
504
  
Accounts written off
    
(1,051
)
Translation and other activity
    
97
Balance at September 30, 2023
  
$
3,986
  

(In thousands)
Nine Months Ended September 30, 2022
  
Allowance for
Doubtful Accounts
  
Balance at December 31, 2021
  
$
4,877
  
Provision for expected credit losses
    
883
  
Accounts written off
     (1,129 )
Translation and other activity
     (224 )
Balance at September 30, 2022
   $ 4,407  
v3.23.3
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2023
Segment Information [Abstract]  
Operating Results by Segment
Operating results by segment for the periods presented are as follows:
(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia
Pacific
    
Corporate &
Other
    
Consolidated
  
Three months ended September 30, 2023:
                              
Revenue from external customers
  
$
185,029
    
$
142,026
    
$
36,774
    
$
-
    
$
363,829
  
Intersegment revenue
    
5,968
   
2,913
   
-
      
-
      
8,881
Total revenue
  
$
190,997
    
$
144,939
    
$
36,774
    
$
-
    
$
372,710
  
                                         
Operating income (loss)
  
$
23,078
    
$
22,925
    
$
8,095
    
$
(9,567
)
  
$
44,531
  
Interest expense
    
-
      
-
      
-
      
6,294
      
6,294
  
Earnings (loss) before income taxes
  
$
23,078
    
$
22,925
    
$
8,095
    
$
(15,861
)
  
$
38,237
  
                                         
Three months ended September 30, 2022:
                                        
Revenue from external customers
  
$
181,397
    
$
144,570
    
$
35,109
    
$
-
    
$
361,076
  
Intersegment revenue
    
5,649
   
6,899
   
112
   
-
      
12,660
Total revenue
  
$
187,046
    
$
151,469
    
$
35,221
    
$
-
    
$
373,736
  
                                         
Operating income (loss)
  
$
26,337
    
$
28,200
    
$
6,952
    
$
(13,996
)
  
$
47,493
  
Interest expense
    
-
      
-
      
-
      
3,672
      
3,672
  
Earnings (loss) before income taxes
  
$
26,337
    
$
28,200
    
$
6,952
    
$
(17,668
)
  
$
43,821
  

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia
Pacific
    
Corporate &
Other
    
Consolidated
  
Nine months ended September 30, 2023:
                              
Revenue from external customers
  
$
538,753
    
$
455,507
    
$
112,888
    
$
-
    
$
1,107,148
  
Intersegment revenue
    
19,380
   
11,056
   
-
      
-
      
30,436
Total revenue
  
$
558,133
    
$
466,563
    
$
112,888
    
$
-
    
$
1,137,584
  
                                         
Operating income (loss)
  
$
69,714
    
$
84,027
    
$
24,911
    
$
(31,692
)
  
$
146,960
  
Interest expense
    
-
      
-
      
-
      
18,648
      
18,648
  
Earnings (loss) before income taxes
  
$
69,714
    
$
84,027
    
$
24,911
    
$
(50,340
)
  
$
128,312
  
                                         
Nine months ended September 30, 2022:
                                        
Revenue from external customers
  
$
539,014
    
$
440,568
    
$
108,721
    
$
-
    
$
1,088,303
  
Intersegment revenue
    
20,096
   
15,607
   
293
   
-
      
35,996
Total revenue
  
$
559,110
    
$
456,175
    
$
109,014
    
$
-
    
$
1,124,299
  
                                         
Operating income (loss)
  
$
83,929
    
$
90,035
    
$
22,877
    
$
(41,315
)
  
$
155,526
  
Interest expense
    
-
      
-
      
-
      
9,748
      
9,748
  
Earnings (loss) before income taxes
  
$
83,929
    
$
90,035
    
$
22,877
    
$
(51,063
)
  
$
145,778
  
Product Lines
Product Lines
(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Three months ended September 30, 2023:
                        
Flavors, Extracts & Flavor Ingredients
  
$
124,697
    
$
-
    
$
-
    
$
124,697
  
Natural Ingredients
    
66,300
      
-
      
-
      
66,300
  
Food & Pharmaceutical Colors
    
-
      
107,723
      
-
      
107,723
  
Personal Care
    
-
      
37,216
      
-
      
37,216
  
Asia Pacific
    
-
      
-
      
36,774
      
36,774
  
Intersegment Revenue
    
(5,968
)
    
(2,913
)
    
-
   
(8,881
)
Total revenue from external customers
  
$
185,029
    
$
142,026
    
$
36,774
    
$
363,829
  
                                 
Three months ended September 30, 2022:
                                
Flavors, Extracts & Flavor Ingredients
  
$
123,945
    
$
-
    
$
-
    
$
123,945
  
Natural Ingredients
    
63,101
      
-
      
-
      
63,101
  
Food & Pharmaceutical Colors
    
-
      
111,194
      
-
      
111,194
  
Personal Care
    
-
      
39,689
      
-
      
39,689
  
Inks
    
-
      
586
      
-
      
586
  
Asia Pacific
    
-
      
-
      
35,221
      
35,221
  
Intersegment Revenue
    
(5,649
)
    
(6,899
)
    
(112
)
    
(12,660
)
Total revenue from external customers
  
$
181,397
    
$
144,570
    
$
35,109
    
$
361,076
  

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Nine months ended September 30, 2023:
                        
Flavors, Extracts & Flavor Ingredients
  
$
383,210
    
$
-
    
$
-
    
$
383,210
  
Natural Ingredients
    
174,923
      
-
      
-
      
174,923
  
Food & Pharmaceutical Colors
    
-
      
346,635
      
-
      
346,635
  
Personal Care
    
-
      
119,928
      
-
      
119,928
  
Asia Pacific
    
-
      
-
      
112,888
      
112,888
  
Intersegment Revenue
    
(19,380
)
    
(11,056
)
    
-
   
(30,436
)
Total revenue from external customers
  
$
538,753
    
$
455,507
    
$
112,888
    
$
1,107,148
  
                                 
Nine months ended September 30, 2022:
                                
Flavors, Extracts & Flavor Ingredients
  
$
381,041
    
$
-
    
$
-
    
$
381,041
  
Natural Ingredients
    
178,069
      
-
      
-
      
178,069
  
Food & Pharmaceutical Colors
    
-
      
328,087
      
-
      
328,087
  
Personal Care
    
-
      
126,651
      
-
      
126,651
  
Inks
    
-
      
1,437
      
-
      
1,437
  
Asia Pacific
    
-
      
-
      
109,014
      
109,014
  
Intersegment Revenue
    
(20,096
)
    
(15,607
)
    
(293
)
    
(35,996
)
Total revenue from external customers
  
$
539,014
    
$
440,568
    
$
108,721
    
$
1,088,303
  
Geographical Markets
Geographic Markets
(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Three months ended September 30, 2023:
                        
North America
  
$
147,992
    
$
75,417
    
$
-
    
$
223,409
  
Europe
    
25,298
      
36,816
      
57
      
62,171
  
Asia Pacific
    
4,881
      
13,344
      
35,791
      
54,016
  
Other
    
6,858
      
16,449
      
926
      
24,233
  
Total revenue from external customers
  
$
185,029
    
$
142,026
    
$
36,774
    
$
363,829
  
                                 
Three months ended September 30, 2022:
                                
North America
  
$
142,097
    
$
74,220
    
$
27
    
$
216,344
  
Europe
    
26,795
      
34,591
      
44
      
61,430
  
Asia Pacific
    
7,091
      
16,770
      
34,433
      
58,294
  
Other
    
5,414
      
18,989
      
605
      
25,008
  
Total revenue from external customers
  
$
181,397
    
$
144,570
    
$
35,109
    
$
361,076
  

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Nine months ended September 30, 2023:
                        
North America
  
$
417,095
    
$
231,348
    
$
124
    
$
648,567
  
Europe
    
86,092
      
124,465
      
184
      
210,741
  
Asia Pacific
    
16,372
      
47,801
      
110,380
      
174,553
  
Other
    
19,194
      
51,893
      
2,200
      
73,287
  
Total revenue from external customers
  
$
538,753
    
$
455,507
    
$
112,888
    
$
1,107,148
  
                                 
Nine months ended September 30, 2022:
                                
North America
  
$
407,684
    
$
223,508
    
$
87
    
$
631,279
  
Europe
    
90,565
      
116,184
      
175
      
206,924
  
Asia Pacific
    
23,628
      
49,199
      
105,222
      
178,049
  
Other
    
17,137
      
51,677
      
3,237
      
72,051
  
Total revenue from external customers
  
$
539,014
    
$
440,568
    
$
108,721
    
$
1,088,303
 
v3.23.3
Retirement Plans (Tables)
 9 Months Ended
Sep. 30, 2023
Retirement Plans [Abstract]  
Annual Benefit Cost
The Company’s components of annual benefit cost for the defined benefit plans for the periods presented are as follows:
 

  
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
(In thousands)
  
2023
    
2022
    
2023
    
2022
  
Service cost
  
$
372
    
$
404
    
$
1,111
    
$
1,219
  
Interest cost
    
415
      
235
      
1,237
      
719
  
Expected return on plan assets
    
(248
)
    
(194
)
    
(732
)
    
(598
)
Recognized actuarial loss
    
(138
)
    
12
      
(415
)
    
36
  
Total defined benefit expense
  
$
401
    
$
457
    
$
1,201
    
$
1,376
  
v3.23.3
Accumulated Other Comprehensive Income (Tables)
 9 Months Ended
Sep. 30, 2023
Accumulated Other Comprehensive Income [Abstract]  
Changes in OCI
The following table summarizes the changes in OCI during the three and nine month periods ended September 30, 2023 and 2022:
(In thousands)
  
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at December 31, 2022
  
$
(599
)
  
$
(1,792
)
  
$
(198,297
)
  
$
(200,688
)
Other comprehensive income before reclassifications
    
2,974
      
-
      
8,977
      
11,951
  
Amounts reclassified from OCI
    
(1,432
)
    
(366
)
    
-
      
(1,798
)
Balances at September 30, 2023
  
$
943
    
$
(2,158
)
  
$
(189,320
)
  
$
(190,535
)

(In thousands)
  
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at June 30, 2023
  
$
1,997
    
$
(2,036
)
  
$
(177,182
)
  
$
(177,221
)
Other comprehensive loss before reclassifications
    
(239
)
    
-
      
(12,138
)
    
(12,377
)
Amounts reclassified from OCI
    
(815
)
    
(122
)
    
-
      
(937
)
Balances at September 30, 2023
  
$
943
    
$
(2,158
)
  
$
(189,320
)
  
$
(190,535
)

(In thousands)
  
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at December 31, 2021
  
$
206
    
$
(353
)
  
$
(174,481
)
  
$
(174,628
)
Other comprehensive income (loss) before reclassifications
    
516
      
-
      
(55,514
)
    
(54,998
)
Amounts reclassified from OCI
    
(621
)
    
24
      
-
      
(597
)
Balances at September 30, 2022
  
$
101
 
$
(329
)
  
$
(229,995
)
  
$
(230,223
)

(In thousands)
 
Cash Flow
Hedges (1)
    
Pension
Items (1)
    
Foreign
Currency
Items
    
Total
  
Balances at June 30, 2022
  
$
(152
)
  
$
(337
)
  
$
(202,683
)
  
$
(203,172
)
Other comprehensive income (loss) before reclassifications
    
380
      
-
      
(27,312
)
    
(26,932
)
Amounts reclassified from OCI
    
(127
)
    
8
      
-
      
(119
)
Balances at September 30, 2022
  
$
101
    
$
(329
)
  
$
(229,995
)
  
$
(230,223
)


(1)
Cash Flow Hedges and Pension Items are net of tax.
v3.23.3
Acquisition (Details) - USD ($)
$ in Thousands
 9 Months Ended
Oct. 03, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Acquisition [Abstract]        
Acquisition of new businesses   $ 0 $ 1,048  
Goodwill   $ 415,618   $ 415,715
Endemix [Member]        
Acquisition [Abstract]        
Acquisition of new businesses $ 23,300      
Debt assumed 1,300      
Amount of cash held back for indemnification claims 1,700      
Period for cash to be held back for post-closing working capital adjustments and indemnification claims   12 months    
Net assets acquired 8,900      
Goodwill 9,500      
Endemix [Member] | Technological Know-how and Customer Relationships [Member]        
Acquisition [Abstract]        
Intangibles assets acquired $ 4,900      
v3.23.3
Trade Accounts Receivable (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Sep. 30, 2023
USD ($)
Segment
Sep. 30, 2022
USD ($)
Trade Accounts Receivable [Abstract]        
Number of portfolio segments | Segment     1  
Accounts Receivable, Allowance for Credit Loss [Roll Forward]        
Beginning balance $ 4,293 $ 4,494 $ 4,436 $ 4,877
Provision for expected credit losses 13 51 504 883
Accounts written off (244) (33) (1,051) (1,129)
Translation and other activity (76) (105) 97 (224)
Ending balance $ 3,986 $ 4,407 $ 3,986 $ 4,407
v3.23.3
Inventories (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Inventories [Abstract]    
Finished and in-process products $ 414.8 $ 385.2
Raw materials and supplies $ 172.2 $ 178.9
v3.23.3
Debt (Details) - Senior Notes [Member]
€ in Millions, $ in Millions
 9 Months Ended
Sep. 30, 2023
May 31, 2023
USD ($)
May 31, 2023
EUR (€)
Long term debt [Abstract]      
Debt term 5 years    
Maturity date May 31, 2028    
Dollar [Member]      
Long term debt [Abstract]      
Senior notes | $   $ 75  
Interest rate, stated percentage   4.94% 4.94%
Euro [Member]      
Long term debt [Abstract]      
Senior notes | €     € 40
Interest rate, stated percentage   4.15% 4.15%
v3.23.3
Debt, Amendment No. 10 to the Receivables Purchase Agreement (Details)
 9 Months Ended
Sep. 30, 2023
Minimum [Member]  
Schedule of Long-Term Debt [Abstract]  
Maturity date Aug. 31, 2023
Maximum [Member]  
Schedule of Long-Term Debt [Abstract]  
Maturity date Aug. 30, 2024
v3.23.3
Fair Value (Details) - Level 2 [Member] - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Investments, Fair Value Disclosure [Abstract]    
Forward exchange contract, asset $ 1.0  
Foreign currency contracts, liability   $ 0.2
Carrying Value [Member]    
Investments, Fair Value Disclosure [Abstract]    
Long term debt 648.8 630.8
Fair Value [Member]    
Investments, Fair Value Disclosure [Abstract]    
Long term debt $ 639.5 $ 622.2
v3.23.3
Segment Information, Operating Results by Segment (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Sep. 30, 2023
USD ($)
Segment
Sep. 30, 2022
USD ($)
Segment Information [Abstract]        
Number of reportable segments | Segment     3  
Revenue [Abstract]        
Revenue $ 363,829 $ 361,076 $ 1,107,148 $ 1,088,303
Operating income (loss) 44,531 47,493 146,960 155,526
Interest expense 6,294 3,672 18,648 9,748
Earnings before income taxes 38,237 43,821 128,312 145,778
Flavors & Extracts [Member]        
Revenue [Abstract]        
Revenue 185,029 181,397 538,753 539,014
Operating income (loss) 23,078 26,337 69,714 83,929
Interest expense 0 0 0 0
Earnings before income taxes 23,078 26,337 69,714 83,929
Color [Member]        
Revenue [Abstract]        
Revenue 142,026 144,570 455,507 440,568
Operating income (loss) 22,925 28,200 84,027 90,035
Interest expense 0 0 0 0
Earnings before income taxes 22,925 28,200 84,027 90,035
Asia Pacific [Member]        
Revenue [Abstract]        
Revenue 36,774 35,109 112,888 108,721
Operating income (loss) 8,095 6,952 24,911 22,877
Interest expense 0 0 0 0
Earnings before income taxes 8,095 6,952 24,911 22,877
Reportable Segments [Member]        
Revenue [Abstract]        
Revenue 372,710 373,736 1,137,584 1,124,299
Reportable Segments [Member] | Flavors & Extracts [Member]        
Revenue [Abstract]        
Revenue 190,997 187,046 558,133 559,110
Reportable Segments [Member] | Color [Member]        
Revenue [Abstract]        
Revenue 144,939 151,469 466,563 456,175
Reportable Segments [Member] | Asia Pacific [Member]        
Revenue [Abstract]        
Revenue 36,774 35,221 112,888 109,014
Intersegment Revenue [Member]        
Revenue [Abstract]        
Revenue 8,881 12,660 30,436 35,996
Intersegment Revenue [Member] | Flavors & Extracts [Member]        
Revenue [Abstract]        
Revenue 5,968 5,649 19,380 20,096
Intersegment Revenue [Member] | Color [Member]        
Revenue [Abstract]        
Revenue 2,913 6,899 11,056 15,607
Intersegment Revenue [Member] | Asia Pacific [Member]        
Revenue [Abstract]        
Revenue 0 112 0 293
Corporate & Other [Member] | Corporate and Other [Member]        
Revenue [Abstract]        
Revenue 0 0 0 0
Operating income (loss) (9,567) (13,996) (31,692) (41,315)
Interest expense 6,294 3,672 18,648 9,748
Earnings before income taxes $ (15,861) $ (17,668) $ (50,340) $ (51,063)
v3.23.3
Segment Information, Revenue from External Customers by Product Line (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenue [Abstract]        
Revenue $ 363,829 $ 361,076 $ 1,107,148 $ 1,088,303
Flavors, Extracts & Flavor Ingredients [Member]        
Revenue [Abstract]        
Revenue 124,697 123,945 383,210 381,041
Natural Ingredients [Member]        
Revenue [Abstract]        
Revenue 66,300 63,101 174,923 178,069
Food & Pharmaceutical Colors [Member]        
Revenue [Abstract]        
Revenue 107,723 111,194 346,635 328,087
Personal Care [Member]        
Revenue [Abstract]        
Revenue 37,216 39,689 119,928 126,651
Inks [Member]        
Revenue [Abstract]        
Revenue   586   1,437
Flavors & Extracts [Member]        
Revenue [Abstract]        
Revenue 185,029 181,397 538,753 539,014
Flavors & Extracts [Member] | Flavors, Extracts & Flavor Ingredients [Member]        
Revenue [Abstract]        
Revenue 124,697 123,945 383,210 381,041
Flavors & Extracts [Member] | Natural Ingredients [Member]        
Revenue [Abstract]        
Revenue 66,300 63,101 174,923 178,069
Flavors & Extracts [Member] | Food & Pharmaceutical Colors [Member]        
Revenue [Abstract]        
Revenue 0 0 0 0
Flavors & Extracts [Member] | Personal Care [Member]        
Revenue [Abstract]        
Revenue 0 0 0 0
Flavors & Extracts [Member] | Inks [Member]        
Revenue [Abstract]        
Revenue   0   0
Color [Member]        
Revenue [Abstract]        
Revenue 142,026 144,570 455,507 440,568
Color [Member] | Flavors, Extracts & Flavor Ingredients [Member]        
Revenue [Abstract]        
Revenue 0 0 0 0
Color [Member] | Natural Ingredients [Member]        
Revenue [Abstract]        
Revenue 0 0 0 0
Color [Member] | Food & Pharmaceutical Colors [Member]        
Revenue [Abstract]        
Revenue 107,723 111,194 346,635 328,087
Color [Member] | Personal Care [Member]        
Revenue [Abstract]        
Revenue 37,216 39,689 119,928 126,651
Color [Member] | Inks [Member]        
Revenue [Abstract]        
Revenue   586   1,437
Asia Pacific [Member]        
Revenue [Abstract]        
Revenue 36,774 35,109 112,888 108,721
Asia Pacific [Member] | Flavors, Extracts & Flavor Ingredients [Member]        
Revenue [Abstract]        
Revenue 0 0 0 0
Asia Pacific [Member] | Natural Ingredients [Member]        
Revenue [Abstract]        
Revenue 0 0 0 0
Asia Pacific [Member] | Food & Pharmaceutical Colors [Member]        
Revenue [Abstract]        
Revenue 0 0 0 0
Asia Pacific [Member] | Personal Care [Member]        
Revenue [Abstract]        
Revenue 0 0 0 0
Asia Pacific [Member] | Inks [Member]        
Revenue [Abstract]        
Revenue   0   0
Reportable Segments [Member]        
Revenue [Abstract]        
Revenue 372,710 373,736 1,137,584 1,124,299
Reportable Segments [Member] | Flavors & Extracts [Member]        
Revenue [Abstract]        
Revenue 190,997 187,046 558,133 559,110
Reportable Segments [Member] | Color [Member]        
Revenue [Abstract]        
Revenue 144,939 151,469 466,563 456,175
Reportable Segments [Member] | Asia Pacific [Member]        
Revenue [Abstract]        
Revenue 36,774 35,221 112,888 109,014
Intersegment Revenue [Member]        
Revenue [Abstract]        
Revenue 8,881 12,660 30,436 35,996
Intersegment Revenue [Member] | Flavors & Extracts [Member]        
Revenue [Abstract]        
Revenue 5,968 5,649 19,380 20,096
Intersegment Revenue [Member] | Color [Member]        
Revenue [Abstract]        
Revenue 2,913 6,899 11,056 15,607
Intersegment Revenue [Member] | Asia Pacific [Member]        
Revenue [Abstract]        
Revenue $ 0 $ 112 $ 0 $ 293
v3.23.3
Segment Information, Revenue from External Customers by Geographic Markets (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenue [Abstract]        
Revenue $ 363,829 $ 361,076 $ 1,107,148 $ 1,088,303
North America [Member]        
Revenue [Abstract]        
Revenue 223,409 216,344 648,567 631,279
Europe [Member]        
Revenue [Abstract]        
Revenue 62,171 61,430 210,741 206,924
Asia Pacific [Member]        
Revenue [Abstract]        
Revenue 54,016 58,294 174,553 178,049
Other [Member]        
Revenue [Abstract]        
Revenue 24,233 25,008 73,287 72,051
Flavors & Extracts [Member]        
Revenue [Abstract]        
Revenue 185,029 181,397 538,753 539,014
Color [Member]        
Revenue [Abstract]        
Revenue 142,026 144,570 455,507 440,568
Asia Pacific [Member]        
Revenue [Abstract]        
Revenue 36,774 35,109 112,888 108,721
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | North America [Member]        
Revenue [Abstract]        
Revenue 147,992 142,097 417,095 407,684
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Europe [Member]        
Revenue [Abstract]        
Revenue 25,298 26,795 86,092 90,565
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Asia Pacific [Member]        
Revenue [Abstract]        
Revenue 4,881 7,091 16,372 23,628
Reportable Geographical Components [Member] | Flavors & Extracts [Member] | Other [Member]        
Revenue [Abstract]        
Revenue 6,858 5,414 19,194 17,137
Reportable Geographical Components [Member] | Color [Member] | North America [Member]        
Revenue [Abstract]        
Revenue 75,417 74,220 231,348 223,508
Reportable Geographical Components [Member] | Color [Member] | Europe [Member]        
Revenue [Abstract]        
Revenue 36,816 34,591 124,465 116,184
Reportable Geographical Components [Member] | Color [Member] | Asia Pacific [Member]        
Revenue [Abstract]        
Revenue 13,344 16,770 47,801 49,199
Reportable Geographical Components [Member] | Color [Member] | Other [Member]        
Revenue [Abstract]        
Revenue 16,449 18,989 51,893 51,677
Reportable Geographical Components [Member] | Asia Pacific [Member] | North America [Member]        
Revenue [Abstract]        
Revenue 0 27 124 87
Reportable Geographical Components [Member] | Asia Pacific [Member] | Europe [Member]        
Revenue [Abstract]        
Revenue 57 44 184 175
Reportable Geographical Components [Member] | Asia Pacific [Member] | Asia Pacific [Member]        
Revenue [Abstract]        
Revenue 35,791 34,433 110,380 105,222
Reportable Geographical Components [Member] | Asia Pacific [Member] | Other [Member]        
Revenue [Abstract]        
Revenue $ 926 $ 605 $ 2,200 $ 3,237
v3.23.3
Retirement Plans (Details) - Defined Benefit Plan [Member] - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]        
Service cost $ 372 $ 404 $ 1,111 $ 1,219
Interest cost 415 235 1,237 719
Expected return on plan assets (248) (194) (732) (598)
Recognized actuarial loss (138) 12 (415) 36
Total defined benefit expense $ 401 $ 457 $ 1,201 $ 1,376
v3.23.3
Derivative Instruments and Hedging Activity (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
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 Hedges [Member]          
Derivative Instruments and Hedging Activity for the Period [Abstract]          
Derivative, fair value $ 16.1   $ 16.1   $ 70.1
Amount of gains reclassified into net earnings 0.8   1.4 $ 0.6  
Foreign Currency Denominated Debt, Net Investment Hedging [Member]          
Derivative Instruments and Hedging Activity for the Period [Abstract]          
Carrying value of foreign denominated debt 328.8   328.8   $ 315.5
Impact of foreign exchange rates on debt instruments recorded in other comprehensive income $ (11.0) $ (18.4) $ (2.8) $ (42.4)  
v3.23.3
Income Taxes (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Income Taxes [Abstract]        
Effective income tax rates 17.50% 17.70% 22.70% 23.30%
v3.23.3
Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance $ 1,054,264 $ 958,967 $ 999,598 $ 938,425
Other comprehensive income (loss) before reclassifications (12,377) (26,932) 11,951 (54,998)
Amounts reclassified from OCI (937) (119) (1,798) (597)
Ending balance 1,057,656 954,514 1,057,656 954,514
Accumulated Other Comprehensive (Loss) Income [Member]        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance (177,221) (203,172) (200,688) (174,628)
Ending balance (190,535) (230,223) (190,535) (230,223)
Cash Flow Hedges [Member]        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance [1] 1,997 (152) (599) 206
Other comprehensive income (loss) before reclassifications [1] (239) 380 2,974 516
Amounts reclassified from OCI [1] (815) (127) (1,432) (621)
Ending balance [1] 943 101 943 101
Pension Items [Member]        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance [1] (2,036) (337) (1,792) (353)
Other comprehensive income (loss) before reclassifications [1] 0 0 0 0
Amounts reclassified from OCI [1] (122) 8 (366) 24
Ending balance [1] (2,158) (329) (2,158) (329)
Foreign Currency Items [Member]        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance (177,182) (202,683) (198,297) (174,481)
Other comprehensive income (loss) before reclassifications (12,138) (27,312) 8,977 (55,514)
Amounts reclassified from OCI 0 0 0 0
Ending balance $ (189,320) $ (229,995) $ (189,320) $ (229,995)
[1] Cash Flow Hedges and Pension Items are net of tax.
v3.23.3
Subsequent Events (Details) - Subsequent Events [Member]
Oct. 19, 2023
$ / shares
Subsequent Events [Abstract]  
Dividend declared date Oct. 19, 2023
Dividend payable (in dollars per share) $ 0.41
Dividend payable date Dec. 01, 2023
Sensient Technologies (NYSE:SXT)
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