Segment and Geographic Information

12 Months Ended

Dec. 31, 2012

Segment and Geographic Information [Abstract]

Segment Information

9. SEGMENT AND GEOGRAPHIC INFORMATION

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on operating income of the respective business units before restructuring charges, interest expense and income taxes. Total revenue and 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. Corporate & Other revenue consists primarily of flavor, fragrances and color products sold by the Asia Pacific Group, China Group and Flavors Central & South America Group.

Assets by business segment and geographic region are those assets used in the Company's operations in each segment and geographic region. Segment assets reflect the allocation of goodwill to each segment. Corporate & Other assets consist primarily of property and investments.

Segment Information The Company determines its operating segments based on information utilized by the chief operating decision maker to allocate resources and assess performance. The Company's reportable segments consist of Flavors & Fragrances and Color and are both managed on a products and services basis. The Company's Flavors & Fragrances segment produces flavor and fragrance products that impart a desired taste, texture, aroma or other characteristic to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for pharmaceuticals, foods and beverages; colors and formulations for cosmetics; and technical colors for industrial applications and digital imaging. Three additional segments, Asia Pacific, China and Flavors Central & South America are managed on a geographic basis and included in Corporate & Other.

In 2012, Flavors Central & South America was established to give management greater insight into the Company's flavors operations in this growing region. Previously, these results were included in Flavors & Fragrances. Results for 2011 and 2010 have been restated to reflect this change.

	Flavors &				Corporate
(in thousands)	Fragrances		Color		& Other			Consolidated
2012
Revenue from external customers	$	837,549	$	467,975	$	153,526		$	1,459,050
Intersegment revenue		37,732		26,170		3,286			67,188
Total revenue		875,281		494,145		156,812			1,526,238
Operating income (loss)		122,997		94,058		(25,847	)		191,208
Interest expense		—		—		16,901			16,901
Earnings (loss) before income taxes		122,997		94,058		(42,748	)		174,307
Assets		860,395		738,918		177,330			1,776,643
Capital expenditures		49,781		46,003		8,022			103,806
Depreciation and amortization		27,021		15,456		5,875			48,352
2011
Revenue from external customers	$	821,933	$	467,691	$	141,165		$	1,430,789
Intersegment revenue		35,527		24,190		2,400			62,117
Total revenue		857,460		491,881		143,565			1,492,906
Operating income (loss)		129,436		90,217		(28,830	)		190,823
Interest expense		—		—		19,439			19,439
Earnings (loss) before income taxes		129,436		90,217		(48,269	)		171,384
Assets		803,844		695,251		155,069			1,654,164
Capital expenditures		34,999		30,121		7,080			72,200
Depreciation and amortization		26,743		14,086		5,270			46,099
2010
Revenue from external customers	$	774,792	$	430,782	$	122,606		$	1,328,180
Intersegment revenue		31,255		16,679		2,313			50,247
Total revenue		806,047		447,461		124,919			1,378,427
Operating income (loss)		120,329		77,404		(23,156	)		174,577
Interest expense		—		—		20,384			20,384
Earnings (loss) before income taxes		120,329		77,404		(43,540	)		154,193
Assets		784,143		676,656		138,469			1,599,268
Capital expenditures		27,129		22,306		6,388			55,823
Depreciation and amortization		24,836		13,473		5,114			43,423

Geographic Information The Company has manufacturing facilities or sales offices in North America, South America, Europe, Asia, Australia and Africa.

(in thousands)	2012		2011		2010
Revenue from external customers:
North America	$	785,919	$	737,154	$	699,429
Europe		371,658		405,312		374,616
Asia Pacific		199,849		190,404		166,809
Other		101,624		97,919		87,326
Consolidated	$	1,459,050	$	1,430,789	$	1,328,180
Long-lived assets:
North America	$	504,483	$	444,656	$	420,084
Europe		472,865		456,248		470,811
Asia Pacific		35,891		35,151		34,993
Other		12,050		11,239		1,075
Consolidated	$	1,025,289	$	947,294	$	926,963

Sales in the United States, based on the final country of destination of the Company's products, were $598.5 million, $561.9 million and $529.6 million in 2012, 2011 and 2010, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $360.1 million, $345.1 million and $317.5 million at December 31, 2012, 2011 and 2010, respectively.

Product Information The Company's revenue summarized by product portfolio is as follows:

(in thousands)	2012			2011			2010
Traditional Flavors & Fragrances	$	725,200		$	710,658		$	659,133
Dehydrated Flavors		252,941			240,849			232,131
Food & Beverage Colors		312,288			319,273			282,411
Non-Food Colors		235,809			222,126			204,752
Intersegment Revenue		(67,188	)		(62,117	)		(50,247	)
Consolidated	$	1,459,050		$	1,430,789		$	1,328,180