Segment and Geographic Information

12 Months Ended

Dec. 31, 2015

Segment and Geographic Information [Abstract]

Segment and Geographic Information

10. 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 and other charges, 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.

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 fixed assets and investments.

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 of the respective business units before restructuring charges which are reported in the Corporate & Other segment.

The Company’s reportable segments consist of the Flavors & Fragrances, Color, and Asia Pacific segments. The Asia Pacific segment, which was previously reported in the Corporate & Other segment, meets the quantitative thresholds outlined in ASC 280, Segment Reporting, to be reported separately as of December 31, 2015.

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. The Asia Pacific segment is managed on a geographic basis and produces color, flavor and fragrance products for the Asia Pacific countries.

The results of operations for the Company’s businesses in Central and South America have been included in the Flavors & Fragrances segment, beginning in 2015. Previously, they had been reported in the Corporate & Other segment. All prior year results have been restated to reflect each of these changes.

Restructuring and other costs related to continuing operations for the years ended December 31, 2015, 2014, and 2013, are further described in Note 12, Restructuring Charges, and are included in the operating income (loss) results in the Corporate & Other segment below. Consistent with presentation in the Consolidated Balance Sheets and Statements of Cash Flows, the below amounts for assets, capital expenditures, and depreciation and amortization include discontinued operations for all periods presented and are included in the Corporate & Other segment.

(In thousands)	Flavors & Fragrances		Color		Asia Pacific		Corporate & Other			Consolidated
2015:
Revenue from external customers	$	793,386	$	452,203	$	130,375	$	—		$	1,375,964
Intersegment revenue		25,623		18,736		180		—			44,539
Total revenue		819,009		470,939		130,555		—			1,420,503
Operating income (loss)		121,874		94,799		25,496		(75,828	)		166,341
Interest expense		—		—		—		16,945			16,945
Earnings (loss) before income taxes from continuing operations		121,874		94,799		25,496		(92,773	)		149,396
Assets		806,401		706,769		82,696		115,571			1,711,437
Capital expenditures		56,233		18,933		2,643		2,132			79,941
Depreciation and amortization		24,049		18,529		2,349		3,012			47,939
2014:
Revenue from external customers	$	825,976	$	488,762	$	133,083	$	—		$	1,447,821
Intersegment revenue		25,570		20,574		229		—			46,373
Total revenue		851,546		509,336		133,312		—			1,494,194
Operating income (loss)		120,888		114,014		25,122		(129,359	)		130,665
Interest expense		—		—		—		16,067			16,067
Earnings (loss) before income taxes from continuing operations		120,888		114,014		25,122		(145,426	)		114,598
Assets		819,366		747,738		84,842		113,260			1,765,206
Capital expenditures		41,244		31,883		2,010		4,261			79,398
Depreciation and amortization		26,316		18,843		2,473		3,824			51,456
2013:
Revenue from external customers	$	854,515	$	475,061	$	132,550	$	—		$	1,462,126
Intersegment revenue		26,071		21,246		97		—			47,414
Total revenue		880,586		496,307		132,647		—			1,509,540
Operating income (loss)		121,806		107,214		22,161		(77,401	)		173,780
Interest expense		—		—		—		16,147			16,147
Earnings (loss) before income taxes from continuing operations		121,806		107,214		22,161		(93,548	)		157,633
Assets		901,870		778,864		87,708		102,292			1,870,734
Capital expenditures		59,086		38,639		1,670		4,851			104,246
Depreciation and amortization		27,575		17,607		2,543		4,291			52,016

Geographic Information

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

The Company’s annual revenue from continuing operations summarized by geographic location is as follows:

(In thousands)	2015		2014		2013
Revenue from external customers:
North America	$	744,481	$	750,345	$	782,088
Europe		349,100		389,588		382,077
Asia Pacific		177,559		193,163		188,917
Other		104,824		114,725		109,044
Consolidated	$	1,375,964	$	1,447,821	$	1,462,126
Long-lived assets:
North America	$	524,921	$	537,668	$	531,005
Europe		397,244		423,972		506,352
Asia Pacific		26,589		29,948		32,148
Other		9,340		14,229		11,404
Consolidated	$	958,094	$	1,005,817	$	1,080,909

Sales in the United States, based on the final country of destination of the Company’s products, were $592.9 million, $573.6 million and $590.0 million in 2015, 2014 and 2013, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $469.4 million, $450.8 million and $389.7 million at December 31, 2015, 2014 and 2013, respectively.

Product Information

The Company’s revenue from continuing operations summarized by product portfolio is as follows:

(In thousands)	2015			2014			2013
Traditional Flavors & Fragrances	$	667,941		$	715,789		$	727,659
Natural Ingredients		240,793			227,538			244,155
Food & Beverage Colors		328,200			335,771			308,371
Non-Food Colors		183,569			215,096			229,355
Interdivision Revenue		(44,539	)		(46,373	)		(47,414	)
Consolidated	$	1,375,964		$	1,447,821		$	1,462,126