Segment and Geographic Information

12 Months Ended

Dec. 31, 2016

Segment and Geographic Information [Abstract]

Segment and Geographic Information

11. 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 Corporate & Other.

The Company’s three reportable segments are Flavors & Fragrances and Color segments, which are managed on a product line basis, and the Asia Pacific segment, which is managed on a geographic 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. The Asia Pacific segment is managed on a geographic basis and produces color, flavor and fragrance products for the Asia Pacific countries. The Company’s corporate expenses and restructuring and other costs are included in the “Corporate & Other” category.

The results of operations for the Company’s color business in China, South Korea and Japan, which were previously reported in the Asia Pacific segment, are now reported in the Color 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, 2016, 2015 and 2014, are further described in Note 13, Restructuring Charges, and Note 15, Divestiture, and are included in the operating income (loss) results in Corporate & Other 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 Corporate & Other. In addition, the Company’s corporate expenses are included in Corporate & Other.

(In thousands)	Flavors & Fragrances		Color		Asia Pacific		Corporate & Other			Consolidated
2016:
Revenue from external customers	$	768,956	$	487,071	$	127,183	$	—		$	1,383,210
Intersegment revenue		26,300		15,002		286		—			41,588
Total revenue		795,256		502,073		127,469		—			1,424,798
Operating income (loss)		123,530		104,785		25,161		(67,867	)		185,609
Interest expense		—		—		—		18,324			18,324
Earnings (loss) before income taxes from continuing operations		123,530		104,785		25,161		(86,191	)		167,285
Assets		784,421		672,028		94,957		116,454			1,667,860
Capital expenditures		57,622		15,422		5,199		2,973			81,216
Depreciation and amortization		22,897		19,021		2,442		2,659			47,019
2015:
Revenue from external customers	$	793,386	$	466,095	$	116,483	$	—		$	1,375,964
Intersegment revenue		25,623		13,871		180		—			39,674
Total revenue		819,009		479,966		116,663		—			1,415,638
Operating income (loss)		121,874		96,611		23,684		(75,828	)		166,341
Interest expense		—		—		—		16,945			16,945
Earnings (loss) before income taxes from continuing operations		121,874		96,611		23,684		(92,773	)		149,396
Assets		806,401		712,580		76,884		107,867			1,703,732
Capital expenditures		56,233		18,933		2,643		2,132			79,941
Depreciation and amortization		24,049		19,002		1,876		3,012			47,939
2014:
Revenue from external customers	$	825,976	$	503,800	$	118,045	$	—		$	1,447,821
Intersegment revenue		25,570		15,765		205		—			41,540
Total revenue		851,546		519,565		118,250		—			1,489,361
Operating income (loss)		120,888		116,238		22,898		(129,359	)		130,665
Interest expense		—		—		—		16,067			16,067
Earnings (loss) before income taxes from continuing operations		120,888		116,238		22,898		(145,426	)		114,598
Assets		819,366		752,422		80,158		120,093			1,772,039
Capital expenditures		41,244		31,883		2,010		4,261			79,398
Depreciation and amortization		26,316		19,332		1,984		3,824			51,456

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)	2016		2015		2014
Revenue from external customers:
North America	$	745,660	$	744,481	$	750,345
Europe		342,818		349,100		389,588
Asia Pacific		196,884		177,559		193,163
Other		97,848		104,824		114,725
Consolidated	$	1,383,210	$	1,375,964	$	1,447,821
Long-lived assets:
North America	$	548,674	$	541,654	$	566,236
Europe		361,029		397,244		423,972
Asia Pacific		30,006		26,589		29,948
Other		11,090		9,340		14,229
Consolidated	$	950,799	$	974,827	$	1,034,385

Sales in the United States, based on the final country of destination of the Company’s products, were $595.0 million, $592.9 million and $573.6 million in 2016, 2015 and 2014, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $495.3 million, $486.1 million and $479.4 million at December 31, 2016, 2015 and 2014, respectively.

Product Information

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

(In thousands)	2016			2015			2014
Traditional Flavors & Fragrances	$	653,794		$	667,941		$	715,789
Natural Ingredients		240,710			240,793			227,538
Food & Beverage Colors		299,415			298,457			307,343
Non-Food Colors		230,879			208,447			238,691
Interdivision Revenue		(41,588	)		(39,674	)		(41,540	)
Consolidated	$	1,383,210		$	1,375,964		$	1,447,821