Segment Information

3 Months Ended

Mar. 31, 2021

Segment Information [Abstract]

Segment Information

7. Segment Information

The Company evaluates performance based on operating income before divestiture & other related costs, share-based compensation, restructuring and other charges including operational improvement plan costs, 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 and fragrance products that impart a desired taste, texture, aroma, or other characteristic to a broad range of consumers and other products. The Color segment produces natural and synthetic color systems for foods, beverages, pharmaceuticals and nutraceuticals; colors, ingredients, and systems for cosmetics; specialty inks and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color and flavor products for the Asia Pacific countries. The Company’s corporate expenses, divestiture & other related costs, share-based compensation, operational improvement plan expenses, and other costs are included in the “Corporate & Other” category.

Divestiture & other related costs and restructuring and other costs, including the operational improvement plan costs, for the three months ended March 31, 2021 and 2020, are further described in Note 2, Divestitures, and Note 3, Operational Improvement Plan, and are included in the operating income (loss) results in Corporate & Other below. In addition, the Company’s corporate expenses and share-based compensation are included in Corporate & Other.

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

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Corporate & Other			Consolidated
Three months ended March 31, 2021:
Revenue from external customers	$	194,661	$	131,201	$	33,840	$	-		$	359,702
Intersegment revenue		6,250		4,519		-		-			10,769
Total revenue	$	200,911	$	135,720	$	33,840	$	-		$	370,471
Operating income (loss)	$	27,018	$	26,594	$	6,752	$	(13,467	)	$	46,897
Interest expense		-		-		-		3,433			3,433
Earnings (loss) before income taxes	$	27,018	$	26,594	$	6,752	$	(16,900	)	$	43,464
Three months ended March 31, 2020:
Revenue from external customers	$	181,187	$	139,193	$	30,297	$	-		$	350,677
Intersegment revenue		5,311		4,302		152		-			9,765
Total revenue	$	186,498	$	143,495	$	30,449	$	-		$	360,442
Operating income (loss)	$	20,871	$	29,664	$	5,059	$	(21,033	)	$	34,561
Interest expense		-		-		-		4,307			4,307
Earnings (loss) before income taxes	$	20,871	$	29,664	$	5,059	$	(25,340	)	$	30,254

Product Lines

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Three months ended March 31, 2021:
Flavors, Extracts & Flavor Ingredients	$	108,090		$	-		$	-		$	108,090
Natural Ingredients		62,204			-			-			62,204
Fragrances		28,467			-			-			28,467
Yogurt Fruit Preparations		2,150			-			-			2,150
Food & Pharmaceutical Colors		-			93,785			-			93,785
Personal Care		-			41,515			-			41,515
Inks		-			420			-			420
Asia Pacific		-			-			33,840			33,840
Intersegment Revenue		(6,250	)		(4,519	)		-			(10,769	)
Total revenue from external customers	$	194,661		$	131,201		$	33,840		$	359,702
Three months ended March 31, 2020:
Flavors, Extracts & Flavor Ingredients	$	101,453		$	-		$	-		$	101,453
Natural Ingredients		57,600			-			-			57,600
Fragrances		22,284			-			-			22,284
Yogurt Fruit Preparations		5,161			-			-			5,161
Food & Pharmaceutical Colors		-			90,793			-			90,793
Personal Care		-			43,743			-			43,743
Inks		-			8,959			-			8,959
Asia Pacific		-			-			30,449			30,449
Intersegment Revenue		(5,311	)		(4,302	)		(152	)		(9,765	)
Total revenue from external customers	$	181,187		$	139,193		$	30,297		$	350,677

Geographic Markets

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Three months ended March 31, 2021:
North America	$	129,643	$	63,670	$	25	$	193,338
Europe		44,568		37,278		22		81,868
Asia Pacific		9,717		14,838		32,558		57,113
Other		10,733		15,415		1,235		27,383
Total revenue from external customers	$	194,661	$	131,201	$	33,840	$	359,702
Three months ended March 31, 2020:
North America	$	116,701	$	66,265	$	-	$	182,966
Europe		43,877		38,738		22		82,637
Asia Pacific		9,355		15,975		29,122		54,452
Other		11,254		18,215		1,153		30,622
Total revenue from external customers	$	181,187	$	139,193	$	30,297	$	350,677