Segment Information

6 Months Ended

Jun. 30, 2021

Segment Information [Abstract]

Segment Information

8. 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; and 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 and six months ended June 30, 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 June 30, 2021:
Revenue from external customers	$	174,699	$	128,830	$	32,298	$	-		$	335,827
Intersegment revenue		4,702		4,377		19		-			9,098
Total revenue	$	179,401	$	133,207	$	32,317	$	-		$	344,925
Operating income (loss)	$	24,536	$	25,615	$	5,793	$	(20,191	)	$	35,753
Interest expense		-		-		-		3,322			3,322
Earnings (loss) before income taxes	$	24,536	$	25,615	$	5,793	$	(23,513	)	$	32,431
Three months ended June 30, 2020:
Revenue from external customers	$	178,430	$	116,879	$	27,781	$	-		$	323,090
Intersegment revenue		5,181		4,417		92		-			9,690
Total revenue	$	183,611	$	121,296	$	27,873	$	-		$	332,780
Operating income (loss)	$	22,752	$	22,263	$	4,849	$	(7,739	)	$	42,125
Interest expense		-		-		-		3,608			3,608
Earnings (loss) before income taxes	$	22,752	$	22,263	$	4,849	$	(11,347	)	$	38,517

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Corporate & Other			Consolidated
Six months ended June 30, 2021:
Revenue from external customers	$	369,360	$	260,031	$	66,138	$	-		$	695,529
Intersegment revenue		10,952		8,896		19		-			19,867
Total revenue	$	380,312	$	268,927	$	66,157	$	-		$	715,396
Operating income (loss)	$	51,554	$	52,209	$	12,545	$	(33,658	)	$	82,650
Interest expense		-		-		-		6,755			6,755
Earnings (loss) before income taxes	$	51,554	$	52,209	$	12,545	$	(40,413	)	$	75,895
Six months ended June 30, 2020:
Revenue from external customers	$	359,617	$	256,072	$	58,078	$	-		$	673,767
Intersegment revenue		10,492		8,719		244		-			19,455
Total revenue	$	370,109	$	264,791	$	58,322	$	-		$	693,222
Operating income (loss)	$	43,623	$	51,927	$	9,908	$	(28,772	)	$	76,686
Interest expense		-		-		-		7,915			7,915
Earnings (loss) before income taxes	$	43,623	$	51,927	$	9,908	$	(36,687	)	$	68,771

Product Lines

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Three months ended June 30, 2021:
Flavors, Extracts & Flavor Ingredients	$	111,763		$	-		$	-		$	111,763
Natural Ingredients		60,302			-			-			60,302
Fragrances		5,921			-			-			5,921
Yogurt Fruit Preparations		1,415			-			-			1,415
Food & Pharmaceutical Colors		-			94,092			-			94,092
Personal Care		-			38,323			-			38,323
Inks		-			792			-			792
Asia Pacific		-			-			32,317			32,317
Intersegment Revenue		(4,702	)		(4,377	)		(19	)		(9,098	)
Total revenue from external customers	$	174,699		$	128,830		$	32,298		$	335,827
Three months ended June 30, 2020:
Flavors, Extracts & Flavor Ingredients	$	101,642		$	-		$	-		$	101,642
Natural Ingredients		57,227			-			-			57,227
Fragrances		21,077			-			-			21,077
Yogurt Fruit Preparations		3,665			-			-			3,665
Food & Pharmaceutical Colors		-			86,825			-			86,825
Personal Care		-			31,095			-			31,095
Inks		-			3,376			-			3,376
Asia Pacific		-			-			27,873			27,873
Intersegment Revenue		(5,181	)		(4,417	)		(92	)		(9,690	)
Total revenue from external customers	$	178,430		$	116,879		$	27,781		$	323,090

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Six months ended June 30, 2021:
Flavors, Extracts & Flavor Ingredients	$	219,853		$	-		$	-		$	219,853
Natural Ingredients		122,506			-			-			122,506
Fragrances		34,388			-			-			34,388
Yogurt Fruit Preparations		3,565			-			-			3,565
Food & Pharmaceutical Colors		-			187,877			-			187,877
Personal Care		-			79,838			-			79,838
Inks		-			1,212			-			1,212
Asia Pacific		-			-			66,157			66,157
Intersegment Revenue		(10,952	)		(8,896	)		(19	)		(19,867	)
Total revenue from external customers	$	369,360		$	260,031		$	66,138		$	695,529
Six months ended June 30, 2020:
Flavors, Extracts & Flavor Ingredients	$	203,095		$	-		$	-		$	203,095
Natural Ingredients		114,827			-			-			114,827
Fragrances		43,361			-			-			43,361
Yogurt Fruit Preparations		8,826			-			-			8,826
Food & Pharmaceutical Colors		-			177,618			-			177,618
Personal Care		-			74,838			-			74,838
Inks		-			12,335			-			12,335
Asia Pacific		-			-			58,322			58,322
Intersegment Revenue		(10,492	)		(8,719	)		(244	)		(19,455	)
Total revenue from external customers	$	359,617		$	256,072		$	58,078		$	673,767

Geographic Markets

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Three months ended June 30, 2021:
North America	$	128,665	$	57,264	$	37	$	185,966
Europe		32,654		37,906		54		70,614
Asia Pacific		8,161		18,543		31,794		58,498
Other		5,219		15,117		413		20,749
Total revenue from external customers	$	174,699	$	128,830	$	32,298	$	335,827
Three months ended June 30, 2020:
North America	$	120,827	$	61,370	$	-	$	182,197
Europe		39,272		25,250		45		64,567
Asia Pacific		8,103		16,195		27,135		51,433
Other		10,228		14,064		601		24,893
Total revenue from external customers	$	178,430	$	116,879	$	27,781	$	323,090

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Six months ended June 30, 2021:
North America	$	258,308	$	120,934	$	62	$	379,304
Europe		77,222		75,184		76		152,482
Asia Pacific		17,878		33,381		64,352		115,611
Other		15,952		30,532		1,648		48,132
Total revenue from external customers	$	369,360	$	260,031	$	66,138	$	695,529
Six months ended June 30, 2020:
North America	$	237,528	$	127,635	$	-	$	365,163
Europe		83,149		63,988		67		147,204
Asia Pacific		17,458		32,170		56,257		105,885
Other		21,482		32,279		1,754		55,515
Total revenue from external customers	$	359,617	$	256,072	$	58,078	$	673,767