Segment and Geographic Information

12 Months Ended

Dec. 31, 2021

Segment and Geographic Information [Abstract]

Segment and Geographic Information

12. 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 before divestiture & other related costs, share-based compensation, restructuring and other charges including operational improvement plan costs and income, the one-time COVID-19 employee payment in 2020, 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 investments, deferred tax assets, and fixed assets.

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 divestiture & other related costs, share-based compensation, and restructuring and other charges including operational improvement plan costs and income, which are reported in Corporate & Other.

The Company’s three reportable segments are 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, extracts, and essential oils 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 technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color, flavor, and essential oils products for the Asia Pacific countries. The Company’s corporate expenses, divestiture & other related costs, share-based compensation, operational improvement plan expenses and income, the one-time COVID-19 employee payment, 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 and income, for the years ended December 31, 2021, 2020, and 2019, are further described in Note 14, Divestitures, and Note 15, 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.

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Corporate & Other			Consolidated
2021:
Revenue from external customers	$	717,688	$	527,626	$	134,950	$	-		$	1,380,264
Intersegment revenue		21,739		17,644		398		-			39,781
Total revenue		739,427		545,270		135,348		-			1,420,045
Operating income (loss)		98,660		103,575		26,330		(58,537	)		170,028
Interest expense		-		-		-		12,544			12,544
Earnings (loss) before income taxes		98,660		103,575		26,330		(71,081	)		157,484
Assets		639,992		738,139		108,126		259,236			1,745,493
Capital expenditures		35,846		16,806		2,813		5,323			60,788
Depreciation and amortization		26,020		20,572		2,748		2,711			52,051
2020:
Revenue from external customers	$	724,483	$	486,536	$	120,982	$	-		$	1,332,001
Intersegment revenue		17,552		14,482		245		-			32,279
Total revenue		742,035		501,018		121,227		-			1,364,280
Operating income (loss)		90,974		96,034		22,075		(56,427	)		152,656
Interest expense		-		-		-		14,811			14,811
Earnings (loss) before income taxes		90,974		96,034		22,075		(71,238	)		137,845
Assets		686,348		718,665		100,258		235,589			1,740,860
Capital expenditures		24,541		19,840		2,687		5,094			52,162
Depreciation and amortization		24,801		19,368		2,578		2,894			49,641
2019:
Revenue from external customers	$	682,705	$	522,051	$	118,178	$	-		$	1,322,934
Intersegment revenue		17,651		13,108		70		-			30,829
Total revenue		700,356		535,159		118,248		-			1,353,763
Operating income (loss)		74,961		101,190		19,382		(74,423	)		121,110
Interest expense		-		-		-		20,107			20,107
Earnings (loss) before income taxes		74,961		101,190		19,382		(94,530	)		101,003
Assets		714,779		734,343		99,183		191,846			1,740,151
Capital expenditures		16,968		16,521		2,545		3,066			39,100
Depreciation and amortization		27,179		22,088		2,581		3,167			55,015

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 summarized by geographic location is as follows:

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Corporate & Other		Consolidated
2021:
Revenue from external customers:
North America	$	523,960	$	263,031	$	116	$	-	$	787,107
Europe		135,348		142,741		140		-		278,229
Asia Pacific		29,880		59,914		131,772		-		221,566
Other		28,500		61,940		2,922		-		93,362
Total revenue from external customers	$	717,688	$	527,626	$	134,950	$	-	$	1,380,264
Long-lived assets:
North America	$	268,934	$	250,682	$	-	$	105,150	$	624,766
Europe		91,934		225,916		-		25		317,875
Asia Pacific		275		4,513		32,901		-		37,689
Other		568		23,442		-		-		24,010
Total long-lived assets	$	361,711	$	504,553	$	32,901	$	105,175	$	1,004,340
2020:
Revenue from external customers:
North America	$	491,641	$	241,608	$	81	$	-	$	733,330
Europe		160,083		129,704		193		-		289,980
Asia Pacific		30,080		52,414		117,427		-		199,921
Other		42,679		62,810		3,281		-		108,770
Total revenue from external customers	$	724,483	$	486,536	$	120,982	$	-	$	1,332,001
Long-lived assets:
North America	$	244,921	$	252,906	$	-	$	102,577	$	600,404
Europe		112,424		226,840		-		-		339,264
Asia Pacific		204		4,670		31,834		-		36,708
Other		782		22,116		-		-		22,898
Total long-lived assets	$	358,331	$	506,532	$	31,834	$	102,577	$	999,274
2019:
Revenue from external customers:
North America	$	448,393	$	251,593	$	112	$	-	$	700,098
Europe		158,902		148,393		336		-		307,631
Asia Pacific		32,203		57,268		116,508		-		205,979
Other		43,207		64,797		1,222		-		109,226
Total revenue from external customers	$	682,705	$	522,051	$	118,178	$	-	$	1,322,934
Long-lived assets:
North America	$	251,822	$	220,723	$	-	$	80,128	$	552,673
Europe		102,631		242,311		-		-		344,942
Asia Pacific		1,017		3,758		31,007		-		35,782
Other		504		18,037		-		-		18,541
Total long-lived assets	$	355,974	$	484,829	$	31,007	$	80,128	$	951,938

Sales in the United States, based on the final country of destination of the Company’s products, were $658.0 million, $614.3 million, and $575.2 million, in 2021, 2020, and 2019, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $550.3 million, $518.2 million, and $471.8 million, at December 31, 2021, 2020, and 2019, respectively.

Product Information

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

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
2021:
Flavors, Extracts & Flavor Ingredients	$	455,818		$	-		$	-		$	455,818
Natural Ingredients		255,772			-			-			255,772
Fragrances		22,739			-			-			22,739
Yogurt Fruit Preparations		5,098			-			-			5,098
Food & Pharmaceutical Colors		-			385,069			-			385,069
Personal Care		-			158,237			-			158,237
Inks		-			1,964			-			1,964
Asia Pacific		-			-			135,348			135,348
Intersegment Revenue		(21,739	)		(17,644	)		(398	)		(39,781	)
Total revenue from external customers	$	717,688		$	527,626		$	134,950		$	1,380,264
2020:
Flavors, Extracts & Flavor Ingredients	$	399,331		$	-		$	-		$	399,331
Natural Ingredients		243,161			-			-			243,161
Fragrances		85,354			-			-			85,354
Yogurt Fruit Preparations		14,189			-			-			14,189
Food & Pharmaceutical Colors		-			346,269			-			346,269
Personal Care		-			141,331			-			141,331
Inks		-			13,418			-			13,418
Asia Pacific		-			-			121,227			121,227
Intersegment Revenue		(17,552	)		(14,482	)		(245	)		(32,279	)
Total revenue from external customers	$	724,483		$	486,536		$	120,982		$	1,332,001
2019:
Flavors, Extracts & Flavor Ingredients	$	378,967		$	-		$	-		$	378,967
Natural Ingredients		214,027			-			-			214,027
Fragrances		86,399			-			-			86,399
Yogurt Fruit Preparations		20,963			-			-			20,963
Food & Pharmaceutical Colors		-			340,327			-			340,327
Personal Care		-			159,640			-			159,640
Inks		-			35,192			-			35,192
Asia Pacific		-			-			118,248			118,248
Intersegment Revenue		(17,651	)		(13,108	)		(70	)		(30,829	)
Total revenue from external customers	$	682,705		$	522,051		$	118,178		$	1,322,934