Segment Information

3 Months Ended

Mar. 31, 2022

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, extracts and essential oils products that impart a desired taste, texture, aroma, and/or other characteristics to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for cosmetics, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, such as colors, flavors, coatings, and nutraceutical ingredients; 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, 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. There were no divestiture & other related costs or Operational Improvement Plan costs for the three months ended March 31, 2022. 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, 2022:
Revenue from external customers	$	175,202	$	143,928	$	36,391	$	-		$	355,521
Intersegment revenue		7,525		4,510		74		-			12,109
Total revenue	$	182,727	$	148,438	$	36,465	$	-		$	367,630
Operating income (loss)	$	27,579	$	30,657	$	8,204	$	(13,651	)	$	52,789
Interest expense		-		-		-		2,993			2,993
Earnings (loss) before income taxes	$	27,579	$	30,657	$	8,204	$	(16,644	)	$	49,796
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

Product Lines

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Three months ended March 31, 2022:
Flavors, Extracts & Flavor Ingredients	$	126,518		$	-		$	-		$	126,518
Natural Ingredients		56,209			-			-			56,209
Food & Pharmaceutical Colors		-			103,109			-			103,109
Personal Care		-			44,846			-			44,846
Inks		-			483			-			483
Asia Pacific		-			-			36,465			36,465
Intersegment Revenue		(7,525	)		(4,510	)		(74	)		(12,109	)
Total revenue from external customers	$	175,202		$	143,928		$	36,391		$	355,521
Three months ended March 31, 2021:
Flavors, Extracts & Flavor Ingredients	$	113,818		$	-		$	-		$	113,818
Natural Ingredients		62,204			-			-			62,204
Fragrances		22,739			-			-			22,739
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

Geographic Markets

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Three months ended March 31, 2022:
North America	$	126,702	$	69,928	$	58	$	196,688
Europe		32,605		41,978		81		74,664
Asia Pacific		9,737		16,016		33,982		59,735
Other		6,158		16,006		2,270		24,434
Total revenue from external customers	$	175,202	$	143,928	$	36,391	$	355,521
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