Segment Information

3 Months Ended

Mar. 31, 2023

Segment Information [Abstract]

Segment Information

6. Segment Information

The Company evaluates performance based on operating income before share-based compensation, 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, 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 personal care, 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, flavor, and essential oils products in the Asia Pacific countries. The Company’s corporate expenses and share-based compensation are included in the “Corporate & Other” category.

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, 2023:
Revenue from external customers	$	171,972	$	156,949	$	40,085	$	-		$	369,006
Intersegment revenue		6,880		4,212		-		-			11,092
Total revenue	$	178,852	$	161,161	$	40,085	$	-		$	380,098
Operating income (loss)	$	22,180	$	31,885	$	9,241	$	(12,468	)	$	50,838
Interest expense		-		-		-		6,002			6,002
Earnings (loss) before income taxes	$	22,180	$	31,885	$	9,241	$	(18,470	)	$	44,836
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

Product Lines

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Three months ended March 31, 2023:
Flavors, Extracts & Flavor Ingredients	$	124,825		$	-		$	-		$	124,825
Natural Ingredients		54,027			-			-			54,027
Food & Pharmaceutical Colors		-			118,747			-			118,747
Personal Care		-			42,414			-			42,414
Asia Pacific		-			-			40,085			40,085
Intersegment Revenue		(6,880	)		(4,212	)		-			(11,092	)
Total revenue from external customers	$	171,972		$	156,949		$	40,085		$	369,006
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

Geographic Markets

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Three months ended March 31, 2023:
North America	$	131,968	$	78,377	$	62	$	210,407
Europe		28,927		43,252		103		72,282
Asia Pacific		5,201		18,149		39,195		62,545
Other		5,876		17,171		725		23,772
Total revenue from external customers	$	171,972	$	156,949	$	40,085	$	369,006
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