Segment Information

6 Months Ended

Jun. 30, 2023

Segment Information [Abstract]

Segment Information

7. 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 June 30, 2023:
Revenue from external customers	$	181,752	$	156,532	$	36,029	$	-		$	374,313
Intersegment revenue		6,532		3,931		-		-			10,463
Total revenue	$	188,284	$	160,463	$	36,029	$	-		$	384,776
Operating income (loss)	$	24,456	$	29,217	$	7,575	$	(9,657	)	$	51,591
Interest expense		-		-		-		6,352			6,352
Earnings (loss) before income taxes	$	24,456	$	29,217	$	7,575	$	(16,009	)	$	45,239
Three months ended June 30, 2022:
Revenue from external customers	$	182,415	$	152,070	$	37,221	$	-		$	371,706
Intersegment revenue		6,922		4,198		107		-			11,227
Total revenue	$	189,337	$	156,268	$	37,328	$	-		$	382,933
Operating income (loss)	$	30,013	$	31,178	$	7,721	$	(13,668	)	$	55,244
Interest expense		-		-		-		3,083			3,083
Earnings (loss) before income taxes	$	30,013	$	31,178	$	7,721	$	(16,751	)	$	52,161

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Corporate & Other			Consolidated
Six months ended June 30, 2023:
Revenue from external customers	$	353,724	$	313,481	$	76,114	$	-		$	743,319
Intersegment revenue		13,412		8,143		-		-			21,555
Total revenue	$	367,136	$	321,624	$	76,114	$	-		$	764,874
Operating income (loss)	$	46,636	$	61,102	$	16,816	$	(22,125	)	$	102,429
Interest expense		-		-		-		12,354			12,354
Earnings (loss) before income taxes	$	46,636	$	61,102	$	16,816	$	(34,479	)	$	90,075
Six months ended June 30, 2022:
Revenue from external customers	$	357,617	$	295,998	$	73,612	$	-		$	727,227
Intersegment revenue		14,447		8,708		181		-			23,336
Total revenue	$	372,064	$	304,706	$	73,793	$	-		$	750,563
Operating income (loss)	$	57,592	$	61,835	$	15,925	$	(27,319	)	$	108,033
Interest expense		-		-		-		6,076			6,076
Earnings (loss) before income taxes	$	57,592	$	61,835	$	15,925	$	(33,395	)	$	101,957

Product Lines

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Three months ended June 30, 2023:
Flavors, Extracts & Flavor Ingredients	$	133,688		$	-		$	-		$	133,688
Natural Ingredients		54,596			-			-			54,596
Food & Pharmaceutical Colors		-			120,165			-			120,165
Personal Care		-			40,298			-			40,298
Asia Pacific		-			-			36,029			36,029
Intersegment Revenue		(6,532	)		(3,931	)		-			(10,463	)
Total revenue from external customers	$	181,752		$	156,532		$	36,029		$	374,313
Three months ended June 30, 2022:
Flavors, Extracts & Flavor Ingredients	$	130,578		$	-		$	-		$	130,578
Natural Ingredients		58,759			-			-			58,759
Food & Pharmaceutical Colors		-			113,784			-			113,784
Personal Care		-			42,116			-			42,116
Inks		-			368			-			368
Asia Pacific		-			-			37,328			37,328
Intersegment Revenue		(6,922	)		(4,198	)		(107	)		(11,227	)
Total revenue from external customers	$	182,415		$	152,070		$	37,221		$	371,706

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Six months ended June 30, 2023:
Flavors, Extracts & Flavor Ingredients	$	258,513		$	-		$	-		$	258,513
Natural Ingredients		108,623			-			-			108,623
Food & Pharmaceutical Colors		-			238,912			-			238,912
Personal Care		-			82,712			-			82,712
Asia Pacific		-			-			76,114			76,114
Intersegment Revenue		(13,412	)		(8,143	)		-			(21,555	)
Total revenue from external customers	$	353,724		$	313,481		$	76,114		$	743,319
Six months ended June 30, 2022:
Flavors, Extracts & Flavor Ingredients	$	257,096		$	-		$	-		$	257,096
Natural Ingredients		114,968			-			-			114,968
Food & Pharmaceutical Colors		-			216,893			-			216,893
Personal Care		-			86,962			-			86,962
Inks		-			851			-			851
Asia Pacific		-			-			73,793			73,793
Intersegment Revenue		(14,447	)		(8,708	)		(181	)		(23,336	)
Total revenue from external customers	$	357,617		$	295,998		$	73,612		$	727,227

Geographic Markets

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Three months ended June 30, 2023:
North America	$	137,135	$	77,554	$	62	$	214,751
Europe		31,867		44,397		24		76,288
Asia Pacific		6,290		16,308		35,394		57,992
Other		6,460		18,273		549		25,282
Total revenue from external customers	$	181,752	$	156,532	$	36,029	$	374,313
Three months ended June 30, 2022:
North America	$	138,885	$	79,360	$	2	$	218,247
Europe		31,165		39,615		50		70,830
Asia Pacific		6,800		16,413		36,807		60,020
Other		5,565		16,682		362		22,609
Total revenue from external customers	$	182,415	$	152,070	$	37,221	$	371,706

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Six months ended June 30, 2023:
North America	$	269,103	$	155,931	$	124	$	425,158
Europe		60,794		87,649		127		148,570
Asia Pacific		11,491		34,457		74,589		120,537
Other		12,336		35,444		1,274		49,054
Total revenue from external customers	$	353,724	$	313,481	$	76,114	$	743,319
Six months ended June 30, 2022:
North America	$	265,587	$	149,288	$	60	$	414,935
Europe		63,770		81,593		131		145,494
Asia Pacific		16,537		32,429		70,789		119,755
Other		11,723		32,688		2,632		47,043
Total revenue from external customers	$	357,617	$	295,998	$	73,612	$	727,227