Segment Information

9 Months Ended

Sep. 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 September 30, 2023:
Revenue from external customers	$	185,029	$	142,026	$	36,774	$	-		$	363,829
Intersegment revenue		5,968		2,913		-		-			8,881
Total revenue	$	190,997	$	144,939	$	36,774	$	-		$	372,710
Operating income (loss)	$	23,078	$	22,925	$	8,095	$	(9,567	)	$	44,531
Interest expense		-		-		-		6,294			6,294
Earnings (loss) before income taxes	$	23,078	$	22,925	$	8,095	$	(15,861	)	$	38,237
Three months ended September 30, 2022:
Revenue from external customers	$	181,397	$	144,570	$	35,109	$	-		$	361,076
Intersegment revenue		5,649		6,899		112		-			12,660
Total revenue	$	187,046	$	151,469	$	35,221	$	-		$	373,736
Operating income (loss)	$	26,337	$	28,200	$	6,952	$	(13,996	)	$	47,493
Interest expense		-		-		-		3,672			3,672
Earnings (loss) before income taxes	$	26,337	$	28,200	$	6,952	$	(17,668	)	$	43,821

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Corporate & Other			Consolidated
Nine months ended September 30, 2023:
Revenue from external customers	$	538,753	$	455,507	$	112,888	$	-		$	1,107,148
Intersegment revenue		19,380		11,056		-		-			30,436
Total revenue	$	558,133	$	466,563	$	112,888	$	-		$	1,137,584
Operating income (loss)	$	69,714	$	84,027	$	24,911	$	(31,692	)	$	146,960
Interest expense		-		-		-		18,648			18,648
Earnings (loss) before income taxes	$	69,714	$	84,027	$	24,911	$	(50,340	)	$	128,312
Nine months ended September 30, 2022:
Revenue from external customers	$	539,014	$	440,568	$	108,721	$	-		$	1,088,303
Intersegment revenue		20,096		15,607		293		-			35,996
Total revenue	$	559,110	$	456,175	$	109,014	$	-		$	1,124,299
Operating income (loss)	$	83,929	$	90,035	$	22,877	$	(41,315	)	$	155,526
Interest expense		-		-		-		9,748			9,748
Earnings (loss) before income taxes	$	83,929	$	90,035	$	22,877	$	(51,063	)	$	145,778

Product Lines

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Three months ended September 30, 2023:
Flavors, Extracts & Flavor Ingredients	$	124,697		$	-		$	-		$	124,697
Natural Ingredients		66,300			-			-			66,300
Food & Pharmaceutical Colors		-			107,723			-			107,723
Personal Care		-			37,216			-			37,216
Asia Pacific		-			-			36,774			36,774
Intersegment Revenue		(5,968	)		(2,913	)		-			(8,881	)
Total revenue from external customers	$	185,029		$	142,026		$	36,774		$	363,829
Three months ended September 30, 2022:
Flavors, Extracts & Flavor Ingredients	$	123,945		$	-		$	-		$	123,945
Natural Ingredients		63,101			-			-			63,101
Food & Pharmaceutical Colors		-			111,194			-			111,194
Personal Care		-			39,689			-			39,689
Inks		-			586			-			586
Asia Pacific		-			-			35,221			35,221
Intersegment Revenue		(5,649	)		(6,899	)		(112	)		(12,660	)
Total revenue from external customers	$	181,397		$	144,570		$	35,109		$	361,076

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Nine months ended September 30, 2023:
Flavors, Extracts & Flavor Ingredients	$	383,210		$	-		$	-		$	383,210
Natural Ingredients		174,923			-			-			174,923
Food & Pharmaceutical Colors		-			346,635			-			346,635
Personal Care		-			119,928			-			119,928
Asia Pacific		-			-			112,888			112,888
Intersegment Revenue		(19,380	)		(11,056	)		-			(30,436	)
Total revenue from external customers	$	538,753		$	455,507		$	112,888		$	1,107,148
Nine months ended September 30, 2022:
Flavors, Extracts & Flavor Ingredients	$	381,041		$	-		$	-		$	381,041
Natural Ingredients		178,069			-			-			178,069
Food & Pharmaceutical Colors		-			328,087			-			328,087
Personal Care		-			126,651			-			126,651
Inks		-			1,437			-			1,437
Asia Pacific		-			-			109,014			109,014
Intersegment Revenue		(20,096	)		(15,607	)		(293	)		(35,996	)
Total revenue from external customers	$	539,014		$	440,568		$	108,721		$	1,088,303

Geographic Markets

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Three months ended September 30, 2023:
North America	$	147,992	$	75,417	$	-	$	223,409
Europe		25,298		36,816		57		62,171
Asia Pacific		4,881		13,344		35,791		54,016
Other		6,858		16,449		926		24,233
Total revenue from external customers	$	185,029	$	142,026	$	36,774	$	363,829
Three months ended September 30, 2022:
North America	$	142,097	$	74,220	$	27	$	216,344
Europe		26,795		34,591		44		61,430
Asia Pacific		7,091		16,770		34,433		58,294
Other		5,414		18,989		605		25,008
Total revenue from external customers	$	181,397	$	144,570	$	35,109	$	361,076

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Nine months ended September 30, 2023:
North America	$	417,095	$	231,348	$	124	$	648,567
Europe		86,092		124,465		184		210,741
Asia Pacific		16,372		47,801		110,380		174,553
Other		19,194		51,893		2,200		73,287
Total revenue from external customers	$	538,753	$	455,507	$	112,888	$	1,107,148
Nine months ended September 30, 2022:
North America	$	407,684	$	223,508	$	87	$	631,279
Europe		90,565		116,184		175		206,924
Asia Pacific		23,628		49,199		105,222		178,049
Other		17,137		51,677		3,237		72,051
Total revenue from external customers	$	539,014	$	440,568	$	108,721	$	1,088,303