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Segment and Geographic Information
12 Months Ended
Dec. 31, 2023
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 and income, share-based compensation, restructuring and other charges, including operational improvement plan costs and income and portfolio optimization 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.

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 accounts receivables from the securitization program, 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 and income, share-based compensation, and restructuring and other charges, including operational improvement plan costs and income and portfolio optimization plan costs, 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 consumer and other products. The Color segment produces natural and synthetic color systems for foods, beverages, pharmaceuticals, and nutraceuticals; colors, ingredients, and systems for personal care; 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 and income, share-based compensation, restructuring and other charges, including operational improvement plan costs and income and portfolio optimization plan costs, and certain other costs are included in the “Corporate & Other” category.

Divestiture & other related costs and income and restructuring and other costs, including the operational improvement plan costs and income and portfolio optimization plan costs, for the years ended December 31, 2023, 2022, and 2021, are further described in Note 14, Divestitures, Note 15, Operational Improvement Plan, and Note 16, Portfolio Optimization 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
 
2023:
                             
Revenue from external customers
 
$
716,049
   
$
594,316
   
$
146,085
   
$
   
$
1,456,450
 
Intersegment revenue
   
25,023
     
13,643
     
5
     
     
38,671
 
Total revenue
   
741,072
     
607,959
     
146,090
     
     
1,495,121
 
 
                                       
Operating income (loss)
   
87,773
     
105,370
     
30,800
     
(68,920
)
   
155,023
 
Interest expense
   
     
     
     
25,172
     
25,172
 
Earnings (loss) before income taxes
   
87,773
     
105,370
     
30,800
     
(94,092
)
   
129,851
 
 
                                       
Assets
   
792,674
     
846,559
     
112,335
     
262,939
     
2,014,507
 
Capital expenditures
   
40,489
     
37,720
     
2,923
     
6,736
     
87,868
 
Depreciation and amortization
   
29,400
     
22,294
     
2,548
     
3,578
     
57,820
 
 
                                       
2022:
                                       
Revenue from external customers
 
$
710,592
   
$
583,379
   
$
143,068
   
$
   
$
1,437,039
 
Intersegment revenue
   
27,411
     
20,638
     
513
     
     
48,562
 
Total revenue
   
738,003
     
604,017
     
143,581
     
     
1,485,601
 
 
                                       
Operating income (loss)
   
105,424
     
114,619
     
29,492
     
(52,784
)
   
196,751
 
Interest expense
   
     
     
     
14,547
     
14,547
 
Earnings (loss) before income taxes
   
105,424
     
114,619
     
29,492
     
(67,331
)
   
182,204
 
 
                                       
Assets
   
738,181
     
849,425
     
115,132
     
278,876
     
1,981,614
 
Capital expenditures
   
40,805
     
30,300
     
2,164
     
6,053
     
79,322
 
Depreciation and amortization
   
26,660
     
20,174
     
2,489
     
3,144
     
52,467
 
 
                                       
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
 

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
 
2023:
                             
Revenue from external customers:
                             
North America
 
$
553,790
   
$
304,995
   
$
125
   
$
   
$
858,910
 
Europe
   
113,757
     
162,644
     
236
     
     
276,637
 
Asia Pacific
   
21,382
     
58,003
     
142,281
     
     
221,666
 
Other
   
27,120
     
68,674
     
3,443
     
     
99,237
 
Total revenue from external customers
 
$
716,049
   
$
594,316
   
$
146,085
   
$
   
$
1,456,450
 
Long-lived assets:
                                       
North America
 
$
297,615
   
$
277,730
   
$
   
$
114,995
   
$
690,340
 
Europe
   
82,938
     
244,587
     
     
24
     
327,549
 
Asia Pacific
   
8
     
4,199
     
30,473
     
     
34,680
 
Other
   
241
     
25,081
     
     
     
25,322
 
Total long-lived assets
 
$
380,802
   
$
551,597
   
$
30,473
   
$
115,019
   
$
1,077,891
 
 
                                       
2022:
                                       
Revenue from external customers:
                                       
North America
 
$
541,120
   
$
304,778
   
$
120
   
$
   
$
846,018
 
Europe
   
115,925
     
151,437
     
213
     
     
267,575
 
Asia Pacific
   
29,092
     
61,064
     
139,134
     
     
229,290
 
Other
   
24,455
     
66,100
     
3,601
     
     
94,156
 
Total revenue from external customers
 
$
710,592
   
$
583,379
   
$
143,068
   
$
   
$
1,437,039
 
Long-lived assets:
                                       
North America
 
$
286,497
   
$
271,075
   
$
   
$
107,784
   
$
665,356
 
Europe
   
86,248
     
236,719
     
     
24
     
322,991
 
Asia Pacific
   
237
     
3,796
     
29,915
     
     
33,948
 
Other
   
389
     
24,150
     
     
     
24,539
 
Total long-lived assets
 
$
373,371
   
$
535,740
   
$
29,915
   
$
107,808
   
$
1,046,834
 
 
                                       
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
 

Sales in the United States, based on the final country of destination of the Company’s products, were $707.1 million, $711.1 million, and $658.0 million, in 2023, 2022, and 2021, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $603.2 million, $586.8 million, and $550.3 million, at December 31, 2023, 2022, and 2021, respectively.

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

 
(In thousands)
 
Flavors &
Extracts
   
Color
   
Asia Pacific
   
Consolidated
 
2023:
                       
Flavors, Extracts & Flavor Ingredients
 
$
496,036
   
$
   
$
   
$
496,036
 
Natural Ingredients
   
245,036
     
     
     
245,036
 
Food & Pharmaceutical Colors
   
     
452,204
     
     
452,204
 
Personal Care
   
     
155,755
     
     
155,755
 
Asia Pacific
   
     
     
146,090
     
146,090
 
Intersegment Revenue
   
(25,023
)
   
(13,643
)
   
(5
)
   
(38,671
)
Total revenue from external customers
 
$
716,049
   
$
594,316
   
$
146,085
   
$
1,456,450
 
                                 
2022:
                               
Flavors, Extracts & Flavor Ingredients
 
$
498,055
   
$
   
$
   
$
498,055
 
Natural Ingredients
   
239,948
     
     
     
239,948
 
Food & Pharmaceutical Colors
   
     
437,065
     
     
437,065
 
Personal Care
   
     
165,335
     
     
165,335
 
Inks
   
     
1,617
     
     
1,617
 
Asia Pacific
   
     
     
143,581
     
143,581
 
Intersegment Revenue
   
(27,411
)
   
(20,638
)
   
(513
)
   
(48,562
)
Total revenue from external customers
 
$
710,592
   
$
583,379
   
$
143,068
   
$
1,437,039
 
                                 
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