Segment Information

3 Months Ended

Mar. 31, 2024

Segment Information [Abstract]

Segment Information

6. Segment Information

The Company evaluates performance based on operating income before share-based compensation; restructuring and other charges, including 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.

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, share-based compensation, and restructuring and other charges, including Portfolio Optimization Plan costs, 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, 2024:
Revenue from external customers	$	188,022	$	156,364	$	40,284	$	-		$	384,670
Intersegment revenue		5,070		3,661		22		-			8,753
Total revenue	$	193,092	$	160,025	$	40,306	$	-		$	393,423
Operating income (loss)	$	23,678	$	31,679	$	8,776	$	(14,727	)	$	49,406
Interest expense		-		-		-		7,045			7,045
Earnings (loss) before income taxes	$	23,678	$	31,679	$	8,776	$	(21,772	)	$	42,361
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

Product Lines

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Three months ended March 31, 2024
Flavors, Extracts & Flavor Ingredients	$	124,805		$	-		$	-		$	124,805
Natural Ingredients		68,287			-			-			68,287
Food & Pharmaceutical Colors		-			117,058			-			117,058
Personal Care		-			42,967			-			42,967
Asia Pacific		-			-			40,306			40,306
Intersegment Revenue		(5,070	)		(3,661	)		(22	)		(8,753	)
Total revenue from external customers	$	188,022		$	156,364		$	40,284		$	384,670
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

Geographic Markets

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Three months ended March 31, 2024:
North America	$	146,952	$	75,120	$	-	$	222,072
Europe		32,157		46,162		46		78,365
Asia Pacific		3,706		17,419		38,685		59,810
Other		5,207		17,663		1,553		24,423
Total revenue from external customers	$	188,022	$	156,364	$	40,284	$	384,670
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