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Segment Information
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information:
The Company is organized into two operating segments: Flavors and Fragrances. These segments align with the internal structure of the Company used to manage these businesses. Performance of these operating segments is evaluated based on segment profit which is defined as operating profit before Restructuring, global expenses (as discussed below) and certain non-recurring items, Interest expense, Other income, net and Taxes on income.
The Global expenses caption below represents corporate and headquarters-related expenses which include legal, finance, human resources, certain incentive compensation expenses and other R&D and administrative expenses that are not allocated to individual operating segments.
Reportable segment information is as follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(DOLLARS IN THOUSANDS)
2014
 
2013
 
2014
 
2013
Net sales:
 
 
 
 
 
 
 
Flavors
$
358,708

 
$
349,385

 
$
1,100,726

 
$
1,079,786

Fragrances
415,105

 
392,871

 
1,231,725

 
1,147,941

Consolidated
$
773,813

 
$
742,256

 
$
2,332,451

 
$
2,227,727

Segment profit:
 
 
 
 
 
 
 
Flavors
$
79,747

 
$
81,101

 
$
258,614

 
$
254,055

Fragrances
86,615

 
81,309

 
259,253

 
221,577

Global expenses
(12,882
)
 
(18,313
)
 
(49,182
)
 
(47,236
)
Restructuring and other charges, net
(608
)
 
—

 
(912
)
 
(2,105
)
Operational improvement initiative costs (1)
(282
)
 
(2,568
)
 
(6,014
)
 
(4,761
)
Operating profit
152,590

 
141,529

 
461,759

 
421,530

Interest expense
(10,968
)
 
(11,625
)
 
(34,048
)
 
(35,637
)
Other income, net
563

 
4,080

 
3,761

 
16,359

Income before taxes
$
142,185

 
$
133,984

 
$
431,472

 
$
402,252


 
(1)
Operational improvement initiative costs relate to the closing of a smaller facility in Europe and certain manufacturing activities in Asia, while transferring production to larger facilities in each respective region.
Net sales are attributed to individual regions based upon the destination of product delivery. Net sales related to the U.S. for the three months ended September 30, 2014 and 2013 were $162 million and $171 million, respectively, and for the nine months ended September 30, 2014 and 2013 were $495 million and $504 million, respectively. Net sales attributed to all foreign countries in total for the three months ended September 30, 2014 and 2013 were $612 million and $571 million, respectively, and for the nine months ended September 30, 2014 and 2013 were $1,837 million and $1,724 million, respectively. No non-U.S. country had net sales in any period presented greater than 8.0% of total consolidated net sales.