Segment Information

3 Months Ended

Mar. 31, 2015

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 and other charges, net, Global expenses (as discussed below) and certain non-recurring items, Interest expense, Other income (expense), 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 March 31,
(DOLLARS IN THOUSANDS)	2015			2014
Net sales:
Flavors	$	377,108		$	366,505
Fragrances	397,799			403,719
Consolidated	$	774,907		$	770,224
Segment profit:
Flavors	$	92,727		$	88,063
Fragrances	81,598			87,166
Global expenses	(11,564		)	(16,435		)
Restructuring and other charges, net	(187		)	(122		)
Acquisition and related costs (1)	(500		)	—
Operational improvement initiative costs (2)	(281		)	(2,619		)
Operating profit	161,793			156,053
Interest expense	(11,095		)	(11,677		)
Other income (expense), net	5,710			(1,443		)
Income before taxes	$	156,408		$	142,933

(1) Acquisition and related costs are associated with the acquisition of Henry H. Ottens Manufacturing Co., Inc., as discussed in Note 13.

(2) 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 March 31, 2015 and 2014 were $164 million and $159 million, respectively. Net sales attributed to all foreign countries in total for the three months ended March 31, 2015 and 2014 were $611 million in both years. No country other than the U.S. had net sales in any period presented greater than 7.1% of total consolidated net sales.