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Segment Information
 6 Months Ended
Jun. 30, 2016
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 June 30,
 
Six Months Ended June 30,
(DOLLARS IN THOUSANDS)
2016
 
2015
 
2016
 
2015
Net sales:
 
 
 
 
 
 
 
Flavors
$
379,504

 
$
372,478

 
$
752,012

 
$
749,586

Fragrances
413,974

 
395,063

 
824,777

 
792,862

Consolidated
$
793,478

 
$
767,541

 
$
1,576,789

 
$
1,542,448

Segment profit:
 
 
 
 
 
 
 
Flavors
$
90,337

 
$
84,015

 
$
182,151

 
$
176,743

Fragrances
87,596

 
79,924

 
176,833

 
161,522

Global expenses
(12,232
)
 
(8,629
)
 
(26,141
)
 
(20,194
)
Restructuring and other charges, net (1)
(182
)
 
358

 
(283
)
 
170

Acquisition and related costs (2)
(213
)
 
(6,566
)
 
(1,249
)
 
(7,066
)
Operational improvement initiative costs (3)
(831
)
 
(281
)
 
(1,099
)
 
(562
)
Spanish capital tax settlement (4)
—

 
—

 
1,482

 
—

Operating profit
164,475

 
148,821

 
331,694

 
310,613

Interest expense
(15,060
)
 
(11,407
)
 
(27,539
)
 
(22,502
)
Other income (expense)
2,635

 
(436
)
 
2,792

 
5,275

Income before taxes
$
152,050

 
$
136,978

 
$
306,947

 
$
293,386


 
(1)
Restructuring and other charges, net relate to accelerated depreciation costs in Europe recorded in Cost of goods sold.
(2)
Acquisition and related costs are associated with the 2015 acquisition of Lucas Meyer as discussed in Note 3, including inventory step-up charges related to the inventory acquired.
(3)
Operational improvement initiative costs relate to accelerated depreciation and severance costs in Asia in the 2016 period and accelerated depreciation in the 2015 period.
(4)
The Spanish capital tax settlement represents interest received from the Spanish government related to the reversal of the unfavorable ruling the Spanish capital tax case from 2002, which was reversed during the year ended December 31, 2015.
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 June 30, 2016 and 2015 were $185 million and $174 million, respectively and for the six months ended June 30, 2016 and 2015 were $365 million and $338 million, respectively. Net sales attributed to all foreign countries in total for the three months ended June 30, 2016 and 2015 were $608 million and $594 million, respectively and for the six months ended June 30, 2016 and 2015 were $1,212 million and $1,204 million, respectively. No country other than the U.S. had net sales in any period presented greater than 10% of total consolidated net sales.