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Segment Information
 9 Months Ended
Sep. 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 represent 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)
2016
 
2015
 
2016
 
2015
Net sales:
 
 
 
 
 
 
 
Flavors
$
366,857

 
$
359,103

 
$
1,118,869

 
$
1,108,689

Fragrances
410,144

 
405,989

 
1,234,921

 
1,198,851

Consolidated
$
777,001

 
$
765,092

 
$
2,353,790

 
$
2,307,540

Segment profit:
 
 
 
 
 
 
 
Flavors
$
77,512

 
$
79,803

 
$
259,662

 
$
256,546

Fragrances
85,010

 
90,893

 
261,843

 
252,416

Global expenses
(11,405
)
 
(6,874
)
 
(37,544
)
 
(27,067
)
Restructuring and other charges, net (1)
(190
)
 
—

 
(473
)
 
170

Acquisition and related costs (2)
(786
)
 
(6,830
)
 
(2,035
)
 
(13,896
)
Operational improvement initiative costs (3)
(802
)
 
(279
)
 
(1,901
)
 
(841
)
Spanish capital tax settlement (4)
—

 
—

 
1,482

 
—

Legal charge (5)
(25,000
)
 
—

 
(25,000
)
 
—

Operating profit
124,339

 
156,713

 
456,034

 
467,328

Interest expense
(13,111
)
 
(11,855
)
 
(40,649
)
 
(34,357
)
Other income (expense)
2,162

 
(1,959
)
 
4,952

 
3,315

Income before taxes
$
113,390

 
$
142,899

 
$
420,337

 
$
436,286


 
(1)
Restructuring and other charges, net in 2016 relate to accelerated depreciation costs in Europe recorded in Cost of goods sold.
(2)
Acquisition and related costs are associated with the 2015 acquisitions of Ottens Flavors and Lucas Meyer as discussed in Note 3, including inventory step-up charges related to the inventory acquired for Lucas Meyer as well as transaction costs related to the acquisition of David Michael in 2016.
(3)
Operational improvement initiative costs relate to accelerated depreciation, dismantling 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.
(5)
The legal charge relates to the reserve recorded for the ZoomEssence case as discussed in Note 13.
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, 2016 and 2015 were $190 million and $182 million, respectively and for the nine months ended September 30, 2016 and 2015 were $555 million and $520 million, respectively. Net sales attributed to all foreign countries in total for the three months ended September 30, 2016 and 2015 were $587 million and $583 million, respectively and for the nine months ended September 30, 2016 and 2015 were $1,799 million and $1,788 million, respectively. No country other than the U.S. had net sales in any period presented greater than 10% of total consolidated net sales.