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Segment Information (Tables)
 9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Reportable Segment Information
Reportable segment information is as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(DOLLARS IN THOUSANDS)
2017
 
2016
 
2017
 
2016
Net sales:
 
 
 
 
 
 
 
Flavors
$
409,800

 
$
366,857

 
$
1,230,286

 
$
1,118,869

Fragrances
463,140

 
410,144

 
1,313,808

 
1,234,921

Consolidated
$
872,940

 
$
777,001

 
$
2,544,094

 
$
2,353,790

Segment profit:
 
 
 
 
 
 
 
Flavors
$
91,378

 
$
77,512

 
$
289,723

 
$
259,662

Fragrances
93,528

 
85,010

 
260,085

 
261,843

Global expenses
(17,598
)
 
(11,405
)
 
(47,193
)
 
(37,544
)
Restructuring and other charges, net (1)
(3,249
)
 
(190
)
 
(14,183
)
 
(473
)
Acquisition-related costs (2)
(5,436
)
 
(786
)
 
(20,502
)
 
(2,035
)
Operational improvement initiative costs (3)
(407
)
 
(802
)
 
(1,473
)
 
(1,901
)
Legal (charges) credits (4)
—

 
(25,000
)
 
(1,000
)
 
(23,518
)
Gain on sales of assets (5)
31

 
87

 
120

 
2,998

Tax assessment (6)
—

 
—

 
(5,331
)
 
—

Integration-related costs (7)
(580
)
 
—

 
(2,501
)
 
—

FDA mandated product recall (8)
—

 
—

 
(3,500
)
 
—

Operating profit
157,667

 
124,426

 
454,245

 
459,032

Interest expense
(19,221
)
 
(13,111
)
 
(49,584
)
 
(40,649
)
Other income (expense)
2,880

 
2,075

 
17,192

 
1,954

Income before taxes
$
141,326

 
$
113,390

 
$
421,853

 
$
420,337


 
(1)
In 2017, charges represent severance costs related to the 2017 Productivity Program. In 2016, charges relate to accelerated depreciation which were recorded in Cost of goods sold.
(2)
Represents transaction costs related to the acquisitions of Fragrance Resources and PowderPure as well as the amortization of inventory "step-up" related to David Michael, Fragrance Resources and PowderPure in the 2017 period, and expense related to the amortization of inventory "step-up" and additional transaction costs related to the acquisition of Lucas Meyer in the 2016 period.
(3)
Represents accelerated depreciation in Hangzhou, China in both the 2017 and 2016 periods.
(4)
Represents additional charges related to litigation settlement in the 2017 period and reserve for litigation settlement in the 2016 period.
(5)
Represents gains on sale of assets in Latin America in the 2017 period and in Europe in the 2016 period.
(6)
Represents the reserve for a tax assessment related to commercial rent for prior periods.
(7)
Represents costs related to the integration of the David Michael and Fragrance Resources acquisitions.
(8)
Represents an estimate of the Company's incremental direct costs and customer reimbursement obligations, in excess of the Company's sales value of the recalled products, arising from an FDA mandated recall of consumer products as a result of raw material received and identified by the Company as containing contamination. (As discussed in Note 13, the sales value of the recalled products was reserved in the first quarter of 2017). While the Company does not believe that any of the affected raw material was included in its finished products delivered to the customer, as the delivered product included raw material of the same vendor lot that tested positive, the FDA, after being notified by the Company, initiated a recall of all consumer products including raw material from the affected vendor lot due to the potential for product contamination.