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Segment Information (Tables)
 9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Reportable Segment Information
Reportable segment information is as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
(DOLLARS IN THOUSANDS)
2018
 
2017
 
2018
 
2017
Net sales:
 
 
 
 
 
 
 
Flavors
$
436,214

 
$
409,800

 
$
1,335,773

 
$
1,230,286

Fragrances
471,334

 
463,140

 
1,422,719

 
1,313,808

Consolidated
$
907,548

 
$
872,940

 
$
2,758,492

 
$
2,544,094

Segment profit:
 
 
 
 
 
 
 
Flavors
$
96,497

 
$
87,375

 
$
317,666

 
$
278,768

Fragrances
87,488

 
88,959

 
261,545

 
247,824

Global expenses
(19,578
)
 
(17,693
)
 
(63,975
)
 
(47,472
)
Operational Improvement Initiatives (a)
(344
)
 
(407
)
 
(1,773
)
 
(1,473
)
Acquisition Related Costs (b)
1

 
(5,436
)
 
519

 
(20,502
)
Integration Related Costs (c)
(958
)
 
(580
)
 
(1,951
)
 
(2,501
)
Legal Charges/Credits, net (d)
—

 
—

 
—

 
(1,000
)
Tax Assessment (e)
—

 
—

 
—

 
(5,331
)
Restructuring and Other Charges, net (f)
(927
)
 
(3,249
)
 
(1,837
)
 
(14,183
)
Gains on Sale of Assets
1,630

 
31

 
435

 
120

FDA Mandated Product Recall (g)
9,800

 
—

 
4,800

 
(3,500
)
Frutarom Acquisition Related Costs (h)
(14,341
)
 
—

 
(26,796
)
 
—

Operating profit
159,268

 
149,000

 
488,633

 
430,750

Interest expense
(23,914
)
 
(19,221
)
 
(93,755
)
 
(49,584
)
Loss on extinguishment of debt
(38,810
)
 
—

 
(38,810
)
 
—

Other income (expense)
4,158

 
11,547

 
25,389

 
40,687

Income before taxes
$
100,702

 
$
141,326

 
$
381,457

 
$
421,853


(a)
For 2018, represents accelerated depreciation related to a plant relocation in India and Taiwan asset write off. For 2017, represents accelerated depreciation and idle labor costs in Hangzhou, China.
(b)
For 2018, represents adjustments to the contingent consideration payable for PowderPure, and transaction costs related to Fragrance Resources and PowderPure within Selling and administrative expenses. For 2017, represents the amortization of inventory "step-up" related to the acquisitions of David Michael, Fragrance Resources and PowderPure, included in cost of goods sold, and transaction costs related to the acquisitions of David Michael, Fragrance Resources and PowderPure, included in Selling and administrative expenses.
(c)
For 2018, represents costs related to the integration of David Michael and Frutarom. For 2017, represents costs related to the integration of David Michael and Fragrance Resources acquisitions.
(d)
Represents additional charge related to litigation settlement.
(e)
Represents the reserve for payment of a tax assessment related to commercial rent for prior periods.
(f)
For 2018, represents severance costs related to the 2017 Productivity Program. For 2017, represents severance costs related to the 2017 Productivity Program which were partially offset by the reversal of 2015 severance charges that were no longer needed.
(g)
For 2018, represents recoveries from the supplier for the third quarter, partially offset by final payments to the customer made for the effected product in the first quarter. For 2017, represents management's best estimate of losses related to the previously disclosed FDA mandated recall.
(h)
Represents transaction-related administrative costs and expenses related to the acquisition of Frutarom.
Net Sales by Destination of Product Delivery
Net sales are attributed to individual regions based upon the destination of product delivery are as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(DOLLARS IN THOUSANDS)
2018
 
2017
 
2018
 
2017
Net sales related to the U.S.
$
238,342

 
$
223,750

 
$
703,272

 
$
654,235

Net sales attributed to all foreign countries
669,206

 
649,190

 
2,055,220

 
1,889,859