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Segment Information
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
During the first quarter of 2020, the Company reorganized its reporting structure and combined substantially all of the components of the former Frutarom reportable operating segment into the former Taste reportable operating segment. Prior year amounts have been recast to conform to the current year reporting structure. As a result of the reorganization, the Company is now organized into two reportable operating segments, Taste and Scent; these segments align with the internal structure used to manage these businesses.
Taste is comprised of a diversified portfolio across flavor compounds, savory solutions, inclusions and nutrition and specialty ingredients. Flavor compounds provide unique flavors that are ultimately used by IFF's customers in savory products,
beverages, sweets, and dairy products. Savory solutions include marinades or powder blends of flavors, natural colors, seasonings, functional ingredients and natural anti-oxidants that are primarily designed for the meat and fish industry. Inclusions provide taste and texture by, among other things, combining flavorings with fruit, vegetables, and other natural ingredients for a wide range of food products, such as health snacks, baked goods, cereals, pastries, ice cream and other dairy products. Nutrition and specialty ingredients primarily consist of natural health ingredients, natural food protection, natural colors and flavor ingredients. The flavor ingredients market includes natural flavor extracts, specialty botanical extracts, distillates, essential oils, citrus products, aroma chemicals, and natural gums and resins. Such ingredients are used for food, beverage, and flavors and are often sold directly to food and beverage manufacturers who use them in producing consumer products.
Scent is comprised of (1) Fragrance Compounds, which are ultimately used by our customers in two broad categories: Fine Fragrances, including perfumes and colognes, and Consumer Fragrances, including fragrance compounds for personal care (e.g., soaps), household products (e.g., detergents and cleaning agents) and beauty care, including toiletries; (2) Fragrance Ingredients, consisting of synthetic and natural ingredients that can be combined with other materials to create unique fine fragrance and consumer compounds; and (3) Cosmetic Active Ingredients, consisting of active and functional ingredients, botanicals and delivery systems to support our customers’ cosmetic and personal care product lines. Major fragrance customers include the cosmetics industry, including perfume and toiletries manufacturers, and the household products industry, including manufacturers of soaps, detergents, fabric care, household cleaners and air fresheners.
The Company's Chief Operating Decision Maker evaluates the performance of these reportable operating segments based on segment profit which is defined as operating profit before restructuring, global expenses (as discussed below) and certain non-recurring items, Interest expense, Other income (expense), net and Taxes on income.
The Global expenses caption represents corporate and headquarter-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 reportable operating segments.
Reportable segment information was as follows:
 
Three Months Ended
 
March 31,
(DOLLARS IN THOUSANDS)
2020
 
2019
Net sales:
 
 
 
Taste
$
830,322

 
$
804,802

Scent
516,995

 
492,600

Consolidated
$
1,347,317

 
$
1,297,402

Segment profit:
 
 
 
Taste
$
137,347

 
$
131,402

Scent
105,395

 
89,953

Global expenses
(20,393
)
 
(16,667
)
Operational Improvement Initiatives (a)
—

 
(406
)
Frutarom Integration Related Costs (b)
(3,650
)
 
(14,897
)
Restructuring and Other Charges, net (c)
(4,918
)
 
(16,174
)
(Losses) gains on sale of assets
(754
)
 
188

Frutarom Acquisition Related Costs (d)
(813
)
 
(9,529
)
Compliance Review & Legal Defense Costs (e)
(649
)
 
—

N&B Transaction Related Costs (f)
(5,199
)
 
—

N&B Integration Related Costs (g)
(10,144
)
 
—

Operating profit
196,222

 
163,870

Interest expense
(32,140
)
 
(36,572
)
Other (loss) income, net
(10,574
)
 
7,278

Income before taxes
$
153,508

 
$
134,576


(a)
Represents accelerated depreciation related to a plant relocation in India.

(b)
Represents costs related to the integration of the Frutarom acquisition. For 2020, costs primarily related to advisory services, retention bonuses and performance stock awards. For 2019, costs principally related to advisory services.
(c)
For 2020, represents costs primarily related to the Frutarom Integration Initiative. For 2019, represents costs primarily related to the Frutarom Integration Initiative and the 2019 Severance Charges program.
(d)
Represents transaction-related costs and expenses related to the acquisition of Frutarom. For 2020, amount primarily includes earn-out payments, net of adjustments, amortization for inventory "step-up" costs and transaction costs principally related to the 2019 Acquisition Activity. For 2019, amount primarily includes amortization for inventory "step-up" costs and transaction costs.
(e)
Costs related to reviewing the nature of inappropriate payments and review of compliance in certain other countries. In addition, includes legal costs for related shareholder lawsuits.
(f)
Represents transaction costs and expenses related to the pending transaction with Nutrition & Biosciences Inc.
(g)
Represents costs related to the integration of the pending transaction with Nutrition & Biosciences Inc.

Net sales, which are attributed to individual regions based upon the destination of product delivery, were as follows:
 
Three Months Ended March 31,
(DOLLARS IN THOUSANDS)
2020
 
2019
Europe, Africa and Middle East
$
543,130

 
$
529,606

Greater Asia
309,508

 
287,962

North America
303,387

 
301,059

Latin America
191,292

 
178,775

Consolidated
$
1,347,317

 
$
1,297,402

 
Three Months Ended March 31,
(DOLLARS IN THOUSANDS)
2020
 
2019
Net sales related to the U.S.
$
270,686

 
$
272,803

Net sales attributed to all foreign countries
1,076,631

 
1,024,599


No non-U.S. country had net sales in any period presented greater than 6% of total consolidated net sales.