Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

NOTE 12.    SEGMENT INFORMATION

We are organized into two operating segments, Flavors and Fragrances; these segments align with the internal structure used to manage these businesses. Flavor compounds are sold to the food and beverage industries for use in consumer products such as prepared foods, beverages, dairy, food and Sweet products. Fragrances is comprised of three fragrance categories: functional fragrances, including fragrance compounds for personal care (e.g., soaps) and household products (e.g., detergents and cleaning agents); fine fragrance and beauty care, including perfumes, colognes and toiletries; and ingredients, consisting of synthetic and natural ingredients that can be combined with other materials to create unique functional and fine fragrance compounds. 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.

We evaluate the performance of these operating segments based on Adjusted operating profit before Restructuring and certain non-recurring adjustments, Interest expense, Other expense, net and Taxes on income. The Global expense caption represents corporate and headquarters-related expenses which include legal, finance, human resources and other administrative expenses that are not allocated to individual business units. Unallocated assets are principally cash and cash equivalents and other corporate and headquarters-related assets.

Our reportable segment information follows:

	Year Ended December 31,
(DOLLARS IN THOUSANDS)	2011		2010		2009
Net sales
Flavors	$	1,347,340	$	1,203,274	$	1,081,488
Fragrances		1,440,678		1,419,588		1,244,670
Consolidated	$	2,788,018	$	2,622,862	$	2,326,158

	Year Ended December 31, 2011
(DOLLARS IN THOUSANDS)	Adjusted Operating Profit			Restructuring and Other Costs			Mane Patent Litigation Settlement			Operating Profit			Interest Expense			Other Expense, net			Income Before Taxes
Income before taxes
Flavors	$	284,246		$	(1,475	)	$	(33,495	)	$	249,276
Fragrances		226,560			(11,224	)		—			215,336
Global expenses		(36,410	)		(473	)		—			(36,883	)
Consolidated										$	427,729		$	(44,639	)	$	(9,544	)	$	373,546
	Year Ended December 31, 2010
(DOLLARS IN THOUSANDS)	Adjusted Operating Profit			Restructuring and Other Costs						Operating Profit			Interest Expense			Other Expense, net			Income Before Taxes
Income before taxes
Flavors	$	242,528		$	—		$	—		$	242,528
Fragrances		244,966			(10,077	)		—			234,889
Global expenses		(61,056	)		—			—			(61,056	)
Consolidated										$	416,361		$	(48,709	)	$	(8,059	)	$	359,593
	Year Ended December 31, 2009
(DOLLARS IN THOUSANDS)	Adjusted Operating Profit			Restructuring and Other Costs			Employee Separation Costs			Operating Profit			Interest Expense			Other Expense, net			Income Before Taxes
Income before taxes
Flavors	$	208,966		$	(637	)	$	—		$	208,329
Fragrances		188,561			(18,046	)		—			170,515
Global expenses		(32,618	)		382			(6,320	)		(38,556	)
Consolidated										$	340,288		$	(61,818	)	$	(1,921	)	$	276,549

The 2010 and 2009 tables above have been conformed to the 2011 presentation.

	December 31,
(DOLLARS IN THOUSANDS)	2011		2010
Segment assets
Flavors	$	1,327,279	$	1,273,126
Fragrances		1,512,511		1,449,001
Global assets		125,791		150,328
Consolidated	$	2,965,581	$	2,872,455

We had one customer that accounted for more than 10% of our consolidated net sales in each year for all periods presented and related net sales were $297 million, $273 million and $251 million in 2011, 2010 and 2009, respectively. The majority of these sales were in the Fragrances operating segment.

Total long-lived assets consist of net property, plant and equipment and amounted to $608 million and $538 million at December 31, 2011 and 2010, respectively. Of this total $163 million and $158 million was located in the United States at December 31, 2011 and 2010, respectively, and $89 million and $82 million were located in the Netherlands at December 31, 2011 and 2010, respectively.

	Capital Expenditures						Depreciation and Amortization
(DOLLARS IN THOUSANDS)	2011		2010		2009		2011		2010		2009
Flavors	$	69,675	$	46,776	$	23,463	$	31,140	$	31,634	$	29,874
Fragrances		50,454		53,969		40,122		41,941		45,713		46,410
Unallocated assets		7,328		5,556		3,234		2,246		1,895		2,241
Consolidated	$	127,457	$	106,301	$	66,819	$	75,327	$	79,242	$	78,525

	Net Sales by Geographic Area
(DOLLARS IN THOUSANDS)	2011		2010		2009
Europe, Africa and Middle East	$	956,977	$	896,647	$	807,709
Greater Asia		744,810		676,838		574,765
North America		678,763		651,057		600,116
Latin America		407,468		398,320		343,568
Consolidated	$	2,788,018	$	2,622,862	$	2,326,158

Net sales are attributed to individual regions based upon the destination of product delivery. Net sales related to the U.S. for the years ended December 31, 2011, 2010 and 2009 were $644 million, $618 million and $568 million, respectively. Net sales attributed to all foreign countries in total for the years ended December 31, 2011, 2010 and 2009 were $2,144 million, $2,005 million and $1,758 million, respectively. No non-U.S. country had net sales in any period presented greater than 7% of total consolidated net sales.