Segment Information

9 Months Ended

Sep. 30, 2012

Segment Information

Note 8. 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 profit before Restructuring and other charges, net, Interest expense, Other (income) expense, net and Taxes on income.

The Global caption below represents 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)	2012			2011			2012			2011
Net sales:
Flavors	$	340,674		$	340,610		$	1,051,932		$	1,024,604
Fragrances		368,281			373,165			1,088,956			1,119,031
Consolidated	$	708,955		$	713,775		$	2,140,888		$	2,143,635
Segment profit:
Flavors	$	76,145		$	71,162		$	236,458		$	221,119
Fragrances		65,331			58,673			185,049			189,635
Global		(7,301	)		(1,880	)		(32,450	)		(27,444	)
Restructuring and other charges, net		—			645			(1,668	)		(3,368	)
Operating profit		134,175			128,600			387,389			379,942
Interest expense		(9,907	)		(10,280	)		(31,330	)		(33,969	)
Other expense, net		(2,424	)		(5,846	)		(1,333	)		(12,957	)
Income before taxes	$	121,844		$	112,474		$	354,726		$	333,016

The 2011 amounts have been conformed to the 2012 presentation.

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, 2012 and 2011 were $171 million and $169 million, respectively, and for the nine months ended September 30, 2012 and 2011 were $506 million and $498 million, respectively. Net sales attributed to all foreign countries in total for the three months ended September 30, 2012 and 2011 were $538 million and $545 million, respectively and for each of the nine months ended September 30, 2012 and 2011 were $1.6 billion. No non-U.S. country had net sales in any period presented greater than 7% of total consolidated net sales.