SEGMENT INFORMATION

The Company is organized into three reportable operating segments, Taste, Scent and Frutarom; these segments align with the internal structure used to manage these businesses.

Taste is comprised of Flavor Compounds which are sold to the food and beverage industries for use in consumer products such as prepared foods, beverages, dairy, food and sweet 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.

Frutarom creates and manufactures a naturals-focused suite of flavor compounds, functional foods and specialty fine ingredients, largely targeting small, local and regional customers. Frutarom’s products are focused on three principal areas: (1) Savory Solutions, (2) Natural Product Solutions, which includes natural health ingredients, natural color and natural food protection, and (3) Taste Solutions.

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)	2019			2018
Net sales:
Taste	$	444,602		$	449,019
Scent	488,352			481,909
Frutarom	364,448			—
Consolidated	$	1,297,402		$	930,928
Segment profit:
Taste	$	108,455		$	111,564
Scent	85,815			93,277
Frutarom	29,091			—
Global expenses	(18,673		)	(23,825		)
Operational Improvement Initiatives (a)	(406		)	(1,026		)
Acquisition Related Costs (b)	—			514
Integration Related Costs (c)	(14,897		)	—
Restructuring and Other Charges, net (d)	(16,174		)	(717		)
Gains on Sale of Assets	188			69
FDA Mandated Product Recall (e)	—			(5,000		)
Frutarom Acquisition Related Costs (f)	(9,529		)	—
Operating profit	163,870			174,856
Interest expense	(36,572		)	(16,595		)
Other income (expense)	7,278			576
Income before taxes	$	134,576		$	158,837



(a)	Represents accelerated depreciation related to a plant relocation in India, as well as a lab closure in Taiwan for 2018.
(b)	Represents adjustments to the contingent consideration payable for PowderPure, and transaction costs related to Fragrance Resources and PowderPure within Selling and administrative expenses.
(c)	Represents costs related to the integration of the Frutarom acquisition, principally advisory expenses.
(d)	For 2019, represents severance costs related primarily to Scent. For 2018, represents severance costs related to the 2017 Productivity Program and Taiwan lab closure.
(e)	Represents losses related to the FDA mandated recall.
(f)	Represents transaction-related costs and expenses related to the acquisition of Frutarom. Amount primarily includes $7.9 million of amortization for inventory "step-up" costs and $1.7 million of transaction costs included in Selling and administrative expenses.

Net sales are attributed to individual regions based upon the destination of product delivery are as follows:



	Three Months Ended
	March 31,
(DOLLARS IN THOUSANDS)	2019		2018
Europe, Africa and Middle East	$	529,606	$	309,312
Greater Asia	287,962		243,557
North America	301,059		241,146
Latin America	178,775		136,913
Consolidated	$	1,297,402	$	930,928

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 March 31, 2019 and 2018 were $272.8 million and $230.2 million, respectively. Net sales attributed to all foreign countries in total for the three months ended March 31, 2019 and 2018 were $1.0 billion and $700.7 million, respectively. No non-U.S. country had net sales in any period presented greater than 7% of total consolidated net sales.