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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2015
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
NOTE 10 – SEGMENT INFORMATION

During the first quarter of fiscal year 2015, information that our chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed, and as a result, the Company changed its communication to external investors. Therefore, beginning in fiscal year 2015, we are reporting our financial performance based on our new segments; Specialty Products, SensoryEffects, Animal Nutrition & Health, and Industrial Products. We have retrospectively revised certain prior period amounts to conform to the way we internally manage and monitor segment performance during the current fiscal year. Our reportable segments are described below.

SensoryEffects

Our SensoryEffects segment supplies ingredients in the food and beverage industry; providing customized solutions in powder, solid and liquid flavor delivery systems, spray dried emulsified powder systems, and cereal systems.  Our products include creamer systems, dairy replacers, powdered fats, nutritional beverage bases, beverages, juice & dairy bases, chocolate systems, ice cream bases & variegates, ready-to-eat cereals, grain based snacks, and cereal based ingredients. Additionally, we provide microencapsulation solutions to a variety of applications in food, pharmaceutical and nutritional ingredients to enhance performance of nutritional fortification, processing, mixing, and packaging applications and shelf-life. Major product applications are baked goods, refrigerated and frozen dough systems, processed meats, seasoning blends, confections, and nutritional supplements. We also produce and market human grade choline nutrient products through this segment for wellness applications. Choline is recognized to play a key role in the development and structural integrity of brain cell membranes in infants, processing dietary fat, reproductive development and neural functions, such as memory and muscle function.

Animal Nutrition & Health

Our Animal Nutrition & Health (“ANH”) segment provides nutritional products derived from our microencapsulation and chelation technologies in addition to basic choline chloride. For ruminant animals, our microencapsulated products boost health and milk production, delivering nutrient supplements that are biologically available, providing required nutritional levels. Our proprietary chelation technology provides enhanced nutrient absorption for various species of production and companion animals and is marketed for use in animal feed throughout the world. ANH also manufactures and supplies choline chloride, an essential nutrient for monogastric animal health, predominantly to the poultry, pet and swine industries. Choline, which is manufactured and sold in both dry and aqueous forms, plays a vital role in the metabolism of fat. Choline deficiency can result in reduced growth and perosis in poultry; fatty liver, kidney necrosis and general poor health condition in swine.
 
Sales of specialty products for the animal nutrition and health industry are highly dependent on dairy industry economics as well as the ability of the Company to leverage the results of university and field research on the animal health benefits of the Company’s products. Management believes that success in the commodity-oriented basic choline chloride marketplace is highly dependent on the Company’s ability to maintain its strong reputation for excellent product quality and customer service. The Company continues to increase production efficiencies in order to maintain its competitive-cost position to effectively compete in a competitive global marketplace.

Specialty Products

Our Specialty Products segment operates commercially as ARC Specialty Products.

Ethylene oxide, at the 100% level, is sold as a sterilant gas, primarily for use in the health care industry. It is used to sterilize a wide range of medical devices because of its versatility and effectiveness in treating hard or soft surfaces, composites, metals, tubing and different types of plastics without negatively impacting the performance of the device being sterilized. Our 100% ethylene oxide product is distributed in uniquely designed, recyclable, double-walled, stainless steel drums to assure compliance with safety, quality and environmental standards as outlined by the EPA and the DOT. Our inventory of these specially built drums, along with our two filling facilities, represents a significant capital investment. Contract sterilizers and medical device manufacturers are principal customers for this product. We also sell single use canisters with 100% ethylene oxide for use in sterilizing re-usable devices typically processed in autoclave units in hospitals. As a fumigant, ethylene oxide blends are highly effective in killing bacteria, fungi, and insects in spices and other seasoning materials.

Propylene oxide is marketed and sold as a fumigant to aid in the control of insects and microbiological spoilage; and to reduce bacterial and mold contamination in certain shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs and prunes. We distribute our propylene oxide product primarily in recyclable, single-walled, carbon steel cylinders according to standards outlined by the EPA and the DOT. Our inventory of these cylinders also represents a significant capital investment. Propylene oxide is also sold to customers seeking smaller (as opposed to bulk) quantities and whose requirements include utilization in various chemical synthesis applications, such as increasing paint durability and manufacturing specialty starches and textile coatings.

Industrial Products

Certain derivatives of choline chloride are manufactured and sold into industrial applications predominately as a component for hydraulic fracturing of shale natural gas wells. Our products offer an attractive, effective and more environmentally responsible alternative than other clay stabilizers. Industrial grade Choline Bicarbonate is completely chloride free and our Choline Chloride reduces the amount of chlorides released into the environment up to 75% when compared to potassium chloride. The Industrial Products segment also includes the manufacture and sale of methylamines. Methylamines are a primary building block for the manufacture of choline products and are produced at our Italian operation and sold for a wide range of industrial applications in Europe.
 
Business Segment Assets:
  
June 30,
2015
  
December 31, 2014
 
SensoryEffects
 
$
642,691
  
$
656,130
 
Animal Nutrition & Health
  
99,743
   
90,650
 
Specialty Products
  
25,853
   
24,913
 
Industrial Products
20,217
32,330
Other Unallocated
  
80,476
   
57,508
 
Total
 
$
868,980
  
$
861,531
 

Depreciation/Amortization:
  
Three Months Ended
June 30,
  
Six Months Ended
June 30,
 
  
2015
  
2014
  
2015
  
2014
 
SensoryEffects
 
$
7,533
  
$
4,798
  
$
15,172
  
$
5,097
 
Animal Nutrition & Health
1,582
1,852
3,128
3,373
Specialty Products
  
300
   
353
   
641
   
713
 
Industrial Products
  
297
   
128
   
640
   
579
 
Total
 
$
9,712
  
$
7,131
  
$
19,581
  
$
9,762
 

Capital Expenditures:
  
Six Months Ended
June 30,
 
  
2015
  
2014
 
SensoryEffects
 
$
5,702
  
$
886
 
Animal Nutriton & Health
  
8,290
   
1,803
 
Specialty Products
  
489
   
441
 
Industrial Products
818
374
Total
 
$
15,299
  
$
3,504
 

Business Segment Net Sales:
  
Three Months Ended
June 30,
  
Six Months Ended
June 30,
 
  
2015
  
2014
  
2015
  
2014
 
SensoryEffects
 
$
67,230
  
$
49,199
  
$
134,987
  
$
61,349
 
Animal Nutrition & Health
  
41,642
   
43,221
   
84,348
   
84,074
 
Specialty Products
  
13,805
   
13,642
   
27,384
   
26,434
 
Industrial Products
12,096
26,168
32,916
46,368
Total
 
$
134,773
  
$
132,230
  
$
279,635
  
$
218,225
 
 
Business Segment Earnings Before Income Taxes:
  
Three Months Ended
June 30,
  
Six Months Ended
June 30,
 
  
2015
  
2014
  
2015
  
2014
 
SensoryEffects
 
$
9,087
  
$
2,874
  
$
16,793
  
$
5,475
 
Animal Nutrition & Health
  
7,468
   
5,510
   
15,978
   
9,669
 
Specialty Products
  
6,093
   
5,463
   
11,794
   
10,269
 
Industrial Products
1,126
4,165
4,247
7,299
Transaction and integration costs
  
-
   
(1,503
)
  
-
   
(2,848
)
Interest and other income (expense)
  
(1,607
)
  
(1,218
)
  
(3,560
)
  
(1,201
)
Total
 
$
22,167
  
$
15,291
  
$
45,252
  
$
28,663
 

Transaction and integration costs were primarily related to the definitive agreement to acquire Performance Chemicals & Ingredients Company (d/b/a SensoryEffects; see Note 2).

The following table summarizes domestic (U.S.) and foreign sales for the three and six months ended June 30, 2015 and 2014:

  
Three Months Ended
June 30,
  
Six Months Ended
June 30,
 
  
2015
  
2014
  
2015
  
2014
 
Domestic
 
$
103,003
  
$
98,191
  
$
224,779
  
$
154,335
 
Foreign
  
31,770
   
34,039
   
54,856
   
63,890
 
Total
 
$
134,773
  
$
132,230
  
$
279,635
  
$
218,225