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SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended
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Dec. 31, 2014
SEGMENT AND GEOGRAPHIC INFORMATION [Abstract] |
SEGMENT AND GEOGRAPHIC INFORMATION | 9. SEGMENT AND GEOGRAPHIC INFORMATION The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on operating income of the respective business units before restructuring charges, interest expense and income taxes. Total revenue and operating income by business segment and geographic region include both sales to customers, as reported in the Company’s Consolidated Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation. Corporate & Other revenue consists primarily of flavor, fragrances and color products sold by the Asia Pacific Group and Flavors Central & South America Group. Assets by business segment and geographic region are those assets used in the Company’s operations in each segment and geographic region. Segment assets reflect the allocation of goodwill to each segment. Corporate & Other assets consist primarily of property and investments. Segment Information The Company determines its operating segments based on information utilized by the chief operating decision maker to allocate resources and assess performance. The Company’s reportable segments consist of Flavors & Fragrances and Color and are both managed on a products and services basis. The Company’s Flavors & Fragrances segment produces flavor and fragrance products that impart a desired taste, texture, aroma or other characteristic to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for pharmaceuticals, foods and beverages; colors and formulations for cosmetics; and technical colors for industrial applications. Two additional segments, Asia Pacific and Flavors Central & South America are managed on a geographic basis and included in Corporate & Other. Beginning in 2014, the results of operations for the Company’s fragrances businesses in Asia Pacific, previously reported in the Corporate & Other segment, are reported in the Flavors & Fragrances segment, and the results of operations for the Company’s pharmaceutical flavors business, previously reported in the Flavors & Fragrances segment, are reported in the Color segment with the pharmaceutical colors business. The Color segment results have been restated to remove the impact of a discontinued operation. The prior year results have been restated as a result of these changes. Restructuring and other costs related to continuing operations for the years ended December 31, 2014 and 2013, are further described in Note 11, Restructuring Charges, and are included in the Operating income (loss) results in the Corporate & Other segment below. Consistent with presentation in the Consolidated Balance Sheets and Statements of Cash Flows, the below amounts for Assets, Capital expenditures, and Depreciation and amortization include discontinued operations for all periods presented and are included in the Corporate & Other segment.
(in thousands) |  | Flavors & Fragrances |  |  | Color |  |  | Corporate & Other |  |  | Consolidated |
2014 |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 813,808 |  |  | $ | 487,503 |  |  | $ | 146,510 |  |  | $ | 1,447,821 |
Intersegment revenue |  |  | 33,214 |  |  |  | 20,574 |  |  |  | 229 |  |  |  | 54,017 |
Total revenue |  |  | 847,022 |  |  |  | 508,077 |  |  |  | 146,739 |  |  |  | 1,501,838 |
Operating income (loss) |  |  | 119,093 |  |  |  | 114,884 |  |  |  | (103,312 | ) |  |  | 130,665 |
Interest expense |  |  | — |  |  |  | — |  |  |  | 16,067 |  |  |  | 16,067 |
Earnings (loss) before income taxes from continuing operations |  |  | 119,093 |  |  |  | 114,884 |  |  |  | (119,379 | ) |  |  | 114,598 |
Assets |  |  | 814,215 |  |  |  | 732,364 |  |  |  | 218,627 |  |  |  | 1,765,206 |
Capital expenditures |  |  | 41,131 |  |  |  | 31,883 |  |  |  | 6,384 |  |  |  | 79,398 |
Depreciation and amortization |  |  | 26,180 |  |  |  | 18,785 |  |  |  | 6,491 |  |  |  | 51,456 |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 843,233 |  |  | $ | 473,811 |  |  | $ | 145,082 |  |  | $ | 1,462,126 |
Intersegment revenue |  |  | 33,269 |  |  |  | 21,246 |  |  |  | 97 |  |  |  | 54,612 |
Total revenue |  |  | 876,502 |  |  |  | 495,057 |  |  |  | 145,179 |  |  |  | 1,516,738 |
Operating income (loss) |  |  | 120,278 |  |  |  | 107,873 |  |  |  | (54,371 | ) |  |  | 173,780 |
Interest expense |  |  | — |  |  |  | — |  |  |  | 16,147 |  |  |  | 16,147 |
Earnings (loss) before income taxes from continuing operations |  |  | 120,278 |  |  |  | 107,873 |  |  |  | (70,518 | ) |  |  | 157,633 |
Assets |  |  | 896,335 |  |  |  | 761,485 |  |  |  | 212,914 |  |  |  | 1,870,734 |
Capital expenditures |  |  | 59,040 |  |  |  | 38,639 |  |  |  | 6,567 |  |  |  | 104,246 |
Depreciation and amortization |  |  | 27,435 |  |  |  | 17,541 |  |  |  | 7,040 |  |  |  | 52,016 |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 835,619 |  |  | $ | 478,341 |  |  | $ | 139,595 |  |  | $ | 1,453,555 |
Intersegment revenue |  |  | 34,428 |  |  |  | 22,326 |  |  |  | 34 |  |  |  | 56,788 |
Total revenue |  |  | 870,047 |  |  |  | 500,667 |  |  |  | 139,629 |  |  |  | 1,510,343 |
Operating income (loss) |  |  | 120,825 |  |  |  | 101,062 |  |  |  | (29,008 | ) |  |  | 192,879 |
Interest expense |  |  | — |  |  |  | — |  |  |  | 16,901 |  |  |  | 16,901 |
Earnings (loss) before income taxes from continuing operations |  |  | 120,825 |  |  |  | 101,062 |  |  |  | (45,909 | ) |  |  | 175,978 |
Assets |  |  | 859,303 |  |  |  | 715,683 |  |  |  | 201,657 |  |  |  | 1,776,643 |
Capital expenditures |  |  | 49,781 |  |  |  | 45,858 |  |  |  | 8,167 |  |  |  | 103,806 |
Depreciation and amortization |  |  | 26,996 |  |  |  | 14,393 |  |  |  | 6,963 |  |  |  | 48,352 |
Geographic Information The Company has manufacturing facilities or sales offices in North America, Europe, Asia, Australia, South America and Africa. The Company’s annual revenue from continuing operations summarized by geographic location is as follows:
(in thousands) |  | 2014 |  |  | 2013 |  |  | 2012 |
Revenue from external customers: |  |  |  |  |  |  |  |  |
North America |  | $ | 750,345 |  |  | $ | 782,088 |  |  | $ | 783,840 |
Europe |  |  | 389,588 |  |  |  | 382,077 |  |  |  | 370,490 |
Asia Pacific |  |  | 193,163 |  |  |  | 188,917 |  |  |  | 197,658 |
Other |  |  | 114,725 |  |  |  | 109,044 |  |  |  | 101,567 |
Consolidated |  | $ | 1,447,821 |  |  | $ | 1,462,126 |  |  | $ | 1,453,555 |
Long-lived assets: |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 537,668 |  |  | $ | 531,005 |  |  | $ | 504,483 |
Europe |  |  | 423,972 |  |  |  | 506,352 |  |  |  | 472,865 |
Asia Pacific |  |  | 29,948 |  |  |  | 32,148 |  |  |  | 35,891 |
Other |  |  | 14,229 |  |  |  | 11,404 |  |  |  | 12,050 |
Consolidated |  | $ | 1,005,817 |  |  | $ | 1,080,909 |  |  | $ | 1,025,289 |
Sales in the United States, based on the final country of destination of the Company’s products, were $573.6 million, $590.0 million and $596.4 million in 2014, 2013 and 2012, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $450.8 million, $389.7 million and $360.1 million at December 31, 2014, 2013 and 2012, respectively. Product InformationThe Company’s revenue from continuing operations summarized by product portfolio is as follows:
(in thousands) |  | 2014 |  |  | 2013 |  |  | 2012 |
Traditional Flavors & Fragrances |  | $ | 724,693 |  |  | $ | 736,107 |  |  | $ | 715,227 |
Natural Ingredients |  |  | 227,538 |  |  |  | 244,155 |  |  |  | 252,941 |
Food & Beverage Colors |  |  | 334,565 |  |  |  | 307,179 |  |  |  | 310,639 |
Non-Food Colors |  |  | 215,042 |  |  |  | 229,297 |  |  |  | 231,536 |
Interdivision Revenue |  |  | (54,017 | ) |  |  | (54,612 | ) |  |  | (56,788 | )
Consolidated |  | $ | 1,447,821 |  |  | $ | 1,462,126 |  |  | $ | 1,453,555 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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