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SEGMENT AND GEOGRAPHIC INFORMATION
 12 Months Ended
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