10. 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 before restructuring and other charges, interest expense, and income taxes (“segment operating income”). Total revenue and segment 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.

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 fixed assets and investments.

Segment Information

The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. Segment performance is evaluated on operating income of the respective business units before restructuring and other charges which are reported in Corporate & Other.

The Company’s three reportable segments are Flavors & Fragrances and Color segments, which are both managed on a product line basis, and the Asia Pacific segment, which is managed on a geographic 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 consumers and other products. The Color segment produces natural and synthetic color systems for foods, beverages, pharmaceuticals and nutraceuticals; colors, ingredients and systems for cosmetics; specialty inks and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color, flavor, and fragrance products for the Asia Pacific countries. The Company’s corporate expenses and restructuring and other costs are included in the “Corporate & Other” category.

The results of operations for certain of the Company’s cosmetic and fragrance businesses in the Asia Pacific segment are now reported in the Color segment and Flavors & Fragrances segment, respectively. The results for all prior years have been restated to reflect these changes.

Restructuring and other costs related to continuing operations for the years ended December 31, 2017, 2016, and 2015, are further described in Note 12, Restructuring Charges, and Note 14, Divestiture, and are included in the operating income (loss) results in Corporate & Other below. Consistent with presentation in the Company’s 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 Corporate & Other. In addition, the Company’s corporate expenses are included in Corporate & Other.

(In thousands)	Flavors & Fragrances		Color		Asia Pacific		Corporate & Other			Consolidated
2017:
Revenue from external customers	$	727,026	$	512,811	$	122,428	$	—		$	1,362,265
Intersegment revenue		19,917		13,552		765		—			34,234
Total revenue		746,943		526,363		123,193		—			1,396,499

Operating income (loss)		114,343		113,381		20,772		(80,690	)		167,806
Interest expense		—		—		—		19,383			19,383
Earnings (loss) before income taxes from continuing operations		114,343		113,381		20,772		(100,073	)		148,423

Assets		773,173		720,328		99,770		131,069			1,724,340
Capital expenditures		31,989		18,797		3,557		2,001			56,344
Depreciation and amortization		23,611		19,902		2,303		2,702			48,518

2016:
Revenue from external customers	$	771,434	$	490,862	$	120,914	$	—		$	1,383,210
Intersegment revenue		24,377		13,269		282		—			37,928
Total revenue		795,811		504,131		121,196		—			1,421,138

Operating income (loss)		124,059		105,814		23,603		(67,867	)		185,609
Interest expense		—		—		—		18,324			18,324
Earnings (loss) before income taxes from continuing operations		124,059		105,814		23,603		(86,191	)		167,285

Assets		785,449		673,754		92,203		116,454			1,667,860
Capital expenditures		57,622		15,422		5,199		2,973			81,216
Depreciation and amortization		22,897		19,421		2,042		2,659			47,019

2015:
Revenue from external customers	$	795,239	$	469,718	$	111,007	$	—		$	1,375,964
Intersegment revenue		24,211		12,174		180		—			36,565
Total revenue		819,450		481,892		111,187		—			1,412,529

Operating income (loss)		122,285		97,657		22,227		(75,828	)		166,341
Interest expense		—		—		—		16,945			16,945
Earnings (loss) before income taxes from continuing operations		122,285		97,657		22,227		(92,773	)		149,396

Assets		806,755		714,138		74,972		107,867			1,703,732
Capital expenditures		56,233		18,933		2,643		2,132			79,941
Depreciation and amortization		24,049		19,025		1,853		3,012			47,939

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)	2017		2016		2015

Revenue from external customers:
North America	$	718,708	$	745,660	$	744,481
Europe		324,597		342,818		349,100
Asia Pacific		208,935		196,884		177,559
Other		110,025		97,848		104,824
Consolidated	$	1,362,265	$	1,383,210	$	1,375,964
Long-lived assets:
North America	$	546,661	$	548,674	$	541,654
Europe		405,238		361,029		397,244
Asia Pacific		31,390		30,006		26,589
Other		7,576		11,090		9,340
Consolidated	$	990,865	$	950,799	$	974,827

Sales in the United States, based on the final country of destination of the Company’s products, were $574.5 million, $595.0 million, and $592.9 million in 2017, 2016, and 2015, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $491.8 million, $495.3 million, and $486.1 million at December 31, 2017, 2016, and 2015, respectively.

Product Information

The Company’s revenue from continuing operations summarized by product portfolio is as follows:

(In thousands)	2017			2016			2015

Traditional Flavors & Fragrances	$	618,798		$	651,870		$	666,528
Natural Ingredients		224,983			240,710			240,793
Food & Beverage Colors		303,796			301,751			300,637
Non-Food Colors		248,922			226,807			204,571
Interdivision Revenue		(34,234	)		(37,928	)		(36,565	)
Consolidated	$	1,362,265		$	1,383,210		$	1,375,964