Segment Information

3 Months Ended

Mar. 31, 2020

6.	Segment Information

Operating results by segment for the periods presented are as follows:

(In thousands)	Flavors & Fragrances		Color		Asia Pacific		Corporate & Other			Consolidated
Three months ended March 31, 2020:
Revenue from external customers	$	181,187	$	139,193	$	30,297	$	-		$	350,677
Intersegment revenue		5,311		4,302		152		-			9,765
Total revenue	$	186,498	$	143,495	$	30,449	$	-		$	360,442

Operating income (loss)	$	20,871	$	29,664	$	5,059	$	(21,033	)	$	34,561
Interest expense		-		-		-		4,307			4,307
Earnings (loss) before income taxes	$	20,871	$	29,664	$	5,059	$	(25,340	)	$	30,254

Three months ended March 31, 2019:
Revenue from external customers	$	178,744	$	140,250	$	28,519	$	-		$	347,513
Intersegment revenue		4,809		3,629		-		-			8,438
Total revenue	$	183,553	$	143,879	$	28,519	$	-		$	355,951

Operating income (loss)	$	23,125	$	30,199	$	4,218	$	(8,122	)	$	49,420
Interest expense		-		-		-		5,402			5,402
Earnings (loss) before income taxes	$	23,125	$	30,199	$	4,218	$	(13,524	)	$	44,018

The Company evaluates performance based on operating income before divestiture and other related costs, 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 Condensed Statements of Earnings, and intersegment sales, which are accounted for at prices that approximate market prices and are eliminated in consolidation. The 2020 divestiture and other related costs, which pertain to the anticipated divestitures of the Company’s inks, fragrances (excluding its essential oils product line), and yogurt fruit preparations product lines, are reported in Corporate & Other. There were no divestiture and other related costs or restructuring and other costs in the first three months of 2019.

In addition to evaluating the Company’s performance based on the segments above, revenue is also disaggregated and analyzed by product line and geographic market. The following tables display the Company’s revenue by these major sources.

During the first quarter of 2020, the Company updated its product line disclosures as a result of its previous announcement regarding its intent to divest its inks, fragrances (excluding its essential oils product line), and yogurt fruit preparations product lines.

Flavors, Extracts & Flavor Ingredients now includes essential oils, which was previously reported in Fragrances. Fragrances now only includes the aroma chemicals and fragrance compounds product lines. Yogurt Fruit Preparations is now disclosed separately; previously it was reported in the Flavors product line.

Food & Beverage Colors now includes pharmaceutical colors and natural extraction, which were previously reported in Other Colors. Personal Care includes cosmetic and non-food colors. Inks is now disclosed separately; previously it was reported in Other Colors.

The results for 2019 have been restated to reflect these changes.

Product Lines

(In thousands)	Flavors & Fragrances			Color			Asia Pacific			Consolidated
Three months ended March 31, 2020:
Flavors, Extracts & Flavor Ingredients	$	101,453		$	-		$	-		$	101,453
Natural Ingredients		57,600			-			-			57,600
Fragrances		22,284			-			-			22,284
Yogurt Fruit Preparations		5,161			-			-			5,161
Food & Beverage Colors		-			90,793			-			90,793
Personal Care		-			43,743			-			43,743
Inks		-			8,959			-			8,959
Asia Pacific		-			-			30,449			30,449
Intersegment Revenue		(5,311	)		(4,302	)		(152	)		(9,765	)
Total revenue from external customers	$	181,187		$	139,193		$	30,297		$	350,677

Three months ended March 31, 2019:
Flavors, Extracts & Flavor Ingredients	$	103,528		$	-		$	-	$	103,528
Natural Ingredients		51,219			-			-		51,219
Fragrances		23,267			-			-		23,267
Yogurt Fruit Preparations		5,539			-			-		5,539
Food & Beverage Colors		-			88,848			-		88,848
Personal Care		-			44,921			-		44,921
Inks		-			10,110			-		10,110
Asia Pacific		-			-			28,519		28,519
Intersegment Revenue		(4,809	)		(3,629	)		-		(8,438	)
Total revenue from external customers	$	178,744		$	140,250		$	28,519	$	347,513

Geographic Markets

(In thousands)	Flavors & Fragrances		Color		Asia Pacific		Consolidated
Three months ended March 31, 2020:
North America	$	116,701	$	66,265	$	-	$	182,966
Europe		43,877		38,738		22		82,637
Asia Pacific		9,355		15,975		29,122		54,452
Other		11,254		18,215		1,153		30,622
Total revenue from external customers	$	181,187	$	139,193	$	30,297	$	350,677

Three months ended March 31, 2019:
North America	$	112,747	$	66,007	$	25	$	178,779
Europe		48,001		42,135		41		90,177
Asia Pacific		7,609		16,425		28,266		52,300
Other		10,387		15,683		187		26,257
Total revenue from external customers	$	178,744	$	140,250	$	28,519	$	347,513