XML 23 R14.htm IDEA: XBRL DOCUMENT
v3.20.2

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2020
Segment Information [Abstract] |
Segment Information |
7. | Segment Information
During the third quarter of 2020, the Company changed the name of its Flavors & Fragrances segment to the Flavors & Extracts segment in order to more accurately reflect the group’s product portfolio. In addition, the Company changed the name of its Food & Beverage Colors product line to Food & Pharmaceutical Colors. Operating results by segment for the periods presented are as follows:
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Corporate & Other |  |  | Consolidated |
Three months ended September 30, 2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 179,687 |  |  | $ | 113,139 |  |  | $ | 30,740 |  |  | $ | - |  |  | $ | 323,566 |
Intersegment revenue |  |  | 3,179 |  |  |  | 3,275 |  |  |  | - |  |  |  | - |  |  |  | 6,454 |
Total revenue |  | $ | 182,866 |  |  | $ | 116,414 |  |  | $ | 30,740 |  |  | $ | - |  |  | $ | 330,020 |
Operating income (loss) |  | $ | 23,844 |  |  | $ | 23,559 |  |  | $ | 6,123 |  |  | $ | (12,371 | ) |  | $ | 41,155 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,497 |  |  |  | 3,497 |
Earnings (loss) before income taxes |  | $ | 23,844 |  |  | $ | 23,559 |  |  | $ | 6,123 |  |  | $ | (15,868 | ) |  | $ | 37,658 |
Three months ended September 30, 2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 163,870 |  |  | $ | 123,710 |  |  | $ | 30,070 |  |  | $ | - |  |  | $ | 317,650 |
Intersegment revenue |  |  | 3,707 |  |  |  | 3,295 |  |  |  | 55 |  |  |  | - |  |  |  | 7,057 |
Total revenue |  | $ | 167,577 |  |  | $ | 127,005 |  |  | $ | 30,125 |  |  | $ | - |  |  | $ | 324,707 |
Operating income (loss) |  | $ | 17,600 |  |  | $ | 23,436 |  |  | $ | 5,406 |  |  | $ | (7,654 | ) |  | $ | 38,788 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,936 |  |  |  | 4,936 |
Earnings (loss) before income taxes |  | $ | 17,600 |  |  | $ | 23,436 |  |  | $ | 5,406 |  |  | $ | (12,590 | ) |  | $ | 33,852 |
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Corporate & Other |  |  | Consolidated |
Nine months ended September 30, 2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 539,304 |  |  | $ | 369,211 |  |  | $ | 88,818 |  |  | $ | - |  |  | $ | 997,333 |
Intersegment revenue |  |  | 13,671 |  |  |  | 11,994 |  |  |  | 244 |  |  |  | - |  |  |  | 25,909 |
Total revenue |  | $ | 552,975 |  |  | $ | 381,205 |  |  | $ | 89,062 |  |  | $ | - |  |  | $ | 1,023,242 |
Operating income (loss) |  | $ | 67,467 |  |  | $ | 75,486 |  |  | $ | 16,031 |  |  | $ | (41,143 | ) |  | $ | 117,841 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 11,412 |  |  |  | 11,412 |
Earnings (loss) before income taxes |  | $ | 67,467 |  |  | $ | 75,486 |  |  | $ | 16,031 |  |  | $ | (52,555 | ) |  | $ | 106,429 |
Nine months ended September 30, 2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 517,148 |  |  | $ | 399,610 |  |  | $ | 87,591 |  |  | $ | - |  |  | $ | 1,004,349 |
Intersegment revenue |  |  | 14,116 |  |  |  | 10,186 |  |  |  | 55 |  |  |  | - |  |  |  | 24,357 |
Total revenue |  | $ | 531,264 |  |  | $ | 409,796 |  |  | $ | 87,646 |  |  | $ | - |  |  | $ | 1,028,706 |
Operating income (loss) |  | $ | 60,775 |  |  | $ | 81,512 |  |  | $ | 13,825 |  |  | $ | (20,536 | ) |  | $ | 135,576 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 15,538 |  |  |  | 15,538 |
Earnings (loss) before income taxes |  | $ | 60,775 |  |  | $ | 81,512 |  |  | $ | 13,825 |  |  | $ | (36,074 | ) |  | $ | 120,038 |
The Company evaluates performance based on operating income before divestiture and other related costs, restructuring and other charges including operational improvement plan costs, 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 divestitures of the Company’s inks and yogurt fruit preparations product lines, and the anticipated divestiture of the Company’s fragrances product line (excluding its essential oils product line), and the operational improvement plan, are reported in Corporate & Other. There were no divestiture and other related costs, restructuring and other costs, or operational improvement plan costs, in the first nine 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 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 & Pharmaceutical Colors (formerly 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 & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
Three months ended September 30, 2020: |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 98,952 |  |  | $ | - |  |  | $ | - |  |  | $ | 98,952 |
Natural Ingredients |  |  | 60,937 |  |  |  | - |  |  |  | - |  |  |  | 60,937 |
Fragrances |  |  | 19,890 |  |  |  | - |  |  |  | - |  |  |  | 19,890 |
Yogurt Fruit Preparations |  |  | 3,087 |  |  |  | - |  |  |  | - |  |  |  | 3,087 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 83,406 |  |  |  | - |  |  |  | 83,406 |
Personal Care |  |  | - |  |  |  | 32,495 |  |  |  | - |  |  |  | 32,495 |
Inks |  |  | - |  |  |  | 513 |  |  |  | - |  |  |  | 513 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 30,740 |  |  |  | 30,740 |
Intersegment Revenue |  |  | (3,179 | ) |  |  | (3,275 | ) |  |  | - |  |  |  | (6,454 | )
Total revenue from external customers |  | $ | 179,687 |  |  | $ | 113,139 |  |  | $ | 30,740 |  |  | $ | 323,566 |
Three months ended September 30, 2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 88,404 |  |  | $ | - |  |  | $ | - |  |  | $ | 88,404 |
Natural Ingredients |  |  | 53,220 |  |  |  | - |  |  |  | - |  |  |  | 53,220 |
Fragrances |  |  | 21,395 |  |  |  | - |  |  |  | - |  |  |  | 21,395 |
Yogurt Fruit Preparations |  |  | 4,558 |  |  |  | - |  |  |  | - |  |  |  | 4,558 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 81,805 |  |  |  | - |  |  |  | 81,805 |
Personal Care |  |  | - |  |  |  | 37,276 |  |  |  | - |  |  |  | 37,276 |
Inks |  |  | - |  |  |  | 7,924 |  |  |  | - |  |  |  | 7,924 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 30,125 |  |  |  | 30,125 |
Intersegment Revenue |  |  | (3,707 | ) |  |  | (3,295 | ) |  |  | (55 | ) |  |  | (7,057 | )
Total revenue from external customers |  | $ | 163,870 |  |  | $ | 123,710 |  |  | $ | 30,070 |  |  | $ | 317,650 |
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
Nine months ended September 30, 2020: |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 302,047 |  |  | $ | - |  |  | $ | - |  |  | $ | 302,047 |
Natural Ingredients |  |  | 175,764 |  |  |  | - |  |  |  | - |  |  |  | 175,764 |
Fragrances |  |  | 63,251 |  |  |  | - |  |  |  | - |  |  |  | 63,251 |
Yogurt Fruit Preparations |  |  | 11,913 |  |  |  | - |  |  |  | - |  |  |  | 11,913 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 261,024 |  |  |  | - |  |  |  | 261,024 |
Personal Care |  |  | - |  |  |  | 107,333 |  |  |  | - |  |  |  | 107,333 |
Inks |  |  | - |  |  |  | 12,848 |  |  |  | - |  |  |  | 12,848 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 89,062 |  |  |  | 89,062 |
Intersegment Revenue |  |  | (13,671 | ) |  |  | (11,994 | ) |  |  | (244 | ) |  |  | (25,909 | )
Total revenue from external customers |  | $ | 539,304 |  |  | $ | 369,211 |  |  | $ | 88,818 |  |  | $ | 997,333 |
Nine months ended September 30, 2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 292,347 |  |  | $ | - |  |  | $ | - |  |  | $ | 292,347 |
Natural Ingredients |  |  | 156,864 |  |  |  | - |  |  |  | - |  |  |  | 156,864 |
Fragrances |  |  | 65,828 |  |  |  | - |  |  |  | - |  |  |  | 65,828 |
Yogurt Fruit Preparations |  |  | 16,225 |  |  |  | - |  |  |  | - |  |  |  | 16,225 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 259,249 |  |  |  | - |  |  |  | 259,249 |
Personal Care |  |  | - |  |  |  | 123,595 |  |  |  | - |  |  |  | 123,595 |
Inks |  |  | - |  |  |  | 26,952 |  |  |  | - |  |  |  | 26,952 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 87,646 |  |  |  | 87,646 |
Intersegment Revenue |  |  | (14,116 | ) |  |  | (10,186 | ) |  |  | (55 | ) |  |  | (24,357 | )
Total revenue from external customers |  | $ | 517,148 |  |  | $ | 399,610 |  |  | $ | 87,591 |  |  | $ | 1,004,349 |
Geographic Markets
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
Three months ended September 30, 2020: |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 124,125 |  |  | $ | 61,937 |  |  | $ | 48 |  |  | $ | 186,110 |
Europe |  |  | 37,257 |  |  |  | 24,953 |  |  |  | 11 |  |  |  | 62,221 |
Asia Pacific |  |  | 7,905 |  |  |  | 10,926 |  |  |  | 29,489 |  |  |  | 48,320 |
Other |  |  | 10,400 |  |  |  | 15,323 |  |  |  | 1,192 |  |  |  | 26,915 |
Total revenue from external customers |  | $ | 179,687 |  |  | $ | 113,139 |  |  | $ | 30,740 |  |  | $ | 323,566 |
Three months ended September 30, 2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 109,659 |  |  | $ | 60,801 |  |  | $ | 25 |  |  | $ | 170,485 |
Europe |  |  | 35,964 |  |  |  | 33,027 |  |  |  | 132 |  |  |  | 69,123 |
Asia Pacific |  |  | 7,002 |  |  |  | 12,903 |  |  |  | 29,731 |  |  |  | 49,636 |
Other |  |  | 11,245 |  |  |  | 16,979 |  |  |  | 182 |  |  |  | 28,406 |
Total revenue from external customers |  | $ | 163,870 |  |  | $ | 123,710 |  |  | $ | 30,070 |  |  | $ | 317,650 |
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
Nine months ended September 30, 2020: |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 361,653 |  |  | $ | 189,572 |  |  | $ | 48 |  |  | $ | 551,273 |
Europe |  |  | 120,406 |  |  |  | 88,941 |  |  |  | 78 |  |  |  | 209,425 |
Asia Pacific |  |  | 25,363 |  |  |  | 43,096 |  |  |  | 85,746 |  |  |  | 154,205 |
Other |  |  | 31,882 |  |  |  | 47,602 |  |  |  | 2,946 |  |  |  | 82,430 |
Total revenue from external customers |  | $ | 539,304 |  |  | $ | 369,211 |  |  | $ | 88,818 |  |  | $ | 997,333 |
Nine months ended September 30, 2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 335,521 |  |  | $ | 192,109 |  |  | $ | 87 |  |  | $ | 527,717 |
Europe |  |  | 125,288 |  |  |  | 113,844 |  |  |  | 280 |  |  |  | 239,412 |
Asia Pacific |  |  | 24,041 |  |  |  | 44,440 |  |  |  | 86,719 |  |  |  | 155,200 |
Other |  |  | 32,298 |  |  |  | 49,217 |  |  |  | 505 |  |  |  | 82,020 |
Total revenue from external customers |  | $ | 517,148 |  |  | $ | 399,610 |  |  | $ | 87,591 |  |  | $ | 1,004,349 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration