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Segment and Geographic Information | 12 Months Ended
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Dec. 31, 2020
Segment and Geographic Information [Abstract] |
Segment and Geographic Information | 12. 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 divestiture & other related costs, share-based compensation, restructuring and other charges including operational improvement plan costs, one-time COVID-19 employee payment, 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 investments, deferred tax assets, and fixed assets. In 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. 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 divestiture & other related costs, share-based compensation, and restructuring and other charges including operational improvement plan costs, which are reported in Corporate & Other. The Company’s three reportable segments are Flavors & Extracts 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 & Extracts 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, divestiture & other related costs, share-based compensation, operational improvement plan expenses, COVID-19 employee payment, and other costs are included in the “Corporate & Other” category. Divestiture & other related costs and restructuring and other costs, including the operational improvement plan costs, for the years ended December 31, 2020 and 2019, are further described in Note 14, Divestitures, and Note 15, Operational Improvement Plan, and are included in the operating income (loss) results in Corporate & Other below. There were no divestiture & other related costs, restructuring and other costs, or operational improvement plan costs in 2018. In addition, the Company’s corporate expenses and share-based compensation are included in Corporate & Other.
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Corporate & Other |  |  | Consolidated |
2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 724,483 |  |  | $ | 486,536 |  |  | $ | 120,982 |  |  | $ | - |  |  | $ | 1,332,001 |
Intersegment revenue |  |  | 17,552 |  |  |  | 14,482 |  |  |  | 245 |  |  |  | - |  |  |  | 32,279 |
Total revenue |  |  | 742,035 |  |  |  | 501,018 |  |  |  | 121,227 |  |  |  | - |  |  |  | 1,364,280 |
Operating income (loss) |  |  | 90,974 |  |  |  | 96,034 |  |  |  | 22,075 |  |  |  | (56,427 | ) |  |  | 152,656 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 14,811 |  |  |  | 14,811 |
Earnings (loss) before income taxes |  |  | 90,974 |  |  |  | 96,034 |  |  |  | 22,075 |  |  |  | (71,238 | ) |  |  | 137,845 |
Assets |  |  | 686,348 |  |  |  | 718,665 |  |  |  | 100,258 |  |  |  | 235,589 |  |  |  | 1,740,860 |
Capital expenditures |  |  | 24,541 |  |  |  | 19,840 |  |  |  | 2,687 |  |  |  | 5,094 |  |  |  | 52,162 |
Depreciation and amortization |  |  | 24,801 |  |  |  | 19,368 |  |  |  | 2,578 |  |  |  | 2,894 |  |  |  | 49,641 |
2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 682,705 |  |  | $ | 522,051 |  |  | $ | 118,178 |  |  | $ | - |  |  | $ | 1,322,934 |
Intersegment revenue |  |  | 17,651 |  |  |  | 13,108 |  |  |  | 70 |  |  |  | - |  |  |  | 30,829 |
Total revenue |  |  | 700,356 |  |  |  | 535,159 |  |  |  | 118,248 |  |  |  | - |  |  |  | 1,353,763 |
Operating income (loss) |  |  | 74,961 |  |  |  | 101,190 |  |  |  | 19,382 |  |  |  | (74,423 | ) |  |  | 121,110 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 20,107 |  |  |  | 20,107 |
Earnings (loss) before income taxes |  |  | 74,961 |  |  |  | 101,190 |  |  |  | 19,382 |  |  |  | (94,530 | ) |  |  | 101,003 |
Assets |  |  | 714,779 |  |  |  | 734,343 |  |  |  | 99,183 |  |  |  | 191,846 |  |  |  | 1,740,151 |
Capital expenditures |  |  | 16,968 |  |  |  | 16,521 |  |  |  | 2,545 |  |  |  | 3,066 |  |  |  | 39,100 |
Depreciation and amortization |  |  | 27,179 |  |  |  | 22,088 |  |  |  | 2,581 |  |  |  | 3,167 |  |  |  | 55,015 |
2018: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 723,189 |  |  | $ | 540,499 |  |  | $ | 123,127 |  |  | $ | - |  |  | $ | 1,386,815 |
Intersegment revenue |  |  | 23,743 |  |  |  | 13,505 |  |  |  | 37 |  |  |  | - |  |  |  | 37,285 |
Total revenue |  |  | 746,932 |  |  |  | 554,004 |  |  |  | 123,164 |  |  |  | - |  |  |  | 1,424,100 |
Operating income (loss) |  |  | 96,433 |  |  |  | 113,306 |  |  |  | 20,856 |  |  |  | (27,217 | ) |  |  | 203,378 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 21,853 |  |  |  | 21,853 |
Earnings (loss) before income taxes |  |  | 96,433 |  |  |  | 113,306 |  |  |  | 20,856 |  |  |  | (49,070 | ) |  |  | 181,525 |
Assets |  |  | 782,145 |  |  |  | 752,305 |  |  |  | 103,808 |  |  |  | 186,682 |  |  |  | 1,824,940 |
Capital expenditures |  |  | 23,679 |  |  |  | 21,744 |  |  |  | 2,858 |  |  |  | 2,459 |  |  |  | 50,740 |
Depreciation and amortization |  |  | 25,922 |  |  |  | 21,931 |  |  |  | 2,451 |  |  |  | 2,940 |  |  |  | 53,244 |
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 summarized by geographic location is as follows:
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Corporate & Other |  |  | Consolidated |
2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 491,641 |  |  | $ | 241,608 |  |  | $ | 81 |  |  | $ | - |  |  | $ | 733,330 |
Europe |  |  | 160,083 |  |  |  | 129,704 |  |  |  | 193 |  |  |  | - |  |  |  | 289,980 |
Asia Pacific |  |  | 30,080 |  |  |  | 52,414 |  |  |  | 117,427 |  |  |  | - |  |  |  | 199,921 |
Other |  |  | 42,679 |  |  |  | 62,810 |  |  |  | 3,281 |  |  |  | - |  |  |  | 108,770 |
Total revenue from external customers |  | $ | 724,483 |  |  | $ | 486,536 |  |  | $ | 120,982 |  |  | $ | - |  |  | $ | 1,332,001 |
Long-lived assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 244,921 |  |  | $ | 252,906 |  |  | $ | - |  |  | $ | 102,577 |  |  | $ | 600,404 |
Europe |  |  | 112,424 |  |  |  | 226,840 |  |  |  | - |  |  |  | - |  |  |  | 339,264 |
Asia Pacific |  |  | 204 |  |  |  | 4,670 |  |  |  | 31,834 |  |  |  | - |  |  |  | 36,708 |
Other |  |  | 782 |  |  |  | 22,116 |  |  |  | - |  |  |  | - |  |  |  | 22,898 |
Total long-lived assets |  | $ | 358,331 |  |  | $ | 506,532 |  |  | $ | 31,834 |  |  | $ | 102,577 |  |  | $ | 999,274 |
2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 448,393 |  |  | $ | 251,593 |  |  | $ | 112 |  |  | $ | - |  |  | $ | 700,098 |
Europe |  |  | 158,902 |  |  |  | 148,393 |  |  |  | 336 |  |  |  | - |  |  |  | 307,631 |
Asia Pacific |  |  | 32,203 |  |  |  | 57,268 |  |  |  | 116,508 |  |  |  | - |  |  |  | 205,979 |
Other |  |  | 43,207 |  |  |  | 64,797 |  |  |  | 1,222 |  |  |  | - |  |  |  | 109,226 |
Total revenue from external customers |  | $ | 682,705 |  |  | $ | 522,051 |  |  | $ | 118,178 |  |  | $ | - |  |  | $ | 1,322,934 |
Long-lived assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 251,822 |  |  | $ | 220,723 |  |  | $ | - |  |  | $ | 80,128 |  |  | $ | 552,673 |
Europe |  |  | 102,631 |  |  |  | 242,311 |  |  |  | - |  |  |  | - |  |  |  | 344,942 |
Asia Pacific |  |  | 1,017 |  |  |  | 3,758 |  |  |  | 31,007 |  |  |  | - |  |  |  | 35,782 |
Other |  |  | 504 |  |  |  | 18,037 |  |  |  | - |  |  |  | - |  |  |  | 18,541 |
Total long-lived assets |  | $ | 355,974 |  |  | $ | 484,829 |  |  | $ | 31,007 |  |  | $ | 80,128 |  |  | $ | 951,938 |
2018: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 477,083 |  |  | $ | 245,649 |  |  | $ | - |  |  | $ | - |  |  | $ | 722,732 |
Europe |  |  | 173,562 |  |  |  | 168,340 |  |  |  | 155 |  |  |  | - |  |  |  | 342,057 |
Asia Pacific |  |  | 31,506 |  |  |  | 59,548 |  |  |  | 121,975 |  |  |  | - |  |  |  | 213,029 |
Other |  |  | 41,038 |  |  |  | 66,962 |  |  |  | 997 |  |  |  | - |  |  |  | 108,997 |
Total revenue from external customers |  | $ | 723,189 |  |  | $ | 540,499 |  |  | $ | 123,127 |  |  | $ | - |  |  | $ | 1,386,815 |
Long-lived assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 255,131 |  |  | $ | 230,187 |  |  | $ | - |  |  | $ | 76,996 |  |  | $ | 562,314 |
Europe |  |  | 125,157 |  |  |  | 265,688 |  |  |  | - |  |  |  | - |  |  |  | 390,845 |
Asia Pacific |  |  | 1,061 |  |  |  | 3,319 |  |  |  | 27,872 |  |  |  | - |  |  |  | 32,252 |
Other |  |  | 277 |  |  |  | 16,387 |  |  |  | - |  |  |  | - |  |  |  | 16,664 |
Total long-lived assets |  | $ | 381,626 |  |  | $ | 515,581 |  |  | $ | 27,872 |  |  | $ | 76,996 |  |  | $ | 1,002,075 |
Sales in the United States, based on the final country of destination of the Company’s products, were $614.3 million, $575.2 million, and $586.2 million, in 2020, 2019, and 2018, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $518.2 million, $471.8 million, and $484.9 million, at December 31, 2020, 2019, and 2018, respectively. Product Information 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 and 2018 have been restated to reflect these changes. The Company’s revenue summarized by product portfolio is as follows:
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
2020: |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 399,331 |  |  | $ | - |  |  | $ | - |  |  | $ | 399,331 |
Natural Ingredients |  |  | 243,161 |  |  |  | - |  |  |  | - |  |  |  | 243,161 |
Fragrances |  |  | 85,354 |  |  |  | - |  |  |  | - |  |  |  | 85,354 |
Yogurt Fruit Preparations |  |  | 14,189 |  |  |  | - |  |  |  | - |  |  |  | 14,189 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 346,269 |  |  |  | - |  |  |  | 346,269 |
Personal Care |  |  | - |  |  |  | 141,331 |  |  |  | - |  |  |  | 141,331 |
Inks |  |  | - |  |  |  | 13,418 |  |  |  | - |  |  |  | 13,418 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 121,227 |  |  |  | 121,227 |
Intersegment Revenue |  |  | (17,552 | ) |  |  | (14,482 | ) |  |  | (245 | ) |  |  | (32,279 | )
Total revenue from external customers |  | $ | 724,483 |  |  | $ | 486,536 |  |  | $ | 120,982 |  |  | $ | 1,332,001 |
2019: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 378,967 |  |  | $ | - |  |  | $ | - |  |  | $ | 378,967 |
Natural Ingredients |  |  | 214,027 |  |  |  | - |  |  |  | - |  |  |  | 214,027 |
Fragrances |  |  | 86,399 |  |  |  | - |  |  |  | - |  |  |  | 86,399 |
Yogurt Fruit Preparations |  |  | 20,963 |  |  |  | - |  |  |  | - |  |  |  | 20,963 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 340,327 |  |  |  | - |  |  |  | 340,327 |
Personal Care |  |  | - |  |  |  | 159,640 |  |  |  | - |  |  |  | 159,640 |
Inks |  |  | - |  |  |  | 35,192 |  |  |  | - |  |  |  | 35,192 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 118,248 |  |  |  | 118,248 |
Intersegment Revenue |  |  | (17,651 | ) |  |  | (13,108 | ) |  |  | (70 | ) |  |  | (30,829 | )
Total revenue from external customers |  | $ | 682,705 |  |  | $ | 522,051 |  |  | $ | 118,178 |  |  | $ | 1,322,934 |
2018: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 403,762 |  |  | $ | - |  |  | $ | - |  |  | $ | 403,762 |
Natural Ingredients |  |  | 224,280 |  |  |  | - |  |  |  | - |  |  |  | 224,280 |
Fragrances |  |  | 91,786 |  |  |  | - |  |  |  | - |  |  |  | 91,786 |
Yogurt Fruit Preparations |  |  | 27,104 |  |  |  | - |  |  |  | - |  |  |  | 27,104 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 332,878 |  |  |  | - |  |  |  | 332,878 |
Personal Care |  |  | - |  |  |  | 179,485 |  |  |  | - |  |  |  | 179,485 |
Inks |  |  | - |  |  |  | 41,641 |  |  |  | - |  |  |  | 41,641 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 123,164 |  |  |  | 123,164 |
Intersegment Revenue |  |  | (23,743 | ) |  |  | (13,505 | ) |  |  | (37 | ) |  |  | (37,285 | )
Total revenue from external customers |  | $ | 723,189 |  |  | $ | 540,499 |  |  | $ | 123,127 |  |  | $ | 1,386,815 |

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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/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
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