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Segment Information | 9 Months Ended
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Sep. 30, 2021
Segment Information [Abstract] |
Segment Information |
9. | Segment Information
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, 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. The Company determines its operating segments based on information utilized by its chief operating decision maker to allocate resources and assess performance. The Company’s three reportable segments are the 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; and specialty inks and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color and flavor products for the Asia Pacific countries. The Company’s corporate expenses, divestiture & other related costs, share-based compensation, operational improvement plan expenses, and other costs are included in the “Corporate & Other” category. Divestiture & other related costs and operational improvement plan costs, for the three and nine months ended September 30, 2021 and 2020, are further described in Note 2, Divestitures, and Note 3, Operational Improvement Plan, and are included in the operating income (loss) results in Corporate & Other below. In addition, the Company’s corporate expenses and share-based compensation are included in Corporate & Other. 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, 2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 175,690 |  |  | $ | 135,395 |  |  | $ | 33,202 |  |  | $ | - |  |  | $ | 344,287 |
Intersegment revenue |  |  | 5,977 |  |  |  | 3,844 |  |  |  | 240 |  |  |  | - |  |  |  | 10,061 |
Total revenue |  | $ | 181,667 |  |  | $ | 139,239 |  |  | $ | 33,442 |  |  | $ | - |  |  | $ | 354,348 |
Operating income (loss) |  | $ | 25,164 |  |  | $ | 27,253 |  |  | $ | 6,601 |  |  | $ | (12,060 | ) |  | $ | 46,958 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,037 |  |  |  | 3,037 |
Earnings (loss) before income taxes |  | $ | 25,164 |  |  | $ | 27,253 |  |  | $ | 6,601 |  |  | $ | (15,097 | ) |  | $ | 43,921 |
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 |
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Corporate & Other |  |  | Consolidated |
Nine months ended September 30, 2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 545,050 |  |  | $ | 395,426 |  |  | $ | 99,340 |  |  | $ | - |  |  | $ | 1,039,816 |
Intersegment revenue |  |  | 16,929 |  |  |  | 12,740 |  |  |  | 259 |  |  |  | - |  |  |  | 29,928 |
Total revenue |  | $ | 561,979 |  |  | $ | 408,166 |  |  | $ | 99,599 |  |  | $ | - |  |  | $ | 1,069,744 |
Operating income (loss) |  | $ | 76,718 |  |  | $ | 79,462 |  |  | $ | 19,146 |  |  | $ | (45,718 | ) |  | $ | 129,608 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 9,792 |  |  |  | 9,792 |
Earnings (loss) before income taxes |  | $ | 76,718 |  |  | $ | 79,462 |  |  | $ | 19,146 |  |  | $ | (55,510 | ) |  | $ | 119,816 |
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 |
Product Lines
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
Three months ended September 30, 2021: |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 116,140 |  |  | $ | - |  |  | $ | - |  |  | $ | 116,140 |
Natural Ingredients |  |  | 64,215 |  |  |  | - |  |  |  | - |  |  |  | 64,215 |
Yogurt Fruit Preparations |  |  | 1,312 |  |  |  | - |  |  |  | - |  |  |  | 1,312 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 99,688 |  |  |  | - |  |  |  | 99,688 |
Personal Care |  |  | - |  |  |  | 39,241 |  |  |  | - |  |  |  | 39,241 |
Inks |  |  | - |  |  |  | 310 |  |  |  | - |  |  |  | 310 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 33,442 |  |  |  | 33,442 |
Intersegment Revenue |  |  | (5,977 | ) |  |  | (3,844 | ) |  |  | (240 | ) |  |  | (10,061 | )
Total revenue from external customers |  | $ | 175,690 |  |  | $ | 135,395 |  |  | $ | 33,202 |  |  | $ | 344,287 |
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 |
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
Nine months ended September 30, 2021: |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 347,642 |  |  | $ | - |  |  | $ | - |  |  | $ | 347,642 |
Natural Ingredients |  |  | 186,721 |  |  |  | - |  |  |  | - |  |  |  | 186,721 |
Fragrances |  |  | 22,739 |  |  |  | - |  |  |  | - |  |  |  | 22,739 |
Yogurt Fruit Preparations |  |  | 4,877 |  |  |  | - |  |  |  | - |  |  |  | 4,877 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 287,565 |  |  |  | - |  |  |  | 287,565 |
Personal Care |  |  | - |  |  |  | 119,079 |  |  |  | - |  |  |  | 119,079 |
Inks |  |  | - |  |  |  | 1,522 |  |  |  | - |  |  |  | 1,522 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 99,599 |  |  |  | 99,599 |
Intersegment Revenue |  |  | (16,929 | ) |  |  | (12,740 | ) |  |  | (259 | ) |  |  | (29,928 | )
Total revenue from external customers |  | $ | 545,050 |  |  | $ | 395,426 |  |  | $ | 99,340 |  |  | $ | 1,039,816 |
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 |
Geographic Markets
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
Three months ended September 30, 2021: |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 131,855 |  |  | $ | 67,830 |  |  | $ | 5 |  |  | $ | 199,690 |
Europe |  |  | 30,241 |  |  |  | 37,004 |  |  |  | 30 |  |  |  | 67,275 |
Asia Pacific |  |  | 6,410 |  |  |  | 14,451 |  |  |  | 32,511 |  |  |  | 53,372 |
Other |  |  | 7,184 |  |  |  | 16,110 |  |  |  | 656 |  |  |  | 23,950 |
Total revenue from external customers |  | $ | 175,690 |  |  | $ | 135,395 |  |  | $ | 33,202 |  |  | $ | 344,287 |
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 |
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
Nine months ended September 30, 2021: |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 390,163 |  |  | $ | 188,764 |  |  | $ | 67 |  |  | $ | 578,994 |
Europe |  |  | 107,463 |  |  |  | 112,188 |  |  |  | 106 |  |  |  | 219,757 |
Asia Pacific |  |  | 24,288 |  |  |  | 47,832 |  |  |  | 96,863 |  |  |  | 168,983 |
Other |  |  | 23,136 |  |  |  | 46,642 |  |  |  | 2,304 |  |  |  | 72,082 |
Total revenue from external customers |  | $ | 545,050 |  |  | $ | 395,426 |  |  | $ | 99,340 |  |  | $ | 1,039,816 |
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 |

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