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Segment and Geographic Information | 12 Months Ended
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Dec. 31, 2022
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 and income, share-based compensation, restructuring and other charges including operational improvement plan costs and income, the one-time COVID-19 employee payment in 2020, 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 accounts receivables from the securitization program, investments, deferred tax assets, and fixed assets. 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 and income, share-based compensation, and restructuring and other charges including operational improvement plan costs and income, 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, extracts, and essential oils 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 personal care; and technical colors for industrial applications. The Asia Pacific segment is managed on a geographic basis and produces and distributes color, flavor, and essential oils products for the Asia Pacific countries. The Company’s corporate expenses, divestiture & other related costs and income, share-based compensation, operational improvement plan expenses and income, the one-time COVID-19 employee payment, and other costs are included in the “Corporate & Other” category. Divestiture & other related costs and income and restructuring and other costs, including the operational improvement plan costs and income, for the years ended December 31, 2022, 2021, and 2020, 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. 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 |
2022: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 710,592 |  |  | $ | 583,379 |  |  | $ | 143,068 |  |  | $ | — |  |  | $ | 1,437,039 |
Intersegment revenue |  |  | 27,411 |  |  |  | 20,638 |  |  |  | 513 |  |  |  | — |  |  |  | 48,562 |
Total revenue |  |  | 738,003 |  |  |  | 604,017 |  |  |  | 143,581 |  |  |  | — |  |  |  | 1,485,601 |
Operating income (loss) |  |  | 105,424 |  |  |  | 114,619 |  |  |  | 29,492 |  |  |  | (52,784 | ) |  |  | 196,751 |
Interest expense |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 14,547 |  |  |  | 14,547 |
Earnings (loss) before income taxes |  |  | 105,424 |  |  |  | 114,619 |  |  |  | 29,492 |  |  |  | (67,331 | ) |  |  | 182,204 |
Assets |  |  | 738,181 |  |  |  | 849,425 |  |  |  | 115,132 |  |  |  | 278,876 |  |  |  | 1,981,614 |
Capital expenditures |  |  | 40,805 |  |  |  | 30,300 |  |  |  | 2,164 |  |  |  | 6,053 |  |  |  | 79,322 |
Depreciation and amortization |  |  | 26,660 |  |  |  | 20,174 |  |  |  | 2,489 |  |  |  | 3,144 |  |  |  | 52,467 |
2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 717,688 |  |  | $ | 527,626 |  |  | $ | 134,950 |  |  | $ | — |  |  | $ | 1,380,264 |
Intersegment revenue |  |  | 21,739 |  |  |  | 17,644 |  |  |  | 398 |  |  |  | — |  |  |  | 39,781 |
Total revenue |  |  | 739,427 |  |  |  | 545,270 |  |  |  | 135,348 |  |  |  | — |  |  |  | 1,420,045 |
Operating income (loss) |  |  | 98,660 |  |  |  | 103,575 |  |  |  | 26,330 |  |  |  | (58,537 | ) |  |  | 170,028 |
Interest expense |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 12,544 |  |  |  | 12,544 |
Earnings (loss) before income taxes |  |  | 98,660 |  |  |  | 103,575 |  |  |  | 26,330 |  |  |  | (71,081 | ) |  |  | 157,484 |
Assets |  |  | 639,992 |  |  |  | 738,139 |  |  |  | 108,126 |  |  |  | 259,236 |  |  |  | 1,745,493 |
Capital expenditures |  |  | 35,846 |  |  |  | 16,806 |  |  |  | 2,813 |  |  |  | 5,323 |  |  |  | 60,788 |
Depreciation and amortization |  |  | 26,020 |  |  |  | 20,572 |  |  |  | 2,748 |  |  |  | 2,711 |  |  |  | 52,051 |
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 |
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 |
2022: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 541,120 |  |  | $ | 304,778 |  |  | $ | 120 |  |  | $ | — |  |  | $ | 846,018 |
Europe |  |  | 115,925 |  |  |  | 151,437 |  |  |  | 213 |  |  |  | — |  |  |  | 267,575 |
Asia Pacific |  |  | 29,092 |  |  |  | 61,064 |  |  |  | 139,134 |  |  |  | — |  |  |  | 229,290 |
Other |  |  | 24,455 |  |  |  | 66,100 |  |  |  | 3,601 |  |  |  | — |  |  |  | 94,156 |
Total revenue from external customers |  | $ | 710,592 |  |  | $ | 583,379 |  |  | $ | 143,068 |  |  | $ | — |  |  | $ | 1,437,039 |
Long-lived assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 286,497 |  |  | $ | 271,075 |  |  | $ | — |  |  | $ | 107,784 |  |  | $ | 665,356 |
Europe |  |  | 86,248 |  |  |  | 236,719 |  |  |  | — |  |  |  | 24 |  |  |  | 322,991 |
Asia Pacific |  |  | 237 |  |  |  | 3,796 |  |  |  | 29,915 |  |  |  | — |  |  |  | 33,948 |
Other |  |  | 389 |  |  |  | 24,150 |  |  |  | — |  |  |  | — |  |  |  | 24,539 |
Total long-lived assets |  | $ | 373,371 |  |  | $ | 535,740 |  |  | $ | 29,915 |  |  | $ | 107,808 |  |  | $ | 1,046,834 |
2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 523,960 |  |  | $ | 263,031 |  |  | $ | 116 |  |  | $ | — |  |  | $ | 787,107 |
Europe |  |  | 135,348 |  |  |  | 142,741 |  |  |  | 140 |  |  |  | — |  |  |  | 278,229 |
Asia Pacific |  |  | 29,880 |  |  |  | 59,914 |  |  |  | 131,772 |  |  |  | — |  |  |  | 221,566 |
Other |  |  | 28,500 |  |  |  | 61,940 |  |  |  | 2,922 |  |  |  | — |  |  |  | 93,362 |
Total revenue from external customers |  | $ | 717,688 |  |  | $ | 527,626 |  |  | $ | 134,950 |  |  | $ | — |  |  | $ | 1,380,264 |
Long-lived assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 268,934 |  |  | $ | 250,682 |  |  | $ | — |  |  | $ | 105,150 |  |  | $ | 624,766 |
Europe |  |  | 91,934 |  |  |  | 225,916 |  |  |  | — |  |  |  | 25 |  |  |  | 317,875 |
Asia Pacific |  |  | 275 |  |  |  | 4,513 |  |  |  | 32,901 |  |  |  | — |  |  |  | 37,689 |
Other |  |  | 568 |  |  |  | 23,442 |  |  |  | — |  |  |  | — |  |  |  | 24,010 |
Total long-lived assets |  | $ | 361,711 |  |  | $ | 504,553 |  |  | $ | 32,901 |  |  | $ | 105,175 |  |  | $ | 1,004,340 |
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 |
Sales in the United States, based on the final country of destination of the Company’s products, were $711.1 million, $658.0 million, and $614.3 million, in 2022, 2021, and 2020, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $586.8 million, $550.3 million, and $518.2 million, at December 31, 2022, 2021, and 2020, respectively. Product Information The Company’s revenue summarized by product portfolio is as follows:
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
2022: |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 498,055 |  |  | $ | — |  |  | $ | — |  |  | $ | 498,055 |
Natural Ingredients |  |  | 239,948 |  |  |  | — |  |  |  | — |  |  |  | 239,948 |
Food & Pharmaceutical Colors |  |  | — |  |  |  | 437,065 |  |  |  | — |  |  |  | 437,065 |
Personal Care |  |  | — |  |  |  | 165,335 |  |  |  | — |  |  |  | 165,335 |
Inks |  |  | — |  |  |  | 1,617 |  |  |  | — |  |  |  | 1,617 |
Asia Pacific |  |  | — |  |  |  | — |  |  |  | 143,581 |  |  |  | 143,581 |
Intersegment Revenue |  |  | (27,411 | ) |  |  | (20,638 | ) |  |  | (513 | ) |  |  | (48,562 | )
Total revenue from external customers |  | $ | 710,592 |  |  | $ | 583,379 |  |  | $ | 143,068 |  |  | $ | 1,437,039 |
2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 455,818 |  |  | $ | — |  |  | $ | — |  |  | $ | 455,818 |
Natural Ingredients |  |  | 255,772 |  |  |  | — |  |  |  | — |  |  |  | 255,772 |
Fragrances |  |  | 22,739 |  |  |  | — |  |  |  | — |  |  |  | 22,739 |
Yogurt Fruit Preparations |  |  | 5,098 |  |  |  | — |  |  |  | — |  |  |  | 5,098 |
Food & Pharmaceutical Colors |  |  | — |  |  |  | 385,069 |  |  |  | — |  |  |  | 385,069 |
Personal Care |  |  | — |  |  |  | 158,237 |  |  |  | — |  |  |  | 158,237 |
Inks |  |  | — |  |  |  | 1,964 |  |  |  | — |  |  |  | 1,964 |
Asia Pacific |  |  | — |  |  |  | — |  |  |  | 135,348 |  |  |  | 135,348 |
Intersegment Revenue |  |  | (21,739 | ) |  |  | (17,644 | ) |  |  | (398 | ) |  |  | (39,781 | )
Total revenue from external customers |  | $ | 717,688 |  |  | $ | 527,626 |  |  | $ | 134,950 |  |  | $ | 1,380,264 |
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 |

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