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Segment Information | 9 Months Ended
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Sep. 30, 2024
Segment Information [Abstract] |
Segment Information |
7. | Segment Information
The Company evaluates performance based on operating income before share-based compensation; restructuring and other charges, including Portfolio Optimization 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, extracts, and essential oils products that impart a desired taste, texture, aroma, or other characteristics to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, such as colors, flavors, coatings, and nutraceutical ingredients; 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 in the Asia Pacific countries. The Company’s corporate expenses, share-based compensation, and restructuring and other charges, including Portfolio Optimization Plan costs, are included in the “Corporate & Other” category. 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, 2024: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 194,222 |  |  | $ | 156,672 |  |  | $ | 41,719 |  |  | $ | - |  |  | $ | 392,613 |
Intersegment revenue |  |  | 9,057 |  |  |  | 5,408 |  |  |  | 59 |  |  |  | - |  |  |  | 14,524 |
Total revenue |  | $ | 203,279 |  |  | $ | 162,080 |  |  | $ | 41,778 |  |  | $ | - |  |  | $ | 407,137 |
Operating income (loss) |  | $ | 25,862 |  |  | $ | 29,806 |  |  | $ | 9,307 |  |  | $ | (14,455 | ) |  | $ | 50,520 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 7,696 |  |  |  | 7,696 |
Earnings (loss) before income taxes |  | $ | 25,862 |  |  | $ | 29,806 |  |  | $ | 9,307 |  |  | $ | (22,151 | ) |  | $ | 42,824 |
Three months ended September 30, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 185,029 |  |  | $ | 142,026 |  |  | $ | 36,774 |  |  | $ | - |  |  | $ | 363,829 |
Intersegment revenue |  |  | 5,968 |  |  |  | 2,913 |  |  |  | - |  |  |  | - |  |  |  | 8,881 |
Total revenue |  | $ | 190,997 |  |  | $ | 144,939 |  |  | $ | 36,774 |  |  | $ | - |  |  | $ | 372,710 |
Operating income (loss) |  | $ | 23,078 |  |  | $ | 22,925 |  |  | $ | 8,095 |  |  | $ | (9,567 | ) |  | $ | 44,531 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6,294 |  |  |  | 6,294 |
Earnings (loss) before income taxes |  | $ | 23,078 |  |  | $ | 22,925 |  |  | $ | 8,095 |  |  | $ | (15,861 | ) |  | $ | 38,237 |
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Corporate & Other |  |  | Consolidated |
Nine months ended September 30, 2024: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 584,264 |  |  | $ | 475,961 |  |  | $ | 120,583 |  |  | $ | - |  |  | $ | 1,180,808 |
Intersegment revenue |  |  | 21,320 |  |  |  | 13,844 |  |  |  | 81 |  |  |  | - |  |  |  | 35,245 |
Total revenue |  | $ | 605,584 |  |  | $ | 489,805 |  |  | $ | 120,664 |  |  | $ | - |  |  | $ | 1,216,053 |
Operating income (loss) |  | $ | 75,749 |  |  | $ | 92,987 |  |  | $ | 25,963 |  |  | $ | (45,116 | ) |  | $ | 149,583 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 22,394 |  |  |  | 22,394 |
Earnings (loss) before income taxes |  | $ | 75,749 |  |  | $ | 92,987 |  |  | $ | 25,963 |  |  | $ | (67,510 | ) |  | $ | 127,189 |
Nine months ended September 30, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 538,753 |  |  | $ | 455,507 |  |  | $ | 112,888 |  |  | $ | - |  |  | $ | 1,107,148 |
Intersegment revenue |  |  | 19,380 |  |  |  | 11,056 |  |  |  | - |  |  |  | - |  |  |  | 30,436 |
Total revenue |  | $ | 558,133 |  |  | $ | 466,563 |  |  | $ | 112,888 |  |  | $ | - |  |  | $ | 1,137,584 |
Operating income (loss) |  | $ | 69,714 |  |  | $ | 84,027 |  |  | $ | 24,911 |  |  | $ | (31,692 | ) |  | $ | 146,960 |
Interest expense |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 18,648 |  |  |  | 18,648 |
Earnings (loss) before income taxes |  | $ | 69,714 |  |  | $ | 84,027 |  |  | $ | 24,911 |  |  | $ | (50,340 | ) |  | $ | 128,312 |
Product Lines
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
Three months ended September 30, 2024: |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 128,990 |  |  | $ | - |  |  | $ | - |  |  | $ | 128,990 |
Natural Ingredients |  |  | 74,289 |  |  |  | - |  |  |  | - |  |  |  | 74,289 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 118,883 |  |  |  | - |  |  |  | 118,883 |
Personal Care |  |  | - |  |  |  | 43,197 |  |  |  | - |  |  |  | 43,197 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 41,778 |  |  |  | 41,778 |
Intersegment Revenue |  |  | (9,057 | ) |  |  | (5,408 | ) |  |  | (59 | ) |  |  | (14,524 | )
Total revenue from external customers |  | $ | 194,222 |  |  | $ | 156,672 |  |  | $ | 41,719 |  |  | $ | 392,613 |
Three months ended September 30, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 124,697 |  |  | $ | - |  |  | $ | - |  |  | $ | 124,697 |
Natural Ingredients |  |  | 66,300 |  |  |  | - |  |  |  | - |  |  |  | 66,300 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 107,723 |  |  |  | - |  |  |  | 107,723 |
Personal Care |  |  | - |  |  |  | 37,216 |  |  |  | - |  |  |  | 37,216 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 36,774 |  |  |  | 36,774 |
Intersegment Revenue |  |  | (5,968 | ) |  |  | (2,913 | ) |  |  | - |  |  |  | (8,881 | )
Total revenue from external customers |  | $ | 185,029 |  |  | $ | 142,026 |  |  | $ | 36,774 |  |  | $ | 363,829 |
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
Nine months ended September 30, 2024: |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 388,544 |  |  | $ | - |  |  | $ | - |  |  | $ | 388,544 |
Natural Ingredients |  |  | 217,040 |  |  |  | - |  |  |  | - |  |  |  | 217,040 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 361,268 |  |  |  | - |  |  |  | 361,268 |
Personal Care |  |  | - |  |  |  | 128,537 |  |  |  | - |  |  |  | 128,537 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 120,664 |  |  |  | 120,664 |
Intersegment Revenue |  |  | (21,320 | ) |  |  | (13,844 | ) |  |  | (81 | ) |  |  | (35,245 | )
Total revenue from external customers |  | $ | 584,264 |  |  | $ | 475,961 |  |  | $ | 120,583 |  |  | $ | 1,180,808 |
Nine months ended September 30, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Flavors, Extracts & Flavor Ingredients |  | $ | 383,210 |  |  | $ | - |  |  | $ | - |  |  | $ | 383,210 |
Natural Ingredients |  |  | 174,923 |  |  |  | - |  |  |  | - |  |  |  | 174,923 |
Food & Pharmaceutical Colors |  |  | - |  |  |  | 346,635 |  |  |  | - |  |  |  | 346,635 |
Personal Care |  |  | - |  |  |  | 119,928 |  |  |  | - |  |  |  | 119,928 |
Asia Pacific |  |  | - |  |  |  | - |  |  |  | 112,888 |  |  |  | 112,888 |
Intersegment Revenue |  |  | (19,380 | ) |  |  | (11,056 | ) |  |  | - |  |  |  | (30,436 | )
Total revenue from external customers |  | $ | 538,753 |  |  | $ | 455,507 |  |  | $ | 112,888 |  |  | $ | 1,107,148 |
Geographic Markets
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
Three months ended September 30, 2024: |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 152,753 |  |  | $ | 78,187 |  |  | $ | 15 |  |  | $ | 230,955 |
Europe |  |  | 30,908 |  |  |  | 37,089 |  |  |  | 32 |  |  |  | 68,029 |
Asia Pacific |  |  | 4,500 |  |  |  | 16,477 |  |  |  | 40,101 |  |  |  | 61,078 |
Other |  |  | 6,061 |  |  |  | 24,919 |  |  |  | 1,571 |  |  |  | 32,551 |
Total revenue from external customers |  | $ | 194,222 |  |  | $ | 156,672 |  |  | $ | 41,719 |  |  | $ | 392,613 |
Three months ended September 30, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 147,992 |  |  | $ | 75,417 |  |  | $ | - |  |  | $ | 223,409 |
Europe |  |  | 25,298 |  |  |  | 36,816 |  |  |  | 57 |  |  |  | 62,171 |
Asia Pacific |  |  | 4,881 |  |  |  | 13,344 |  |  |  | 35,791 |  |  |  | 54,016 |
Other |  |  | 6,858 |  |  |  | 16,449 |  |  |  | 926 |  |  |  | 24,233 |
Total revenue from external customers |  | $ | 185,029 |  |  | $ | 142,026 |  |  | $ | 36,774 |  |  | $ | 363,829 |
(In thousands) |  | Flavors & Extracts |  |  | Color |  |  | Asia Pacific |  |  | Consolidated |
Nine months ended September 30, 2024: |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 456,355 |  |  | $ | 235,842 |  |  | $ | 97 |  |  | $ | 692,294 |
Europe |  |  | 95,129 |  |  |  | 129,076 |  |  |  | 138 |  |  |  | 224,343 |
Asia Pacific |  |  | 13,309 |  |  |  | 49,544 |  |  |  | 115,803 |  |  |  | 178,656 |
Other |  |  | 19,471 |  |  |  | 61,499 |  |  |  | 4,545 |  |  |  | 85,515 |
Total revenue from external customers |  | $ | 584,264 |  |  | $ | 475,961 |  |  | $ | 120,583 |  |  | $ | 1,180,808 |
Nine months ended September 30, 2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America |  | $ | 417,095 |  |  | $ | 231,348 |  |  | $ | 124 |  |  | $ | 648,567 |
Europe |  |  | 86,092 |  |  |  | 124,465 |  |  |  | 184 |  |  |  | 210,741 |
Asia Pacific |  |  | 16,372 |  |  |  | 47,801 |  |  |  | 110,380 |  |  |  | 174,553 |
Other |  |  | 19,194 |  |  |  | 51,893 |  |  |  | 2,200 |  |  |  | 73,287 |
Total revenue from external customers |  | $ | 538,753 |  |  | $ | 455,507 |  |  | $ | 112,888 |  |  | $ | 1,107,148 |

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