Segment and Geographic Information

12 Months Ended

Dec. 31, 2013

Segment and Geographic Information [Abstract]

Segment and Geographic Information

10. 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 of the respective business units before restructuring charges, interest expense and income taxes. Total revenue and 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. Corporate & Other revenue consists primarily of flavor, fragrances and color products sold by the Asia Pacific Group, China Group and Flavors Central & South America Group.

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 property and investments.

Segment InformationThe Company determines its operating segments based on information utilized by the chief operating decision maker to allocate resources and assess performance. The Company’s reportable segments consist of Flavors & Fragrances and Color and are both managed on a products and services basis. The Company’s Flavors & Fragrances segment produces flavor and fragrance products that impart a desired taste, texture, aroma or other characteristic to a broad range of consumer and other products. The Color segment produces natural and synthetic color systems for pharmaceuticals, foods and beverages; colors and formulations for cosmetics; and technical colors for industrial applications and digital imaging. Three additional segments, Asia Pacific, China and Flavors Central & South America are managed on a geographic basis and included in Corporate & Other.

Beginning in the first quarter of 2013, the results of operations for the Company’s cosmetic and pharmaceutical businesses in Asia Pacific and China, previously reported in the Corporate & Other segment, are reported in the Color segment. Results for 2012 and 2011 have been restated to reflect this change.

	Flavors &				Corporate
(in thousands)	Fragrances		Color		& Other			Consolidated
2013
Revenue from external customers	$	845,672	$	473,281	$	148,597		$	1,467,550
Intersegment revenue		35,626		20,691		1,847			58,164
Total revenue		881,298		493,972		150,444			1,525,714
Operating income (loss)		122,410		103,601		(53,649	)		172,362
Interest expense		—		—		16,147			16,147
Earnings (loss) before income taxes		122,410		103,601		(69,796	)		156,215
Assets		897,216		790,531		182,987			1,870,734
Capital expenditures		59,040		39,273		5,933			104,246
Depreciation and amortization		27,458		18,664		5,894			52,016
2012
Revenue from external customers	$	837,549	$	477,385	$	144,116		$	1,459,050
Intersegment revenue		37,732		21,825		1,464			61,021
Total revenue		875,281		499,210		145,580			1,520,071
Operating income (loss)		122,997		96,406		(28,195	)		191,208
Interest expense		—		—		16,901			16,901
Earnings (loss) before income taxes		122,997		96,406		(45,096	)		174,307
Assets		860,395		744,200		172,048			1,776,643
Capital expenditures		49,781		46,003		8,022			103,806
Depreciation and amortization		27,021		15,499		5,832			48,352
2011
Revenue from external customers	$	821,933	$	476,958	$	131,898		$	1,430,789
Intersegment revenue		35,527		19,833		1,728			57,088
Total revenue		857,460		496,791		133,626			1,487,877
Operating income (loss)		129,436		92,518		(31,131	)		190,823
Interest expense		—		—		19,439			19,439
Earnings (loss) before income taxes		129,436		92,518		(50,570	)		171,384
Assets		803,844		699,017		151,303			1,654,164
Capital expenditures		34,999		30,121		7,080			72,200
Depreciation and amortization		26,743		14,125		5,231			46,099

Geographic Information The Company has manufacturing facilities or sales offices in North America, South America, Europe, Asia, Australia and Africa.

(in thousands)	2013		2012		2011
Revenue from external customers:
North America	$	784,658	$	785,919	$	737,154
Europe		382,464		371,658		405,312
Asia Pacific		191,343		199,849		190,404
Other		109,085		101,624		97,919
Consolidated	$	1,467,550	$	1,459,050	$	1,430,789
Long-lived assets:
North America	$	531,005	$	504,483	$	444,656
Europe		506,352		472,865		456,248
Asia Pacific		32,148		35,891		35,151
Other		11,404		12,050		11,239
Consolidated	$	1,080,909	$	1,025,289	$	947,294

Sales in the United States, based on the final country of destination of the Company’s products, were $592.6 million, $598.5 million and $561.9 million in 2013, 2012 and 2011, respectively. No other country of destination exceeded 10% of consolidated sales. Total long-lived assets in the United States amounted to $389.7 million, $360.1 million and $345.1 million at December 31, 2013, 2012 and 2011, respectively.

Product Information The Company’s revenue summarized by product portfolio is as follows:

(in thousands)	2013			2012			2011
Traditional Flavors & Fragrances	$	744,934		$	725,165		$	710,450
Natural Ingredients		244,155			252,941			240,844
Food & Beverage Colors		307,301			310,739			317,880
Non-Food Colors		229,324			231,226			218,703
Intersegment Revenue		(58,164	)		(61,021	)		(57,088	)
Consolidated	$	1,467,550		$	1,459,050		$	1,430,789