UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-07626

Sensient Technologies Corporation

(Exact name of registrant as specified in its charter)

Wisconsin	39-0561070
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

777 EAST WISCONSIN AVENUE, MILWAUKEE, WISCONSIN 53202-5304

(Address of principal executive offices)

Registrant’s telephone number, including area code: (414) 271-6755

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.10 per share	SXT	New York Stock Exchange LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days.Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer   ☒	Accelerated Filer ☐	Non-Accelerated Filer ☐
Smaller Reporting Company ☐	Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐    No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at October 26, 2022
Common Stock, par value $0.10 per share	42,037,685

SENSIENT TECHNOLOGIES CORPORATION

INDEX

			Page No.
PART I. FINANCIAL INFORMATION:
	Item 1.	Financial Statements:
		Consolidated Statements of Earnings ‑ Three and Nine Months Ended September 30, 2022 and 2021.	1
		Consolidated Condensed Statements of Comprehensive Income ‑ Three and Nine Months Ended September 30, 2022 and 2021.	2
		Consolidated Balance Sheets - September 30, 2022 and December 31, 2021.	3
		Consolidated Statements of Cash Flows ‑ Nine Months Ended September 30, 2022 and 2021.	4
		Consolidated Statements of Shareholders’ Equity ‑ Three and Nine Months Ended September 30, 2022 and 2021.	5
		Notes to Consolidated Condensed Financial Statements.	6
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	16
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	23
	Item 4.	Controls and Procedures.	23
PART II. OTHER INFORMATION:
	Item 1.	Legal Proceedings.	23
	Item 1A.	Risk Factors.	23
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	23
	Item 6.	Exhibits.	23
		Exhibit Index.	24
		Signatures.	25

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands except per share amounts)

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenue	$	361,076	$	344,287	$	1,088,303	$	1,039,816
Cost of products sold		239,318		229,216		710,696		697,538
Selling and administrative expenses		74,265		68,113		222,081		212,670
Operating income		47,493		46,958		155,526		129,608
Interest expense		3,672		3,037		9,748		9,792
Earnings before income taxes		43,821		43,921		145,778		119,816
Income taxes		7,773		10,009		34,012		28,300
Net earnings	$	36,048	$	33,912	$	111,766	$	91,516
Weighted average number of common shares outstanding:
Basic		41,896		42,024		41,885		42,140
Diluted		42,242		42,206		42,199		42,287
Earnings per common share:
Basic	$	0.86	$	0.81	$	2.67	$	2.17
Diluted	$	0.85	$	0.80	$	2.65	$	2.16
Dividends declared per common share	$	0.41	$	0.39	$	1.23	$	1.17

See accompanying notes to consolidated condensed financial statements.

1

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Comprehensive income	$	8,997	$	18,680	$	56,171	$	79,454

See accompanying notes to consolidated condensed financial statements.

2

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands)

	September 30, 2022 (Unaudited)			December 31, 2021
Assets
Current Assets:
Cash and cash equivalents	$	46,579		$	25,740
Trade accounts receivable		287,197			261,121
Inventories		501,382			411,635
Prepaid expenses and other current assets		45,582			42,657
Total current assets		880,740			741,153
Other assets		100,277			92,952
Deferred tax assets		12,912			29,901
Intangible assets, net		14,042			14,975
Goodwill		390,798			420,034
Property, Plant, and Equipment:
Land		28,641			31,028
Buildings		304,928			315,207
Machinery and equipment		705,029			715,344
Construction in progress		55,896			32,801
		1,094,494			1,094,380
Less accumulated depreciation		(654,055	)		(647,902	)
		440,439			446,478
Total assets	$	1,839,208		$	1,745,493
Liabilities and Shareholders’ Equity
Current Liabilities:
Trade accounts payable	$	132,904		$	125,519
Accrued salaries, wages, and withholdings from employees		40,918			40,939
Other accrued expenses		54,283			46,292
Income taxes		5,373			11,016
Short-term borrowings		21,947			8,539
Total current liabilities		255,425			232,305
Deferred tax liabilities		16,489			14,349
Other liabilities		37,736			28,829
Accrued employee and retiree benefits		27,854			28,579
Long-term debt		547,190			503,006
Shareholders’ Equity:
Common stock		5,396			5,396
Additional paid-in capital		120,381			111,352
Earnings reinvested in the business		1,690,813			1,630,713
Treasury stock, at cost		(631,853	)		(634,408	)
Accumulated other comprehensive loss		(230,223	)		(174,628	)
Total shareholders’ equity		954,514			938,425
Total liabilities and shareholders’ equity	$	1,839,208		$	1,745,493

See accompanying notes to consolidated condensed financial statements.

3

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Nine Months Ended September 30,
	2022			2021
Cash flows from operating activities:
Net earnings	$	111,766		$	91,516
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization		39,262			38,828
Share-based compensation expense		12,476			6,431
Net loss on assets		283			203
Loss on divestitures and other charges		-			13,774
Deferred income taxes		20,465			3,793
Changes in operating assets and liabilities:
Trade accounts receivable		(39,520	)		(35,290	)
Inventories		(112,021	)		(15,898	)
Prepaid expenses and other assets		(39,598	)		(15,016	)
Accounts payable and other accrued expenses		24,110			24,007
Accrued salaries, wages, and withholdings from employees		1,819			1,763
Income taxes		(4,342	)		(1,155	)
Other liabilities		198			3,192
Net cash provided by operating activities		14,898			116,148
Cash flows from investing activities:
Acquisition of property, plant, and equipment		(51,703	)		(37,608	)
Proceeds from sale of assets		94			201
Proceeds from divestiture of businesses		-			36,790
Acquisition of new business		(1,048	)		(13,875	)
Other investing activities		947			1,348
Net cash used in investing activities		(51,710	)		(13,144	)
Cash flows from financing activities:
Proceeds from additional borrowings		187,715			55,589
Debt payments		(87,657	)		(67,534	)
Purchase of treasury stock		-			(31,467	)
Dividends paid		(51,681	)		(49,468	)
Other financing activities		(2,056	)		(582	)
Net cash provided by (used in) financing activities		46,321			(93,462	)
Effect of exchange rate changes on cash and cash equivalents		11,330			(1,373	)
Net increase in cash and cash equivalents		20,839			8,169
Cash and cash equivalents at beginning of period		25,740			24,770
Cash and cash equivalents at end of period	$	46,579		$	32,939

See accompanying notes to consolidated condensed financial statements.

4

SENSIENT TECHNOLOGIES CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In thousands, except share and per share amounts)

(Unaudited)

	Common		Additional Paid-In		Earnings Reinvested in the			Treasury Stock					Accumulated Other Comprehensive			Total
Three Months Ended Sept. 30, 2022	Stock		Capital		Business			Shares		Amount			Income (Loss)			Equity
Balances at June 30, 2022	$	5,396	$	116,596	$	1,672,000			12,058,773	$	(631,853	)	$	(203,172	)	$	958,967
Net earnings		-		-		36,048			-		-			-			36,048
Other comprehensive loss		-		-		-			-		-			(27,051	)		(27,051	)
Cash dividends paid – $0.41 per share		-		-		(17,235	)		-		-			-			(17,235	)
Share-based compensation		-		3,785		-			-		-			-			3,785
Balances at September 30, 2022	$	5,396	$	120,381	$	1,690,813			12,058,773	$	(631,853	)	$	(230,223	)	$	954,514

Three Months Ended Sept. 30, 2021

Balances at June 30, 2021	$	5,396	$	105,967	$	1,603,239		11,892,497	$	(614,404	)	$	(155,921	)	$	944,277
Net earnings		-		-		33,912		-		-			-			33,912
Other comprehensive loss		-		-		-		-		-			(15,232	)		(15,232	)
Cash dividends paid – $0.39 per share		-		-		(16,441	)	-		-			-			(16,441	)
Share-based compensation		-		2,243		-		-		-			-			2,243
Purchase of treasury stock		-		-		-		105,600		(9,367	)		-			(9,367	)
Balances at September 30, 2021	$	5,396	$	108,210	$	1,620,710		11,998,097	$	(623,771	)	$	(171,153	)	$	939,392

Nine Months Ended September 30, 2022

Balances at December 31, 2021	$	5,396	$	111,352		$	1,630,713		12,107,549		$	(634,408	)	$	(174,628	)	$	938,425
Net earnings		-		-			111,766		-			-			-			111,766
Other comprehensive loss		-		-			-		-			-			(55,595	)		(55,595	)
Cash dividends paid – $1.23 per share		-		-			(51,681	)	-			-			-			(51,681	)
Share-based compensation		-		12,476			-		-			-			-			12,476
Non-vested stock issued upon vesting		-		(3,239	)		-		(61,821	)		3,239			-			-
Benefit plans		-		560			-		(11,786	)		618			-			1,178
Other		-		(768	)		15		24,831			(1,302	)		-			(2,055	)
Balances at September 30, 2022	$	5,396	$	120,381		$	1,690,813		12,058,773		$	(631,853	)	$	(230,223	)	$	954,514

Nine Months Ended September 30, 2021

Balances at December 31, 2020	$	5,396	$	102,909		$	1,578,662		11,647,627		$	(593,540	)	$	(159,091	)	$	934,336
Net earnings		-		-			91,516		-			-			-			91,516
Other comprehensive loss		-		-			-		-			-			(12,062	)		(12,062	)
Cash dividends paid – $1.17 per share		-		-			(49,468	)	-			-			-			(49,468	)
Share-based compensation		-		6,431			-		-			-			-			6,431
Non-vested stock issued upon vesting		-		(1,264	)		-		(24,711	)		1,264			-			-
Benefit plans		-		338			-		(14,791	)		756			-			1,094
Purchase of treasury stock		-		-			-		382,593			(31,874	)		-			(31,874	)
Other		-		(204	)		-		7,379			(377	)		-			(581	)
Balances at September 30, 2021	$	5,396	$	108,210		$	1,620,710		11,998,097		$	(623,771	)	$	(171,153	)	$	939,392

See accompanying notes to consolidated condensed financial statements.

5

SENSIENT TECHNOLOGIES CORPORATION

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(Unaudited)

1. Accounting Policies

In the opinion of Sensient Technologies Corporation (the Company), the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) that are necessary to present fairly the financial position of the Company as of September 30, 2022, and the results of operations, comprehensive income, and shareholders’ equity for the three and nine months ended September 30, 2022 and 2021, and cash flows for the nine months ended September 30, 2022 and 2021. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Expenses are charged to operations in the period incurred.

Recently Issued Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (FASB) issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other inter-bank offered rates to alternative rates. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements and its related disclosures.

Please refer to the notes in the Company’s annual consolidated financial statements for the year ended December 31, 2021, for additional details of the Company’s financial condition and a description of the Company’s accounting policies, which have been continued without change.

2. Divestitures

On June 30, 2020, the Company completed the sale of its inks product line. On September 18, 2020, the Company completed the sale of its yogurt fruit preparations product line. This sale also included an earnout based on future performance, which could result in additional cash consideration for the Company. On April 1, 2021, the Company completed the sale of its fragrances product line (excluding its essential oils product line) for $36.3 million of net cash.

The Company reports all costs associated with the divestitures in Corporate & Other. There were no costs associated with the divestitures for the three and nine months ended September 30, 2022.

The following table summarizes the divestiture & other related costs for the three months ended September 30, 2021:

(In thousands)	Yogurt Fruit Preparations		Fragrances		Inks			Corporate & Other		Total
Other costs - Selling and administrative expenses(1)	$	102	$	149	$	(157	)	$	147	$	241

(1) Other costs – Selling and administrative expenses include employee separation costs, professional services, accelerated depreciation, and other related costs and income.

The following table summarizes the divestiture & other related costs for the nine months ended September 30, 2021:

(In thousands)	Yogurt Fruit Preparations		Fragrances		Inks			Corporate & Other		Total
Non-cash impairment charges – Selling and administrative expenses	$	-	$	1,062	$	-		$	-	$	1,062
Non-cash charges – Cost of products sold		-		37		(9	)		-		28
Reclassification of foreign currency translation and related items – Selling and administrative expenses		-		10,193		-			-		10,193
Other costs - Selling and administrative expenses(1)		631		1,365		(362	)		584		2,218
Total	$	631	$	12,657	$	(371	)	$	584	$	13,501

(1) Other costs – Selling and administrative expenses include environmental remediation, employee separation costs, professional services, accelerated depreciation, and other related costs.

6

In March 2020, the Company was notified by the buyer of the Company’s fragrances product line that environmental sampling conducted at the Company’s Granada, Spain location had identified the presence of contaminants in soil and groundwater in certain areas of the property. The Company records liabilities related to environmental remediation obligations when estimated future expenditures are probable and the amount of the liability is reasonably estimable. Based upon an environmental investigation and a quantitative risk assessment performed by a consultant hired by the Company, the Company recorded $0.3 million related to these obligations in Selling and Administrative Expenses during the nine months ended September 30, 2021.

3. Operational Improvement Plan

During the third quarter of 2020, the Company approved an operational improvement plan (Operational Improvement Plan) to consolidate manufacturing facilities and improve efficiencies within the Company. As part of the Operational Improvement Plan, the Company combined its New Jersey cosmetics manufacturing facility in the Personal Care product line of the Color segment into its existing Color segment facility in Missouri. In addition, the Company centralized certain Flavors & Extracts segment support functions in Europe into one location. In the Asia Pacific segment, the Company incurred costs in connection with the elimination of certain selling and administrative positions.

The Company reports all costs and income associated with the Operational Improvement Plan in Corporate & Other. There were no costs associated with the Operational Improvement Plan for the three and nine months ended September 30, 2022.

The following table summarizes the Operational Improvement Plan expenses recorded in Selling and Administrative Expenses by segment for the three months ended September 30, 2021:

(In thousands)	Flavors & Extracts		Color			Asia Pacific			Consolidated
Employee separation costs	$	1	$	(120	)	$	(4	)	$	(123	)
Other costs(1)		-		605			1			606
Total expense (income)	$	1	$	485		$	(3	)	$	483

(1) Other costs include professional services, accelerated depreciation, and other related costs.

The following table summarizes the Operational Improvement Plan expenses recorded in Selling and Administrative Expenses by segment for the nine months ended September 30, 2021:

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Employee separation costs	$	(15	)	$	(40	)	$	(72	)	$	(127	)
Other income(1)		-			(3,624	)		-			(3,624	)
Other costs(2)		-			1,739			2			1,741
Total expense (income)	$	(15	)	$	(1,925	)	$	(70	)	$	(2,010	)

(1) Other income includes cash received for the early termination of a lease less associated expenses.

(2) Other costs include professional services, accelerated depreciation, and other related costs.

As of September 30, 2022 and December 31 2021, accrued liabilities in Other Accrued Expenses totaled $0.3 million and $0.8 million, respectively, related to the Operational Improvement Plan.

7

4. Acquisition

On July 15, 2021, the Company acquired substantially all of the assets of Flavor Solutions, Inc., a flavors business located in New Jersey. The purchase price for this acquisition was $14.9 million in cash. The assets acquired and liabilities assumed were recorded at their estimated fair value as of the acquisition date. The Company acquired net assets of $0.4 million and identified intangible assets, principally customer relationships, of $5.0 million. The remaining $9.5 million was allocated to goodwill. This business is now part of the Flavors & Extracts segment.

5. Trade Accounts Receivable

Trade accounts receivables are recorded at their face amount, less an allowance for expected losses on doubtful accounts. The allowance for doubtful accounts is calculated based on customer-specific analysis and an aging methodology using historical loss information. The Company believes historical loss information is a reasonable basis for expected credit losses as the Company’s historical credit loss experience correlates with its customer delinquency status. This information is also adjusted for any known current economic conditions, including the current and expected impact of COVID-19. Currently, the COVID-19 pandemic has not had and is not anticipated to have a material impact on trade accounts receivable. Forecasted economic conditions have not had a significant impact on the current credit loss estimate due to the short-term nature of the Company’s customer receivables; however, the Company will continue to monitor and evaluate the rapidly changing economic conditions. Additionally, as the Company only has one portfolio segment, there are not different risks between portfolios. Specific accounts are written off against the allowance for doubtful accounts when the receivable is deemed no longer collectible.

The following table summarizes the changes in the allowance for doubtful accounts during the three and nine month periods ended September 30, 2022 and 2021:

(In thousands) Three Months Ended September 30, 2022	Allowance for Doubtful Accounts
Balance at June 30, 2022	$	4,494
Provision for expected credit losses		51
Accounts written off		(33	)
Translation and other activity		(105	)
Balance at September 30, 2022	$	4,407

(In thousands) Three Months Ended September 30, 2021	Allowance for Doubtful Accounts
Balance at June 30, 2021	$	3,749
Provision for expected credit losses		186
Accounts written off		(41	)
Translation and other activity		(65	)
Balance at September 30, 2021	$	3,829

(In thousands) Nine Months Ended September 30, 2022	Allowance for Doubtful Accounts
Balance at December 31, 2021	$	4,877
Provision for expected credit losses		883
Accounts written off		(1,129	)
Translation and other activity		(224	)
Balance at September 30, 2022	$	4,407

(In thousands) Nine Months Ended September 30, 2021	Allowance for Doubtful Accounts
Balance at December 31, 2020	$	3,891
Provision for expected credit losses		480
Accounts written off		(414	)
Translation and other activity		(128	)
Balance at September 30, 2021	$	3,829

8

6. Inventories

At September 30, 2022, and December 31, 2021, inventories included finished and in-process products totaling $332.1 million and $280.2 million, respectively, and raw materials and supplies of $169.3 million and $131.4 million, respectively.

7. Debt

On August 31, 2022, the Company entered into Amendment No. 9 (Amendment) to the Receivables Purchase Agreement, dated as of October 3, 2016. The Amendment increased the facility limit from $30 million to $85 million and extended the maturity date from October 1, 2022 to August 31, 2023. The Amendment also changed the interest rate benchmark from the London Interbank Offered Rate to the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York and modified certain other provisions.

8. Fair Value

Accounting Standards Codification 820, Fair Value Measurement, defines fair value for financial assets and liabilities, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. The carrying values of the Company’s cash and cash equivalents, trade accounts receivable, trade accounts payable, accrued expenses, and short-term borrowings were approximately the same as the fair values as of September 30, 2022 and December 31, 2021. The net fair value of the forward exchange contracts based on current pricing obtained for comparable derivative products (Level 2 inputs) was an asset of $0.3 million and $0.1 million as of September 30, 2022 and December 31, 2021, respectively. The fair value of the Company’s long-term debt, including current maturities, is estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 2 inputs). The carrying value of the long-term debt at September 30, 2022 and December 31, 2021 was $547.7 million and $503.5 million, respectively. The fair value of the long-term debt at September 30, 2022 and December 31, 2021 was $539.1 million and $520.0 million, respectively.

9. Segment Information

The Company evaluates performance based on operating income before divestiture & other related costs, share-based compensation, restructuring and other charges including the 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, extracts, and essential oils products that impart a desired taste, texture, aroma, and 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 cosmetics, 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 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 restructuring and other costs, including the Operational Improvement Plan costs, for the three and nine months ended September 30, 2021, 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. There were no divestiture & other related costs or Operational Improvement Plan costs for the three and nine months ended September 30, 2022. In addition, the Company’s corporate expenses and share-based compensation are included in Corporate & Other.

9

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, 2022:
Revenue from external customers	$	181,397	$	144,570	$	35,109	$	-		$	361,076
Intersegment revenue		5,649		6,899		112		-			12,660
Total revenue	$	187,046	$	151,469	$	35,221	$	-		$	373,736
Operating income (loss)	$	26,337	$	28,200	$	6,952	$	(13,996	)	$	47,493
Interest expense		-		-		-