Segment Information

3 Months Ended

Mar. 31, 2025

Segment Information [Abstract]

Segment Information

7. Segment Information

The Company evaluates performance based on operating income before share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders); 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.

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.

The Company determines its operating segments based on information utilized by its chief operating decision maker (CODM) to allocate resources and assess performance. The Company’s CODM is the President and Chief Executive Officer. The CODM uses segment operating income or loss to allocate resources, which includes employees, financial, or capital resources, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual and year-over-year variances on a monthly basis for segment operating income or loss when allocating capital and personnel resources to the segments. Segment performance is evaluated based on operating income of the respective business units before share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders) and restructuring and other charges, including the Portfolio Optimization Plan costs, which are reported in Corporate & Other.

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 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, share-based compensation (except for share-based compensation expense associated with stock grants to certain business unit leaders), 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 March 31, 2025:
Total segment revenue	$	193,681		$	167,750		$	41,901		$	-		$	403,332
Intersegment revenue		(5,883	)		(5,114	)		(10	)		-			(11,007	)
Consolidated revenue from external customers		187,798			162,636			41,891			-			392,325
Cost of products sold		137,934			96,437			24,363			1,814			260,548
Selling and administrative expense		24,875			31,347			8,086			13,939			78,247
Operating income (loss)		24,989			34,852			9,442			(15,753	)		53,530
Interest expense														7,341
Earnings before income taxes													$	46,189
Assets		811,518			852,073			125,110			303,967			2,092,668
Capital expenditures		12,535			3,522			175			622			16,854
Depreciation and amortization		7,640			5,936			548			950			15,074
Three months ended March 31, 2024:
Total segment revenue	$	193,092		$	160,025		$	40,306		$	-		$	393,423
Intersegment revenue		(5,070	)		(3,661	)		(22	)		-			(8,753	)
Consolidated revenue from external customers		188,022			156,364			40,284			-			384,670
Cost of products sold		138,982			95,003			24,029			107			258,121
Selling and administrative expense		25,362			29,682			7,479			14,620			77,143
Operating income (loss)		23,678			31,679			8,776			(14,727	)		49,406
Interest expense														7,045
Earnings before income taxes													$	42,361
Assets		785,024			840,433			106,980			273,245			2,005,682
Capital expenditures		4,581			5,217			390			842			11,030
Depreciation and amortization		7,620			5,440			636			1,013			14,709

Product Lines

(In thousands)	Flavors & Extracts			Color			Asia Pacific			Consolidated
Three months ended March 31, 2025:
Flavors, Extracts & Flavor Ingredients	$	130,181		$	-		$	-		$	130,181
Natural Ingredients		63,500			-			-			63,500
Food & Pharmaceutical Colors		-			124,600			-			124,600
Personal Care		-			43,150			-			43,150
Asia Pacific		-			-			41,901			41,901
Intersegment Revenue		(5,883	)		(5,114	)		(10	)		(11,007	)
Total revenue from external customers	$	187,798		$	162,636		$	41,891		$	392,325
Three months ended March 31, 2024:
Flavors, Extracts & Flavor Ingredients	$	124,805		$	-		$	-		$	124,805
Natural Ingredients		68,287			-			-			68,287
Food & Pharmaceutical Colors		-			117,058			-			117,058
Personal Care		-			42,967			-			42,967
Asia Pacific		-			-			40,306			40,306
Intersegment Revenue		(5,070	)		(3,661	)		(22	)		(8,753	)
Total revenue from external customers	$	188,022		$	156,364		$	40,284		$	384,670

Geographic Markets

(In thousands)	Flavors & Extracts		Color		Asia Pacific		Consolidated
Three months ended March 31, 2025:
North America	$	149,627	$	78,669	$	1	$	228,297
Europe		28,157		47,723		22		75,902
Asia Pacific		4,522		16,626		40,764		61,912
Other		5,492		19,618		1,104		26,214
Total revenue from external customers	$	187,798	$	162,636	$	41,891	$	392,325
Three months ended March 31, 2024:
North America	$	146,952	$	75,120	$	-	$	222,072
Europe		32,157		46,162		46		78,365
Asia Pacific		3,706		17,419		38,685		59,810
Other		5,207		17,663		1,553		24,423
Total revenue from external customers	$	188,022	$	156,364	$	40,284	$	384,670