v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Information [Abstract]  
Segment Information
8.
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 June 30, 2025:
                              
Total segment revenue
   $
203,251
     $
179,282
     $
42,744
     $
-
     $
425,277
  
Intersegment revenue
    
(5,770
)
    
(5,210
)
    
(67
)
    
-
      
(11,047
)
Consolidated revenue from external customers
    
197,481
      
174,072
      
42,677
      
-
      
414,230
  
Cost of products sold
    
142,625
      
101,762
      
25,222
      
1,789
      
271,398
  
Selling and administrative expense
    
26,350
      
33,388
      
8,512
      
16,876
      
85,126
  
Operating income (loss)
    
28,506
      
38,922
      
8,943
      
(18,665
)
    
57,706
  
Interest expense
                                    
7,391
  
Earnings before income taxes
                                   $
50,315
  
                                         
Assets
    
843,445
      
887,924
      
130,214
      
342,978
      
2,204,561
  
Capital expenditures
    
14,472
      
4,959
      
429
      
1,321
      
21,181
  
Depreciation and amortization
    
7,676
      
6,062
      
570
      
952
      
15,260
  
                                         
Three months ended June 30, 2024:
                                        
Total segment revenue
   $
209,213
     $
167,700
     $
38,580
     $
-
     $
415,493
  
Intersegment revenue
    
(7,193
)
    
(4,775
)
    
-
   
-
      
(11,968
)
Consolidated revenue from external customers
    
202,020
      
162,925
      
38,580
      
-
      
403,525
  
Cost of products sold
    
149,346
      
100,349
      
22,901
      
207
      
272,803
  
Selling and administrative expense
    
26,465
      
31,074
      
7,799
      
15,727
      
81,065
  
Operating income (loss)
    
26,209
      
31,502
      
7,880
      
(15,934
)
    
49,657
  
Interest expense
                                    
7,653
  
Earnings before income taxes
                                   $
42,004
  
                                         
Assets
    
763,530
      
831,381
      
112,361
      
287,595
      
1,994,867
  
Capital expenditures
    
4,917
      
4,842
      
874
      
1,187
      
11,820
  
Depreciation and amortization
    
7,638
      
5,749
      
617
      
1,012
      
15,016
  

 
(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Corporate
& Other
    
Consolidated
  
Six months ended June 30, 2025:
                              
Total segment revenue
  
$
396,932
    
$
347,032
    
$
84,645
    
$
-
    
$
828,609
  
Intersegment revenue
    
(11,653
)
    
(10,324
)
    
(77
)
    
-
      
(22,054
)
Consolidated revenue from external customers
    
385,279
      
336,708
      
84,568
      
-
      
806,555
  
Cost of products sold
    
280,559
      
198,199
      
49,585
      
3,603
      
531,946
  
Selling and administrative expense
    
51,225
      
64,735
      
16,598
      
30,815
      
163,373
  
Operating income (loss)
    
53,495
      
73,774
      
18,385
      
(34,418
)
    
111,236
  
Interest expense
                                    
14,732
  
Earnings before income taxes
                                  
$
96,504
  
                                         
Assets
    
843,445
      
887,924
      
130,214
      
342,978
      
2,204,561
  
Capital expenditures
    
27,008
      
8,481
      
604
      
1,942
      
38,035
  
Depreciation and amortization
    
15,316
      
11,998
      
1,118
      
1,902
      
30,334
  
                                         
Six months ended June 30, 2024:
                                        
Total segment revenue
  
$
402,305
    
$
327,725
    
$
78,886
    
$
-
    
$
808,916
  
Intersegment revenue
    
(12,263
)
    
(8,436
)
    
(22
)
    
-
      
(20,721
)
Consolidated revenue from external customers
    
390,042
      
319,289
      
78,864
      
-
      
788,195
  
Cost of products sold
    
288,328
      
195,352
      
46,930
      
314
      
530,924
  
Selling and administrative expense
    
51,827
      
60,756
      
15,278
      
30,347
      
158,208
  
Operating income (loss)
    
49,887
      
63,181
      
16,656
      
(30,661
)
    
99,063
  
Interest expense
                                    
14,698
  
Earnings before income taxes
                                  
$
84,365
  
                                         
Assets
    
763,530
      
831,381
      
112,361
      
287,595
      
1,994,867
  
Capital expenditures
    
9,498
      
10,059
      
1,264
      
2,029
      
22,850
  
Depreciation and amortization
    
15,258
      
11,189
      
1,253
      
2,025
      
29,725
  

Product Lines
(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Three months ended June 30, 2025:
                        
Flavors, Extracts & Flavor Ingredients
  
$
141,736
    
$
-
    
$
-
    
$
141,736
  
Natural Ingredients
    
61,515
      
-
      
-
      
61,515
  
Food & Pharmaceutical Colors
    
-
      
136,377
      
-
      
136,377
  
Personal Care
    
-
      
42,905
      
-
      
42,905
  
Asia Pacific
    
-
      
-
      
42,744
      
42,744
  
Intersegment Revenue
    
(5,770
)
    
(5,210
)
    
(67
)
    
(11,047
)
Total revenue from external customers
  
$
197,481
    
$
174,072
    
$
42,677
    
$
414,230
  
                                 
Three months ended June 30, 2024:
                                
Flavors, Extracts & Flavor Ingredients
  
$
134,749
    
$
-
    
$
-
    
$
134,749
  
Natural Ingredients
    
74,464
      
-
      
-
      
74,464
  
Food & Pharmaceutical Colors
    
-
      
125,327
      
-
      
125,327
  
Personal Care
    
-
      
42,373
      
-
      
42,373
  
Asia Pacific
    
-
      
-
      
38,580
      
38,580
  
Intersegment Revenue
    
(7,193
)
    
(4,775
)
    
-
      
(11,968
)
Total revenue from external customers
  
$
202,020
    
$
162,925
    
$
38,580
    
$
403,525
  

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Six months ended June 30, 2025:
                        
Flavors, Extracts & Flavor Ingredients
  
$
271,917
    
$
-
    
$
-
    
$
271,917
  
Natural Ingredients
    
125,015
      
-
      
-
      
125,015
  
Food & Pharmaceutical Colors
    
-
      
260,977
      
-
      
260,977
  
Personal Care
    
-
      
86,055
      
-
      
86,055
  
Asia Pacific
    
-
      
-
      
84,645
      
84,645
  
Intersegment Revenue
    
(11,653
)
    
(10,324
)
    
(77
)
    
(22,054
)
Total revenue from external customers
  
$
385,279
    
$
336,708
    
$
84,568
    
$
806,555
  
                                 
Six months ended June 30, 2024:
                                
Flavors, Extracts & Flavor Ingredients
  
$
259,554
    
$
-
    
$
-
    
$
259,554
  
Natural Ingredients
    
142,751
      
-
      
-
      
142,751
  
Food & Pharmaceutical Colors
    
-
      
242,385
      
-
      
242,385
  
Personal Care
    
-
      
85,340
      
-
      
85,340
  
Asia Pacific
    
-
      
-
      
78,886
      
78,886
  
Intersegment Revenue
    
(12,263
)
    
(8,436
)
    
(22
)
    
(20,721
)
Total revenue from external customers
  
$
390,042
    
$
319,289
    
$
78,864
    
$
788,195
  

Geographic Markets
(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Three months ended June 30, 2025:
                        
North America
  
$
152,292
    
$
84,402
    
$
14
    
$
236,708
  
Europe
    
33,284
      
50,686
      
16
      
83,986
  
Asia Pacific
    
4,722
      
17,048
      
41,078
      
62,848
  
Other
    
7,183
      
21,936
      
1,569
      
30,688
  
Total revenue from external customers
  
$
197,481
    
$
174,072
    
$
42,677
    
$
414,230
  
                                 
Three months ended June 30, 2024:
                                
North America
  
$
156,650
    
$
82,535
    
$
82
    
$
239,267
  
Europe
    
32,064
      
45,825
      
60
      
77,949
  
Asia Pacific
    
5,103
      
15,648
      
37,017
      
57,768
  
Other
    
8,203
      
18,917
      
1,421
      
28,541
  
Total revenue from external customers
  
$
202,020
    
$
162,925
    
$
38,580
    
$
403,525
  

(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Six months ended June 30, 2025:
                        
North America
  
$
301,919
    
$
163,071
    
$
15
    
$
465,005
  
Europe
    
61,441
      
98,409
      
38
      
159,888
  
Asia Pacific
    
9,244
      
33,674
      
81,842
      
124,760
  
Other
    
12,675
      
41,554
      
2,673
      
56,902
  
Total revenue from external customers
  
$
385,279
    
$
336,708
    
$
84,568
    
$
806,555
  
                                 
Six months ended June 30, 2024:
                                
North America
  
$
303,602
    
$
157,655
    
$
82
    
$
461,339
  
Europe
    
64,221
      
91,987
      
106
      
156,314
  
Asia Pacific
    
8,809
      
33,067
      
75,702
      
117,578
  
Other
    
13,410
      
36,580
      
2,974
      
52,964
  
Total revenue from external customers
  
$
390,042
    
$
319,289
    
$
78,864
    
$
788,195