v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
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), restructuring and other charges, including the Portfolio Optimization Plan costs, and other costs (which are reported in Corporate & Other), interest expense, and income taxes.

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), restructuring and other charges, including Portfolio Optimization Plan costs as further described in Note 3, Portfolio Optimization Plan, and certain other 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, 2026:
                              
Total segment revenue
  
$
201,825
    
$
198,176
    
$
45,255
    
$
-
    
$
445,256
  
Intersegment revenue
    
(5,719
)
    
(3,654
)
    
(49
)
    
-
      
(9,422
)
Consolidated revenue from external customers
    
196,106
      
194,522
      
45,206
      
-
      
435,834
  
Cost of products sold
    
141,935
      
115,903
      
25,308
      
-
      
283,146
  
Selling and administrative expense
    
27,421
      
36,554
      
8,718
      
13,267
      
85,960
  
Operating income (loss)
    
26,750
      
42,065
      
11,180
      
(13,267
)
    
66,728
  
Interest expense
                                    
7,902
  
Earnings before income taxes
                                  
$
58,826
  
 
                                        
Assets
    
904,103
      
916,596
      
124,640
      
342,249
      
2,287,588
  
Capital expenditures
    
10,452
      
16,764
      
309
      
1,212
      
28,737
  
Depreciation and amortization
    
7,760
      
6,157
      
585
      
1,036
      
15,538
  
 
                                        
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
  

Product Lines
(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Three months ended March 31, 2026:
                        
Flavors, Extracts & Flavor Ingredients
  
$
138,564
    
$
-
    
$
-
    
$
138,564
  
Agricultural Ingredients
    63,261       -       -       63,261  
Food & Pharmaceutical Colors
    
-
      
151,280
      
-
      
151,280
  
Personal Care
    
-
      
46,896
      
-
      
46,896
  
Asia Pacific
    
-
      
-
      
45,255
      
45,255
  
Intersegment Revenue
    
(5,719
)
    
(3,654
)
    
(49
)
    
(9,422
)
Total revenue from external customers
  
$
196,106
    
$
194,522
    
$
45,206
    
$
435,834
  
 
                                
Three months ended March 31, 2025:
                                
Flavors, Extracts & Flavor Ingredients
  
$
130,181
    
$
-
    
$
-
    
$
130,181
  
Agricultural 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
  

Geographic Markets
(In thousands)
  
Flavors &
Extracts
    
Color
    
Asia Pacific
    
Consolidated
  
Three months ended March 31, 2026:
                        
North America
  
$
158,943
    
$
97,768
    
$
41
    
$
256,752
  
Europe
    
29,400
      
57,018
      
7
      
86,425
  
Asia Pacific
    
2,819
      
20,951
      
43,178
      
66,948
  
Other
    
4,944
      
18,785
      
1,980
      
25,709
  
Total revenue from external customers
  
$
196,106
    
$
194,522
    
$
45,206
    
$
435,834
  
 
                                
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