Segment Information | 6. Segment Information The Company evaluates performance based on operating income before share-based compensation, 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, or 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 personal care, 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, flavor, and essential oils products in the Asia Pacific countries. The Company’s corporate expenses and share-based compensation 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 2023 Revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ - $ 369,006 Intersegment revenue 6,880 4,212 - - 11,092 Total revenue $ 178,852 $ 161,161 $ 40,085 $ - $ 380,098 Operating income (loss) $ 22,180 $ 31,885 $ 9,241 $ (12,468 ) $ 50,838 Interest expense - - - 6,002 6,002 Earnings (loss) before income taxes $ 22,180 $ 31,885 $ 9,241 $ (18,470 ) $ 44,836 Three months ended March 31 2022 Revenue from external customers $ 175,202 $ 143,928 $ 36,391 $ - $ 355,521 Intersegment revenue 7,525 4,510 74 - 12,109 Total revenue $ 182,727 $ 148,438 $ 36,465 $ - $ 367,630 Operating income (loss) $ 27,579 $ 30,657 $ 8,204 $ (13,651 ) $ 52,789 Interest expense - - - 2,993 2,993 Earnings (loss) before income taxes $ 27,579 $ 30,657 $ 8,204 $ (16,644 ) $ 49,796 Product Lines (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended March 31 2023 Flavors, Extracts & Flavor Ingredients $ 124,825 $ - $ - $ 124,825 Natural Ingredients 54,027 - - 54,027 Food & Pharmaceutical Colors - 118,747 - 118,747 Personal Care - 42,414 - 42,414 Asia Pacific - - 40,085 40,085 Intersegment Revenue (6,880 ) (4,212 ) - (11,092 ) Total revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ 369,006 Three months ended March 31 2022 Flavors, Extracts & Flavor Ingredients $ 126,518 $ - $ - $ 126,518 Natural Ingredients 56,209 - - 56,209 Food & Pharmaceutical Colors - 103,109 - 103,109 Personal Care - 44,846 - 44,846 Inks - 483 - 483 Asia Pacific - - 36,465 36,465 Intersegment Revenue (7,525 ) (4,510 ) (74 ) (12,109 ) Total revenue from external customers $ 175,202 $ 143,928 $ 36,391 $ 355,521 Geographic Markets (In thousands) Flavors & Extracts Color Asia Pacific Consolidated Three months ended March 31 2023 North America $ 131,968 $ 78,377 $ 62 $ 210,407 Europe 28,927 43,252 103 72,282 Asia Pacific 5,201 18,149 39,195 62,545 Other 5,876 17,171 725 23,772 Total revenue from external customers $ 171,972 $ 156,949 $ 40,085 $ 369,006 Three months ended March 31 2022 North America $ 126,702 $ 69,928 $ 58 $ 196,688 Europe 32,605 41,978 81 74,664 Asia Pacific 9,737 16,016 33,982 59,735 Other 6,158 16,006 2,270 24,434 Total revenue from external customers $ 175,202 $ 143,928 $ 36,391 $ 355,521 |