10-Q 1 ef20030107_10q.htm 10-Q
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:
June 30, 2024
  

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 July 23, 2024
Common Stock, par value $0.10 per share
  
42,374,796

SENSIENT TECHNOLOGIES CORPORATION
INDEX

   
Page No.
     
PART I. FINANCIAL INFORMATION:
  
     
Item 1.
Financial Statements:
 
 

 
 
1
 

 
 
2
 
 
 
3
 
 
 
4
 
 
  
 
5
     
 
6
     
Item 2.
 14
     
Item 3.
19
     
Item 4.
19
     
PART II. OTHER INFORMATION:
  
     
Item 1.
19
     
Item 1A.
19
     
Item 2.
19
 
 
Item 5.
 20
     
Item 6
 Exhibits.  20
     
 
21
     
 
22

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 June 30,
    
Six Months
Ended June 30,
  
   
2024
    
2023
    
2024
    
2023
  
                         
Revenue
  
$
403,525
    
$
374,313
    
$
788,195
    
$
743,319
  
Cost of products sold
    
272,803
      
252,136
      
530,924
      
496,479
  
Selling and administrative expenses
    
81,065
      
70,586
      
158,208
      
144,411
  
Operating income
    
49,657
      
51,591
      
99,063
      
102,429
  
Interest expense
    
7,653
      
6,352
      
14,698
      
12,354
  
Earnings before income taxes
    
42,004
      
45,239
      
84,365
      
90,075
  
Income taxes
    
11,072
      
11,206
      
22,493
      
22,391
  
Net earnings
  
$
30,932
    
$
34,033
    
$
61,872
    
$
67,684
  
                                 
Weighted average number of common shares outstanding:
                                
Basic
    
42,154
      
42,043
      
42,129
      
42,006
  
Diluted
    
42,398
      
42,235
      
42,351
      
42,245
  
                                 
Earnings per common share:
                                
Basic
  
$
0.73
    
$
0.81
    
$
1.47
    
$
1.61
  
Diluted
  
$
0.73
    
$
0.81
    
$
1.46
    
$
1.60
  
                                 
Dividends declared per common share
  
$
0.41
    
$
0.41
    
$
0.82
    
$
0.82
  

See accompanying notes to consolidated condensed financial statements.

1
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)

 
Three Months
Ended June 30,
    
Six Months
Ended June 30,
  
   
2024
    
2023
    
2024
    
2023
  
                         
Comprehensive income
  
$
8,483
    
$
41,199
    
$
35,812
    
$
91,151
  

See accompanying notes to consolidated condensed financial statements.

2
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)


  
June 30,
2024
(Unaudited)
    
December 31,
2023
  
Assets
           
Current Assets:
            
Cash and cash equivalents
  
$
30,339
    
$
28,934
  
Trade accounts receivable
    
315,604
      
272,164
  
Inventories
    
553,415
      
598,399
  
Prepaid expenses and other current assets
    
44,897
      
37,119
  
                 
Total current assets
    
944,255
      
936,616
  
                 
Other assets
    
92,501
      
94,873
  
Deferred tax assets
    
37,171
      
41,564
  
Intangible assets, net
    
11,615
      
12,112
  
Goodwill
    
418,185
      
424,065
  
Property, Plant, and Equipment:
                
Land
    
32,752
      
31,901
  
Buildings
    
349,407
      
343,594
  
Machinery and equipment
    
798,717
      
781,789
  
Construction in progress
    
37,117
      
59,091
  
     
1,217,993
      
1,216,375
  
Less accumulated depreciation
    
(726,853
)
    
(711,098
)
     
491,140
      
505,277
  
                 
Total assets
  
$
1,994,867
    
$
2,014,507
  
                 
Liabilities and Shareholders’ Equity
                
                 
Current Liabilities:
                
Trade accounts payable
  
$
107,218
    
$
131,114
  
Accrued salaries, wages, and withholdings from employees
    
33,525
      
26,412
  
Other accrued expenses
    
52,802
      
52,024
  
Income taxes
    
6,495
      
13,296
  
Short-term borrowings
    
26,995
      
13,460
  
                 
Total current liabilities
    
227,035
      
236,306
  
                 
Deferred tax liabilities
    
14,087
      
14,260
  
Other liabilities
    
36,435
      
37,817
  
Accrued employee and retiree benefits
    
24,872
      
27,715
  
Long-term debt
    
634,663
      
645,085
  
Shareholders’ Equity:
                
Common stock
    
5,396
      
5,396
  
Additional paid-in capital
    
114,730
      
115,941
  
Earnings reinvested in the business
    
1,754,059
      
1,726,872
  
Treasury stock, at cost
    
(618,233
)
    
(622,768
)
Accumulated other comprehensive loss
    
(198,177
)
    
(172,117
)
                 
Total shareholders’ equity
    
1,057,775
      
1,053,324
  
                 
Total liabilities and shareholders’ equity
  
$
1,994,867
    
$
2,014,507
  

See accompanying notes to consolidated condensed financial statements.

3
SENSIENT TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 
Six Months
Ended June 30,
  
   
2024
    
2023
  
             
Cash flows from operating activities:
            
Net earnings
  
$
61,872
    
$
67,684
  
Adjustments to arrive at net cash provided by operating activities:
                
Depreciation and amortization
    
29,725
      
28,590
  
Share-based compensation expense
    
4,911
      
4,766
  
Net (gain) loss on assets
    
(195
)
    
81
  
Portfolio Optimization Plan costs
     1,495       -  
Deferred income taxes
    
529
      
(2,643
)
Changes in operating assets and liabilities:
                
Trade accounts receivable
    
(49,449
)
    
6,062
  
Inventories
    
36,730
      
(16,927
)
Prepaid expenses and other assets
    
(6,612
)
    
3,534
  
Accounts payable and other accrued expenses
    
(22,722
)
    
(18,329
)
Accrued salaries, wages, and withholdings from employees
    
7,824
      
(19,713
)
Income taxes
    
(6,591
)
    
(1,998
)
Other liabilities
    
1,429
      
595
  
                 
Net cash provided by operating activities
    
58,946
      
51,702
  
                 
Cash flows from investing activities:
                
Acquisition of property, plant, and equipment
    
(22,850
)
    
(45,137
)
Proceeds from sale of assets
    
296
      
53
  
Other investing activities
    
(336
)
    
2,054
  
                 
Net cash used in investing activities
    
(22,890
)
    
(43,030
)
                 
Cash flows from financing activities:
                
Proceeds from additional borrowings
    
132,189
      
187,037
  
Debt payments
    
(120,571
)
    
(143,923
)
Dividends paid
    
(34,685
)
    
(34,577
)
Other financing activities
    
(3,016
)
    
(8,003
)
                 
Net cash (used in) provided by financing activities
    
(26,083
)
    
534
  
                 
Effect of exchange rate changes on cash and cash equivalents
    
(8,568
)
    
6,419
  
                 
Net increase in cash and cash equivalents
    
1,405
      
15,625
  
Cash and cash equivalents at beginning of period
    
28,934
      
20,921
  
Cash and cash equivalents at end of period
  
$
30,339
    
$
36,546
  

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)

                   
Treasury Stock
    
   

 
Three Months Ended June 30, 2024
  
Common
Stock
    
Additional
Paid-In
Capital
    
Earnings
Reinvested
in the
Business
    
Shares
    
Amount
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Total
Equity
  
Balances at March 31, 2024
  
$
5,396
    
$
112,389
    
$
1,740,500
      
11,806,249
    
$
(618,621
)
  
$
(175,728
)
  
$
1,063,936
  
Net earnings
    
-
      
-
      
30,932
      
-
      
-
      
-
      
30,932
  
Other comprehensive loss
    
-
      
-
      
-
      
-
      
-
      
(22,449
)
    
(22,449
)
Cash dividends paid – $0.41 per share
    
-
      
-
      
(17,373
)
    
-
      
-
      
-
      
(17,373
)
Share-based compensation
    
-
      
2,916
      
-
      
-
      
-
      
-
      
2,916
  
Non-vested stock issued upon vesting
     -       (528 )     -       (10,076 )     528       -       -  
Other
     -       (47 )     -       2,680       (140 )     -       (187 )
Balances at June 30, 2024
  
$
5,396
    
$
114,730
    
$
1,754,059
      
11,798,853
    
$
(618,233
)
  
$
(198,177
)
  
$
1,057,775
  

Three Months Ended June 30, 2023
                                          
Balances at March 31, 2023
  
$
5,396
    
$
112,589
    
$
1,719,096
      
11,917,944
    
$
(624,473
)
  
$
(184,387
)
  
$
1,028,221
  
Net earnings
    
-
      
-
      
34,033
      
-
      
-
      
-
      
34,033
  
Other comprehensive income
    
-
      
-
      
-
      
-
      
-
      
7,166
      
7,166
  
Cash dividends paid – $0.41 per share
    
-
      
-
      
(17,322
)
    
-
      
-
      
-
      
(17,322
)
Share-based compensation
    
-
      
2,499
      
-
      
-
      
-
      
-
      
2,499
  
Non-vested stock issued upon vesting     -       (663 )     -       (12,644 )     663       -       -  
Other
     -       (95 )     -       4,533       (238 )     -       (333 )
Balances at June 30, 2023
  
$
5,396
    
$
114,330
    
$
1,735,807
      
11,909,833
    
$
(624,048
)
  
$
(177,221
)
  
$
1,054,264
  

Six Months Ended June 30, 2024  
                                         
Balances at December 31, 2023
  
$
5,396
    
$
115,941
    
$
1,726,872
      
11,885,398
    
$
(622,768
)
  
$
(172,117
)
  
$
1,053,324
  
Net earnings
    
-
      
-
      
61,872
      
-
      
-
      
-
      
61,872
  
Other comprehensive loss
    
-
      
-
      
-
      
-
      
-
      
(26,060
)
    
(26,060
)
Cash dividends paid – $0.82 per share
    
-
      
-
      
(34,685
)
    
-
      
-
      
-
      
(34,685
)
Share-based compensation
    
-
      
4,911
      
-
      
-
      
-
      
-
      
4,911
  
Non-vested stock issued upon vesting
    
-
      
(5,893
)
    
-
      
(112,472
)
    
5,893
      
-
      
-
  
Benefit plans
    
-
      
299
      
-
      
(21,405
)
    
1,122
      
-
      
1,421
  
Other
    
-
      
(528
)
    
-
      
47,332
      
(2,480
)
    
-
      
(3,008
)
Balances at June 30, 2024
  
$
5,396
    
$
114,730
    
$
1,754,059
      
11,798,853
    
$
(618,233
)
  
$
(198,177
)
  
$
1,057,775
  

Six Months Ended June 30, 2023  
                                         
Balances at December 31, 2022
  
$
5,396
    
$
124,043
    
$
1,702,700
      
12,058,773
    
$
(631,853
)
  
$
(200,688
)
  
$
999,598
  
Net earnings
    
-
      
-
      
67,684
      
-
      
-
      
-
      
67,684
  
Other comprehensive income
    
-
      
-
      
-
      
-
      
-
      
23,467
      
23,467
  
Cash dividends paid – $0.82 per share
    
-
      
-
      
(34,577
)
    
-
      
-
      
-
      
(34,577
)
Share-based compensation
    
-
      
4,766
      
-
      
-
      
-
      
-
      
4,766
  
Non-vested stock issued upon vesting
    
-
      
(12,619
)
    
-
      
(240,825
)
    
12,619
      
-
      
-
  
Benefit plans
    
-
      
375
      
-
      
(18,172
)
    
952
      
-
      
1,327
  
Other
    
-
      
(2,235
)
    
-
      
110,057
      
(5,766
)
    
-
      
(8,001
)
Balances at June 30, 2023
  
$
5,396
    
$
114,330
    
$
1,735,807
      
11,909,833
    
$
(624,048
)
  
$
(177,221
)
  
$
1,054,264
  

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 June 30, 2024, and the results of operations, comprehensive income, and shareholders’ equity for the three and six months ended June 30, 2024 and 2023, and cash flows for the six months ended June 30, 2024 and 2023. 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 November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to provide disclosures of significant segment expenses and other segment items. This ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements and its related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities to consistently categorize, and provide greater disaggregation of, information in the rate reconciliation table and further disaggregate income tax payments by jurisdiction. This ASU is effective for fiscal years beginning after December 15, 2024. 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, 2023, 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.
Portfolio Optimization Plan

During the fourth quarter of 2023, the board of directors of the Company approved a plan to undertake an effort to optimize certain production facilities and improve efficiencies within the Company (Portfolio Optimization Plan). As part of the Portfolio Optimization Plan, in the Flavors & Extracts segment, the Company evaluated the closure of its manufacturing facility in Felinfach, Wales, United Kingdom, the closure of its sales office in Granada, Spain, and the centralization and elimination of certain selling and administrative positions. In addition, in the Color segment, the Company evaluated the closure of a manufacturing facility in Delta, British Columbia, Canada, the closure of a sales office in Argentina, and centralizing and eliminating certain production positions and selling and administrative positions. The Company reports all costs associated with the Portfolio Optimization Plan in the Corporate & Other segment.

The Company’s Felinfach site will continue to operate until all production activities have successfully transferred to other locations, and then will be closed. The Company has substantially completed all other actions contemplated under the Portfolio Optimization Plan in accordance with local laws.

The Company recorded non-cash impairment charges in Selling and Administrative Expenses, primarily related to certain property, plant, and equipment during the three and six months ended June 30, 2024, when the estimated fair value of these assets was lower than the carrying value. The property, plant, and equipment related to a product line that was shut down and determined to not be usable at other plant locations.

6
The Company recorded $2.8 million and $3.7 million of accrued liabilities in Other Accrued Expenses on the Company’s Consolidated Balance Sheet related to the Portfolio Optimization Plan as of June 30, 2024 and December 31, 2023, respectively. The Company expects the Portfolio Optimization Plan will cost approximately $40 million, of which $32.4 million has been incurred through June 30, 2024, primarily related to non-cash impairment charges and proposed employee separation costs, and upon completion would reduce annual operating costs by approximately $8 million to $10 million, with the full benefit expected to be achieved after 2025. The Company anticipates to reduce headcount by approximately 100 positions, primarily in the Flavors & Extracts and Color segments, related to certain production and selling and administrative positions.

The following table summarizes the Portfolio Optimization Plan expenses by segment for the three months ended June 30, 2024:

 
(In thousands)
  
Flavors &
Extracts
    

Color
    
Corporate
& Other
    
Consolidated
  
Non-cash impairment charges – Selling and administrative expenses
  
$
-
    
$
154
    
$
-
    
$
154
  
Non-cash charges – Cost of products sold
    
283
      
(176
)
    
-
      
107
  
Employee separation – Selling and administrative expenses
    
240
      
35
      
-
      
275
  
Other production costs – Cost of products sold
     100       -       -       100  
Other costs – Selling and administrative expenses(1)
    
743
      
400
      
(27
)
    
1,116
  
Total
  
$
1,366
    
$
413
    
$
(27
)
  
$
1,752
  


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

The following table summarizes the Portfolio Optimization Plan expenses by segment for the six months ended June 30, 2024:

 
(In thousands)
  
Flavors &
Extracts
    

Color
    
Corporate
& Other
    
Consolidated
  
Non-cash impairment charges – Selling and administrative expenses
  
$
-
    
$
1,129
    
$
-
    
$
1,129
  
Non-cash charges – Cost of products sold
    
408
      
(194
)
    
-
      
214
  
Employee separation – Selling and administrative expenses
    
851
      
526
      
28
      
1,405
  
Other production costs – Cost of products sold
     100       -       -       100  
Other costs – Selling and administrative expenses(1)
    
1,059
      
684
      
(27
)
    
1,716
  
Total
  
$
2,418
    
$
2,145
    
$
1
    
$
4,564
  


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

3.
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. 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 as economic conditions change. 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.

7
The following table summarizes the changes in the allowance for doubtful accounts during the three and six month periods ended June 30, 2024 and 2023:

(In thousands)
Three Months Ended June 30, 2024
  
Allowance for
Doubtful Accounts
  
Balance at March 31, 2024
  
$
3,882
  
Provision for expected credit losses
    
496
  
Accounts written off
    
(5
)
Translation and other activity
    
(98
)
Balance at June 30, 2024
  
$
4,275
  

(In thousands)
Three Months Ended June 30, 2023
  
Allowance for
Doubtful Accounts
  
Balance at March 31, 2023
  
$
4,045
  
Provision for expected credit losses
    
371
  
Accounts written off
    
(193
)
Translation and other activity
    
70
Balance at June 30, 2023
  
$
4,293
  

(In thousands)
Six Months Ended June 30, 2024
  
Allowance for
Doubtful Accounts
  
Balance at December 31, 2023
  
$
4,373
  
Provision for expected credit losses
    
803
  
Accounts written off
    
(752
)
Translation and other activity
    
(149
)
Balance at June 30, 2024
  
$
4,275
  

(In thousands)
Six Months Ended June 30, 2023
  
Allowance for
Doubtful Accounts
  
Balance at December 31, 2022
  
$
4,436
  
Provision for expected credit losses
    
491
  
Accounts written off
     (807 )
Translation and other activity
     173
Balance at June 30, 2023
   $ 4,293  

4.
Inventories
 
At June 30, 2024, and December 31, 2023, inventories included finished and in-process products totaling $407.1 million and $437.1 million, respectively, and raw materials and supplies of $146.4 million and $161.3 million, respectively.

5.
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 June 30, 2024 and December 31, 2023. The net fair value of the forward exchange contracts based on current pricing obtained for comparable derivative products (Level 2 inputs) was a liability of $0.1 million and an asset of $1.0 million as of June 30, 2024 and December 31, 2023, 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 June 30, 2024 and December 31, 2023, was $634.7 million and $645.2 million, respectively. The fair value of the long-term debt at June 30, 2024 and December 31, 2023, was $638.3 million and $653.7 million, respectively.

6.
Segment Information

The Company evaluates performance based on operating income before share-based compensation; 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.

8
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, share-based compensation, 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, 2024:
                              
Revenue from external customers
  
$
202,020
    
$
162,925
    
$
38,580
    
$
-
    
$
403,525
  
Intersegment revenue
    
7,193
      
4,775
      
-
      
-
      
11,968
  
Total revenue
  
$
209,213
    
$
167,700
    
$
38,580
    
$
-
    
$
415,493
  
                                         
Operating income (loss)
  
$
26,209
    
$
31,502
    
$
7,880
    
$
(15,934
)
  
$
49,657
  
Interest expense
    
-
      
-
      
-
      
7,653
      
7,653
  
Earnings (loss) before income taxes
  
$
26,209
    
$
31,502
    
$
7,880
    
$
(23,587
)
  
$
42,004
  
                                         
Three months ended June 30, 2023:
                                        
Revenue from external customers
  
$
181,752
    
$
156,532
    
$
36,029
    
$
-
    
$
374,313
  
Intersegment revenue
    
6,532
      
3,931
      
-
      
-
      
10,463
  
Total revenue
  
$
188,284
    
$
160,463
    
$
36,029
    
$
-
    
$
384,776
  
                                         
Operating income (loss)
  
$
24,456
    
$
29,217
    
$
7,575
    
$
(9,657
)
  
$
51,591
  
Interest expense
    
-
      
-
      
-
      
6,352
      
6,352
  
Earnings (loss) before income taxes
  
$
24,456
    
$