Annual report pursuant to Section 13 and 15(d)

BUSINESS SEGMENTS

v3.22.0.1
BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
NOTE 18: BUSINESS SEGMENTS
The Company has two reportable segments: Branded CPG and Flavors & Ingredients. In addition, beginning with the first quarter of 2021, the Company’s corporate office functions are now reported and included under Corporate. Corporate is not a reportable or operating segment but is included for reconciliation purposes and includes the costs for the corporate office administrative activities as well as transaction-related and other costs. Certain prior year amounts have been reclassified to conform to the current presentation. The Company does not present assets by reportable segments as they are not reviewed by the Chief Operating Decision Maker for purposes of assessing segment performance and allocating resources.
The following table presents selected financial information relating to the Company’s business segments (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020		 Year Ended December 31, 2019
Product revenues, net
Branded CPG $ 389,174  $ 96,857  $ 80,749  $ 165,863 
Flavors & Ingredients 104,799  50,311  47,579  106,260 
Total product revenues, net $ 493,973  $ 147,168  $ 128,328  $ 272,123 
Operating income (loss)
Branded CPG $ 34,918  $ 13,463  $ (5,055) $ 19,800 
Flavors & Ingredients 21,860  (2,645) (23,718) 19,396 
56,778  10,818  (28,773) 39,196 
Corporate (33,962) (16,924) (9,408) (9,520)
Total operating income (loss) $ 22,816  $ (6,106) $ (38,181) $ 29,676 
The following table presents geographic information based upon revenues of the Company’s major geographic markets (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020		 Year Ended December 31, 2019
North America $ 318,958  $ 63,386  $ 54,253  $ 104,788 
Europe 96,013  45,608  42,776  93,508 
India, Middle East and Africa 14,801  6,996  3,959  12,888 
Asia-Pacific 51,598  24,350  20,834  46,845 
Latin America 12,603  6,828  6,506  14,094 
Total product revenues, net $ 493,973  $ 147,168  $ 128,328  $ 272,123 
The Company has a large and diverse customer base, which includes numerous customers located in foreign countries. Branded CPG’s combined sales to a single customer accounted for 10.6% of total sales in 2021. No single unaffiliated customer accounted for more than 10% of total sales in 2020. With the exception of the United States, no one country represented more than 10% of the Company’s net sales.
The Company has an exclusive supply contract to purchase the output of licorice extract and certain licorice derivatives from a manufacturer with facilities in Uzbekistan. For the year ended December 31, 2021, the Company’s purchases from this supplier totaled approximately $15.6 million, representing 41.8% of the Company’s licorice raw materials purchases for the year.
Long-lived assets are as follows (in thousands):
December 31, 2021 December 31, 2020
Long-Lived Assets*
United States $ 24,327  $ 14,798 
China 15,620  14,207 
Czech Republic 6,074  6,070 
France 11,353  11,076 
Other Foreign Countries 1,129  1,134 
Total $ 58,503  $ 47,285 
*Long-lived assets consist of property, plant and equipment, net