Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-4858 | |
Entity Registrant Name | INTERNATIONAL FLAVORS & FRAGRANCES INC | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 13-1432060 | |
Entity Address, Address Line One | 521 West 57th Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10019 | |
City Area Code | 212 | |
Local Phone Number | 765-5500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 254,838,017 | |
Entity Central Index Key | 0000051253 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Other Address | ||
Entity Information [Line Items] | ||
Entity Address, Address Line One | 200 Powder Mill Road | |
Entity Address, City or Town | Wilmington | |
Entity Address, State or Province | DE | |
Entity Address, Postal Zip Code | 19803 | |
Common Stock, par value 12 1/2¢ per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value 12 1/2¢ per share | |
Trading Symbol | IFF | |
Security Exchange Name | NYSE | |
1.750% Senior Notes due 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.750% Senior Notes due 2024 | |
Trading Symbol | IFF 24 | |
Security Exchange Name | NYSE | |
1.800% Senior Notes due 2026 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.800% Senior Notes due 2026 | |
Trading Symbol | IFF 26 | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 657 | $ 711 |
Restricted cash | 4 | 4 |
Trade receivables | 2,160 | 1,906 |
Inventories: | ||
Raw materials | 1,002 | 854 |
Work in process | 311 | 287 |
Finished goods | 1,482 | 1,375 |
Total Inventories | 2,795 | 2,516 |
Assets held for sale | 1,141 | 1,122 |
Prepaid expenses and other current assets | 750 | 728 |
Total Current Assets | 7,507 | 6,987 |
Property, plant and equipment, at cost | 6,184 | 6,161 |
Accumulated depreciation | (1,889) | (1,793) |
Total Property Plant and Equipment | 4,295 | 4,368 |
Goodwill | 16,298 | 16,414 |
Other intangible assets, net | 10,250 | 10,506 |
Operating lease right-of-use assets | 743 | 767 |
Other assets | 654 | 616 |
Total Assets | 39,747 | 39,658 |
Current Liabilities: | ||
Bank borrowings, overdrafts, and current portion of long-term debt | 308 | 308 |
Commercial paper | 631 | 324 |
Accounts payable | 1,629 | 1,532 |
Accrued payroll and bonus | 259 | 335 |
Dividends payable | 202 | 201 |
Liabilities held for sale | 87 | 101 |
Other current liabilities | 916 | 832 |
Total Current Liabilities | 4,032 | 3,633 |
Long-term debt | 10,738 | 10,768 |
Retirement liabilities | 378 | 385 |
Deferred income taxes | 2,454 | 2,518 |
Operating lease liability | 653 | 670 |
Other liabilities | 426 | 462 |
Total Other Liabilities | 14,649 | 14,803 |
Commitments and Contingencies | ||
Redeemable noncontrolling interests | 101 | 105 |
Shareholders' Equity: | ||
Common Stock, Value, Issued | 35 | 35 |
Capital in excess of par value | 19,823 | 19,826 |
Retained earnings | 3,683 | 3,641 |
Accumulated other comprehensive loss | $ (1,622) | $ (1,423) |
Treasury Stock, Shares | 20,921,882 | 21,152,645 |
Treasury Stock, Value | $ (986) | $ (997) |
Total Shareholders’ Equity | 20,933 | 21,082 |
Noncontrolling interest | 32 | 35 |
Total Shareholders’ Equity including Noncontrolling interest | 20,965 | 21,117 |
Total Liabilities and Shareholders’ Equity | $ 39,747 | $ 39,658 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Trade receivables allowances | $ 69 | $ 46 |
Common stock, par value, in dollars per share | $ 0.125 | $ 0.125 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 275,726,629 | 275,726,629 |
Common stock, shares outstanding | 254,804,747 | 254,573,984 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 3,226 | $ 2,465 |
Cost of goods sold | 2,081 | 1,711 |
Gross profit | 1,145 | 754 |
Research and development expenses | 157 | 143 |
Selling and administrative expenses | 459 | 451 |
Amortization of acquisition-related intangibles | 186 | 152 |
Restructuring and other charges | 2 | 4 |
Operating profit | 341 | 4 |
Interest expense | 72 | 65 |
Other income, net | (16) | (7) |
Income (loss) before taxes | 285 | (54) |
Provision for (benefit from) income taxes | 39 | (14) |
Net income (loss) | 246 | (40) |
Net income attributable to noncontrolling interests | 2 | 2 |
Net income (loss) attributable to IFF stockholders | 244 | (42) |
Other comprehensive loss, after tax: | ||
Foreign currency translation adjustments | (199) | (417) |
Gains on derivatives qualifying as hedges | 0 | 4 |
Pension and postretirement liability adjustment | 0 | 9 |
Net current period other comprehensive income (loss) | (199) | (404) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 47 | (444) |
Comprehensive income (loss) attributable to IFF stockholders | $ 45 | $ (446) |
Net income per share - basic (in dollars per share) | $ 0.96 | $ (0.21) |
Net income per share - diluted (in dollars per share) | $ 0.96 | $ (0.21) |
Average number of shares outstanding - basic (in shares) | 255 | 206 |
Average number of shares outstanding - diluted (in shares) | 255 | 206 |
Dividends declared per share, in dollars per share | $ 0.79 | $ 0.77 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 246 | $ (40) |
Adjustments to reconcile to net cash (used in) provided by operating activities | ||
Depreciation and amortization | 303 | 242 |
Deferred income taxes | (65) | (86) |
Stock-based compensation | 9 | 11 |
Pension contributions | (8) | (9) |
Amortization of inventory step-up | 0 | 182 |
Changes in assets and liabilities, net of acquisitions: | ||
Trade receivables | (272) | (175) |
Inventories | (311) | (64) |
Accounts payable | 178 | 250 |
Accruals for incentive compensation | (101) | (22) |
Other current payables and accrued expenses | 39 | 48 |
Other assets/liabilities, net | (22) | 21 |
Net cash (used in) provided by operating activities | (4) | 358 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (132) | (93) |
Additions to intangible assets | (2) | 0 |
Proceeds from disposal of assets | 2 | 1 |
Cash acquired | 11 | 207 |
Net cash (used in) provided by investing activities | (121) | 115 |
Cash flows from financing activities: | ||
Cash dividends paid to shareholders | (201) | (82) |
Increase (decrease) in revolving credit facility and short-term borrowings | 1 | (104) |
Proceeds from issuance of commercial paper (maturities after three months) | 155 | 0 |
Repayments of commercial paper (maturities after three months) | (75) | 0 |
Net borrowings of commercial paper (maturities less than three months) | 227 | 0 |
Repayments of long-term debt | 0 | (12) |
Contingent consideration paid | 0 | (14) |
Purchases of noncontrolling interest | (6) | 0 |
Proceeds from issuance of stock in connection with stock options | 7 | 3 |
Employee withholding taxes paid | (13) | (6) |
Net cash provided by (used in) financing activities | 95 | (215) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (24) | (37) |
Net change in cash, cash equivalents and restricted cash | (54) | 221 |
Cash, cash equivalents and restricted cash at beginning of year | 716 | 660 |
Cash, cash equivalents and restricted cash at end of period | 662 | 881 |
Supplemental Disclosures: | ||
Interest paid, net of amounts capitalized | 45 | 42 |
Income taxes paid | 78 | 36 |
Accrued capital expenditures | $ 64 | $ 21 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY - USD ($) $ in Millions | Total | Common stock | Capital in excess of par value | Retained earnings | Accumulated other comprehensive (loss) income | Treasury stock | Non-controlling interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock, shares issued | 128,526,137 | ||||||
Treasury Stock, Shares | (21,588,147) | ||||||
Beginning Balance at Dec. 31, 2020 | $ 6,322 | $ 16 | $ 3,853 | $ 4,156 | $ (698) | $ (1,017) | $ 12 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (41) | (42) | 1 | ||||
Cumulative translation adjustment | (417) | (417) | |||||
Gains (losses) on derivatives qualifying as hedges; net of tax | 4 | 4 | |||||
Pension and postretirement net liability | 9 | 9 | |||||
Cash dividends declared | (192) | (192) | |||||
Stock options/SSARs | 6 | 1 | $ 5 | ||||
Stock options/SSARs, shares | 98,729 | ||||||
Vested restricted stock units and awards | 0 | (4) | $ 4 | ||||
Vested restricted stock units and awards, shares | 82,461 | ||||||
Impact of N&B Merger | $ 15,980 | 18 | 15,936 | 26 | |||
Impact of N&B Merger (in shares) | 141,740,461 | ||||||
Stock-based compensation | $ 11 | 11 | |||||
Redeemable NCI | (1) | (1) | |||||
Ending Balance at Mar. 31, 2021 | $ 21,681 | 34 | 19,796 | 3,922 | (1,102) | $ (1,008) | 39 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock, shares issued | 270,266,598 | ||||||
Treasury Stock, Shares | (21,406,957) | ||||||
Common stock, shares issued | 275,726,629 | ||||||
Treasury Stock, Shares | (21,152,645) | ||||||
Beginning Balance at Dec. 31, 2021 | $ 21,117 | 35 | 19,826 | 3,641 | (1,423) | (997) | 35 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 246 | 244 | 2 | ||||
Cumulative translation adjustment | (199) | (199) | |||||
Gains (losses) on derivatives qualifying as hedges; net of tax | 0 | ||||||
Cash dividends declared | (202) | (202) | |||||
Stock options/SSARs | 13 | 9 | $ 4 | ||||
Stock options/SSARs, shares | 80,153 | ||||||
Vested restricted stock units and awards | (15) | (22) | $ 7 | ||||
Vested restricted stock units and awards, shares | 150,610 | ||||||
Stock-based compensation | 9 | 9 | |||||
Purchases of NCI | (4) | 1 | (5) | ||||
Ending Balance at Mar. 31, 2022 | $ 20,965 | $ 35 | $ 19,823 | $ 3,683 | $ (1,622) | $ (986) | $ 32 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock, shares issued | 275,726,629 | ||||||
Treasury Stock, Shares | (20,921,882) |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Gains on derivatives qualifying as hedges; tax | $ (1) |
Pension liability and postretirement adjustment; tax | $ 1 |
Dividends declared per share, in dollars per share | $ / shares | $ 0.77 |
Statement of Comprehensive Inco
Statement of Comprehensive Income (Statement) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) Attributable to Parent | $ 244 | $ (42) |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations International Flavors & Fragrances Inc. and its subsidiaries (the “Registrant,” “IFF,” “the Company,” “we,” “us” and “our”) is a leading creator and manufacturer of food, beverage, health & biosciences, scent and pharma solutions and complementary adjacent products, including cosmetic active and natural health ingredients, which are used in a wide variety of consumer products. Our products are sold principally to manufacturers of perfumes and cosmetics, hair and other personal care products, soaps and detergents, cleaning products, dairy, meat and other processed foods, beverages, snacks and savory foods, sweet and baked goods, sweeteners, dietary supplements, food protection, infant and elderly nutrition, functional food, and pharmaceutical excipients and oral care products. Basis of Presentation The accompanying interim Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the related notes included in our 2021 Annual Report on Form 10-K (“2021 Form 10-K”). The interim Consolidated Financial Statements are unaudited. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted, if not materially different from the 2021 Form 10-K. The year-end balance sheet data included in this Form 10-Q was derived from the audited financial statements. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim Consolidated Financial Statements, have been made. On February 1, 2021 (the “Closing Date”), pursuant to an Agreement and Plan of Merger (the “Merger Agreement”), the Company completed the combination (the "Merger") of IFF and DuPont de Nemours, Inc (“DuPont”) nutrition and biosciences business (the “N&B Business”), which had been transferred to Nutrition and Biosciences, Inc., a Delaware corporation and wholly owned subsidiary of DuPont ("N&B") in a Reverse Morris Trust transaction. See Note 3 for additional information. As a result, the Company’s Consolidated Financial Statements for the three months ended March 31, 2022 reflect the results of N&B for the full three months in the first quarter of 2022, whereas the three months ended March 31, 2021 reflect only two months of results of N&B in the first quarter of 2021. Reporting Periods The Company uses a calendar year of the twelve-month period from January 1 to December 31. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. The inputs into our judgments and estimates take into account the current economic implications of the novel coronavirus ("COVID-19") and the potential impairment of assets arising from the recent events in Russia and Ukraine on our critical and significant accounting estimates, including estimates associated with future cash flows that are used in assessing the risk of impairment of certain long-lived assets. Actual results could differ from those estimates. Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash reported in the Company's balance sheet as of March 31, 2022, December 31, 2021, March 31, 2021 and December 31, 2020 were as follows: (DOLLARS IN MILLIONS) March 31, 2022 December 31, 2021 March 31, 2021 December 31, 2020 Current assets Cash and cash equivalents $ 657 $ 711 $ 872 $ 650 Restricted cash 4 4 7 7 Noncurrent assets Restricted cash included in Other assets 1 1 2 3 Cash, cash equivalents and restricted cash $ 662 $ 716 $ 881 $ 660 Accounts Receivable The Company has various factoring agreements in the U.S. and The Netherlands under which it can factor up to approximately $250 million in receivables. In addition, the Company has factoring agreements sponsored by certain customers. Under all of the arrangements, the Company sells the receivables on a non-recourse basis to unrelated financial institutions and accounts for the transactions as a sale of receivables. The applicable receivables are removed from the Company's Consolidated Balance Sheets when the cash proceeds are received by the Company. The impact on cash provided by operations from participating in these programs was a decrease of $45 million for the three months ended March 31, 2022 and an increase of $29 million for the three months ended March 31, 2021. The cost of participating in these programs was approximately $1 million for both the three months ended March 31, 2022 and 2021. Revenue Recognition The Company recognizes revenue when control of the promised goods is transferred to its customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods. Sales, value added, and other taxes the Company collects are excluded from revenues. The Company receives payment in accordance with standard customer terms. See Note 11 for further details on revenues disaggregated by segment. Contract Assets and Liabilities With respect to a small number of contracts for the sale of compounds, the Company has an “enforceable right to payment for performance to date” and as the products do not have an alternative use, the Company recognizes revenue for these contracts over time and records a contract asset using the output method. The output method recognizes revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract. As of March 31, 2022 and December 31, 2021, the Company's gross accounts receivable was $2.229 billion and $1.952 billion, respectively. The Company's contract assets and contract liabilities as of March 31, 2022 and December 31, 2021 were not material. Expected Credit Losses The Company is exposed to credit losses primarily through its sales of products. To determine the appropriate allowance for expected credit losses, the Company considers certain credit quality indicators, such as aging, collection history, and creditworthiness of debtors. Regional and Global Credit committees review and approve specific customer allowance reserves. The allowance for expected credit losses is primarily based on two primary factors: i) the aging of the different categories of trade receivables, and ii) a specific reserve for accounts identified as uncollectible. The Company also considers current and future economic conditions in the determination of the allowance. At March 31, 2022, the Company reported $2.160 billion of trade receivables, net of allowances of $69 million. Based on the aging analysis as of March 31, 2022, approximately 91% of our accounts receivable were current based on the payment terms of the invoice. Receivables that were past due by over 365 days account for approximately 1% of our accounts receivable. The following is a rollforward of the Company's allowances for bad debts for the three months ended March 31, 2022: (DOLLARS IN MILLIONS) Allowances for Balance at December 31, 2021 $ 46 Bad debt expense (1) 23 Write-offs (1) Foreign exchange 1 Balance at March 31, 2022 $ 69 _______________________ (1) The bad debt expense included approximately $20 million related to expected credit losses on receivables from customers located in Russia and Ukraine (for both export and domestic sales) due to recent events in those countries. The Company will continue to evaluate its credit exposure related to Russia and Ukraine. Long-Lived Assets Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is calculated on a straight-line basis, principally over the following estimated useful lives: buildings and improvements, 1 to 50 years; machinery and equipment, 1 to 40 years; information technology hardware and software, 1 to 23 years; and leasehold improvements which are included in buildings and improvements, the estimated life of the improvements or the remaining term of the lease, whichever is shorter. Finite-Lived Intangible Assets Finite-lived intangible assets include customer relationships, patents, trade names, technological know-how and other intellectual property valued at acquisition and amortized on a straight-line basis over the following estimated useful lives: customer relationships, 10 to 27 years; patents, 11 to 15 years; trade names, 4 to 28 years; and technological know-how, 5 to 28 years. The Company reviews long-lived assets for impairment when events or changes in business conditions indicate that their carrying value may not be recovered. An estimate of undiscounted future cash flows produced by an asset or group of assets is compared to the carrying value to determine whether impairment exists. If assets are determined to be impaired, the loss is measured based on an estimate of fair value using various valuation techniques, including a discounted estimate of future cash flows. Recent Events in Russia and Ukraine The Company maintains operations in both Russia and Ukraine and, additionally, exports products to customers in Russia and Ukraine from operations outside the region. In response to the events in Ukraine, the Company has limited the production and supply of ingredients in and to Russia to only those that meet the essential needs of people, including food, hygiene and medicine. During the first quarter of 2022, in connection with the events in Ukraine (including the impact of the invasion and the sanctions placed on Russia), the Company determined that certain assets should be tested for recoverability. In order to perform the test for recoverability, the Company prepared an estimate of the undiscounted cash flows for the applicable asset groups. The total amount of assets in the applicable asset groups identified, and to be tested for recoverability, was approximately $228 million, or less than 1% of total assets, of which approximately $210 million related to Russia. Based on the projections made, it was determined that no impairment existed in any of the asset groups as of March 31, 2022. The undiscounted cash flows were prepared under the assumption that the Company’s operations in Russia and Ukraine would continue to operate and that the Company would be able to continue to manufacture and sell products within Russia, subject to limiting our operations to servicing essential needs. The Company may incur impairment of such assets in the future if these assumptions change or circumstances worsen. As indicated above, the Company also recorded a charge of approximately $20 million related to expected credit losses on receivables from customers located in Russia and Ukraine (for both export and domestic sales) due to recent events in those countries. The Company will continue to evaluate its credit exposure related to Russia and Ukraine. Recent Accounting Pronouncements In November 2021, the FASB issued Accounting Standards Update ("ASU") 2021-10, "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance." The ASU requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This guidance is effective for all entities for annual periods beginning after December 15, 2021 and early adoption is permitted. The Company is currently evaluating the impact of this guidance, but does not expect this guidance to have a material impact on its Consolidated Financial Statements. In October 2021, the FASB issued Accounting Standards Update ("ASU") 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." The ASU is intended to provide specific guidance on how to recognize and measure acquired contract assets and liabilities from revenue contracts in a business combination. An acquirer needs to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. To achieve this, an acquirer may assess how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this guidance, but does not expect this guidance to have a material impact on its Consolidated Financial Statements. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NET INCOME (LOSS) PER SHARE A reconciliation of the shares used in the computation of basic and diluted net income (loss) per share is as follows: Three Months Ended March 31, (AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS) 2022 2021 Net Income (Loss) Net income (loss) attributable to IFF stockholders $ 244 $ (42) Adjustment related to (increase) decrease in redemption value of redeemable noncontrolling interests in excess of earnings allocated — (1) Net income (loss) available to IFF stockholders $ 244 $ (43) Shares Weighted average common shares outstanding (basic) (1) 255 206 Weighted average shares assuming dilution (diluted) 255 206 Net Income (Loss) per Share Net income (loss) per share - basic $ 0.96 $ (0.21) Net income (loss) per share - diluted 0.96 (0.21) _______________________ (1) On September 15, 2021, additional shares of IFF's common stock were issued in settlement of the stock purchase contract ("SPC") portion of the tangible equity units ("TEUs"). For the three months ended March 31, 2021, the TEUs were assumed to be outstanding at the minimum settlement amount for basic earnings per share ("EPS"). See below for additional information. As of the effective time of the Merger, each issued and outstanding share of common stock of N&B (except for shares of common stock of N&B held by N&B as treasury stock or by DuPont, which were canceled and ceased to exist and no consideration was delivered in exchange therefor) was converted into the right to receive one share of common stock of IFF. The Merger was completed in exchange for 141,740,461 shares of IFF common stock, par value $0.125 per share (or cash payment in lieu of fractional shares), which had been approved in the special shareholder meeting that occurred on August 27, 2020 where IFF shareholders voted to approve the issuance of shares of IFF common stock in connection with the N&B Transaction, pursuant to the Merger Agreement. The shares issued in the Merger represented approximately 55.4% of the common stock of IFF on a fully diluted basis, after giving effect to the Merger, as of February 1, 2021. The Company declared a quarterly dividend to its shareholders of $0.79 and $0.77 per share for the three months ended March 31, 2022 and 2021, respectively. There were no stock options or stock-settled appreciation rights (“SSARs”) excluded from the computation of diluted net income per share for the three months ended March 31, 2022. There were approximately one million potentially dilutive securities excluded from the computation of diluted net income (loss) per share for the three months ended March 31, 2021 because there was a net loss attributable to IFF for the period and, as such, the inclusion of these securities would have been anti-dilutive. The Company issued 16,500,000 TEUs, consisting of a prepaid SPC and a senior amortizing note, for net proceeds of $800 million on September 17, 2018. On September 14, 2021, the Company notified holders of the TEUs that the final settlement rate in respect of each SPC was 0.330911 shares of IFF's common stock. On September 15, 2021, 5,460,031 shares of IFF's common stock were issued in settlement of the SPCs. The SPC conversion factor is based on the 20 day volume-weighted average price (“VWAP”) per share of the Company’s common stock. For purposes of calculating basic net income (loss) per share, the minimum settlement rate of 0.313400 shares per SPC on March 31, 2021 was used. For purposes of calculating diluted earnings per share, the SPCs were assumed to be settled at a conversion factor not to exceed 0.366500 shares per SPC on March 31, 2021. The Company has issued shares of purchased restricted common stock units (“PRSUs”) which contain rights to nonforfeitable dividends while these shares are outstanding and thus are considered participating securities. Such securities are required to be included in the computation of basic and diluted earnings per share pursuant to the two-class method. The Company did not present the two-class method since there was no difference between basic net income (loss) per share for both unrestricted common shareholders and PRSU shareholders for the three months ended March 31, 2022 and 2021. The difference between diluted net income per share for both unrestricted common shareholders and PRSU shareholders for the three months ended March 31, 2022 was less than $0.01 per share and there was no difference between diluted net income (loss) per share for both unrestricted common shareholders and PRSU shareholders for the three months ended March 31, 2021. In addition, the number of PRSUs outstanding as of March 31, 2022 and 2021 was not material. Net income allocated to such PRSUs was not material for the three months ended March 31, 2022 and 2021. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Transaction with N&B On February 1, 2021, IFF completed the Merger with N&B. The aggregate purchase price consideration paid to acquire N&B was $15.942 billion. Refer to Note 3 of the Company's 2021 Form 10-K for additional information. Pro Forma Financial Information The following unaudited pro forma financial information presents the combined results of operations of IFF and N&B as if the Merger had been completed as of January 1, 2020. The unaudited pro forma financial information is presented for informational purposes and is not indicative of the results of operations that would have been achieved if the Merger and related borrowings had taken place on January 1, 2020, nor are they indicative of future results. The unaudited pro forma financial information for the three months ended March 31, 2021 includes IFF results, including the post-Merger results of N&B, since February 1, 2021, and pre-Merger results of N&B for the period January 1, 2021 through January 31, 2021. The unaudited pro forma results for the three months ended March 31, 2021 were as follows: (DOLLARS IN MILLIONS) Three Months Ended March 31, 2021 Unaudited pro forma net sales $ 2,972 Unaudited pro forma net income attributable to the Company 219 The unaudited pro forma results for all periods include adjustments made to account for certain costs and transactions that would have been incurred had the Merger been completed as of January 1, 2020, including amortization charges for acquired intangibles assets, adjustments for transaction costs, adjustments for depreciation expense for property, plant and equipment, inventory step-up and adjustments to interest expense. These adjustments are net of any applicable tax impact and were included to arrive at the pro forma results above. |
Restructuring and Other Charges
Restructuring and Other Charges, Net | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges, Net | RESTRUCTURING AND OTHER CHARGES Restructuring and other charges primarily consist of separation costs for employees including severance, outplacement and other employee benefit costs ("Severance"), charges related to the write-down of fixed assets of plants to be closed ("Fixed asset write-down") and all other related restructuring ("Other") costs. All restructuring and other charges are separately stated on the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). Frutarom Integration Initiative In connection with the acquisition of Frutarom, the Company has been executing an integration plan that, among other initiatives, seeks to optimize its manufacturing network (the "Frutarom Integration Initiative"). As part of the Frutarom Integration Initiative, the Company now expects to close approximately 30 manufacturing sites with all closures targeted to occur by 2023. Since the inception of the initiative through March 31, 2022, the Company has closed 22 sites and expensed total costs of approximately $37 million. Total costs for the program are expected to be approximately $42 million including cash and non-cash items. 2019 Severance Program During the year ended December 31, 2019, the Company incurred severance charges related to approximately 190 headcount reductions, excluding those previously mentioned under the Frutarom Integration Initiative. The headcount reductions primarily related to the Scent business unit with additional amounts related to headcount reductions in all business units associated with the establishment of a new shared service center in Europe. Since the inception of the program, the Company has expensed approximately $20 million to date. N&B Merger Restructuring Liability For the three months ended March 31, 2022, the Company incurred approximately $2 million of charges related to severance. Since the inception of the restructuring activities, there have been approximately 265 headcount reductions and the Company has expensed approximately $32 million. Changes in Restructuring Liabilities Changes in restructuring liabilities during the three months ended March 31, 2022 were as follows: (DOLLARS IN MILLIONS) Balance at December 31, 2021 Additional Charges (Reversals), Net Non-Cash Charges Cash Payments Balance at March 31, 2022 Frutarom Integration Initiative Severance $ 5 $ — $ — $ — $ 5 Other (1) 3 — — (1) 2 2019 Severance Plan Severance 5 — — — 5 Other Restructuring Charges Severance 1 — — — 1 N&B Merger Restructuring Liability Severance 15 2 — (5) 12 Total restructuring and other charges $ 29 $ 2 $ — $ (6) $ 25 _______________________ (1) Other includes supplier contract termination costs, consulting and advisory fees. Restructuring liabilities are presented in "Other Current Liabilities" in the Consolidated Balance Sheets. Charges by Segment The following table summarizes the total amount of costs incurred in connection with these restructuring programs and activities by segment: Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 Nourish $ 2 $ 3 Scent — 1 Total Restructuring and other charges $ 2 $ 4 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net Goodwill and Other Intangible Assets, Net (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill Movements in goodwill attributable to each reportable segment for the three months ended March 31, 2022 were as follows: (DOLLARS IN MILLIONS) Nourish Health & Biosciences Scent Pharma Solutions Total Balance at December 31, 2021 $ 6,555 $ 6,749 $ 1,828 $ 1,282 $ 16,414 Foreign exchange (50) (42) (11) (13) (116) Balance at March 31, 2022 $ 6,505 $ 6,707 $ 1,817 $ 1,269 $ 16,298 Other Intangible Assets Other intangible assets, net consisted of the following amounts: March 31, December 31, (DOLLARS IN MILLIONS) 2022 2021 Asset Type Customer relationships $ 8,878 $ 8,935 Technological know-how 2,470 2,494 Trade names & patents 405 411 Other 50 50 Total carrying value 11,803 11,890 Accumulated Amortization Customer relationships (991) (887) Technological know-how (441) (388) Trade names & patents (76) (68) Other (45) (41) Total accumulated amortization (1,553) (1,384) Other intangible assets, net $ 10,250 $ 10,506 Amortization Amortization expense was $186 million and $152 million for the three months ended March 31, 2022 and 2021, respectively. Amortization expense for the next five years is expected to be as follows: (DOLLARS IN MILLIONS) 2022 2023 2024 2025 2026 Estimated future intangible amortization expense $ 564 $ 743 $ 742 $ 740 $ 737 |
Other Assets and Liabilities, C
Other Assets and Liabilities, Current and Noncurrent | 3 Months Ended |
Mar. 31, 2022 | |
Other Assets [Abstract] | |
Other Assets and Liabilities, Current and Noncurrent | OTHER CURRENT ASSETS AND LIABILITIES, AND OTHER ASSETS Prepaid expenses and other current assets consisted of the following amounts: (DOLLARS IN MILLIONS) March 31, 2022 December 31, 2021 Value-added tax receivable $ 196 $ 178 Income tax receivable 107 131 Prepaid expenses 328 288 Other 119 131 Total $ 750 $ 728 Other assets consisted of the following amounts: (DOLLARS IN MILLIONS) March 31, 2022 December 31, 2021 Finance lease right-of-use assets $ 20 $ 21 Deferred income taxes 111 82 Overfunded pension plans 134 136 Cash surrender value of life insurance contracts 49 52 Equity method investments 85 86 Other (1) 255 239 Total $ 654 $ 616 _______________________ (1) Includes land usage rights in China and long term deposits. Other current liabilities consisted of the following amounts: (DOLLARS IN MILLIONS) March 31, 2022 December 31, 2021 Rebates and incentives payable $ 110 $ 113 Value-added tax payable 55 50 Interest payable 70 48 Current pension and other postretirement benefit obligation 9 11 Accrued insurance (including workers’ compensation) 9 10 Restructuring and other charges 25 29 Current operating lease obligation 107 109 Current financing lease obligation 5 5 Accrued income taxes 151 94 Other accounts payable and accrued expenses payable 267 270 Other 108 93 Total $ 916 $ 832 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consisted of the following: (DOLLARS IN MILLIONS) Effective Interest Rate March 31, 2022 December 31, 2021 2022 Notes (3) 0.69 % $ 300 $ 300 2023 Notes (1) 3.30 % 300 300 2024 Euro Notes (1) 1.88 % 554 565 2025 Notes (3) 1.22 % 1,000 1,001 2026 Euro Notes (1) 1.93 % 882 900 2027 Notes (3) 1.56 % 1,217 1,218 2028 Notes (1) 4.57 % 397 397 2030 Notes (3) 2.21 % 1,510 1,511 2040 Notes (3) 3.04 % 774 775 2047 Notes (1) 4.44 % 495 494 2048 Notes (1) 5.12 % 787 786 2050 Notes (3) 3.21 % 1,572 1,572 2024 Term Loan Facility (3) 1.56 % 625 625 2026 Term Loan Facility (3) 1.94 % 625 625 Commercial paper (4) — % 631 324 Bank overdrafts and other 8 7 Total debt 11,677 11,400 Less: Short-term borrowings (2) (939) (632) Total Long-term debt $ 10,738 $ 10,768 _______________________ (1) Amount is net of unamortized discount and debt issuance costs. (2) Includes bank borrowings, commercial paper, overdrafts and current portion of long-term debt. (3) Assumed by the Company as part of the N&B Merger. (4) The effective interest rate of commercial paper issuances fluctuates as short-term interest rates and demand fluctuate, and deferred debt issuance costs are immaterial. Additionally, the effective interest rate of commercial paper is not meaningful as issuances do not materially differ from short-term interest rates. Commercial Paper During the three months ended March 31, 2022, the Company had gross issuances of $873 million and repayments of $566 million under the Commercial Paper Program. The commercial paper issued had original maturities of less than 125 days. There were no commercial paper issuances or repayments during the three months ended March 31, 2021. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | LEASES The Company has leases for corporate offices, manufacturing facilities, research and development facilities, and certain transportation and office equipment. The Company's leases have remaining lease terms of up to 50 years, some of which include options to extend the leases for up to 5 years. The components of lease expense were as follows: Three Months Ended Three Months Ended (DOLLARS IN MILLIONS) March 31, 2022 March 31, 2021 Operating lease cost $ 47 $ 32 Finance lease cost 2 1 Supplemental cash flow information related to leases was as follows: Three Months Ended Three Months Ended (DOLLARS IN MILLIONS) March 31, 2022 March 31, 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 35 $ 27 Financing cash flows for finance leases 2 1 Right-of-use assets obtained in exchange for lease obligations Operating leases 18 11 Finance leases 1 1 Operating lease right-of-use assets are presented in "Operating lease right-of-use assets" and financing lease right-of-use assets are presented in "Other Assets" in the Consolidated Balance Sheets. Operating lease liabilities are presented in "Operating lease liabilities" and financing lease liabilities are presented in "Other Liabilities" in the Consolidated Balance Sheets. Any other current liabilities related to operating and financing lease liabilities are presented in "Other Current Liabilities" in the Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Uncertain Tax Positions As of March 31, 2022, the Company had approximately $131 million of unrecognized tax benefits recorded in Other liabilities and no amounts recorded to Other current liabilities. If these unrecognized tax benefits were recognized, the effective tax rate would be affected. As of March 31, 2022, the Company had accrued interest and penalties of approximately $37 million classified in Other liabilities and no amounts classified in Other current liabilities. As of March 31, 2022, the Company’s aggregate provisions for uncertain tax positions, including interest and penalties, was approximately $168 million associated with tax positions asserted in various jurisdictions. The Company regularly repatriates earnings from non-U.S. subsidiaries. As the Company repatriates these funds to the U.S., they will be required to pay income taxes in certain U.S. states and applicable foreign withholding taxes during the period when such repatriation occurs. Accordingly, as of March 31, 2022, the Company had a deferred tax liability of approximately $87 million for the effect of repatriating the funds to the U.S., attributable to various non-U.S. subsidiaries. There is no deferred tax liability associated with non-U.S. subsidiaries where we intend to indefinitely reinvest the earnings to fund local operations and/or capital projects. The Company has ongoing income tax audits and legal proceedings which are at various stages of administrative or judicial review. In addition, the Company has open tax years with various taxing jurisdictions that range primarily from 2012 to 2021. Based on currently available information, the Company does not believe the outcome of any of these tax audits and other tax positions related to open tax years, when finalized, will have a material impact on its results of operations. The Company also has other ongoing tax audits and legal proceedings that relate to indirect taxes, such as value-added taxes, sales and use taxes and property taxes, which are discussed in Note 15. Effective Tax Rate The effective tax rate for the three months ended March 31, 2022 was 13.7% compared to 25.9% for the three months ended March 31, 2021. The quarter-over-quarter decrease was primarily due to a favorable mix of earnings and a one-time benefit associated with the proceedings of a bi-lateral advance pricing agreement. |
Stock Compensation Plans
Stock Compensation Plans | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | STOCK COMPENSATION PLANS The Company has various plans under which its officers, senior management, other key employees and directors may be granted equity-based awards. Equity awards outstanding under the plans include PRSUs, RSUs, SSARs and Long-Term Incentive Plan awards. Liability-based awards outstanding under the plans are cash-settled RSUs. Stock-based compensation expense and related tax benefits were as follows: Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 Equity-based awards $ 9 $ 11 Liability-based awards — 3 Total stock-based compensation expense 9 14 Less: Tax benefit (2) (3) Total stock-based compensation expense, after tax $ 7 $ 11 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company is organized into four reportable operating segments: Nourish, Health & Biosciences (“H&B”), Scent and Pharma Solutions. These segments align with the internal structure to manage these businesses. The Company’s Chief Operating Decision Maker regularly reviews financial information to allocate resources and assess performance utilizing these segments. Nourish is comprised of three business units, Ingredients, Flavors and Food Designs, with a diversified portfolio across natural and plant-based specialty food ingredients, flavor compounds, and savory solutions and inclusions, respectively. Ingredients provide texturizing solutions to the food industry, food protection solutions used in food and beverage products, specialty soy and pea protein with value-added formulations, emulsifiers and sweeteners. Flavors provide a range of flavor compounds and natural taste solutions that are ultimately used by IFF's customers in savory products, beverages, sweets, and dairy products. Flavors also provide value-added spices and seasoning ingredients for meat, food service, convenience, alternative protein and culinary products. Food Designs provide savory solution products such as spices, sauces, marinades and mixtures. Additionally, Food Designs provide inclusion products that help with taste and texture by, among other things, combining flavorings with fruit, vegetables, and other natural ingredients for a wide range of food products, such as health snacks, baked goods, cereals, pastries, ice cream and other dairy products. Health & Biosciences is comprised of six business units, Health, Cultures & Food Enzymes, Home & Personal Care, Animal Nutrition, Grain Processing and Microbial Control, with a biotechnology-driven portfolio of products that serve the health and wellness, food, consumer and industrial markets. Products within this portfolio range from enzymes, food cultures, probiotics and specialty ingredients for non-food applications. Health provides ingredients for dietary supplements, food and beverage, specialized nutrition and pharma. Cultures & Food Enzymes provide products that aim to serve the global demand for healthy, natural, clean label and fermented food for fresh dairy, cheese, bakery and brewing products. This is accomplished by providing IFF's customers with products that allow for extended shelf life and stability, which help to improve customers' products and performance. The business unit's enzyme solution also allows IFF's customers to provide low sugar, high fiber and lactose-free dairy products. Home & Personal Care produces enzymes for detergents, cleaning and textile processing products in the laundry, dishwashing, textiles and industrials and personal care markets that help to enhance product and process performances. Animal Nutrition produces enzymes that help to improve the product and process performance of animal feed products, which aim to lessen environmental impact by reducing farm waste. Grain Processing produces enzymes for biofuel production and carbohydrate processing. Microbial Control produces biocides for controlling microbial populations for oil and gas production, home and personal care and industrial preservation markets. Scent is comprised of (1) Fragrance Compounds, which are ultimately used by our customers in two broad categories: Fine Fragrances, including perfumes and colognes, and Consumer Fragrances, including fragrance compounds for personal care (e.g., soaps), household products (e.g., detergents and cleaning agents) and beauty care, including toiletries; (2) Fragrance Ingredients, consisting of synthetic and natural ingredients that can be combined with other materials to create unique fine fragrance and consumer fragrance compounds; and (3) Cosmetic Active Ingredients, consisting of active and functional ingredients, botanicals and delivery systems to support our customers’ cosmetic and personal care product lines. Major fragrance customers include the cosmetics industry, including perfume and toiletries manufacturers, and the household products industry, including manufacturers of soaps, detergents, fabric care, household cleaners and air fresheners. Pharma Solutions is comprised of a vast portfolio including cellulosics and seaweed-based pharmaceutical excipients, used to improve the functionality and delivery of active pharmaceutical ingredients, including controlled or modified drug release formulations, and enabling the development of more effective pharmaceutical finished dosage formats. Pharma Solutions excipients are used in prescription and over-the-counter pharmaceuticals and dietary supplements. Pharma Solutions products also serve a variety of other specialty and industrial end-uses including coatings, inks, electronics, agriculture, and consumer products. Reportable segment information was as follows: Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 Net sales: Nourish $ 1,731 $ 1,308 Health & Biosciences 661 426 Scent 585 569 Pharma Solutions 249 162 Consolidated $ 3,226 $ 2,465 Segment Adjusted Operating EBITDA: Nourish $ 329 $ 270 Health & Biosciences 192 128 Scent 116 128 Pharma Solutions 65 43 Total 702 569 Depreciation & Amortization (303) (242) Interest Expense (72) (65) Other income, net 16 7 Restructuring and Other Charges (2) (4) Shareholder Activism Related Costs (a) (3) (7) Business Divestiture Costs (b) (30) — Employee Separation Costs (c) (4) (3) Frutarom Acquisition Related Costs (d) (1) — N&B Inventory Step-Up Costs — (182) N&B Transaction Related Costs (e) — (89) Integration Related Costs (f) (18) (38) Income (Loss) Before Taxes $ 285 $ (54) _______________________ (a) Represents shareholder activist related costs, primarily professional fees. (b) Represents costs related to the Company's planned sales of businesses, primarily legal and professional fees. (c) Represents costs related to severance, including accelerated stock compensation expense, for certain employees and executives who have been separated or will separate from the Company. (d) Represents transaction-related costs and expenses related to the acquisition of Frutarom. (e) Represents transaction costs and expenses related to the transaction with N&B, primarily includes legal and professional fees. (f) Represents costs related to integration activities since 2018, primarily for Frutarom and N&B. For 2022, represents costs primarily related to external consulting fees and internal integration costs, including salaries. For 2021, represents costs primarily related to performance stock awards and consulting fees for advisory services. Net sales, which are attributed to individual regions based upon the destination of product delivery, were as follows: Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 Europe, Africa and Middle East $ 1,128 $ 873 Greater Asia 744 587 North America 1,002 722 Latin America 352 283 Consolidated $ 3,226 $ 2,465 Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 Net sales related to the U.S. $ 901 $ 654 Net sales attributed to all foreign countries 2,325 1,811 No non-U.S. country had net sales greater than 6% of total consolidated net sales for the three months ended March 31, 2022 and 2021. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefits | EMPLOYEE BENEFITS Pension and other defined contribution retirement plan expenses included the following components: (DOLLARS IN MILLIONS) U.S. Plans Three Months Ended March 31, 2022 2021 Interest cost on projected benefit obligation (2) $ 4 $ 3 Expected return on plan assets (2) (5) (5) Net amortization and deferrals (2) 2 2 Net periodic benefit (income) cost $ 1 $ — (DOLLARS IN MILLIONS) Non-U.S. Plans Three Months Ended March 31, 2022 2021 Service cost for benefits earned (1) $ 9 $ 10 Interest cost on projected benefit obligation (2) 5 2 Expected return on plan assets (2) (11) (12) Net amortization and deferrals (2) 3 5 Net periodic benefit (income) cost $ 6 $ 5 _______________________ (1) Included as a component of Operating profit. (2) Included as a component of Other income, net. The Company expects to contribute a total of $5 million to its U.S. pension plans and a total of $33 million to its non-U.S. pension plans during 2022. During the three months ended March 31, 2022, no contributions were made to the qualified U.S. pension plans, $7 million of contributions were made to the non-U.S. pension plans, and $1 million of benefit payments were made with respect to the Company's non-qualified U.S. pension plan. (Income) expense recognized for postretirement benefits other than pensions included the following components: Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 Net amortization and deferrals $ (1) $ (1) Total postretirement benefit (income) expense $ (1) $ (1) The Company expects to contribute $4 million to its postretirement benefits other than pension plans during 2022. In the three months ended March 31, 2022, $1 million of contributions were made. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS Fair Value Accounting guidance on fair value measurements specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs create the following fair value hierarchy: • Level 1 — Quoted prices for identical instruments in active markets. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable . This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company determines the fair value of structured liabilities (where performance is linked to structured interest rates, inflation or currency risks) using the London Interbank Offer Rate ("LIBOR") swap curve and forward interest and exchange rates at period end. Such instruments are classified as Level 2 based on the observability of significant inputs to the model. The Company does not have any instruments classified as Level 3, other than those included in pension asset trusts as discussed in Note 15 of the Company's 2021 Form 10-K. These valuations take into consideration the Company's credit risk and its counterparties’ credit risk. The estimated change in the fair value of these instruments due to such changes in its own credit risk (or instrument-specific credit risk) was not material as of March 31, 2022. The carrying values and the estimated fair values of financial instruments at March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 December 31, 2021 (DOLLARS IN MILLIONS) Carrying Value Fair Value Carrying Value Fair Value LEVEL 1 Cash and cash equivalents (1) $ 657 $ 657 $ 711 $ 711 2025 Notes (5) 1,000 924 1,001 968 2027 Notes (5) 1,217 1,089 1,218 1,180 2030 Notes (5) 1,510 1,333 1,511 1,466 2040 Notes (5) 774 662 775 762 2050 Notes (5) 1,572 1,307 1,572 1,556 LEVEL 2 Credit facilities and bank overdrafts (2) 8 8 7 7 Derivatives Derivative liabilities (3) 8 8 7 7 Commercial paper (2) 631 631 324 324 Long-term debt: (4) 2022 Notes 300 298 300 300 2023 Notes 300 301 300 308 2024 Euro Notes 554 561 565 585 2026 Euro Notes 882 888 900 960 2028 Notes 397 415 397 452 2047 Notes 495 494 494 585 2048 Notes 787 872 786 1,026 2024 Term Loan Facility (6) 625 625 625 625 2026 Term Loan Facility (6) 625 625 625 625 _______________________ (1) The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments. (2) The carrying amount approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments. (3) The carrying amount approximates fair value as the instruments are marked-to-market and held at fair value on the Consolidated Balance Sheets. (4) The fair value of the Company's long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on its own credit risk. (5) The fair value of the Notes is based on market quoted price as there is an active market for the Notes and observable market data and inputs. (6) The carrying amount approximates fair value as the Term Loans were assumed at fair value and the interest rate is reset frequently based on current market rates. Derivatives Foreign Currency Forward Contracts The Company periodically enters into foreign currency forward contracts with the objective of reducing exposure to cash flow volatility associated with its intercompany loans, foreign currency receivables and payables and anticipated purchases of certain raw materials used in operations. These contracts generally involve the exchange of one currency for a second currency at a future date, have maturities not exceeding twelve months and are with counterparties which are major international financial institutions. Commodity Contracts The Company utilizes options, futures and swaps that are not designated as hedging instruments to reduce exposure to commodity price fluctuations on purchases of inventory such as soybeans, soybean oil and soybean meal. Cash Flow Hedges The Company maintains several forward currency contracts which qualified as cash flow hedges. The objective of these hedges is to protect against the currency risk associated with forecasted U.S. dollar ("USD") denominated raw material purchases made by Euro ("EUR") functional currency entities which result from changes in the EUR/USD exchange rate. The effective portions of cash flow hedges are recorded in other comprehensive income ("OCI") as a component of Gains on derivatives qualifying as hedges in the accompanying Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). Realized gains/(losses) in accumulated other comprehensive income ("AOCI") related to cash flow hedges of raw material purchases are recognized as a component of Cost of goods sold in the accompanying Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) in the same period as the related costs are recognized. Hedges Related to Issuances of Debt Subsequent to the issuance of the 2021 Euro Notes and 2026 Euro Notes during the third quarter of 2018, the Company designated the debt as a hedge of a portion of its net European investments. Accordingly, the change in the value of the debt that is attributable to foreign exchange movements is recorded in OCI as a component of foreign currency translation adjustments in the accompanying Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). Subsequent to the issuance of the 2024 Euro Notes during the first quarter of 2016, the Company designated the debt as a hedge of a portion of its net European investments. Accordingly, the change in the value of the debt that is attributable to foreign exchange movements is recorded in OCI as a component of foreign currency translation adjustments in the accompanying Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). Cross Currency Swaps During the first quarter of 2022, the Company entered into twelve EUR/USD cross currency swaps, with a notional value of $1.400 billion that mature through November 2030. The swaps all qualified as net investment hedges in order to mitigate a portion of the Company's net European investments from foreign currency risk. As of March 31, 2022, the fourteen remaining swaps were in a net liability position with an aggregate fair value of $6 million which was classified as other current liabilities. Changes in fair value related to cross currency swaps are recorded in OCI. The following table shows the notional amount of the Company’s derivative instruments outstanding as of March 31, 2022 and December 31, 2021: (DOLLARS IN MILLIONS) March 31, 2022 December 31, 2021 Foreign currency contracts $ 42 $ 46 Commodity contracts 4 10 Cross currency swaps 1,700 300 The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected in the Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021: March 31, 2022 (DOLLARS IN MILLIONS) Fair Value of Fair Value of Total Fair Value Derivative liabilities (1) Foreign currency contract $ — $ 2 $ 2 Cross currency swaps 6 — 6 Total derivative liabilities $ 6 $ 2 $ 8 December 31, 2021 (DOLLARS IN MILLIONS) Fair Value of Fair Value of Total Fair Value Derivative liabilities (1) Foreign currency contracts $ — $ 2 $ 2 Cross currency swaps 5 — 5 Total derivative liabilities $ 5 $ 2 $ 7 _______________________ (1) Derivative liabilities are recorded to Other current liabilities in the Consolidated Balance Sheets. The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three months ended March 31, 2022 and 2021: Amount of Gain (Loss) Location of Gain (Loss) Recognized in Income on Derivative (DOLLARS IN MILLIONS) Three Months Ended March 31, 2022 2021 Foreign currency contracts (1) $ 2 $ (3) Other income, net _______________________ (1) The foreign currency contract net gains (losses) offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods. The following table shows the effect of the Company’s derivative and non-derivative instruments designated as cash flow and net investment hedging instruments, net of tax, in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three months ended March 31, 2022 and 2021: Amount of Gain (Loss) Location of Gain (Loss) Reclassified from Amount of Gain (Loss) Three Months Ended March 31, Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 2022 2021 Derivatives in Cash Flow Hedging Relationships: Foreign currency contracts $ — $ 4 Cost of goods sold $ — $ (2) Derivatives in Net Investment Hedging Relationships: Cross currency swaps (1) 9 N/A — — Non-Derivatives in Net Investment Hedging Relationships: 2024 Euro Notes 9 20 N/A — — 2021 Euro Notes & 2026 Euro Notes 14 45 N/A — — Total $ 22 $ 78 $ — $ (2) The ineffective portion of the above noted cash flow hedges was not material during the three months ended March 31, 2022 and 2021. At March 31, 2022, based on current market rates, the Company does not expect any derivative losses (net of tax), included in AOCI, to be reclassified into earnings within the next 12 months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present changes in the accumulated balances for each component of other comprehensive (loss) income, including current period other comprehensive (loss) income and reclassifications out of accumulated other comprehensive loss: (DOLLARS IN MILLIONS) Foreign Gains (Losses) Pension and Total Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2021 $ (1,133) $ 1 $ (291) $ (1,423) OCI before reclassifications (199) — (3) (202) Amounts reclassified from AOCI — — 3 3 Net current period other comprehensive income (loss) (199) — — (199) Accumulated other comprehensive (loss) income, net of tax, as of March 31, 2022 $ (1,332) $ 1 $ (291) $ (1,622) (DOLLARS IN MILLIONS) Foreign Gains (Losses) Pension and Total Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2020 $ (285) $ (7) $ (406) $ (698) OCI before reclassifications (417) 2 2 (413) Amounts reclassified from AOCI — 2 7 9 Net current period other comprehensive income (loss) (417) 4 9 (404) Accumulated other comprehensive (loss) income, net of tax, as of March 31, 2021 $ (702) $ (3) $ (397) $ (1,102) The following table provides details about reclassifications out of Accumulated other comprehensive loss to the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss): Three Months Ended March 31, Affected Line Item in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (DOLLARS IN MILLIONS) 2022 2021 Gains (losses) on derivatives qualifying as hedges Foreign currency contracts $ — $ (3) Cost of goods sold Tax — 1 Provision for income taxes Total $ — $ (2) Total, net of income taxes Losses on pension and postretirement liability adjustments Prior service cost $ 2 $ 2 (1) Actuarial losses (5) (8) (1) Tax — (1) Provision for income taxes Total $ (3) $ (7) Total, net of income taxes _______________________ (1) The amortization of prior service cost and actuarial loss is included in the computation of net periodic benefit cost. Refer to Note 15 of the Company's 2021 Form 10-K for additional information regarding net periodic benefit cost. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees and Letters of Credit The Company has various bank guarantees, letters of credit and surety bonds which are used to support its ongoing business operations, satisfy governmental requirements associated with pending litigation in various jurisdictions and the payment of customs duties. At March 31, 2022, the Company had total bank guarantees, commercial guarantees, standby letters of credit and surety bonds of approximately $405 million with various financial institutions. Included in the above aggregate amount was a total of $16 million for other assessments in Brazil for various income tax and indirect tax disputes related to fiscal years 1998-2011. There was a total of approximately $12 million outstanding under the bank guarantees and standby letters of credit and approximately $105 million outstanding under the commercial guarantees as of March 31, 2022. In order to challenge the assessments in these cases in Brazil, the Company has been required to, and has separately pledged assets, principally property, plant and equipment, to cover assessments in the amount of approximately $8 million as of March 31, 2022. Lines of Credit The Company has various lines of credit which are available to support its ongoing business operations. As of March 31, 2022, the Company had available lines of credit of approximately $1.864 billion with various financial institutions, in addition to the $842 million of capacity under the Credit Facility. There were total draw downs of approximately $642 million pursuant to these lines of credit as of March 31, 2022, including approximately $631 million related to the issuance of commercial paper. Litigation The Company assesses contingencies related to litigation and/or other matters to determine the degree of probability and range of possible loss. A loss contingency is accrued in the Company’s Consolidated Financial Statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly sensitive and requires judgments about future events. On at least a quarterly basis, the Company reviews contingencies related to litigation to determine the adequacy of accruals. The amount of ultimate loss may differ from these estimates and further events may require the Company to increase or decrease the amounts it has accrued on any matter. Periodically, the Company assesses its insurance coverage for all known claims, where applicable, taking into account aggregate coverage by occurrence, limits of coverage, self-insured retentions and deductibles, historical claims experience and claims experience with its insurance carriers. The liabilities are recorded at management’s best estimate of the probable outcome of the lawsuits and claims, taking into consideration the facts and circumstances of the individual matters as well as past experience on similar matters. At each balance sheet date, the key issues that management assesses are whether it is probable that a loss as to asserted or unasserted claims has been incurred and if so, whether the amount of loss can be reasonably estimated. The Company records the expected liability with respect to claims in Other liabilities and expected recoveries from its insurance carriers in Other assets. The Company recognizes a receivable when it believes that realization of the insurance receivable is probable under the terms of the insurance policies and its payment experience to date. Litigation Matters On August 12, 2019, Marc Jansen filed a putative securities class action against IFF, its Chairman and CEO, and its then-CFO, in the United States District Court for the Southern District of New York. The lawsuit was filed after IFF disclosed that preliminary results of investigations indicated that Frutarom businesses operating principally in Russia and Ukraine had made improper payments to representatives of customers. On March 16, 2020, an amended complaint was filed, which added Frutarom and certain former officers of Frutarom as defendants. The amended complaint alleges, among other things, that defendants made materially false and misleading statements or omissions concerning IFF’s acquisition of Frutarom, the integration of the two companies, and the companies’ financial reporting and results. The amended complaint asserts claims under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, and under the Israeli Securities Act-1968, against all defendants, and under Section 20(a) of the Securities Exchange Act of 1934 against the individual defendants, on behalf of a putative class of persons and entities who purchased or otherwise acquired IFF securities on the New York Stock Exchange between May 7, 2018 and August 12, 2019 and persons and entities who purchased or otherwise acquired IFF securities on the Tel Aviv Stock Exchange between October 9, 2018 and August 12, 2019. The amended complaint seeks an award of unspecified compensatory damages, costs, and expenses. IFF, its officers, and Frutarom filed a motion to dismiss the case on June 26, 2020, which was granted on March 30, 2021. On April 28, 2021, lead plaintiffs filed a notice of appeal to the United States Court of Appeals for the Second Circuit. Lead plaintiffs are pursuing the appeal only against Frutarom and certain former officers of Frutarom. The parties have submitted their briefs to the Court of Appeals. The Second Circuit held oral argument on February 10, 2022, and the Court has not yet ruled. Two motions to approve securities class actions were filed in the Tel Aviv District Court, Israel, in August 2019, similarly alleging, among other things, false and misleading statements largely in connection with IFF’s acquisition of Frutarom and the above-mentioned improper payments. One motion ("Borg") asserts claims under the U.S. federal securities laws against IFF, its Chairman and CEO, and its former CFO. On November 8, 2020, IFF and its officers filed their response to the Borg motion. On April 20, 2021, Mr. Borg filed a motion to stay the proceeding pending an appellate decision in the U.S. proceeding. On June 15, 2021, August 11, 2021, November 9, 2021, January 9, 2022 and April 7, 2022, the U.S. lead plaintiffs filed update notices with the Israeli court regarding the appeal in the U.S. proceeding. The other motion ("Oman") (following an initial amendment) asserted claims under the Israeli Securities Act-1968 against IFF, its Chairman and CEO, and its former CFO, and against Frutarom and certain former Frutarom officers and directors, as well as claims under the Israeli Companies Act-1999 against certain former Frutarom officers and directors. On February 17, 2021, the court granted a motion by the Oman plaintiff to remove IFF and its officers from the motion and to add factual allegations from the US amended complaint. The amended Oman motion was filed on July 4, 2021. On August 29, 2021, the former Frutarom officers and certain former Frutarom directors filed a motion to dismiss the case. On September 30, 2021, Frutarom notified the court that it joins the legal arguments made in the motion to dismiss. On February 22, 2022, the court denied the motion to dismiss. On October 29, 2019, IFF and Frutarom filed a claim in the Tel Aviv District Court, Israel, against Ori Yehudai, the former President and CEO of Frutarom, and against certain former directors of Frutarom, challenging the bonus of US $20 million granted to Yehudai in 2018. IFF and Frutarom allege, among other things, that Yehudai was not entitled to receive the bonus because he breached his fiduciary duty by, among other things, knowing of the above-mentioned improper payments and failing to prevent them from being made. The parties agreed, pursuant to the court’s recommendation, to attempt to resolve the dispute through mediation, and a court decision is pending with regard to the order in which this claim and the class action described below will be heard. On March 11, 2020, an IFF shareholder filed a motion to approve a class action in Israel against, among others, Frutarom, Yehudai, and Frutarom’s former board of directors, alleging that former minority shareholders of Frutarom were harmed as a result of the US $20 million bonus paid to Yehudai. The parties to this motion agreed to attempt to resolve the dispute through mediation to take place regarding the aforesaid claim against Yehudai. On July 27, 2021, counsel to the movant in the class action filed a notice with the court that the mediation process ended without an agreement. On August 26, 2021, a motion to dismiss the class action application was filed by Yehudai and certain former directors of Frutarom. On September 9, 2021, an additional motion to dismiss was filed by other former directors of Frutarom together with ICC Industries, Inc. and its affiliates. On December 9, 2021, the court denied the motions to dismiss. Investigation On June 3, 2020, the Israel Police’s National Fraud Investigation Unit and the Israeli Securities Authority commenced an investigation into Frutarom and certain of its former executives, based on suspected bribery of foreign officials, money laundering, and violations of the Israeli Securities Act-1968. As part of the investigation, the National Fraud Investigation Unit and the Israeli Securities Authority have provided IFF and Frutarom with various orders, mainly requesting that IFF and Frutarom provide certain documents and materials. In addition, a seizure of assets was imposed on Frutarom and certain of its affiliates. IFF has been working to ensure compliance with such orders, all in accordance with, and subject to, Israeli law. On August 25, 2021, the Israeli Police informed Frutarom that they have decided to remove the temporary criminal seizure of assets order from the real estate assets of Frutarom and its related companies, which was done in parallel with the transfer of the case to the District Attorney's Office in Israel. China Facilities Guangzhou Taste Plant During the fourth quarter of 2016, the Company was notified that certain governmental authorities have begun to evaluate a change in the zoning of the Guangzhou Taste plant. The zoning, if changed, would prevent the Company from continuing to manufacture product at the existing plant. The ultimate outcome of any change that the governmental authorities may propose, the timing of such a change, and the nature of any compensation arrangements that might be provided to the Company are uncertain. To address the governmental authorities' requirements, the Company has been transferring certain production capabilities from the Guangzhou Taste plant to a newly built facility in Zhangjiagang. The net book value of the plant in Guangzhou was approximately $59 million as of March 31, 2022. Guangzhou Scent Plant During the second quarter of 2019, the Company was notified that certain governmental authorities had changed the zoning where the Guangzhou Scent plant is located. The zoning change did not affect the current operations but prevents expansions or other increases in the operating capacity of the plant. The Company believes that it is possible that the zoning may be enforced in the future such that it would not be able to continue manufacturing at the existing site. The ultimate outcome of any change that the governmental authorities may propose, the timing of such a change, and the nature of any compensation arrangements that might be provided to the Company are uncertain. The net book value of the existing plant was approximately $8 million as of March 31, 2022. Zhejiang Ingredients Plant In the fourth quarter of 2017, the Company concluded discussions with the government regarding the relocation of its Fragrance Ingredients plant in Zhejiang and, based on the agreements reached, expects to receive total compensation payments up to approximately $50 million. The relocation compensation will be paid to the Company over the period of the relocation which is expected to be through the end of 2022. The Company received payments totaling $30 million through the end of 2019. In the third quarter of 2020, the Company received a payment of approximately $13 million. A final payment is expected to be received upon completion of the final environmental inspection. Production at the facility ceased during 2019. In the second quarter of 2020, the Company transferred ownership of the site to the government. The land remediation activities are in progress and are expected to be completed in the second half of 2022. During the second quarter of 2020, the remaining net book value of the plant was written off. Total China Operations The total net book value of all plants in China was approximately $274 million as of March 31, 2022. If the Company is required to close a plant, or operate one at significantly reduced production levels on a permanent basis, the Company may be required to record charges that could have a material impact on its consolidated financial results of operations, financial position and cash flows in future periods. Other Contingencies The Company has contingencies involving third parties (such as labor, contract, technology or product-related claims or litigation) as well as government-related items in various jurisdictions in which it operates pertaining to such items as value-added taxes, other indirect taxes, customs and duties and sales and use taxes. It is possible that cash flows or results of operations, in any period, could be materially affected by the unfavorable resolution of one or more of these contingencies. The most significant government-related contingencies exist in Brazil. With regard to the Brazilian matters, the Company believes it has valid defenses for the underlying positions under dispute; however, in order to pursue these defenses, the Company is required to, and has provided, bank guarantees and pledged assets in the aggregate amount of $24 million. The Brazilian matters take an extended period of time to proceed through the judicial process and there are a limited number of rulings to date. Brazil Tax Credits In January 2020, the Company was informed of a favorable ruling from the Brazilian tax authorities confirming that the Company was entitled to recover the overpayments of certain indirect taxes (known as PIS/COFINS) for the period from November 2011 to December 2018, plus interest on the amount of the overpayments. The overpayments arose from the inclusion of a value added tax known as ICMS in the calculation of the PIS/COFINS tax. The ruling did not, however, settle the question of whether the Company is eligible to recover overpayments based on the gross or the net amount of ICMS amounts paid on PIS/COFINS. The Company calculated the amount of overpayments using the gross method which yields a higher amount than the application of the net method. A final ruling on the gross versus net amount issue was made by the Brazilian Supreme Court who affirmed the use of the gross calculation with respect to claims submitted prior to March 2017. Although the Company had not submitted a claim until after March 2017, the Company believes that the Supreme Court, whilst confirming the use of the gross method of calculation, does not override the January 2020 ruling by the Brazilian tax authorities with respect to the timeframe for the calculation. Avicel® PH NF (Pharma Solutions) The Company has determined that certain grades of microcrystalline cellulose (Avicel® PH 101, 102, and 200 NF and Avicel® RC-591 NF) were found to be out-of-specification (collectively, “OOS Avicel® NF”). The Company does not expect this issue to affect the functionality of Avicel® NF grades or to pose a human health hazard. Corrective actions have been implemented to improve operational and laboratory conditions. Based on the information available, as of March 31, 2022, payments associated with the issue were approximately $30 million, and the Company has a current accrual of approximately $31 million. The total amount of exposure may increase as additional customers present claims or other exposures are identified. Other The Company determines estimates of reasonably possible losses or ranges of reasonably possible losses in excess of related accrued liabilities, if any, when it has determined that either a loss is reasonably possible or a loss in excess of accrued amounts is reasonably possible and the amount of losses or range of losses is determinable. For all third party contingencies (including labor, contract, technology, tax, product-related claims and business litigation), the Company currently estimates that the aggregate range of reasonably possible losses in excess of any accrued liabilities is $0 to approximately $35 million. The estimates included in this amount are based on the Company’s analysis of currently available information and, as new information is obtained, these estimates may change. Due to the inherent subjectivity of the assessments and the unpredictability of outcomes of legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to the Company from the matters in question. Thus, the Company’s exposure and ultimate losses may be higher or lower, and possibly significantly so, than the amounts accrued or the range disclosed above. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | REDEEMABLE NONCONTROLLING INTERESTS Through certain subsidiaries of the Company's Frutarom acquisition, there are certain noncontrolling interests that carry redemption features. The noncontrolling interest holders have the right, over a stipulated period of time, to sell their respective interests to Frutarom, and Frutarom has the option to purchase these interests (subject to the same timing). These options carry, in most cases, similar price and conditions of exercise, and will be settled on a pre-agreed formula based on a multiple of the average EBITDA of consecutive quarters to be achieved during the period ending prior to the exercise date. The following table sets forth the details of the Company's redeemable noncontrolling interests: (DOLLARS IN MILLIONS) Redeemable Balance at December 31, 2020 $ 98 Impact of foreign exchange translation 2 Share of profit or loss attributable to redeemable noncontrolling interests 1 Redemption value adjustment for the current period 1 Balance at March 31, 2021 $ 102 Balance at December 31, 2021 $ 105 Impact of foreign exchange translation (4) Balance at March 31, 2022 $ 101 |
Subsequent Event (Notes)
Subsequent Event (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT Acquisition of Health Wright Products On April 1, 2022 ("Acquisition Date"), the Company completed its acquisition of Health Wright Products, Inc. (“Health Wright”). IFF acquired 100% of the equity of Health Wright pursuant to a purchase agreement entered into on February 16, 2022. Health Wright is known in the consumer Health and Nutrition industries for providing high quality nutritional supplements. The acquisition was made in order to strengthen formulation and finished format capabilities to IFF’s Health & Biosciences probiotics, natural extracts and botanical businesses. Under the terms of the purchase agreement, the Company agreed to pay approximately $131 million, of which approximately $123 million was paid on the Acquisition Date. Further contingent consideration will be payable upon achievement of certain earnout milestones, which is estimated to be approximately $44 million. The acquisition will be accounted for using the purchase method of accounting, and Health Wright’s assets, liabilities and results of operations will be included in the Company’s financial statements from the Acquisition Date. The Company is in the process of completing the purchase price allocation. |
Assets Held For Sale
Assets Held For Sale | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held For Sale | ASSETS HELD FOR SALE Microbial Control During the third quarter of 2021, the Company announced it had entered into an agreement to sell its Microbial Control business unit, which is a part of the Health & Biosciences segment. The Company acquired the Microbial Control business unit as part of the Merger with N&B. The Company classifies assets as "held for sale" when, among other factors, management approves and commits to a formal plan of sale with the expectation the sale will be completed within one year. Pursuant to ASC 360, assets held for sale were recorded at the lower of carrying value or the fair market value, less costs to sell. The sale does not constitute a strategic shift of the Company’s operations and does not, and will not, have major effects on the Company’s operations and financial results; therefore, the transaction does not meet the discontinued operations criteria. Based on the agreement to sell, it was determined that the assets and liabilities of the Microbial Control business unit met the criteria to be presented as “held for sale" and such assets and liabilities were classified as held for sale and are reported on the Consolidated Balance Sheets. The Company expects that the transaction will close for approximately $1.282 billion in the third quarter of 2022 and that the sale proceeds less costs to sell will exceed the carrying value of the net assets. Included in the Company's Consolidated Balance Sheets as of March 31, 2022 are the following carrying amounts of the assets and liabilities held for sale: (DOLLARS IN MILLIONS) March 31, 2022 Assets Trade Receivables, net $ 78 Inventories 129 Property, plant and equipment, net 28 Goodwill 536 Other intangible assets, net 349 Operating lease right-of-use assets 4 Other assets 17 Total assets held-for-sale $ 1,141 Liabilities Accounts payable $ 55 Deferred tax liability 24 Other liabilities 8 Total liabilities held-for-sale $ 87 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the related notes included in our 2021 Annual Report on Form 10-K (“2021 Form 10-K”). The interim Consolidated Financial Statements are unaudited. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted, if not materially different from the 2021 Form 10-K. The year-end balance sheet data included in this Form 10-Q was derived from the audited financial statements. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim Consolidated Financial Statements, have been made. On February 1, 2021 (the “Closing Date”), pursuant to an Agreement and Plan of Merger (the “Merger Agreement”), the Company completed the combination (the "Merger") of IFF and DuPont de Nemours, Inc (“DuPont”) nutrition and biosciences business (the “N&B Business”), which had been transferred to Nutrition and Biosciences, Inc., a Delaware corporation and wholly owned subsidiary of DuPont ("N&B") in a Reverse Morris Trust transaction. See Note 3 for additional information. As a result, the Company’s Consolidated Financial Statements for the three months ended March 31, 2022 reflect the results of N&B for the full three months in the first quarter of 2022, whereas the three months ended March 31, 2021 reflect only two months of results of N&B in the first quarter of 2021. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. The inputs into our judgments and estimates take into account the current economic implications of the novel coronavirus ("COVID-19") and the potential impairment of assets arising from the recent events in Russia and Ukraine on our critical and significant accounting estimates, including estimates associated with future cash flows that are used in assessing the risk of impairment of certain long-lived assets. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2021, the FASB issued Accounting Standards Update ("ASU") 2021-10, "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance." The ASU requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This guidance is effective for all entities for annual periods beginning after December 15, 2021 and early adoption is permitted. The Company is currently evaluating the impact of this guidance, but does not expect this guidance to have a material impact on its Consolidated Financial Statements. In October 2021, the FASB issued Accounting Standards Update ("ASU") 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." The ASU is intended to provide specific guidance on how to recognize and measure acquired contract assets and liabilities from revenue contracts in a business combination. An acquirer needs to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. To achieve this, an acquirer may assess how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this guidance, but does not expect this guidance to have a material impact on its Consolidated Financial Statements. |
Receivable | Accounts Receivable The Company has various factoring agreements in the U.S. and The Netherlands under which it can factor up to approximately $250 million in receivables. In addition, the Company has factoring agreements sponsored by certain customers. Under all of the arrangements, the Company sells the receivables on a non-recourse basis to unrelated financial institutions and accounts for the transactions as a sale of receivables. The applicable receivables are removed from the Company's Consolidated Balance Sheets when the cash proceeds are received by the Company. The impact on cash provided by operations from participating in these programs was a decrease of $45 million for the three months ended March 31, 2022 and an increase of $29 million for the three months ended March 31, 2021. The cost of participating in these programs was approximately $1 million for both the three months ended March 31, 2022 and 2021. |
Revenue | Revenue Recognition The Company recognizes revenue when control of the promised goods is transferred to its customers in an amount that reflects the consideration it expects to be entitled to in exchange for those goods. Sales, value added, and other taxes the Company collects are excluded from revenues. The Company receives payment in accordance with standard customer terms. See Note 11 for further details on revenues disaggregated by segment. |
Property, Plant and Equipment, Policy | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is calculated on a straight-line basis, principally over the following estimated useful lives: buildings and improvements, 1 to 50 years; machinery and equipment, 1 to 40 years; information technology hardware and software, 1 to 23 years; and leasehold improvements which are included in buildings and improvements, the estimated life of the improvements or the remaining term of the lease, whichever is shorter. |
Goodwill and Intangible Assets, Intangible Assets, Policy | Finite-Lived Intangible Assets Finite-lived intangible assets include customer relationships, patents, trade names, technological know-how and other intellectual property valued at acquisition and amortized on a straight-line basis over the following estimated useful lives: customer relationships, 10 to 27 years; patents, 11 to 15 years; trade names, 4 to 28 years; and technological know-how, 5 to 28 years. The Company reviews long-lived assets for impairment when events or changes in business conditions indicate that their carrying value may not be recovered. An estimate of undiscounted future cash flows produced by an asset or group of assets is compared to the carrying value to determine whether impairment exists. If assets are determined to be impaired, the loss is measured based on an estimate of fair value using various valuation techniques, including a discounted estimate of future cash flows. Recent Events in Russia and Ukraine The Company maintains operations in both Russia and Ukraine and, additionally, exports products to customers in Russia and Ukraine from operations outside the region. In response to the events in Ukraine, the Company has limited the production and supply of ingredients in and to Russia to only those that meet the essential needs of people, including food, hygiene and medicine. During the first quarter of 2022, in connection with the events in Ukraine (including the impact of the invasion and the sanctions placed on Russia), the Company determined that certain assets should be tested for recoverability. In order to perform the test for recoverability, the Company prepared an estimate of the undiscounted cash flows for the applicable asset groups. The total amount of assets in the applicable asset groups identified, and to be tested for recoverability, was approximately $228 million, or less than 1% of total assets, of which approximately $210 million related to Russia. Based on the projections made, it was determined that no impairment existed in any of the asset groups as of March 31, 2022. The undiscounted cash flows were prepared under the assumption that the Company’s operations in Russia and Ukraine would continue to operate and that the Company would be able to continue to manufacture and sell products within Russia, subject to limiting our operations to servicing essential needs. The Company may incur impairment of such assets in the future if these assumptions change or circumstances worsen. As indicated above, the Company also recorded a charge of approximately $20 million related to expected credit losses on receivables from customers located in Russia and Ukraine (for both export and domestic sales) due to recent events in those countries. The Company will continue to evaluate its credit exposure related to Russia and Ukraine. |
Nature of Operations | Nature of Operations International Flavors & Fragrances Inc. and its subsidiaries (the “Registrant,” “IFF,” “the Company,” “we,” “us” and “our”) is a leading creator and manufacturer of food, beverage, health & biosciences, scent and pharma solutions and complementary adjacent products, including cosmetic active and natural health ingredients, which are used in a wide variety of consumer products. Our products are sold principally to manufacturers of perfumes and cosmetics, hair and other personal care products, soaps and detergents, cleaning products, dairy, meat and other processed foods, beverages, snacks and savory foods, sweet and baked goods, sweeteners, dietary supplements, food protection, infant and elderly nutrition, functional food, and pharmaceutical excipients and oral care products. |
Reporting Periods | Reporting Periods The Company uses a calendar year of the twelve-month period from January 1 to December 31. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash | Cash, cash equivalents and restricted cash reported in the Company's balance sheet as of March 31, 2022, December 31, 2021, March 31, 2021 and December 31, 2020 were as follows: (DOLLARS IN MILLIONS) March 31, 2022 December 31, 2021 March 31, 2021 December 31, 2020 Current assets Cash and cash equivalents $ 657 $ 711 $ 872 $ 650 Restricted cash 4 4 7 7 Noncurrent assets Restricted cash included in Other assets 1 1 2 3 Cash, cash equivalents and restricted cash $ 662 $ 716 $ 881 $ 660 |
Contract Asset and Accounts Receivable | Contract Assets and Liabilities With respect to a small number of contracts for the sale of compounds, the Company has an “enforceable right to payment for performance to date” and as the products do not have an alternative use, the Company recognizes revenue for these contracts over time and records a contract asset using the output method. The output method recognizes revenue on the basis of direct measurements of the value to the customer of the goods or services transferred to date relative to the remaining goods or services promised under the contract. As of March 31, 2022 and December 31, 2021, the Company's gross accounts receivable was $2.229 billion and $1.952 billion, respectively. The Company's contract assets and contract liabilities as of March 31, 2022 and December 31, 2021 were not material. |
Schedule of Bad Debt Reserve | The following is a rollforward of the Company's allowances for bad debts for the three months ended March 31, 2022: (DOLLARS IN MILLIONS) Allowances for Balance at December 31, 2021 $ 46 Bad debt expense (1) 23 Write-offs (1) Foreign exchange 1 Balance at March 31, 2022 $ 69 _______________________ (1) The bad debt expense included approximately $20 million related to expected credit losses on receivables from customers located in Russia and Ukraine (for both export and domestic sales) due to recent events in those countries. The Company will continue to evaluate its credit exposure related to Russia and Ukraine. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares Used in Computation of Basic and Diluted Net Income Per Share | A reconciliation of the shares used in the computation of basic and diluted net income (loss) per share is as follows: Three Months Ended March 31, (AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS) 2022 2021 Net Income (Loss) Net income (loss) attributable to IFF stockholders $ 244 $ (42) Adjustment related to (increase) decrease in redemption value of redeemable noncontrolling interests in excess of earnings allocated — (1) Net income (loss) available to IFF stockholders $ 244 $ (43) Shares Weighted average common shares outstanding (basic) (1) 255 206 Weighted average shares assuming dilution (diluted) 255 206 Net Income (Loss) per Share Net income (loss) per share - basic $ 0.96 $ (0.21) Net income (loss) per share - diluted 0.96 (0.21) _______________________ (1) On September 15, 2021, additional shares of IFF's common stock were issued in settlement of the stock purchase contract ("SPC") portion of the tangible equity units ("TEUs"). For the three months ended March 31, 2021, the TEUs were assumed to be outstanding at the minimum settlement amount for basic earnings per share ("EPS"). See below for additional information. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information | The unaudited pro forma results for the three months ended March 31, 2021 were as follows: (DOLLARS IN MILLIONS) Three Months Ended March 31, 2021 Unaudited pro forma net sales $ 2,972 Unaudited pro forma net income attributable to the Company 219 |
Restructuring and Other Charg_2
Restructuring and Other Charges, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Changes in Employee-Related Restructuring Liabilities | Changes in Restructuring Liabilities Changes in restructuring liabilities during the three months ended March 31, 2022 were as follows: (DOLLARS IN MILLIONS) Balance at December 31, 2021 Additional Charges (Reversals), Net Non-Cash Charges Cash Payments Balance at March 31, 2022 Frutarom Integration Initiative Severance $ 5 $ — $ — $ — $ 5 Other (1) 3 — — (1) 2 2019 Severance Plan Severance 5 — — — 5 Other Restructuring Charges Severance 1 — — — 1 N&B Merger Restructuring Liability Severance 15 2 — (5) 12 Total restructuring and other charges $ 29 $ 2 $ — $ (6) $ 25 _______________________ (1) Other includes supplier contract termination costs, consulting and advisory fees. Restructuring liabilities are presented in "Other Current Liabilities" in the Consolidated Balance Sheets. Charges by Segment The following table summarizes the total amount of costs incurred in connection with these restructuring programs and activities by segment: Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 Nourish $ 2 $ 3 Scent — 1 Total Restructuring and other charges $ 2 $ 4 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Movements in Goodwill | Movements in goodwill attributable to each reportable segment for the three months ended March 31, 2022 were as follows: (DOLLARS IN MILLIONS) Nourish Health & Biosciences Scent Pharma Solutions Total Balance at December 31, 2021 $ 6,555 $ 6,749 $ 1,828 $ 1,282 $ 16,414 Foreign exchange (50) (42) (11) (13) (116) Balance at March 31, 2022 $ 6,505 $ 6,707 $ 1,817 $ 1,269 $ 16,298 |
Schedule of Other Intangible Assets, Net | Other intangible assets, net consisted of the following amounts: March 31, December 31, (DOLLARS IN MILLIONS) 2022 2021 Asset Type Customer relationships $ 8,878 $ 8,935 Technological know-how 2,470 2,494 Trade names & patents 405 411 Other 50 50 Total carrying value 11,803 11,890 Accumulated Amortization Customer relationships (991) (887) Technological know-how (441) (388) Trade names & patents (76) (68) Other (45) (41) Total accumulated amortization (1,553) (1,384) Other intangible assets, net $ 10,250 $ 10,506 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense for the next five years is expected to be as follows: (DOLLARS IN MILLIONS) 2022 2023 2024 2025 2026 Estimated future intangible amortization expense $ 564 $ 743 $ 742 $ 740 $ 737 |
Other Assets and Liabilities,_2
Other Assets and Liabilities, Current and Noncurrent (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following amounts: (DOLLARS IN MILLIONS) March 31, 2022 December 31, 2021 Finance lease right-of-use assets $ 20 $ 21 Deferred income taxes 111 82 Overfunded pension plans 134 136 Cash surrender value of life insurance contracts 49 52 Equity method investments 85 86 Other (1) 255 239 Total $ 654 $ 616 _______________________ (1) Includes land usage rights in China and long term deposits. |
Schedule of Other Current Assets | Prepaid expenses and other current assets consisted of the following amounts: (DOLLARS IN MILLIONS) March 31, 2022 December 31, 2021 Value-added tax receivable $ 196 $ 178 Income tax receivable 107 131 Prepaid expenses 328 288 Other 119 131 Total $ 750 $ 728 |
Other Current Liabilities | Other current liabilities consisted of the following amounts: (DOLLARS IN MILLIONS) March 31, 2022 December 31, 2021 Rebates and incentives payable $ 110 $ 113 Value-added tax payable 55 50 Interest payable 70 48 Current pension and other postretirement benefit obligation 9 11 Accrued insurance (including workers’ compensation) 9 10 Restructuring and other charges 25 29 Current operating lease obligation 107 109 Current financing lease obligation 5 5 Accrued income taxes 151 94 Other accounts payable and accrued expenses payable 267 270 Other 108 93 Total $ 916 $ 832 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Components of Debt | Debt consisted of the following: (DOLLARS IN MILLIONS) Effective Interest Rate March 31, 2022 December 31, 2021 2022 Notes (3) 0.69 % $ 300 $ 300 2023 Notes (1) 3.30 % 300 300 2024 Euro Notes (1) 1.88 % 554 565 2025 Notes (3) 1.22 % 1,000 1,001 2026 Euro Notes (1) 1.93 % 882 900 2027 Notes (3) 1.56 % 1,217 1,218 2028 Notes (1) 4.57 % 397 397 2030 Notes (3) 2.21 % 1,510 1,511 2040 Notes (3) 3.04 % 774 775 2047 Notes (1) 4.44 % 495 494 2048 Notes (1) 5.12 % 787 786 2050 Notes (3) 3.21 % 1,572 1,572 2024 Term Loan Facility (3) 1.56 % 625 625 2026 Term Loan Facility (3) 1.94 % 625 625 Commercial paper (4) — % 631 324 Bank overdrafts and other 8 7 Total debt 11,677 11,400 Less: Short-term borrowings (2) (939) (632) Total Long-term debt $ 10,738 $ 10,768 _______________________ (1) Amount is net of unamortized discount and debt issuance costs. (2) Includes bank borrowings, commercial paper, overdrafts and current portion of long-term debt. (3) Assumed by the Company as part of the N&B Merger. (4) The effective interest rate of commercial paper issuances fluctuates as short-term interest rates and demand fluctuate, and deferred debt issuance costs are immaterial. Additionally, the effective interest rate of commercial paper is not meaningful as issuances do not materially differ from short-term interest rates. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lease cost and other information | The components of lease expense were as follows: Three Months Ended Three Months Ended (DOLLARS IN MILLIONS) March 31, 2022 March 31, 2021 Operating lease cost $ 47 $ 32 Finance lease cost 2 1 Supplemental cash flow information related to leases was as follows: Three Months Ended Three Months Ended (DOLLARS IN MILLIONS) March 31, 2022 March 31, 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 35 $ 27 Financing cash flows for finance leases 2 1 Right-of-use assets obtained in exchange for lease obligations Operating leases 18 11 Finance leases 1 1 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense and Related Tax Benefits | Stock-based compensation expense and related tax benefits were as follows: Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 Equity-based awards $ 9 $ 11 Liability-based awards — 3 Total stock-based compensation expense 9 14 Less: Tax benefit (2) (3) Total stock-based compensation expense, after tax $ 7 $ 11 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 Net sales: Nourish $ 1,731 $ 1,308 Health & Biosciences 661 426 Scent 585 569 Pharma Solutions 249 162 Consolidated $ 3,226 $ 2,465 Segment Adjusted Operating EBITDA: Nourish $ 329 $ 270 Health & Biosciences 192 128 Scent 116 128 Pharma Solutions 65 43 Total 702 569 Depreciation & Amortization (303) (242) Interest Expense (72) (65) Other income, net 16 7 Restructuring and Other Charges (2) (4) Shareholder Activism Related Costs (a) (3) (7) Business Divestiture Costs (b) (30) — Employee Separation Costs (c) (4) (3) Frutarom Acquisition Related Costs (d) (1) — N&B Inventory Step-Up Costs — (182) N&B Transaction Related Costs (e) — (89) Integration Related Costs (f) (18) (38) Income (Loss) Before Taxes $ 285 $ (54) _______________________ (a) Represents shareholder activist related costs, primarily professional fees. (b) Represents costs related to the Company's planned sales of businesses, primarily legal and professional fees. (c) Represents costs related to severance, including accelerated stock compensation expense, for certain employees and executives who have been separated or will separate from the Company. (d) Represents transaction-related costs and expenses related to the acquisition of Frutarom. (e) Represents transaction costs and expenses related to the transaction with N&B, primarily includes legal and professional fees. (f) Represents costs related to integration activities since 2018, primarily for Frutarom and N&B. For 2022, represents costs primarily related to external consulting fees and internal integration costs, including salaries. For 2021, represents costs primarily related to performance stock awards and consulting fees for advisory services. |
Net Sales by Destination of Product Delivery | Net sales, which are attributed to individual regions based upon the destination of product delivery, were as follows: Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 Europe, Africa and Middle East $ 1,128 $ 873 Greater Asia 744 587 North America 1,002 722 Latin America 352 283 Consolidated $ 3,226 $ 2,465 Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 Net sales related to the U.S. $ 901 $ 654 Net sales attributed to all foreign countries 2,325 1,811 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Defined Contribution Retirement Plan Expenses | Pension and other defined contribution retirement plan expenses included the following components: (DOLLARS IN MILLIONS) U.S. Plans Three Months Ended March 31, 2022 2021 Interest cost on projected benefit obligation (2) $ 4 $ 3 Expected return on plan assets (2) (5) (5) Net amortization and deferrals (2) 2 2 Net periodic benefit (income) cost $ 1 $ — (DOLLARS IN MILLIONS) Non-U.S. Plans Three Months Ended March 31, 2022 2021 Service cost for benefits earned (1) $ 9 $ 10 Interest cost on projected benefit obligation (2) 5 2 Expected return on plan assets (2) (11) (12) Net amortization and deferrals (2) 3 5 Net periodic benefit (income) cost $ 6 $ 5 _______________________ (1) Included as a component of Operating profit. (2) Included as a component of Other income, net. |
Postretirement Benefits Other Than Pension Expenses | (Income) expense recognized for postretirement benefits other than pensions included the following components: Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 Net amortization and deferrals $ (1) $ (1) Total postretirement benefit (income) expense $ (1) $ (1) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Carrying Amount and Estimated Fair Values of Financial Instruments | The carrying values and the estimated fair values of financial instruments at March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 December 31, 2021 (DOLLARS IN MILLIONS) Carrying Value Fair Value Carrying Value Fair Value LEVEL 1 Cash and cash equivalents (1) $ 657 $ 657 $ 711 $ 711 2025 Notes (5) 1,000 924 1,001 968 2027 Notes (5) 1,217 1,089 1,218 1,180 2030 Notes (5) 1,510 1,333 1,511 1,466 2040 Notes (5) 774 662 775 762 2050 Notes (5) 1,572 1,307 1,572 1,556 LEVEL 2 Credit facilities and bank overdrafts (2) 8 8 7 7 Derivatives Derivative liabilities (3) 8 8 7 7 Commercial paper (2) 631 631 324 324 Long-term debt: (4) 2022 Notes 300 298 300 300 2023 Notes 300 301 300 308 2024 Euro Notes 554 561 565 585 2026 Euro Notes 882 888 900 960 2028 Notes 397 415 397 452 2047 Notes 495 494 494 585 2048 Notes 787 872 786 1,026 2024 Term Loan Facility (6) 625 625 625 625 2026 Term Loan Facility (6) 625 625 625 625 _______________________ (1) The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those instruments. (2) The carrying amount approximates fair value as the interest rate is reset frequently based on current market rates as well as the short maturity of those instruments. (3) The carrying amount approximates fair value as the instruments are marked-to-market and held at fair value on the Consolidated Balance Sheets. (4) The fair value of the Company's long-term debt was calculated using discounted cash flows applying current interest rates and current credit spreads based on its own credit risk. (5) The fair value of the Notes is based on market quoted price as there is an active market for the Notes and observable market data and inputs. (6) The carrying amount approximates fair value as the Term Loans were assumed at fair value and the interest rate is reset frequently based on current market rates. |
Derivative Instruments Notional Amount Outstanding | The following table shows the notional amount of the Company’s derivative instruments outstanding as of March 31, 2022 and December 31, 2021: (DOLLARS IN MILLIONS) March 31, 2022 December 31, 2021 Foreign currency contracts $ 42 $ 46 Commodity contracts 4 10 Cross currency swaps 1,700 300 |
Derivative Instruments Measured at Fair Value | The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy), as reflected in the Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021: March 31, 2022 (DOLLARS IN MILLIONS) Fair Value of Fair Value of Total Fair Value Derivative liabilities (1) Foreign currency contract $ — $ 2 $ 2 Cross currency swaps 6 — 6 Total derivative liabilities $ 6 $ 2 $ 8 December 31, 2021 (DOLLARS IN MILLIONS) Fair Value of Fair Value of Total Fair Value Derivative liabilities (1) Foreign currency contracts $ — $ 2 $ 2 Cross currency swaps 5 — 5 Total derivative liabilities $ 5 $ 2 $ 7 _______________________ (1) Derivative liabilities are recorded to Other current liabilities in the Consolidated Balance Sheets. |
Derivative Instruments Which Were Not Designated as Hedging Instruments | The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three months ended March 31, 2022 and 2021: Amount of Gain (Loss) Location of Gain (Loss) Recognized in Income on Derivative (DOLLARS IN MILLIONS) Three Months Ended March 31, 2022 2021 Foreign currency contracts (1) $ 2 $ (3) Other income, net _______________________ (1) The foreign currency contract net gains (losses) offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods. |
Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments | The following table shows the effect of the Company’s derivative and non-derivative instruments designated as cash flow and net investment hedging instruments, net of tax, in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three months ended March 31, 2022 and 2021: Amount of Gain (Loss) Location of Gain (Loss) Reclassified from Amount of Gain (Loss) Three Months Ended March 31, Three Months Ended March 31, (DOLLARS IN MILLIONS) 2022 2021 2022 2021 Derivatives in Cash Flow Hedging Relationships: Foreign currency contracts $ — $ 4 Cost of goods sold $ — $ (2) Derivatives in Net Investment Hedging Relationships: Cross currency swaps (1) 9 N/A — — Non-Derivatives in Net Investment Hedging Relationships: 2024 Euro Notes 9 20 N/A — — 2021 Euro Notes & 2026 Euro Notes 14 45 N/A — — Total $ 22 $ 78 $ — $ (2) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following tables present changes in the accumulated balances for each component of other comprehensive (loss) income, including current period other comprehensive (loss) income and reclassifications out of accumulated other comprehensive loss: (DOLLARS IN MILLIONS) Foreign Gains (Losses) Pension and Total Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2021 $ (1,133) $ 1 $ (291) $ (1,423) OCI before reclassifications (199) — (3) (202) Amounts reclassified from AOCI — — 3 3 Net current period other comprehensive income (loss) (199) — — (199) Accumulated other comprehensive (loss) income, net of tax, as of March 31, 2022 $ (1,332) $ 1 $ (291) $ (1,622) (DOLLARS IN MILLIONS) Foreign Gains (Losses) Pension and Total Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2020 $ (285) $ (7) $ (406) $ (698) OCI before reclassifications (417) 2 2 (413) Amounts reclassified from AOCI — 2 7 9 Net current period other comprehensive income (loss) (417) 4 9 (404) Accumulated other comprehensive (loss) income, net of tax, as of March 31, 2021 $ (702) $ (3) $ (397) $ (1,102) |
Reclassifications of Accumulated Other Comprehensive Income to Consolidated Statement of Comprehensive Income | The following table provides details about reclassifications out of Accumulated other comprehensive loss to the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss): Three Months Ended March 31, Affected Line Item in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (DOLLARS IN MILLIONS) 2022 2021 Gains (losses) on derivatives qualifying as hedges Foreign currency contracts $ — $ (3) Cost of goods sold Tax — 1 Provision for income taxes Total $ — $ (2) Total, net of income taxes Losses on pension and postretirement liability adjustments Prior service cost $ 2 $ 2 (1) Actuarial losses (5) (8) (1) Tax — (1) Provision for income taxes Total $ (3) $ (7) Total, net of income taxes _______________________ (1) The amortization of prior service cost and actuarial loss is included in the computation of net periodic benefit cost. Refer to Note 15 of the Company's 2021 Form 10-K for additional information regarding net periodic benefit cost. |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The following table sets forth the details of the Company's redeemable noncontrolling interests: (DOLLARS IN MILLIONS) Redeemable Balance at December 31, 2020 $ 98 Impact of foreign exchange translation 2 Share of profit or loss attributable to redeemable noncontrolling interests 1 Redemption value adjustment for the current period 1 Balance at March 31, 2021 $ 102 Balance at December 31, 2021 $ 105 Impact of foreign exchange translation (4) Balance at March 31, 2022 $ 101 |
Assets Held For Sale (Tables)
Assets Held For Sale (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Included in the Company's Consolidated Balance Sheets as of March 31, 2022 are the following carrying amounts of the assets and liabilities held for sale: (DOLLARS IN MILLIONS) March 31, 2022 Assets Trade Receivables, net $ 78 Inventories 129 Property, plant and equipment, net 28 Goodwill 536 Other intangible assets, net 349 Operating lease right-of-use assets 4 Other assets 17 Total assets held-for-sale $ 1,141 Liabilities Accounts payable $ 55 Deferred tax liability 24 Other liabilities 8 Total liabilities held-for-sale $ 87 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Trade receivables before allowance for credit loss | $ 2,229 | $ 1,952 | |
Trade receivables | 2,160 | 1,906 | |
Trade receivables allowances | $ 69 | $ 46 | |
Percentage of outstanding receivables less than 90 days | 91.00% | ||
Percentage of outstanding receivables by over 365 days | 1.00% | ||
Assets to be tested for recoverability, percentage of total assets | 1.00% | ||
Allowance for bad debt expense | $ 23 | ||
Russia and Ukraine Conflict | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets to be tested for recoverability | 228 | ||
Allowance for bad debt expense | 20 | ||
Russia and Ukraine Conflict | RUSSIAN FEDERATION | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets to be tested for recoverability | $ 210 | ||
Minimum | Customer relationships | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Minimum | Patents [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 11 years | ||
Minimum | Trade names | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||
Minimum | Intellectual Property | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Minimum | Buildings And Improvements | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, Plant and Equipment, Useful Life | 1 year | ||
Minimum | Machinery and Equipment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, Plant and Equipment, Useful Life | 1 year | ||
Minimum | Information Technology Hardware And Software | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, Plant and Equipment, Useful Life | 1 year | ||
Maximum | Customer relationships | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 27 years | ||
Maximum | Patents [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Maximum | Trade names | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 28 years | ||
Maximum | Intellectual Property | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 28 years | ||
Maximum | Buildings And Improvements | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, Plant and Equipment, Useful Life | 50 years | ||
Maximum | Machinery and Equipment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Maximum | Information Technology Hardware And Software | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, Plant and Equipment, Useful Life | 23 years | ||
Trade Accounts Receivable With Factoring Agreements [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Proceeds From Sale Of Accounts Receivable | $ (45) | $ 29 | |
Payments To Participate In Factoring Receivable Program | 1 | $ 1 | |
Accounts Receivable, Held-for-sale | $ 250 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Contract Assets, Receivables, and Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 3,226 | $ 2,465 | |
Trade receivables before allowance for credit loss | $ 2,229 | $ 1,952 | |
Percentage of outstanding receivables less than 90 days | 91.00% | ||
Trade receivables | $ 2,160 | $ 1,906 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies - Reconciliation of Cash (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 657 | $ 711 | $ 872 | $ 650 |
Restricted cash | 4 | 4 | 7 | 7 |
Restricted cash included in Other assets | 1 | 1 | 2 | 3 |
Cash, cash equivalents and restricted cash | $ 662 | $ 716 | $ 881 | $ 660 |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies - Schedule of Bad Debt Reserve (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at December 31, 2021 | $ 46 |
Bad debt expense | 23 |
Write-offs | (1) |
Foreign exchange | 1 |
Balance at March 31, 2022 | 69 |
Russia and Ukraine Conflict | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Bad debt expense | $ 20 |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Shares Used in Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Sep. 14, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income (loss) attributable to IFF stockholders | $ 244 | $ (42) | |
Adjustment related to (increase) decrease in redemption value of redeemable noncontrolling interests in excess of earnings allocated | 0 | (1) | |
Net income (loss) available to IFF stockholders | $ 244 | $ (43) | |
Weighted average common shares outstanding (basic) (in shares) | 255,000,000 | 206,000,000 | |
Weighted average shares assuming dilution (diluted) (in shares) | 255,000,000 | 206,000,000 | |
Net income per share - basic (in dollars per share) | $ 0.96 | $ (0.21) | |
Net income per share - diluted (in dollars per share) | $ 0.96 | (0.21) | |
Tangible Equity Units, Price for Shares Diluted | $ 0.366500 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,000,000,000,000 | ||
Price for basic share (usd per share) | $ 0.313400 | ||
Tangible Equity Units Final Settlement Rate | $ 0.330911 | ||
Tangible Equity Units, Price for Shares Diluted | $ 0.366500 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Sep. 15, 2021 | Sep. 17, 2018 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Sep. 14, 2021 |
Earnings Per Share [Abstract] | ||||||
Dividends declared per share, in dollars per share | $ 0.79 | $ 0.77 | ||||
Tangible equity units issued | 16,500,000 | |||||
Tangible equity units proceeds | $ 800 | |||||
Shares issued during period | 5,460,031 | |||||
Price for basic share (usd per share) | 0.313400 | |||||
Tangible Equity Units, Price for Shares Diluted | $ 0.366500 | |||||
Difference between basic and diluted net income per share, in dollars per share | 0.01 | |||||
Common stock, par value, in dollars per share | $ 0.125 | $ 0.125 | ||||
Tangible Equity Units Final Settlement Rate | $ 0.330911 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Feb. 01, 2021 | |
Business Acquisition [Line Items] | ||||
Common stock, par value, in dollars per share | $ 0.125 | $ 0.125 | ||
Cash acquired | $ 11 | $ 207 | ||
Goodwill | 16,298 | $ 16,414 | ||
Nutrition & Biosciences, Inc | ||||
Business Acquisition [Line Items] | ||||
Common stock, par value, in dollars per share | $ 0.125 | |||
Taste | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 6,505 | 6,555 | ||
Health & Biosciences | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 6,707 | 6,749 | ||
Pharma Solutions | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 1,269 | 1,282 | ||
Scent [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,817 | $ 1,828 | ||
International Flavors & Fragrances Inc | DuPont de Nemours, Inc | Nutrition & Biosciences, Inc | ||||
Business Acquisition [Line Items] | ||||
Percentage of interests acquired | 55.40% |
Acquisitions - Schedule of purc
Acquisitions - Schedule of purchase price (Details) - Nutrition & Biosciences, Inc $ in Millions | Feb. 01, 2021USD ($)shares |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred, Total | $ | $ 15,942 |
Shares issued as part of merger consideration (shares) | shares | 141,740,461 |
Acquisitions - Schedule of asse
Acquisitions - Schedule of assets acquired and liabilities assumed (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||
Goodwill | $ 16,298 | $ 16,414 |
Acquisitions - Unaudited pro fo
Acquisitions - Unaudited pro forma information (Details) - Nutrition & Biosciences, Inc $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |
Unaudited pro forma net sales | $ 2,972 |
Unaudited pro forma net income attributable to the Company | $ 219 |
Restructuring and Other Charg_3
Restructuring and Other Charges, Net - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022USD ($)FacilityPosition | Mar. 31, 2021USD ($) | Dec. 31, 2019Position | Dec. 31, 2021USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 2 | $ 4 | ||
Severance Costs | 4 | $ 3 | ||
Restructuring Reserve | 25 | $ 29 | ||
Additional Charges (Reversals), Net | $ 2 | |||
Frutarom Integration Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected number of sites closed | Facility | 30 | |||
Number of facilities closed | Facility | 22 | |||
Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of positions expected to be eliminated | Position | 265 | |||
Restructuring Reserve | $ 1 | 1 | ||
Additional Charges (Reversals), Net | 0 | |||
Employee Severance | Nutrition & Biosciences, Inc | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 32 | |||
Restructuring Reserve | 12 | 15 | ||
Additional Charges (Reversals), Net | 2 | |||
Employee Severance | Frutarom Integration Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 37 | |||
Payments for restructuring | 42 | |||
Restructuring Reserve | 5 | 5 | ||
Additional Charges (Reversals), Net | 0 | |||
Employee Severance | 2019 Severance Initiatives | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 20 | |||
Number of positions expected to be eliminated | Position | 190 | |||
Restructuring Reserve | 5 | 5 | ||
Additional Charges (Reversals), Net | 0 | |||
Other | Frutarom Integration Initiative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | 2 | $ 3 | ||
Additional Charges (Reversals), Net | $ 0 |
Restructuring and Other Charg_4
Restructuring and Other Charges, Net - Changes in Employee-Related Restructuring Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $ 29 | |
Additional Charges (Reversals), Net | 2 | |
Non-Cash Charges | 0 | |
Additional charges, net | 2 | $ 4 |
Payments | (6) | |
Ending Balance | 25 | |
Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 1 | |
Additional Charges (Reversals), Net | 0 | |
Non-Cash Charges | 0 | |
Payments | 0 | |
Ending Balance | 1 | |
Employee Severance | Nutrition & Biosciences, Inc | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 15 | |
Additional Charges (Reversals), Net | 2 | |
Additional charges, net | 32 | |
Payments | (5) | |
Ending Balance | 12 | |
Other | Nutrition & Biosciences, Inc | ||
Restructuring Reserve [Roll Forward] | ||
Non-Cash Charges | 0 | |
Frutarom Integration Initiative | Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 5 | |
Additional Charges (Reversals), Net | 0 | |
Non-Cash Charges | 0 | |
Additional charges, net | 37 | |
Payments | 0 | |
Ending Balance | 5 | |
Frutarom Integration Initiative | Other | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 3 | |
Additional Charges (Reversals), Net | 0 | |
Non-Cash Charges | 0 | |
Payments | (1) | |
Ending Balance | 2 | |
2019 Severance Initiatives | Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 5 | |
Additional Charges (Reversals), Net | 0 | |
Non-Cash Charges | 0 | |
Additional charges, net | 20 | |
Payments | 0 | |
Ending Balance | 5 | |
Taste | ||
Restructuring Reserve [Roll Forward] | ||
Additional charges, net | 2 | 3 |
Scent [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Additional charges, net | $ 0 | $ 1 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Movements in Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2021 | $ 16,414 |
Foreign exchange | (116) |
Balance at March 31, 2022 | 16,298 |
Goodwill [Line Items] | |
Goodwill | 16,298 |
Foreign exchange | (116) |
Taste | |
Goodwill [Roll Forward] | |
Balance at December 31, 2021 | 6,555 |
Foreign exchange | (50) |
Balance at March 31, 2022 | 6,505 |
Goodwill [Line Items] | |
Goodwill | 6,505 |
Foreign exchange | (50) |
Scent [Member] | |
Goodwill [Roll Forward] | |
Balance at December 31, 2021 | 1,828 |
Foreign exchange | (11) |
Balance at March 31, 2022 | 1,817 |
Goodwill [Line Items] | |
Goodwill | 1,817 |
Foreign exchange | (11) |
Health & Biosciences | |
Goodwill [Roll Forward] | |
Balance at December 31, 2021 | 6,749 |
Foreign exchange | (42) |
Balance at March 31, 2022 | 6,707 |
Goodwill [Line Items] | |
Goodwill | 6,707 |
Foreign exchange | (42) |
Pharma Solutions | |
Goodwill [Roll Forward] | |
Balance at December 31, 2021 | 1,282 |
Foreign exchange | (13) |
Balance at March 31, 2022 | 1,269 |
Goodwill [Line Items] | |
Goodwill | 1,269 |
Foreign exchange | $ (13) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Schedule of Other Intangible Assets, Net (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Total carrying value | $ 11,803 | $ 11,890 |
Total accumulated amortization | (1,553) | (1,384) |
Other intangible assets, net | 10,250 | 10,506 |
Other Intangible Assets, Net | 10,250 | 10,506 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total carrying value | 8,878 | 8,935 |
Total accumulated amortization | (991) | (887) |
Technological know-how | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total carrying value | 2,470 | 2,494 |
Total accumulated amortization | (441) | (388) |
Trade names & patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total carrying value | 405 | 411 |
Total accumulated amortization | (76) | (68) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total carrying value | 50 | 50 |
Total accumulated amortization | $ (45) | $ (41) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of acquisition-related intangibles | $ 186 | $ 152 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Net - Future Estimated Amortization Expense (Details) $ in Millions | Mar. 31, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 564 |
2023 | 743 |
2024 | 742 |
2025 | 740 |
2026 | $ 737 |
Other Assets and Liabilities,_3
Other Assets and Liabilities, Current and Noncurrent - Schedule of Other Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Other Assets [Abstract] | ||
Finance lease right-of-use assets | $ 20 | $ 21 |
Deferred Income Taxes and Other Assets, Noncurrent | 111 | 82 |
Overfunded pension plans | 134 | 136 |
Cash surrender value of life insurance contracts | 49 | 52 |
Other | 255 | 239 |
Total | 654 | 616 |
Value Added Tax Receivable, Current | 196 | 178 |
Income Taxes Receivable, Current | 107 | 131 |
Prepaid Expense, Current | 328 | 288 |
Assets held for sale | 1,141 | 1,122 |
Accounts and Other Receivables, Net, Current | 119 | 131 |
Prepaid expenses and other current assets | 750 | 728 |
Sales and Excise Tax Payable, Current | 55 | 50 |
Interest Payable, Current | 70 | 48 |
Liability, Pension and Other Postretirement and Postemployment Benefits, Current | 9 | 11 |
Accrued Insurance, Current | 9 | 10 |
Restructuring Reserve | 25 | 29 |
Other current liabilities | 107 | 109 |
Finance Lease, Liability, Current | 5 | 5 |
Accrued Income Taxes, Current | 151 | 94 |
Liabilities held for sale | 87 | 101 |
Other Accounts Payable and Accrued Liabilities | 267 | 270 |
Other Sundry Liabilities, Current | 108 | 93 |
Other current liabilities | 916 | 832 |
Rebates and Incentives Payable, Current | 110 | 113 |
Equity Method Investments | $ 85 | $ 86 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Commercial Paper | $ 631 | $ 324 |
Long-term Debt, Gross | 11,677 | 11,400 |
Less: Short term borrowings | (939) | (632) |
Long-term debt | 10,738 | 10,768 |
Proceeds from issuance of commercial paper (maturities after three months) | 873 | |
Repayments of Commercial Paper | $ 566 | |
2023 Notes | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 3.30% | |
Credit facilities | $ 300 | 300 |
2024 Euro Notes | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 1.88% | |
Credit facilities | $ 554 | 565 |
2026 Euro Notes | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 1.93% | |
Credit facilities | $ 882 | 900 |
2028 Notes | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 4.57% | |
Credit facilities | $ 397 | 397 |
2047 Notes | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 4.44% | |
Credit facilities | $ 495 | 494 |
2048 Notes | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 5.12% | |
Credit facilities | $ 787 | 786 |
2024 Term Loan Facility(6) | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 1.56% | |
Credit facilities | $ 625 | 625 |
Bank overdrafts and other | ||
Debt Instrument [Line Items] | ||
Bank overdrafts and other | $ 8 | 7 |
Senior Notes, Due Two Thousand Twenty Two | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 0.69% | |
Senior Notes, Current | $ 300 | 300 |
Senior Notes, Due Two Thousand Twenty Five | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 1.22% | |
Credit facilities | $ 1,000 | 1,001 |
Senior Notes, Due Two Thousand Twenty Seven | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 1.56% | |
Credit facilities | $ 1,217 | 1,218 |
Senior Notes, Due Two Thousand Thirty | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 2.21% | |
Credit facilities | $ 1,510 | 1,511 |
Senior Notes, Due Two Thousand Forty | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 3.04% | |
Credit facilities | $ 774 | 775 |
Senior Notes, Due Two Thousand Fifty | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 3.21% | |
Credit facilities | $ 1,572 | 1,572 |
2026 Term Loan | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 1.94% | |
Credit facilities | $ 625 | $ 625 |
Commercial Paper | Loans payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 0.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 50 years | |
Option to extend lease term | 5 years | |
Operating lease liability | $ 653 | $ 670 |
Operating lease right-of-use assets | $ 743 | $ 767 |
Leases - Lease expenses (Detail
Leases - Lease expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 47 | $ 32 |
Finance Lease, Cost | $ 2 | $ 1 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 35 | $ 27 |
Financing cash flows for finance leases | 2 | 1 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 18 | 11 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 1 | $ 1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Taxes [Line Items] | ||
Domestic earnings repatriated | $ 87,000,000 | |
Undistributed foreign earnings | $ 0 | |
Effective tax rate | 13.70% | 25.90% |
Foreign Tax Authority | ||
Income Taxes [Line Items] | ||
Provision for uncertain tax positions | $ 168,000,000 | |
Other Liabilities | ||
Income Taxes [Line Items] | ||
Unrecognized tax benefits that would impact effective tax rate | 131,000,000 | |
Accrued interest and penalties | 37,000,000 | |
Other Current Liabilities | ||
Income Taxes [Line Items] | ||
Unrecognized tax benefits that would impact effective tax rate | 0 | |
Accrued interest and penalties | $ 0 |
Stock Compensation Plans - Stoc
Stock Compensation Plans - Stock-Based Compensation Expense and Related Tax Benefits (Detail) - USD ($) $ in Millions | Feb. 01, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 9 | $ 14 | |
Less: Tax benefit | (2) | (3) | |
Total stock-based compensation expense, after tax | 7 | 11 | |
Nutrition & Biosciences, Inc | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued as part of merger consideration (shares) | 141,740,461 | ||
Equity-based awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 9 | 11 | |
Liability-based awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 0 | $ 3 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2022categorysegment | Mar. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of segments | segment | 4 | |
Number of categories | category | 2 | |
Net sales attributed to all foreign countries | Sales | Customer Concentration Risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Maximum percentage of total consolidated net sales attributed to any non-U.S. country | 6.00% | 6.00% |
Segment Information - Reportabl
Segment Information - Reportable Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net sales: | ||
Net sales | $ 3,226 | $ 2,465 |
Segment Adjusted Operating EBITDA: | ||
Segment Adjusted Operating EBITDA | 702 | 569 |
Other Depreciation and Amortization | 303 | 242 |
Restructuring and other charges, net | (2) | (4) |
Shareholder Activism Related Costs | 3 | 7 |
Business Divestiture Costs | (30) | 0 |
Severance Costs | (4) | (3) |
Interest expense | (72) | (65) |
Other income, net | 16 | 7 |
Income before taxes | 285 | (54) |
Corporate and Other | ||
Segment Adjusted Operating EBITDA: | ||
Integration-related costs | (18) | (38) |
Restructuring and other charges, net | (2) | (4) |
Taste | ||
Segment Adjusted Operating EBITDA: | ||
Restructuring and other charges, net | (2) | (3) |
Scent [Member] | ||
Segment Adjusted Operating EBITDA: | ||
Restructuring and other charges, net | 0 | (1) |
Operating Segments | Health & Biosciences | ||
Net sales: | ||
Net sales | 661 | 426 |
Segment Adjusted Operating EBITDA: | ||
Segment Adjusted Operating EBITDA | 192 | 128 |
Operating Segments | Pharma Solutions | ||
Net sales: | ||
Net sales | 249 | 162 |
Segment Adjusted Operating EBITDA: | ||
Segment Adjusted Operating EBITDA | 65 | 43 |
Operating Segments | Taste | ||
Net sales: | ||
Net sales | 1,731 | 1,308 |
Segment Adjusted Operating EBITDA: | ||
Segment Adjusted Operating EBITDA | 329 | 270 |
Operating Segments | Scent [Member] | ||
Net sales: | ||
Net sales | 585 | 569 |
Segment Adjusted Operating EBITDA: | ||
Segment Adjusted Operating EBITDA | 116 | 128 |
Nutrition & Biosciences, Inc | Corporate and Other | ||
Segment Adjusted Operating EBITDA: | ||
N&B Inventory Step-Up Costs | 0 | (182) |
Transaction related costs | 0 | (89) |
Frutarom | Corporate and Other | ||
Segment Adjusted Operating EBITDA: | ||
Transaction related costs | $ (1) | $ 0 |
Segment Information Segment Inf
Segment Information Segment Information - Net Sales by Destination of Product Delivery (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 3,226 | $ 2,465 |
Europe, Africa and Middle East | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 1,128 | 873 |
Greater Asia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 744 | 587 |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 1,002 | 722 |
Latin America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 352 | 283 |
Geographic Concentration Risk | Net sales related to the U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 901 | 654 |
Geographic Concentration Risk | Net sales attributed to all foreign countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 2,325 | $ 1,811 |
Customer Concentration Risk | Net sales attributed to all foreign countries | Sales | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Maximum percentage of total consolidated net sales attributed to any non-U.S. country | 6.00% | 6.00% |
Employee Benefits - Pension and
Employee Benefits - Pension and Other Defined Contribution Retirement Plan Expenses (Detail) - Pension Plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on projected benefit obligation | $ 4 | $ 3 |
Expected return on plan assets | (5) | (5) |
Net amortization and deferrals | 2 | 2 |
Net periodic benefit (income) cost | 1 | 0 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost for benefits earned | 9 | 10 |
Interest cost on projected benefit obligation | 5 | 2 |
Expected return on plan assets | (11) | (12) |
Net amortization and deferrals | 3 | 5 |
Net periodic benefit (income) cost | 6 | $ 5 |
Contribution to the plans | $ 7 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets for Plan Benefits, Defined Benefit Plan | $ 134,000,000 | $ 136,000,000 |
Defined Contribution and Other Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to the plans | 1,000,000 | |
Expected contribution to the plan | 4,000,000 | |
U.S. Plans | Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit payments | 0 | |
U.S. Plans | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contribution to the plan | 5,000,000 | |
U.S. Plans | Nonqualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit payments | 1,000,000 | |
Non-U.S. Plans | Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contribution to the plan | 33,000,000 | |
Contribution to the plans | $ 7,000,000 |
Employee Benefits - Postretirem
Employee Benefits - Postretirement Benefits Other Than Pension Expenses (Detail) - Defined Contribution and Other Retirement Plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net amortization and deferrals | $ (1) | $ (1) |
Net periodic benefit (income) cost | $ (1) | $ (1) |
Financial Instruments - Carryin
Financial Instruments - Carrying Amount and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial Paper | $ 631 | $ 324 |
Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 657 | 711 |
Credit facilities and bank overdrafts | 8 | 7 |
Derivative Liability | 8 | 7 |
Commercial Paper | 631 | 324 |
Reported Value Measurement | 2023 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 300 | 300 |
Reported Value Measurement | 2024 Euro Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 554 | 565 |
Reported Value Measurement | 2026 Euro Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 882 | 900 |
Reported Value Measurement | 2028 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 397 | 397 |
Reported Value Measurement | 2048 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 787 | 786 |
Reported Value Measurement | 2047 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 495 | 494 |
Reported Value Measurement | 2024 Term Loan Facility(6) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 625 | 625 |
Reported Value Measurement | Senior Notes, Due Two Thousand Twenty Two | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Current | 300 | 300 |
Reported Value Measurement | Senior Notes, Due Two Thousand Twenty Five | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 1,000 | 1,001 |
Reported Value Measurement | Senior Notes, Due Two Thousand Twenty Seven | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 1,217 | 1,218 |
Reported Value Measurement | Senior Notes, Due Two Thousand Thirty | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 1,510 | 1,511 |
Reported Value Measurement | Senior Notes, Due Two Thousand Forty | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 774 | 775 |
Reported Value Measurement | Senior Notes, Due Two Thousand Fifty | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 1,572 | 1,572 |
Reported Value Measurement | 2026 Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 625 | 625 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 657 | 711 |
Credit facilities and bank overdrafts | 8 | 7 |
Derivative Liability | 8 | 7 |
Commercial Paper | 631 | 324 |
Estimate of Fair Value Measurement [Member] | 2023 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 301 | 308 |
Estimate of Fair Value Measurement [Member] | 2024 Euro Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 561 | 585 |
Estimate of Fair Value Measurement [Member] | 2026 Euro Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 888 | 960 |
Estimate of Fair Value Measurement [Member] | 2028 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 415 | 452 |
Estimate of Fair Value Measurement [Member] | 2048 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 872 | 1,026 |
Estimate of Fair Value Measurement [Member] | 2047 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 494 | 585 |
Estimate of Fair Value Measurement [Member] | 2024 Term Loan Facility(6) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 625 | 625 |
Estimate of Fair Value Measurement [Member] | Senior Notes, Due Two Thousand Twenty Two | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Current | 298 | 300 |
Estimate of Fair Value Measurement [Member] | Senior Notes, Due Two Thousand Twenty Five | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 924 | 968 |
Estimate of Fair Value Measurement [Member] | Senior Notes, Due Two Thousand Twenty Seven | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 1,089 | 1,180 |
Estimate of Fair Value Measurement [Member] | Senior Notes, Due Two Thousand Thirty | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 1,333 | 1,466 |
Estimate of Fair Value Measurement [Member] | Senior Notes, Due Two Thousand Forty | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 662 | 762 |
Estimate of Fair Value Measurement [Member] | Senior Notes, Due Two Thousand Fifty | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | 1,307 | 1,556 |
Estimate of Fair Value Measurement [Member] | 2026 Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes, Noncurrent | $ 625 | $ 625 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 8 | $ 7 |
Cross currency swaps | ||
Derivative [Line Items] | ||
Derivative instruments outstanding | 1,700 | 300 |
Fair value of derivative liabilities | 6 | 5 |
Cross currency swaps | Net Investment Hedging [Member] | ||
Derivative [Line Items] | ||
Derivative instruments outstanding | 1,400 | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 6 | 5 |
Designated as Hedging Instrument | Cross currency swaps | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 6 | $ 5 |
Designated as Hedging Instrument | Interest rate swaps | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 6 |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments Notional Amount Outstanding (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Foreign currency contracts | ||
Schedule Of Information By Major Category Of Credit Derivatives Contracts [Line Items] | ||
Derivative instruments outstanding | $ 42 | $ 46 |
Commodity contracts | ||
Schedule Of Information By Major Category Of Credit Derivatives Contracts [Line Items] | ||
Derivative instruments outstanding | 4 | 10 |
Cross currency swaps | ||
Schedule Of Information By Major Category Of Credit Derivatives Contracts [Line Items] | ||
Derivative instruments outstanding | $ 1,700 | $ 300 |
Financial Instruments - Deriv_2
Financial Instruments - Derivative Instruments Measured at Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 8 | $ 7 |
Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 2 | 2 |
Cross currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 6 | 5 |
Fair Value of Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 6 | 5 |
Fair Value of Derivatives Designated as Hedging Instruments [Member] | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 0 | 0 |
Fair Value of Derivatives Designated as Hedging Instruments [Member] | Cross currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 6 | 5 |
Fair Value of Derivatives Designated as Hedging Instruments [Member] | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 6 | |
Fair Value of Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 2 | 2 |
Fair Value of Derivatives Not Designated as Hedging Instruments [Member] | Foreign currency contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | 2 | 2 |
Fair Value of Derivatives Not Designated as Hedging Instruments [Member] | Cross currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 0 | $ 0 |
Financial Instruments - Deriv_3
Financial Instruments - Derivative Instruments Which Were Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Foreign currency contracts | Other Nonoperating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 2 | $ (3) |
Financial Instruments - Deriv_4
Financial Instruments - Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 22 | $ 78 |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | (2) |
Foreign currency contracts | Derivatives in Cash Flow Hedging Relationships [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 0 | 4 |
Cross Currency Swaps | Derivatives in Net Investment Hedging Relationships [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | (1) | 9 |
Foreign currency contracts | Cost of goods sold | Derivatives in Cash Flow Hedging Relationships [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | (2) |
2024 Euro Notes | Derivatives in Net Investment Hedging Relationships [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 9 | 20 |
Senior Notes Maturing 2021 through 2026 | Derivatives in Net Investment Hedging Relationships [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 14 | $ 45 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Stockholders' Equity Attributable to Parent | $ 21,082 | |
Net current period other comprehensive income (loss) | (199) | $ (404) |
Stockholders' Equity Attributable to Parent | 20,933 | |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Stockholders' Equity Attributable to Parent | (1,133) | (285) |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (199) | (417) |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 0 | 0 |
Net current period other comprehensive income (loss) | (199) | (417) |
Stockholders' Equity Attributable to Parent | (1,332) | (702) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Stockholders' Equity Attributable to Parent | 1 | (7) |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 0 | 2 |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 0 | (2) |
Net current period other comprehensive income (loss) | 0 | 4 |
Stockholders' Equity Attributable to Parent | 1 | (3) |
Accumulated Defined Benefit Plans Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Stockholders' Equity Attributable to Parent | (291) | (406) |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (3) | 2 |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (3) | (7) |
Net current period other comprehensive income (loss) | 0 | 9 |
Stockholders' Equity Attributable to Parent | (291) | (397) |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Stockholders' Equity Attributable to Parent | (1,423) | (698) |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (202) | (413) |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (3) | (9) |
Net current period other comprehensive income (loss) | (199) | (404) |
Stockholders' Equity Attributable to Parent | $ (1,622) | $ (1,102) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications of Accumulated Other Comprehensive Income to Consolidated Statement of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Foreign currency contracts | $ 2,081 | $ 1,711 |
Interest Expense | (72) | (65) |
Tax | 39 | (14) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Tax | 0 | (1) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Foreign currency contracts | ||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Foreign currency contracts | 0 | (3) |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2 | 2 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (5) | (8) |
Accumulated Defined Benefit Plans Adjustment | ||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Tax | 0 | (1) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Total | 0 | (2) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||
Schedule Of Reclassification Of Accumulated Other Comprehensive Income Loss [Line Items] | ||
Total | $ (3) | $ (7) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Mar. 11, 2020 | Oct. 29, 2019 | Mar. 31, 2022 | Sep. 30, 2020 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2021 |
Commitments And Contingencies [Line Items] | |||||||
Bank guarantees related to appeals on income tax and indirect tax cases | $ 16,000,000 | ||||||
Available lines of credit | 1,864,000,000 | ||||||
Property, Plant and Equipment, Net | 4,295,000,000 | $ 4,368,000,000 | |||||
Bank guarantees and pledged assets to pursue defenses related to other contingencies | 24,000,000 | ||||||
Line of Credit Facility, Current Borrowing Amount/Total Amount Drawn Down | 642,000,000 | ||||||
Commercial Guarantees, Amount Outstanding | 105,000,000 | ||||||
Bank Guarantees and Standby Letters of Credit, Amount Outstanding | 12,000,000 | ||||||
Commercial Paper | 631,000,000 | $ 324,000,000 | |||||
Pharma Solutions | |||||||
Commitments And Contingencies [Line Items] | |||||||
Malpractice accrual | 30,000,000 | ||||||
Recall costs accrued | 31,000,000 | ||||||
Pledged assets | |||||||
Commitments And Contingencies [Line Items] | |||||||
The amount of pledged assets, principally PP&E to cover income tax and indirect tax assessments | 8,000,000 | ||||||
Bank Guarantees, Commercial Guarantees, Standby Letters Of Credit and Surety Bonds | |||||||
Commitments And Contingencies [Line Items] | |||||||
Bank Guarantees, Commercial Guarantees, Letters Of Credit and Surety Bonds Outstanding | 405,000,000 | ||||||
Zhejiang Ingredients Plant | |||||||
Commitments And Contingencies [Line Items] | |||||||
Gain Contingency, Expected Relocation Payments | $ 13,000,000 | $ 50,000,000 | |||||
Gain Contingency, Relocation Payments Received | $ 30,000,000 | ||||||
Minimum | |||||||
Commitments And Contingencies [Line Items] | |||||||
Estimation of possible loss | 0 | ||||||
Maximum | |||||||
Commitments And Contingencies [Line Items] | |||||||
Estimation of possible loss | 35,000,000 | ||||||
Amended credit facility | Citibank, N.A. | |||||||
Commitments And Contingencies [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 842,000,000 | ||||||
CHINA | |||||||
Commitments And Contingencies [Line Items] | |||||||
Property, Plant and Equipment, Net | 274,000,000 | ||||||
CHINA | Guangzhou Flavors Plant | |||||||
Commitments And Contingencies [Line Items] | |||||||
Property, Plant and Equipment, Net | 59,000,000 | ||||||
CHINA | Guangzhou Fragrance Plant | |||||||
Commitments And Contingencies [Line Items] | |||||||
Property, Plant and Equipment, Net | $ 8,000,000 | ||||||
Chief Executive Officer | |||||||
Commitments And Contingencies [Line Items] | |||||||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 20,000,000 | $ 20,000,000 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Balance at beginning | $ 35 | |
Share of profit or loss attributable to redeemable noncontrolling interests | 2 | $ 2 |
Exercises of redeemable noncontrolling interests | 4 | |
Balance at end | 32 | |
Redeemable Noncontrolling Interest | ||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Balance at beginning | 105 | 98 |
Impact of foreign exchange translation | (4) | 2 |
Share of profit or loss attributable to redeemable noncontrolling interests | 1 | |
Redemption value adjustment for the current period | 1 | |
Balance at end | $ 101 | $ 102 |
Subsequent Event (Details)
Subsequent Event (Details) - Health Wright Products, Inc. (“Health Wright”) $ in Millions | Apr. 01, 2022USD ($) |
Subsequent Event [Line Items] | |
Percentage of voting interest acquired | 100.00% |
Forecast | |
Subsequent Event [Line Items] | |
Additional contingent consideration | $ 44 |
Subsequent Event | |
Subsequent Event [Line Items] | |
Payments to acquire businesses | 131 |
Subsequent Event | Health Wright Products, Inc. (“Health Wright”) | |
Subsequent Event [Line Items] | |
Payments to acquire businesses | $ 123 |
Assets Held For Sale (Details)
Assets Held For Sale (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Assets | ||
Operating lease right-of-use assets | $ 743 | $ 767 |
Liabilities | ||
Assets held for sale | 1,141 | 1,122 |
Liabilities held for sale | 87 | $ 101 |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Microbial Control | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from sale of business unit | 1,282 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Microbial Control | ||
Discontinued Operations and Disposal Groups [Abstract] | ||
Total assets held-for-sale | 1,141 | |
Inventories | 129 | |
Total liabilities held-for-sale | 87 | |
Assets | ||
Trade Receivables, net | 78 | |
Inventories | 129 | |
Property, plant and equipment, net | 28 | |
Goodwill | 536 | |
Other intangible assets, net | 349 | |
Operating lease right-of-use assets | 4 | |
Other assets | 17 | |
Total assets held-for-sale | 1,141 | |
Liabilities | ||
Accounts payable | 55 | |
Disposal Group, Including Discontinued Operation, Deferred Tax Liabilities | 24 | |
Other liabilities | 8 | |
Total liabilities held-for-sale | $ 87 |