Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 21, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-4858 | ||
Entity Registrant Name | INTERNATIONAL FLAVORS & FRAGRANCES INC | ||
Entity Central Index Key | 0000051253 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
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 | 10019-2960 | ||
City Area Code | 212 | ||
Local Phone Number | 765-5500 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 20,313,097,570 | ||
Entity Common Stock, Shares Outstanding | 255,314,909 | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement for the 2024 Annual Meeting of Shareholders (the “IFF 2024 Proxy Statement”) are incorporated by reference in Part III of this Form 10-K. | ||
Document Financial Statement Error Correction [Flag] | true | ||
Document Financial Statement Restatement Recovery Analysis [Flag] | true | ||
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 | 19803-2907 | ||
Common stock | |||
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 [Member] | |||
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 [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.800% Senior Notes due 2026 | ||
Trading Symbol | IFF 26 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 238 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 11,479 | $ 12,440 | $ 11,656 |
Cost of goods sold | 7,798 | 8,289 | 7,921 |
Gross profit | 3,681 | 4,151 | 3,735 |
Research and development expenses | 636 | 603 | 629 |
Selling and administrative expenses | 1,787 | 1,768 | 1,749 |
Restructuring and other charges | 68 | 12 | 41 |
Amortization of acquisition-related intangibles | 680 | 727 | 732 |
Impairment of goodwill | 2,623 | 2,250 | 0 |
Impairment of long-lived assets | 0 | 120 | 0 |
Gains on sale of assets | (3) | (3) | (1) |
Operating (loss) profit | (2,110) | (1,326) | 585 |
Interest expense | 380 | 336 | 289 |
Other expense (income), net | 28 | (37) | (58) |
(Loss) income before taxes | (2,518) | (1,625) | 354 |
Provision for income taxes | 45 | 239 | 75 |
Net (loss) income | (2,563) | (1,864) | 279 |
Net income attributable to non-controlling interest | 4 | 7 | 9 |
Net income available to IFF common shareholders | (2,567) | (1,871) | 270 |
Other comprehensive income (loss), after tax: | |||
Foreign currency translation adjustments | 414 | (933) | (848) |
Gains on derivatives qualifying as hedges | 0 | 0 | 8 |
Pension and postretirement liability adjustment | (112) | 158 | 115 |
Other comprehensive income (loss) | 302 | (775) | (725) |
Comprehensive loss | (2,261) | (2,639) | (446) |
Comprehensive loss attributable to IFF shareholders | $ (2,265) | $ (2,646) | $ (455) |
Net income per share - basic (in dollars per share) | $ (10.05) | $ (7.32) | $ 1.11 |
Net income per share - diluted (in dollars per share) | $ (10.05) | $ (7.32) | $ 1.10 |
Average number of shares outstanding - basic (in shares) | 255 | 255 | 243 |
Average number of shares outstanding - diluted (in shares) | 255 | 255 | 243 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 703 | $ 483 |
Restricted cash | 6 | 10 |
Receivables, net, current | 1,726 | 1,818 |
Inventories | 2,477 | 3,151 |
Assets held for sale | 506 | 1,200 |
Prepaid expenses and other current assets | 875 | 770 |
Total Current Assets | 6,293 | 7,432 |
Property, plant and equipment, net | 4,240 | 4,203 |
Goodwill | 10,635 | 13,373 |
Other intangible assets, net | 8,357 | 9,082 |
Operating lease right-of-use assets | 689 | 743 |
Other assets | 764 | 689 |
Total Assets | 30,978 | 35,522 |
Current Liabilities: | ||
Bank borrowings, overdrafts and current portion of long-term debt | 885 | 410 |
Commercial paper | 0 | 187 |
Accounts payable | 1,378 | 1,418 |
Accrued payroll and bonus | 265 | 267 |
Dividends payable | 207 | 206 |
Liabilities held for sale | 46 | 212 |
Other current liabilities | 977 | 1,028 |
Total Current Liabilities | 3,758 | 3,728 |
Other Liabilities: | ||
Long-term debt | 9,186 | 10,373 |
Retirement liabilities | 253 | 231 |
Deferred income taxes | 1,937 | 2,283 |
Operating lease liabilities | 642 | 672 |
Other liabilities | 560 | 491 |
Total Other Liabilities | 12,578 | 14,050 |
Commitments and Contingencies (Note 19) | ||
Redeemable non-controlling interests | 0 | 59 |
Shareholders’ Equity: | ||
Common stock, value, issued | 35 | 35 |
Capital in excess of par value | 19,874 | 19,841 |
(Accumulated deficit) retained earnings | (2,439) | 955 |
Accumulated other comprehensive loss | (1,896) | (2,198) |
Treasury stock, value | (963) | (978) |
Total Shareholders’ Equity | 14,611 | 17,655 |
Non-controlling interest | 31 | 30 |
Total Shareholders’ Equity including non-controlling interest | 14,642 | 17,685 |
Total Liabilities and Shareholders’ Equity | $ 30,978 | $ 35,522 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for credit losses | $ 52 | $ 53 |
Common stock, par value (in dollars per share) | $ 0.125 | $ 0.125 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 275,726,629 | 275,726,629 |
Common stock, shares outstanding (in shares) | 255,288,535 | 254,968,463 |
Treasury stock, shares | 20,438,094 | 20,758,166 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (2,563) | $ (1,864) | $ 279 |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation and amortization | 1,142 | 1,179 | 1,156 |
Deferred income taxes | (369) | (237) | (236) |
Gains on sale of assets | (3) | (3) | (1) |
Losses (gains) on business divestitures | 23 | (11) | (13) |
Stock-based compensation | 65 | 49 | 54 |
Pension contributions | (36) | (36) | (37) |
Amortization Of Inventory Step-Up | 0 | 0 | 368 |
Impairment of goodwill | 2,623 | 2,250 | 0 |
Impairment of long-lived assets | 0 | 120 | 0 |
Inventory Write-down | 72 | 0 | 0 |
Changes in assets and liabilities, net of acquisitions: | |||
Trade receivables | 51 | (117) | (169) |
Inventories | 605 | (893) | (363) |
Accounts payable | (39) | (57) | 419 |
Accruals for incentive compensation | (2) | (34) | 96 |
Other current payables and accrued expenses | 19 | 92 | 4 |
Other assets/liabilities, net | (149) | (41) | (120) |
Net cash provided by operating activities | 1,439 | 397 | 1,437 |
Cash flows from investing activities: | |||
Cash paid for acquisitions, net of cash received | 0 | (110) | 0 |
Additions to property, plant and equipment | (503) | (504) | (393) |
Additions to intangible assets | 0 | (2) | (4) |
Proceeds from disposal of assets | 27 | 8 | 18 |
Proceeds from unwinding of derivative instruments | 0 | 173 | 0 |
Cash acquired from acquisition | 0 | 11 | 246 |
Net proceeds received from business divestitures | 1,050 | 1,169 | 115 |
Net cash provided by (used in) investing activities | 574 | 745 | (18) |
Cash flows from financing activities: | |||
Cash dividends paid to shareholders | (826) | (810) | (667) |
Payments of Ordinary Dividends, Noncontrolling Interest | (13) | 0 | (2) |
(Decrease) increase in revolving credit facility and short term borrowings | (99) | 104 | (105) |
Proceeds from issuance of commercial paper (maturities after three months) | 0 | 225 | 0 |
Repayments of commercial paper (maturities after three months) | 0 | (421) | 0 |
Net (repayments) borrowings of commercial paper (maturities less than three months) | (187) | 48 | 324 |
Deferred financing costs | (5) | 0 | (3) |
Repayments of long-term debt | (655) | (300) | (828) |
Purchases of redeemable non-controlling interests | (39) | (47) | 0 |
Proceeds from issuance of long-term debt | 0 | 0 | (3) |
Deferred consideration paid | (6) | 0 | (14) |
Employee withholding taxes paid | (13) | (21) | (21) |
Other, net | (8) | (7) | 9 |
Net cash used in financing activities | (1,851) | (1,229) | (1,304) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 21 | (77) | (59) |
Net change in cash, cash equivalents and restricted cash | 183 | (164) | 56 |
Cash, cash equivalents and restricted cash at beginning of year | 552 | 716 | 660 |
Cash, cash equivalents and restricted cash at end of year | 735 | 552 | 716 |
Supplemental Disclosures: | |||
Interest paid, net of amounts capitalized | 370 | 310 | 310 |
Income taxes paid | 578 | 329 | 289 |
Accrued capital expenditures | $ 109 | $ 150 | $ 117 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY - USD ($) $ in Millions | Total | Common stock | Capital in excess of par value | Retained earnings (accumulated deficit) | Accumulated other comprehensive (loss) income | Treasury stock | Non-controlling interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Treasury stock, shares | 21,588,147 | ||||||
Beginning balance , common stock (in shares) at Dec. 31, 2020 | (128,526,137) | ||||||
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 (loss) income | 273 | 270 | 3 | ||||
Cumulative translation adjustment | (848) | (848) | |||||
Gains (losses) on derivatives qualifying as hedges, net of tax | 8 | 8 | |||||
Pension liability and postretirement adjustment; net of tax | 115 | 115 | |||||
Cash dividends declared | (785) | (785) | |||||
Stock options/SSARs (in shares) | 159,222 | ||||||
Stock options/SSARs | 11 | 4 | $ 7 | ||||
Impact of N&B Merger (in shares) | 141,740,461 | ||||||
Purchase of NCI | 15,976 | $ 18 | 15,936 | 22 | |||
Conversion of tangible equity units (in shares) | 5,460,031 | ||||||
Conversion of tangible equity units | 0 | $ 1 | (1) | ||||
Vested restricted stock units and awards | (5) | (18) | $ 13 | ||||
Vested restricted stock units and awards (in shares) | 276,280 | ||||||
Stock-based compensation | 54 | 54 | |||||
Redeemable NCI | (2) | (2) | |||||
Dividends on non-controlling interest and other | (2) | (2) | |||||
Ending balance (in shares) at Dec. 31, 2021 | (275,726,629) | ||||||
Ending balance at Dec. 31, 2021 | 21,117 | $ 35 | 19,826 | 3,641 | (1,423) | $ (997) | 35 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Treasury stock, shares | 21,152,645 | ||||||
Net (loss) income | (1,868) | (1,871) | 3 | ||||
Cumulative translation adjustment | (933) | (933) | |||||
Gains (losses) on derivatives qualifying as hedges, net of tax | 0 | ||||||
Pension liability and postretirement adjustment; net of tax | 158 | 158 | |||||
Cash dividends declared | (815) | (815) | |||||
Stock options/SSARs (in shares) | 85,728 | ||||||
Stock options/SSARs | 15 | 11 | $ 4 | ||||
Vested restricted stock units and awards | (26) | (41) | $ 15 | ||||
Vested restricted stock units and awards (in shares) | 308,751 | ||||||
Stock-based compensation | 49 | 49 | |||||
Purchase of NCI | (5) | 1 | (6) | ||||
Redeemable NCI | (5) | (5) | |||||
Dividends on non-controlling interest and other | (2) | (2) | |||||
Ending balance (in shares) at Dec. 31, 2022 | (275,726,629) | ||||||
Ending balance at Dec. 31, 2022 | $ 17,685 | $ 35 | 19,841 | 955 | (2,198) | $ (978) | 30 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Treasury stock, shares | 20,758,166 | 20,758,166 | |||||
Net (loss) income | $ (2,563) | (2,567) | 4 | ||||
Cumulative translation adjustment | 414 | 414 | |||||
Gains (losses) on derivatives qualifying as hedges, net of tax | 0 | ||||||
Pension liability and postretirement adjustment; net of tax | (112) | (112) | |||||
Cash dividends declared | (827) | (827) | |||||
Stock options/SSARs (in shares) | 89,850 | ||||||
Stock options/SSARs | 0 | (4) | $ 4 | ||||
Vested restricted stock units and awards | (11) | (22) | $ 11 | ||||
Vested restricted stock units and awards (in shares) | 230,222 | ||||||
Stock-based compensation | 65 | 65 | |||||
Redeemable NCI | (6) | (6) | |||||
Dividends on non-controlling interest and other | (3) | (3) | |||||
Ending balance (in shares) at Dec. 31, 2023 | (275,726,629) | ||||||
Ending balance at Dec. 31, 2023 | $ 14,642 | $ 35 | $ 19,874 | $ (2,439) | $ (1,896) | $ (963) | $ 31 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Treasury stock, shares | 20,438,094 | 20,438,094 |
CONSOLIDATED STATEMENT OF SHA_2
CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Other comprehensive income (loss), cash flow hedge, gain (loss), after reclassification, tax | $ (1) | ||
Tax effect of pension liability and postretirement adjustment | $ 3 | $ (4) | $ (4) |
Dividends declared per share (in dollars per share) | $ 3.24 | $ 3.20 | $ 3.12 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [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 On February 1, 2021 (the “Closing Date”), 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 periods ended December 31, 2023 and 2022 reflect the results of N&B for the full twelve months of 2023 and 2022, whereas the period ended December 31, 2021 only reflect the results of N&B from the Closing Date. Correction of Prior Year Consolidated Financial Statements The Company revised its Operating lease right-of-use assets from $636 million to $743 million and Operating lease liabilities from $565 million to $672 million on its Consolidated Balance Sheets as of December 31, 2022. This reflects the correction of an error of $107 million related to a lease renewal that was not correctly reflected in the prior year period. In addition, the Company revised its Goodwill from $13.355 billion to $13.373 billion and Deferred income tax liabilities from $2.265 billion to $2.283 billion on its Consolidated Balance Sheets as of December 31, 2022. This reflects the correction of an error of $18 million related to deferred income tax liabilities as part of purchase accounting for the Merger with N&B. The Company also corrected an error related to the fair value of derivative assets and liabilities of cross currency swaps. As a result of this correction, the Company revised its Other assets from $699 million to $689 million, which included a $9 million impact to deferred income taxes, Other liabilities from $472 million to $491 million and Accumulated other comprehensive loss from $2.169 billion to $2.198 billion on its Consolidated Balance Sheets as of December 31, 2022. The Company also revised its Cumulative translation adjustment from $(904) million to $(933) million on its Consolidated Statements of Shareholders’ Equity for the year ended December 31, 2022. The Company also adjusted the disclosure of its total receivables factored for the years ended December 31, 2022 and 2021 from $1.030 billion to $1.451 billion and $668 million to $1.167 billion, respectively, and the outstanding principal amounts of receivables from $212 million to $157 million as of December 31, 2022. The impacts of these corrections are also presented in the related footnotes. Fiscal Year End 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 the Company’s judgments and estimates take into account ongoing global current events and adverse macroeconomic impacts on the critical and significant accounting estimates, including estimates associated with future cash flows that are used in assessing the risk of impairment of certain assets. Actual results could differ from those estimates. Principles of Consolidation The Consolidated Financial Statements include the accounts of International Flavors & Fragrances Inc. and those of its subsidiaries. Significant intercompany balances and transactions have been eliminated. To the extent a subsidiary is not wholly owned, any related non-controlling interests are included as a separate component of Shareholders’ Equity. Revenue Recognition The Company recognizes revenue from contracts with customers when the contract or purchase order has received approval and commitment from both parties, has the rights of the parties and payment terms (which can vary by customer) identified, has commercial substance, collectability of consideration is probable, and control has transferred. The revenue recognized reflects the consideration the Company 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. Sales are reduced, at the time revenue is recognized, for applicable discounts, rebates and sales allowances based on historical experience. Related accruals are included in Other current liabilities in the accompanying Consolidated Balance Sheets. The Company considers shipping and handling activities undertaken after the customer has obtained control of the related goods as a fulfillment activity. Net sales include shipping and handling charges billed to customers. Cost of goods sold includes all costs incurred in connection with shipping and handling. 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 December 31, 2023 and 2022, the Company’s gross accounts receivable was $1.778 billion and $1.871 billion, respectively. The Company’s contract assets and contract liabilities as of December 31, 2023 and 2022 were not material. Foreign Currency Translation The Company translates the assets and liabilities of non-U.S. subsidiaries into U.S. dollars at year-end exchange rates. Income and expense items are translated at average exchange rates during the year. Cumulative translation adjustments are shown as a separate component of Shareholders’ Equity. Research and Development Research and development (“R&D”) expenses relate to the development of new and improved products, technical product support and compliance with governmental regulation. All research and development costs are expensed as incurred. Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments with maturities of three months or less at date of purchase. Restricted Cash Restricted cash is comprised of cash or cash equivalents which has been placed into an account that is restricted for a specific use and from which the Company cannot withdraw the cash on demand. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Company’s balance sheets as of December 31, 2023, 2022 and 2021 to the amounts reported on the Company’s statement of cash flows periods ended December 31, 2023, 2022 and 2021. (DOLLARS IN MILLIONS) December 31, 2023 December 31, 2022 December 31, 2021 Current assets Cash and cash equivalents $ 703 $ 483 $ 711 Cash and cash equivalents included in Assets held for sale 26 52 — Restricted cash 6 10 4 Non-current assets Restricted cash included in Other assets — 7 1 Cash, cash equivalents and restricted cash $ 735 $ 552 $ 716 Accounts Receivable The Company has various factoring agreements globally under which it can factor up to approximately $300 million of its trade receivables (“Company’s own factoring agreements”). In addition, the Company utilizes factoring agreements sponsored by certain customers. Under all of the arrangements, the Company sells the trade receivables on a non-recourse basis to unrelated financial institutions and accounts for the transactions as sales of receivables. The applicable receivables are removed from the Company’s Consolidated Balance Sheets when the cash proceeds are received by the Company. The Company sold approximately $1.752 billion, $1.451 billion and $1.167 billion of receivables in 2023, 2022 and 2021, respectively, under the Company’s own factoring agreements and customer sponsored factoring agreements. The cost of participating in these programs was approximately $25 million, $12 million and $6 million, in 2023, 2022 and 2021, respectively, and is included as a component of interest expense. Under the Company’s own factoring agreements for which the Company has continued responsibility to collect receivables and provide to its sponsor, it sold approximately $843 million, $547 million and $197 million of receivables in 2023, 2022 and 2021, respectively. The outstanding principal amounts of receivables under the Company’s own factoring agreements amounted to approximately $196 million and $157 million as of December 31, 2023 and 2022, respectively. The proceeds from the sales of receivables are included in net cash from operating activities in the Consolidated Statements of Cash Flows. 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 of customer receivable balances, loss history and creditworthiness of debtors. The Company also considers current and anticipated future conditions of the general economy in the determination of allowances, including significant aspects of a geographic location and the industries in which the Company operates. The Company’s general allowance for credit losses is calculated using a loss rate model that is primarily based on historical write-off experiences and applied to trade receivables. As necessary, additional reserves are established based on other factors, such as aging of receivables, customer credit quality and account collectability and country risk. These allowances are reviewed and approved by the Regional and Global Credit committees. As of December 31, 2023, the Company reported $1.726 billion of trade receivables, net of allowances of $52 million. Based on the aging analysis as of December 31, 2023, approximately 1% of the Company’s accounts receivable were past due by over 365 days based on the payment terms of the invoice. The following is a roll forward of the Company’s allowances for bad debts for the years ended December 31, 2022 and 2023: (DOLLARS IN MILLIONS) Allowance for Bad Debts Balance at December 31, 2021 $ 46 Bad debt expense (1) 19 Foreign exchange (12) Balance at December 31, 2022 53 Bad debt expense (2) 9 Write-offs (11) Foreign exchange 1 Balance at December 31, 2023 $ 52 _______________________ (1) Bad debt expense included approximately $11 million related to expected credit losses on receivables from customers located in Russia and Ukraine (for export and domestic sales) due to the events in those countries. (2) Bad debt expense included approximately $13 million related to expected credit losses on receivables from certain customers in Egypt, offset by approximately $8 million of reversals of allowances on receivables from customers located in Russia and Ukraine. The Company will continue to evaluate its credit exposure related to Egypt, Russia and Ukraine. Inventories Inventories are stated at the lower of cost (on a weighted-average basis) or net realizable value. The Company’s inventories consisted of the following: December 31, (DOLLARS IN MILLIONS) 2023 2022 Raw materials $ 779 $ 1,073 Work in process 406 442 Finished goods 1,292 1,636 Total $ 2,477 $ 3,151 Leases The Company determines if an arrangement is a lease at contract inception. A lease exists when a contract conveys to the customer the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: (1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment), and (2) the customer has the right to control the use of the identified asset. When the Company determines the arrangement is a lease, or contains a lease, at inception, it then determines whether the lease is an operating lease or a finance lease at the commencement date. The Company leases property and equipment principally under operating leases and records a right-of-use asset and related obligation at the present value of lease payments. Over the term of the lease, the Company depreciates the right-of-use asset and accretes the related obligation to future value. Some of the leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. The Company has elected not to separate non-lease components from lease components for all classes of leased assets. When available, the Company uses the rate implicit in the lease to discount lease payments to present value, however, most of the Company’s leases do not provide a readily determinable implicit rate and the Company calculates the applicable incremental borrowing rate to discount the lease payments based on the term of the lease at lease commencement. The incremental borrowing rate is determined based on the Company’s credit rating, currency and lease terms. 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 40 years; machinery and equipment, 1 to 20 years; information technology hardware and software, 1 to 7 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. Interest incurred during the construction period of certain property, plant and equipment is capitalized until the underlying assets are placed in service, at which time straight-line amortization of the capitalized interest begins over the estimated useful lives of the related assets. Capitalized interest was approximately $17 million, $13 million and $9 million for the years ended December 31, 2023, 2022 and 2021, respectively. 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 are 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. The Israel-Hamas War The Company maintains operations in Israel and, additionally, exports products to customers in Israel from operations outside the region. The Company will continue to evaluate the current events and any potential impacts related to this matter, but does not expect there to be a material impact to its Consolidated Financial Statements. The Russia-Ukraine War 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. Allowances for Bad Debts As of December 31, 2023, the Company had a reserve of approximately $3 million related to expected credit losses on receivables from customers located in Russia and Ukraine. The Company will continue to evaluate its credit exposure related to Russia and Ukraine. Impairment of Long-Lived Assets During the second quarter of 2022, the sales and margins declined for certain entities within Russia due to supply chain issues, reduced product demand and exchange rate volatility. Further, it was determined that such declines in operating performance were not expected to reverse in the near future. Additionally, future growth was expected to be limited given operating conditions in Russia, which inhibit the required future investment. In connection with uncertainties related to the Company’s operations in Russia and Ukraine, the Company updated its analysis of the undiscounted cash flows of the applicable asset groups to determine if the cash flows exceeded the carrying values of the applicable asset groups. With respect to an asset group in the Nourish segment, that manufactures and sells in Russia and related markets, it was determined that the undiscounted cash flows were insufficient to cover the carrying value and that an impairment charge was required to write-down the long-lived assets to their fair values. The fair value of such asset group was determined based on a discounted cash flow approach which involved estimating the future cash flows for the business discounted to their present values. The discount rate used in the determination of such fair value was based on consideration of the risks inherent in the cash flows and market as of the valuation date. As a result of this assessment, the Company recognized an impairment charge of $120 million in the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2022, which was allocated on a pro rata basis to intangible assets and property, plant and equipment within the asset group in the amounts of approximately $92 million and $28 million, respectively. Goodwill Goodwill represents the difference between the total purchase price and the fair value of identifiable assets and liabilities acquired in business acquisitions. The Company tests goodwill for impairment at the reporting unit level as of November 30 every year or more frequently if events or changes in circumstances indicate the asset might be impaired. A reporting unit is an operating segment or one level below an operating segment (referred to as a component) to which goodwill is assigned when initially recorded. The Company identifies their reporting units by assessing whether the components of their reporting units constitute businesses for which discrete financial information is available and management of each reporting unit regularly reviews the operating results of those components. The Company determined that it has six reporting units under the Nourish, Health & Biosciences, Scent and Pharma Solutions segments: (1) Nourish, (2) Fragrance Compounds, (3) Fragrance Ingredients, (4) Cosmetic Ingredients, (5) Health & Biosciences and (6) Pharma Solutions. These reporting units were determined based on the level at which the performance is measured and reviewed by segment management. In cases where the components of an operating segment have similar economic characteristics, they are aggregated into a single reporting unit. When testing goodwill for impairment, the Company has the option of first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount. If the Company elects to bypass the qualitative assessment for any reporting units, or if a qualitative assessment indicates it is more likely than not that the estimated carrying value of a reporting unit exceeds its fair value, the Company performs a quantitative goodwill impairment test. Under the quantitative goodwill impairment test, if a reporting unit’s carrying amount exceeds its fair value, the Company will record an impairment charge based on that difference, and the impairment charge will be limited to the amount of goodwill allocated to that reporting unit. For the year ended December 31, 2023, the Company determined that the carrying value of the Nourish reporting unit exceeded its fair value and recorded an impairment charge of $2.623 billion in the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2023. During 2022, the Company determined that the carrying value of the Health & Biosciences reporting unit exceeded its fair value and recorded a goodwill impairment charge of $2.250 billion in the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2022. See Note 6 for additional information. Income Taxes The Company accounts for taxes under the asset and liability method. Under this method, deferred income taxes are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized as income in the period in which such change is enacted. Future tax benefits are recognized to the extent that the realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes may not be realized. The Company recognizes uncertain tax positions that it has taken or expects to take on a tax return. Pursuant to accounting requirements, the Company first determines whether it is “more likely than not” its tax position will be sustained if the relevant tax authority were to audit the position with full knowledge of all the relevant facts and other information. For those tax positions that meet this threshold, the Company measures the amount of tax benefit based on the largest amount of tax benefit that it has a greater than 50% chance of realizing in a final settlement with the relevant authority. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard. The Company maintains a cumulative risk portfolio relating to all of its uncertainties in income taxes in order to perform this analysis, but the evaluation of its tax positions requires significant judgment and estimation in part because, in certain cases, tax law is subject to varied interpretation, and whether a tax position will ultimately be sustained may be uncertain. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. Retirement Benefits Current service costs of retirement plans and postretirement health care and life insurance benefits are accrued. Prior service costs resulting from plan improvements are amortized over periods ranging from 10 to 20 years. Financial Instruments Derivative financial instruments are used to manage interest and foreign currency exposures. The gain or loss on the hedging instrument is recorded in earnings at the same time as the transaction being hedged is recorded in earnings. The associated asset or liability related to the open hedge instrument is recorded in Prepaid expenses and Other current assets or Other current liabilities, as applicable. The Company records all derivative financial instruments on the balance sheet at fair value. Changes in a derivative’s fair value are recognized in earnings unless specific hedge criteria are met. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in Net (loss) income. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in Accumulated other comprehensive income (loss) (“AOCI”) in the accompanying Consolidated Balance Sheets and are subsequently recognized in Net (loss) income when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges, if any, are recognized as a charge or credit to earnings. Software Costs The Company capitalizes direct internal and external development costs for certain significant projects associated with internal-use software and amortizes these costs over seven years. Neither preliminary evaluation costs nor costs associated with the software after implementation are capitalized. Costs related to projects that are not significant are expensed as incurred. Net (Loss) Income Per Share Under the two-class method, earnings are adjusted by accretion of amounts to redeemable non-controlling interests recorded at redemption value. The adjustments represent in-substance dividend distributions to the non-controlling interest holders as the holders have a contractual right to receive a specified amount upon redemption. As a result, earnings are adjusted to reflect this in-substance distribution that is different from other common shareholders. In addition, the Company has unvested share based payment awards with a right to receive nonforfeitable dividends and thus are considered participating securities which are required to be included in the computation of basic and diluted earnings per share. Basic (loss) income per share represents the amount of earnings available to each share of common stock outstanding during the period. Basic (loss) income per share includes the effect of issuing shares of common stock, where (i) for 2021, the prepaid stock purchase contracts (“SPCs”) were converted using the final settlement rate on September 14, 2021 (see Note 11 for additional information), and (ii) an adjustment to (loss) income to reflect adjustments made to record the redeemable value of redeemable non-controlling interests. Diluted (loss) income per share also includes the effect of issuing shares of common stock, assuming (i) stock options and warrants are exercised, (ii) restricted stock units are fully vested under the treasury stock method, and (iii) for 2021, the incremental effect of the prepaid SPCs were converted using the final settlement rate on September 14, 2021 (see Note 11 for additional information). Stock-Based Compensation Compensation cost of all stock-based awards is measured at fair value on the date of grant and recognized over the service period for which awards are expected to vest. The cost of such stock-based awards is principally recognized on a straight-line attribution basis over their respective vesting periods, net of estimated forfeitures. Financing Costs Costs incurred in the issuance of debt are deferred and amortized as part of interest expense over the stated life of the applicable debt instrument. Unamortized deferred financing costs relating to debt are presented as a reduction in the amount of debt outstanding on the Consolidated Balance Sheets. Unamortized deferred financing costs relating to the revolving credit facility are recorded in Other assets on the Consolidated Balance Sheets. Redeemable Non-controlling Interests Non-controlling interests in subsidiaries that are redeemable for cash or other assets outside of the Company’s control are classified as mezzanine equity, outside of equity and liabilities, at the greater of the carrying value or the redemption value. The increases or decreases in the estimated redemption amount are recorded with corresponding adjustments against Capital in excess of par value and are reflected in the computation of earnings per share using the two-class method. As of December 31, 2023, the Company has acquired or sold all of its remaining redeemable non-controlling interests. See Note 20 for additional information. Held for Sale Assets and liabilities to be disposed of by sale (“disposal groups”) are reclassified into assets and liabilities held for sale on the Company’s Consolidated Balance Sheets. The reclassification occurs when an agreement to sell exists, or management has committed to a plan to sell the assets within one year. Disposal groups are measured at the lower of carrying value or fair value less costs to sell and are not depreciated or amortized. When the net realizable value of a disposal group increases during a period, a gain can be recognized to the extent that it does not increase the value of the disposal group beyond its original carrying value when the disposal group was reclassified as held for sale. The fair value of a disposal group, less any costs to sell, is assessed each reporting period it remains classified as held for sale and any remeasurement to the lower of carrying value or fair value less costs to sell is reported as an adjustment to the carrying value of the disposal group. See Note 21 for additional information. Supply Chain Financing Program In the fourth quarter of 2023, the Company entered into a supply chain financing (“SCF”) program. The program is expected to be available to U.S. based suppliers starting in the second quarter of 2024. The Company makes continuous efforts to improve working capital efficiency and has worked with suppliers to optimize payment terms and conditions. The Company’s current payment terms with a majority of suppliers generally range from 0 to 180 days, which is deemed to be commercially reasonable. The Company’s voluntary SCF program will allow its suppliers to elect to sell the receivables owed to them by the Company to a third-party financial institution. The suppliers, at their own discretion, will determine the invoices they want to sell and directly negotiate the arrangements with the participating third-party financial institution. Supplier participation in the program is solely the decision of the supplier and has no bearing on the Company’s payment terms and amounts due with the supplier. The Company’s responsibility will be limited to making payments based upon the agreed upon contractual terms and arrangements. The Company will not provide any form of guarantees under the SCF program and will have no economic interest in the suppliers’ decision to participate in the SCF program. Amounts due to suppliers that elect to participate in the SCF program will be included in Accounts payable on the Consolidated Balance Sheets. The Company, or the third-party financial institution, may choose to terminate the agreement of the program at any time upon 30 days’ prior written notice. The third-party financial institution may also terminate the agreement of the program at any time upon three business days’ prior written notice in the event there are insufficient funds available for disbursements. As of December 31, 2023 and 2022, there were no amounts outstanding related to suppliers’ participation in the SCF program. Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU was issued to further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact that this guidance will have on its Consolidated Financial Statements and income tax disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The ASU intends to improve reportable segment disclosure requirements, primarily through enhanced disclosures of significant segment |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | 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 (Loss) Income and Comprehensive Loss. Frutarom Integration Initiative In connection with the acquisition of Frutarom, the Company executed an integration plan that, among other initiatives, sought to optimize its manufacturing network (the “Frutarom Integration Initiative”). Since the inception of the initiative, the Company closed 22 sites and expensed total costs of approximately $36 million. As of the first quarter of 2023, the Frutarom Integration Initiative was completed. 2019 Severance Program During 2019, the Company incurred severance charges related to approximately 190 headcount reductions, excluding those previously mentioned under the Frutarom Integration Initiative. The headcount reductions were primarily related to the Scent segment associated with the establishment of a new shared service center in Europe. Since the program’s inception, the Company expensed approximately $15 million. As of the third quarter of 2022, the program was completed. N&B Merger Restructuring Liability For 2023, the Company incurred approximately $2 million of charges related to a lease impairment. Since the inception of the restructuring activities, there have been a total of approximately 215 headcount reductions and the Company has expensed approximately $47 million. As of December 31, 2023, the restructuring activities were completed related to employee exits. The Company continues to evaluate its owned and leased properties following the Merger with N&B and may incur additional costs to further consolidate its footprint. 2023 Restructuring Program In December 2022, the Company announced a restructuring program mainly related to headcount reduction to improve its organizational and operating structure, drive efficiencies and achieve cost savings. For the year ended December 31, 2023, the Company incurred approximately $70 million of charges related to severance and there have been a total of approximately 680 actual and planned headcount reductions. Changes in Restructuring Liability Changes in restructuring liabilities during 2021, 2022 and 2023 were as follows: (DOLLARS IN MILLIONS) Balance at January 1, 2021 Additional Charges (Reversals), Net Non-Cash Charges Cash Payments Balance at December 31, 2021 Frutarom Integration Initiative Severance $ 3 $ 5 $ — $ (3) $ 5 Fixed asset write down — 5 (5) — — Other (1) 3 — — — 3 2019 Severance Program Severance 6 — — (1) 5 Other Restructuring Charges Severance 2 — — (1) 1 Other (2) — 1 — (1) — N&B Merger Restructuring Liability Severance — 27 — (12) 15 Other (3) — 3 (3) — — Total Restructuring and other charges $ 14 $ 41 $ (8) $ (18) $ 29 (DOLLARS IN MILLIONS) Balance at January 1, 2022 Additional Charges (Reversals), Net Non-Cash Charges Cash Payments Balance at December 31, 2022 Frutarom Integration Initiative Severance $ 5 $ 1 $ — $ (2) $ 4 Fixed asset write down — 3 (3) — — Other (1) 3 (2) — (1) — 2019 Severance Program Severance 5 (5) — — — Other Restructuring Charges Severance 1 — — — 1 N&B Merger Restructuring Liability Severance 15 8 — (14) 9 Other (3) — 7 (2) (4) 1 Total Restructuring and other charges $ 29 $ 12 $ (5) $ (21) $ 15 (DOLLARS IN MILLIONS) Balance at January 1, 2023 Additional Charges (Reversals), Net Non-Cash Charges Cash Payments Balance at December 31, 2023 Frutarom Integration Initiative Severance $ 4 $ (3) $ — $ (1) $ — Other Restructuring Charges Severance 1 (1) — — — N&B Merger Restructuring Liability Severance 9 — — (9) — Other (3) 1 2 (2) (1) — 2023 Restructuring Program Severance — 70 — (56) 14 Total Restructuring and other charges $ 15 $ 68 $ (2) $ (67) $ 14 _______________________ (1) Includes supplier contract termination costs, consulting and advisory fees. (2) Includes charges related to legal settlement costs. (3) Includes lease impairment charges and losses incurred from restructuring activities related to the Merger with N&B. Charges by Segment The following table summarizes the total amount of costs incurred in connection with these restructuring programs and activities by segment: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Nourish $ 37 $ 8 $ 32 Health & Biosciences 13 2 5 Scent 15 1 3 Pharma Solutions 3 1 1 Total Restructuring and other charges $ 68 $ 12 $ 41 |
Acquisitions (Notes)
Acquisitions (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONS Acquisition of Health Wright Products, Inc. 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. The acquisition was accounted for under the purchase method. The fair value of consideration transferred was approximately $157 million, including cash and estimated contingent consideration of $31 million. The purchase price allocation was performed and resulted in intangible assets of approximately $75 million, and approximately $45 million of goodwill (which is deductible for income tax purposes). The intangible assets primarily consisted of customer relationships of approximately $74 million that have been fair valued using the Multi-Period Excess Earning Method and which are being amortized over a period of approximately 19 years. The purchase price allocation was finalized as of the end of 2022 when the Company finalized the valuation of the acquired goodwill, intangible assets (trade names and customer relationships) and inventory, in addition to ensuring all other assets and liabilities and contingencies have been identified and recorded. The measurement period adjustments were recorded during the year ended December 31, 2022. During the year ended December 31, 2022, the Company remeasured the fair value of contingent consideration obligations, and, as a result, recognized a credit of approximately $5 million presented in Selling and administrative expenses on the Consolidated Statements of (Loss) Income and Comprehensive Loss. The reduction in the fair value of contingent consideration primarily resulted from changes in the probability assessment of achieving the performance targets. As of December 31, 2022, there was approximately $26 million of earnout liabilities presented in Other liabilities on the Consolidated Balance Sheets. During the year ended December 31, 2023, the Company remeasured the fair value of contingent consideration obligations, and, as a result, recognized an expense of approximately $6 million presented in Selling and administrative expenses on the Consolidated Statements of (Loss) Income and Comprehensive Loss. As of December 31, 2023, there was approximately $32 million of earnout liabilities presented in Other current liabilities on the Consolidated Balance Sheets. No pro forma information for 2022 was presented as the acquisition was not material to the Consolidated Financial Statements. Transaction with Nutrition & Biosciences, Inc. On February 1, 2021, IFF completed the Merger with N&B. Pursuant to the transaction related agreements, DuPont transferred its N&B Business to N&B, a wholly-owned subsidiary of DuPont, and N&B merged with and into a wholly owned subsidiary of IFF in exchange for 141,740,461 shares of IFF common stock, par value $0.125 per share (“IFF Common Stock”). The Company completed its Merger with N&B in a Reverse Morris Trust transaction (the “Transactions”), pursuant to which the Company acquired the N&B Business of DuPont. In the Transactions, among other steps (i) DuPont transferred the N&B Business to N&B (the “Separation”); (ii) N&B made a cash distribution to DuPont of approximately $7.359 billion, subject to certain adjustments (the “Special Cash Payment”); (iii) DuPont distributed to its stockholders all of the issued and outstanding shares of N&B common stock by way of an exchange offer (the “Distribution”), and; (iv) N&B merged with and into a wholly owned subsidiary of IFF. As a result of the Merger, the existing shares of N&B common stock were automatically converted into the right to receive a number of shares of IFF Common Stock. Immediately after the Merger, holders of DuPont’s common stock that received shares of N&B common stock in the Distribution owned approximately 55.4% of the outstanding shares of IFF Common Stock on a fully diluted basis and existing holders of IFF Common Stock owned approximately 44.6% of the outstanding shares of IFF on a fully diluted basis. The Merger was accounted for using the purchase method of accounting in accordance with ASC Topic 805, Business Combinations, with IFF identified as the acquirer. As a result of the Merger, N&B’s assets, liabilities and the operating results of N&B were included in the Company’s financial statements from the Closing Date. N&B contributed net sales of approximately $6.084 billion and net income of approximately $11 million for the year ended December 31, 2021, which included the effects of purchase accounting adjustments, primarily related to changes in amortization of intangible assets, depreciation of property, plant and equipment and amortization of stepped up inventory. Prior to the Distribution, N&B incurred new indebtedness in the form of term loans and senior notes in an aggregate principal amount of $7.500 billion to pay the Special Cash Payment made to DuPont stockholders. See Note 9 for additional information regarding the term loans and senior notes incurred by N&B and subsequently assumed by IFF. Purchase Price The following table summarizes the aggregate purchase price consideration paid to acquire N&B (in millions, except share and per share data): (DOLLARS IN MILLIONS) Fair value of common stock issued to DuPont stockholders (1) $ 15,929 Fair value attributable to pre-merger service for replacement equity awards (2) 25 Pension funding adjustment (3) (12) Total purchase consideration $ 15,942 _______________________ (1) The fair value of common stock issued to DuPont stockholders represents 141,740,461 shares of the Company's common stock determined based on the number of fully diluted shares of IFF common stock, immediately prior to the Closing Date, multiplied by the quotient of 55.4%/44.6% and IFF common stock closing share price of $112.38 on the New York Stock Exchange on the Closing Date. (2) At the time of the Transactions, each outstanding stock option, cash-settled stock appreciation right (“SAR”), restricted stock unit (“RSU”) award, and restricted stock award (“RSA”) with respect to DuPont common stock held by employees of N&B were canceled and converted into similar classes of equity awards of IFF’s Class A Common Stock. Further, each outstanding Performance Share Unit (“PSU”) award with respect to DuPont common stock held by employees of N&B were canceled and converted into IFF’s RSU awards. The conversion was based on the ratio of the volume-weighted average per share closing price of DuPont stock on the twenty trading days prior to the Closing Date and IFF’s stock on the twenty trading days following the Closing Date. The fair value of replacement equity-based awards attributable to pre-Merger service was recorded as part of the consideration transferred in the Merger (see Note 13 for additional information). (3) The Merger related agreements provided that if the net pension balance of N&B as of the Closing Date differs from $220 million, such differential amount would be settled in cash. The Company estimated the amount that it would receive and, accordingly, made an adjustment of $12 million to the total purchase consideration. The Company incurred transaction-related costs of approximately $91 million in 2021, which primarily consisted of merger and acquisition advisory, legal and professional fees. 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 year ended December 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 year ended December 31, 2021 were as follows: (DOLLARS IN MILLIONS) Year Ended December 31, 2021 Unaudited pro forma net sales $ 12,163 Unaudited pro forma net income attributable to the Company 687 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. |
Business Divestiture
Business Divestiture | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Business Divestiture | BUSINESS DIVESTITURES Divestiture of the Flavor Specialty Ingredients Business During the fourth quarter of 2022, the Company announced it had entered into an agreement to sell its Flavor Specialty Ingredients (“FSI”) business, which was a part of the Scent segment. The Company completed the divestiture on August 1, 2023 and received cash proceeds of approximately $205 million, which included $1 million related to the delayed transfer of the control of specific assets and liabilities of non-U.S. jurisdiction business. In addition, approximately $15 million of proceeds were held in escrow and have been released upon satisfaction of certain conditions. Concurrent with the completion of the business divestiture, the Company entered into a supply agreement arrangement with the buyer. Based on the terms of the supply agreement, an adjustment of $4 million was made against the fair value of sale consideration. The sale consideration is subject to certain post-closing adjustments, which is primarily related to cash, indebtedness and working capital balances. The following table summarizes the fair value of sale consideration received in connection with the business divestiture: (DOLLARS IN MILLIONS) Cash proceeds from the buyer $ 205 Advance receipt for business to be transferred (1) Direct costs to sell (5) Proceeds attributable to supply agreement (4) Fair value of sale consideration $ 195 The net proceeds received from the business divestiture presented under Cash flows from investing activities represent the cash portion of the sale consideration, which was determined as the fair value of sale consideration adjusted by the direct costs to sell, advance receipt for business to be transferred and the cash transferred to the buyer as part of the transaction. The following table summarizes the different components of net proceeds received from business divestiture presented under Cash flows from investing activities: (DOLLARS IN MILLIONS) Fair value of sale consideration $ 195 Direct costs to sell 5 Advance receipt for business to be transferred 1 Cash transferred to the buyer (1) Net proceeds received from business divestiture $ 200 The carrying amount of net assets associated with the business unit, adjusted for currency translation adjustment, was approximately $205 million. The major classes of assets and liabilities sold consisted of the following: (DOLLARS IN MILLIONS) August 1, 2023 Assets Cash and cash equivalents $ 1 Trade receivables, net 13 Inventories 45 Property, plant and equipment, net 29 Goodwill 44 Other intangible assets, net 73 Other assets 10 Total assets 215 Liabilities Accounts payable (4) Deferred tax liability (1) Other liabilities (6) Total liabilities (11) Equity Accumulated other comprehensive income - currency translation adjustment 1 Total equity 1 Carrying value of net assets (adjusted for currency translation adjustment) $ 205 As a result of the business divestiture, the Company recognized a pre-tax loss of approximately $10 million, subject to certain post-closing adjustments, presented in Other expense (income), net on the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2023. The Company has also recognized income tax effects associated with the business divestiture across multiple periods. The total income tax expense recognized was approximately $21 million, with approximately $3 million that was recognized during the year ended December 31, 2022. Divestiture of a Portion of the Savory Solutions Business During the fourth quarter of 2022, the Company announced it had entered into an agreement to sell a portion of its Savory Solutions business, which was part of the Nourish segment. The Company completed the divestiture on May 31, 2023 and received cash proceeds of approximately $840 million. In addition, a receivable of approximately $37 million was recorded, which reflected the remaining sale consideration that was received in January 2024. The following table summarizes the fair value of sale consideration received in connection with the business divestiture: (DOLLARS IN MILLIONS) Cash proceeds from the buyer $ 840 Receivable from the buyer 37 Direct costs to sell (20) Fair value of sale consideration $ 857 The net proceeds received from the business divestiture presented under Cash flows from investing activities represent the cash portion of the sale consideration, which was determined as the fair value of sale consideration adjusted by the amount receivable from the buyer, direct costs to sell and the cash transferred to the buyer as part of the transaction. The following table summarizes the different components of net proceeds received from business divestiture presented under Cash flows from investing activities: (DOLLARS IN MILLIONS) Fair value of sale consideration $ 857 Direct costs to sell 20 Receivable from the buyer (37) Cash transferred to the buyer (including restricted cash) (19) Net proceeds received from business divestiture $ 821 The carrying amount of net assets associated with the business unit, adjusted for currency translation and pension adjustments, was approximately $860 million. The major classes of assets and liabilities sold consisted of the following: (DOLLARS IN MILLIONS) May 31, 2023 Assets Cash and cash equivalents $ 15 Restricted cash 4 Trade receivables, net 69 Inventories 116 Property, plant and equipment, net 77 Goodwill 317 Other intangible assets, net 367 Right-of-use assets 20 Other assets 24 Total assets 1,009 Liabilities Accounts payable (44) Deferred tax liability (92) Other liabilities (54) Total liabilities (190) Equity Accumulated other comprehensive income - currency translation adjustment 42 Accumulated other comprehensive income - pension liability and postretirement (1) Total equity 41 Carrying value of net assets (adjusted for currency translation and pension adjustments) $ 860 As a result of the business divestiture, the Company recognized a pre-tax loss of approximately $3 million presented in Other expense (income), net on the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2023. The Company has also recognized income tax effects associated with the business divestiture across multiple periods. The total income tax expense recognized was approximately $108 million, with approximately $72 million that was recognized during the year ended December 31, 2022. Liquidation of a Business in Russia As part of the liquidation of a business in Russia for the sale of the portion of the Savory Solutions business, the Company recognized a pre-tax loss of approximately $10 million presented in the Other expense (income), net, and tax benefits of approximately $2 million presented in Provision for income taxes on the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2023. Divestiture of 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 was 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 completed the divestiture on July 1, 2022 and received cash proceeds of approximately $1.254 billion, of which approximately $36 million was attributable to future services to be provided under certain transition service agreements as described below. Certain transaction costs related to the divestiture of approximately $11 million, which was contingent upon the consummation of the divestiture, were determined to be direct costs to sell and, as such, were adjusted against the fair value of the sale consideration. In addition, approximately $15 million of cash proceeds held in escrow were released to the Company upon satisfaction of certain conditions. The sale consideration was further reduced by approximately $3 million for certain post-closing adjustments, which were primarily related to cash, indebtedness and working capital balances. The Company entered into transition services agreements with the buyer for providing certain general accounting, information technology and other services up to 19 months following the date of the sale for minimal consideration. The fair value of these transition services agreements was determined to be approximately $36 million, which was adjusted against the sale consideration and recognized as deferred transition services income. For the years ended December 31, 2023 and 2022, the transition services income under the transition services agreements were approximately $25 million and $11 million, respectively, and was recognized as a reduction to the costs incurred to provide services under the transition services agreements, which was included in Selling and administrative expenses on the Consolidated Statements of (Loss) Income and Comprehensive Loss. The following table summarizes the fair value of the sale consideration received in connection with the business divestiture: (DOLLARS IN MILLIONS) Cash proceeds from the buyer $ 1,254 Escrow proceeds 15 Proceeds attributable to transition service agreements (36) Direct costs to sell (11) Net cash settlement for post-closing adjustments (3) Fair value of sale consideration $ 1,219 The net proceeds received from business divestiture presented under Cash flows from investing activities represent the cash portion of the sale consideration, which was determined as the fair value of sale consideration reduced by the amount held in escrow and the Cash transferred to the buyer on the closing balance sheet as part of the transaction. The following table summarizes the different components of net proceeds received from business divestiture presented under Cash flows from investing activities: (DOLLARS IN MILLIONS) Fair value of sale consideration $ 1,219 Cash transferred to the buyer on the closing balance sheet (49) Employee reimbursement receivable (1) Net proceeds received from business divestiture $ 1,169 The carrying amount of net assets associated with the Microbial Control business unit was approximately $1.208 billion. The major classes of assets and liabilities sold consisted of the following: (DOLLARS IN MILLIONS) June 30, 2022 Assets Current assets $ 263 Goodwill and other intangible assets, net 867 Equity method investment 74 Other assets 80 Total assets 1,284 Liabilities Accounts payable 41 Other liabilities 35 Total liabilities 76 Carrying value of net assets $ 1,208 As a result of the business divestiture, the Company recognized a pre-tax gain of approximately $11 million presented in Other expense (income), net on the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2022. The Company also recognized the income tax expense associated with the divestiture of approximately $96 million during the year ended December 31, 2022. During the third quarter of 2023, the Company announced the sale process of its Cosmetic Ingredients business within the Scent segment, and in the fourth quarter of 2023, the Company entered into an agreement to sell its Cosmetic Ingredients business. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2024. The planned sale does not constitute a strategic shift of the Company’s operations and does not have major effects on the Company’s operations and financial results. Therefore, the transaction does not meet the discontinued operations criteria. The Company determined that the assets and liabilities of the business met the criteria to be presented as “held for sale.” As a result, as of December 31, 2023, such assets and liabilities were classified as held for sale and are reported on the Consolidated Balance Sheets. The Company expects that the sale proceeds less costs to sell will exceed the preliminary estimate of the carrying value of the net assets for the business. The carrying value is subject to change based on developments leading up to the closing date. Included in the Company’s Consolidated Balance Sheets as of December 31, 2023 and 2022 are the following carrying amounts of the assets and liabilities held for sale: (DOLLARS IN MILLIONS) December 31, 2023 December 31, 2022 (2) Assets Cash and cash equivalents $ 26 $ 52 Trade receivables, net 15 85 Inventories 18 157 Property, plant and equipment, net 7 92 Goodwill 276 348 Other intangible assets, net 146 428 Operating lease right-of-use assets 9 13 Other assets 9 25 Total assets held-for-sale $ 506 $ 1,200 Liabilities Accounts payable $ 4 $ 56 Deferred tax liability (1) 24 92 Other liabilities 18 64 Total liabilities held-for-sale $ 46 $ 212 _______________________ (1) The Company is currently analyzing the tax impact of the sale of the Cosmetic Ingredients business and has included preliminary numbers for the deferred tax liability, which are subject to further updates. (2) The amounts for December 31, 2022 represent the carrying amounts of the portion of the Savory Solutions business and FSI business that were classified as held for sale. The Company completed the divestitures of the businesses on May 31, 2023 and August 1, 2023, respectively. See Note 4 for additional information. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following amounts: (DOLLARS IN MILLIONS) December 31, 2023 2022 Land $ 195 $ 199 Buildings and improvements 1,822 1,697 Machinery and equipment 3,752 3,344 Information technology 473 291 Construction in process 400 649 Total Property, plant and equipment 6,642 6,180 Accumulated depreciation (2,402) (1,977) Total Property, plant and equipment, net $ 4,240 $ 4,203 Depreciation Depreciation expense was $462 million, $452 million and $424 million for the years ended December 31, 2023, 2022 and 2021, respectively. Impairment of Property, Plant and Equipment As discussed in Note 1, for the year ended December 31, 2022, an impairment charge of approximately $28 million was recorded in connection with property, plant and equipment, primarily buildings and improvements, of an asset group that operates primarily in Russia. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
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 during the years ended December 31, 2022 and 2023 were as follows: (DOLLARS IN MILLIONS) Nourish Health & Biosciences Scent Pharma Solutions Total Balance at December 31, 2021 $ 6,559 $ 6,763 $ 1,828 $ 1,282 $ 16,432 Acquisitions (1) — 45 — — 45 Impairment — (2,250) — — (2,250) Transferred to assets held for sale (2) (306) — (42) — (348) Foreign exchange (199) (223) (41) (43) (506) Balance at December 31, 2022 6,054 4,335 1,745 1,239 13,373 Impairment (2,623) — — — (2,623) Transferred to assets held for sale (3) — — (267) — (267) Reduction from business divestiture (14) — — — (14) Foreign exchange 72 56 12 26 166 Balance at December 31, 2023 $ 3,489 $ 4,391 $ 1,490 $ 1,265 $ 10,635 _______________________ (1) Related to the acquisition of Health Wright. See Note 3 for additional information. (2) Related to the portion of the Savory Solutions business and FSI business that were classified as held for sale as of December 31, 2022. The Company completed the divestitures of the businesses on May 31, 2023 and August 1, 2023, respectively. See Note 4 and Note 21 for additional information. (3) Related to the Cosmetic Ingredients business that was classified as held for sale as of December 31, 2023. See Note 21 for additional information. The goodwill balance at December 31, 2023 included $2.623 billion and $2.250 billion of accumulated impairment related to the Nourish and Health & Biosciences reportable segments, respectively. The goodwill balance at December 31, 2022 included $2.250 billion of accumulated impairment related to the Health & Biosciences reportable segment. The accumulated impairment relates to impairment charges recorded in 2023 and 2022. Goodwill Impairment Test For the annual impairment test as of November 30, 2023, the Company first utilized Step 0 of the guidance in ASC Topic 350, Intangibles – Goodwill and Other, which allows for the assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If, based on a review of qualitative factors, it is more likely than not that the fair value of a reporting unit is less than its carrying value, a quantitative impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. Based on a review of qualitative factors, the Company determined that for one of the reporting units, Cosmetic Ingredients, a quantitative (Step 1) impairment analysis was not necessary to determine if the carrying values of the reporting unit exceeded its fair values. For the other five reporting units, the Company determined that a Step 1 test was necessary. The Company assessed the fair value of the reporting units using an income approach. Under the income approach, the Company determined the fair value by using a discounted cash flow method at a rate of return that reflects the relative risk of the projected future cash flows of each reporting unit, as well as a terminal value. The Company used the most current actual and forecasted operating data available. Key estimates and assumptions used in these valuations include revenue growth rates, gross margins, adjusted operating EBITDA margins, terminal growth rates and discount rates. In performing the quantitative impairment test, the Company determined that the fair value of four of the five reporting units exceeded their carrying values and determined that there was no further impairment of goodwill in these reporting units as of November 30, 2023. The Company determined that the carrying value of the Nourish reporting unit exceeded its fair value and recorded an impairment charge of $2.623 billion in the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2023. The primary drivers of the impairment charge was a decrease in fair value due to declines in projections of the reporting unit, impacts of continued inflation and increases in interest rates. Based on the quantitative impairment test performed, the Company determined that the Health & Biosciences, Fragrance Ingredients and Pharma Solutions reporting units had excess fair value over carrying value of less than 25%. As of November 30, 2023, the Health & Biosciences, Fragrance Ingredients and Pharma Solutions reporting units had excess fair value over carrying value of approximately 8%, 18% and 8%, respectively, and goodwill of approximately $4.381 billion, $295 million and $1.263 billion, respectively. While management believes that the assumptions used in the impairment test were reasonable, changes in key assumptions, including lower revenue growth, operating margin, terminal growth rates or increase in discount rates could result in a future impairment. Such charge could have a material effect on the Consolidated Statements of Operations and Balance Sheets. During 2022, the Company determined that goodwill impairment triggering events occurred for its Nourish, Health & Biosciences and Pharma Solutions reporting units. The primary indicators that were deemed to be triggering events were declines in the Company’s projections across various reporting units and ongoing adverse macroeconomic impacts such as inflation, increases in interest rates and unfavorable effects from exchange rates. Based on the quantitative impairment test, using the income approach, the Company determined that the carrying value of the Health & Biosciences reporting unit exceeded its fair value and recorded a goodwill impairment charge of $2.250 billion in the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2022. Other Intangible Assets Other intangible assets, net consisted of the following amounts: December 31, (DOLLARS IN MILLIONS) 2023 2022 Asset Type Customer relationships $ 8,211 $ 8,318 Technological know-how 2,355 2,339 Trade names & patents 337 358 Other 44 47 Total carrying value 10,947 11,062 Accumulated Amortization Customer relationships (1,619) (1,252) Technological know-how (813) (589) Trade names & patents (117) (97) Other (41) (42) Total accumulated amortization (2,590) (1,980) Other intangible assets, net $ 8,357 $ 9,082 Amortization Amortization expense was $680 million for the year ended December 31, 2023, $727 million for the year ended December 31, 2022 and $732 million for the year ended December 31, 2021. Amortization expense for the next five years, based on valuations and determinations of useful lives, is expected to be as follows: December 31, (DOLLARS IN MILLIONS) 2024 2025 2026 2027 2028 Estimated future intangible amortization expense $ 678 $ 676 $ 674 $ 577 $ 558 Impairment of Intangible Assets As discussed in Note 1, for the year ended December 31, 2022, an impairment charge of approximately $92 million was recorded in connection with intangible assets, primarily customer relationships and technological know-how, of an asset group that operated primarily in Russia, which was included within accumulated amortization. |
Other Assets And Liabilities, C
Other Assets And Liabilities, Current and Noncurrent | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets [Abstract] | |
Other Current Assets and Liabilities, and Other Assets | OTHER CURRENT ASSETS AND LIABILITIES, AND OTHER ASSETS Prepaid expenses and other current assets consisted of the following amounts: December 31, (DOLLARS IN MILLIONS) 2023 2022 Value-added tax receivable $ 187 $ 212 Prepaid income taxes 178 129 Packaging materials and supplies 161 148 Prepaid expenses 184 144 Other 165 137 Total $ 875 $ 770 Other assets consisted of the following amounts: December 31, (DOLLARS IN MILLIONS) 2023 2022 Finance lease right-of-use assets $ 26 $ 22 Deferred income taxes 278 167 Overfunded pension plans 139 180 Cash surrender value of life insurance contracts 49 45 Equity method investments 11 10 Other (1) 261 265 Total $ 764 $ 689 _______________________ (1) Includes land usage rights in China, long-term deposits and receivables on certain derivative instruments. Other current liabilities consisted of the following amounts: December 31, (DOLLARS IN MILLIONS) 2023 2022 Rebates and incentives payable $ 105 $ 99 Value-added tax payable 77 65 Interest payable 65 55 Current pension and other postretirement benefit obligation 13 10 Accrued insurance (including workers’ compensation) 9 9 Earn outs payable 32 — Accrued restructuring 14 15 Current operating lease obligation 85 86 Accrued freight 14 18 Accrued commissions payable 10 11 Accrued income taxes 194 313 Accrued expenses payable 262 256 Other 97 91 Total $ 977 $ 1,028 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consisted of the following at December 31: (DOLLARS IN MILLIONS) Effective Interest Rate 2023 2022 2023 Notes (1) 3.30 % $ — $ 300 2024 Euro Notes (1) 1.88 % 552 532 2025 Notes (1) 1.22 % 1,000 1,000 2026 Euro Notes (1) 1.93 % 879 845 2027 Notes (1) 1.56 % 1,212 1,215 2028 Notes (1) 4.57 % 398 398 2030 Notes (1) 2.21 % 1,508 1,510 2040 Notes (1) 3.04 % 773 774 2047 Notes (1) 4.44 % 495 495 2048 Notes (1) 5.12 % 787 787 2050 Notes (1) 3.21 % 1,569 1,571 2024 Term Loan Facility (2) 3.75 % 270 625 2026 Term Loan Facility (2) 5.83 % 625 625 Commercial Paper (3) — 187 Revolving Credit Facility (4) — 100 Bank overdrafts and other 3 6 Total debt $ 10,071 $ 10,970 Less: Short term borrowings (5) (885) (597) Total Long-term debt $ 9,186 $ 10,373 _______________________ (1) Amount is net of unamortized discount and debt issuance costs. (2) Amount is recorded at fair value. (3) The effective interest rate of commercial paper issuances fluctuate 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. (4) The interest rate on the Revolving Credit Facility is, at the applicable borrower’s option, a per annum rate equal to either (x) an eurocurrency rate plus an applicable margin varying from 1.125% to 1.750% or (y) a base rate plus an applicable margin varying from 0.125% to 0.750%, in each case depending on the public debt ratings for non-credit enhanced long-term senior unsecured debt issued by the Company. (5) Includes bank borrowings, overdrafts, current portion of long-term debt and commercial paper. Term Loan Facility and Senior Notes assumed as part of the N&B Merger Following the Merger, the Company assumed the indebtedness incurred by N&B in the debt financings completed prior to the Distribution. This indebtedness includes (i) a Term Loan Facility of $1.250 billion pursuant to the term loan credit agreement (the “N&B Term Loan Facility”) and (ii) a series of Senior Notes in the aggregate amount of $6.250 billion with maturities ranging from 2 to 30 years as further described below. N&B’s indebtedness raised prior to the Merger was used to finance the Special Cash Payment to DuPont, which has been paid, and for the satisfaction of the related transaction fees and expenses. See Note 3 for additional information. N&B Term Loan Facility The N&B Term Loan Facility was funded on February 1, 2021, and provides for a senior unsecured term loan credit facility in an aggregate principal amount of $1.250 billion, comprised of a $625 million three-year tranche (“2024 Term Loan Facility”) and a $625 million five-year tranche (“2026 Term Loan Facility”). Interest for each tranche equals, at the Company’s option, a per annum rate equal to either (x) an adjusted LIBOR rate plus an applicable margin varying from 0.750% to 2.000% for the three-year tranche and from 1.125% to 2.375% for the five-year tranche or (y) a base rate plus an applicable margin varying from 0.000% to 1.000% for the three-year tranche and from 0.125% to 1.375% for the five-year tranche, in each case depending on the class of IFF’s non-credit-enhanced, senior unsecured long-term debt credit rating. The 2024 Term Loan Facility and 2026 Term Loan Facility are subject to customary affirmative and negative covenants and events of default after the Closing Date of the Merger. On and after the Closing Date of the N&B Transaction, the 2024 Term Loan Facility and 2026 Term Loan Facility are also subject to financial covenant maintenance requirements. On September 19, 2023, the Company entered into Amendment No. 5 (“Term Loan Amendment No. 5”) to amend that certain term loan credit agreement, dated January 17, 2020 (as amended by that certain Amendment No. 1 to Credit Agreement, dated as of August 25, 2020, as further supplemented by that certain Icon Debt Assumption Supplement, dated as of March 4, 2021, as further amended by that certain Amendment No. 2 to Credit Agreement, dated as of August 4, 2022, as further amended by that certain Amendment No. 3 (“Term Loan Amendment No. 3”) to Credit Agreement, dated as of March 23, 2023, as further amended by that certain Amendment No. 4 (“Term Loan Amendment No. 4”) to Credit Agreement, dated as of March 23, 2023, the “Existing Term Loan Credit Agreement”, and the Existing Term Loan Credit Agreement, as amended by the Term Loan Amendment, the “Term Loan Credit Agreement”), among the Company (as successor to Nutrition & Biosciences, Inc.), the lenders party thereto and Morgan Stanley Senior Funding, Inc., as administrative agent. The related deferred financing costs for the amendments in 2023 were not material. Term Loan Amendment No. 3, among other things, extended the period during which certain relief was provided with respect to the financial covenant contained in the Existing Term Loan Credit Agreement which has been superseded by Term Loan Amendment No. 5. Term Loan Amendment No. 4, among other things, replaces LIBOR with Term SOFR (as defined in the Term Loan Credit Agreement) as the reference rate for U.S. dollar-denominated loans. From March 23, 2023, loans under the Term Loan Credit Agreement now bear interest at a base rate or a rate equal to Term SOFR plus an adjustment of 0.10% per annum, plus, in each case, an applicable margin based on the Company's public debt rating. Loans may be prepaid without premium or penalty, subject to customary breakage costs. Term Loan Amendment No. 5, among other things, extends the period during which certain relief is provided with respect to the financial covenant contained in the Existing Term Loan Credit Agreement through December 31, 2025, or such earlier date on which the Company elects to terminate such period (the “Term Loan Covenant Relief Period”), by providing that during the Term Loan Covenant Relief Period, the Company’s Leverage Ratio (as defined in the Term Loan Credit Agreement) shall not exceed as of the end of the fiscal quarter for the period of the four fiscal quarters then ended: (i) 5.25x for any fiscal quarter ending on or before March 31, 2024, (ii) 4.75x for the fiscal quarter ending June 30, 2024, (iii) 4.50x for the fiscal quarter ending September 30, 2024, (iv) 4.25x for any subsequent fiscal quarter ending on or before March 31, 2025, (v) 4.00x for any subsequent fiscal quarter ending on or before September 30, 2025 and (vi) 3.75x for the fiscal quarter ending December 31, 2025. During the Term Loan Covenant Relief Period, the amendments prohibit the Company from (i) effecting share repurchases, (ii) declaring and paying dividends in cash on common stock in excess of $0.81 per share per fiscal quarter (for an aggregate amount of $3.24 per fiscal year) and (iii) creating liens to secure debt in excess of the greater of $300 million and 3.65% of Consolidated Net Tangible Assets (as defined in the Term Loan Credit Agreement), subject to certain exceptions set forth in the Term Loan Amendment No. 5. The Company was in compliance with all covenants as of December 31, 2023. Loans may be prepaid without premium or penalty, subject to customary breakage costs, and during the Term Loan Covenant Relief Period, there will be a mandatory prepayment of the loans with 100% of the net cash proceeds from non-ordinary course asset sales, subject to certain exceptions set forth in the Term Loan Amendment No. 5 and by a Term Loan Amendment No. 6, dated January 26, 2024, which provides additional exceptions to the mandatory prepayment requirements with respect to the sale of the Company’s Cosmetic Ingredients business. The applicable margin for the loans, which is based on the Company’s Public Debt Rating (as defined in the Term Loan Credit Agreement), will also increase by 0.125% for the duration of the Term Loan Covenant Relief Period. During 2023, the Company made voluntary debt repayments of $355 million related to the 2024 Term Loan Facility. N&B Senior Notes On September 16, 2020, N&B issued $6.250 billion in aggregate principal amount of senior unsecured notes consisting of: (i) $300 million senior unsecured notes which matured on September 15, 2022 (the “2022 Notes”), bearing interest at a rate of 0.697% per year, payable semi-annually on March 15 and September 15 of each year, beginning March 15, 2021; (ii) $1.000 billion senior unsecured notes maturing on October 1, 2025 (the “2025 Notes”), bearing interest at a rate of 1.230% per year, payable semi-annually on April 1 and October 1 of each year, beginning April 1, 2021; (iii) $1.200 billion senior unsecured notes maturing on October 15, 2027 (the “2027 Notes”), bearing interest at a rate of 1.832% per year, payable semi-annually on April 15 and October 15 of each year, beginning April 15, 2021; (iv) $1.500 billion senior unsecured notes maturing on November 1, 2030 (the “2030 Notes”), bearing interest at a rate of 2.300% per year, payable semi-annually on May 1 and November 1 of each year, beginning May 1, 2021; (v) $750 million senior unsecured notes maturing on November 15, 2040 (the “2040 Notes”), bearing interest at a rate of 3.268% per year, payable semi-annually on May 15 and November 15 of each year, beginning May 15, 2021, and; (vi) $1.500 billion senior unsecured notes maturing on December 1, 2050 (the “2050 Notes”), bearing interest at a rate of 3.468% per year, payable semi-annually on June 1 and December 1 of each year, beginning June 1, 2021. Interest on each series of notes began accruing from September 16, 2020 payable semi-annually in arrears as described above. Interest is computed on the basis of a 360-day year comprised of twelve 30-day months. On September 15, 2022, the Company repaid the full $300 million outstanding of its 2022 Notes at maturity. Revolving Credit Facility The Revolving Credit Facility is available for general corporate purposes of each borrower and its subsidiaries. The obligations under the Revolving Credit Facility are unsecured and the Company has guaranteed the obligations of each other borrower under the Revolving Credit Facility. The Company pays a commitment fee on the aggregate unused commitments; such fee is not material. The Revolving Credit Agreement contains various covenants, limitations and events of default customary for similar facilities for similarly rated borrowers, including a maximum permitted ratio of Net Debt to Consolidated EBITDA. In connection with the initial issuance of the Revolving Credit Facility, the Company incurred $1 million of debt issuance costs. On September 19, 2023, the Company and certain of its subsidiaries (collectively, the “Loan Parties”) entered into Amendment No. 4 (the “Revolver Amendment No. 4”) to amend that certain Third Amended and Restated Credit Agreement, dated July 28, 2021 (as amended by that certain Amendment No. 1 to Credit Agreement, dated August 4, 2022, as further amended by that certain Amendment No. 2 (“Revolver Amendment No. 2”) to Credit Agreement, dated as of March 23, 2023, as further amended by that certain Amendment No. 3 (“Revolver Amendment No. 3”) to Credit Agreement, dated as of March 23, 2023, the “Existing Revolving Credit Agreement”, and the Existing Revolving Credit Agreement, as amended by the Revolver Amendment, the “Revolving Credit Agreement”), among the Loan Parties, the lenders party thereto and Citibank, N.A., as administrative agent. The related deferred financing costs for the amendments in 2023 were not material. Revolver Amendment No. 2, among other things, extended the period during which certain relief was provided with respect to the financial covenant contained in the Existing Revolving Credit Agreement which has been superseded by Revolver Amendment No. 4. Revolver Amendment No. 3, among other things, replaces LIBOR with Term SOFR (as defined in the Revolving Credit Agreement) as the reference rate for U.S. dollar-denominated loans. From March 23, 2023, loans under the Revolving Credit Agreement now bear interest at a base rate or, in the case of U.S. dollar-denominated loans, a rate equal to Term SOFR plus an adjustment of 0.10% per annum or, in the case of Euro-denominated loans, the Euro interbank offered rate, plus, in each case, an applicable margin based on the Company’s public debt rating. Loans may be prepaid without premium or penalty, subject to customary breakage costs. Revolver Amendment No. 4, among other things, extends the period during which certain relief is provided with respect to the financial covenant contained in the Existing Revolving Credit Agreement through December 31, 2025, or such earlier date on which the Company elects to terminate such period (the “Revolver Covenant Relief Period”), by providing that during the Revolver Covenant Relief Period, the Company’s Leverage Ratio (as defined in the Revolving Credit Agreement) shall not exceed as of the end of the fiscal quarter for the period of the four fiscal quarters then ended: (i) 5.25x for any fiscal quarter ending on or before March 31, 2024, (ii) 4.75x for the fiscal quarter ending June 30, 2024, (iii) 4.50x for the fiscal quarter ending September 30, 2024, (iv) 4.25x for any subsequent fiscal quarter ending on or before March 31, 2025, (v) 4.00x for any subsequent fiscal quarter ending on or before September 30, 2025 and (vi) 3.75x for the fiscal quarter ending December 31, 2025. During the Revolver Covenant Relief Period, the amendments prohibit (i) the Company from effecting share repurchases, (ii) the Company from declaring and paying dividends in cash on common stock in excess of $0.81 per share per fiscal quarter (for an aggregate amount of $3.24 per fiscal year) and (iii) the Loan Parties from creating liens to secure debt in excess of the greater of $300 million and 3.65% of Consolidated Net Tangible Assets (as defined in the Revolving Credit Agreement), subject to certain exceptions set forth in the Revolver Amendment No. 4. The Company was in compliance with all covenants as of December 31, 2023. Loans may be prepaid without premium or penalty, subject to customary breakage costs, and during the Revolver Covenant Relief Period, the applicable margin for the loans, which is based on the Company’s Public Debt Rating (as defined in the Revolving Credit Agreement), will increase by 0.125%. As of December 31, 2023, total capacity under the Revolving Credit Facility was $2.000 billion, with no outstanding borrowings. Under the amended terms of the Revolver Credit Agreement, the Revolving Credit Facility increased from $1.000 billion to $2.000 billion, maturing on July 28, 2026. At the option of the Company, the facility may be increased to $2.500 billion subject to certain conditions. As the Revolving Credit Facility is a multi-year revolving credit agreement, the Company classifies as long-term debt the portion that it has the intent and ability to maintain outstanding longer than 12 months. During 2023, the Company had drawdowns of $800 million and repayments of $900 million under the Revolving Credit Facility. During 2022, the Company had drawdowns of $550 million and repayments of $450 million under the Revolving Credit Facility. 2018 Senior Unsecured Notes On September 25, 2018, the Company issued €800 million aggregate principal amount of senior unsecured notes that mature on September 25, 2026 (the “2026 Euro Notes”). The 2026 Euro Notes bear interest at a rate of 1.8% per year, payable annually on September 25 of each year, beginning September 25, 2019. Total proceeds from the issuance of the 2026 Notes, net of underwriting discounts and offering costs, were €794 million ($932 million in USD). On September 26, 2018, the Company issued $400 million aggregate principal amount of senior unsecured notes that mature on September 26, 2028 (the “2028 Notes”). The 2028 Notes bear interest at a rate of 4.45% per year, payable semi-annually on March 26 and September 26 of each year, beginning March 26, 2019. Total proceeds from the issuance of the 2028 Notes, net of underwriting discounts and offering costs, were $397 million. On September 26, 2018, the Company issued $800 million aggregate principal amount of senior unsecured notes that mature on September 26, 2048 (the “2048 Notes” and collectively with the 2026 Euro Notes, 2020 Notes, 2028 Notes, the “2018 Senior Unsecured Notes”). The 2048 Notes bear interest at a rate of 5.0% per year, payable semi-annually on March 26 and September 26 of each year, beginning March 26, 2019. Total proceeds from the issuance of the 2048 Notes, net of underwriting discounts and offering costs, were $787 million. As discussed in Note 16, the 2026 Euro Notes have been designated as a hedge of the Company’s net investment in certain subsidiaries. 2023 Notes On April 4, 2013, the Company issued $300 million aggregate principal amount of senior unsecured notes that mature on May 1, 2023 (“2023 Notes”). The 2023 Notes bear interest at a rate of 3.20% per year, payable semi-annually on May 1 and November 1 of each year, beginning November 1, 2013. Total proceeds from the issuance of the 2023 Notes, net of underwriting discounts and offering costs, were $298 million. On May 1, 2023, the Company repaid the full $300 million outstanding of its 2023 Notes at maturity. 2024 Euro Notes On March 14, 2016, the Company issued €500 million aggregate principal amount of senior unsecured notes that mature on March 14, 2024 (“2024 Euro Notes”). The 2024 Euro Notes bear interest at a rate of 1.75% per year, payable annually on March 14 of each year, beginning March 14, 2017. Total proceeds from the issuance of the 2024 Euro Notes, net of underwriting discounts and offering costs, were €496 million. In connection with the debt issuance, the Company entered into pre-issuance hedging transactions that were settled upon issuance of the debt and resulted in a loss of approximately $3 million. The discount, deferred financing costs and pre-issuance hedge loss are being amortized as interest expense over the eight year term of the debt. As discussed in Note 16, the 2024 Euro Notes have been designated as a hedge of the Company’s net investment in certain subsidiaries. 2047 Notes On May 18, 2017, the Company issued $500 million aggregate principal amount of senior unsecured notes that mature on June 1, 2047 (“2047 Notes”). The 2047 Notes bear interest at a rate of 4.375% per year, payable semi-annually on June 1 and December 1 of each year, beginning December 1, 2017. Total proceeds from the issuance of the 2047 Notes, net of underwriting discounts and offering costs, were $494 million. In addition, the Company incurred $1 million in legal and professional costs associated with the issuance and such costs were recorded as deferred financing costs. In connection with the debt issuance, the Company entered into pre-issuance hedging transactions that were settled upon issuance of the debt and resulted in a loss of approximately $5 million. The discount, deferred financing costs and pre-issuance hedge loss are being amortized as interest expense over the 30 year term of the debt. Commercial Paper During 2023, the Company had gross issuances of $5.694 billion and repayments of $5.881 billion under the commercial paper program. The commercial paper issued had original maturities of less than 86 days. During 2022, the Company had gross issuances of $6.040 billion and repayments of $6.177 billion under the commercial paper program. The Commercial Paper Program is backed by the borrowing capacity available under the Revolving Credit Facility. The effective interest rate of commercial paper issuances does not materially differ from short-term interest rates, which fluctuate due to market conditions and as a result may impact our interest expense. Redemption Provisions The 2024 Euro Notes, 2026 Euro Notes, 2028 Notes, 2047 Notes, and 2048 Notes (collectively, the “Notes”) share the same redemption provisions. Upon 30 days’ notice to holders of the Notes, the Company may redeem the Notes at any time at the greater of 100% or the discounted present value of the remaining scheduled payments of principal and interest from the redemption date to the maturity date at the Treasury Rate or the Comparable Government Bond Rate (as defined in the applicable agreements) plus (i) 30 basis points in the case of the 2024 Euro Notes, (ii) 25 basis points in the case of the 2026 Euro Notes, (iii) 25 basis points in the case of the 2028 Notes, (iv) 25 basis points in the case of the 2047 Notes and (v) 30 basis points in the case of the 2048 Notes. The redemption dates of each of the Notes are provided in the below table: Note Redemption Date 2024 Euro Notes December 14, 2023 2026 Euro Notes June 25, 2026 2028 Notes June 26, 2028 2047 Notes December 1, 2046 2048 Notes March 26, 2048 The 2025 Notes, 2027 Notes, 2030 Notes, 2040 Notes and 2050 Notes (collectively, the “N&B Senior Notes”) were assumed as a result of the Merger and share the same redemption provisions. Upon 15 days’ notice to holders of the N&B Senior Notes, the Company may redeem the N&B Senior Notes at any time at the greater of 100% or the discounted present value of the remaining scheduled payments of principal and interest from the redemption date to the maturity date at the Treasury Rate (as defined in the applicable agreements) plus (i) 15 basis points in the case of the 2025 Notes, (ii) 25 basis points in the case of the 2027 Notes, (iii) 25 basis points in the case of the 2030 Notes, (iv) 30 basis points in the case of the 2040 Notes and (v) 30 basis points in the case of the 2050 Notes. The redemption dates of each of the N&B Senior Notes are provided in the table below: Note Redemption Date 2025 Notes September 1, 2025 2027 Notes August 15, 2027 2030 Notes August 1, 2030 2040 Notes May 15, 2040 2050 Notes June 1, 2050 On or after the applicable redemption dates, each series of the Notes and N&B Senior Notes (collectively, the “IFF Notes”) may be redeemed by the issuer at a redemption price equal to 100% of the principal amount of the IFF Notes to be redeemed, plus accrued and unpaid interest on the notes to be redeemed to, but excluding, the redemption date. The indenture of the IFF Notes provides for customary events of default and contains certain negative covenants that limit the ability of the Company and its subsidiaries to grant liens on assets, or to enter into sale-leaseback transactions. In addition, subject to certain limitations, in the event of the occurrence of both (1) a change of control of the Company and (2) ratings of the IFF Notes is under publicly announced consideration or is downgraded below investment grade by either Moody’s Investors Services, Inc. or Standard & Poor’s Ratings Services within a specified time period, the Company will be required to make an offer to repurchase the IFF Notes at a price equal to 101% of the principal amount of the IFF Notes, plus accrued and unpaid interest to the date of repurchase. Outstanding Borrowings The following table shows the contractual maturities of the Company’s long-term debt as of December 31, 2023. Payments Due by Period (DOLLARS IN MILLIONS) Total Less than 1 Year 1-3 Years 3-5 Years More than Total Outstanding Borrowings $ 9,980 $ 885 $ 2,445 $ 1,600 $ 5,050 Subsequent Event On February 1, 2024, the Company repaid the remaining $270 million outstanding on its 2024 Term Loan Facility. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | LEASES The Company has leases for corporate offices, manufacturing facilities, research and development facilities and certain transportation and office equipment, the majority of which are operating leases. 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 15 years. The components of lease expense were as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Operating leases Operating lease cost $ 137 $ 134 $ 133 Variable lease cost 56 53 35 Total operating lease cost $ 193 $ 187 $ 168 Finance leases Finance lease cost $ 10 $ 8 $ 7 Supplemental cash flow information related to leases was as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 122 $ 135 $ 129 Operating cash flows for finance leases 1 — — Financing cash flows for finance leases 8 7 6 Right-of-use assets obtained in exchange for lease obligations Operating leases 49 174 88 Finance leases 22 7 15 Supplemental balance sheet information related to leases was as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 Operating Leases Operating lease right-of-use assets $ 689 $ 743 Current operating lease obligations (2) 85 86 Operating lease liabilities 642 672 Total operating lease liabilities $ 727 $ 758 Finance Leases Finance lease right-of-use assets (1) $ 26 $ 22 Current finance lease obligations (2) 7 5 Finance lease liabilities (3) 18 12 Total finance lease liabilities $ 25 $ 17 _______________________ (1) Presented in Other assets on the Consolidated Balance Sheets. (2) Presented in Other current liabilities on the Consolidated Balance Sheets. (3) Presented in Other liabilities on the Consolidated Balance Sheets. Weighted average remaining lease term and discount rate were as follows: December 31, 2023 2022 Weighted average remaining lease term in years Operating leases 9.9 10.6 Finance leases 3.5 4.0 Weighted average discount rate Operating leases 4.24 % 3.83 % Finance leases 4.33 % 2.59 % Maturities of lease liabilities as of December 31, 2023 were as follows: (DOLLARS IN MILLIONS) Operating Leases Finance Leases Total 2024 $ 113 $ 9 $ 122 2025 110 8 118 2026 101 7 108 2027 87 4 91 2028 77 — 77 Thereafter 410 — 410 Total undiscounted liabilities 898 28 926 Less: Imputed interest (171) (3) (174) Total lease liabilities $ 727 $ 25 $ 752 Right-of-use assets and lease liabilities acquired from N&B were remeasured at the present value of the future minimum lease payments over the remaining lease term utilizing an updated incremental borrowing rate of the Company as if the acquired leases were new leases as of the Closing Date. Right-of-use assets were further adjusted for any off-market terms of the lease. The remaining lease term is based on the remaining term at the Closing Date plus any renewal or extension options that the Company is reasonably certain will be exercised. Additionally, the Company has elected short-term lease treatment for those acquired lease contracts which, at the Closing Date, have a remaining lease term of 12 months or less. For the leases acquired through the Transactions, the Company will retain the previous lease classification. This resulted in an increase in both operating lease right-of-use assets and operating lease liabilities of approximately $525 million and $523 million, respectively, as of the Closing Date. As a result of the Company’s acquisition of Health Wright, there was an increase of approximately $22 million in finance lease right-of-use assets and $21 million in finance lease liabilities as of the Acquisition Date. In the fourth quarter of 2022, the Company exercised its option to purchase the asset and, as such, de-recognized the finance lease right-of-use assets and finance lease liabilities. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Earnings before income taxes consisted of the following: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 U.S. loss before taxes $ (1,777) $ (1,918) $ (493) Foreign (loss) income before taxes (741) 293 847 Total (loss) income before taxes $ (2,518) $ (1,625) $ 354 The income tax provision consisted of the following: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Current tax provision Federal $ 55 $ 102 $ (5) State and local — 49 13 Foreign 359 325 303 Total current tax provision 414 476 311 Deferred tax provision Federal (113) (77) (121) State and local 32 (111) (34) Foreign (288) (49) (81) Total deferred tax benefit (369) (237) (236) Total provision for income taxes $ 45 $ 239 $ 75 Effective Tax Rate Reconciliation Reconciliation between the U.S. federal statutory income tax rate to the actual effective tax rate was as follows: December 31, 2023 2022 2021 Statutory tax rate 21.0 % 21.0 % 21.0 % Tax effect of non-deductible goodwill impairment (20.4) (29.1) — Difference in effective tax rate on foreign earnings and remittances (1) (0.2) — 8.0 Tax benefit from supply chain optimization 0.5 0.8 (5.8) Unrecognized tax benefit, net of reversals (0.8) 0.9 0.7 Tax impact on business divestitures (3.7) (5.9) 4.0 Deferred taxes on deemed repatriation (2) 0.5 (5.6) 2.7 Global intangible low-taxed income (0.4) (0.8) 4.1 Foreign-derived intangible income — 1.1 (1.6) U.S. foreign tax credit - general limitation 0.2 0.1 (3.1) Research and development credit 0.5 0.8 (1.4) Acquisition costs — — 2.4 Establishment (release) of valuation allowance on state deferred — — (3.0) State and local taxes including rate changes (3) (1.7) 4.3 (4.8) Tax impact on internal asset transfer 5.3 — — Other, net (2.6) (2.3) (2.0) Effective tax rate (1.8) % (14.7) % 21.2 % _______________________ (1) For 2021, the rate includes rate change impacts related to the Netherlands and United Kingdom. (2) For 2022 and 2023, the rate includes the establishment of the held for sale deferred tax liabilities due to a change in assertion. (3) For 2022 and 2023, the rate includes rate change impacts related to the remeasurement of the state tax rate on deferred taxes. The effective tax rate reflects the recording of the tax effects of the divestitures of the portion of the Savory Solutions business and Flavor Specialty Ingredients business and book to tax differences related to the impairment of goodwill in the Nourish reporting unit. The Company has elected to treat global intangible low-taxed income (“GILTI”) as a current period cost if and when incurred. This tax position resulted in a net income tax expense of approximately $64 million for the year ended December 31, 2023, offset in part by foreign tax credits of approximately $54 million. Deferred Taxes The deferred tax assets and liabilities consisted of the following amounts: December 31, (DOLLARS IN MILLIONS) 2023 2022 Employee and retiree benefits $ 118 $ 61 Credit and net operating loss carryforwards 332 315 Amortizable research and development expenses 125 84 Interest limitation 127 3 Inventory 35 19 Lease obligations 170 151 Other, net 114 131 Gross deferred tax assets 1,021 764 Property, plant and equipment, net (239) (229) Intangible assets (1) (1,792) (2,049) Right-of-use assets (170) (151) Loss on foreign currency translation — (23) Deferred taxes on deemed repatriation (155) (166) Gross deferred tax liabilities (2,356) (2,618) Valuation allowance (324) (262) Total net deferred tax liabilities $ (1,659) $ (2,116) _______________________ (1) Includes deferred taxes on intangible assets owned by a fully consolidated partnership. Net operating loss carryforwards were approximately $311 million and $301 million as of December 31, 2023 and 2022, respectively. If unused, approximately $106 million will expire between 2024 and 2043. The remainder, totaling approximately $205 million, may be carried forward indefinitely. Tax credit carryforwards were approximately $21 million and $14 million as of December 31, 2023 and 2022, respectively. If unused, the $21 million will expire between 2024 and 2043. Of the deferred tax assets at December 31, 2023, the Company considers it unlikely that a portion of the tax benefit will be realized. Accordingly, a valuation allowance of approximately $324 million has been established against these deferred tax assets. Uncertain Tax Positions A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Balance of unrecognized tax benefits at beginning of year $ 112 $ 130 $ 99 Gross amount of increases in unrecognized tax benefits as a result of positions taken during a prior year (1) 1 1 42 Gross amount of decreases in unrecognized tax benefits as a result of positions taken during a prior year — (18) (3) Gross amount of increases in unrecognized tax benefits as a result of positions taken during the current year 19 31 5 The amounts of decreases in unrecognized benefits relating to settlements with taxing authorities (3) (27) (1) Reduction in unrecognized tax benefits due to the lapse of applicable statute of limitation (6) (5) (12) Balance of unrecognized tax benefits at end of year $ 123 $ 112 $ 130 _______________________ (1) For 2021, the amount includes positions related to N&B opening balance sheet amounts. As of December 31, 2023, 2022 and 2021, there were approximately $123 million, $98 million and $130 million, respectively, of unrecognized tax benefits recorded to Other liabilities. There were no amounts recorded to Other current liabilities for 2023. There were approximately $14 million and less than $1 million recorded to Other current liabilities for 2022 and 2021, respectively. If these unrecognized tax benefits were recognized, all the benefits and related interest and penalties would be recorded as a benefit to income tax expense. The Company increased its liabilities for interest and penalties by approximately $12 million, net, for the year ended December 31, 2023. The Company decreased its liabilities for interest and penalties by approximately $1 million, net, and increased its liabilities for interest and penalties by approximately $19 million, net, for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2023, 2022 and 2021, the Company had accrued approximately $47 million, $31 million and $36 million, respectively, of interest and penalties classified as Other liabilities. As of December 31, 2023, the Company had no accruals of interest and penalties classified as Other current liabilities. As of December 31, 2022 and 2021, the Company had accrued approximately $4 million and less than $1 million, respectively, of interest and penalties classified as Other current liabilities. As of December 31, 2023, the Company’s aggregate provision for unrecognized tax benefits, including interest and penalties, was approximately $170 million associated with various tax positions principally asserted in foreign jurisdictions. As of December 31, 2023, all the unrecognized tax benefits, if recognized, would affect the effective tax rate. The total changes to uncertain tax positions over the next 12 months is impracticable to estimate and is dependent on the resolution of new or existing tax disputes. Other Tax benefits credited to Shareholders’ equity were not material for the years ended December 31, 2023, 2022 and 2021 associated with stock option exercises and PRSU dividends. The Company regularly repatriates earnings from non-U.S. subsidiaries. As the Company repatriates these funds to the U.S., there will be required income taxes payable in certain U.S. states and applicable foreign withholding taxes during the period when such repatriation occurs. Accordingly, as of December 31, 2023, the Company had a deferred tax liability of approximately $155 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 the Company intends 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 other ongoing tax audits and legal proceedings that relate to indirect taxes, such as value-added taxes, capital tax, sales and use and property taxes, which are discussed in Note 19. The Company also has several other tax audits in process and has open tax years with various taxing jurisdictions that range primarily from 2010 to 2022. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NET (LOSS) INCOME PER SHARE Basic and diluted net (loss) income per share is based on the weighted average number of shares outstanding. A reconciliation of shares used in the computation of basic and diluted net (loss) income per share is as follows: December 31, (AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS) 2023 2022 2021 Net (Loss) Income Net (loss) income attributable to IFF shareholders $ (2,567) $ (1,871) $ 270 Adjustment related to decrease (increase) in redemption value of redeemable non-controlling interests in excess of earnings allocated 2 3 (2) Net (loss) income available to IFF shareholders $ (2,565) $ (1,868) $ 268 Shares Weighted average common shares outstanding (basic) (1) 255 255 243 Weighted average shares assuming dilution (diluted) 255 255 243 Net (Loss) Income per Share Net (loss) income per share - basic (2) $ (10.05) $ (7.32) $ 1.11 Net (loss) income per share - diluted (3) (10.05) (7.32) 1.10 _______________________ (1) On September 15, 2021, additional shares of IFF’s common stock were issued in settlement of the SPC portion of the TEUs. See below for additional information. (2) For the years ended December 31, 2023, 2022 and 2021, the basic net (loss) income per share cannot be recalculated based on the information presented in the table above due to the effects of rounding. (3) For the years ended December 31, 2023 and 2022, the diluted net loss per share cannot be recalculated based on the information presented in the table above due to the effects of rounding. 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 issued 16,500,000 TEUs, consisting of a prepaid SPC and a senior amortizing note, for net proceeds of approximately $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 volume-weighted average price (“VWAP”) per share of the Company’s common stock. For purposes of calculating basic net income per share, the settlement rate of 0.330911 shares per SPC, the final settlement rate, was used on December 31, 2021. For purposes of calculating diluted net income per share, the settlement rate of 0.330911 shares per SPC, the final settlement rate, was used on December 31, 2021. The Company has issued shares of Purchased Restricted Stock Units (“PRSUs”) which contain non-forfeitable rights to dividends and thus are considered participating securities which are required to be included in the computation of basic and diluted earnings per share pursuant to the two-class method. The two-class method was not presented since there was no difference between basic net (loss) income per share for both common shareholders and PRSU holders for the years ended December 31, 2023, 2022 and 2021, and there was no difference between diluted net loss per share for both common shareholders and PRSU holders for the years ended December 31, 2023 and 2022. The difference between diluted net income per share for both common shareholders and PRSU holders was less than $0.01 per share for the year ended December 31, 2021. In addition, for each year, the number of PRSUs outstanding as of December 31, 2023, 2022 and 2021 was not material. Net loss allocated to such PRSUs during 2023 and 2022 was not material and net income allocated to such PRSUs during 2021 was not material. There were approximately 0.2 million and 0.3 million potentially dilutive securities excluded from the computation of diluted net loss per share for the years ended December 31, 2023 and 2022, respectively, because there was a net loss attributable to IFF for the periods and, as such, the inclusion of these securities would have been anti-dilutive. For the years ended December 31, 2023 and 2022, there were approximately 0.4 million and 0.3 million share equivalents that had an anti-dilutive effect and therefore were excluded from the computation of diluted net loss per share. There were no share equivalents excluded from the computation of diluted net income per share for the year ended December 31, 2021. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Dividends Cash dividends declared per share were $3.24, $3.20 and $3.12 for the years ended December 31, 2023, 2022 and 2021, respectively. The Consolidated Balance Sheets reflect $207 million of dividends payable at December 31, 2023. This amount relates to a cash dividend of $0.81 per share declared in December 2023 and paid in January 2024. Dividends declared, but not paid as of December 31, 2022 and December 31, 2021 were $206 million ($0.81 per share) and $201 million ($0.79 per share), respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation Plans | STOCK COMPENSATION PLANS The Company has various equity plans under which its officers, senior management, other key employees and Board of Directors may be granted options to purchase IFF common stock or other forms of stock-based awards. The cost of all employee stock-based awards are principally recognized on a straight-line attribution basis over their respective vesting periods, net of estimated forfeitures. Total stock-based compensation expense included in the Consolidated Statements of (Loss) Income and Comprehensive Loss was as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Equity-based awards $ 65 $ 49 $ 54 Liability-based awards 2 2 8 Total stock-based compensation 67 51 62 Less: Tax benefit (11) (8) (13) Total stock-based compensation, net of tax $ 56 $ 43 $ 49 The shareholders of the Company approved the Company’s 2021 Stock Award and Incentive Plan (the “2021 Plan”) on May 5, 2021. The 2021 Plan replaced the Company’s 2015 Stock Award and Incentive Plan (the “2015 Plan”) and the Company’s 2010 Stock Award and Incentive Plan (the “2010 Plan”), and provides the source for future deferrals of cash into deferred stock under the Company’s Deferred Compensation Plan (with the Deferred Compensation Plan being deemed a subplan under the 2010 Plan for the sole purpose of funding deferrals under the IFF Share Fund). Under the 2021 Plan, a total of 2,290,000 shares were authorized for issuance. As of December 31, 2023, 1,817,519 shares were subject to outstanding awards and 748,082 shares remained available for future awards under all of the Company’s equity award plans, including the 2015 Plan and 2010 Plan (excluding shares not yet issued under open cycles of the Company’s Long-Term Incentive Plan). The Company offers a Long-Term Incentive Plan (“LTIP”) for senior management. The targeted payout is principally 50% cash and 50% IFF common stock at the end of the three-year cycle. Beginning 2023, the targeted payout for all new cycles is 100% IFF common stock at the end of the three-year cycle. For the 2021-2023 cycle, the LTIP awards are earned based on the achievement of: (i) an annual Leverage Ratio for 2021, 2022 and 2023 (representing one-half of the award value) and (ii) Relative TSR targets (representing one-half of the award value). For the 2022-2024 and 2023-2025 cycles, the LTIP awards are earned based on the achievement of: (i) 3-year cumulative Return on Invested Capital (“ROIC”) (representing one-half of the award value) and (ii) Relative TSR targets (representing one-half of the award value). The Leverage Ratio measures Net debt as compared to a measure profitability. The ROIC measures adjusted net operating profit after tax against average invested capital. When the award is granted, 50% of the target dollar value of the award is converted to a number of “notional” shares based on the closing price at the beginning of the cycle. For those shares whose payout is based on Relative TSR, compensation expense is recognized using a graded-vesting attribution method, while compensation expense for the remainder of the performance shares (Leverage Ratio or ROIC targets for the applicable cycle) is recognized on a straight-line basis over the vesting period based on the probable outcome of the performance condition. The 2019-2021 cycle concluded at the end of 2021 and no shares of common stock were issued in March 2022. The 2020-2022 cycle concluded at the end of 2022 and no shares of common stock were issued in March 2023. The 2021-2023 cycle concluded at the end of 2023 and 5,333 shares of common stock will be issued in March 2024. In 2006, the Board of Directors approved the Equity Choice Program (the “Program”) for senior management. This program continued under the 2021 Plan. Eligible employees were allowed to choose from among three equity alternatives and were granted such equity awards up to certain dollar awards depending on the participant’s employment grade level. A participant was able to choose among (1) Stock-Settled Appreciation Rights (“SSARs”), (2) Restricted Stock Units (“RSUs”) or (3) PRSUs. Beginning 2023, the Company no longer offers the choice from among three equity alternatives and all eligible employees are granted RSUs. Transaction with Nutrition and Biosciences, Inc. In connection with the Merger, N&B employees’ outstanding (unvested and/or vested and unexercised) equity awards were converted into equity awards denominated in shares of the Company’s common stock based on a defined exchange ratio. N&B employees’ equity awards were converted into 335,347 IFF stock options, 258,572 IFF RSU awards and 5,816 IFF SAR awards. For converted RSU awards, the fair value of the equity award is based on the Closing Date market price of IFF stock. For converted stock options and SAR awards, the exercise price per share of the converted award is equal to the exercise price per share of the N&B award immediately prior to the Merger divided by the exchange ratio. The fair value of the IFF stock options and SAR awards that the Company issued in connection with the Merger was estimated using the Black Scholes model. The converted awards were generally issued with the same terms and conditions as were applicable prior to the Transaction. At the Closing Date, approximately $25 million of the fair value of the replacement awards granted to N&B employees was attributable to pre-combination service and was included in the purchase price. As of December 31, 2023, there was no remaining post-combination expense to be recognized related to the replacement awards over the remaining post-combination service period, which was approximately up to three years. SSARs and Options SSARs are a contractual right to receive the value, in shares of Company stock, of the appreciation in our stock price from the grant date to the date the SSARs are exercised by the participant. SSARs granted become exercisable on the third anniversary of the grant date and have a maximum term of seven years. SSARs do not require a financial investment by the SSARs grantee. Stock options require the participant to pay the exercise price at the time they exercise their stock options. No stock options were granted in 2023, 2022 or 2021. SSARs and options activity was as follows: (SHARE AMOUNTS IN THOUSANDS) Shares Subject to Weighted SSARs/ December 31, 2022 331 $ 115.35 182 Granted — — Exercised (8) 68.67 Canceled (8) 122.28 December 31, 2023 315 $ 116.26 194 Expected to Vest at December 31, 2023 118 $ 126.99 The weighted average exercise price of SSARs and options exercisable at December 31, 2023, 2022 and 2021 were $109.59, $109.50 and $109.77, respectively. SSARs and options outstanding at December 31, 2023 was as follows: Price Range Number Weighted Average Weighted Aggregate Over $65 315 4.71 $ 116.26 $ — SSARs and options exercisable as of December 31, 2023 was as follows: Price Range Number Weighted Average Weighted Aggregate Over $65 194 4.33 $ 109.59 $ — The total intrinsic value of options/SSARs exercised during 2023 was less than $1 million and approximately $2 million for 2022 and $3 million for 2021. As of December 31, 2023, the total unrecognized compensation cost related to non-vested SSARs granted was approximately $1 million; such cost is expected to be recognized over a weighted average period of approximately 1.14 years. Restricted Stock Units The Company has granted RSUs to eligible employees and members of the Board of Directors. The Company has granted both time-based RSUs, which contain no performance criteria provisions, and performance-based RSUs. Such RSUs are subject to forfeitures or adjustments if certain conditions are not met, including service period or pre-established cumulative performance targets. RSUs principally vest 100% at the end of three years. An RSU’s fair value is calculated based on the market price of the Company’s stock at date of grant, with an adjustment to reflect the fact that such awards do not participate in dividend rights. The aggregate fair value is amortized to expense ratably over the vesting period. RSU activity was as follows: (SHARE AMOUNTS IN THOUSANDS) Number of Shares Weighted Average December 31, 2022 937 $ 120.81 Granted 843 87.31 Vested (315) 119.15 Forfeited (78) 105.63 Change due to performance conditions, net (20) 134.04 December 31, 2023 1,367 $ 101.50 The total fair value of RSUs that vested during the year ended December 31, 2023 was approximately $38 million. As of December 31, 2023, there was approximately $67 million of total unrecognized compensation cost related to non-vested RSUs granted under the equity incentive plans; such cost is expected to be recognized over a weighted average period of approximately 1.94 years. Purchased Restricted Stock Units The grant of awards under the Program provided for eligible employees to purchase shares of IFF common stock and deposit them into an escrow account. For each share deposited in escrow by the eligible employee, the Company matched with the grant of a restricted stock unit. The shares of restricted stock units generally vest on the third anniversary of the grant date, are subject to continued employment and other specified conditions, and pay dividends if and when paid by the Company. Holders of restricted stock units have, in most instances, all of the rights of shareholders, except that they may not sell, assign, pledge or otherwise encumber such shares. PRSUs pay dividend equivalents and do not have voting rights. The following table summarizes the Company’s PRSU activity for the years ended December 31, 2023, 2022 and 2021: (DOLLARS IN MILLIONS) Issued Shares Aggregate Purchases Covered Shares 2023 — $ — — 2022 43,690 $ 6 21,845 2021 61,870 $ 9 30,935 PRSU activity was as follows: (SHARE AMOUNTS IN THOUSANDS) Number of Weighted Average December 31, 2022 90 $ 133.36 Granted — — Vested (26) 131.31 Forfeited (3) 138.98 December 31, 2023 61 $ 133.96 The total fair value of PRSUs that vested during the year ended December 31, 2023 was approximately $3 million. As of December 31, 2023, there was approximately $1 million of total unrecognized compensation cost related to non-vested PRSUs granted under the equity incentive plans; such cost is expected to be recognized over a weighted average period of approximately 1.06 years. Liability Awards The Company has granted cash-settled RSUs (“Cash RSUs”) to eligible employees that are paid out 100% in cash upon vesting. Such RSUs are subject to forfeiture if certain conditions are not met. Cash RSUs principally vest 100% at the end of three years and contain no performance criteria provisions. A Cash RSU’s fair value is calculated based on the market price of the Company’s stock at the date of the closing period and is accounted for as a liability award. The aggregate fair value is amortized to expense ratably over the vesting period. Cash RSU activity was as follows: (SHARE AMOUNTS IN THOUSANDS) Cash RSUs Weighted Average December 31, 2022 119 $ 104.84 Granted 19 80.97 Vested (40) 94.72 Forfeited (7) 82.24 December 31, 2023 91 $ 80.97 The total fair value of Cash RSUs that vested during the year ended December 31, 2023 was approximately $4 million. As of December 31, 2023, there was approximately $2 million of total unrecognized compensation cost related to non-vested Cash RSUs granted under the equity incentive plans; such cost is expected to be recognized over a weighted average period of approximately 1.45 years. The aggregate compensation cost will be adjusted based on changes in the Company’s stock price. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company is organized into four reportable operating segments: Nourish, Health & Biosciences, 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 Ingredients, Flavors and Food Designs, with a diversified portfolio across natural and plant-based specialty food ingredients, flavor compounds, and systems 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 blends and systems that combine key ingredients tailored to IFF customers’ specific needs. 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 Health, Cultures & Food Enzymes, Home & Personal Care, Animal Nutrition and Grain Processing, 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 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. Scent is comprised of (1) Fragrance Compounds, which are ultimately used by IFF’s 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 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. The Company’s Chief Operating Decision Maker evaluates the performance of these reportable segments based on Segment Adjusted Operating EBITDA, which is defined as (Loss) Income Before Taxes before depreciation and amortization expense, interest expense, restructuring and other charges and certain items that are not related to recurring operations. Reportable segment information is as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Net sales Nourish $ 6,060 $ 6,829 $ 6,264 Health & Biosciences 2,081 2,339 2,329 Scent 2,393 2,301 2,254 Pharma Solutions 945 971 809 Consolidated $ 11,479 $ 12,440 $ 11,656 December 31, (DOLLARS IN MILLIONS) 2023 2022 Segment assets Nourish $ 12,893 $ 17,062 Health & Biosciences 10,666 10,924 Scent 4,274 4,309 Pharma Solutions 3,145 3,227 Consolidated $ 30,978 $ 35,522 December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Segment Adjusted Operating EBITDA: Nourish $ 732 $ 1,176 $ 1,172 Health & Biosciences 588 634 625 Scent 461 423 463 Pharma Solutions 199 222 165 Total 1,980 2,455 2,425 Depreciation & Amortization (1,142) (1,179) (1,156) Interest Expense (380) (336) (289) Other (Expense) Income, net (28) 37 58 Restructuring and Other Charges (a) (68) (12) (41) Impairment of Goodwill (b) (2,623) (2,250) — Impairment of Long-Lived Assets (c) — (120) — Acquisition, Divestiture and Integration Related Costs (d) (174) (201) (240) Strategic Initiatives Costs (e) (31) (8) — Regulatory Costs (f) (50) — — N&B Inventory Step-Up Costs (g) — — (368) Other (h) (2) (11) (35) (Loss) Income Before Taxes $ (2,518) $ (1,625) $ 354 _______________________ (a) Represents costs primarily related to severance as part of the Company's restructuring efforts. (b) For 2023, represents costs related to the impairment of goodwill in the Nourish reporting unit. For 2022, represents costs related to the impairment of goodwill in the Health & Biosciences reporting unit. (c) Represents costs related to the impairment of intangible and fixed assets of an asset group that operated primarily in Russia. (d) For 2023, 2022 and 2021, primarily represents costs related to the Company's actual and planned acquisitions and divestitures and integration related activities primarily for N&B. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts. For 2023, acquisition costs primarily relate to earn-out adjustments. For 2022, acquisition costs primarily relate to consulting fees, legal fees and earn-out adjustments. For 2021, acquisition costs primarily relate to legal and professional fees for the transaction with N&B. Tax expenses for business divestiture costs included establishments of deferred tax liabilities related to planned sales of businesses. For 2023, business divestiture, integration and acquisition related costs were approximately $108 million, $59 million and $7 million, respectively. For 2022, business divestiture, integration and acquisition related costs were approximately $110 million, $94 million and a credit of $3 million, respectively. For 2021, business divestiture, integration and acquisition related costs were approximately $42 million, $105 million and $93 million, respectively. (e) Represents costs related to the Company's strategic assessment and business portfolio optimization efforts and reorganizing the Global Shared Services Centers, primarily consulting fees. (f) Represents costs primarily related to legal fees incurred for the ongoing investigations of the fragrance businesses. (g) Represents costs related to fair value step-up of inventory for the acquired inventory through the Merger with N&B. (h) For 2023, represents gains from sale of assets and costs related to severance, including accelerated stock compensation expense, for a certain executive who will separate from the Company in 2024. For 2022 and 2021, represents gains from sale of assets, costs related to severance, including accelerated stock compensation expense, for certain employees and executives who have been separated from the Company in 2022 and 2021, respectively, and shareholder activist related costs, primarily professional fees. The Company has not disclosed revenues at a lower level than provided herein, such as revenues from external customers by product, as it is impracticable for it to do so. The Company had no customers that accounted for greater than 10% of consolidated net sales in 2023, 2022 and 2021. Long-lived assets, net, by country, consisted as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 United States $ 1,742 $ 1,771 China 228 258 Denmark 262 250 Finland 214 212 France 199 187 Germany 171 181 Other 1,424 1,344 Consolidated $ 4,240 $ 4,203 Segment capital expenditures and depreciation and amortization consisted as follows: Capital Expenditures Depreciation and Amortization (DOLLARS IN MILLIONS) 2023 2022 2021 2023 2022 2021 Nourish $ 252 $ 215 $ 183 $ 553 $ 596 $ 594 Health & Biosciences 85 160 139 374 363 353 Scent 62 56 41 78 81 84 Pharma Solutions 104 73 30 137 139 125 Consolidated $ 503 $ 504 $ 393 $ 1,142 $ 1,179 $ 1,156 Net sales are attributed to individual regions based upon the destination of product delivery and are as follows: Net Sales by Geographic Area (DOLLARS IN MILLIONS) 2023 2022 2021 Europe, Africa and Middle East $ 3,834 $ 4,219 $ 4,093 Greater Asia 2,677 2,876 2,728 North America 3,477 3,853 3,499 Latin America 1,491 1,492 1,336 Consolidated $ 11,479 $ 12,440 $ 11,656 Net Sales by Geographic Area (DOLLARS IN MILLIONS) 2023 2022 2021 Net sales related to the U.S. $ 3,185 $ 3,611 $ 3,211 Net sales attributed to all foreign countries 8,294 8,829 8,445 No non-U.S. country had net sales greater than 7% of total consolidated net sales for 2023 and net sales greater than 6% and 7% of total consolidated net sales for 2022 and 2021, respectively. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefits | EMPLOYEE BENEFITS The Company has pension and/or other retirement benefit plans covering approximately 20% of active employees. In 2007, the Company amended its U.S. qualified and non-qualified pension plans under which accrual of future benefits was suspended for all participants that did not meet the rule of 70 (age plus years of service equal to at least 70 as of December 31, 2007). Pension benefits are generally based on years of service and compensation during the final years of employment. Plan assets consist primarily of equity securities and corporate and government fixed income securities. Substantially all pension benefit costs are funded as accrued; such funding is limited, where applicable, to amounts deductible for income tax purposes. Certain other retirement benefits are provided by general corporate assets. As of the Closing Date of the Merger with N&B, the Company assumed responsibility for approximately 20 additional defined benefit plans and recognized liabilities in the aggregate amount of $221 million. The Company sponsors a qualified defined contribution plan covering substantially all U.S. employees. Under this plan, effective January 1, 2023, the Company matches 100% of the first 6% of participants’ contributions. Prior to this, the Company matched 100% of participants’ contributions up to 4% of compensation and 75% of participants’ contributions from over 4% to 8%. Employees that are still eligible to accrue benefits under the pension plans are limited to a 50% match of up to 6% of the participants’ compensation. In addition to pension benefits, certain health care and life insurance benefits are provided to qualifying U.S. employees upon retirement from IFF. Such coverage is provided through insurance plans with premiums based on benefits paid. The Company does not generally provide health care or life insurance coverage for retired employees of foreign subsidiaries; such benefits are provided in most foreign countries by government-sponsored plans, and the cost of these programs is not material. The Company offers a non-qualified Deferred Compensation Plan (“DCP”) for certain key employees and non-employee directors. Eligible employees and non-employee directors may elect to defer receipt of salary, incentive payments and Board of Directors’ fees into participant-directed investments which are generally invested by the Company in individual variable life insurance contracts it owns that are designed to informally fund savings plans of this nature. The cash surrender value of life insurance is based on the net asset values of the underlying funds available to plan participants. At December 31, 2023 and December 31, 2022, the Consolidated Balance Sheets reflect liabilities of approximately $52 million and $53 million, respectively, related to the DCP in Other liabilities and approximately $17 million and $25 million, respectively, included in Capital in excess of par value related to the portion of the DCP that will be paid out in IFF shares. The total cash surrender value of life insurance contracts the Company owns in relation to the DCP and post-retirement life insurance benefits amounted to $49 million and $45 million at December 31, 2023 and 2022, respectively, and are recorded in Other assets in the Consolidated Balance Sheets. The plan assets and benefit obligations of the defined benefit pension plans are measured at December 31 of each year. U.S. Plans Non-U.S. Plans (DOLLARS IN MILLIONS) 2023 2022 2021 2023 2022 2021 Components of net periodic benefit cost Service cost for benefits earned (1) $ — $ 1 $ 1 $ 21 $ 34 $ 41 Interest cost on projected benefit obligation (2) 25 15 71 36 17 10 Expected return on plan assets (2) (31) (21) (106) (47) (42) (55) Net amortization of deferrals (2) 2 8 29 (1) 11 19 Settlements and curtailments (2) — — — (8) — (10) Net periodic benefit (income) cost (4) 3 (5) 1 20 5 Defined contribution and other retirement plans 30 33 36 51 29 33 Total expense $ 26 $ 36 $ 31 $ 52 $ 49 $ 38 Changes in plan assets and benefit obligations recognized in OCI Net actuarial loss (gain) $ 27 $ — $ 70 $ (143) Recognized actuarial (loss) gain (1) (8) 9 (12) Recognized prior service credit — — 1 1 Currency translation adjustment — — 9 (27) Total loss (gain) recognized in OCI (before tax effects) $ 26 $ (8) $ 89 $ (181) _______________________ (1) Included as a component of Operating (loss) profit. (2) Included as a component of Other expense (income), net. Postretirement Benefits (DOLLARS IN MILLIONS) 2023 2022 2021 Components of net periodic benefit cost Service cost for benefits earned $ — $ 1 $ 1 Interest cost on projected benefit obligation 3 1 7 Net amortization and deferrals (6) (5) (20) Total credit $ (3) $ (3) $ (12) Changes in plan assets and benefit obligations recognized in OCI Net actuarial loss (gain) $ 3 $ (16) Recognized actuarial loss — (1) Recognized prior service credit 5 6 Total recognized in OCI (before tax effects) $ 8 $ (11) The weighted-average actuarial assumptions used to determine expense at December 31 of each year are: U.S. Plans Non-U.S. Plans 2023 2022 2021 2023 2022 2021 Discount rate 5.42 % 2.86 % 2.51 % 3.98 % 1.43 % 0.85 % Expected return on plan assets 6.00 % 3.80 % 3.80 % 4.92 % 3.52 % 4.21 % Rate of compensation increase 3.75 % 3.25 % 3.25 % 3.01 % 2.72 % 2.56 % Changes in the postretirement benefit obligation and plan assets, as applicable, are detailed in the following table: U.S. Plans Non-U.S. Plans Postretirement Benefits (DOLLARS IN MILLIONS) 2023 2022 2023 2022 2023 2022 Benefit obligation at beginning of year $ 500 $ 662 $ 930 $ 1,501 $ 50 $ 66 Service cost for benefits earned — 1 21 34 — 1 Interest cost on projected benefit obligation 25 15 36 17 3 2 Actuarial (gain) loss 38 (139) 77 (468) 3 (16) Adjustments for expense/tax contained in service cost — — (2) (2) — — Plan participants’ contributions — — 4 4 — — Benefits paid (39) (38) (33) (32) (3) (2) Curtailments/settlements (1) — (21) (21) — — Translation adjustments — — 45 (104) — — Other 1 (1) (1) 1 (1) (1) Benefit obligation at end of year $ 524 $ 500 $ 1,056 $ 930 $ 52 $ 50 Fair value of plan assets at beginning of year $ 498 $ 649 $ 920 $ 1,320 Actual return on plan assets 41 (118) 50 (286) Employer contributions 5 5 31 31 Participants’ contributions — — 4 4 Benefits paid (39) (38) (33) (32) Settlements — — (21) (21) Translation adjustments — — 44 (96) Other — — 5 — Fair value of plan assets at end of year $ 505 $ 498 $ 1,000 $ 920 Funded status at end of year $ (19) $ (2) $ (56) $ (10) The amounts recognized in the balance sheet are detailed in the following table: U.S. Plans Non-U.S. Plans (DOLLARS IN MILLIONS) 2023 2022 2023 2022 Other assets $ 30 $ 51 $ 109 $ 129 Other current liabilities (5) (6) (4) (1) Retirement liabilities (44) (47) (161) (138) Net amount recognized $ (19) $ (2) $ (56) $ (10) The amounts recognized in AOCI are detailed in the following table: U.S. Plans Non-U.S. Plans Postretirement Benefits (DOLLARS IN MILLIONS) 2023 2022 2023 2022 2023 2022 Net actuarial (gain) loss $ 155 $ 129 $ 198 $ 110 $ — $ (3) Prior service cost (credit) — — (2) (3) (4) (9) Total AOCI (before tax effects) $ 155 $ 129 $ 196 $ 107 $ (4) $ (12) U.S. Plans Non-U.S. Plans (DOLLARS IN MILLIONS) 2023 2022 2023 2022 Accumulated Benefit Obligation — end of year $ 520 $ 495 $ 988 $ 870 Information for Pension Plans with an Accumulated Benefit Obligation (“ABO”) in excess of Plan Assets: Accumulated benefit obligation $ 47 $ 49 $ 165 $ 150 Fair value of plan assets — — 36 41 Information for Pension Plans with a Projected Benefit Obligation (“PBO”) in excess of Plan Assets: Projected benefit obligation $ 47 $ 49 $ 185 $ 169 Fair value of plan assets — — 41 45 Weighted-average assumptions used to determine obligations at December 31 Discount rate 4.47 % 5.42 % 3.59 % 4.02 % Rate of compensation increase 3.75 % 3.75 % 2.83 % 3.00 % (DOLLARS IN MILLIONS) U.S. Plans Non-U.S. Plans Postretirement Estimated Future Benefit Payments 2024 $ 99 $ 39 $ 4 2025 38 36 4 2026 38 41 4 2027 37 40 4 2028 36 45 4 2029 - 2033 166 239 18 Contributions Required Company Contributions in the Following Year (2024) $ 5 $ 20 $ — The Company considers a number of factors in determining and selecting assumptions for the overall expected long-term rate of return on plan assets. The Company considers the historical long-term return experience of its assets, the current and expected allocation of its plan assets and expected long-term rates of return. The Company derives these expected long-term rates of return with the assistance of its investment advisors. The Company bases its expected allocation of plan assets on a diversified portfolio consisting of domestic and international equity securities, fixed income, property and alternative asset classes. The asset allocation is monitored on an ongoing basis. The Company considers a variety of factors in determining and selecting its assumptions for the discount rate at December 31. For the U.S. plans, the discount rate was based on the internal rate of return for a portfolio of high quality bonds rated Aa or higher by either Moody’s or Standard & Poor’s with maturities that are consistent with the projected future benefit payment obligations of the plan. For the Non-U.S. Plans, the discount rates were determined by region and are based on high quality long-term corporate bonds. Consideration has been given to the duration of the liabilities in each plan when selecting the bonds to be used in determining the discount rate. The rate of compensation increase for all plans and the medical cost trend rate for the applicable U.S. plans are based on plan experience. The percentage of assets in the Company’s pension plans, by type, is as follows: U.S. Plans Non-U.S. Plans 2023 2022 2023 2022 Cash and cash equivalents 1 % 2 % 3 % 3 % Equities 13 % 47 % 16 % 18 % Fixed income 86 % 51 % 42 % 37 % Property — % — % 8 % 9 % Alternative and other investments — % — % 31 % 33 % With respect to the U.S. plans, the expected return on plan assets was determined based on an asset allocation model using the current target allocation, real rates of return by asset class and an anticipated inflation rate. The target investment allocation is 10% equity securities and 90% fixed income securities. The expected annual rate of return for the non-U.S. plans employs a similar set of criteria adapted for local investments, inflation rates and in certain cases specific government requirements. Each plan has its own target asset allocation, which is reviewed periodically and rebalanced when necessary. The following tables present the Company’s plan assets for the U.S. and non-U.S. plans using the fair value hierarchy as of December 31, 2023 and 2022. The plans’ assets were accounted for at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and their placement within the fair value hierarchy levels. For more information on a description of the fair value hierarchy, see Note 16. U.S. Plans for the Year Ended December 31, 2023 (DOLLARS IN MILLIONS) Level 1 Level 2 Level 3 Total Cash Equivalents $ — $ 6 $ — $ 6 Fixed Income Securities Government & Government Agency Bonds — 5 — 5 Corporate Bonds — 82 — 82 Municipal Bonds — 5 — 5 Assets measured at net asset value (1) 406 Total $ — $ 98 $ — $ 504 Receivables $ 1 Total $ 505 U.S. Plans for the Year Ended December 31, 2022 (DOLLARS IN MILLIONS) Level 1 Level 2 Level 3 Total Cash Equivalents $ — $ 9 $ — $ 9 Fixed Income Securities Government & Government Agency Bonds — 6 — 6 Corporate Bonds — 73 — 73 Municipal Bonds — 5 — 5 Assets measured at net asset value (1) 404 Total $ — $ 93 $ — $ 497 Receivables $ 1 Total $ 498 _______________________ (1) Investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. The total amount measured at net asset value includes approximately $65 million and $234 million in pooled equity funds and $341 million and $170 million in fixed income mutual funds for the years ended December 31, 2023 and 2022, respectively. Non-U.S. Plans for the Year Ended December 31, 2023 (DOLLARS IN MILLIONS) Level 1 Level 2 Level 3 Total Cash $ 27 $ — $ — $ 27 Equity Securities U.S. Large Cap 90 — — 90 U.S. Mid Cap 8 — — 8 U.S. Small Cap 1 — — 1 Non-U.S. Large Cap 50 — — 50 Non-U.S. Mid Cap 5 — — 5 Non-U.S. Small Cap 1 — — 1 Emerging Markets 8 — — 8 Fixed Income Securities U.S. Corporate Bonds 29 — — 29 Non-U.S. Treasuries/Government Bonds 194 — — 194 Non-U.S. Corporate Bonds 50 88 — 138 Non-U.S. Asset-Backed Securities — 56 — 56 Non-U.S. Other Fixed Income 2 — — 2 Alternative Types of Investments Insurance Contracts — 247 — 247 Derivative Financial Instruments — 28 — 28 Absolute Return Funds 3 2 — 5 Private Equity Funds — 27 — 27 Property Non-U.S. Property 7 — 77 84 Total $ 475 $ 448 $ 77 $ 1,000 Non-U.S. Plans for the Year Ended December 31, 2022 (DOLLARS IN MILLIONS) Level 1 Level 2 Level 3 Total Cash $ 14 $ 9 $ — $ 23 Equity Securities U.S. Large Cap 73 — — 73 U.S. Mid Cap 6 — — 6 Non-U.S. Large Cap 79 — — 79 Non-U.S. Mid Cap 4 — — 4 Non-U.S. Small Cap 1 — — 1 Emerging Markets 7 — — 7 Fixed Income Securities U.S. Corporate Bonds 35 — — 35 Non-U.S. Treasuries/Government Bonds 144 — — 144 Non-U.S. Corporate Bonds 34 75 — 109 Non-U.S. Asset-Backed Securities — 46 — 46 Non-U.S. Other Fixed Income 2 — — 2 Alternative Types of Investments Insurance Contracts — 177 — 177 Derivative Financial Instruments — 56 — 56 Absolute Return Funds 4 2 — 6 Other — 64 3 67 Property Non-U.S. Property 4 — 81 85 Total $ 407 $ 429 $ 84 $ 920 Cash and cash equivalents are primarily held in registered money market funds which are valued using a market approach based on the quoted market prices of identical instruments. Other cash and cash equivalents are valued daily by the fund using a market approach with inputs that include quoted market prices for similar instruments. Equity securities are primarily valued using a market approach based on the quoted market prices of identical instruments. Pooled funds are typically common or collective trusts valued at their net asset values (NAVs). Fixed income securities are primarily valued using a market approach with inputs that include broker quotes and benchmark yields. Derivative instruments are valued by the custodian using closing market swap curves and market derived inputs. Property values are primarily based on valuation of the underlying investments, which include inputs such as cost, discounted future cash flows, independent appraisals and market comparable data. Hedge funds are valued based on valuation of the underlying securities and instruments within the funds. Quoted market prices are used when available and NAVs are used for unquoted securities within the funds. Absolute return funds are actively managed funds mainly invested in debt and equity securities and are valued at their NAVs. The following table presents a reconciliation of Level 3 non-U.S. plan assets held during the year ended December 31, 2023: Non-U.S. Plans (DOLLARS IN MILLIONS) Property Hedge Total Ending balance as of December 31, 2022 $ 81 $ 3 $ 84 Actual return on plan assets (4) — (4) Purchases, sales and settlements — (3) (3) Ending balance as of December 31, 2023 $ 77 $ — $ 77 The following weighted average assumptions were used to determine the postretirement benefit expense and obligation for the years ended December 31: Expense Liability 2023 2022 2023 2022 Discount rate 5.40 % 2.90 % 5.10 % 5.40 % Current medical cost trend rate 6.50 % 6.75 % 7.25 % 6.50 % Ultimate medical cost trend rate 4.75 % 4.75 % 4.75 % 4.75 % Medical cost trend rate decreases to ultimate rate in year 2030 2030 2034 2030 The Company contributed $31 million to its non-U.S. pension plans in 2023. No contributions were made to the Company’s qualified U.S. pension plans in 2023. The Company contributed $5 million with respect to its non-qualified U.S. pension plan. In addition, $3 million of payments were made with respect to the Company’s other postretirement plans. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [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 Term SOFR 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 included in Note 15. These valuations take into consideration the Company's credit risk and its counterparties’ credit risk. The carrying value and the estimated fair values of financial instruments at December 31 consisted of the following: 2023 2022 (DOLLARS IN MILLIONS) Carrying Value Fair Carrying Value Fair LEVEL 1 Cash and cash equivalents (1) $ 703 $ 703 $ 483 $ 483 LEVEL 2 Credit facilities and bank overdrafts (2) 3 3 106 106 Derivatives Derivative assets (3) 41 41 1 1 Derivative liabilities (3) 165 165 75 75 Commercial paper (2) — — 187 187 Long-term debt: 2023 Notes (4) — — 300 298 2024 Euro Notes (4) 552 549 532 519 2025 Notes (4) 1,000 924 1,000 884 2026 Euro Notes (4) 879 835 845 774 2027 Notes (4) 1,212 1,049 1,215 1,006 2028 Notes (4) 398 389 398 380 2030 Notes (4) 1,508 1,240 1,510 1,188 2040 Notes (4) 773 536 774 535 2047 Notes (4) 495 382 495 390 2048 Notes (4) 787 678 787 685 2050 Notes (4) 1,569 1,029 1,571 1,021 2024 Term Loan Facility (5) 270 270 625 625 2026 Term Loan Facility (5) 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 Note is obtained from pricing services engaged by the Company, and the Company receives one price for each security. The fair value provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. The inputs to the valuation techniques applied by the pricing services are typically benchmark yields, benchmark security prices, credit spreads, reported trades and broker-dealer quotes, all with reasonable levels of transparency. (5) 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 managing our exchange rate risk related to foreign currency denominated monetary assets and liabilities of our 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 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. The Company also uses options, futures and swaps that are designated as hedging instruments to reduce exposure to commodity price fluctuations on purchases of natural gas used in our manufacturing process. Cash Flow Hedges Through the third quarter of 2021, the Company maintained 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 (Loss) Income and Comprehensive Loss. Realized gains/(losses) in accumulated other comprehensive income (loss) (“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 (Loss) Income and Comprehensive Loss in the same period as the related costs are recognized. There were no cash flow hedges as of December 31, 2023 and December 31, 2022. Hedges Related to Issuances of Debt Subsequent to the issuance of the 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 (Loss) Income and Comprehensive 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 (Loss) Income and Comprehensive Loss. During the first quarter of 2016, the Company entered into and terminated two Euro interest rate swap agreements to hedge the anticipated issuance of fixed-rate debt. These swaps were designated as cash flow hedges. The effective portions of cash flow hedges are recorded in OCI as a component of Losses on derivatives qualifying as hedges in the accompanying Consolidated Statements of (Loss) Income and Comprehensive Loss. The Company incurred a loss of €3 million ($3 million) due to the termination of these swaps. The loss is being amortized as interest expense over the life of the 2024 Euro Notes as discussed in Note 9. During the fourth quarter of 2016 and the first quarter of 2017, the Company entered into interest rate swap agreements to hedge the anticipated issuance of fixed-rate debt, which are designated as cash flow hedges. The various hedge instruments were settled upon issuance of the debt on May 18, 2017 and resulted in a loss of approximately $5 million. As discussed in Note 9, the loss is being amortized as interest expense over the life of the 2047 Notes. Cross Currency Swaps During the third quarter of 2022, the Company entered into a transaction to unwind the fourteen outstanding EUR/USD cross currency swaps designated as net investment hedges issued between the third quarter of 2019 and the first quarter of 2022. The Company received proceeds of approximately $183 million, including $11 million of interest income. The gain arising from the termination of the swaps has been included as a component of Accumulated other comprehensive loss. Following the unwinding of the existing swaps, during the third quarter of 2022, the Company entered into twelve new 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 December 31, 2023, the twelve remaining swaps were in a liability position with an aggregate fair value of $161 million which were classified as Other liabilities on the Consolidated Balance Sheets. 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 December 31, 2023 and December 31, 2022: December 31, (DOLLARS IN MILLIONS) 2023 2022 Foreign currency contracts (1) $ (1,400) $ 92 Commodity contracts (1) 7 (1) Cross currency swaps 1,400 1,400 ______________________ (1) Foreign currency contracts and commodity contracts are presented net of contracts bought and sold. 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 December 31, 2023 and December 31, 2022: December 31, 2023 (DOLLARS IN MILLIONS) Fair Value of Derivatives Fair Value of Derivatives Not Designated as Hedging Instruments Total Fair Value Derivative assets (1) Foreign currency contracts $ — $ 41 $ 41 Total derivative assets $ — $ 41 $ 41 Derivative liabilities (2) Foreign currency contracts $ — $ 4 $ 4 Cross currency swaps 161 — 161 Total derivative liabilities $ 161 $ 4 $ 165 December 31, 2022 (DOLLARS IN MILLIONS) Fair Value of Derivatives Designated as Hedging Instruments Fair Value of Derivatives Not Designated as Hedging Instruments Total Fair Value Derivative assets (1) Foreign currency contracts $ — $ 1 $ 1 Derivative liabilities (2) Cross currency swaps $ 75 $ — $ 75 _______________________ (1) Derivative assets are recorded to Prepaid expenses and other current assets on the Consolidated Balance Sheets. (2) Derivative liabilities are recorded to Other current liabilities and Other liabilities on 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 (Loss) Income and Comprehensive Loss for the years ended December 31, 2023 and 2022: (DOLLARS IN MILLIONS) Amount of Gain (Loss) Location of Gain (Loss) 2023 2022 Foreign currency contracts (1) $ (11) $ 7 Other expense (income), net Commodity contracts 2 — Cost of goods sold Total $ (9) $ 7 _______________________ (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 instruments designated as net investment hedging instruments, net of tax, in the Consolidated Statements of (Loss) Income and Comprehensive Loss for the years ended December 31, 2023 and 2022: Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) Reclassified from AOCI For the years ended For the years ended (DOLLARS IN MILLIONS) 2023 2022 2023 2022 Derivatives in Net Investment Hedging Relationships: Cross currency swaps $ (67) $ (16) N/A $ — $ — Non-Derivatives in Net Investment Hedging Relationships: 2024 Euro Notes (16) 27 N/A — — 2026 Euro Notes (26) 43 N/A — — Total $ (109) $ 54 $ — $ — The ineffective portion of the above noted net investment hedges was approximately $15 million and $10 million for the years ended December 31, 2023 and 2022, respectively, and was recorded as a reduction to interest expense on the Consolidated Statements of (Loss) Income and Comprehensive Loss. At December 31, 2023, 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) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income Loss | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss): (DOLLARS IN MILLIONS) Foreign Gains (Losses) on Derivatives Pension and Total Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2022 $ (2,066) $ 1 $ (133) $ (2,198) OCI before reclassifications 367 — (100) 267 Reclassifications due to business divestitures 47 — (1) 46 Amounts reclassified from AOCI — — (11) (11) Net current period other comprehensive income (loss) 414 — (112) 302 Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2023 $ (1,652) $ 1 $ (245) $ (1,896) (DOLLARS IN MILLIONS) Foreign Gains (Losses) on Derivatives 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 (933) — 148 (785) Amounts reclassified from AOCI — — 10 10 Net current period other comprehensive income (loss) (933) — 158 (775) Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2022 $ (2,066) $ 1 $ (133) $ (2,198) (DOLLARS IN MILLIONS) Foreign Gains (Losses) on Derivatives Pension and Total Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2020 $ (285) $ (7) $ (406) $ (698) OCI before reclassifications (848) 1 97 (750) Amounts reclassified from AOCI — 7 18 25 Net current period other comprehensive income (loss) (848) 8 115 (725) Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2021 $ (1,133) $ 1 $ (291) $ (1,423) The following table provides details about reclassifications out of Accumulated other comprehensive loss to the Consolidated Statements of (Loss) Income and Comprehensive Loss: Year Ended December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Affected Line Item in the Consolidated Statements of (Loss) Income and Comprehensive Loss Gains (losses) on derivatives qualifying as hedges Foreign currency contracts $ — $ — $ (7) Cost of goods sold Interest rate swaps — — (1) Interest expense Tax — — 1 Provision for income taxes Total $ — $ — $ (7) Total, net of income taxes Gains (losses) on pension and postretirement liability adjustments Prior service cost $ 6 $ 7 $ 7 (1) Actuarial gains (losses) 8 (21) (38) (1) Other items — — 17 (2) Tax (3) 4 (4) Provision for income taxes Total $ 11 $ (10) $ (18) 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. See Note 15 for additional information regarding net periodic benefit cost. (2) Represents certain amounts of pension income that were corrected in 2021. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | CONCENTRATIONS OF CREDIT RISK The Company does not have significant concentrations of risk in financial instruments. Temporary investments are made in a well-diversified portfolio of high-quality, liquid obligations of government, corporate and financial institutions. There are also limited concentrations of credit risk with respect to trade receivables because the Company has a large number of customers who are spread across many industries and geographic regions. The Company’s larger customers are each spread across many sub-categories of its segments and geographical regions. The Company had no customer that accounted for more than 10% of its consolidated net sales for the years ended 2023, 2022 and 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
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. As of December 31, 2023, the Company had a total capacity of approximately $229 million of bank guarantees, commercial guarantees, standby letters of credit and surety bonds with various financial institutions. Included in the above aggregate amount was a total of approximately $11 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 $61 million outstanding under the bank guarantees, standby letters of credit and commercial guarantees as of December 31, 2023. 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 December 31, 2023. Lines of Credit The Company has various lines of credit which are available to support its ongoing business operations. As of December 31, 2023, the Company had a total capacity of approximately $1.848 billion of lines of credit with various financial institutions, in addition to the $1.548 billion of capacity under the Revolving Credit Facility. Pursuant to these lines of credit as of December 31, 2023, the total drawdowns were not material. 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 then 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. On September 30, 2022, the Second Circuit affirmed the dismissal of Plaintiffs’ claims. On October 14, 2022, Plaintiffs filed a Petition for Rehearing En Banc, which the Second Circuit denied on January 4, 2023. Plaintiffs did not seek review in the United States Supreme Court. The matter is therefore fully resolved in defendants’ favor. 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 former 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, April 7, 2022 and July 10, 2022, the U.S. lead plaintiffs filed update notices with the Israeli court regarding the appeal in the U.S. proceeding. On June 12, 2023, the petitioner filed a withdrawal motion, which the court then granted. The Borg case is now dismissed. The other motion (“Oman”) (following an initial amendment) asserted claims under the Israeli Securities Act-1968 against IFF, its former 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 July 14, 2022, the court approved the parties’ motion to mediate the dispute, which postpones all case deadlines until after the mediation. In addition, a request to appeal the court’s denial of the motion to dismiss filed by the former Frutarom officers and certain former Frutarom directors has been stayed. The parties held mediation meetings on September 13, 2022, November 22, 2022, March 1, 2023 and November 2023. 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. Responses to the class action motion were filed in May 2022, and applicant’s response was filed in December 2022. An evidentiary hearing is set for March 2024. Since March 2023, various putative class action lawsuits have been filed against IFF, Firmenich International SA, Givaudan SA, and Symrise AG and/or certain affiliates thereof in the Quebec Superior Court, the Federal Court of Canada, Ontario Superior Court, Supreme Court of British Columbia and, in several cases, the United States District Court for the District of New Jersey. These actions allege violations of the Canadian Competition Act and the Sherman Act, as applicable, and other related claims, and seek damages and other relief. IFF may face additional civil suits, in the United States or elsewhere, relating to such alleged conduct. At this time, IFF is unable to predict the potential outcome of these lawsuits or any potential effect they may have on the Company’s results of operations, liquidity or financial condition. 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. On February 26, 2024, the Israeli authorities informed Frutarom that the authorities decided to close the criminal investigation. On March 7, 2023, the European Commission (“EC”) and the United Kingdom Competition and Markets Authority (“CMA”) carried out unannounced inspections of certain of IFF’s facilities. On the same day, IFF was served with a grand jury subpoena by the Antitrust Division of the U.S. Department of Justice (“DOJ”). IFF understands the EC, CMA, DOJ and the Swiss Competition Commission are investigating potential anticompetitive conduct as it relates to IFF’s fragrance businesses. IFF has been and intends to continue cooperating with these investigations. IFF is unable, however, to predict or determine at this time the duration or outcome of the investigations, or whether the outcome of the investigations will materially impact the Company’s results of operations, liquidity or financial condition. China Facilities 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. The Company received payments totaling $30 million through the end of 2019. Production at the facility ceased during 2019. In the second quarter of 2020, the Company transferred ownership of the site to the government and the remaining net book value of the plant was written off. In the third quarter of 2020, the Company received a payment of approximately $13 million. The land remediation activities were completed in November 2022 and the final land restoration activities to restore the land to its original height, per the government’s request, were completed in April 2023. Upon completion of these activities, the land was returned to the government in April 2023 and a final payment of approximately $5 million was received in June 2023. During the second quarter of 2023, the Company recognized a pre-tax gain of approximately $22 million related to this transaction presented in Other expense (income), net on the Consolidated Statements of (Loss) Income and Comprehensive Loss. The Company also recognized approximately $6 million of income taxes presented in Provision for income taxes on the Consolidated Statements of (Loss) Income and Comprehensive Loss. The calculation of the applicable income taxes related to this transaction was sent to the local tax authorities for review and final approval was received in the fourth quarter of 2023. Products previously manufactured at the Zhejiang Ingredients plant are now being produced at the Company’s Ingredients plant in Jiande, China. Total China Operations The total net book value of all plants in China was approximately $215 million as of December 31, 2023. 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. Environmental Proceedings The Company is reporting the following environmental matter in compliance with SEC requirements to disclose environmental proceedings where a governmental authority is a party and that involve potential monetary sanctions of $300,000 or greater. On May 27, 2022, the Solae, LLC Memphis site (“Solae”) was served an Administrative Order and Assessment (the “Order”) by the City of Memphis related to alleged wastewater discharge violations. Solae submitted an appeal of the Order on June 24, 2022. Discussions with the City regarding potential resolution of the violations and penalties related to said violations are ongoing. Additionally, the Solae facility has undertaken capital project efforts, some of which began prior to the issuance of the Order, that are anticipated to address, on a schedule consistent with the Order, deadlines for attaining compliance with current wastewater permit requirements. This matter is not expected to have a material adverse effect on the Company’s financial position, cash flows or results of operations. 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 approximately $19 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 2017, the Brazilian Supreme Court (“BSC”) ruled that Brazilian tax authorities should not include a value added tax known as “ICMS” in the calculation of certain indirect taxes (“PIS/COFINS”). By removing the ICMS from the calculation of the indirect tax base, the Court effectively eliminated a “tax on tax.” The Brazilian tax authorities filed an appeal seeking clarification of certain matters, including the amount of ICMS to which taxpayers would be entitled in order to reduce their indirect tax base (i.e. the gross rate or the net rate). In light of the BSC’s decision, in November 2017, the Company filed suit consistent with the BSC decision to require that ICMS be excluded from the PIS/COFINS calculation and received a favorable preliminary decision that was confirmed by the BSC in September 2018. This preliminary ruling granted the Company the right to prospectively exclude ICMS amounts from the PIS/COFINS calculation, but left open the issue of whether the Company could recover the gross or net amount of ICMS amounts paid on PIS/COFINS for the period from November 2011 to December 2018. 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 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 BSC 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. In addition to the $8 million recognized in the fourth quarter of 2019, during the first quarter of 2020 the Company recognized $4 million as an additional recovery on the existing claim. During 2020, the Company also recognized $3 million related to a claim from another of its subsidiaries in Brazil. The income was recognized as a reduction in Selling and administrative expenses. In February 2023, the BSC made an unfavorable court resolution for the Company related to the use of the gross method, which was only granted to claims submitted prior to March 2017. As a result of this unfavorable court resolution, the Company wrote off its remaining receivables of approximately $6 million related to this matter during the first quarter of 2023. 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 the OOS conductivity 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 December 31, 2023, payments associated with this matter were approximately $46 million, and the Company no longer had an accrual related to this matter. The total amount of exposure may increase if 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 $75 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 | 12 Months Ended |
Dec. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | REDEEMABLE NON-CONTROLLING INTERESTS Through certain subsidiaries of the Company’s Frutarom acquisition, there were certain non-controlling interests that carried redemption features. The non-controlling interest holders had the right, over a stipulated period of time, to sell their respective interests to Frutarom, and Frutarom had the option to purchase these interests (subject to the same timing). In most cases, these options carried similar price and conditions of exercise, and were 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 non-controlling interests: (DOLLARS IN MILLIONS) Redeemable Balance at December 31, 2020 $ 98 Impact of foreign exchange translation 1 Share of profit or loss attributable to redeemable non-controlling interests 6 Redemption value adjustment for the current period 2 Dividends paid (2) Balance at December 31, 2021 $ 105 Impact of foreign exchange translation (6) Share of profit or loss attributable to redeemable non-controlling interests 4 Redemption value adjustment for the current period 5 Exercises of redeemable non-controlling interests (49) Balance at December 31, 2022 $ 59 Impact of foreign exchange translation (8) Redemption value adjustment for the current period (2) Dividends paid (13) Exercises of redeemable non-controlling interests (25) Disposal of redeemable non-controlling interests (1) (11) Balance at December 31, 2023 $ — _______________________ (1) The disposal of redeemable non-controlling interests was related to the sale of the Company’s investment in the Sonarome business. The total proceeds received from the sale transaction was approximately $29 million. |
Assets and Liabilities Held For
Assets and Liabilities Held For Sale | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held For Sale | BUSINESS DIVESTITURES Divestiture of the Flavor Specialty Ingredients Business During the fourth quarter of 2022, the Company announced it had entered into an agreement to sell its Flavor Specialty Ingredients (“FSI”) business, which was a part of the Scent segment. The Company completed the divestiture on August 1, 2023 and received cash proceeds of approximately $205 million, which included $1 million related to the delayed transfer of the control of specific assets and liabilities of non-U.S. jurisdiction business. In addition, approximately $15 million of proceeds were held in escrow and have been released upon satisfaction of certain conditions. Concurrent with the completion of the business divestiture, the Company entered into a supply agreement arrangement with the buyer. Based on the terms of the supply agreement, an adjustment of $4 million was made against the fair value of sale consideration. The sale consideration is subject to certain post-closing adjustments, which is primarily related to cash, indebtedness and working capital balances. The following table summarizes the fair value of sale consideration received in connection with the business divestiture: (DOLLARS IN MILLIONS) Cash proceeds from the buyer $ 205 Advance receipt for business to be transferred (1) Direct costs to sell (5) Proceeds attributable to supply agreement (4) Fair value of sale consideration $ 195 The net proceeds received from the business divestiture presented under Cash flows from investing activities represent the cash portion of the sale consideration, which was determined as the fair value of sale consideration adjusted by the direct costs to sell, advance receipt for business to be transferred and the cash transferred to the buyer as part of the transaction. The following table summarizes the different components of net proceeds received from business divestiture presented under Cash flows from investing activities: (DOLLARS IN MILLIONS) Fair value of sale consideration $ 195 Direct costs to sell 5 Advance receipt for business to be transferred 1 Cash transferred to the buyer (1) Net proceeds received from business divestiture $ 200 The carrying amount of net assets associated with the business unit, adjusted for currency translation adjustment, was approximately $205 million. The major classes of assets and liabilities sold consisted of the following: (DOLLARS IN MILLIONS) August 1, 2023 Assets Cash and cash equivalents $ 1 Trade receivables, net 13 Inventories 45 Property, plant and equipment, net 29 Goodwill 44 Other intangible assets, net 73 Other assets 10 Total assets 215 Liabilities Accounts payable (4) Deferred tax liability (1) Other liabilities (6) Total liabilities (11) Equity Accumulated other comprehensive income - currency translation adjustment 1 Total equity 1 Carrying value of net assets (adjusted for currency translation adjustment) $ 205 As a result of the business divestiture, the Company recognized a pre-tax loss of approximately $10 million, subject to certain post-closing adjustments, presented in Other expense (income), net on the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2023. The Company has also recognized income tax effects associated with the business divestiture across multiple periods. The total income tax expense recognized was approximately $21 million, with approximately $3 million that was recognized during the year ended December 31, 2022. Divestiture of a Portion of the Savory Solutions Business During the fourth quarter of 2022, the Company announced it had entered into an agreement to sell a portion of its Savory Solutions business, which was part of the Nourish segment. The Company completed the divestiture on May 31, 2023 and received cash proceeds of approximately $840 million. In addition, a receivable of approximately $37 million was recorded, which reflected the remaining sale consideration that was received in January 2024. The following table summarizes the fair value of sale consideration received in connection with the business divestiture: (DOLLARS IN MILLIONS) Cash proceeds from the buyer $ 840 Receivable from the buyer 37 Direct costs to sell (20) Fair value of sale consideration $ 857 The net proceeds received from the business divestiture presented under Cash flows from investing activities represent the cash portion of the sale consideration, which was determined as the fair value of sale consideration adjusted by the amount receivable from the buyer, direct costs to sell and the cash transferred to the buyer as part of the transaction. The following table summarizes the different components of net proceeds received from business divestiture presented under Cash flows from investing activities: (DOLLARS IN MILLIONS) Fair value of sale consideration $ 857 Direct costs to sell 20 Receivable from the buyer (37) Cash transferred to the buyer (including restricted cash) (19) Net proceeds received from business divestiture $ 821 The carrying amount of net assets associated with the business unit, adjusted for currency translation and pension adjustments, was approximately $860 million. The major classes of assets and liabilities sold consisted of the following: (DOLLARS IN MILLIONS) May 31, 2023 Assets Cash and cash equivalents $ 15 Restricted cash 4 Trade receivables, net 69 Inventories 116 Property, plant and equipment, net 77 Goodwill 317 Other intangible assets, net 367 Right-of-use assets 20 Other assets 24 Total assets 1,009 Liabilities Accounts payable (44) Deferred tax liability (92) Other liabilities (54) Total liabilities (190) Equity Accumulated other comprehensive income - currency translation adjustment 42 Accumulated other comprehensive income - pension liability and postretirement (1) Total equity 41 Carrying value of net assets (adjusted for currency translation and pension adjustments) $ 860 As a result of the business divestiture, the Company recognized a pre-tax loss of approximately $3 million presented in Other expense (income), net on the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2023. The Company has also recognized income tax effects associated with the business divestiture across multiple periods. The total income tax expense recognized was approximately $108 million, with approximately $72 million that was recognized during the year ended December 31, 2022. Liquidation of a Business in Russia As part of the liquidation of a business in Russia for the sale of the portion of the Savory Solutions business, the Company recognized a pre-tax loss of approximately $10 million presented in the Other expense (income), net, and tax benefits of approximately $2 million presented in Provision for income taxes on the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2023. Divestiture of 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 was 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 completed the divestiture on July 1, 2022 and received cash proceeds of approximately $1.254 billion, of which approximately $36 million was attributable to future services to be provided under certain transition service agreements as described below. Certain transaction costs related to the divestiture of approximately $11 million, which was contingent upon the consummation of the divestiture, were determined to be direct costs to sell and, as such, were adjusted against the fair value of the sale consideration. In addition, approximately $15 million of cash proceeds held in escrow were released to the Company upon satisfaction of certain conditions. The sale consideration was further reduced by approximately $3 million for certain post-closing adjustments, which were primarily related to cash, indebtedness and working capital balances. The Company entered into transition services agreements with the buyer for providing certain general accounting, information technology and other services up to 19 months following the date of the sale for minimal consideration. The fair value of these transition services agreements was determined to be approximately $36 million, which was adjusted against the sale consideration and recognized as deferred transition services income. For the years ended December 31, 2023 and 2022, the transition services income under the transition services agreements were approximately $25 million and $11 million, respectively, and was recognized as a reduction to the costs incurred to provide services under the transition services agreements, which was included in Selling and administrative expenses on the Consolidated Statements of (Loss) Income and Comprehensive Loss. The following table summarizes the fair value of the sale consideration received in connection with the business divestiture: (DOLLARS IN MILLIONS) Cash proceeds from the buyer $ 1,254 Escrow proceeds 15 Proceeds attributable to transition service agreements (36) Direct costs to sell (11) Net cash settlement for post-closing adjustments (3) Fair value of sale consideration $ 1,219 The net proceeds received from business divestiture presented under Cash flows from investing activities represent the cash portion of the sale consideration, which was determined as the fair value of sale consideration reduced by the amount held in escrow and the Cash transferred to the buyer on the closing balance sheet as part of the transaction. The following table summarizes the different components of net proceeds received from business divestiture presented under Cash flows from investing activities: (DOLLARS IN MILLIONS) Fair value of sale consideration $ 1,219 Cash transferred to the buyer on the closing balance sheet (49) Employee reimbursement receivable (1) Net proceeds received from business divestiture $ 1,169 The carrying amount of net assets associated with the Microbial Control business unit was approximately $1.208 billion. The major classes of assets and liabilities sold consisted of the following: (DOLLARS IN MILLIONS) June 30, 2022 Assets Current assets $ 263 Goodwill and other intangible assets, net 867 Equity method investment 74 Other assets 80 Total assets 1,284 Liabilities Accounts payable 41 Other liabilities 35 Total liabilities 76 Carrying value of net assets $ 1,208 As a result of the business divestiture, the Company recognized a pre-tax gain of approximately $11 million presented in Other expense (income), net on the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2022. The Company also recognized the income tax expense associated with the divestiture of approximately $96 million during the year ended December 31, 2022. During the third quarter of 2023, the Company announced the sale process of its Cosmetic Ingredients business within the Scent segment, and in the fourth quarter of 2023, the Company entered into an agreement to sell its Cosmetic Ingredients business. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2024. The planned sale does not constitute a strategic shift of the Company’s operations and does not have major effects on the Company’s operations and financial results. Therefore, the transaction does not meet the discontinued operations criteria. The Company determined that the assets and liabilities of the business met the criteria to be presented as “held for sale.” As a result, as of December 31, 2023, such assets and liabilities were classified as held for sale and are reported on the Consolidated Balance Sheets. The Company expects that the sale proceeds less costs to sell will exceed the preliminary estimate of the carrying value of the net assets for the business. The carrying value is subject to change based on developments leading up to the closing date. Included in the Company’s Consolidated Balance Sheets as of December 31, 2023 and 2022 are the following carrying amounts of the assets and liabilities held for sale: (DOLLARS IN MILLIONS) December 31, 2023 December 31, 2022 (2) Assets Cash and cash equivalents $ 26 $ 52 Trade receivables, net 15 85 Inventories 18 157 Property, plant and equipment, net 7 92 Goodwill 276 348 Other intangible assets, net 146 428 Operating lease right-of-use assets 9 13 Other assets 9 25 Total assets held-for-sale $ 506 $ 1,200 Liabilities Accounts payable $ 4 $ 56 Deferred tax liability (1) 24 92 Other liabilities 18 64 Total liabilities held-for-sale $ 46 $ 212 _______________________ (1) The Company is currently analyzing the tax impact of the sale of the Cosmetic Ingredients business and has included preliminary numbers for the deferred tax liability, which are subject to further updates. (2) The amounts for December 31, 2022 represent the carrying amounts of the portion of the Savory Solutions business and FSI business that were classified as held for sale. The Company completed the divestitures of the businesses on May 31, 2023 and August 1, 2023, respectively. See Note 4 for additional information. |
Other Income and Expenses
Other Income and Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other (Expense) Income, Net | OTHER (EXPENSE) INCOME, NET Other (expense) income, net consisted of the following: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Foreign exchange (losses) gains $ (77) $ (12) $ 3 Interest income 5 15 8 (Losses) gains on business divestitures (23) 11 13 Gain on China facility relocation 22 — — Pension-related benefit 28 19 34 Other 17 4 — Other (expense) income, net $ (28) $ 37 $ 58 |
Tangible Equity Units
Tangible Equity Units | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Dividends Cash dividends declared per share were $3.24, $3.20 and $3.12 for the years ended December 31, 2023, 2022 and 2021, respectively. The Consolidated Balance Sheets reflect $207 million of dividends payable at December 31, 2023. This amount relates to a cash dividend of $0.81 per share declared in December 2023 and paid in January 2024. Dividends declared, but not paid as of December 31, 2022 and December 31, 2021 were $206 million ($0.81 per share) and $201 million ($0.79 per share), respectively. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (IN MILLIONS) For the Year Ended December 31, 2023 Balance at Additions (deductions) charged to costs and expenses Acquisitions Accounts Translation Other Balance at end of period Allowance for doubtful accounts $ 53 $ 9 $ — $ (11) $ 1 $ — $ 52 Valuation allowance on credit and operating loss carryforwards and other net deferred tax assets 262 76 — — (23) 9 324 For the Year Ended December 31, 2022 Balance at Additions charged to costs and expenses Acquisitions Accounts Translation Other Balance at Allowance for doubtful accounts $ 46 $ 19 $ — $ — $ (12) $ — $ 53 Valuation allowance on credit and operating loss carryforwards and other net deferred tax assets 232 51 — — (21) — 262 For the Year Ended December 31, 2021 Balance at Additions charged to costs and expenses Acquisitions Accounts Translation Other (1) Balance at Allowance for doubtful accounts $ 21 $ 6 $ — $ (1) $ — $ 20 $ 46 Valuation allowance on credit and operating loss carryforwards and other net deferred tax assets 257 (18) 9 — (16) — 232 _______________________ (1) The amount relates to adjustment to allowances for bad debts as a result of purchase price allocation related to the Merger with N&B. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Dec. 31, 2023 | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the quarter ended December 31, 2023, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) (a “10b5-1 trading arrangement”) or any “non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K. | |
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. |
Basis of Accounting, Policy | Basis of Presentation On February 1, 2021 (the “Closing Date”), 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 periods ended December 31, 2023 and 2022 reflect the results of N&B for the full twelve months of 2023 and 2022, whereas the period ended December 31, 2021 only reflect the results of N&B from the Closing Date. |
Fiscal Year End | Fiscal Year End The Company uses a calendar year of the twelve-month period from January 1 to December 31. |
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 the Company’s judgments and estimates take into account ongoing global current events and adverse macroeconomic impacts on the critical and significant accounting estimates, including estimates associated with future cash flows that are used in assessing the risk of impairment of certain assets. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of International Flavors & Fragrances Inc. and those of its subsidiaries. Significant intercompany balances and transactions have been eliminated. To the extent a subsidiary is not wholly owned, any related non-controlling interests are included as a separate component of Shareholders’ Equity. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from contracts with customers when the contract or purchase order has received approval and commitment from both parties, has the rights of the parties and payment terms (which can vary by customer) identified, has commercial substance, collectability of consideration is probable, and control has transferred. The revenue recognized reflects the consideration the Company 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. Sales are reduced, at the time revenue is recognized, for applicable discounts, rebates and sales allowances based on historical experience. Related accruals are included in Other current liabilities in the accompanying Consolidated Balance Sheets. The Company considers shipping and handling activities undertaken after the customer has obtained control of the related goods as a fulfillment activity. Net sales include shipping and handling charges billed to customers. Cost of goods sold includes all costs incurred in connection with shipping and handling. |
Foreign Currency Translation | Foreign Currency Translation The Company translates the assets and liabilities of non-U.S. subsidiaries into U.S. dollars at year-end exchange rates. Income and expense items are translated at average exchange rates during the year. Cumulative translation adjustments are shown as a separate component of Shareholders’ Equity. |
Research and Development | Research and Development Research and development (“R&D”) expenses relate to the development of new and improved products, technical product support and compliance with governmental regulation. All research and development costs are expensed as incurred. |
Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments with maturities of three months or less at date of purchase. |
Restricted Cash | Restricted Cash Restricted cash is comprised of cash or cash equivalents which has been placed into an account that is restricted for a specific use and from which the Company cannot withdraw the cash on demand. |
Accounts Receivable | Accounts Receivable The Company has various factoring agreements globally under which it can factor up to approximately $300 million of its trade receivables (“Company’s own factoring agreements”). In addition, the Company utilizes factoring agreements sponsored by certain customers. Under all of the arrangements, the Company sells the trade receivables on a non-recourse basis to unrelated financial institutions and accounts for the transactions as sales of receivables. The applicable receivables are removed from the Company’s Consolidated Balance Sheets when the cash proceeds are received by the Company. The Company sold approximately $1.752 billion, $1.451 billion and $1.167 billion of receivables in 2023, 2022 and 2021, respectively, under the Company’s own factoring agreements and customer sponsored factoring agreements. The cost of participating in these programs was approximately $25 million, $12 million and $6 million, in 2023, 2022 and 2021, respectively, and is included as a component of interest expense. Under the Company’s own factoring agreements for which the Company has continued responsibility to collect receivables and provide to its sponsor, it sold approximately $843 million, $547 million and $197 million of receivables in 2023, 2022 and 2021, respectively. The outstanding principal amounts of receivables under the Company’s own factoring agreements amounted to approximately $196 million and $157 million as of December 31, 2023 and 2022, respectively. The proceeds from the sales of receivables are included in net cash from operating activities in the Consolidated Statements of Cash Flows. |
Expected Credit Loss | 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 of customer receivable balances, loss history and creditworthiness of debtors. The Company also considers current and anticipated future conditions of the general economy in the determination of allowances, including significant aspects of a geographic location and the industries in which the Company operates. The Company’s general allowance for credit losses is calculated using a loss rate model that is primarily based on historical write-off experiences and applied to trade receivables. As necessary, additional reserves are established based on other factors, such as aging of receivables, customer credit quality and account collectability and country risk. These allowances are reviewed and approved by the Regional and Global Credit committees. As of December 31, 2023, the Company reported $1.726 billion of trade receivables, net of allowances of $52 million. Based on the aging analysis as of December 31, 2023, approximately 1% of the Company’s accounts receivable were past due by over 365 days based on the payment terms of the invoice. |
Inventories | Inventories |
Leases | Leases The Company determines if an arrangement is a lease at contract inception. A lease exists when a contract conveys to the customer the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: (1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment), and (2) the customer has the right to control the use of the identified asset. When the Company determines the arrangement is a lease, or contains a lease, at inception, it then determines whether the lease is an operating lease or a finance lease at the commencement date. The Company leases property and equipment principally under operating leases and records a right-of-use asset and related obligation at the present value of lease payments. Over the term of the lease, the Company depreciates the right-of-use asset and accretes the related obligation to future value. Some of the leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. The Company has elected not to separate non-lease components from lease components for all classes of leased assets. When available, the Company uses the rate implicit in the lease to discount lease payments to present value, however, most of the Company’s leases do not provide a readily determinable implicit rate and the Company calculates the applicable incremental borrowing rate to discount the lease payments based on the term of the lease at lease commencement. The incremental borrowing rate is determined based on the Company’s credit rating, currency and lease terms. |
Property, Plant and Equipment | 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 40 years; machinery and equipment, 1 to 20 years; information technology hardware and software, 1 to 7 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. Interest incurred during the construction period of certain property, plant and equipment is capitalized until the underlying assets are placed in service, at which time straight-line amortization of the capitalized interest begins over the estimated useful lives of the related assets. Capitalized interest was approximately $17 million, $13 million and $9 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Finite-Lived Intangible Assets | 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 are 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. |
Goodwill | Goodwill Goodwill represents the difference between the total purchase price and the fair value of identifiable assets and liabilities acquired in business acquisitions. The Company tests goodwill for impairment at the reporting unit level as of November 30 every year or more frequently if events or changes in circumstances indicate the asset might be impaired. A reporting unit is an operating segment or one level below an operating segment (referred to as a component) to which goodwill is assigned when initially recorded. The Company identifies their reporting units by assessing whether the components of their reporting units constitute businesses for which discrete financial information is available and management of each reporting unit regularly reviews the operating results of those components. The Company determined that it has six reporting units under the Nourish, Health & Biosciences, Scent and Pharma Solutions segments: (1) Nourish, (2) Fragrance Compounds, (3) Fragrance Ingredients, (4) Cosmetic Ingredients, (5) Health & Biosciences and (6) Pharma Solutions. These reporting units were determined based on the level at which the performance is measured and reviewed by segment management. In cases where the components of an operating segment have similar economic characteristics, they are aggregated into a single reporting unit. When testing goodwill for impairment, the Company has the option of first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount. If the Company elects to bypass the qualitative assessment for any reporting units, or if a qualitative assessment indicates it is more likely than not that the estimated carrying value of a reporting unit exceeds its fair value, the Company performs a quantitative goodwill impairment test. Under the quantitative goodwill impairment test, if a reporting unit’s carrying amount exceeds its fair value, the Company will record an impairment charge based on that difference, and the impairment charge will be limited to the amount of goodwill allocated to that reporting unit. For the year ended December 31, 2023, the Company determined that the carrying value of the Nourish reporting unit exceeded its fair value and recorded an impairment charge of $2.623 billion in the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2023. During 2022, the Company determined that the carrying value of the Health & Biosciences reporting unit exceeded its fair value and recorded a goodwill impairment charge of $2.250 billion in the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2022. See Note 6 for additional information. |
Income Taxes | Income Taxes The Company accounts for taxes under the asset and liability method. Under this method, deferred income taxes are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities, based on enacted tax rates and other provisions of the tax law. The effect of a change in tax laws or rates on deferred tax assets and liabilities is recognized as income in the period in which such change is enacted. Future tax benefits are recognized to the extent that the realization of such benefits is more likely than not, and a valuation allowance is established for any portion of a deferred tax asset that management believes may not be realized. The Company recognizes uncertain tax positions that it has taken or expects to take on a tax return. Pursuant to accounting requirements, the Company first determines whether it is “more likely than not” its tax position will be sustained if the relevant tax authority were to audit the position with full knowledge of all the relevant facts and other information. For those tax positions that meet this threshold, the Company measures the amount of tax benefit based on the largest amount of tax benefit that it has a greater than 50% chance of realizing in a final settlement with the relevant authority. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard. The Company maintains a cumulative risk portfolio relating to all of its uncertainties in income taxes in order to perform this analysis, but the evaluation of its tax positions requires significant judgment and estimation in part because, in certain cases, tax law is subject to varied interpretation, and whether a tax position will ultimately be sustained may be uncertain. Interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. |
Retirement Benefits | Retirement Benefits Current service costs of retirement plans and postretirement health care and life insurance benefits are accrued. Prior service costs resulting from plan improvements are amortized over periods ranging from 10 to 20 years. |
Financial Instruments | Financial Instruments Derivative financial instruments are used to manage interest and foreign currency exposures. The gain or loss on the hedging instrument is recorded in earnings at the same time as the transaction being hedged is recorded in earnings. The associated asset or liability related to the open hedge instrument is recorded in Prepaid expenses and Other current assets or Other current liabilities, as applicable. The Company records all derivative financial instruments on the balance sheet at fair value. Changes in a derivative’s fair value are recognized in earnings unless specific hedge criteria are met. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in Net (loss) income. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in Accumulated other comprehensive income (loss) (“AOCI”) in the accompanying Consolidated Balance Sheets and are subsequently recognized in Net (loss) income when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges, if any, are recognized as a charge or credit to earnings. |
Software Costs | Software Costs The Company capitalizes direct internal and external development costs for certain significant projects associated with internal-use software and amortizes these costs over seven years. Neither preliminary evaluation costs nor costs associated with the software after implementation are capitalized. Costs related to projects that are not significant are expensed as incurred. |
Net Income (Loss) Per Share | Net (Loss) Income Per Share Under the two-class method, earnings are adjusted by accretion of amounts to redeemable non-controlling interests recorded at redemption value. The adjustments represent in-substance dividend distributions to the non-controlling interest holders as the holders have a contractual right to receive a specified amount upon redemption. As a result, earnings are adjusted to reflect this in-substance distribution that is different from other common shareholders. In addition, the Company has unvested share based payment awards with a right to receive nonforfeitable dividends and thus are considered participating securities which are required to be included in the computation of basic and diluted earnings per share. Basic (loss) income per share represents the amount of earnings available to each share of common stock outstanding during the period. Basic (loss) income per share includes the effect of issuing shares of common stock, where (i) for 2021, the prepaid stock purchase contracts (“SPCs”) were converted using the final settlement rate on September 14, 2021 (see Note 11 for additional information), and (ii) an adjustment to (loss) income to reflect adjustments made to record the redeemable value of redeemable non-controlling interests. Diluted (loss) income per share also includes the effect of issuing shares of common stock, assuming (i) stock options and warrants are exercised, (ii) restricted stock units are fully vested under the treasury stock method, and (iii) for 2021, the incremental effect of the prepaid SPCs were converted using the final settlement rate on September 14, 2021 (see Note 11 for additional information). |
Stock-Based Compensation | Stock-Based Compensation Compensation cost of all stock-based awards is measured at fair value on the date of grant and recognized over the service period for which awards are expected to vest. The cost of such stock-based awards is principally recognized on a straight-line attribution basis over their respective vesting periods, net of estimated forfeitures. |
Financing Costs | Financing Costs Costs incurred in the issuance of debt are deferred and amortized as part of interest expense over the stated life of the applicable debt instrument. Unamortized deferred financing costs relating to debt are presented as a reduction in the amount of debt outstanding on the Consolidated Balance Sheets. Unamortized deferred financing costs relating to the revolving credit facility are recorded in Other assets on the Consolidated Balance Sheets. |
Redeemable Non-controlling Interests | Redeemable Non-controlling Interests Non-controlling interests in subsidiaries that are redeemable for cash or other assets outside of the Company’s control are classified as mezzanine equity, outside of equity and liabilities, at the greater of the carrying value or the redemption value. The increases or decreases in the estimated redemption amount are recorded with corresponding adjustments against Capital in excess of par value and are reflected in the computation of earnings per share using the two-class method. As of December 31, 2023, the Company has acquired or sold all of its remaining redeemable non-controlling interests. See Note 20 for additional information. |
Held for Sale | Held for Sale Assets and liabilities to be disposed of by sale (“disposal groups”) are reclassified into assets and liabilities held for sale on the Company’s Consolidated Balance Sheets. The reclassification occurs when an agreement to sell exists, or management has committed to a plan to sell the assets within one year. Disposal groups are measured at the lower of carrying value or fair value less costs to sell and are not depreciated or amortized. When the net realizable value of a disposal group increases during a period, a gain can be recognized to the extent that it does not increase the value of the disposal group beyond its original carrying value when the disposal group was reclassified as held for sale. The fair value of a disposal group, less any costs to sell, is assessed each reporting period it remains classified as held for sale and any remeasurement to the lower of carrying value or fair value less costs to sell is reported as an adjustment to the carrying value of the disposal group. See Note 21 for additional information. |
Supply Chain Financing Program | Supply Chain Financing Program In the fourth quarter of 2023, the Company entered into a supply chain financing (“SCF”) program. The program is expected to be available to U.S. based suppliers starting in the second quarter of 2024. The Company makes continuous efforts to improve working capital efficiency and has worked with suppliers to optimize payment terms and conditions. The Company’s current payment terms with a majority of suppliers generally range from 0 to 180 days, which is deemed to be commercially reasonable. The Company’s voluntary SCF program will allow its suppliers to elect to sell the receivables owed to them by the Company to a third-party financial institution. The suppliers, at their own discretion, will determine the invoices they want to sell and directly negotiate the arrangements with the participating third-party financial institution. Supplier participation in the program is solely the decision of the supplier and has no bearing on the Company’s payment terms and amounts due with the supplier. The Company’s responsibility will be limited to making payments based upon the agreed upon contractual terms and arrangements. The Company will not provide any form of guarantees under the SCF program and will have no economic interest in the suppliers’ decision to participate in the SCF program. Amounts due to suppliers that elect to participate in the SCF program will be included in Accounts payable on the Consolidated Balance Sheets. The Company, or the third-party financial institution, may choose to terminate the agreement of the program at any time upon 30 days’ prior written notice. The third-party financial institution may also terminate the agreement of the program at any time upon three business days’ prior written notice in the event there are insufficient funds available for disbursements. As of December 31, 2023 and 2022, there were no amounts outstanding related to suppliers’ participation in the SCF program. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU was issued to further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact that this guidance will have on its Consolidated Financial Statements and income tax disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The ASU intends to improve reportable segment disclosure requirements, primarily through enhanced disclosures of significant segment expenses that are regularly provided to the Chief Operating Decision Maker and included within segment profit and loss. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact that this guidance will have on its Consolidated Financial Statements and reportable segment disclosures. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848.” The ASU was issued to provide an update on ASU 2020-04 and ASU 2021-01 that were issued in March 2020 and January 2021, respectively, which provided optional accounting guidance for a limited period of time to ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions to existing accounting requirements for contract modifications and hedge accounting related to transitioning from discontinued reference rates, such as London Interbank Offered Rate (“LIBOR”), to alternative reference rates, if certain criteria are met. With the issuance of ASU 2022-06, the sunset date of Topic 848 has been deferred from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The Company has adopted this guidance on January 1, 2023, which did not have a material impact on its Consolidated Financial Statements. On March 23, 2023, the Company amended certain existing debt agreements where the interest rate benchmark was updated from LIBOR to the Secured Overnight Financing Rate (“Term SOFR”). The Company applied Topic 848 to its recent amendments of its debt agreements. See Note 9 for additional information on the amendments to the debt agreements. In September 2022, the FASB issued ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” The ASU requires that a buyer in a supplier finance program disclose sufficient information about the program to allow users of the financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. The buyer should disclose qualitative and quantitative information about its supplier finance programs. The ASU requires the buyer’s annual disclosure to include a roll forward of the obligations under the supplier finance programs during the annual period, including the amount of obligations confirmed and subsequently paid. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll forward information, which is effective for fiscal years beginning after December 15, 2023, and early adoption is permitted. The Company has adopted this guidance on January 1, 2023, which did not have a material impact on its Consolidated Financial Statements. |
Unusual or Infrequent Items, or Both, Disclosure | The Israel-Hamas War The Company maintains operations in Israel and, additionally, exports products to customers in Israel from operations outside the region. The Company will continue to evaluate the current events and any potential impacts related to this matter, but does not expect there to be a material impact to its Consolidated Financial Statements. The Russia-Ukraine War 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. Allowances for Bad Debts As of December 31, 2023, the Company had a reserve of approximately $3 million related to expected credit losses on receivables from customers located in Russia and Ukraine. The Company will continue to evaluate its credit exposure related to Russia and Ukraine. Impairment of Long-Lived Assets During the second quarter of 2022, the sales and margins declined for certain entities within Russia due to supply chain issues, reduced product demand and exchange rate volatility. Further, it was determined that such declines in operating performance were not expected to reverse in the near future. Additionally, future growth was expected to be limited given operating conditions in Russia, which inhibit the required future investment. In connection with uncertainties related to the Company’s operations in Russia and Ukraine, the Company updated its analysis of the undiscounted cash flows of the applicable asset groups to determine if the cash flows exceeded the carrying values of the applicable asset groups. With respect to an asset group in the Nourish segment, that manufactures and sells in Russia and related markets, it was determined that the undiscounted cash flows were insufficient to cover the carrying value and that an impairment charge was required to write-down the long-lived assets to their fair values. The fair value of such asset group was determined based on a discounted cash flow approach which involved estimating the future cash flows for the business discounted to their present values. The discount rate used in the determination of such fair value was based on consideration of the risks inherent in the cash flows and market as of the valuation date. As a result of this assessment, the Company recognized an impairment charge of $120 million in the Consolidated Statements of (Loss) Income and Comprehensive Loss for the year ended December 31, 2022, which was allocated on a pro rata basis to intangible assets and property, plant and equipment within the asset group in the amounts of approximately $92 million and $28 million, respectively. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventory | The Company’s inventories consisted of the following: December 31, (DOLLARS IN MILLIONS) 2023 2022 Raw materials $ 779 $ 1,073 Work in process 406 442 Finished goods 1,292 1,636 Total $ 2,477 $ 3,151 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Company’s balance sheets as of December 31, 2023, 2022 and 2021 to the amounts reported on the Company’s statement of cash flows periods ended December 31, 2023, 2022 and 2021. (DOLLARS IN MILLIONS) December 31, 2023 December 31, 2022 December 31, 2021 Current assets Cash and cash equivalents $ 703 $ 483 $ 711 Cash and cash equivalents included in Assets held for sale 26 52 — Restricted cash 6 10 4 Non-current assets Restricted cash included in Other assets — 7 1 Cash, cash equivalents and restricted cash $ 735 $ 552 $ 716 |
Contract with Customer, Contract Asset, Contract Liability, and 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 December 31, 2023 and 2022, the Company’s gross accounts receivable was $1.778 billion and $1.871 billion, respectively. The Company’s contract assets and contract liabilities as of December 31, 2023 and 2022 were not material. |
Accounts Receivable, Allowance for Credit Loss | The following is a roll forward of the Company’s allowances for bad debts for the years ended December 31, 2022 and 2023: (DOLLARS IN MILLIONS) Allowance for Bad Debts Balance at December 31, 2021 $ 46 Bad debt expense (1) 19 Foreign exchange (12) Balance at December 31, 2022 53 Bad debt expense (2) 9 Write-offs (11) Foreign exchange 1 Balance at December 31, 2023 $ 52 _______________________ (1) Bad debt expense included approximately $11 million related to expected credit losses on receivables from customers located in Russia and Ukraine (for export and domestic sales) due to the events in those countries. (2) Bad debt expense included approximately $13 million related to expected credit losses on receivables from certain customers in Egypt, offset by approximately $8 million of reversals of allowances on receivables from customers located in Russia and Ukraine. The Company will continue to evaluate its credit exposure related to Egypt, Russia and Ukraine. |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Movements in Restructuring and Related Accruals | Changes in restructuring liabilities during 2021, 2022 and 2023 were as follows: (DOLLARS IN MILLIONS) Balance at January 1, 2021 Additional Charges (Reversals), Net Non-Cash Charges Cash Payments Balance at December 31, 2021 Frutarom Integration Initiative Severance $ 3 $ 5 $ — $ (3) $ 5 Fixed asset write down — 5 (5) — — Other (1) 3 — — — 3 2019 Severance Program Severance 6 — — (1) 5 Other Restructuring Charges Severance 2 — — (1) 1 Other (2) — 1 — (1) — N&B Merger Restructuring Liability Severance — 27 — (12) 15 Other (3) — 3 (3) — — Total Restructuring and other charges $ 14 $ 41 $ (8) $ (18) $ 29 (DOLLARS IN MILLIONS) Balance at January 1, 2022 Additional Charges (Reversals), Net Non-Cash Charges Cash Payments Balance at December 31, 2022 Frutarom Integration Initiative Severance $ 5 $ 1 $ — $ (2) $ 4 Fixed asset write down — 3 (3) — — Other (1) 3 (2) — (1) — 2019 Severance Program Severance 5 (5) — — — Other Restructuring Charges Severance 1 — — — 1 N&B Merger Restructuring Liability Severance 15 8 — (14) 9 Other (3) — 7 (2) (4) 1 Total Restructuring and other charges $ 29 $ 12 $ (5) $ (21) $ 15 (DOLLARS IN MILLIONS) Balance at January 1, 2023 Additional Charges (Reversals), Net Non-Cash Charges Cash Payments Balance at December 31, 2023 Frutarom Integration Initiative Severance $ 4 $ (3) $ — $ (1) $ — Other Restructuring Charges Severance 1 (1) — — — N&B Merger Restructuring Liability Severance 9 — — (9) — Other (3) 1 2 (2) (1) — 2023 Restructuring Program Severance — 70 — (56) 14 Total Restructuring and other charges $ 15 $ 68 $ (2) $ (67) $ 14 _______________________ (1) Includes supplier contract termination costs, consulting and advisory fees. (2) Includes charges related to legal settlement costs. (3) Includes lease impairment charges and losses incurred from restructuring activities related to the Merger with N&B. Charges by Segment The following table summarizes the total amount of costs incurred in connection with these restructuring programs and activities by segment: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Nourish $ 37 $ 8 $ 32 Health & Biosciences 13 2 5 Scent 15 1 3 Pharma Solutions 3 1 1 Total Restructuring and other charges $ 68 $ 12 $ 41 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the aggregate purchase price consideration paid to acquire N&B (in millions, except share and per share data): (DOLLARS IN MILLIONS) Fair value of common stock issued to DuPont stockholders (1) $ 15,929 Fair value attributable to pre-merger service for replacement equity awards (2) 25 Pension funding adjustment (3) (12) Total purchase consideration $ 15,942 _______________________ (1) The fair value of common stock issued to DuPont stockholders represents 141,740,461 shares of the Company's common stock determined based on the number of fully diluted shares of IFF common stock, immediately prior to the Closing Date, multiplied by the quotient of 55.4%/44.6% and IFF common stock closing share price of $112.38 on the New York Stock Exchange on the Closing Date. (2) At the time of the Transactions, each outstanding stock option, cash-settled stock appreciation right (“SAR”), restricted stock unit (“RSU”) award, and restricted stock award (“RSA”) with respect to DuPont common stock held by employees of N&B were canceled and converted into similar classes of equity awards of IFF’s Class A Common Stock. Further, each outstanding Performance Share Unit (“PSU”) award with respect to DuPont common stock held by employees of N&B were canceled and converted into IFF’s RSU awards. The conversion was based on the ratio of the volume-weighted average per share closing price of DuPont stock on the twenty trading days prior to the Closing Date and IFF’s stock on the twenty trading days following the Closing Date. The fair value of replacement equity-based awards attributable to pre-Merger service was recorded as part of the consideration transferred in the Merger (see Note 13 for additional information). (3) The Merger related agreements provided that if the net pension balance of N&B as of the Closing Date differs from $220 million, such differential amount would be settled in cash. The Company estimated the amount that it would receive and, accordingly, made an adjustment of $12 million to the total purchase consideration. |
Unaudited pro forma information | The unaudited pro forma results for the year ended December 31, 2021 were as follows: (DOLLARS IN MILLIONS) Year Ended December 31, 2021 Unaudited pro forma net sales $ 12,163 Unaudited pro forma net income attributable to the Company 687 |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | The following table summarizes the fair value of sale consideration received in connection with the business divestiture: (DOLLARS IN MILLIONS) Cash proceeds from the buyer $ 205 Advance receipt for business to be transferred (1) Direct costs to sell (5) Proceeds attributable to supply agreement (4) Fair value of sale consideration $ 195 (DOLLARS IN MILLIONS) Fair value of sale consideration $ 195 Direct costs to sell 5 Advance receipt for business to be transferred 1 Cash transferred to the buyer (1) Net proceeds received from business divestiture $ 200 (DOLLARS IN MILLIONS) August 1, 2023 Assets Cash and cash equivalents $ 1 Trade receivables, net 13 Inventories 45 Property, plant and equipment, net 29 Goodwill 44 Other intangible assets, net 73 Other assets 10 Total assets 215 Liabilities Accounts payable (4) Deferred tax liability (1) Other liabilities (6) Total liabilities (11) Equity Accumulated other comprehensive income - currency translation adjustment 1 Total equity 1 Carrying value of net assets (adjusted for currency translation adjustment) $ 205 The following table summarizes the fair value of sale consideration received in connection with the business divestiture: (DOLLARS IN MILLIONS) Cash proceeds from the buyer $ 840 Receivable from the buyer 37 Direct costs to sell (20) Fair value of sale consideration $ 857 (DOLLARS IN MILLIONS) Fair value of sale consideration $ 857 Direct costs to sell 20 Receivable from the buyer (37) Cash transferred to the buyer (including restricted cash) (19) Net proceeds received from business divestiture $ 821 (DOLLARS IN MILLIONS) May 31, 2023 Assets Cash and cash equivalents $ 15 Restricted cash 4 Trade receivables, net 69 Inventories 116 Property, plant and equipment, net 77 Goodwill 317 Other intangible assets, net 367 Right-of-use assets 20 Other assets 24 Total assets 1,009 Liabilities Accounts payable (44) Deferred tax liability (92) Other liabilities (54) Total liabilities (190) Equity Accumulated other comprehensive income - currency translation adjustment 42 Accumulated other comprehensive income - pension liability and postretirement (1) Total equity 41 Carrying value of net assets (adjusted for currency translation and pension adjustments) $ 860 The following table summarizes the fair value of the sale consideration received in connection with the business divestiture: (DOLLARS IN MILLIONS) Cash proceeds from the buyer $ 1,254 Escrow proceeds 15 Proceeds attributable to transition service agreements (36) Direct costs to sell (11) Net cash settlement for post-closing adjustments (3) Fair value of sale consideration $ 1,219 (DOLLARS IN MILLIONS) Fair value of sale consideration $ 1,219 Cash transferred to the buyer on the closing balance sheet (49) Employee reimbursement receivable (1) Net proceeds received from business divestiture $ 1,169 (DOLLARS IN MILLIONS) June 30, 2022 Assets Current assets $ 263 Goodwill and other intangible assets, net 867 Equity method investment 74 Other assets 80 Total assets 1,284 Liabilities Accounts payable 41 Other liabilities 35 Total liabilities 76 Carrying value of net assets $ 1,208 Included in the Company’s Consolidated Balance Sheets as of December 31, 2023 and 2022 are the following carrying amounts of the assets and liabilities held for sale: (DOLLARS IN MILLIONS) December 31, 2023 December 31, 2022 (2) Assets Cash and cash equivalents $ 26 $ 52 Trade receivables, net 15 85 Inventories 18 157 Property, plant and equipment, net 7 92 Goodwill 276 348 Other intangible assets, net 146 428 Operating lease right-of-use assets 9 13 Other assets 9 25 Total assets held-for-sale $ 506 $ 1,200 Liabilities Accounts payable $ 4 $ 56 Deferred tax liability (1) 24 92 Other liabilities 18 64 Total liabilities held-for-sale $ 46 $ 212 _______________________ (1) The Company is currently analyzing the tax impact of the sale of the Cosmetic Ingredients business and has included preliminary numbers for the deferred tax liability, which are subject to further updates. (2) The amounts for December 31, 2022 represent the carrying amounts of the portion of the Savory Solutions business and FSI business that were classified as held for sale. The Company completed the divestitures of the businesses on May 31, 2023 and August 1, 2023, respectively. See Note 4 for additional information. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consisted of the following amounts: (DOLLARS IN MILLIONS) December 31, 2023 2022 Land $ 195 $ 199 Buildings and improvements 1,822 1,697 Machinery and equipment 3,752 3,344 Information technology 473 291 Construction in process 400 649 Total Property, plant and equipment 6,642 6,180 Accumulated depreciation (2,402) (1,977) Total Property, plant and equipment, net $ 4,240 $ 4,203 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Operating Segment | Goodwill Movements in goodwill attributable to each reportable segment during the years ended December 31, 2022 and 2023 were as follows: (DOLLARS IN MILLIONS) Nourish Health & Biosciences Scent Pharma Solutions Total Balance at December 31, 2021 $ 6,559 $ 6,763 $ 1,828 $ 1,282 $ 16,432 Acquisitions (1) — 45 — — 45 Impairment — (2,250) — — (2,250) Transferred to assets held for sale (2) (306) — (42) — (348) Foreign exchange (199) (223) (41) (43) (506) Balance at December 31, 2022 6,054 4,335 1,745 1,239 13,373 Impairment (2,623) — — — (2,623) Transferred to assets held for sale (3) — — (267) — (267) Reduction from business divestiture (14) — — — (14) Foreign exchange 72 56 12 26 166 Balance at December 31, 2023 $ 3,489 $ 4,391 $ 1,490 $ 1,265 $ 10,635 _______________________ (1) Related to the acquisition of Health Wright. See Note 3 for additional information. (2) Related to the portion of the Savory Solutions business and FSI business that were classified as held for sale as of December 31, 2022. The Company completed the divestitures of the businesses on May 31, 2023 and August 1, 2023, respectively. See Note 4 and Note 21 for additional information. (3) Related to the Cosmetic Ingredients business that was classified as held for sale as of December 31, 2023. See Note 21 for additional information. |
Schedule of Other Intangible Assets | Other intangible assets, net consisted of the following amounts: December 31, (DOLLARS IN MILLIONS) 2023 2022 Asset Type Customer relationships $ 8,211 $ 8,318 Technological know-how 2,355 2,339 Trade names & patents 337 358 Other 44 47 Total carrying value 10,947 11,062 Accumulated Amortization Customer relationships (1,619) (1,252) Technological know-how (813) (589) Trade names & patents (117) (97) Other (41) (42) Total accumulated amortization (2,590) (1,980) Other intangible assets, net $ 8,357 $ 9,082 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense for the next five years, based on valuations and determinations of useful lives, is expected to be as follows: December 31, (DOLLARS IN MILLIONS) 2024 2025 2026 2027 2028 Estimated future intangible amortization expense $ 678 $ 676 $ 674 $ 577 $ 558 |
Other Assets And Liabilities,_2
Other Assets And Liabilities, Current and Noncurrent (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following amounts: December 31, (DOLLARS IN MILLIONS) 2023 2022 Finance lease right-of-use assets $ 26 $ 22 Deferred income taxes 278 167 Overfunded pension plans 139 180 Cash surrender value of life insurance contracts 49 45 Equity method investments 11 10 Other (1) 261 265 Total $ 764 $ 689 _______________________ (1) Includes land usage rights in China, long-term deposits and receivables on certain derivative instruments. |
Schedule of Other Current Assets | Prepaid expenses and other current assets consisted of the following amounts: December 31, (DOLLARS IN MILLIONS) 2023 2022 Value-added tax receivable $ 187 $ 212 Prepaid income taxes 178 129 Packaging materials and supplies 161 148 Prepaid expenses 184 144 Other 165 137 Total $ 875 $ 770 |
Other Current Liabilities | Other current liabilities consisted of the following amounts: December 31, (DOLLARS IN MILLIONS) 2023 2022 Rebates and incentives payable $ 105 $ 99 Value-added tax payable 77 65 Interest payable 65 55 Current pension and other postretirement benefit obligation 13 10 Accrued insurance (including workers’ compensation) 9 9 Earn outs payable 32 — Accrued restructuring 14 15 Current operating lease obligation 85 86 Accrued freight 14 18 Accrued commissions payable 10 11 Accrued income taxes 194 313 Accrued expenses payable 262 256 Other 97 91 Total $ 977 $ 1,028 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Instrument [Line Items] | |
Components of Debt | Debt consisted of the following at December 31: (DOLLARS IN MILLIONS) Effective Interest Rate 2023 2022 2023 Notes (1) 3.30 % $ — $ 300 2024 Euro Notes (1) 1.88 % 552 532 2025 Notes (1) 1.22 % 1,000 1,000 2026 Euro Notes (1) 1.93 % 879 845 2027 Notes (1) 1.56 % 1,212 1,215 2028 Notes (1) 4.57 % 398 398 2030 Notes (1) 2.21 % 1,508 1,510 2040 Notes (1) 3.04 % 773 774 2047 Notes (1) 4.44 % 495 495 2048 Notes (1) 5.12 % 787 787 2050 Notes (1) 3.21 % 1,569 1,571 2024 Term Loan Facility (2) 3.75 % 270 625 2026 Term Loan Facility (2) 5.83 % 625 625 Commercial Paper (3) — 187 Revolving Credit Facility (4) — 100 Bank overdrafts and other 3 6 Total debt $ 10,071 $ 10,970 Less: Short term borrowings (5) (885) (597) Total Long-term debt $ 9,186 $ 10,373 _______________________ (1) Amount is net of unamortized discount and debt issuance costs. (2) Amount is recorded at fair value. (3) The effective interest rate of commercial paper issuances fluctuate 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. (4) The interest rate on the Revolving Credit Facility is, at the applicable borrower’s option, a per annum rate equal to either (x) an eurocurrency rate plus an applicable margin varying from 1.125% to 1.750% or (y) a base rate plus an applicable margin varying from 0.125% to 0.750%, in each case depending on the public debt ratings for non-credit enhanced long-term senior unsecured debt issued by the Company. (5) Includes bank borrowings, overdrafts, current portion of long-term debt and commercial paper. |
Debt Instrument Redemption | The redemption dates of each of the Notes are provided in the below table: Note Redemption Date 2024 Euro Notes December 14, 2023 2026 Euro Notes June 25, 2026 2028 Notes June 26, 2028 2047 Notes December 1, 2046 2048 Notes March 26, 2048 |
Schedule of Maturities of Long-term Debt | The following table shows the contractual maturities of the Company’s long-term debt as of December 31, 2023. Payments Due by Period (DOLLARS IN MILLIONS) Total Less than 1 Year 1-3 Years 3-5 Years More than Total Outstanding Borrowings $ 9,980 $ 885 $ 2,445 $ 1,600 $ 5,050 |
Nutrition & Biosciences, Inc | |
Debt Instrument [Line Items] | |
Debt Instrument Redemption | The redemption dates of each of the N&B Senior Notes are provided in the table below: Note Redemption Date 2025 Notes September 1, 2025 2027 Notes August 15, 2027 2030 Notes August 1, 2030 2040 Notes May 15, 2040 2050 Notes June 1, 2050 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease Costs | The components of lease expense were as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Operating leases Operating lease cost $ 137 $ 134 $ 133 Variable lease cost 56 53 35 Total operating lease cost $ 193 $ 187 $ 168 Finance leases Finance lease cost $ 10 $ 8 $ 7 Supplemental cash flow information related to leases was as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 122 $ 135 $ 129 Operating cash flows for finance leases 1 — — Financing cash flows for finance leases 8 7 6 Right-of-use assets obtained in exchange for lease obligations Operating leases 49 174 88 Finance leases 22 7 15 Weighted average remaining lease term and discount rate were as follows: December 31, 2023 2022 Weighted average remaining lease term in years Operating leases 9.9 10.6 Finance leases 3.5 4.0 Weighted average discount rate Operating leases 4.24 % 3.83 % Finance leases 4.33 % 2.59 % |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 Operating Leases Operating lease right-of-use assets $ 689 $ 743 Current operating lease obligations (2) 85 86 Operating lease liabilities 642 672 Total operating lease liabilities $ 727 $ 758 Finance Leases Finance lease right-of-use assets (1) $ 26 $ 22 Current finance lease obligations (2) 7 5 Finance lease liabilities (3) 18 12 Total finance lease liabilities $ 25 $ 17 _______________________ (1) Presented in Other assets on the Consolidated Balance Sheets. (2) Presented in Other current liabilities on the Consolidated Balance Sheets. (3) Presented in Other liabilities on the Consolidated Balance Sheets. |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities as of December 31, 2023 were as follows: (DOLLARS IN MILLIONS) Operating Leases Finance Leases Total 2024 $ 113 $ 9 $ 122 2025 110 8 118 2026 101 7 108 2027 87 4 91 2028 77 — 77 Thereafter 410 — 410 Total undiscounted liabilities 898 28 926 Less: Imputed interest (171) (3) (174) Total lease liabilities $ 727 $ 25 $ 752 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Earnings before Income Taxes | Earnings before income taxes consisted of the following: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 U.S. loss before taxes $ (1,777) $ (1,918) $ (493) Foreign (loss) income before taxes (741) 293 847 Total (loss) income before taxes $ (2,518) $ (1,625) $ 354 |
Schedule of Income Tax Provision | The income tax provision consisted of the following: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Current tax provision Federal $ 55 $ 102 $ (5) State and local — 49 13 Foreign 359 325 303 Total current tax provision 414 476 311 Deferred tax provision Federal (113) (77) (121) State and local 32 (111) (34) Foreign (288) (49) (81) Total deferred tax benefit (369) (237) (236) Total provision for income taxes $ 45 $ 239 $ 75 |
Schedule of Reconciliation between U.S. Federal Statutory Income Tax Rate to Actual Effective Tax Rate | Reconciliation between the U.S. federal statutory income tax rate to the actual effective tax rate was as follows: December 31, 2023 2022 2021 Statutory tax rate 21.0 % 21.0 % 21.0 % Tax effect of non-deductible goodwill impairment (20.4) (29.1) — Difference in effective tax rate on foreign earnings and remittances (1) (0.2) — 8.0 Tax benefit from supply chain optimization 0.5 0.8 (5.8) Unrecognized tax benefit, net of reversals (0.8) 0.9 0.7 Tax impact on business divestitures (3.7) (5.9) 4.0 Deferred taxes on deemed repatriation (2) 0.5 (5.6) 2.7 Global intangible low-taxed income (0.4) (0.8) 4.1 Foreign-derived intangible income — 1.1 (1.6) U.S. foreign tax credit - general limitation 0.2 0.1 (3.1) Research and development credit 0.5 0.8 (1.4) Acquisition costs — — 2.4 Establishment (release) of valuation allowance on state deferred — — (3.0) State and local taxes including rate changes (3) (1.7) 4.3 (4.8) Tax impact on internal asset transfer 5.3 — — Other, net (2.6) (2.3) (2.0) Effective tax rate (1.8) % (14.7) % 21.2 % _______________________ (1) For 2021, the rate includes rate change impacts related to the Netherlands and United Kingdom. (2) For 2022 and 2023, the rate includes the establishment of the held for sale deferred tax liabilities due to a change in assertion. (3) For 2022 and 2023, the rate includes rate change impacts related to the remeasurement of the state tax rate on deferred taxes. |
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities consisted of the following amounts: December 31, (DOLLARS IN MILLIONS) 2023 2022 Employee and retiree benefits $ 118 $ 61 Credit and net operating loss carryforwards 332 315 Amortizable research and development expenses 125 84 Interest limitation 127 3 Inventory 35 19 Lease obligations 170 151 Other, net 114 131 Gross deferred tax assets 1,021 764 Property, plant and equipment, net (239) (229) Intangible assets (1) (1,792) (2,049) Right-of-use assets (170) (151) Loss on foreign currency translation — (23) Deferred taxes on deemed repatriation (155) (166) Gross deferred tax liabilities (2,356) (2,618) Valuation allowance (324) (262) Total net deferred tax liabilities $ (1,659) $ (2,116) |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Balance of unrecognized tax benefits at beginning of year $ 112 $ 130 $ 99 Gross amount of increases in unrecognized tax benefits as a result of positions taken during a prior year (1) 1 1 42 Gross amount of decreases in unrecognized tax benefits as a result of positions taken during a prior year — (18) (3) Gross amount of increases in unrecognized tax benefits as a result of positions taken during the current year 19 31 5 The amounts of decreases in unrecognized benefits relating to settlements with taxing authorities (3) (27) (1) Reduction in unrecognized tax benefits due to the lapse of applicable statute of limitation (6) (5) (12) Balance of unrecognized tax benefits at end of year $ 123 $ 112 $ 130 _______________________ (1) For 2021, the amount includes positions related to N&B opening balance sheet amounts. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares Used in Computations of Basic and Diluted Net Income Per Share | Basic and diluted net (loss) income per share is based on the weighted average number of shares outstanding. A reconciliation of shares used in the computation of basic and diluted net (loss) income per share is as follows: December 31, (AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS) 2023 2022 2021 Net (Loss) Income Net (loss) income attributable to IFF shareholders $ (2,567) $ (1,871) $ 270 Adjustment related to decrease (increase) in redemption value of redeemable non-controlling interests in excess of earnings allocated 2 3 (2) Net (loss) income available to IFF shareholders $ (2,565) $ (1,868) $ 268 Shares Weighted average common shares outstanding (basic) (1) 255 255 243 Weighted average shares assuming dilution (diluted) 255 255 243 Net (Loss) Income per Share Net (loss) income per share - basic (2) $ (10.05) $ (7.32) $ 1.11 Net (loss) income per share - diluted (3) (10.05) (7.32) 1.10 _______________________ (1) On September 15, 2021, additional shares of IFF’s common stock were issued in settlement of the SPC portion of the TEUs. See below for additional information. (2) For the years ended December 31, 2023, 2022 and 2021, the basic net (loss) income per share cannot be recalculated based on the information presented in the table above due to the effects of rounding. (3) For the years ended December 31, 2023 and 2022, the diluted net loss per share cannot be recalculated based on the information presented in the table above due to the effects of rounding. |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense Included in Consolidated Statement of Income and Comprehensive Income | Total stock-based compensation expense included in the Consolidated Statements of (Loss) Income and Comprehensive Loss was as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Equity-based awards $ 65 $ 49 $ 54 Liability-based awards 2 2 8 Total stock-based compensation 67 51 62 Less: Tax benefit (11) (8) (13) Total stock-based compensation, net of tax $ 56 $ 43 $ 49 |
SSAR's and Stock Option Activity | SSARs and options activity was as follows: (SHARE AMOUNTS IN THOUSANDS) Shares Subject to Weighted SSARs/ December 31, 2022 331 $ 115.35 182 Granted — — Exercised (8) 68.67 Canceled (8) 122.28 December 31, 2023 315 $ 116.26 194 Expected to Vest at December 31, 2023 118 $ 126.99 |
SSAR's and Stock Option Outstanding | SSARs and options outstanding at December 31, 2023 was as follows: Price Range Number Weighted Average Weighted Aggregate Over $65 315 4.71 $ 116.26 $ — SSARs and options exercisable as of December 31, 2023 was as follows: Price Range Number Weighted Average Weighted Aggregate Over $65 194 4.33 $ 109.59 $ — |
RSU Activity | RSU activity was as follows: (SHARE AMOUNTS IN THOUSANDS) Number of Shares Weighted Average December 31, 2022 937 $ 120.81 Granted 843 87.31 Vested (315) 119.15 Forfeited (78) 105.63 Change due to performance conditions, net (20) 134.04 December 31, 2023 1,367 $ 101.50 Cash RSU activity was as follows: (SHARE AMOUNTS IN THOUSANDS) Cash RSUs Weighted Average December 31, 2022 119 $ 104.84 Granted 19 80.97 Vested (40) 94.72 Forfeited (7) 82.24 December 31, 2023 91 $ 80.97 |
PRSU Activity | The following table summarizes the Company’s PRSU activity for the years ended December 31, 2023, 2022 and 2021: (DOLLARS IN MILLIONS) Issued Shares Aggregate Purchases Covered Shares 2023 — $ — — 2022 43,690 $ 6 21,845 2021 61,870 $ 9 30,935 PRSU activity was as follows: (SHARE AMOUNTS IN THOUSANDS) Number of Weighted Average December 31, 2022 90 $ 133.36 Granted — — Vested (26) 131.31 Forfeited (3) 138.98 December 31, 2023 61 $ 133.96 |
Cash RSU Activity | RSU activity was as follows: (SHARE AMOUNTS IN THOUSANDS) Number of Shares Weighted Average December 31, 2022 937 $ 120.81 Granted 843 87.31 Vested (315) 119.15 Forfeited (78) 105.63 Change due to performance conditions, net (20) 134.04 December 31, 2023 1,367 $ 101.50 Cash RSU activity was as follows: (SHARE AMOUNTS IN THOUSANDS) Cash RSUs Weighted Average December 31, 2022 119 $ 104.84 Granted 19 80.97 Vested (40) 94.72 Forfeited (7) 82.24 December 31, 2023 91 $ 80.97 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable segment information is as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Net sales Nourish $ 6,060 $ 6,829 $ 6,264 Health & Biosciences 2,081 2,339 2,329 Scent 2,393 2,301 2,254 Pharma Solutions 945 971 809 Consolidated $ 11,479 $ 12,440 $ 11,656 December 31, (DOLLARS IN MILLIONS) 2023 2022 Segment assets Nourish $ 12,893 $ 17,062 Health & Biosciences 10,666 10,924 Scent 4,274 4,309 Pharma Solutions 3,145 3,227 Consolidated $ 30,978 $ 35,522 December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Segment Adjusted Operating EBITDA: Nourish $ 732 $ 1,176 $ 1,172 Health & Biosciences 588 634 625 Scent 461 423 463 Pharma Solutions 199 222 165 Total 1,980 2,455 2,425 Depreciation & Amortization (1,142) (1,179) (1,156) Interest Expense (380) (336) (289) Other (Expense) Income, net (28) 37 58 Restructuring and Other Charges (a) (68) (12) (41) Impairment of Goodwill (b) (2,623) (2,250) — Impairment of Long-Lived Assets (c) — (120) — Acquisition, Divestiture and Integration Related Costs (d) (174) (201) (240) Strategic Initiatives Costs (e) (31) (8) — Regulatory Costs (f) (50) — — N&B Inventory Step-Up Costs (g) — — (368) Other (h) (2) (11) (35) (Loss) Income Before Taxes $ (2,518) $ (1,625) $ 354 _______________________ (a) Represents costs primarily related to severance as part of the Company's restructuring efforts. (b) For 2023, represents costs related to the impairment of goodwill in the Nourish reporting unit. For 2022, represents costs related to the impairment of goodwill in the Health & Biosciences reporting unit. (c) Represents costs related to the impairment of intangible and fixed assets of an asset group that operated primarily in Russia. (d) For 2023, 2022 and 2021, primarily represents costs related to the Company's actual and planned acquisitions and divestitures and integration related activities primarily for N&B. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts. For 2023, acquisition costs primarily relate to earn-out adjustments. For 2022, acquisition costs primarily relate to consulting fees, legal fees and earn-out adjustments. For 2021, acquisition costs primarily relate to legal and professional fees for the transaction with N&B. Tax expenses for business divestiture costs included establishments of deferred tax liabilities related to planned sales of businesses. For 2023, business divestiture, integration and acquisition related costs were approximately $108 million, $59 million and $7 million, respectively. For 2022, business divestiture, integration and acquisition related costs were approximately $110 million, $94 million and a credit of $3 million, respectively. For 2021, business divestiture, integration and acquisition related costs were approximately $42 million, $105 million and $93 million, respectively. (e) Represents costs related to the Company's strategic assessment and business portfolio optimization efforts and reorganizing the Global Shared Services Centers, primarily consulting fees. (f) Represents costs primarily related to legal fees incurred for the ongoing investigations of the fragrance businesses. (g) Represents costs related to fair value step-up of inventory for the acquired inventory through the Merger with N&B. (h) For 2023, represents gains from sale of assets and costs related to severance, including accelerated stock compensation expense, for a certain executive who will separate from the Company in 2024. For 2022 and 2021, represents gains from sale of assets, costs related to severance, including accelerated stock compensation expense, for certain employees and executives who have been separated from the Company in 2022 and 2021, respectively, and shareholder activist related costs, primarily professional fees. Segment capital expenditures and depreciation and amortization consisted as follows: Capital Expenditures Depreciation and Amortization (DOLLARS IN MILLIONS) 2023 2022 2021 2023 2022 2021 Nourish $ 252 $ 215 $ 183 $ 553 $ 596 $ 594 Health & Biosciences 85 160 139 374 363 353 Scent 62 56 41 78 81 84 Pharma Solutions 104 73 30 137 139 125 Consolidated $ 503 $ 504 $ 393 $ 1,142 $ 1,179 $ 1,156 |
Long-lived Assets by Geographic Areas | Long-lived assets, net, by country, consisted as follows: December 31, (DOLLARS IN MILLIONS) 2023 2022 United States $ 1,742 $ 1,771 China 228 258 Denmark 262 250 Finland 214 212 France 199 187 Germany 171 181 Other 1,424 1,344 Consolidated $ 4,240 $ 4,203 |
Net Sales by Geographic Area | Net sales are attributed to individual regions based upon the destination of product delivery and are as follows: Net Sales by Geographic Area (DOLLARS IN MILLIONS) 2023 2022 2021 Europe, Africa and Middle East $ 3,834 $ 4,219 $ 4,093 Greater Asia 2,677 2,876 2,728 North America 3,477 3,853 3,499 Latin America 1,491 1,492 1,336 Consolidated $ 11,479 $ 12,440 $ 11,656 Net Sales by Geographic Area (DOLLARS IN MILLIONS) 2023 2022 2021 Net sales related to the U.S. $ 3,185 $ 3,611 $ 3,211 Net sales attributed to all foreign countries 8,294 8,829 8,445 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Plan Assets and Benefit Obligations of Defined Benefit Pension Plans | The plan assets and benefit obligations of the defined benefit pension plans are measured at December 31 of each year. U.S. Plans Non-U.S. Plans (DOLLARS IN MILLIONS) 2023 2022 2021 2023 2022 2021 Components of net periodic benefit cost Service cost for benefits earned (1) $ — $ 1 $ 1 $ 21 $ 34 $ 41 Interest cost on projected benefit obligation (2) 25 15 71 36 17 10 Expected return on plan assets (2) (31) (21) (106) (47) (42) (55) Net amortization of deferrals (2) 2 8 29 (1) 11 19 Settlements and curtailments (2) — — — (8) — (10) Net periodic benefit (income) cost (4) 3 (5) 1 20 5 Defined contribution and other retirement plans 30 33 36 51 29 33 Total expense $ 26 $ 36 $ 31 $ 52 $ 49 $ 38 Changes in plan assets and benefit obligations recognized in OCI Net actuarial loss (gain) $ 27 $ — $ 70 $ (143) Recognized actuarial (loss) gain (1) (8) 9 (12) Recognized prior service credit — — 1 1 Currency translation adjustment — — 9 (27) Total loss (gain) recognized in OCI (before tax effects) $ 26 $ (8) $ 89 $ (181) _______________________ (1) Included as a component of Operating (loss) profit. (2) Included as a component of Other expense (income), net. |
Amounts Expected to be Recognized in Net Periodic Cost | Postretirement Benefits (DOLLARS IN MILLIONS) 2023 2022 2021 Components of net periodic benefit cost Service cost for benefits earned $ — $ 1 $ 1 Interest cost on projected benefit obligation 3 1 7 Net amortization and deferrals (6) (5) (20) Total credit $ (3) $ (3) $ (12) Changes in plan assets and benefit obligations recognized in OCI Net actuarial loss (gain) $ 3 $ (16) Recognized actuarial loss — (1) Recognized prior service credit 5 6 Total recognized in OCI (before tax effects) $ 8 $ (11) |
Weighted-Average Actuarial Assumption Used to Determine Expense | The weighted-average actuarial assumptions used to determine expense at December 31 of each year are: U.S. Plans Non-U.S. Plans 2023 2022 2021 2023 2022 2021 Discount rate 5.42 % 2.86 % 2.51 % 3.98 % 1.43 % 0.85 % Expected return on plan assets 6.00 % 3.80 % 3.80 % 4.92 % 3.52 % 4.21 % Rate of compensation increase 3.75 % 3.25 % 3.25 % 3.01 % 2.72 % 2.56 % |
Changes in Postretirement Benefit Obligation and Plan Assets | Changes in the postretirement benefit obligation and plan assets, as applicable, are detailed in the following table: U.S. Plans Non-U.S. Plans Postretirement Benefits (DOLLARS IN MILLIONS) 2023 2022 2023 2022 2023 2022 Benefit obligation at beginning of year $ 500 $ 662 $ 930 $ 1,501 $ 50 $ 66 Service cost for benefits earned — 1 21 34 — 1 Interest cost on projected benefit obligation 25 15 36 17 3 2 Actuarial (gain) loss 38 (139) 77 (468) 3 (16) Adjustments for expense/tax contained in service cost — — (2) (2) — — Plan participants’ contributions — — 4 4 — — Benefits paid (39) (38) (33) (32) (3) (2) Curtailments/settlements (1) — (21) (21) — — Translation adjustments — — 45 (104) — — Other 1 (1) (1) 1 (1) (1) Benefit obligation at end of year $ 524 $ 500 $ 1,056 $ 930 $ 52 $ 50 Fair value of plan assets at beginning of year $ 498 $ 649 $ 920 $ 1,320 Actual return on plan assets 41 (118) 50 (286) Employer contributions 5 5 31 31 Participants’ contributions — — 4 4 Benefits paid (39) (38) (33) (32) Settlements — — (21) (21) Translation adjustments — — 44 (96) Other — — 5 — Fair value of plan assets at end of year $ 505 $ 498 $ 1,000 $ 920 Funded status at end of year $ (19) $ (2) $ (56) $ (10) |
Amounts Recognized in Balance Sheet | The amounts recognized in the balance sheet are detailed in the following table: U.S. Plans Non-U.S. Plans (DOLLARS IN MILLIONS) 2023 2022 2023 2022 Other assets $ 30 $ 51 $ 109 $ 129 Other current liabilities (5) (6) (4) (1) Retirement liabilities (44) (47) (161) (138) Net amount recognized $ (19) $ (2) $ (56) $ (10) |
Amounts Recognized in Accumulated Other Comprehensive Income | The amounts recognized in AOCI are detailed in the following table: U.S. Plans Non-U.S. Plans Postretirement Benefits (DOLLARS IN MILLIONS) 2023 2022 2023 2022 2023 2022 Net actuarial (gain) loss $ 155 $ 129 $ 198 $ 110 $ — $ (3) Prior service cost (credit) — — (2) (3) (4) (9) Total AOCI (before tax effects) $ 155 $ 129 $ 196 $ 107 $ (4) $ (12) |
Accumulated Benefit Obligation | U.S. Plans Non-U.S. Plans (DOLLARS IN MILLIONS) 2023 2022 2023 2022 Accumulated Benefit Obligation — end of year $ 520 $ 495 $ 988 $ 870 Information for Pension Plans with an Accumulated Benefit Obligation (“ABO”) in excess of Plan Assets: Accumulated benefit obligation $ 47 $ 49 $ 165 $ 150 Fair value of plan assets — — 36 41 Information for Pension Plans with a Projected Benefit Obligation (“PBO”) in excess of Plan Assets: Projected benefit obligation $ 47 $ 49 $ 185 $ 169 Fair value of plan assets — — 41 45 Weighted-average assumptions used to determine obligations at December 31 Discount rate 4.47 % 5.42 % 3.59 % 4.02 % Rate of compensation increase 3.75 % 3.75 % 2.83 % 3.00 % |
Estimated Future Benefit Payments | (DOLLARS IN MILLIONS) U.S. Plans Non-U.S. Plans Postretirement Estimated Future Benefit Payments 2024 $ 99 $ 39 $ 4 2025 38 36 4 2026 38 41 4 2027 37 40 4 2028 36 45 4 2029 - 2033 166 239 18 Contributions Required Company Contributions in the Following Year (2024) $ 5 $ 20 $ — |
Percentage of Assets Invested | The percentage of assets in the Company’s pension plans, by type, is as follows: U.S. Plans Non-U.S. Plans 2023 2022 2023 2022 Cash and cash equivalents 1 % 2 % 3 % 3 % Equities 13 % 47 % 16 % 18 % Fixed income 86 % 51 % 42 % 37 % Property — % — % 8 % 9 % Alternative and other investments — % — % 31 % 33 % |
Fair Value Hierarchy of Plan Assets | The following tables present the Company’s plan assets for the U.S. and non-U.S. plans using the fair value hierarchy as of December 31, 2023 and 2022. The plans’ assets were accounted for at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and their placement within the fair value hierarchy levels. For more information on a description of the fair value hierarchy, see Note 16. U.S. Plans for the Year Ended December 31, 2023 (DOLLARS IN MILLIONS) Level 1 Level 2 Level 3 Total Cash Equivalents $ — $ 6 $ — $ 6 Fixed Income Securities Government & Government Agency Bonds — 5 — 5 Corporate Bonds — 82 — 82 Municipal Bonds — 5 — 5 Assets measured at net asset value (1) 406 Total $ — $ 98 $ — $ 504 Receivables $ 1 Total $ 505 U.S. Plans for the Year Ended December 31, 2022 (DOLLARS IN MILLIONS) Level 1 Level 2 Level 3 Total Cash Equivalents $ — $ 9 $ — $ 9 Fixed Income Securities Government & Government Agency Bonds — 6 — 6 Corporate Bonds — 73 — 73 Municipal Bonds — 5 — 5 Assets measured at net asset value (1) 404 Total $ — $ 93 $ — $ 497 Receivables $ 1 Total $ 498 _______________________ (1) Investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. The total amount measured at net asset value includes approximately $65 million and $234 million in pooled equity funds and $341 million and $170 million in fixed income mutual funds for the years ended December 31, 2023 and 2022, respectively. Non-U.S. Plans for the Year Ended December 31, 2023 (DOLLARS IN MILLIONS) Level 1 Level 2 Level 3 Total Cash $ 27 $ — $ — $ 27 Equity Securities U.S. Large Cap 90 — — 90 U.S. Mid Cap 8 — — 8 U.S. Small Cap 1 — — 1 Non-U.S. Large Cap 50 — — 50 Non-U.S. Mid Cap 5 — — 5 Non-U.S. Small Cap 1 — — 1 Emerging Markets 8 — — 8 Fixed Income Securities U.S. Corporate Bonds 29 — — 29 Non-U.S. Treasuries/Government Bonds 194 — — 194 Non-U.S. Corporate Bonds 50 88 — 138 Non-U.S. Asset-Backed Securities — 56 — 56 Non-U.S. Other Fixed Income 2 — — 2 Alternative Types of Investments Insurance Contracts — 247 — 247 Derivative Financial Instruments — 28 — 28 Absolute Return Funds 3 2 — 5 Private Equity Funds — 27 — 27 Property Non-U.S. Property 7 — 77 84 Total $ 475 $ 448 $ 77 $ 1,000 Non-U.S. Plans for the Year Ended December 31, 2022 (DOLLARS IN MILLIONS) Level 1 Level 2 Level 3 Total Cash $ 14 $ 9 $ — $ 23 Equity Securities U.S. Large Cap 73 — — 73 U.S. Mid Cap 6 — — 6 Non-U.S. Large Cap 79 — — 79 Non-U.S. Mid Cap 4 — — 4 Non-U.S. Small Cap 1 — — 1 Emerging Markets 7 — — 7 Fixed Income Securities U.S. Corporate Bonds 35 — — 35 Non-U.S. Treasuries/Government Bonds 144 — — 144 Non-U.S. Corporate Bonds 34 75 — 109 Non-U.S. Asset-Backed Securities — 46 — 46 Non-U.S. Other Fixed Income 2 — — 2 Alternative Types of Investments Insurance Contracts — 177 — 177 Derivative Financial Instruments — 56 — 56 Absolute Return Funds 4 2 — 6 Other — 64 3 67 Property Non-U.S. Property 4 — 81 85 Total $ 407 $ 429 $ 84 $ 920 |
Reconciliation of Level 3 Non-U.S. Plan Assets Held | The following table presents a reconciliation of Level 3 non-U.S. plan assets held during the year ended December 31, 2023: Non-U.S. Plans (DOLLARS IN MILLIONS) Property Hedge Total Ending balance as of December 31, 2022 $ 81 $ 3 $ 84 Actual return on plan assets (4) — (4) Purchases, sales and settlements — (3) (3) Ending balance as of December 31, 2023 $ 77 $ — $ 77 |
Weighted Average Assumptions Used to Determine Postretirement Benefit Expense and Obligation | The following weighted average assumptions were used to determine the postretirement benefit expense and obligation for the years ended December 31: Expense Liability 2023 2022 2023 2022 Discount rate 5.40 % 2.90 % 5.10 % 5.40 % Current medical cost trend rate 6.50 % 6.75 % 7.25 % 6.50 % Ultimate medical cost trend rate 4.75 % 4.75 % 4.75 % 4.75 % Medical cost trend rate decreases to ultimate rate in year 2030 2030 2034 2030 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Carrying Amount and Estimated Fair Value of Financial Instruments | The carrying value and the estimated fair values of financial instruments at December 31 consisted of the following: 2023 2022 (DOLLARS IN MILLIONS) Carrying Value Fair Carrying Value Fair LEVEL 1 Cash and cash equivalents (1) $ 703 $ 703 $ 483 $ 483 LEVEL 2 Credit facilities and bank overdrafts (2) 3 3 106 106 Derivatives Derivative assets (3) 41 41 1 1 Derivative liabilities (3) 165 165 75 75 Commercial paper (2) — — 187 187 Long-term debt: 2023 Notes (4) — — 300 298 2024 Euro Notes (4) 552 549 532 519 2025 Notes (4) 1,000 924 1,000 884 2026 Euro Notes (4) 879 835 845 774 2027 Notes (4) 1,212 1,049 1,215 1,006 2028 Notes (4) 398 389 398 380 2030 Notes (4) 1,508 1,240 1,510 1,188 2040 Notes (4) 773 536 774 535 2047 Notes (4) 495 382 495 390 2048 Notes (4) 787 678 787 685 2050 Notes (4) 1,569 1,029 1,571 1,021 2024 Term Loan Facility (5) 270 270 625 625 2026 Term Loan Facility (5) 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 Note is obtained from pricing services engaged by the Company, and the Company receives one price for each security. The fair value provided by the pricing services are estimated using pricing models, where the inputs to those models are based on observable market inputs or recent trades of similar securities. The inputs to the valuation techniques applied by the pricing services are typically benchmark yields, benchmark security prices, credit spreads, reported trades and broker-dealer quotes, all with reasonable levels of transparency. (5) 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 December 31, 2023 and December 31, 2022: December 31, (DOLLARS IN MILLIONS) 2023 2022 Foreign currency contracts (1) $ (1,400) $ 92 Commodity contracts (1) 7 (1) Cross currency swaps 1,400 1,400 ______________________ (1) Foreign currency contracts and commodity contracts are presented net of contracts bought and sold. |
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 December 31, 2023 and December 31, 2022: December 31, 2023 (DOLLARS IN MILLIONS) Fair Value of Derivatives Fair Value of Derivatives Not Designated as Hedging Instruments Total Fair Value Derivative assets (1) Foreign currency contracts $ — $ 41 $ 41 Total derivative assets $ — $ 41 $ 41 Derivative liabilities (2) Foreign currency contracts $ — $ 4 $ 4 Cross currency swaps 161 — 161 Total derivative liabilities $ 161 $ 4 $ 165 December 31, 2022 (DOLLARS IN MILLIONS) Fair Value of Derivatives Designated as Hedging Instruments Fair Value of Derivatives Not Designated as Hedging Instruments Total Fair Value Derivative assets (1) Foreign currency contracts $ — $ 1 $ 1 Derivative liabilities (2) Cross currency swaps $ 75 $ — $ 75 _______________________ (1) Derivative assets are recorded to Prepaid expenses and other current assets on the Consolidated Balance Sheets. (2) Derivative liabilities are recorded to Other current liabilities and Other liabilities on 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 (Loss) Income and Comprehensive Loss for the years ended December 31, 2023 and 2022: (DOLLARS IN MILLIONS) Amount of Gain (Loss) Location of Gain (Loss) 2023 2022 Foreign currency contracts (1) $ (11) $ 7 Other expense (income), net Commodity contracts 2 — Cost of goods sold Total $ (9) $ 7 |
Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments | The following table shows the effect of the Company’s derivative instruments designated as net investment hedging instruments, net of tax, in the Consolidated Statements of (Loss) Income and Comprehensive Loss for the years ended December 31, 2023 and 2022: Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) Reclassified from AOCI For the years ended For the years ended (DOLLARS IN MILLIONS) 2023 2022 2023 2022 Derivatives in Net Investment Hedging Relationships: Cross currency swaps $ (67) $ (16) N/A $ — $ — Non-Derivatives in Net Investment Hedging Relationships: 2024 Euro Notes (16) 27 N/A — — 2026 Euro Notes (26) 43 N/A — — Total $ (109) $ 54 $ — $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss): (DOLLARS IN MILLIONS) Foreign Gains (Losses) on Derivatives Pension and Total Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2022 $ (2,066) $ 1 $ (133) $ (2,198) OCI before reclassifications 367 — (100) 267 Reclassifications due to business divestitures 47 — (1) 46 Amounts reclassified from AOCI — — (11) (11) Net current period other comprehensive income (loss) 414 — (112) 302 Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2023 $ (1,652) $ 1 $ (245) $ (1,896) (DOLLARS IN MILLIONS) Foreign Gains (Losses) on Derivatives 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 (933) — 148 (785) Amounts reclassified from AOCI — — 10 10 Net current period other comprehensive income (loss) (933) — 158 (775) Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2022 $ (2,066) $ 1 $ (133) $ (2,198) (DOLLARS IN MILLIONS) Foreign Gains (Losses) on Derivatives Pension and Total Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2020 $ (285) $ (7) $ (406) $ (698) OCI before reclassifications (848) 1 97 (750) Amounts reclassified from AOCI — 7 18 25 Net current period other comprehensive income (loss) (848) 8 115 (725) Accumulated other comprehensive (loss) income, net of tax, as of December 31, 2021 $ (1,133) $ 1 $ (291) $ (1,423) |
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 (Loss) Income and Comprehensive Loss: Year Ended December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Affected Line Item in the Consolidated Statements of (Loss) Income and Comprehensive Loss Gains (losses) on derivatives qualifying as hedges Foreign currency contracts $ — $ — $ (7) Cost of goods sold Interest rate swaps — — (1) Interest expense Tax — — 1 Provision for income taxes Total $ — $ — $ (7) Total, net of income taxes Gains (losses) on pension and postretirement liability adjustments Prior service cost $ 6 $ 7 $ 7 (1) Actuarial gains (losses) 8 (21) (38) (1) Other items — — 17 (2) Tax (3) 4 (4) Provision for income taxes Total $ 11 $ (10) $ (18) 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. See Note 15 for additional information regarding net periodic benefit cost. (2) Represents certain amounts of pension income that were corrected in 2021. |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The following table sets forth the details of the Company’s redeemable non-controlling interests: (DOLLARS IN MILLIONS) Redeemable Balance at December 31, 2020 $ 98 Impact of foreign exchange translation 1 Share of profit or loss attributable to redeemable non-controlling interests 6 Redemption value adjustment for the current period 2 Dividends paid (2) Balance at December 31, 2021 $ 105 Impact of foreign exchange translation (6) Share of profit or loss attributable to redeemable non-controlling interests 4 Redemption value adjustment for the current period 5 Exercises of redeemable non-controlling interests (49) Balance at December 31, 2022 $ 59 Impact of foreign exchange translation (8) Redemption value adjustment for the current period (2) Dividends paid (13) Exercises of redeemable non-controlling interests (25) Disposal of redeemable non-controlling interests (1) (11) Balance at December 31, 2023 $ — _______________________ (1) The disposal of redeemable non-controlling interests was related to the sale of the Company’s investment in the Sonarome business. The total proceeds received from the sale transaction was approximately $29 million. |
Assets and Liabilities Held F_2
Assets and Liabilities Held For Sale (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | The following table summarizes the fair value of sale consideration received in connection with the business divestiture: (DOLLARS IN MILLIONS) Cash proceeds from the buyer $ 205 Advance receipt for business to be transferred (1) Direct costs to sell (5) Proceeds attributable to supply agreement (4) Fair value of sale consideration $ 195 (DOLLARS IN MILLIONS) Fair value of sale consideration $ 195 Direct costs to sell 5 Advance receipt for business to be transferred 1 Cash transferred to the buyer (1) Net proceeds received from business divestiture $ 200 (DOLLARS IN MILLIONS) August 1, 2023 Assets Cash and cash equivalents $ 1 Trade receivables, net 13 Inventories 45 Property, plant and equipment, net 29 Goodwill 44 Other intangible assets, net 73 Other assets 10 Total assets 215 Liabilities Accounts payable (4) Deferred tax liability (1) Other liabilities (6) Total liabilities (11) Equity Accumulated other comprehensive income - currency translation adjustment 1 Total equity 1 Carrying value of net assets (adjusted for currency translation adjustment) $ 205 The following table summarizes the fair value of sale consideration received in connection with the business divestiture: (DOLLARS IN MILLIONS) Cash proceeds from the buyer $ 840 Receivable from the buyer 37 Direct costs to sell (20) Fair value of sale consideration $ 857 (DOLLARS IN MILLIONS) Fair value of sale consideration $ 857 Direct costs to sell 20 Receivable from the buyer (37) Cash transferred to the buyer (including restricted cash) (19) Net proceeds received from business divestiture $ 821 (DOLLARS IN MILLIONS) May 31, 2023 Assets Cash and cash equivalents $ 15 Restricted cash 4 Trade receivables, net 69 Inventories 116 Property, plant and equipment, net 77 Goodwill 317 Other intangible assets, net 367 Right-of-use assets 20 Other assets 24 Total assets 1,009 Liabilities Accounts payable (44) Deferred tax liability (92) Other liabilities (54) Total liabilities (190) Equity Accumulated other comprehensive income - currency translation adjustment 42 Accumulated other comprehensive income - pension liability and postretirement (1) Total equity 41 Carrying value of net assets (adjusted for currency translation and pension adjustments) $ 860 The following table summarizes the fair value of the sale consideration received in connection with the business divestiture: (DOLLARS IN MILLIONS) Cash proceeds from the buyer $ 1,254 Escrow proceeds 15 Proceeds attributable to transition service agreements (36) Direct costs to sell (11) Net cash settlement for post-closing adjustments (3) Fair value of sale consideration $ 1,219 (DOLLARS IN MILLIONS) Fair value of sale consideration $ 1,219 Cash transferred to the buyer on the closing balance sheet (49) Employee reimbursement receivable (1) Net proceeds received from business divestiture $ 1,169 (DOLLARS IN MILLIONS) June 30, 2022 Assets Current assets $ 263 Goodwill and other intangible assets, net 867 Equity method investment 74 Other assets 80 Total assets 1,284 Liabilities Accounts payable 41 Other liabilities 35 Total liabilities 76 Carrying value of net assets $ 1,208 Included in the Company’s Consolidated Balance Sheets as of December 31, 2023 and 2022 are the following carrying amounts of the assets and liabilities held for sale: (DOLLARS IN MILLIONS) December 31, 2023 December 31, 2022 (2) Assets Cash and cash equivalents $ 26 $ 52 Trade receivables, net 15 85 Inventories 18 157 Property, plant and equipment, net 7 92 Goodwill 276 348 Other intangible assets, net 146 428 Operating lease right-of-use assets 9 13 Other assets 9 25 Total assets held-for-sale $ 506 $ 1,200 Liabilities Accounts payable $ 4 $ 56 Deferred tax liability (1) 24 92 Other liabilities 18 64 Total liabilities held-for-sale $ 46 $ 212 _______________________ (1) The Company is currently analyzing the tax impact of the sale of the Cosmetic Ingredients business and has included preliminary numbers for the deferred tax liability, which are subject to further updates. (2) The amounts for December 31, 2022 represent the carrying amounts of the portion of the Savory Solutions business and FSI business that were classified as held for sale. The Company completed the divestitures of the businesses on May 31, 2023 and August 1, 2023, respectively. See Note 4 for additional information. |
Other (Expense) Income, Net (Ta
Other (Expense) Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other (Expense) Income | Other (expense) income, net consisted of the following: December 31, (DOLLARS IN MILLIONS) 2023 2022 2021 Foreign exchange (losses) gains $ (77) $ (12) $ 3 Interest income 5 15 8 (Losses) gains on business divestitures (23) 11 13 Gain on China facility relocation 22 — — Pension-related benefit 28 19 34 Other 17 4 — Other (expense) income, net $ (28) $ 37 $ 58 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) reporting_unit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 30, 2023 USD ($) | Dec. 31, 2020 USD ($) | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Accounts receivable, before allowance for credit loss | $ 1,778,000,000 | $ 1,871,000,000 | |||
Cash and cash equivalents | 703,000,000 | 483,000,000 | $ 711,000,000 | ||
Restricted cash | 6,000,000 | 10,000,000 | 4,000,000 | ||
Cash and cash equivalents | 26,000,000 | 52,000,000 | 0 | ||
Restricted Cash, Noncurrent | 0 | 7,000,000 | 1,000,000 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 735,000,000 | 552,000,000 | 716,000,000 | $ 660,000,000 | |
Proceeds from sale of accounts receivable | 1,752,000,000 | 1,451,000,000 | 1,167,000,000 | ||
Trade receivables, held-for-sale, amount | 157,000,000 | ||||
Payments to participate in factoring receivable program | 25,000,000 | 12,000,000 | 6,000,000 | ||
Receivables, net, current | 1,726,000,000 | 1,818,000,000 | |||
Accounts Receivable, Allowance for Credit Loss | $ 52,000,000 | 53,000,000 | 46,000,000 | ||
Accounts Receivables, Outstanding By Over 365 Days | 1% | ||||
Accounts Receivable, Credit Loss Expense (Reversal) | $ 9,000,000 | 19,000,000 | |||
Accounts Receivable, Allowance for Credit Loss, Writeoff | (11,000,000) | ||||
Accounts Receivable, Allowance for Credit Loss, Foreign Currency Translation | 1,000,000 | (12,000,000) | |||
Operating lease right-of-use assets | 689,000,000 | 743,000,000 | |||
Operating lease liabilities | 642,000,000 | 672,000,000 | |||
Cumulative adjustment relating to the adoption of ASC 2016-16 | 14,642,000,000 | 17,685,000,000 | 21,117,000,000 | 6,322,000,000 | |
Capitalized interest costs | 17,000,000 | 13,000,000 | 9,000,000 | ||
Impairment of long-lived assets | $ 0 | 120,000,000 | 0 | ||
Number of reporting units | reporting_unit | 6 | ||||
Impairment of goodwill | $ 2,623,000,000 | 2,250,000,000 | 0 | ||
Minimum percentage chance of tax benefit realization in final settlement | 50% | ||||
Prior service costs from plan improvements amortization period, minimum, years | 10 years | ||||
Prior service costs from plan improvements amortization period, maximum, years | 20 years | ||||
Amortization period of internal and external development costs, years | 7 years | ||||
Supply chain financing, obligation | $ 0 | 0 | |||
Inventories | 2,477,000,000 | 3,151,000,000 | |||
Deferred income taxes | 1,937,000,000 | 2,283,000,000 | |||
Other assets | 764,000,000 | 689,000,000 | |||
Other liabilities | 560,000,000 | 491,000,000 | |||
Accumulated other comprehensive loss | (1,896,000,000) | (2,198,000,000) | |||
Goodwill | 10,635,000,000 | 13,373,000,000 | 16,432,000,000 | ||
Foreign currency gain (loss), net of tax | (933,000,000) | ||||
EGYPT | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Accounts Receivable, Credit Loss Expense (Reversal) | 13,000,000 | ||||
Health & Biosciences | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Impairment of goodwill | 2,250,000,000 | ||||
Goodwill | 4,391,000,000 | $ 4,381,000,000 | |||
Russia And Ukraine Conflict | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Accounts Receivable, Allowance for Credit Loss | 3,000,000 | ||||
Accounts Receivable, Credit Loss Expense (Reversal) | $ 8,000,000 | 11,000,000 | |||
Impairment of long-lived assets | 120,000,000 | ||||
Russia And Ukraine Conflict | Finite-Lived Intangible Assets | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Asset impairment charges | 92,000,000 | ||||
Russia And Ukraine Conflict | Property, Plant and Equipment | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Asset impairment charges | 28,000,000 | ||||
Restatement Adjustment | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Operating lease liabilities | 107,000,000 | ||||
Deferred income taxes | 18,000,000 | ||||
Deferred Income Tax Assets, Net | 9,000,000 | ||||
Previously Reported | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Proceeds from sale of accounts receivable | 1,030,000,000 | 668,000,000 | |||
Trade receivables, held-for-sale, amount | 212,000,000 | ||||
Operating lease right-of-use assets | 636,000,000 | ||||
Operating lease liabilities | 565,000,000 | ||||
Deferred income taxes | 2,265,000,000 | ||||
Other assets | 699,000,000 | ||||
Other liabilities | 472,000,000 | ||||
Accumulated other comprehensive loss | (2,169,000,000) | ||||
Goodwill | 13,355,000,000 | ||||
Foreign currency gain (loss), net of tax | (904,000,000) | ||||
Minimum | Customer Relationships | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Other intangible assets amortized period, years | 10 years | ||||
Minimum | Patents [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Other intangible assets amortized period, years | 11 years | ||||
Minimum | Trade Names [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Other intangible assets amortized period, years | 4 years | ||||
Minimum | Technological Know-how [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Other intangible assets amortized period, years | 5 years | ||||
Minimum | Buildings And Improvements [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of property, plant and equipment, years | 1 year | ||||
Minimum | Machinery and equipment [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of property, plant and equipment, years | 1 year | ||||
Minimum | Information Technology Hardware And Software [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of property, plant and equipment, years | 1 year | ||||
Maximum | Customer Relationships | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Other intangible assets amortized period, years | 27 years | ||||
Maximum | Patents [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Other intangible assets amortized period, years | 15 years | ||||
Maximum | Trade Names [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Other intangible assets amortized period, years | 28 years | ||||
Maximum | Technological Know-how [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Other intangible assets amortized period, years | 28 years | ||||
Maximum | Buildings And Improvements [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of property, plant and equipment, years | 40 years | ||||
Maximum | Machinery and equipment [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of property, plant and equipment, years | 20 years | ||||
Maximum | Information Technology Hardware And Software [Member] | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of property, plant and equipment, years | 7 years | ||||
Retained earnings (accumulated deficit) | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Cumulative adjustment relating to the adoption of ASC 2016-16 | $ (2,439,000,000) | 955,000,000 | 3,641,000,000 | $ 4,156,000,000 | |
Trade Accounts Receivable With The Company's Own Factoring Agreements | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Accounts receivable, factoring receivable program, maximum amount | 300,000,000 | ||||
Proceeds from sale of accounts receivable | 843,000,000 | 547,000,000 | $ 197,000,000 | ||
Trade receivables, held-for-sale, amount | $ 196,000,000 | $ 157,000,000 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Schedule of Inventory (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $ 779 | $ 1,073 |
Inventory, Work in Process, Net of Reserves | 406 | 442 |
Inventory, Finished Goods, Net of Reserves | 1,292 | 1,636 |
Total | $ 2,477 | $ 3,151 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 USD ($) Facility | Dec. 31, 2023 USD ($) Position position | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2019 Position | Sep. 30, 2022 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||
Additional charges, net | $ 68 | $ 12 | $ 41 | |||
Restructuring Reserve [Roll Forward] | ||||||
Balance | $ 15 | 15 | 29 | 14 | ||
Additional Charges (Reversals), Net | 68 | 12 | 41 | |||
Non-Cash Charges | (2) | (5) | (8) | |||
Cash Payments | (67) | (21) | (18) | |||
Balance | 14 | 15 | 29 | |||
Nutrition & Biosciences, Inc | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Additional Charges (Reversals), Net | 2 | |||||
Restructuring and Related Cost, Cost Incurred to Date | 47 | |||||
Frutarom Integration Initiative [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number Of Sites Closed | Facility | 22 | |||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring and Related Cost, Cost Incurred to Date | $ 36 | |||||
2023 Restructuring Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance costs | $ 70 | |||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring and Related Cost, Number of Positions Eliminated | position | 680 | |||||
Severance | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance | 1 | $ 1 | 1 | 2 | ||
Additional Charges (Reversals), Net | (1) | 0 | 0 | |||
Non-Cash Charges | 0 | 0 | 0 | |||
Cash Payments | 0 | 0 | (1) | |||
Balance | 0 | 1 | 1 | |||
Severance | Nutrition & Biosciences, Inc | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance | 9 | 9 | 15 | 0 | ||
Additional Charges (Reversals), Net | 0 | 8 | 27 | |||
Non-Cash Charges | 0 | 0 | 0 | |||
Cash Payments | (9) | (14) | (12) | |||
Balance | $ 0 | 9 | 15 | |||
Restructuring and Related Cost, Number of Positions Eliminated | Position | 215 | |||||
Severance | Frutarom Integration Initiative [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance | 4 | $ 4 | 5 | 3 | ||
Additional Charges (Reversals), Net | (3) | 1 | 5 | |||
Non-Cash Charges | 0 | 0 | 0 | |||
Cash Payments | (1) | (2) | (3) | |||
Balance | 0 | 4 | 5 | |||
Severance | 2019 Severance Initiatives [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance | 0 | 0 | 5 | 6 | ||
Additional Charges (Reversals), Net | (5) | 0 | ||||
Non-Cash Charges | 0 | 0 | ||||
Cash Payments | 0 | (1) | ||||
Balance | 0 | 5 | ||||
Restructuring and Related Cost, Cost Incurred to Date | $ 15 | |||||
Restructuring and Related Cost, Number of Positions Eliminated | Position | 190 | |||||
Severance | 2023 Restructuring Program | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance | 0 | 0 | ||||
Additional Charges (Reversals), Net | 70 | |||||
Non-Cash Charges | 0 | |||||
Cash Payments | (56) | |||||
Balance | 14 | 0 | ||||
Other(1) | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance | 0 | 0 | ||||
Additional Charges (Reversals), Net | 1 | |||||
Non-Cash Charges | 0 | |||||
Cash Payments | (1) | |||||
Balance | 0 | |||||
Other(1) | Nutrition & Biosciences, Inc | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance | 1 | 1 | 0 | 0 | ||
Additional Charges (Reversals), Net | 2 | 7 | 3 | |||
Non-Cash Charges | (2) | (2) | (3) | |||
Cash Payments | (1) | (4) | 0 | |||
Balance | 0 | 1 | 0 | |||
Other(1) | Frutarom Integration Initiative [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance | 0 | 0 | 3 | 3 | ||
Additional Charges (Reversals), Net | (2) | 0 | ||||
Non-Cash Charges | 0 | 0 | ||||
Cash Payments | (1) | 0 | ||||
Balance | 0 | 3 | ||||
Fixed asset write down | Frutarom Integration Initiative [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance | $ 0 | 0 | 0 | 0 | ||
Additional Charges (Reversals), Net | 3 | 5 | ||||
Non-Cash Charges | (3) | (5) | ||||
Cash Payments | 0 | 0 | ||||
Balance | 0 | 0 | ||||
Scent [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Additional charges, net | $ 15 | $ 1 | $ 3 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Movements in Restructuring and Related Accruals (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Balance | $ 15 | $ 29 | $ 14 |
Additional Charges (Reversals), Net | 68 | 12 | 41 |
Non-Cash Charges | (2) | (5) | (8) |
Cash Payments | (67) | (21) | (18) |
Balance | 14 | 15 | 29 |
Additional charges, net | 68 | 12 | 41 |
Nutrition & Biosciences, Inc | |||
Restructuring Reserve [Roll Forward] | |||
Additional Charges (Reversals), Net | 2 | ||
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 1 | 1 | 2 |
Additional Charges (Reversals), Net | (1) | 0 | 0 |
Non-Cash Charges | 0 | 0 | 0 |
Cash Payments | 0 | 0 | (1) |
Balance | 0 | 1 | 1 |
Severance | Nutrition & Biosciences, Inc | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 9 | 15 | 0 |
Additional Charges (Reversals), Net | 0 | 8 | 27 |
Non-Cash Charges | 0 | 0 | 0 |
Cash Payments | (9) | (14) | (12) |
Balance | 0 | 9 | 15 |
Other(1) | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 0 | 0 | |
Additional Charges (Reversals), Net | 1 | ||
Non-Cash Charges | 0 | ||
Cash Payments | (1) | ||
Balance | 0 | ||
Other(1) | Nutrition & Biosciences, Inc | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 1 | 0 | 0 |
Additional Charges (Reversals), Net | 2 | 7 | 3 |
Non-Cash Charges | (2) | (2) | (3) |
Cash Payments | (1) | (4) | 0 |
Balance | 0 | 1 | 0 |
Scent [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Additional charges, net | 15 | 1 | 3 |
Pharma Solutions | |||
Restructuring Reserve [Roll Forward] | |||
Additional charges, net | 3 | 1 | 1 |
Nourish | |||
Restructuring Reserve [Roll Forward] | |||
Additional charges, net | 37 | 8 | 32 |
Health & Biosciences | |||
Restructuring Reserve [Roll Forward] | |||
Additional charges, net | 13 | 2 | 5 |
Frutarom Integration Initiative [Member] | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 4 | 5 | 3 |
Additional Charges (Reversals), Net | (3) | 1 | 5 |
Non-Cash Charges | 0 | 0 | 0 |
Cash Payments | (1) | (2) | (3) |
Balance | 0 | 4 | 5 |
Frutarom Integration Initiative [Member] | Fixed asset write down | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 0 | 0 | 0 |
Additional Charges (Reversals), Net | 3 | 5 | |
Non-Cash Charges | (3) | (5) | |
Cash Payments | 0 | 0 | |
Balance | 0 | 0 | |
Frutarom Integration Initiative [Member] | Other(1) | |||
Restructuring Reserve [Roll Forward] | |||
Balance | 0 | 3 | 3 |
Additional Charges (Reversals), Net | (2) | 0 | |
Non-Cash Charges | 0 | 0 | |
Cash Payments | (1) | 0 | |
Balance | 0 | 3 | |
2019 Severance Initiatives [Member] | Severance | |||
Restructuring Reserve [Roll Forward] | |||
Balance | $ 0 | 5 | 6 |
Additional Charges (Reversals), Net | (5) | 0 | |
Non-Cash Charges | 0 | 0 | |
Cash Payments | 0 | (1) | |
Balance | $ 0 | $ 5 |
Acquisitions - Health Wright Pr
Acquisitions - Health Wright Products (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 10,635 | $ 13,373 | $ 16,432 | |
Earn Outs Payable, Current | 32 | 0 | ||
Health Wright Products, Inc. (“Health Wright”) | ||||
Business Acquisition [Line Items] | ||||
Percentage of voting interest acquired | 100% | |||
Business combination, consideration transferred | $ 157 | |||
Contingent consideration, liability | 31 | |||
Intangible assets | 75 | |||
Goodwill | 45 | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 6 | (5) | ||
Earn Outs Payable, Current | $ 26 | |||
Earn Outs Payable, Current | $ 32 | |||
Health Wright Products, Inc. (“Health Wright”) | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 74 | |||
Other intangible assets amortized period, years | 19 years |
Acquisitions - Nutrition & Bios
Acquisitions - Nutrition & Biosciences, Inc (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Feb. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 15, 2019 | |
Business Acquisition [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.125 | $ 0.125 | |||
Goodwill | $ 10,635 | $ 13,373 | $ 16,432 | ||
Net defined benefit plan assets | 139 | 180 | |||
Acquisition related costs | 7 | (3) | 93 | ||
Cash paid to acquire business | $ 7,500 | ||||
Nourish | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 3,489 | 6,054 | 6,559 | ||
Health & Biosciences | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 4,335 | 6,763 | |||
Pharma Solutions | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 1,265 | 1,239 | 1,282 | ||
Scent [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,490 | $ 1,745 | 1,828 | ||
International Flavors & Fragrances Inc | |||||
Business Acquisition [Line Items] | |||||
Sale of Stock, Percentage of Ownership after Transaction | 44.60% | ||||
Nutrition & Biosciences, Inc | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, equity interest issued or issuable, number of shares | 141,740,461 | ||||
Common stock, par value (in dollars per share) | $ 0.125 | $ 0.125 | |||
Business Acquisition, Net Sales | 6,084 | ||||
Business Acquisition, Net Income (Loss) | 11 | ||||
Fair value of common stock issued to DuPont stockholders | $ 15,929 | ||||
Fair value attributable to pre-merger service for replacement equity awards | 25 | ||||
Pension funding adjustment | (12) | ||||
Business combination, consideration transferred | $ 15,942 | ||||
Business acquisition share price | $ 112.38 | ||||
Net pension balance differential amount settled in cash | $ 220 | ||||
Net defined benefit plan liabilities | 221 | ||||
Acquisition related costs | 91 | ||||
Unaudited pro forma net sales | 12,163 | ||||
Unaudited pro forma net income attributable to the Company | $ 687 | ||||
Cash paid to acquire business | $ 7,359 | ||||
Nutrition & Biosciences, Inc | Minimum | |||||
Business Acquisition [Line Items] | |||||
Dilutive Shares Quotient Multiplier | 44.60% | ||||
Nutrition & Biosciences, Inc | Maximum | |||||
Business Acquisition [Line Items] | |||||
Dilutive Shares Quotient Multiplier | 55.40% | ||||
Nutrition & Biosciences, Inc | International Flavors & Fragrances Inc | DuPont de Nemours, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interest acquired | 55.40% |
Business Divestiture (Details)
Business Divestiture (Details) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | ||||||
Aug. 01, 2023 | May 31, 2023 | Jul. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Jun. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Assets held for sale | $ 506 | $ 1,200 | $ 506 | |||||
Equity Method Investments | 11 | 10 | 11 | |||||
Net proceeds received from business divestitures | 1,050 | 1,169 | $ 115 | |||||
Cash and cash equivalents | 703 | 483 | 711 | 703 | ||||
Receivables, net, current | 1,726 | 1,818 | 1,726 | |||||
Inventories | 2,477 | 3,151 | 2,477 | |||||
Property, plant and equipment | 4,240 | 4,203 | 4,240 | |||||
Goodwill | 10,635 | 13,373 | 16,432 | 10,635 | ||||
Other intangible assets, net | 8,357 | 9,082 | 8,357 | |||||
Other assets | 764 | 689 | 764 | |||||
Assets | 30,978 | 35,522 | 30,978 | |||||
Accounts Payable, Current | (1,378) | (1,418) | (1,378) | |||||
Deferred Income Tax Liabilities, Net | (1,937) | (2,283) | (1,937) | |||||
Other Liabilities, Noncurrent | (560) | (491) | (560) | |||||
Foreign currency gain (loss), net of tax | (933) | |||||||
Shareholders' equity | 14,611 | 17,655 | 14,611 | |||||
Restricted cash | 6 | 10 | $ 4 | 6 | ||||
Operating lease right-of-use assets | 689 | 743 | 689 | |||||
Microbial Control | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from Divestiture of Businesses, Gross | $ 1,254 | |||||||
Transition Services Agreement, Fair Value | (36) | |||||||
Escrow Deposit | 15 | |||||||
Post-closing adjustments | $ (3) | |||||||
Transition Services Agreement, Term | 19 months | |||||||
Transition Services Agreement, Income, Reduction To Costs Not Included In Revenue | 25 | 11 | ||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 1,219 | |||||||
Cash Transferred to the Buyer on the Closing Balance Sheet | (49) | |||||||
Employee Reimbursement Receivable | (1) | |||||||
Proceeds From Divestiture Of Business, Net | 1,169 | |||||||
Assets held for sale | $ 263 | |||||||
Intangible Assets, Net (Including Goodwill) | 867 | |||||||
Equity Method Investments | 74 | |||||||
Other assets | 80 | |||||||
Total assets held-for-sale | 1,284 | |||||||
Accounts payable | 41 | |||||||
Other liabilities | 35 | |||||||
Total liabilities held-for-sale | 76 | |||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 11 | |||||||
Disposal Group, Including Discontinued Operation, Net Assets | 1,208 | |||||||
Net proceeds received from business divestitures | 1,254 | |||||||
Carrying value of net asset | $ 1,208 | |||||||
Tax effect of gain (loss) on divestiture | 96 | |||||||
Direct costs to sell | $ (11) | |||||||
Flavor Specialty Ingredients | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from Divestiture of Businesses, Gross | $ 205 | |||||||
Advance receipt for business to be transferred | (1) | |||||||
Disposal Group, Including Discontinued Operation, Consideration | 195 | |||||||
Advance receipt for business to be transferred | 1 | |||||||
Proceeds From Divestiture Of Business, Net | 200 | |||||||
Net proceeds received from business divestitures | 205 | |||||||
Amount held in escrow | 15 | |||||||
Transaction costs | (5) | |||||||
Proceeds attributable to supply agreement | (4) | |||||||
Cash transferred to buyer | (1) | |||||||
Cash and cash equivalents | 1 | |||||||
Receivables, net, current | 13 | |||||||
Inventories | 45 | |||||||
Property, plant and equipment | 29 | |||||||
Goodwill | 44 | |||||||
Other intangible assets, net | 73 | |||||||
Other assets | 10 | |||||||
Assets | 215 | |||||||
Accounts Payable, Current | (4) | |||||||
Deferred Income Tax Liabilities, Net | (1) | |||||||
Other Liabilities, Noncurrent | (6) | |||||||
Liabilities | (11) | |||||||
Foreign currency gain (loss), net of tax | 1 | |||||||
Shareholders' equity | 1 | |||||||
Carrying value of net asset | 205 | |||||||
Gain (loss) on disposal, before income tax | (10) | |||||||
Tax effect of gain (loss) on divestiture | 3 | 21 | ||||||
Direct costs to sell | $ (5) | |||||||
Savory Solutions Business | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from Divestiture of Businesses, Gross | $ 840 | |||||||
Consideration receivable | 37 | |||||||
Disposal Group, Including Discontinued Operation, Consideration | 857 | |||||||
Proceeds From Divestiture Of Business, Net | 821 | |||||||
Net proceeds received from business divestitures | 840 | |||||||
Transaction costs | (20) | |||||||
Receivable from the buyer | (37) | |||||||
Cash transferred to buyer | (19) | |||||||
Cash and cash equivalents | 15 | |||||||
Receivables, net, current | 69 | |||||||
Inventories | 116 | |||||||
Property, plant and equipment | 77 | |||||||
Goodwill | 317 | |||||||
Other intangible assets, net | 367 | |||||||
Other assets | 24 | |||||||
Assets | 1,009 | |||||||
Accounts Payable, Current | (44) | |||||||
Deferred Income Tax Liabilities, Net | (92) | |||||||
Other Liabilities, Noncurrent | (54) | |||||||
Liabilities | (190) | |||||||
Foreign currency gain (loss), net of tax | 42 | |||||||
Shareholders' equity | 41 | |||||||
Carrying value of net asset | 860 | |||||||
Gain (loss) on disposal, before income tax | (3) | |||||||
Tax effect of gain (loss) on divestiture | $ 72 | $ 108 | ||||||
Direct costs to sell | (20) | |||||||
Restricted cash | 4 | |||||||
Operating lease right-of-use assets | 20 | |||||||
Pension liability and postretirement, after tax | $ (1) | |||||||
Liquidation tax effect | 2 | |||||||
Gain (loss) on liquidation, before taxes | $ 10 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 6,642 | $ 6,180 | |
Accumulated depreciation | (2,402) | (1,977) | |
Property, plant and equipment, net | 4,240 | 4,203 | |
Depreciation expense | 462 | 452 | $ 424 |
Property, Plant and Equipment | Russia And Ukraine Conflict | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairment charges | 28 | ||
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 195 | 199 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 1,822 | 1,697 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 3,752 | 3,344 | |
Information technology [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 473 | 291 | |
Construction in process [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 400 | $ 649 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2023 | |
Goodwill [Line Items] | ||||
Reporting unit in excess of carrying amount | 25% | |||
Impairment of goodwill | $ 2,623 | $ 2,250 | $ 0 | |
Goodwill | 10,635 | 13,373 | 16,432 | |
Health & Biosciences | ||||
Goodwill [Line Items] | ||||
Impairment of goodwill | 0 | 2,250 | ||
Goodwill | 4,335 | 6,763 | ||
Goodwill, Impaired, Accumulated Impairment Loss | 2,250 | 2,250 | ||
Pharma Solutions | ||||
Goodwill [Line Items] | ||||
Impairment of goodwill | 0 | 0 | ||
Goodwill | 1,265 | 1,239 | 1,282 | |
Nourish | ||||
Goodwill [Line Items] | ||||
Impairment of goodwill | 2,623 | 0 | ||
Goodwill | 3,489 | 6,054 | $ 6,559 | |
Goodwill, Impaired, Accumulated Impairment Loss | 2,623 | |||
Finite-Lived Intangible Assets | Russia And Ukraine Conflict | ||||
Goodwill [Line Items] | ||||
Asset impairment charges | 92 | |||
Nourish | ||||
Goodwill [Line Items] | ||||
Impairment of goodwill | 2,623 | |||
Health & Biosciences | ||||
Goodwill [Line Items] | ||||
Reporting unit in excess of carrying amount | 8% | |||
Impairment of goodwill | $ 2,250 | |||
Goodwill | $ 4,391 | $ 4,381 | ||
Pharma Solutions | ||||
Goodwill [Line Items] | ||||
Reporting unit in excess of carrying amount | 8% | |||
Goodwill | $ 1,263 | |||
Fragrance Ingredients [Member] | ||||
Goodwill [Line Items] | ||||
Reporting unit in excess of carrying amount | 18% | |||
Goodwill | $ 295 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Goodwill Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 13,373 | $ 16,432 | |
Foreign exchange | 166 | (506) | |
Acquisitions | 45 | ||
Transferred to assets held for sale(3) | (267) | (348) | |
Reduction from business divestiture | (14) | ||
Goodwill | 10,635 | 13,373 | $ 16,432 |
Goodwill, Impairment Loss | (2,623) | (2,250) | 0 |
Nourish | |||
Goodwill [Roll Forward] | |||
Goodwill, Impairment Loss | (2,623) | ||
Health & Biosciences | |||
Goodwill [Roll Forward] | |||
Goodwill | 4,391 | ||
Goodwill, Impairment Loss | (2,250) | ||
Nourish | |||
Goodwill [Roll Forward] | |||
Goodwill | 6,054 | 6,559 | |
Foreign exchange | 72 | (199) | |
Acquisitions | 0 | ||
Transferred to assets held for sale(3) | 0 | (306) | |
Reduction from business divestiture | (14) | ||
Goodwill | 3,489 | 6,054 | 6,559 |
Goodwill, Impairment Loss | (2,623) | 0 | |
Health & Biosciences | |||
Goodwill [Roll Forward] | |||
Goodwill | 4,335 | 6,763 | |
Foreign exchange | 56 | (223) | |
Acquisitions | 45 | ||
Transferred to assets held for sale(3) | 0 | 0 | |
Reduction from business divestiture | 0 | ||
Goodwill | 4,335 | 6,763 | |
Goodwill, Impairment Loss | 0 | (2,250) | |
Scent [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill | 1,745 | 1,828 | |
Foreign exchange | 12 | (41) | |
Acquisitions | 0 | ||
Transferred to assets held for sale(3) | (267) | (42) | |
Reduction from business divestiture | 0 | ||
Goodwill | 1,490 | 1,745 | 1,828 |
Goodwill, Impairment Loss | 0 | 0 | |
Pharma Solutions | |||
Goodwill [Roll Forward] | |||
Goodwill | 1,239 | 1,282 | |
Foreign exchange | 26 | (43) | |
Acquisitions | 0 | ||
Transferred to assets held for sale(3) | 0 | 0 | |
Reduction from business divestiture | 0 | ||
Goodwill | 1,265 | 1,239 | $ 1,282 |
Goodwill, Impairment Loss | $ 0 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Trademark and Other Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 10,947 | $ 11,062 |
Total accumulated amortization | (2,590) | (1,980) |
Other intangible assets, net | 8,357 | 9,082 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 8,211 | 8,318 |
Total accumulated amortization | (1,619) | (1,252) |
Technological Know-how [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 2,355 | 2,339 |
Total accumulated amortization | (813) | (589) |
Trade Names and Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 337 | 358 |
Total accumulated amortization | (117) | (97) |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 44 | 47 |
Total accumulated amortization | $ (41) | $ (42) |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Net - Amortization Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of acquisition-related intangibles | $ 680 | $ 727 | $ 732 |
2024 | 678 | ||
2025 | 676 | ||
2026 | 674 | ||
2027 | 577 | ||
2028 | $ 558 |
Other Assets And Liabilities,_3
Other Assets And Liabilities, Current and Noncurrent - Schedule of Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets [Abstract] | ||
Value-added tax receivable | $ 187 | $ 212 |
Prepaid income taxes | 178 | 129 |
Packaging materials and supplies | 161 | 148 |
Prepaid expenses | 184 | 144 |
Accounts and Other Receivables, Net, Current | 165 | 137 |
Other Assets, Current | 875 | 770 |
Finance lease right-of-use assets | 26 | 22 |
Deferred Income Taxes and Other Assets, Noncurrent | 278 | 167 |
Overfunded pension plans | 139 | 180 |
Cash surrender value of life insurance contracts | 49 | 45 |
Other | 261 | 265 |
Total | 764 | 689 |
Equity Method Investments | $ 11 | $ 10 |
Other Assets And Liabilities,_4
Other Assets And Liabilities, Current and Noncurrent - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||||
Rebates and incentives payable | $ 105 | $ 99 | ||
Value-added tax payable | 77 | 65 | ||
Interest payable | 65 | 55 | ||
Current pension and other postretirement benefit obligation | 13 | 10 | ||
Accrued insurance (including workers’ compensation) | 9 | 9 | ||
Earn Outs Payable, Current | 32 | 0 | ||
Accrued restructuring | $ 14 | $ 15 | $ 29 | $ 14 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total | Total | ||
Current operating lease obligation | $ 85 | $ 86 | ||
Accrued freight | 14 | 18 | ||
Accrued Commissions Payable, Current | 10 | 11 | ||
Accrued income taxes | 194 | 313 | ||
Accrued expenses payable | 262 | 256 | ||
Other | 97 | 91 | ||
Total | $ 977 | $ 1,028 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Detail) € in Millions, $ in Millions | Jul. 28, 2021 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Feb. 01, 2021 | Sep. 26, 2018 USD ($) | Sep. 25, 2018 EUR (€) | May 18, 2017 USD ($) | Mar. 14, 2016 EUR (€) | Apr. 04, 2013 USD ($) |
Debt Instrument [Line Items] | |||||||||
Commercial paper | $ 0 | $ 187 | |||||||
Debt, long-term and short-term, combined | 10,071 | 10,970 | |||||||
Current maturities of long-term debt | (885) | (597) | |||||||
Long-term debt | 9,186 | 10,373 | |||||||
Revolving Loan Facility | Citibank, N.A | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit | $ 0 | ||||||||
Minimum | Revolving Loan Facility | Citibank, N.A | Eurocurrency Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin on variable rate | 1.125% | ||||||||
Minimum | Revolving Loan Facility | Citibank, N.A | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin on variable rate | 0.125% | ||||||||
Maximum | Revolving Loan Facility | Citibank, N.A | Eurocurrency Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin on variable rate | 1.75% | ||||||||
Maximum | Revolving Loan Facility | Citibank, N.A | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin on variable rate | 0.75% | ||||||||
Senior Notes - 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 3.20% | ||||||||
Senior notes | $ 300 | ||||||||
Senior Notes - 2023 | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 3.30% | ||||||||
Senior notes, current | $ 0 | 300 | |||||||
Senior Notes, Euro Notes, 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 1.75% | ||||||||
Senior notes | € | € 500 | ||||||||
Senior Notes, Euro Notes, 2024 | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | 532 | ||||||||
Senior Notes, Euro Notes, 2024 | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 1.88% | ||||||||
Senior notes, current | $ 552 | ||||||||
Senior Notes, Due Two Thousand Twenty Five | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 1.22% | ||||||||
Senior notes | $ 1,000 | 1,000 | |||||||
Senior Notes, Euro Notes, 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 1.80% | ||||||||
Senior notes | € | € 800 | ||||||||
Senior Notes, Euro Notes, 2026 | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 1.93% | ||||||||
Senior notes | $ 879 | 845 | |||||||
Senior Notes, Due Two Thousand Twenty Seven | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 1.56% | ||||||||
Senior notes | $ 1,212 | 1,215 | |||||||
Senior Notes - 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 4.45% | ||||||||
Senior notes | $ 400 | ||||||||
Senior Notes - 2028 | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 4.57% | ||||||||
Senior notes | $ 398 | 398 | |||||||
Senior Notes, Due Two Thousand Thirty | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 2.21% | ||||||||
Senior notes | $ 1,508 | 1,510 | |||||||
Senior Notes, Due Two Thousand Forty | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 3.04% | ||||||||
Senior notes | $ 773 | 774 | |||||||
Senior notes - 2047 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 4.375% | ||||||||
Senior notes | $ 500 | ||||||||
Senior notes - 2047 | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 4.44% | ||||||||
Senior notes | $ 495 | 495 | |||||||
Senior Notes - 2048 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 5% | ||||||||
Senior notes | $ 800 | ||||||||
Senior Notes - 2048 | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 5.12% | ||||||||
Senior notes | $ 787 | 787 | |||||||
Senior Notes, Due Two Thousand Fifty | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 3.21% | ||||||||
Senior notes | $ 1,569 | 1,571 | |||||||
2024 Term Loan | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | 625 | ||||||||
2024 Term Loan | Loans Payable | Minimum | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 0% | ||||||||
2024 Term Loan | Loans Payable | Maximum | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 1% | ||||||||
2024 Term Loan | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 3.75% | ||||||||
Senior notes, current | $ 270 | ||||||||
2026 Term Loan | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 5.83% | ||||||||
Senior notes | $ 625 | 625 | |||||||
2026 Term Loan | Loans Payable | Minimum | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 0.125% | ||||||||
2026 Term Loan | Loans Payable | Maximum | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 1.375% | ||||||||
Revolving Loan Facility | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit | 0 | 100 | |||||||
Bank overdrafts and other | |||||||||
Debt Instrument [Line Items] | |||||||||
Bank overdrafts and other | $ 3 | $ 6 |
Debt - Additional Information -
Debt - Additional Information - Term Loan and Senior Notes Assumed (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | ||||||
Feb. 01, 2024 | Sep. 19, 2023 | Sep. 15, 2022 | Feb. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 16, 2020 | |
Senior Unsecured Term Loan Facilities | Unsecured Debt | Nutrition & Biosciences, Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, face amount | $ 1,250 | |||||||
Senior Unsecured Notes | Unsecured Debt | Nutrition & Biosciences, Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, face amount | $ 6,250 | $ 6,250 | ||||||
Senior Unsecured Notes | Unsecured Debt | Nutrition & Biosciences, Inc | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, term | 2 years | |||||||
Senior Unsecured Notes | Unsecured Debt | Nutrition & Biosciences, Inc | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, term | 30 years | |||||||
2024 Term Loan | Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 3.75% | 3.75% | ||||||
Repayments of debt | $ 355 | |||||||
Senior notes, current | $ 270 | $ 270 | ||||||
2024 Term Loan | Loans Payable | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | $ 270 | |||||||
2024 Term Loan | Unsecured Debt | Nutrition & Biosciences, Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, face amount | $ 625 | |||||||
2024 Term Loan | Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 625 | |||||||
2024 Term Loan | Loans Payable | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 0.75% | |||||||
2024 Term Loan | Loans Payable | Minimum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 0% | |||||||
2024 Term Loan | Loans Payable | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 2% | |||||||
2024 Term Loan | Loans Payable | Maximum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 1% | |||||||
2026 Term Loan | Unsecured Debt | Nutrition & Biosciences, Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, face amount | $ 625 | |||||||
2026 Term Loan | Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 5.83% | 5.83% | ||||||
Senior notes | $ 625 | $ 625 | 625 | |||||
2026 Term Loan | Loans Payable | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 1.125% | |||||||
2026 Term Loan | Loans Payable | Minimum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 0.125% | |||||||
2026 Term Loan | Loans Payable | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 2.375% | |||||||
2026 Term Loan | Loans Payable | Maximum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 1.375% | |||||||
Term Loan Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum dividend threshold per quarter | $ 0.81 | |||||||
Maximum dividend threshold per year | $ 3.24 | |||||||
Lien threshold | $ 300 | |||||||
Lien threshold, percentage of consolidated net tangible assets | 3.65% | |||||||
Percentage of proceeds from non-ordinary assets sales required to be used as prepayment | 1 | |||||||
Debt instrument, covenant, basis spread increase on variable rate | 0.00125 | |||||||
Term Loan Credit Agreement | Fiscal Quarter Ending On Or Before March 31, 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum consolidated leverage ratio | 525% | |||||||
Term Loan Credit Agreement | Fiscal Quarter Ending June 30, 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum consolidated leverage ratio | 475% | |||||||
Term Loan Credit Agreement | Fiscal Quarter Ending September 30, 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum consolidated leverage ratio | 450% | |||||||
Term Loan Credit Agreement | Subsequent Fiscal Quarter Ending On Or Before March 31, 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum consolidated leverage ratio | 425% | |||||||
Term Loan Credit Agreement | Subsequent Fiscal Quarter Ending On Or Before September 30, 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum consolidated leverage ratio | 400% | |||||||
Term Loan Credit Agreement | Fiscal Quarter Ending December 31, 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum consolidated leverage ratio | 375% | |||||||
Term Loan Credit Agreement | Secured Overnight Financing Rate (SOFR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Margin on variable rate | 0.10% | |||||||
Senior Notes, Due Two Thousand Twenty Two | Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | $ 300 | |||||||
Senior Notes, Due Two Thousand Twenty Two | Nutrition & Biosciences, Inc | Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 0.697% | |||||||
Senior notes, current | $ 300 | |||||||
Senior Notes, Due Two Thousand Twenty Five | Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 1.22% | 1.22% | ||||||
Senior notes | $ 1,000 | $ 1,000 | 1,000 | |||||
Senior Notes, Due Two Thousand Twenty Five | Loans Payable | Nutrition & Biosciences, Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 1.23% | |||||||
Margin on variable rate | 0.15% | |||||||
Senior notes | $ 1,000 | |||||||
Senior Notes, Due Two Thousand Twenty Seven | Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 1.56% | 1.56% | ||||||
Senior notes | $ 1,212 | $ 1,212 | 1,215 | |||||
Senior Notes, Due Two Thousand Twenty Seven | Loans Payable | Nutrition & Biosciences, Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 1.832% | |||||||
Margin on variable rate | 0.25% | |||||||
Senior notes | $ 1,200 | |||||||
Senior Notes, Due Two Thousand Thirty | Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 2.21% | 2.21% | ||||||
Senior notes | $ 1,508 | $ 1,508 | 1,510 | |||||
Senior Notes, Due Two Thousand Thirty | Loans Payable | Nutrition & Biosciences, Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 2.30% | |||||||
Margin on variable rate | 0.25% | |||||||
Senior notes | $ 1,500 | |||||||
Senior Notes, Due Two Thousand Forty | Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 3.04% | 3.04% | ||||||
Senior notes | $ 773 | $ 773 | 774 | |||||
Senior Notes, Due Two Thousand Forty | Loans Payable | Nutrition & Biosciences, Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 3.268% | |||||||
Margin on variable rate | 0.30% | |||||||
Senior notes | $ 750 | |||||||
Senior Notes, Due Two Thousand Fifty | Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 3.21% | 3.21% | ||||||
Senior notes | $ 1,569 | $ 1,569 | $ 1,571 | |||||
Senior Notes, Due Two Thousand Fifty | Loans Payable | Nutrition & Biosciences, Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate of debt | 3.468% | |||||||
Margin on variable rate | 0.30% | |||||||
Senior notes | $ 1,500 |
Debt - Additional Information_2
Debt - Additional Information - Revolving Credit Facility (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | |||||
Sep. 19, 2023 | Jul. 28, 2021 | Jun. 06, 2018 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Aug. 25, 2020 | |
Revolving Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum dividend threshold per quarter | $ 0.81 | ||||||
Maximum dividend threshold per year | $ 3.24 | ||||||
Lien threshold | $ 300 | ||||||
Lien threshold, percentage of consolidated net tangible assets | 3.65% | ||||||
Debt instrument, covenant, basis spread increase on variable rate | 0.00125 | ||||||
Revolving Loan Facility | Fiscal Quarter Ending On Or Before March 31, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum consolidated leverage ratio | 525% | ||||||
Revolving Loan Facility | Fiscal Quarter Ending June 30, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum consolidated leverage ratio | 475% | ||||||
Revolving Loan Facility | Fiscal Quarter Ending September 30, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum consolidated leverage ratio | 450% | ||||||
Revolving Loan Facility | Subsequent Fiscal Quarter Ending On Or Before March 31, 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum consolidated leverage ratio | 425% | ||||||
Revolving Loan Facility | Subsequent Fiscal Quarter Ending On Or Before September 30, 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum consolidated leverage ratio | 400% | ||||||
Revolving Loan Facility | Fiscal Quarter Ending December 31, 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum consolidated leverage ratio | 375% | ||||||
Revolving Loan Facility | Euro Interbank Offered Rate | |||||||
Debt Instrument [Line Items] | |||||||
Margin on variable rate | 0.10% | ||||||
Revolving Loan Facility | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Margin on variable rate | 0.10% | ||||||
Revolving Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit facility | $ 1,000 | ||||||
Revolving Loan Facility | Citibank, N.A | |||||||
Debt Instrument [Line Items] | |||||||
Debt related commitment fees and debt issuance costs | $ 1 | ||||||
Revolving credit facility | $ 2,000 | $ 2,000 | $ 2,000 | ||||
Line of credit | $ 0 | 0 | |||||
Line of Credit Facility, Increase (Decrease), Net | $ 2,500 | ||||||
Proceeds from Lines of Credit | 800 | $ 550 | |||||
Repayments of Lines of Credit | $ 900 | $ 450 |
Debt - Additional Information_3
Debt - Additional Information - Senior Unsecured Notes (Detail) € in Millions, $ in Millions | May 01, 2023 USD ($) | May 18, 2017 USD ($) | Mar. 14, 2016 USD ($) | Mar. 14, 2016 EUR (€) | Apr. 04, 2013 USD ($) | Dec. 31, 2023 USD ($) | Sep. 26, 2018 USD ($) | Sep. 25, 2018 USD ($) | Sep. 25, 2018 EUR (€) |
Debt Instrument [Line Items] | |||||||||
Total | $ 9,980 | ||||||||
Senior Notes, Euro Notes, 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Total | $ 932 | € 794 | |||||||
Senior Notes - 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Total | $ 397 | ||||||||
Senior Notes - 2048 | |||||||||
Debt Instrument [Line Items] | |||||||||
Total | 787 | ||||||||
Senior Notes, Euro Notes, 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | € | € 800 | ||||||||
Interest rate of debt | 1.80% | 1.80% | |||||||
Senior Notes - 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | $ 400 | ||||||||
Interest rate of debt | 4.45% | ||||||||
Senior Notes - 2048 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | $ 800 | ||||||||
Interest rate of debt | 5% | ||||||||
Senior Notes - 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | $ 300 | ||||||||
Interest rate of debt | 3.20% | ||||||||
Proceeds related to the issuance of senior notes | $ 298 | ||||||||
Senior Notes - 2023 | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 3.30% | ||||||||
Repayments of debt | $ 300 | ||||||||
Senior Notes, Euro Notes, 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | € | € 500 | ||||||||
Interest rate of debt | 1.75% | ||||||||
Proceeds related to the issuance of senior notes | € | € 496 | ||||||||
Gain (loss) on hedging activity | $ 3 | ||||||||
Debt instrument, term | 8 years | 8 years | |||||||
Senior Notes, Euro Notes, 2024 | Loans Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of debt | 1.88% | ||||||||
Senior notes - 2047 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes | $ 500 | ||||||||
Interest rate of debt | 4.375% | ||||||||
Proceeds related to the issuance of senior notes | $ 494 | ||||||||
Gain (loss) on hedging activity | 5 | ||||||||
Other deferred costs | $ 1 |
Debt - Additional Information_4
Debt - Additional Information - Commercial Paper and Redemption Provisions (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Proceeds from Issuance of commercial paper | $ 5,694 | $ 6,040 |
Repayments of commercial paper | $ 5,881 | $ 6,177 |
Repurchase price of principal amount of Senior Notes in percentage | 101% | |
International Flavors & Fragrances Inc Senior Notes | Loans Payable | International Flavors & Fragrances Inc | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price, percentage | 100% | |
Senior Notes, Euro Notes, 2024 | Loans Payable | International Flavors & Fragrances Inc | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 0.30% | |
Senior Notes, Euro Notes, 2026 | Loans Payable | International Flavors & Fragrances Inc | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 0.25% | |
Senior Notes - 2028 | Loans Payable | International Flavors & Fragrances Inc | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 0.25% | |
Senior notes - 2047 | Loans Payable | International Flavors & Fragrances Inc | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 0.25% | |
Senior Notes - 2048 | Loans Payable | International Flavors & Fragrances Inc | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 0.30% | |
Nutrition & Biosciences, Inc Senior Notes | Loans Payable | Nutrition & Biosciences, Inc | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price, percentage | 100% | |
Senior Notes, Due Two Thousand Twenty Five | Loans Payable | Nutrition & Biosciences, Inc | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 0.15% | |
Senior Notes, Due Two Thousand Twenty Seven | Loans Payable | Nutrition & Biosciences, Inc | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 0.25% | |
Senior Notes, Due Two Thousand Thirty | Loans Payable | Nutrition & Biosciences, Inc | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 0.25% | |
Senior Notes, Due Two Thousand Forty | Loans Payable | Nutrition & Biosciences, Inc | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 0.30% | |
Senior Notes, Due Two Thousand Fifty | Loans Payable | Nutrition & Biosciences, Inc | ||
Debt Instrument [Line Items] | ||
Margin on variable rate | 0.30% |
Debt - Schedule of Debt Maturit
Debt - Schedule of Debt Maturities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Total | $ 9,980 |
Less than 1 Year | 885 |
1-3 Years | 2,445 |
3-5 Years | 1,600 |
More than 5 Years | $ 5,050 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 01, 2022 | Feb. 01, 2021 |
Lessee, Lease, Description [Line Items] | ||||
Remaining term lease | 50 years | |||
Renewal term | 15 years | |||
Operating lease right-of-use assets | $ 689 | $ 743 | ||
Operating Lease, Liability | 727 | 758 | ||
Finance Lease, Liability | $ 25 | $ 17 | ||
Nutrition & Biosciences, Inc | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 525 | |||
Operating Lease, Liability | $ 523 | |||
Health Wright Products, Inc. (“Health Wright”) | ||||
Lessee, Lease, Description [Line Items] | ||||
Finance Lease, Liability | $ 21 |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 137 | $ 134 | $ 133 |
Finance lease cost | 10 | 8 | 7 |
Variable Lease, Cost | 56 | 53 | 35 |
Lease, Cost | $ 193 | $ 187 | $ 168 |
Leases - Cash Flow (Details)
Leases - Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating cash flows for operating leases | $ 122 | $ 135 | $ 129 |
Financing cash flows for finance leases | 8 | 7 | 6 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 49 | 174 | 88 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 22 | 7 | 15 |
Operating cash flows for finance leases | $ 1 | $ 0 | $ 0 |
Leases - Balance Sheet (Details
Leases - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 689 | $ 743 |
Current operating lease obligation | 85 | 86 |
Operating lease liabilities | 642 | 672 |
Operating Lease, Liability | 727 | 758 |
Finance Lease, Right-of-Use Asset | 26 | 22 |
Current financing lease obligation | 7 | 5 |
Finance Lease, Liability, Noncurrent | 18 | 12 |
Finance Lease, Liability | $ 25 | $ 17 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Leases - Weighted Average (Deta
Leases - Weighted Average (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease weighted average remaining lease term | 9 years 10 months 24 days | 10 years 7 months 6 days |
Finance lease weighted average remaining lease term | 3 years 6 months | 4 years |
Operating lease weighted average discount rate | 4.24% | 3.83% |
Finance lease weighted average discount rate | 4.33% | 2.59% |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease, less than 1 year | $ 113 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 110 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 101 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 87 | |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 77 | |
Operating lease, After 5 years | 410 | |
Less Imputed Interest | (171) | |
Operating Lease, Liability | 727 | $ 758 |
Lessee, Operating Lease, Liability, to be Paid, Total | 898 | |
Financing lease, less than 1 year | 9 | |
Finance Lease, Liability, to be Paid, Year Two | 8 | |
Finance Lease, Liability, to be Paid, Year Three | 7 | |
Finance Lease, Liability, to be Paid, Year Four | 4 | |
Finance Lease, Liability, to be Paid, Year Five | 0 | |
Financing lease, After 5 years | 0 | |
Less Imputed Interest | (3) | |
Finance Lease, Liability | 25 | $ 17 |
Finance Lease, Liability, Payment, Due, Total | 28 | |
Lessee, Operating and Finance Lease, Liability, to be Paid, Year One | 122 | |
Lessee, Operating and Finance Lease, Liability, to be Paid, Year Two | 118 | |
Lessee, Operating and Finance Lease, Liability, to be Paid, Year Three | 108 | |
Lessee, Operating and Finance Lease, Liability, to be Paid, Year Four | 91 | |
Lessee, Operating and Finance Lease, Liability, to be Paid, Year Five | 77 | |
Lessee, Operating and Finance Lease, Liability, to be Paid, after Year Five | 410 | |
Lessee, Operating and Finance Lease, Payments, Due | 926 | |
Lessee, Operating and Finance Lease, Liability, Undiscounted Excess Amount | 174 | |
Operating and Finance Lease, Liability | $ 752 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 01, 2022 | Feb. 01, 2021 |
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 689 | $ 743 | ||
Operating Lease, Liability | 727 | 758 | ||
Finance Lease, Right-of-Use Asset | 26 | 22 | ||
Finance Lease, Liability | $ 25 | $ 17 | ||
Nutrition & Biosciences, Inc | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 525 | |||
Operating Lease, Liability | $ 523 | |||
Health Wright Products, Inc. (“Health Wright”) | ||||
Lessee, Lease, Description [Line Items] | ||||
Finance Lease, Right-of-Use Asset | $ 22 | |||
Finance Lease, Liability | $ 21 |
Income Taxes - Schedule of Earn
Income Taxes - Schedule of Earnings before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. loss before taxes | $ (1,777) | $ (1,918) | $ (493) |
Foreign (loss) income before taxes | (741) | 293 | 847 |
(Loss) income before taxes | $ (2,518) | $ (1,625) | $ 354 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax provision | |||
Federal | $ 55 | $ 102 | $ (5) |
State and local | 0 | 49 | 13 |
Foreign | (359) | (325) | (303) |
Total current income tax provision | 414 | 476 | 311 |
Deferred tax provision | |||
Federal | (113) | (77) | (121) |
State and local | 32 | (111) | (34) |
Foreign | (288) | (49) | (81) |
Total deferred income tax provision | (369) | (237) | (236) |
Total provision for income taxes | $ 45 | $ 239 | $ 75 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 21% | 21% | 21% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | (20.40%) | (29.10%) | 0% |
Difference in effective tax rate on foreign earnings and remittances(1) | (0.20%) | 0% | 8% |
Tax benefit from supply chain optimization | 0.50% | 0.80% | (5.80%) |
Unrecognized tax benefit, net of reversals | (0.80%) | 0.90% | 0.70% |
Tax impact on business divestitures | (3.70%) | (5.90%) | 4% |
Deferred taxes on deemed repatriation(2) | 0.50% | (5.60%) | 2.70% |
Global intangible low-taxed income | (0.40%) | (0.80%) | (4.10%) |
Foreign-derived intangible income | 0% | 1.10% | 1.60% |
U.S. foreign tax credit - general limitation | 0.20% | 0.10% | (3.10%) |
Research and development credit | 0.50% | 0.80% | (1.40%) |
Acquisition costs | 0% | 0% | 2.40% |
Establishment (release) of valuation allowance on state deferred | 0% | 0% | (3.00%) |
State and local taxes including rate changes(3) | (1.70%) | 4.30% | (4.80%) |
Tax impact on internal asset transfer | 0.053 | 0 | 0 |
Other, net | (2.60%) | (2.30%) | (2.00%) |
Effective tax rate | (1.80%) | (14.70%) | 21.20% |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation between U.S. Federal Statutory Income Tax Rate to Actual Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 21% | 21% | 21% |
Release of valuation allowance on state deferred | 0% | 0% | (3.00%) |
State and local taxes | (1.70%) | 4.30% | (4.80%) |
Other, net | (2.60%) | (2.30%) | (2.00%) |
Effective tax rate | (1.80%) | (14.70%) | 21.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [Line Items] | |||
Global intangible low-taxed income expense | $ 64 | ||
Foreign derived intangible income expense | $ 54 | ||
U.S. federal tax rate | 21% | 21% | 21% |
Valuation allowance | $ 324 | $ 262 | |
Operating loss carryforwards | 332 | 315 | |
Valuation allowance for net operating loss carryforwards | 324 | ||
Reduction in accrual for interest and penalties | 12 | 1 | $ 19 |
Unrecognized tax benefits, including interest | 170 | ||
Deferred Tax Liabilities, Deemed Repatriation | 155 | 166 | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 6 | 5 | 12 |
Other liabilities [Member] | |||
Income Taxes [Line Items] | |||
Unrecognized tax benefits that would impact effective tax rate | 123 | 98 | 130 |
Other Current Liabilities [Member] | |||
Income Taxes [Line Items] | |||
Unrecognized tax benefits that would impact effective tax rate | 0 | 14 | 1 |
2018 to 2037 [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 311 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 106 | ||
Tax credit carryforwards | 21 | ||
Indefinite [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 205 | ||
Two Thousand Twenty Two To Two Thousand Forty One | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 301 | ||
Tax credit carryforwards | 14 | ||
Other Liabilities [Member] | |||
Income Taxes [Line Items] | |||
Accrued interest and penalties | 47 | 31 | 36 |
Other Current Liabilities [Member] | |||
Income Taxes [Line Items] | |||
Accrued interest and penalties | 0 | $ 4 | $ 1 |
Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Deferred Tax Liabilities, Deemed Repatriation | 155 | ||
Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Deferred Tax Liabilities, Deemed Repatriation | $ 0 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Employee and retiree benefits | $ 118 | $ 61 |
Credit and net operating loss carryforwards | 332 | 315 |
Deferred Tax Assets, in Process Research and Development | 125 | 84 |
Interest limitation | 127 | 3 |
Inventory | 35 | 19 |
Deferred Tax Asset Lease Obligations | 170 | 151 |
Other, net | 114 | 131 |
Gross deferred tax assets | 1,021 | 764 |
Property, plant and equipment, net | (239) | (229) |
Intangible assets(1) | (1,792) | (2,049) |
Deferred Tax Liabilities, Right of Use Assets | (170) | (151) |
Loss on foreign currency translation | 0 | (23) |
Deferred taxes on deemed repatriation | (155) | (166) |
Gross deferred tax liabilities | (2,356) | (2,618) |
Valuation allowance | (324) | (262) |
Total net deferred tax liabilities | $ (1,659) | $ (2,116) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance of unrecognized tax benefits at beginning of year | $ 112 | $ 130 | $ 99 |
Gross amount of increases in unrecognized tax benefits as a result of positions taken during a prior year(1) | 1 | 1 | 42 |
Gross amount of decreases in unrecognized tax benefits as a result of positions taken during a prior year | 0 | (18) | (3) |
Gross amount of increases in unrecognized tax benefits as a result of positions taken during the current year | 19 | 31 | 5 |
The amounts of decreases in unrecognized benefits relating to settlements with taxing authorities | (3) | (27) | (1) |
Reduction in unrecognized tax benefits due to the lapse of applicable statute of limitation | (6) | (5) | (12) |
Balance of unrecognized tax benefits at end of year | 123 | 112 | 130 |
Income Taxes Disclosure [Line Items] | |||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 0 | 18 | 3 |
Gross amount of increases in unrecognized tax benefits as a result of positions taken during a prior year(1) | 1 | 1 | 42 |
Other Current Liabilities [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Accrued interest and penalties | 0 | 4 | 1 |
Other Current Liabilities [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Unrecognized tax benefits that would impact effective tax rate | $ 0 | $ 14 | $ 1 |
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, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net (Loss) Income | |||
Net (loss) income available to IFF shareholders | $ (2,567) | $ (1,871) | $ 270 |
Net (loss) income available to IFF shareholders | $ (2,565) | $ (1,868) | $ 268 |
Shares | |||
Average number of shares outstanding - basic (in shares) | 255 | 255 | 243 |
Average number of shares outstanding - diluted (in shares) | 255 | 255 | 243 |
Net income per share - basic (in dollars per share) | |||
Net income per share - basic (in dollars per share) | $ (10.05) | $ (7.32) | $ 1.11 |
Net income per share - diluted (in dollars per share) | $ (10.05) | $ (7.32) | $ 1.10 |
(Increase) Decrease In Redemption Value, Redeemable Noncontrolling Interest | $ 2 | $ 3 | $ (2) |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - $ / shares | 12 Months Ended | ||||
Feb. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 15, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.125 | $ 0.125 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 200,000 | 300,000 | |||
Participating Securities, Distributed And Undistributed Earnings (Loss), Difference Between Basic Net Income (Loss) Per Share | $ 0 | $ 0 | $ 0 | ||
Participating Securities, Distributed And Undistributed Earnings (Loss), Difference Between Diluted Net Income (Loss) Per Share | $ 0 | $ 0 | $ 0.01 | ||
Share Equivalents | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 400,000 | 300,000 | 0 | ||
Nutrition & Biosciences, Inc | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Business acquisition, equity interest issued or issuable, number of shares | 141,740,461 | ||||
Common stock, par value (in dollars per share) | $ 0.125 | $ 0.125 | |||
Nutrition & Biosciences, Inc | International Flavors & Fragrances Inc | DuPont de Nemours, Inc [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Percentage of voting interest acquired | 55.40% |
Net Income Per Share - TEU (Det
Net Income Per Share - TEU (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Sep. 15, 2021 | Sep. 17, 2018 | Dec. 31, 2021 | Sep. 14, 2021 | |
Earnings Per Share [Abstract] | ||||
Tangible equity units issued | 16,500,000 | |||
Tangible equity units proceeds | $ 800 | |||
Price for basic share (in dollars per share) | $ 0.330911 | |||
Price for diluted share (usd per share) | $ 0.330911 | |||
Stock Issued During Period, Shares, Issued for Services | 5,460,031 | |||
Tangible Equity Units Final Settlement Rate | $ 0.330911 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $ 3.24 | $ 3.20 | $ 3.12 |
Dividends payable | $ 207 | $ 206 | $ 201 |
Dividend per share declared (in dollars per share) | $ 0.81 | $ 0.81 | $ 0.79 |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Feb. 01, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares subject to outstanding awards (in shares) | 1,817,519 | ||||||
Shares remaining available for future awards (in shares) | 748,082 | ||||||
Target payout, cycle | 3 years | 3 years | |||||
Percentage of target dollar value of the award converted to a number of notional shares | 50% | ||||||
Total stock-based compensation | $ 67 | $ 51 | $ 62 | ||||
Nutrition & Biosciences, Inc | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Business acquisition, equity interest issued or issuable, number of shares | 141,740,461 | ||||||
Equity Issued in Business Combination, Fair Value Disclosure | $ 25 | ||||||
Business Acquisition, Post-Combination Service Period | 3 years | ||||||
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted | $ 0 | ||||||
Long-Term Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Target payout percentage, cash | 50% | ||||||
Target payout percentage, stock | 100% | 50% | |||||
2018-2020 Cycle [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, shares (in shares) | 0 | ||||||
Two Thousand Twenty-One Plan [Domain] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized for issuance (in shares) | 2,290,000 | ||||||
Two Thousand Nineteen To Two Thousand Twenty-One Cycle | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, shares (in shares) | 0 | ||||||
Two Thousand Twenty-One To Two Thousand Twenty-Three Cycle | Subsequent Event [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation, shares (in shares) | 5,333 | ||||||
RSU's [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period, in years | 3 years | ||||||
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted | $ 67 | ||||||
RSU's [Member] | Nutrition & Biosciences, Inc | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Business acquisition, equity interest issued or issuable, number of shares | 258,572 | ||||||
SSAR's [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contractual term, in years | 7 years | ||||||
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted | $ 1 | ||||||
SSAR's [Member] | Nutrition & Biosciences, Inc | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Business acquisition, equity interest issued or issuable, number of shares | 5,816 | ||||||
Share-based Payment Arrangement, Option | Nutrition & Biosciences, Inc | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Business acquisition, equity interest issued or issuable, number of shares | 335,347 |
Stock Compensation Plans - Stoc
Stock Compensation Plans - Stock-Based Compensation Expense Included in Consolidated Statement of Income and Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation | $ 67 | $ 51 | $ 62 |
Less tax benefit | (11) | (8) | (13) |
Total stock-based compensation, net of tax | 56 | 43 | 49 |
Equity-based awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation | 65 | 49 | 54 |
Liability-based awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation | $ 2 | $ 2 | $ 8 |
Stock Compensation Plans - SSAR
Stock Compensation Plans - SSAR's and Stock Option - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SSAR's [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term, in years | 7 years | ||
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted | $ 1 | ||
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted, weighted average period, in years | 1 year 1 month 20 days | ||
SSAR's and Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average exercise price, exercisable (USD per share) | $ 109.59 | $ 109.50 | $ 109.77 |
Intrinsic value of options/SSAR's exercised | $ 1 | $ 2 | $ 3 |
Stock Compensation Plans - SS_2
Stock Compensation Plans - SSAR's and Stock Option Activity (Detail) - SSAR's and Options [Member] - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Shares Subject to SSARs/Options | ||
Beginning balance (in shares) | 331 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (8) | |
Cancelled (in shares) | (8) | |
Ending balance (in shares) | 315 | 331 |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 115.35 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 68.67 | |
Cancelled (in dollars per share) | 122.28 | |
Ending balance (in dollars per share) | $ 116.26 | $ 115.35 |
SSARs/ Options Exercisable (in shares) | 194 | 182 |
Expected to Vest (in shares) | 118 | |
Expected to Vest (in dollars per share) | $ 126.99 |
Stock Compensation Plans - SS_3
Stock Compensation Plans - SSAR's and Stock Option Outstanding (Detail) - SSAR's and Options [Member] - Over $65 $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number Outstanding (in shares) | shares | 315 |
Weighted Average Remaining Contractual Life (in years) | 4 years 8 months 15 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 116.26 |
Aggregate Intrinsic Value | $ | $ 0 |
Number Exercisable (in shares) | shares | 194 |
Weighted Average Remaining Contractual Life (in years) | 4 years 3 months 29 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 109.59 |
Aggregate Intrinsic Value | $ | $ 0 |
Stock Compensation Plans - SS_4
Stock Compensation Plans - SSAR's and Stock Option Exercisable (Detail) - SSAR's and Options [Member] - Over $65 $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number Exercisable (in shares) | shares | 194 |
Weighted Average Remaining Contractual Life (in years) | 4 years 3 months 29 days |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 109.59 |
Aggregate Intrinsic Value | $ | $ 0 |
Stock Compensation Plans - Rest
Stock Compensation Plans - Restricted Stock Units Plan - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
RSU's [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 100% |
Vesting period, in years | 3 years |
Total fair value of vested | $ 38 |
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted | $ 67 |
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted, weighted average period, in years | 1 year 11 months 8 days |
Purchased Restricted Stock Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total fair value of vested | $ 3 |
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted | $ 1 |
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted, weighted average period, in years | 1 year 21 days |
Stock Compensation Plans - RSU,
Stock Compensation Plans - RSU, PRS and Cash RSU Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RSU's [Member] | |||
Number of Shares | |||
Beginning balance (in shares) | 937,000 | ||
Granted (in shares) | 843,000 | ||
Vested (in shares) | (315,000) | ||
Forfeited (in shares) | (78,000) | ||
Change due to performance conditions, net (in shares) | (20,000) | ||
Ending balance (in shares) | 1,367,000 | 937,000 | |
Weighted Average Grant Date Fair Value Per Share | |||
Beginning balance (in dollars per share) | $ 120.81 | ||
Granted (in dollars per share) | 87.31 | ||
Vested (in dollars per share) | 119.15 | ||
Forfeited (in dollars per share) | 105.63 | ||
Change due to performance conditions, net (in dollars per share) | 134.04 | ||
Ending balance (in dollars per share) | $ 101.50 | $ 120.81 | |
Cash RSU's [Member] | |||
Number of Shares | |||
Beginning balance (in shares) | 119,000 | ||
Granted (in shares) | 19,000 | ||
Vested (in shares) | (40,000) | ||
Forfeited (in shares) | (7,000) | ||
Ending balance (in shares) | 91,000 | 119,000 | |
Weighted Average Grant Date Fair Value Per Share | |||
Beginning balance (in dollars per share) | $ 104.84 | ||
Granted (in dollars per share) | 80.97 | ||
Vested (in dollars per share) | 94.72 | ||
Forfeited (in dollars per share) | 82.24 | ||
Ending balance (in dollars per share) | $ 80.97 | $ 104.84 | |
Purchased Restricted Stock Unit | |||
Number of Shares | |||
Beginning balance (in shares) | 90,000 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | (26,000) | ||
Forfeited (in shares) | (3,000) | ||
Ending balance (in shares) | 61,000 | 90,000 | |
Weighted Average Grant Date Fair Value Per Share | |||
Beginning balance (in dollars per share) | $ 133.36 | ||
Granted (in dollars per share) | 0 | ||
Vested (in dollars per share) | 131.31 | ||
Forfeited (in dollars per share) | 138.98 | ||
Ending balance (in dollars per share) | $ 133.96 | $ 133.36 | |
Issued Shares (in shares) | 0 | 43,690 | 61,870 |
Aggregate purchase price (in dollars per share) | $ 0 | $ 6 | $ 9 |
Covered shares (in shares) | 0 | 21,845 | 30,935 |
Stock Compensation Plans - Purc
Stock Compensation Plans - Purchased Restricted Stock Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
PRSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of vested | $ 38 | ||
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted | $ 67 | ||
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted, weighted average period, in years | 1 year 11 months 8 days | ||
Purchased Restricted Stock Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issued Shares (in shares) | 0 | 43,690 | 61,870 |
Aggregate Purchases | $ 0 | $ 6 | $ 9 |
Covered shares (in shares) | 0 | 21,845 | 30,935 |
Total fair value of vested | $ 3 | ||
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted | $ 1 | ||
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted, weighted average period, in years | 1 year 21 days |
Stock Compensation Plans - Liab
Stock Compensation Plans - Liability Awards - Additional Information (Detail) - Cash RSU's [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage granted in cash to eligible employees | 100% |
Vesting percentage | 100% |
Vesting period, in years | 3 years |
Total fair value of vested | $ 4 |
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted | $ 2 |
Unrecognized compensation cost related to non-vested stock options and SSAR, RSU, PRS and Cash RSU awards granted, weighted average period, in years | 1 year 5 months 12 days |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) category segment customer | Dec. 31, 2022 USD ($) customer | Dec. 31, 2021 USD ($) customer | |
Segment Reporting Information [Line Items] | |||
Number of fragrance categories | category | 2 | ||
Property, plant and equipment | $ 4,240 | $ 4,203 | |
Number of Operating Segments | segment | 4 | ||
Strategic Initiative Costs | $ 31 | 8 | $ 0 |
Restructuring and Other Charges, net | (68) | (12) | (41) |
Goodwill, Impairment Loss | (2,623) | (2,250) | 0 |
Impairment, Long-Lived Asset, Held-for-Use | 0 | (120) | 0 |
Business Combination, Divestitures And Integration Costs | (174) | (201) | (240) |
Legal Fees | (50) | 0 | 0 |
Other (Costs) Credits | (2) | (11) | (35) |
Business Divestiture Costs | 108 | 110 | 42 |
Business Combination, Integration Related Costs | 59 | 94 | 105 |
Acquisition related costs | 7 | (3) | 93 |
Nutrition & Biosciences, Inc | |||
Segment Reporting Information [Line Items] | |||
Business Combination, Inventory Step-Up Costs | 0 | 0 | (368) |
Acquisition related costs | $ 91 | ||
U.S. Plans | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment | 1,742 | 1,771 | |
CHINA | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment | $ 228 | $ 258 | |
Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of customers that accounted for more than 10% of consolidated net sales | customer | 0 | 0 | 0 |
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark | |||
Segment Reporting Information [Line Items] | |||
Number Of Customers | customer | 0 | 0 | 0 |
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark | Customer One | |||
Segment Reporting Information [Line Items] | |||
Concentration risk threshold | 10% | 10% | 10% |
Customer Concentration Risk [Member] | Non-US [Member] | Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk threshold | 7% | 6% | 7% |
Segment Information - Reportabl
Segment Information - Reportable Segment Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Segment assets | $ 30,978 | $ 35,522 | |
Acquisition Related Costs | (7) | 3 | $ (93) |
Integration Related Costs | (59) | (94) | (105) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (2,518) | (1,625) | 354 |
Restructuring and Other Charges, net | (68) | (12) | (41) |
Gain on Sale of Assets | 3 | 3 | 1 |
Interest expense | (380) | (336) | (289) |
Other (expense) income, net | (28) | 37 | 58 |
Legal Fees | 50 | 0 | 0 |
Revenue | 11,479 | 12,440 | 11,656 |
Segment Adjusted Operating EBITDA | 1,980 | 2,455 | 2,425 |
Business Divestiture Costs | (108) | (110) | (42) |
Other Depreciation and Amortization | (1,142) | (1,179) | (1,156) |
Goodwill, Impairment Loss | (2,623) | (2,250) | 0 |
Impairment, Long-Lived Asset, Held-for-Use | 0 | (120) | 0 |
Nourish | |||
Segment Reporting Information [Line Items] | |||
Restructuring and Other Charges, net | (37) | (8) | (32) |
Goodwill, Impairment Loss | (2,623) | 0 | |
Health & Biosciences | |||
Segment Reporting Information [Line Items] | |||
Restructuring and Other Charges, net | (13) | (2) | (5) |
Goodwill, Impairment Loss | 0 | (2,250) | |
Scent [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring and Other Charges, net | (15) | (1) | (3) |
Goodwill, Impairment Loss | 0 | 0 | |
Pharma Solutions | |||
Segment Reporting Information [Line Items] | |||
Restructuring and Other Charges, net | (3) | (1) | (1) |
Goodwill, Impairment Loss | 0 | 0 | |
Operating Segments [Member] | Nourish | |||
Segment Reporting Information [Line Items] | |||
Segment assets | 12,893 | 17,062 | |
Revenue | 6,060 | 6,829 | 6,264 |
Segment Adjusted Operating EBITDA | 732 | 1,176 | 1,172 |
Operating Segments [Member] | Health & Biosciences | |||
Segment Reporting Information [Line Items] | |||
Segment assets | 10,666 | 10,924 | |
Revenue | 2,081 | 2,339 | 2,329 |
Segment Adjusted Operating EBITDA | 588 | 634 | 625 |
Operating Segments [Member] | Scent [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment assets | 4,274 | 4,309 | |
Revenue | 2,393 | 2,301 | 2,254 |
Segment Adjusted Operating EBITDA | 461 | 423 | 463 |
Operating Segments [Member] | Pharma Solutions | |||
Segment Reporting Information [Line Items] | |||
Segment assets | 3,145 | 3,227 | |
Revenue | 945 | 971 | 809 |
Segment Adjusted Operating EBITDA | 199 | 222 | 165 |
Nutrition & Biosciences, Inc | |||
Segment Reporting Information [Line Items] | |||
Acquisition Related Costs | (91) | ||
Business Combination, Inventory Step-Up Costs | $ 0 | $ 0 | $ (368) |
Segment Information - Capital E
Segment Information - Capital Expenditure and Depreciation and Amortization by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 503 | $ 504 | $ 393 |
Depreciation and amortization | 1,142 | 1,179 | 1,156 |
Operating Segments [Member] | Nourish | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 252 | 215 | 183 |
Depreciation and amortization | 553 | 596 | 594 |
Operating Segments [Member] | Health & Biosciences | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 85 | 160 | 139 |
Depreciation and amortization | 374 | 363 | 353 |
Operating Segments [Member] | Scent [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 62 | 56 | 41 |
Depreciation and amortization | 78 | 81 | 84 |
Operating Segments [Member] | Pharma Solutions | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 104 | 73 | 30 |
Depreciation and amortization | $ 137 | $ 139 | $ 125 |
Segment Information - Net Sales
Segment Information - Net Sales by Geographic Area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 11,479 | $ 12,440 | $ 11,656 |
Europe, Africa and Middle East [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,834 | 4,219 | 4,093 |
Greater Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,677 | 2,876 | 2,728 |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,477 | 3,853 | 3,499 |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,491 | 1,492 | 1,336 |
Geographic Distribution, Domestic [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,185 | 3,611 | 3,211 |
Geographic Distribution, Foreign [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 8,294 | $ 8,829 | $ 8,445 |
Segment Information Segment Inf
Segment Information Segment Information - Schedule of Long Lived Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 4,240 | $ 4,203 |
U.S. Pension Plans [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 1,742 | 1,771 |
CHINA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 228 | 258 |
Other Countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 1,424 | 1,344 |
DENMARK | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 262 | 250 |
FINLAND | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 214 | 212 |
FRANCE | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 199 | 187 |
GERMANY | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 171 | $ 181 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Feb. 01, 2021 USD ($) benefit_plan | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of matching contribution if compensation percentage below low range | 100% | 100% | |
Matching participant's contribution, percentage on compensation | 6% | 4% | |
Percentage of matching contribution if compensation percentage between high range and low range | 75% | ||
Matching participant's contribution, percentage on compensation, range low | 4% | ||
Matching participant's contribution, percentage on compensation, range high | 8% | ||
Percentage of employees eligible to accrue benefits under the defined plan | 50% | ||
Matching participant's contribution, average percentage on compensation | 6% | ||
Retirement liabilities | $ 253,000,000 | $ 231,000,000 | |
Capital in excess of par value related to deferred compensation plan | 17,000,000 | 25,000,000 | |
Total cash surrender value of life insurance contracts | $ 49,000,000 | 45,000,000 | |
Percentage of active employees with pension and or other retirement benefit plans covered | 20% | ||
Nutrition & Biosciences, Inc | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net defined benefit plan liabilities | $ 221,000,000 | ||
Number of defined benefit plans assumed | benefit_plan | 20 | ||
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement liabilities | $ 52,000,000 | 53,000,000 | |
Pension Plan | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement liabilities | 44,000,000 | 47,000,000 | |
Contribution to the plans | $ 5,000,000 | 5,000,000 | |
Pension Plan | U.S. Plans | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target percentage of investment in equity securities | 10% | ||
Pension Plan | U.S. Plans | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target percentage of investment in equity securities | 90% | ||
Pension Plan | U.S. Plans | Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to the plans | $ 0 | ||
Pension Plan | U.S. Plans | Nonqualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to the plans | 5,000,000 | ||
Pension Plan | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement liabilities | 161,000,000 | 138,000,000 | |
Contribution to the plans | 31,000,000 | $ 31,000,000 | |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to the plans | $ 3,000,000 |
Employee Benefits - Plan Assets
Employee Benefits - Plan Assets and Benefit Obligations of Defined Benefit Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit (income) cost | $ (28) | $ (19) | $ (34) |
U.S. Plans | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for benefits earned | 0 | 1 | 1 |
Interest cost on projected benefit obligation | 25 | 15 | 71 |
Expected return on plan assets | (31) | (21) | (106) |
Net amortization and deferrals | 2 | 8 | 29 |
Settlements and curtailments | 0 | 0 | 0 |
Net periodic benefit (income) cost | (4) | 3 | (5) |
Defined contribution and other retirement plans | 30 | 33 | 36 |
Total expense | 26 | 36 | 31 |
Net actuarial loss (gain) | 27 | 0 | |
Recognized actuarial (loss) gain | (1) | (8) | |
Recognized prior service credit | 0 | 0 | |
Currency translation adjustment | 0 | 0 | |
Total loss (gain) recognized in OCI (before tax effects) | 26 | (8) | |
U.S. Plans | Pension Plan | Restatement Adjustment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost on projected benefit obligation | 15 | ||
Non-U.S. Plans | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for benefits earned | 21 | 34 | 41 |
Interest cost on projected benefit obligation | 36 | 17 | 10 |
Expected return on plan assets | (47) | (42) | (55) |
Net amortization and deferrals | (1) | 11 | 19 |
Settlements and curtailments | (8) | 0 | (10) |
Net periodic benefit (income) cost | 1 | 20 | 5 |
Defined contribution and other retirement plans | 51 | 29 | 33 |
Total expense | 52 | 49 | $ 38 |
Net actuarial loss (gain) | 70 | (143) | |
Recognized actuarial (loss) gain | 9 | (12) | |
Recognized prior service credit | 1 | 1 | |
Currency translation adjustment | 9 | (27) | |
Total loss (gain) recognized in OCI (before tax effects) | $ 89 | (181) | |
Non-U.S. Plans | Pension Plan | Restatement Adjustment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for benefits earned | $ 34 |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic Benefit Cost and Changes in Plan Assets and Benefit Obligations Recognized in OCI (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit (income) cost | $ (28) | $ (19) | $ (34) |
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for benefits earned | 0 | 1 | 1 |
Interest cost on projected benefit obligation | 3 | 1 | 7 |
Net amortization and deferrals | (6) | (5) | (20) |
Net periodic benefit (income) cost | (3) | (3) | $ (12) |
Net actuarial loss (gain) | 3 | (16) | |
Recognized actuarial (loss) gain | 0 | (1) | |
Recognized prior service credit | 5 | 6 | |
Total loss (gain) recognized in OCI (before tax effects) | $ 8 | $ (11) |
Employee Benefits - Weighted-Av
Employee Benefits - Weighted-Average Actuarial Assumption Used to Determine Expense (Detail) - Pension Plan | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.42% | 2.86% | 2.51% |
Expected return on plan assets | 6% | 3.80% | 3.80% |
Rate of compensation increase | 3.75% | 3.25% | 3.25% |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.98% | 1.43% | 0.85% |
Expected return on plan assets | 4.92% | 3.52% | 4.21% |
Rate of compensation increase | 3.01% | 2.72% | 2.56% |
Employee Benefits - Changes in
Employee Benefits - Changes in Postretirement Benefit Obligation and Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 50 | $ 66 | |
Service cost for benefits earned | 0 | 1 | $ 1 |
Interest cost on projected benefit obligation | 3 | 1 | 7 |
Actuarial (gain) loss | 3 | (16) | |
Adjustments for expense/tax contained in service cost | 0 | 0 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (3) | (2) | |
Curtailments/settlements | 0 | 0 | |
Translation adjustments | 0 | 0 | |
Other | (1) | (1) | |
Benefit obligation at end of year | 52 | 50 | 66 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Employer contributions | 3 | ||
Postretirement Benefits | Restatement Adjustment | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Interest cost on projected benefit obligation | 3 | 2 | |
U.S. Plans | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 500 | 662 | |
Service cost for benefits earned | 0 | 1 | 1 |
Interest cost on projected benefit obligation | 25 | 15 | 71 |
Actuarial (gain) loss | 38 | (139) | |
Adjustments for expense/tax contained in service cost | 0 | 0 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (39) | (38) | |
Curtailments/settlements | (1) | 0 | |
Translation adjustments | 0 | 0 | |
Other | 1 | (1) | |
Benefit obligation at end of year | 524 | 500 | 662 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 498 | 649 | |
Actual return on plan assets | 41 | (118) | |
Employer contributions | 5 | 5 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid | (39) | (38) | |
Settlements | 0 | 0 | |
Translation adjustments | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets at end of year | 505 | 498 | 649 |
Funded status at end of year | (19) | (2) | |
U.S. Plans | Pension Plan | Restatement Adjustment | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Interest cost on projected benefit obligation | 15 | ||
Non-U.S. Plans | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 930 | 1,501 | |
Service cost for benefits earned | 21 | 34 | 41 |
Interest cost on projected benefit obligation | 36 | 17 | 10 |
Actuarial (gain) loss | 77 | (468) | |
Adjustments for expense/tax contained in service cost | (2) | (2) | |
Plan participants’ contributions | 4 | 4 | |
Benefits paid | (33) | (32) | |
Curtailments/settlements | (21) | (21) | |
Translation adjustments | 45 | (104) | |
Other | (1) | 1 | |
Benefit obligation at end of year | 1,056 | 930 | 1,501 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 920 | 1,320 | |
Actual return on plan assets | 50 | (286) | |
Employer contributions | 31 | 31 | |
Plan participants’ contributions | 4 | 4 | |
Benefits paid | (33) | (32) | |
Settlements | (21) | (21) | |
Translation adjustments | 44 | (96) | |
Other | 5 | 0 | |
Fair value of plan assets at end of year | 1,000 | 920 | $ 1,320 |
Funded status at end of year | $ (56) | (10) | |
Non-U.S. Plans | Pension Plan | Restatement Adjustment | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost for benefits earned | $ 34 |
Employee Benefits - Amounts Rec
Employee Benefits - Amounts Recognized in Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | $ 139 | $ 180 |
Retirement liabilities | (253) | (231) |
U.S. Plans | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 30 | 51 |
Other current liabilities | (5) | (6) |
Retirement liabilities | (44) | (47) |
Net amount recognized | (19) | (2) |
Non-U.S. Plans | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | 109 | 129 |
Other current liabilities | (4) | (1) |
Retirement liabilities | (161) | (138) |
Net amount recognized | $ (56) | $ (10) |
Employee Benefits - Amounts R_2
Employee Benefits - Amounts Recognized in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | $ 0 | $ (3) |
Prior service cost (credit) | (4) | (9) |
Total AOCI (before tax effects) | (4) | (12) |
U.S. Plans | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | 155 | 129 |
Prior service cost (credit) | 0 | 0 |
Total AOCI (before tax effects) | 155 | 129 |
Non-U.S. Plans | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain) loss | 198 | 110 |
Prior service cost (credit) | (2) | (3) |
Total AOCI (before tax effects) | $ 196 | $ 107 |
Employee Benefits - Accumulated
Employee Benefits - Accumulated Benefit Obligation (Detail) - Pension Plan - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated Benefit Obligation — end of year | $ 520 | $ 495 |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 0 | 0 |
Accumulated benefit obligation | 47 | 49 |
Fair value of plan assets | 0 | 0 |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | $ 47 | $ 49 |
Discount rate | 4.47% | 5.42% |
Rate of compensation increase | 3.75% | 3.75% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated Benefit Obligation — end of year | $ 988 | $ 870 |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 41 | 45 |
Accumulated benefit obligation | 165 | 150 |
Fair value of plan assets | 36 | 41 |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | $ 185 | $ 169 |
Discount rate | 3.59% | 4.02% |
Rate of compensation increase | 2.83% | 3% |
Employee Benefits - Estimated F
Employee Benefits - Estimated Future Benefit Payments (Detail) $ in Millions | Dec. 31, 2023 USD ($) |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 4 |
2025 | 4 |
2026 | 4 |
2027 | 4 |
2028 | 4 |
2029 - 2033 | 18 |
Required Company Contributions in the Following Year (2024) | 0 |
U.S. Plans | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 99 |
2025 | 38 |
2026 | 38 |
2027 | 37 |
2028 | 36 |
2029 - 2033 | 166 |
Required Company Contributions in the Following Year (2024) | 5 |
Non-U.S. Plans | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 39 |
2025 | 36 |
2026 | 41 |
2027 | 40 |
2028 | 45 |
2029 - 2033 | 239 |
Required Company Contributions in the Following Year (2024) | $ 20 |
Employee Benefits - Percentage
Employee Benefits - Percentage of Assets Invested (Detail) - Pension Plan | Dec. 31, 2023 | Dec. 31, 2022 |
U.S. Plans | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of assets invested | 1% | 2% |
U.S. Plans | Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of assets invested | 13% | 47% |
U.S. Plans | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of assets invested | 86% | 51% |
U.S. Plans | Property | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of assets invested | 0% | 0% |
U.S. Plans | Alternative and other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of assets invested | 0% | 0% |
Non-U.S. Plans | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of assets invested | 3% | 3% |
Non-U.S. Plans | Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of assets invested | 16% | 18% |
Non-U.S. Plans | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of assets invested | 42% | 37% |
Non-U.S. Plans | Property | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of assets invested | 8% | 9% |
Non-U.S. Plans | Alternative and other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of assets invested | 31% | 33% |
Employee Benefits - Fair Value
Employee Benefits - Fair Value Hierarchy of Plan Assets (Detail) - Pension Plan - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 505 | $ 498 | $ 649 |
U.S. Plans | Fair Value Of Plan Assets Before Receivables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 504 | 497 | |
U.S. Plans | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 9 | |
U.S. Plans | Government & Government Agency Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 6 | |
U.S. Plans | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 82 | 73 | |
U.S. Plans | Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 5 | |
U.S. Plans | Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 406 | 404 | |
U.S. Plans | Receivables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
U.S. Plans | Level 1 | Fair Value Of Plan Assets Before Receivables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Level 1 | Government & Government Agency Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Level 1 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Level 1 | Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Level 2 | Fair Value Of Plan Assets Before Receivables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 98 | 93 | |
U.S. Plans | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 9 | |
U.S. Plans | Level 2 | Government & Government Agency Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 6 | |
U.S. Plans | Level 2 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 82 | 73 | |
U.S. Plans | Level 2 | Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 5 | |
U.S. Plans | Level 3 | Fair Value Of Plan Assets Before Receivables | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Level 3 | Government & Government Agency Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Level 3 | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Level 3 | Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Plans | Fair Value Measured at Net Asset Value Per Share | Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 65 | 234 | |
U.S. Plans | Fair Value Measured at Net Asset Value Per Share | Fixed Income Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 341 | 170 | |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,000 | 920 | $ 1,320 |
Non-U.S. Plans | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27 | 23 | |
Non-U.S. Plans | U.S. Large Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 90 | 73 | |
Non-U.S. Plans | U.S. Mid Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 6 | |
Non-U.S. Plans | U.S. Small Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | ||
Non-U.S. Plans | Non-U.S. Large Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 50 | 79 | |
Non-U.S. Plans | Non-U.S. Mid Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 4 | |
Non-U.S. Plans | Non-U.S. Small Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Non-U.S. Plans | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 7 | |
Non-U.S. Plans | U.S. Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29 | 35 | |
Non-U.S. Plans | Non-U.S. Treasuries/Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 194 | 144 | |
Non-U.S. Plans | Non-U.S. Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 138 | 109 | |
Non-U.S. Plans | Non-U.S. Asset-Backed Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 56 | 46 | |
Non-U.S. Plans | Non-U.S. Other Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Non-U.S. Plans | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 247 | 177 | |
Non-U.S. Plans | Derivative Financial Instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28 | 56 | |
Non-U.S. Plans | Absolute Return Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 6 | |
Non-U.S. Plans | Private Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27 | ||
Non-U.S. Plans | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 67 | ||
Non-U.S. Plans | Property | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 84 | 85 | |
Non-U.S. Plans | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,000 | 920 | |
Non-U.S. Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 475 | 407 | |
Non-U.S. Plans | Level 1 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27 | 14 | |
Non-U.S. Plans | Level 1 | U.S. Large Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 90 | 73 | |
Non-U.S. Plans | Level 1 | U.S. Mid Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 6 | |
Non-U.S. Plans | Level 1 | U.S. Small Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | ||
Non-U.S. Plans | Level 1 | Non-U.S. Large Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 50 | 79 | |
Non-U.S. Plans | Level 1 | Non-U.S. Mid Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 4 | |
Non-U.S. Plans | Level 1 | Non-U.S. Small Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Non-U.S. Plans | Level 1 | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 7 | |
Non-U.S. Plans | Level 1 | U.S. Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29 | 35 | |
Non-U.S. Plans | Level 1 | Non-U.S. Treasuries/Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 194 | 144 | |
Non-U.S. Plans | Level 1 | Non-U.S. Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 50 | 34 | |
Non-U.S. Plans | Level 1 | Non-U.S. Asset-Backed Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 1 | Non-U.S. Other Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Non-U.S. Plans | Level 1 | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 1 | Derivative Financial Instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 1 | Absolute Return Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 4 | |
Non-U.S. Plans | Level 1 | Private Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Plans | Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Plans | Level 1 | Property | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 4 | |
Non-U.S. Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 448 | 429 | |
Non-U.S. Plans | Level 2 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 9 | |
Non-U.S. Plans | Level 2 | U.S. Large Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 2 | U.S. Mid Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 2 | U.S. Small Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Plans | Level 2 | Non-U.S. Large Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 2 | Non-U.S. Mid Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 2 | Non-U.S. Small Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 2 | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 2 | U.S. Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 2 | Non-U.S. Treasuries/Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 2 | Non-U.S. Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 88 | 75 | |
Non-U.S. Plans | Level 2 | Non-U.S. Asset-Backed Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 56 | 46 | |
Non-U.S. Plans | Level 2 | Non-U.S. Other Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 2 | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 247 | 177 | |
Non-U.S. Plans | Level 2 | Derivative Financial Instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28 | 56 | |
Non-U.S. Plans | Level 2 | Absolute Return Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Non-U.S. Plans | Level 2 | Private Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27 | ||
Non-U.S. Plans | Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 64 | ||
Non-U.S. Plans | Level 2 | Property | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 77 | 84 | |
Non-U.S. Plans | Level 3 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | U.S. Large Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | U.S. Mid Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | U.S. Small Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Plans | Level 3 | Non-U.S. Large Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | Non-U.S. Mid Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | Non-U.S. Small Cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | Emerging Markets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | U.S. Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | Non-U.S. Treasuries/Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | Non-U.S. Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | Non-U.S. Asset-Backed Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | Non-U.S. Other Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | Derivative Financial Instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | Absolute Return Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Level 3 | Private Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Plans | Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 3 | |
Non-U.S. Plans | Level 3 | Property | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 77 | $ 81 |
Employee Benefits - Reconciliat
Employee Benefits - Reconciliation of Level 3 Non-U.S. Plan Assets Held (Detail) - Pension Plan - Non-U.S. Plans $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Fair value of plan assets at beginning of year | $ 920 |
Fair value of plan assets at end of year | 1,000 |
Property | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Fair value of plan assets at beginning of year | 85 |
Fair value of plan assets at end of year | 84 |
Other | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Fair value of plan assets at beginning of year | 67 |
Fair Value, Inputs, Level 1, 2 and 3 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Fair value of plan assets at beginning of year | 920 |
Fair value of plan assets at end of year | 1,000 |
Level 3 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Fair value of plan assets at beginning of year | 84 |
Actual return on plan assets | (4) |
Purchases, sales and settlements | (3) |
Fair value of plan assets at end of year | 77 |
Level 3 | Property | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Fair value of plan assets at beginning of year | 81 |
Actual return on plan assets | (4) |
Purchases, sales and settlements | 0 |
Fair value of plan assets at end of year | 77 |
Level 3 | Other | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Fair value of plan assets at beginning of year | 3 |
Actual return on plan assets | 0 |
Purchases, sales and settlements | (3) |
Fair value of plan assets at end of year | $ 0 |
Employee Benefits - Weighted Av
Employee Benefits - Weighted Average Assumptions Used to Determine Postretirement Benefit Expense and Obligation (Detail) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Liability | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.10% | 5.40% |
Current medical cost trend rate | 7.25% | 6.50% |
Ultimate medical cost trend rate | 4.75% | 4.75% |
Expense | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.40% | 2.90% |
Current medical cost trend rate | 6.50% | 6.75% |
Ultimate medical cost trend rate | 4.75% | 4.75% |
Financial Instruments - Carryin
Financial Instruments - Carrying Amount and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | |
Commercial paper | $ 0 | $ 187 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 703 | 483 |
Credit facilities and bank overdrafts | 3 | 106 |
Derivative assets(3) | 41 | 1 |
Derivative liabilities(3) | 165 | 75 |
Commercial paper | 0 | 187 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 703 | 483 |
Credit facilities and bank overdrafts | 3 | 106 |
Derivative assets(3) | 41 | 1 |
Derivative liabilities(3) | 165 | 75 |
Commercial paper | 0 | 187 |
Senior Notes - 2023 | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes, current | 0 | 300 |
Senior Notes - 2023 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes, current | 0 | 298 |
Senior Notes, Euro Notes, 2024 | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 532 | |
Senior notes, current | 552 | |
Senior Notes, Euro Notes, 2024 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 519 | |
Senior notes, current | 549 | |
Senior Notes, Euro Notes, 2026 | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 879 | 845 |
Senior Notes, Euro Notes, 2026 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 835 | 774 |
Senior Notes - 2028 | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 398 | 398 |
Senior Notes - 2028 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 389 | 380 |
Senior notes - 2047 | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 495 | 495 |
Senior notes - 2047 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 382 | 390 |
Senior Notes - 2048 | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 787 | 787 |
Senior Notes - 2048 | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 678 | 685 |
Senior Notes, Due Two Thousand Twenty Five | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 1,000 | 1,000 |
Senior Notes, Due Two Thousand Twenty Five | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 924 | 884 |
Senior Notes, Due Two Thousand Twenty Seven | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 1,212 | 1,215 |
Senior Notes, Due Two Thousand Twenty Seven | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 1,049 | 1,006 |
Senior Notes, Due Two Thousand Thirty | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 1,508 | 1,510 |
Senior Notes, Due Two Thousand Thirty | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 1,240 | 1,188 |
Senior Notes, Due Two Thousand Forty | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 773 | 774 |
Senior Notes, Due Two Thousand Forty | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 536 | 535 |
Senior Notes, Due Two Thousand Fifty | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 1,569 | 1,571 |
Senior Notes, Due Two Thousand Fifty | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 1,029 | 1,021 |
2024 Term Loan | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 625 | |
Senior notes, current | 270 | |
2024 Term Loan | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 625 | |
Senior notes, current | 270 | |
2026 Term Loan | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 625 | 625 |
2026 Term Loan | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 625 | $ 625 |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments Notional Amount Outstanding (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Forward Currency Contracts | ||
Schedule Of Information By Major Category Of Credit Derivatives Contracts [Line Items] | ||
Derivative instruments outstanding, net | $ (1,400) | $ 92 |
Currency Swap | ||
Schedule Of Information By Major Category Of Credit Derivatives Contracts [Line Items] | ||
Derivative instruments outstanding | 1,400 | 1,400 |
Commodity Contracts | ||
Schedule Of Information By Major Category Of Credit Derivatives Contracts [Line Items] | ||
Derivative instruments outstanding, net | $ 7 | $ (1) |
Financial Instruments - Deriv_2
Financial Instruments - Derivative Instruments Measured at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | $ 41 | |
Total Fair Value, Derivative Liabilities | $ 165 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | |
Foreign Currency Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | $ 41 | $ 1 |
Total Fair Value, Derivative Liabilities | 4 | |
Currency Swap | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Liabilities | 161 | 75 |
Fair Value of Derivatives Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | 0 | |
Total Fair Value, Derivative Liabilities | 161 | |
Fair Value of Derivatives Designated as Hedging Instrument [Member] | Foreign Currency Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | 0 | 0 |
Total Fair Value, Derivative Liabilities | 0 | |
Fair Value of Derivatives Designated as Hedging Instrument [Member] | Currency Swap | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Liabilities | 161 | 75 |
Fair Value of Derivatives Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | 41 | |
Total Fair Value, Derivative Liabilities | 4 | |
Fair Value of Derivatives Not Designated as Hedging Instrument | Foreign Currency Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Assets | 41 | 1 |
Total Fair Value, Derivative Liabilities | 4 | |
Fair Value of Derivatives Not Designated as Hedging Instrument | Currency Swap | ||
Derivatives, Fair Value [Line Items] | ||
Total Fair Value, Derivative Liabilities | $ 0 | $ 0 |
Financial Instruments - Deriv_3
Financial Instruments - Derivative Instruments Which Were Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Foreign Currency Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other (expense) income, net | Other (expense) income, net |
Commodity Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of goods sold | |
Fair Value of Derivatives Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) on derivative | $ (9) | $ 7 |
Fair Value of Derivatives Not Designated as Hedging Instrument | Foreign Currency Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) on derivative | (11) | 7 |
Fair Value of Derivatives Not Designated as Hedging Instrument | Commodity Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) on derivative | $ 2 | $ 0 |
Financial Instruments - Deriv_4
Financial Instruments - Derivative Instruments Designated as Cash Flow and Net Investment Hedging Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 0 | $ 0 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | (109) | 54 |
Total Fair Value, Derivative Assets | 41 | |
Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Fair Value, Derivative Assets | 0 | |
Fair Value of Derivatives Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Fair Value, Derivative Assets | 41 | |
Senior Notes Maturing 2021 through 2026 [Member] | Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | (26) | 43 |
Senior Notes, Euro Notes, 2024 | Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | (16) | 27 |
Cross Currency Swaps [Member] | Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax | (67) | (16) |
Foreign Currency Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Fair Value, Derivative Assets | 41 | 1 |
Foreign Currency Contracts | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Fair Value, Derivative Assets | 0 | 0 |
Foreign Currency Contracts | Fair Value of Derivatives Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total Fair Value, Derivative Assets | $ 41 | $ 1 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
May 18, 2017 USD ($) | Sep. 30, 2022 USD ($) swap | Mar. 31, 2016 USD ($) Agreement | Mar. 31, 2016 EUR (€) Agreement | Dec. 31, 2023 USD ($) swap | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Derivatives, Fair Value [Line Items] | |||||||
Total fair value, derivative assets | $ 41 | ||||||
Proceeds from unwinding of derivative instruments | 0 | $ 173 | $ 0 | ||||
Derivative liability, fair value, gross liability | 165 | ||||||
Derivative, net hedge ineffectiveness gain (loss) | 15 | 10 | |||||
Currency Swap | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative instruments outstanding | 1,400 | 1,400 | |||||
Derivative liability, fair value, gross liability | 161 | 75 | |||||
Interest Rate Swap | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Loss incurred on termination of interest rate swaps | $ 3 | € 3 | |||||
Gain on deal contingent derivatives | $ 5 | ||||||
Number of interest rate derivatives held | Agreement | 2 | 2 | |||||
2022 Cross Currency Swaps | Net Investment Hedging [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative instruments outstanding | $ 1,400 | ||||||
Fair Value of Derivatives Not Designated as Hedging Instrument | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Amount of gain or (loss) on derivative | (9) | 7 | |||||
Total fair value, derivative assets | 41 | ||||||
Derivative liability, fair value, gross liability | 4 | ||||||
Fair Value of Derivatives Not Designated as Hedging Instrument | Currency Swap | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative liability, fair value, gross liability | 0 | 0 | |||||
Designated as Hedging Instrument | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Total fair value, derivative assets | 0 | ||||||
Derivative liability, fair value, gross liability | 161 | ||||||
Designated as Hedging Instrument | Currency Swap | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative liability, fair value, gross liability | $ 161 | $ 75 | |||||
Designated as Hedging Instrument | 2019 Cross Currency Swaps | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Interest Income (Expense), Net | $ 11 | ||||||
Number of Foreign Currency Derivatives Held | swap | 14 | ||||||
Proceeds from unwinding of derivative instruments | $ 183 | ||||||
Designated as Hedging Instrument | 2022 Cross Currency Swaps | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Number of Foreign Currency Derivatives Held | swap | 12 | 12 | |||||
Derivative assets (liabilities), at fair value, net | $ 161 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive loss, net of tax | $ 17,655 | ||
Accumulated other comprehensive loss, net of tax | 14,611 | $ 17,655 | |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive loss, net of tax | (2,066) | (1,133) | $ (285) |
OCI before reclassifications | 367 | (933) | (848) |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | 414 | (933) | (848) |
Accumulated other comprehensive loss, net of tax | (1,652) | (2,066) | (1,133) |
Other Comprehensive Income (Loss), Reclassification Adjustment From AOCI Due To Business Divestitures | 47 | ||
Gains (Losses) on Derivatives Qualifying as Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive loss, net of tax | 1 | 1 | (7) |
OCI before reclassifications | 0 | 0 | 1 |
Amounts reclassified from AOCI | 0 | 0 | 7 |
Net current period other comprehensive income (loss) | 0 | 0 | 8 |
Accumulated other comprehensive loss, net of tax | 1 | 1 | 1 |
Other Comprehensive Income (Loss), Reclassification Adjustment From AOCI Due To Business Divestitures | 0 | ||
Pension and Postretirement Liability Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive loss, net of tax | (133) | (291) | (406) |
OCI before reclassifications | (100) | 148 | 97 |
Amounts reclassified from AOCI | (11) | 10 | 18 |
Net current period other comprehensive income (loss) | (112) | 158 | 115 |
Accumulated other comprehensive loss, net of tax | (245) | (133) | (291) |
Other Comprehensive Income (Loss), Reclassification Adjustment From AOCI Due To Business Divestitures | (1) | ||
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated other comprehensive loss, net of tax | (2,198) | (1,423) | (698) |
OCI before reclassifications | 267 | (785) | (750) |
Amounts reclassified from AOCI | (11) | 10 | 25 |
Net current period other comprehensive income (loss) | 302 | (775) | (725) |
Accumulated other comprehensive loss, net of tax | (1,896) | $ (2,198) | $ (1,423) |
Other Comprehensive Income (Loss), Reclassification Adjustment From AOCI Due To Business Divestitures | $ 46 |
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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of goods sold | $ 7,798 | $ 8,289 | $ 7,921 |
Interest expense | (380) | (336) | (289) |
Tax | (45) | (239) | (75) |
Gains (Losses) on Derivatives Qualifying as Hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Tax | 0 | 0 | 1 |
Gains (Losses) on Derivatives Qualifying as Hedges | Foreign Currency Contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of goods sold | 0 | 0 | (7) |
Gains (Losses) on Derivatives Qualifying as Hedges | Interest Rate Swap | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | 0 | 0 | (1) |
Gains (Losses) on Derivatives Qualifying as Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total | 0 | 0 | (7) |
(Losses) gains on pension and postretirement liability adjustments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Tax | 3 | (4) | 4 |
(Losses) gains on pension and postretirement liability adjustments | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total | 11 | (10) | (18) |
Prior service cost | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
(Losses) gains on pension and postretirement liability adjustments | 6 | 7 | 7 |
Actuarial losses | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
(Losses) gains on pension and postretirement liability adjustments | 8 | (21) | (38) |
Other items | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
(Losses) gains on pension and postretirement liability adjustments | $ 0 | $ 0 | $ 17 |
Concentrations Of Credit Risk -
Concentrations Of Credit Risk - Additional Information (Detail) - Customer Concentration Risk [Member] - customer | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||
Number of customers that accounted for more than 10% of consolidated net sales | 0 | 0 | 0 |
All Foreign Countries [Member] | Sales [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk threshold | 10% | 10% | 10% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Jun. 05, 2023 | Mar. 11, 2020 | Oct. 29, 2019 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2023 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2023 | Dec. 31, 2022 | Jul. 28, 2021 | Aug. 25, 2020 | |
Commitments And Contingencies [Line Items] | ||||||||||||||
Bank guarantees related to appeals on income tax and indirect tax cases | $ 11,000,000 | |||||||||||||
Available lines of credit | 1,848,000,000 | |||||||||||||
Bank guarantees and pledged assets to pursue defenses related to other contingencies | 19,000,000 | |||||||||||||
Property, plant and equipment | 4,240,000,000 | $ 4,203,000,000 | ||||||||||||
Bank Guarantees and Standby Letters of Credit, Amount Outstanding | 61,000,000 | |||||||||||||
Bank Guarantees, Commercial Guarantees, Letters Of Credit and Surety Bonds, Facility Amounts | 229,000,000 | |||||||||||||
Commercial paper | 0 | 187,000,000 | ||||||||||||
Revolving Loan Facility | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Revolving credit facility | $ 1,000,000,000 | |||||||||||||
Revolving Loan Facility | Citibank, N.A | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Revolving credit facility | 2,000,000,000 | $ 2,000,000,000 | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 1,548,000,000 | |||||||||||||
Chief Executive Officer [Member] | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 20,000,000 | $ 20,000,000 | ||||||||||||
Minimum | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Estimated maximum future costs of environmental liabilities for identified sites (less than $5 million) | 0 | |||||||||||||
Maximum | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Estimated maximum future costs of environmental liabilities for identified sites (less than $5 million) | 75,000,000 | |||||||||||||
CHINA | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Property, plant and equipment | 228,000,000 | $ 258,000,000 | ||||||||||||
Manufacturing Facility [Member] | CHINA | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Property, plant and equipment | 215,000,000 | |||||||||||||
Pledged assets [Member] | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
The amount of pledged assets, principally PP&E to cover income tax and indirect tax assessments | 8,000,000 | |||||||||||||
Brazil Tax Credits | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Loss Contingency, Receivable Written Off | $ 6,000,000 | |||||||||||||
Pharma Solutions | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Malpractice Loss Contingency, Payments, Inception-to-date | 46,000,000 | |||||||||||||
BRAZIL | Foreign Tax Authority [Member] | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Proceeds from Income Tax Refunds | $ 4,000,000 | $ 8,000,000 | ||||||||||||
BRAZIL | Foreign Tax Authority [Member] | BRAZIL | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Proceeds from Income Tax Refunds | $ 3,000,000 | |||||||||||||
Zhejiang Ingredients Plant [Member] | Zhejiang, China [Member] | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Gain Contingency, Relocation Payments Received | $ 5,000,000 | $ 13,000,000 | $ 30,000,000 | |||||||||||
Gain Contingency, Expected Relocation Payments | $ 50,000,000 | |||||||||||||
Gain (Loss) On Plant Relocation | 22,000,000 | |||||||||||||
Estimated Income Tax Expense (Benefit) | $ 6,000,000 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | $ 30 | ||
Sale of a subsidiary with redeemable non-controlling interests | 4 | $ 7 | $ 9 |
Exercises of redeemable non-controlling interests | 3 | 2 | 2 |
Exercises of redeemable non-controlling interests | 5 | ||
Ending balance | 31 | 30 | |
Redeemable Noncontrolling Interest | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | 59 | 105 | 98 |
Impact of foreign exchange translation | (8) | (6) | 1 |
Sale of a subsidiary with redeemable non-controlling interests | 4 | 6 | |
Redemption value adjustment for the current period | (2) | 5 | 2 |
Exercises of redeemable non-controlling interests | (13) | (2) | |
Exercises of redeemable non-controlling interests | (25) | (49) | |
Disposal of redeemable non-controlling interests | (11) | ||
Ending balance | 0 | $ 59 | $ 105 |
Redeemable Noncontrolling Interest | Sonarome | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Proceeds from sale of long-term investments | $ 29 |
Assets and Liabilities Held F_3
Assets and Liabilities Held For Sale (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | |||
Cash and cash equivalents | $ 26 | $ 52 | $ 0 |
Operating lease right-of-use assets | 689 | 743 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Savory Solutions and Fine and Specialty Ingredients | |||
Assets | |||
Cash and cash equivalents | 52 | ||
Trade receivables, net | 85 | ||
Inventories | 157 | ||
Property, plant and equipment, net | 92 | ||
Goodwill | 348 | ||
Other intangible assets, net | 428 | ||
Operating lease right-of-use assets | 13 | ||
Other assets | 25 | ||
Total assets held-for-sale | 1,200 | ||
Liabilities | |||
Accounts payable | 56 | ||
Deferred tax liability | 92 | ||
Other liabilities | 64 | ||
Total liabilities held-for-sale | $ 212 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Cosmetic Ingredients | |||
Assets | |||
Cash and cash equivalents | 26 | ||
Trade receivables, net | 15 | ||
Inventories | 18 | ||
Property, plant and equipment, net | 7 | ||
Goodwill | 276 | ||
Other intangible assets, net | 146 | ||
Operating lease right-of-use assets | 9 | ||
Other assets | 9 | ||
Total assets held-for-sale | 506 | ||
Liabilities | |||
Accounts payable | 4 | ||
Deferred tax liability | 24 | ||
Other liabilities | 18 | ||
Total liabilities held-for-sale | $ 46 |
Other (Expense) Income, Net (De
Other (Expense) Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Foreign exchange (losses) gains | $ (77) | $ (12) | $ 3 |
Interest income | 5 | 15 | 8 |
(Losses) gains on business divestitures | (23) | 11 | 13 |
Gain on China facility relocation | 22 | 0 | 0 |
Pension-related benefit | 28 | 19 | 34 |
Other | 17 | 4 | 0 |
Other (expense) income, net | $ (28) | $ 37 | $ 58 |
Tangible Equity Units (Details)
Tangible Equity Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Sep. 17, 2018 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Tangible equity units issued | 16,500,000 | |
Tangible equity units proceeds | $ 800 | |
Price for basic share (in dollars per share) | $ 0.330911 |
Tangible Equity Units (Allocati
Tangible Equity Units (Allocation of TEU) (Details) $ in Millions | Sep. 17, 2018 USD ($) |
Tangible Equity Units [Line Items] | |
Tangible equity units proceeds | $ 800 |
Tangible Equity Units Tangible
Tangible Equity Units Tangible Equity - Settlement of Shares (Details) - $ / shares | Sep. 15, 2021 | Sep. 14, 2021 |
Class of Stock [Line Items] | ||
Stock Issued During Period, Shares, Issued for Services | 5,460,031 | |
Tangible Equity Units Final Settlement Rate | $ 0.330911 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for doubtful accounts [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 53 | $ 46 | $ 21 |
Additions (deductions) charged to costs and expenses | 9 | 19 | 6 |
Acquisitions | 0 | 0 | 0 |
Accounts written off | (11) | 0 | (1) |
Translation adjustments | 1 | (12) | 0 |
Other | 0 | 0 | 20 |
Balance at end of period | 52 | 53 | 46 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 262 | 232 | 257 |
Additions (deductions) charged to costs and expenses | 76 | 51 | (18) |
Acquisitions | 0 | 0 | 9 |
Accounts written off | 0 | 0 | 0 |
Translation adjustments | (23) | (21) | (16) |
Other | 9 | 0 | 0 |
Balance at end of period | $ 324 | $ 262 | $ 232 |