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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                         
Commission file number 1-4858
 INTERNATIONAL FLAVORS & FRAGRANCES INC.
(Exact name of registrant as specified in its charter)
New York13-1432060
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
521 West 57th Street, New York, NY 10019-2960
200 Powder Mill Road, Wilmington, DE 19803-2907
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (212765-5500
 Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange
on which registered
Common Stock, par value 12 1/2¢ per shareIFFNew York Stock Exchange
1.800% Senior Notes due 2026IFF 26New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No   
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes     No   
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes    No   
Number of shares of common stock outstanding as of April 29, 2024: 255,350,544



INTERNATIONAL FLAVORS & FRAGRANCES INC.
TABLE OF CONTENTS
  PAGE
PART I - Financial Information
ITEM 1.
ITEM 2.
ITEM 3.
ITEM 4.
PART II - Other Information
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 5.
ITEM 6.


PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
INTERNATIONAL FLAVORS & FRAGRANCES INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE (LOSS) INCOME
(Unaudited)
Three Months Ended
 March 31,
(AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS)20242023
Net sales$2,899 $3,027 
Cost of goods sold1,875 2,063 
Gross profit1,024 964 
Research and development expenses166 161 
Selling and administrative expenses490 454 
Amortization of acquisition-related intangibles168 171 
Restructuring and other charges3 52 
Gains on sale of assets(2)(5)
Operating profit199 131 
Interest expense83 100 
Other expense, net1 17 
Income before taxes115 14 
Provision for income taxes54 22 
Net income (loss)61 (8)
Net income attributable to non-controlling interests1 1 
Net income (loss) attributable to IFF shareholders$60 $(9)
Net income (loss) per share - basic$0.23 $(0.04)
Net income (loss) per share - diluted$0.23 $(0.04)
Average number of shares outstanding - basic255 255 
Average number of shares outstanding - diluted256 255 
Statements of Comprehensive (Loss) Income
Net income (loss)$61 $(8)
Other comprehensive (loss) income, after tax:
Foreign currency translation adjustments(293)284 
Losses on derivatives qualifying as hedges(7) 
Pension and postretirement liability adjustment5 (2)
Other comprehensive (loss) income(295)282 
Comprehensive (loss) income(234)274 
Comprehensive income attributable to non-controlling interests1 1 
Comprehensive (loss) income attributable to IFF shareholders$(235)$273 

See Notes to Consolidated Financial Statements
1

INTERNATIONAL FLAVORS & FRAGRANCES INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(DOLLARS IN MILLIONS)March 31, 2024December 31, 2023
ASSETS
Current Assets:
Cash and cash equivalents$732 $703 
Restricted cash7 6 
Trade receivables (net of allowances of $37 and $52, respectively)
1,977 1,726 
Inventories2,411 2,477 
Assets held for sale509 506 
Prepaid expenses and other current assets771 875 
Total Current Assets6,407 6,293 
Property, plant and equipment, net4,145 4,240 
Goodwill10,538 10,635 
Other intangible assets, net8,116 8,357 
Operating lease right-of-use assets699 689 
Other assets737 764 
Total Assets$30,642 $30,978 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Bank borrowings, overdrafts, and current portion of long-term debt$312 $885 
Commercial paper836  
Accounts payable1,346 1,378 
Accrued payroll and bonus222 265 
Dividends payable102 207 
Liabilities held for sale46 46 
Other current liabilities956 977 
Total Current Liabilities3,820 3,758 
Other Liabilities:
Long-term debt9,150 9,186 
Retirement liabilities252 253 
Deferred income taxes1,916 1,937 
Operating lease liabilities651 642 
Other liabilities527 560 
Total Other Liabilities12,496 12,578 
Commitments and Contingencies (Note 18)
Shareholders’ Equity:
Common stock $0.125 par value; 500,000,000 shares authorized; 275,726,629 shares issued as of March 31, 2024 and December 31, 2023; and 255,319,533 and 255,288,535 shares outstanding as of March 31, 2024 and December 31, 2023, respectively
35 35 
Capital in excess of par value19,889 19,874 
Accumulated deficit(2,481)(2,439)
Accumulated other comprehensive loss(2,191)(1,896)
Treasury stock, at cost (20,407,096 and 20,438,094 shares as of March 31, 2024 and December 31, 2023, respectively)
(961)(963)
Total Shareholders’ Equity14,291 14,611 
Non-controlling interests35 31 
Total Shareholders’ Equity including Non-controlling interests14,326 14,642 
Total Liabilities and Shareholders’ Equity$30,642 $30,978 
See Notes to Consolidated Financial Statements
2

INTERNATIONAL FLAVORS & FRAGRANCES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Three Months Ended March 31,
(DOLLARS IN MILLIONS)20242023
Cash flows from operating activities:
Net income (loss)$61 $(8)
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization278 276 
Deferred income taxes(9)(28)
Gains on sale of assets(2)(5)
Losses on business divestitures 14 
Stock-based compensation18 12 
Pension contributions(7)(7)
Changes in assets and liabilities, net of acquisitions:
Trade receivables(290)(63)
Inventories34 219 
Accounts payable83 (144)
Accruals for incentive compensation(46)(70)
Other current payables and accrued expenses(28)(51)
Other assets/liabilities, net7 (18)
Net cash provided by operating activities99 127 
Cash flows from investing activities:
Additions to property, plant and equipment(118)(175)
Proceeds from disposal of assets3 7 
Net proceeds received from business divestitures37 1 
Net cash used in investing activities(78)(167)
Cash flows from financing activities:
Cash dividends paid to shareholders(207)(206)
Increase (decrease) in revolving credit facility and short-term borrowings250 (100)
Net borrowings of commercial paper (maturities less than three months)833 393 
Deferred financing costs (2)
Repayments of long-term debt(833) 
Employee withholding taxes paid(1)(6)
Other, net(2)(1)
Net cash provided by financing activities40 78 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(25)27 
Net change in cash, cash equivalents and restricted cash36 65 
Cash, cash equivalents and restricted cash at beginning of year735 552 
Cash, cash equivalents and restricted cash at end of period$771 $617 
Supplemental Disclosures:
Interest paid, net of amounts capitalized$61 $66 
Income taxes paid, net53 227 
Accrued capital expenditures53 71 
See Notes to Consolidated Financial Statements
3

INTERNATIONAL FLAVORS & FRAGRANCES INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
(DOLLARS IN MILLIONS)Common
stock
Capital in
excess of
par value
Retained
earnings
Accumulated  other
comprehensive
(loss) income
Treasury stockNon-controlling
interest
Total
SharesCostSharesCost
Balance at January 1, 2023275,726,629 $35 $19,841 $955 $(2,198)(20,758,166)$(978)$30 $17,685 
Net (loss) income(9)1 (8)
Cumulative translation adjustment284 284 
Pension liability and postretirement adjustment; net of tax of $0
(2)(2)
Cash dividends declared ($0.81 per share)
(207)(207)
Stock options/SSARs(5)55,617 3 (2)
Vested restricted stock units and awards(4)43,396 2 (2)
Stock-based compensation12 12 
Other1 1 
Balance at March 31, 2023275,726,629 $35 $19,844 $739 $(1,916)(20,659,153)$(973)$32 $17,761 

(DOLLARS IN MILLIONS)Common
stock
Capital in
excess of
par value
Accumulated deficitAccumulated  other
comprehensive
(loss) income
Treasury stockNon-controlling
interest
Total
SharesCostSharesCost
Balance at January 1, 2024275,726,629 $35 $19,874 $(2,439)$(1,896)(20,438,094)$(963)$31 $14,642 
Net income60 1 61 
Cumulative translation adjustment(293)(293)
Losses on derivatives qualifying as hedges; net of tax of $0
(7)(7)
Pension liability and postretirement adjustment; net of tax of $0
5 5 
Cash dividends declared ($0.40 per share)
(102)(102)
Stock options/SSARs(2)24,253 1 (1)
Vested restricted stock units and awards(1)6,745 1  
Stock-based compensation18 18 
Other3 3 
Balance at March 31, 2024275,726,629 $35 $19,889 $(2,481)$(2,191)(20,407,096)$(961)$35 $14,326 


See Notes to Consolidated Financial Statements
4

INTERNATIONAL FLAVORS & FRAGRANCES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1.    NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations
International Flavors & Fragrances Inc. and its subsidiaries (the “Registrant,” “IFF,” “the Company,” “we,” “us” and “our”) is a leading creator and manufacturer of food, beverage, health & biosciences, scent and pharma solutions and complementary adjacent products, including cosmetic active and natural health ingredients, which are used in a wide variety of consumer products. Our products are sold principally to manufacturers of perfumes and cosmetics, hair and other personal care products, soaps and detergents, cleaning products, dairy, meat and other processed foods, beverages, snacks and savory foods, sweet and baked goods, sweeteners, dietary supplements, food protection, infant and elderly nutrition, functional food, and pharmaceutical excipients and oral care products.
Basis of Presentation
The accompanying interim Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the related notes included in our 2023 Annual Report on Form 10-K (“2023 Form 10-K”), filed on February 28, 2024 with the Securities and Exchange Commission (“SEC”).
The interim Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial information and with the rules and regulations for reporting on Form 10-Q, and are unaudited. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP in the United States of America have been condensed or omitted, if not materially different from the 2023 Form 10-K. The year-end balance sheet data included in this Form 10-Q was derived from the audited financial statements. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim Consolidated Financial Statements, have been made.
Correction of Prior Year Consolidated Financial Statements
In the first quarter of 2024, the Company revised Interest expense from $111 million to $100 million and Other expense, net from $6 million to $17 million on its Consolidated Statements of Income (Loss) and Comprehensive (Loss) Income for the three months ended March 31, 2023. This reflects certain adjustments made to interest expense associated with the Company’s cash pooling arrangements. The Company also adjusted the disclosure of its total receivables factored for the three months ended March 31, 2023 from $445 million to $402 million. The impacts of these corrections are also presented in the related footnotes.
Use of Estimates
The preparation of financial statements 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 the ongoing global current events and adverse macroeconomic impacts on our critical and significant accounting estimates, including estimates associated with future cash flows that are used in assessing the risk of impairment of certain assets. Actual results could differ from those estimates.
Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash reported in the Company’s balance sheet as of March 31, 2024, December 31, 2023, March 31, 2023 and December 31, 2022 were as follows:
(DOLLARS IN MILLIONS)March 31, 2024December 31, 2023March 31, 2023December 31, 2022
Current assets
Cash and cash equivalents$732 $703 $590 $483 
Cash and cash equivalents included in Assets held for sale32 26 4 52 
Restricted cash7 6 16 10 
Non-current assets
Restricted cash included in Other assets  7 7 
Cash, cash equivalents and restricted cash$771 $735 $617 $552 
5

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 a total of approximately $406 million and $402 million of receivables under the Company’s own factoring agreements and customer sponsored factoring agreements for the three months ended March 31, 2024 and 2023, respectively. The cost of participating in these programs was approximately $6 million and $5 million for the three months ended March 31, 2024 and 2023, respectively. These costs are 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 $191 million and $197 million of receivables for the three months ended March 31, 2024 and 2023, respectively. The outstanding principal amounts of receivables under the Company’s own factoring agreements amounted to approximately $178 million and $196 million as of March 31, 2024 and December 31, 2023, respectively. The proceeds from the sales of receivables are included in Net cash provided by operating activities in the Consolidated Statements of Cash Flows.
Expected Credit Losses
As of March 31, 2024, the Company reported $1.977 billion of trade receivables, net of allowances of $37 million. Based on the aging analysis as of March 31, 2024, 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 three months ended March 31, 2024:
(DOLLARS IN MILLIONS)Allowances for
Bad Debts
Balance at January 1, 2024$52 
Bad debt expense (reversals)(1)
(5)
Write-offs(9)
Foreign exchange(1)
Balance at March 31, 2024$37 
_______________________
(1)Included approximately $7 million of reversals of allowances on receivables from certain customers in Egypt. The Company will continue to evaluate its credit exposure related to Egypt.
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:
(DOLLARS IN MILLIONS)March 31, 2024December 31, 2023
Raw materials$728 $779 
Work in process432 406 
Finished goods1,251 1,292 
Total$2,411 $2,477 
Supply Chain Financing Program
In the fourth quarter of 2023, the Company entered into a supply chain financing (“SCF”) program. The SCF program is expected to be available to U.S. based suppliers starting in the second half 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 SCF program is voluntary and 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 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
6

financial institution, may choose to terminate the agreement of the SCF program at any time upon 30 days’ prior written notice. The third-party financial institution may also terminate the agreement of the SCF program at any time upon three business days’ prior written notice in the event there are insufficient funds available for disbursements. As of March 31, 2024 and December 31, 2023, 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 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 reportable segment disclosures.

NOTE 2. NET INCOME (LOSS) PER SHARE
A reconciliation of the shares used in the computation of basic and diluted net income (loss) per share is as follows:
 Three Months Ended March 31,
(AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS)20242023
Net Income (Loss)
Net income (loss) available to IFF shareholders$60 $(9)
Shares
Weighted average common shares outstanding (basic)255 255 
Adjustment for assumed dilution:
Stock options and restricted stock awards1  
Weighted average shares assuming dilution (diluted)256 255 
Net Income (Loss) per Share
Net income (loss) per share - basic(1)
$0.23 $(0.04)
Net income (loss) per share - diluted0.23 (0.04)
_______________________
(1)For the three months ended March 31, 2024, the basic net income per share cannot be recalculated based on the information presented in the table above due to rounding.
The Company declared a quarterly dividend to its shareholders of $0.40 and $0.81 per share for the three months ended March 31, 2024 and 2023, respectively.
There were approximately 0.3 million potentially dilutive securities excluded from the computation of diluted net loss per share for the three months ended March 31, 2023 because there was a net loss attributable to IFF for the period and, as such, the inclusion of these securities would have been anti-dilutive.
For the three months ended March 31, 2024, there were approximately 0.3 million share equivalents that had an anti-dilutive effect and therefore were excluded from the computation of diluted net income per share in the period. For the three months ended March 31, 2023, there were approximately 0.4 million share equivalents that had an anti-dilutive effect and therefore were excluded from the computation of diluted net loss per share in the period.
The Company has issued shares of Purchased Restricted Stock Units (“PRSUs”) which contain rights to non-forfeitable dividends while these shares are outstanding and thus are considered participating securities. Such securities are required to be included in the computation of basic and diluted earnings per share pursuant to the two-class method.
7

The Company did not present the two-class method since there was no difference between basic net income (loss) per share for both unrestricted common shareholders and PRSU shareholders for the three months ended March 31, 2024 and 2023. The difference between diluted net income per share for both unrestricted common shareholders and PRSU shareholders for the three months ended March 31, 2024 was less than $0.01 per share. There was no difference between diluted net loss per share for both unrestricted common shareholders and PRSU shareholders for the three months ended March 31, 2023. In addition, the number of PRSUs outstanding as of March 31, 2024 and 2023 was not material. Net income (loss) allocated to such PRSUs was not material for the three months ended March 31, 2024 and 2023.

NOTE 3. BUSINESS DIVESTITURES
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, net, and tax benefits of approximately $2 million presented in Provision for income taxes on the Consolidated Statements of Income (Loss) and Comprehensive (Loss) Income for the three months ended March 31, 2023.
Divestiture of the Pharma Solutions Business
On March 19, 2024, the Company announced the sale process and entered into an agreement to sell its Pharma Solutions business, for a value of up to $2.85 billion, that is primarily made up of businesses within the Company’s existing Pharma Solutions reportable operating segment, with some adjustments to the perimeter of the transaction designed to align customers, businesses and the manufacturing footprint. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2025.
Divestiture of the Cosmetic Ingredients Business
The Company completed the divestiture of its Cosmetic Ingredients business on April 2, 2024. Upon closing, the Company received gross cash proceeds of approximately $841 million from the buyer, adjusted for the preliminary estimates of certain closing adjustments. Finalization of such closing adjustments may result in additional cash receipt from or payment to the buyer.

NOTE 4.    RESTRUCTURING AND OTHER CHARGES
Restructuring and other charges primarily consist of separation costs for employees including severance, outplacement and other employee benefit costs (“Severance”), charges related to the write-down of fixed assets of plants to be closed (“Fixed asset write-down”) and all other related restructuring (“Other”) costs. All restructuring and other charges are separately stated on the Consolidated Statements of Income (Loss) and Comprehensive (Loss) Income.
N&B Merger Restructuring Liability
For the three months ended March 31, 2024, the Company had 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 $49 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 combination of IFF and DuPont de Nemours, Inc’s nutrition and biosciences business (“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 three months ended March 31, 2024, the Company incurred approximately $1 million of charges related to severance. Since the inception of the restructuring program, the Company has expensed approximately $71 million and there have been a total of approximately 670 actual and planned headcount reductions.
8

Changes in Restructuring Liabilities
Changes in restructuring liabilities during the three months ended March 31, 2024 were as follows:
(DOLLARS IN MILLIONS)
Balance at
January 1, 2024
Additional Charges (Reversals), NetNon-Cash ChargesCash Payments
Balance at
March 31, 2024
N&B Merger Restructuring Liability
Other$ $2 $(2)$ $ 
2023 Restructuring Program
Severance14 1  (12)3 
Total Restructuring and other charges$14 $3 $(2)$(12)$3 
Restructuring liabilities are presented in “Other current liabilities” on the Consolidated Balance Sheets.
Charges by Segment
The following table summarizes the total amount of costs incurred in connection with the restructuring programs and activities by segment:
 Three Months Ended March 31,
(DOLLARS IN MILLIONS)20242023
Nourish$2 $30 
Health & Biosciences1 10 
Scent 10 
Pharma Solutions 2 
Total Restructuring and other charges$3 $52 

NOTE 5.    STOCK COMPENSATION PLANS
The Company has various plans under which its officers, senior management, other key employees and directors may be granted equity-based awards. Equity awards outstanding under the plans include PRSUs, Restricted Stock Units (“RSUs”), Stock-Settled Appreciation Rights (“SSARs”) and Long-Term Incentive Plan awards. Liability-based awards outstanding under the plans are cash-settled RSUs.
Stock-based compensation expense and related tax benefits were as follows:
 Three Months Ended March 31,
(DOLLARS IN MILLIONS)20242023
Equity-based awards$18 $12 
Liability-based awards1  
Total stock-based compensation expense19 12 
Less: Tax benefit(4)(2)
Total stock-based compensation expense, after tax$15 $10 
As of March 31, 2024, there was approximately $64 million of total unrecognized compensation cost related to non-vested awards granted under the equity incentive plans.

NOTE 6. SEGMENT INFORMATION
The Company is organized into four reportable operating segments: Nourish, Health & Biosciences, Scent and Pharma Solutions.
9

Reportable segment information was as follows:
 Three Months Ended
March 31,
(DOLLARS IN MILLIONS)20242023
Net sales:
Nourish$1,496 $1,653 
Health & Biosciences531 513 
Scent645 608 
Pharma Solutions227 253 
Consolidated$2,899 $3,027 
Segment Adjusted Operating EBITDA:
Nourish$216 $208 
Health & Biosciences159 131 
Scent157 105 
Pharma Solutions46 59 
Total578 503 
Depreciation & Amortization(278)(276)
Interest Expense(83)(100)
Other Expense, net(1)(17)
Restructuring and Other Charges (a)(3)(52)
Acquisition, Divestiture and Integration Related Costs (b)(58)(31)
Entity Realignment Costs (c)(1) 
Strategic Initiatives Costs (d)(4)(13)
Regulatory Costs (e)(35)(5)
Other (f) 5 
Income Before Taxes$115 $14 
_______________________
(a)For 2024, represents costs related to lease impairment and severance as part of the Company's restructuring efforts. For 2023, represents costs primarily related to severance as part of the Company's restructuring efforts.
(b)
For 2024 and 2023, 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 2024 and 2023, tax expenses for business divestiture costs included establishments of deferred tax liabilities related to planned sales of businesses.

For the three months ended March 31, 2024, business divestiture and integration related costs were approximately $56 million and $2 million, respectively. For the three months ended March 31, 2023, business divestiture and integration related costs were approximately $21 million and $10 million, respectively.
(c)Represents costs related to the Company's entity realignment project to optimize the structure of holding companies, primarily consulting fees.
(d)Represents costs related to the Company's strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services Centers, primarily consulting fees.
(e)Represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance businesses.
(f)For 2024, represents the net impact of costs related to severance, including accelerated stock compensation expense, for a certain executive who has separated from the Company and gains from sale of assets. For 2023, represents gains from sale of assets.
10

Net sales, which are attributed to individual regions based upon the destination of product delivery, were as follows:
 Three Months Ended March 31,
(DOLLARS IN MILLIONS)20242023
Europe, Africa and Middle East$977 $1,070 
Greater Asia682 688 
North America866 905 
Latin America374 364 
Consolidated$2,899 $3,027 
 Three Months Ended March 31,
(DOLLARS IN MILLIONS)20242023
Net sales related to the U.S.$811 $871 
Net sales attributed to all foreign countries2,088 2,156 
No non-U.S. country had net sales greater than 10% of total consolidated net sales for each of the three months ended March 31, 2024 and 2023.

NOTE 7. EMPLOYEE BENEFITS
Pension and other defined contribution retirement plan expenses included the following components:
(DOLLARS IN MILLIONS)U.S. Plans
Three Months Ended March 31,
20242023
Interest cost on projected benefit obligation(2)
$6 $7 
Expected return on plan assets(2)
(6)(8)
Net amortization and deferrals(2)
1  
Net periodic benefit (income) cost$1 $(1)
(DOLLARS IN MILLIONS)Non-U.S. Plans
Three Months Ended March 31,
20242023
Service cost for benefits earned(1)
$6 $5 
Interest cost on projected benefit obligation(2)
9 9 
Expected return on plan assets(2)
(13)(12)
Net amortization and deferrals(2)
2  
Net periodic benefit (income) cost$4 $2 
_______________________
(1)Included as a component of Operating profit.
(2)Included as a component of Other expense, net.
The Company expects to contribute a total of $5 million to its U.S. pension plans and a total of $23 million to its non-U.S. pension plans during 2024. During the three months ended March 31, 2024, no contributions were made to the qualified U.S. pension plans, $6 million of contributions were made to the non-U.S. pension plans and $1 million of contributions were made with respect to the Company’s non-qualified U.S. pension plan.
(Income) expense recognized for post-retirement benefits other than pensions included the following components:
 Three Months Ended March 31,
(DOLLARS IN MILLIONS)20242023
Interest cost on projected benefit obligation$1 $1 
Net amortization and deferrals(1)(1)
Total postretirement benefit (income) expense$ $ 
11

The Company expects to contribute $4 million to its postretirement benefits other than pension plans during 2024. In the three months ended March 31, 2024, $1 million of benefit payments were made.

NOTE 8. OTHER EXPENSE, NET
Other expense, net consisted of the following:
 Three Months Ended March 31,
(DOLLARS IN MILLIONS)20242023
Foreign exchange losses$(8)$(15)
Interest income3  
Losses on business divestitures (14)
Pension-related benefit1 5 
Other3 7 
Other expense, net$(1)$(17)

NOTE 9. INCOME TAXES
The effective tax rate for the three months ended March 31, 2024 was 47.0%, which was primarily driven by tax expenses relating to business divestitures and changes in the mix of earnings, some of which do not give rise to tax benefits due to valuation allowances.
As of March 31, 2024, the Company had approximately $128 million of unrecognized tax benefits recorded in Other liabilities. If these unrecognized tax benefits were recognized, the effective tax rate would be affected.
As of March 31, 2024, the Company had accrued interest and penalties of approximately $48 million classified in Other liabilities.
As of March 31, 2024, the Company’s aggregate provisions for uncertain tax positions, including interest and penalties, was approximately $176 million associated with tax positions asserted in various jurisdictions.
The Company regularly repatriates earnings from non-U.S. subsidiaries. As the Company repatriates these funds to the U.S., 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 March 31, 2024, the Company had a deferred tax liability of approximately $174 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.

NOTE 10. PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment consisted of the following amounts:
(DOLLARS IN MILLIONS)March 31, 2024December 31, 2023
Asset Type
Land$192 $195 
Buildings and improvements1,805 1,822 
Machinery and equipment3,754 3,752 
Information technology496 473 
Construction in process366 400 
Total Property, plant and equipment6,613 6,642 
Accumulated depreciation(2,468)(2,402)
Total Property, plant and equipment, net$4,145 $4,240 
Depreciation expense was $110 million and $105 million for the three months ended March 31, 2024 and 2023, respectively.
12

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 $4 million for each of the three months ended March 31, 2024 and 2023.

NOTE 11. GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Goodwill
Movements in goodwill attributable to each reportable segment for the three months ended March 31, 2024 were as follows:
(DOLLARS IN MILLIONS)NourishHealth & BiosciencesScentPharma SolutionsTotal
Balance at January 1, 2024$3,489 $4,391 $1,490 $1,265 $10,635 
Foreign exchange(35)(39)(8)(15)(97)
Balance at March 31, 2024$3,454 $4,352 $1,482 $1,250 $10,538 
The goodwill balances at January 1, 2024 and March 31, 2024 included $2.623 billion and $2.250 billion of accumulated impairment related to the Nourish and Health & Biosciences reportable segments, respectively. The accumulated impairment relates to impairment charges recorded in 2023 and 2022.
Other Intangible Assets
Other intangible assets, net consisted of the following amounts:
March 31,December 31,
(DOLLARS IN MILLIONS)20242023
Asset Type
Customer relationships$8,137 $8,211 
Technological know-how2,336 2,355 
Trade names & patents334 337 
Other44 44 
Total carrying value 10,851 10,947 
Accumulated Amortization
Customer relationships(1,708)(1,619)
Technological know-how(863)(813)
Trade names & patents(123)(117)
Other(41)(41)
Total accumulated amortization(2,735)(2,590)
Other intangible assets, net$8,116 $8,357 
Amortization
Amortization expense was $168 million and $171 million for the three months ended March 31, 2024 and 2023, respectively.
Amortization expense for the next five years, based on valuations and determinations of useful lives, is expected to be as follows:
(DOLLARS IN MILLIONS)Remainder of 20242025202620272028
Estimated future intangible amortization expense$502 $668 $666 $573 $559 

NOTE 12.    OTHER CURRENT ASSETS AND LIABILITIES, AND OTHER ASSETS
Prepaid expenses and other current assets consisted of the following amounts:
13

(DOLLARS IN MILLIONS)March 31, 2024December 31, 2023
Value-added tax receivable$171 $187 
Prepaid income taxes163 178 
Packaging materials and supplies161 161 
Prepaid expenses202 184 
Other74 165 
Total$771 $875 
Other assets consisted of the following amounts:
(DOLLARS IN MILLIONS)March 31, 2024December 31, 2023
Deferred income taxes$253 $278 
Overfunded pension plans142 139 
Cash surrender value of life insurance contracts50 49 
Finance lease right-of-use assets26 26 
Equity method investments11 11 
Other(1)
255 261 
Total$737 $764 
_______________________
(1)Includes land usage rights in China, long-term deposits and receivables on certain derivative instruments.

Other current liabilities consisted of the following amounts:
(DOLLARS IN MILLIONS)March 31, 2024December 31, 2023
Rebates and incentives payable$102 $105 
Value-added tax payable49 77 
Interest payable80 65 
Current pension and other postretirement benefit obligation14 13 
Accrued insurance (including workers’ compensation)9 9 
Earn outs payable32 32 
Accrued restructuring3 14 
Current operating lease obligation91 85 
Accrued freight13 14 
Accrued commissions payable11 10 
Accrued income taxes126 194 
Accrued expenses payable300 262 
Other126 97 
Total$956 $977 

14

NOTE 13.    DEBT
Debt consisted of the following:
(DOLLARS IN MILLIONS)Effective Interest RateMarch 31, 2024December 31, 2023
2024 Euro Notes(1)
1.88 %$ $552 
2025 Notes(1)
1.22 %1,000 1,000 
2026 Euro Notes(1)
1.93 %861 879 
2027 Notes(1)
1.56 %1,211 1,212 
2028 Notes(1)
4.57 %398 398 
2030 Notes(1)
2.21 %1,508 1,508 
2040 Notes(1)
3.04 %772 773 
2047 Notes(1)
4.44 %495 495 
2048 Notes(1)
5.12 %787 787 
2050 Notes(1)
3.21 %1,569 1,569 
2024 Term Loan Facility(2)
3.75 % 270 
2026 Term Loan Facility(2)
5.82 %609 625 
Revolving Credit Facility(3)
250  
Commercial paper(4)
836  
Bank overdrafts and other2 3 
Total debt10,298 10,071 
Less: Short-term borrowings(5)
(1,148)(885)
Total Long-term debt$9,150 $9,186 
_______________________ 
(1)Amount is net of unamortized discount and debt issuance costs.
(2)Amount is recorded at fair value.
(3)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.
(4)The effective interest rate of commercial paper issuances fluctuates as short-term interest rates and demand fluctuate, and deferred debt issuance costs are immaterial. Additionally, the effective interest rate of commercial paper is not meaningful as issuances do not materially differ from short-term interest rates.
(5)Includes bank borrowings, commercial paper, overdrafts and current portion of long-term debt.
Commercial Paper
For the three months ended March 31, 2024, the Company had gross issuances of $2.099 billion and repayments of $1.263 billion under the commercial paper program. The commercial paper issued had original maturities of less than 34 days. For the three months ended March 31, 2023, the Company had gross issuances of $1.320 billion and repayments of $919 million under the commercial paper program. The commercial paper issued had original maturities of less than 86 days.
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.
Revolving Credit Facility
For the three months ended March 31, 2024, the Company had drawdowns of $250 million under the Revolving Credit Facility. For the three months ended March 31, 2023, the Company had drawdowns of $400 million and repayments of $500 million under the Revolving Credit Facility.
Repayments of Debt
On February 1, 2024, the Company made a $270 million debt repayment related to the 2024 Term Loan Facility at maturity, which was primarily funded from commercial paper issuances.
On March 14, 2024, the Company made a €500 million debt repayment related to the 2024 Euro Notes at maturity, which was primarily funded from commercial paper issuances.
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During the first quarter of 2024, the Company made a quarterly debt repayment of approximately $16 million related to the 2026 Term Loan Facility in accordance with the terms of the debt agreement.
Subsequent Event
In the first week of April 2024, the Company made net repayments totaling $586 million related to the commercial paper program and a repayment of $250 million related to the Revolving Credit Facility, which was primarily funded from the proceeds received from the divestiture of the Cosmetic Ingredients business.

NOTE 14.   LEASES
The Company has leases for corporate offices, manufacturing facilities, research and development facilities and certain transportation and office equipment. The Company’s leases have remaining lease terms of up to 50 years, some of which include options to extend the leases for up to 15 years.
The components of lease expense were as follows:
Three Months EndedThree Months Ended
(DOLLARS IN MILLIONS)March 31, 2024March 31, 2023
Operating leases
Operating lease cost$32 $33 
Variable lease cost16 16 
Total operating lease cost$48 $49 
Finance leases
Finance lease cost$3 $2 
Supplemental cash flow information related to leases was as follows:
Three Months EndedThree Months Ended
(DOLLARS IN MILLIONS)March 31, 2024March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$28 $33 
Financing cash flows for finance leases2 2 
Right-of-use assets obtained in exchange for lease obligations
Operating leases39 137 
Finance leases3 2 
Operating lease right-of-use assets are presented in “Operating lease right-of-use assets” and finance lease right-of-use assets are presented in “Other assets” on the Consolidated Balance Sheets. Operating lease liabilities are presented in “Operating lease liabilities” and finance lease liabilities are presented in “Other liabilities” on the Consolidated Balance Sheets. Any other current liabilities related to operating and finance lease liabilities are presented in “Other current liabilities” on the Consolidated Balance Sheets.

NOTE 15. 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.
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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 also considers counterparty credit risk in its assessment of 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 Secured Overnight Financing Rate (“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 as discussed in Note 15 of the Company’s 2023 Form 10-K.
The carrying values and the estimated fair values of financial instruments at March 31, 2024 and December 31, 2023 consisted of the following:
 March 31, 2024December 31, 2023
(DOLLARS IN MILLIONS)Carrying ValueFair ValueCarrying ValueFair Value
LEVEL 1
Cash and cash equivalents(1)
$732 $732 $703 $703 
LEVEL 2
Credit facilities and bank overdrafts(2)
252 252 3 3 
Derivatives
Derivative assets(3)
1 1 41 41 
Derivative liabilities(3)
166 166 165 165 
Commercial paper(2)
836 836   
Long-term debt:
2024 Euro Notes(4)
  552 549 
2025 Notes(4)
1,000 937 1,000 924 
2026 Euro Notes(4)
861 825 879 835 
2027 Notes(4)
1,211 1,066 1,212 1,049 
2028 Notes(4)
398 388 398 389 
2030 Notes(4)
1,508 1,248 1,508 1,240 
2040 Notes(4)
772 535 773 536 
2047 Notes(4)
495 389 495 382 
2048 Notes(4)
787 687 787 678 
2050 Notes(4)
1,569 1,002 1,569 1,029 
2024 Term Loan Facility(5)
  270 270 
2026 Term Loan Facility(5)
609 609 625 625 
_______________________
(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.
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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, futures and swaps that are not designated as hedging instruments to reduce exposure to commodity price fluctuations on purchases of inventory such as soybeans, soybean oil and soybean meal.
The Company also utilizes 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.
Hedges Related to Issuances of Debt
As of March 31, 2024, the Company designated approximately $861 million of Euro Notes 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 Other comprehensive income (“OCI”) as a component of foreign currency translation adjustments in the accompanying Consolidated Statements of Income (Loss) and Comprehensive (Loss) Income.
Cross Currency Swaps
The Company has twelve EUR/USD cross currency swaps with a notional value of $1.400 billion that mature through November 2030. The swaps all qualified as net investment hedges in order to mitigate a portion of the Company’s net European investments from foreign currency risk. As of March 31, 2024, the twelve swaps were in a liability position with an aggregate fair value of $132 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 March 31, 2024 and December 31, 2023:
(DOLLARS IN MILLIONS)March 31, 2024December 31, 2023
Foreign currency contracts(1)
$(2,697)$(1,400)
Commodity contracts(1)
6 7 
Cross currency swaps1,400 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 on the Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023:
 March 31, 2024
(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 $1 
Total derivative assets$ $1 $1 
Derivative liabilities(2)
Foreign currency contracts$ $33 $33 
Cross currency swaps132