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Segment Information | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATIONThe Company is organized into four reportable operating segments: Nourish, Health & Biosciences (“H&B”), Scent and Pharma Solutions. These segments align with the internal structure to manage these businesses. The Company’s Chief Operating Decision Maker regularly reviews financial information to allocate resources and assess performance utilizing these segments. Nourish is comprised of three business units, Ingredients, Flavors and Food Designs, with a diversified portfolio across natural and plant-based specialty food ingredients, flavor compounds, and savory solutions and inclusions, respectively. Ingredients provide texturizing solutions to the food industry, food protection solutions used in food and beverage products, specialty soy and pea protein with value-added formulations, emulsifiers and sweeteners. Flavors provide a range of flavor compounds and natural taste solutions that are ultimately used by IFF’s customers in savory products, beverages, sweets, and dairy products. Flavors also provide value-added spices and seasoning ingredients for meat, food service, convenience, alternative protein and culinary products. Food Designs provide savory solution products such as spices, sauces, marinades and mixtures. Additionally, Food Designs provide inclusion products that help with taste and texture by, among other things, combining flavorings with fruit, vegetables, and other natural ingredients for a wide range of food products, such as health snacks, baked goods, cereals, pastries, ice cream and other dairy products. Health & Biosciences is comprised of five business units, 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 business unit’s enzyme solution also allows IFF’s customers to provide low sugar, high fiber and lactose-free dairy products. Home & Personal Care produces enzymes for detergents, cleaning and textile processing products in the laundry, dishwashing, textiles and industrials and personal care markets that help to enhance product and process performances. Animal Nutrition produces enzymes that help to improve the product and process performance of animal feed products, which aim to lessen environmental impact by reducing farm waste. Grain Processing produces enzymes for biofuel production and carbohydrate processing. Scent is comprised of (1) Fragrance Compounds, which are ultimately used by our customers in two broad categories: Fine Fragrances, including perfumes and colognes, and Consumer Fragrances, including fragrance compounds for personal care (e.g., soaps), household products (e.g., detergents and cleaning agents) and beauty care, including toiletries; (2) Fragrance Ingredients, consisting of synthetic and natural ingredients that can be combined with other materials to create unique fine fragrance and consumer fragrance compounds; and (3) Cosmetic Active Ingredients, consisting of active and functional ingredients, botanicals and delivery systems to support our customers’ cosmetic and personal care product lines. Major fragrance customers include the cosmetics industry, including perfume and toiletries manufacturers, and the household products industry, including manufacturers of soaps, detergents, fabric care, household cleaners and air fresheners. Pharma Solutions is comprised of a vast portfolio including cellulosics and seaweed-based pharmaceutical excipients, used to improve the functionality and delivery of active pharmaceutical ingredients, including controlled or modified drug release formulations, and enabling the development of more effective pharmaceutical finished dosage formats. Pharma Solutions excipients are used in prescription and over-the-counter pharmaceuticals and dietary supplements. Pharma Solutions products also serve a variety of other specialty and industrial end-uses including coatings, inks, electronics, agriculture, and consumer products. Reportable segment information was as follows:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
(DOLLARS IN MILLIONS) | 2022 |  | 2021 |  | 2022 |  | 2021
Net sales: |  |  |  |  |  |  |
Nourish | $ | 1,703 |  |  | $ | 1,662 |  |  | $ | 5,252 |  |  | $ | 4,638 |
Health & Biosciences | 512 |  |  | 618 |  |  | 1,838 |  |  | 1,683 |
Scent | 591 |  |  | 580 |  |  | 1,756 |  |  | 1,699 |
Pharma Solutions | 257 |  |  | 211 |  |  | 750 |  |  | 605 |
Consolidated | $ | 3,063 |  |  | $ | 3,071 |  |  | $ | 9,596 |  |  | $ | 8,625 |
Segment Adjusted Operating EBITDA: |  |  |  |  |  |  |
Nourish | $ | 287 |  |  | $ | 327 |  |  | $ | 981 |  |  | $ | 921 |
Health & Biosciences | 137 |  |  | 151 |  |  | 513 |  |  | 469 |
Scent | 119 |  |  | 130 |  |  | 328 |  |  | 375 |
Pharma Solutions | 69 |  |  | 40 |  |  | 192 |  |  | 131 |
Total | 612 |  |  | 648 |  |  | 2,014 |  |  | 1,896 |
Depreciation & Amortization | (293) |  |  | (297) |  |  | (897) |  |  | (861) |
Interest Expense | (83) |  |  | (74) |  |  | (232) |  |  | (216) |
Other Income, net | 33 |  |  | 26 |  |  | 43 |  |  | 44 |
Acquisition Related Costs (a) | (1) |  |  | — |  |  | (2) |  |  | — |
Restructuring and Other Charges | 4 |  |  | (6) |  |  | (5) |  |  | (34) |
Gains on sales of fixed assets | — |  |  | 1 |  |  | 2 |  |  | 1 |
Impairment of Goodwill (b) | (2,250) |  |  | — |  |  | (2,250) |  |  | — |
Impairment of Long-Lived Assets (c) | — |  |  | — |  |  | (120) |  |  | — |
Shareholder Activism Related Costs (d) | — |  |  | — |  |  | (3) |  |  | (7) |
Business Divestiture Costs (e) | (31) |  |  | (16) |  |  | (91) |  |  | (21) |
Employee Separation Costs (f) | — |  |  | (22) |  |  | (4) |  |  | (28) |
Global Shared Services Implementation Costs (g) | (1) |  |  | — |  |  | (1) |  |  | — |
Frutarom Acquisition Related Costs (h) | — |  |  | — |  |  | (1) |  |  | — |
N&B Inventory Step-Up Costs | — |  |  | 14 |  |  | — |  |  | (363) |
N&B Transaction Related Costs (i) | — |  |  | — |  |  | — |  |  | (91) |
Integration Related Costs (j) | (25) |  |  | (24) |  |  | (73) |  |  | (80) |
(Loss) Income Before Taxes | $ | (2,035) |  |  | $ | 250 |  |  | $ | (1,620) |  |  | $ | 240 |
_______________________
(a) | Represents costs related to the acquisition of Health Wright Products, primarily consulting and legal fees.
(b) | 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 operates primarily in Russia.
(d) | Represents shareholder activist related costs, primarily professional fees.
(e) | Represents costs related to the Company's planned sales of businesses, primarily legal and professional fees.
(f) | Represents costs related to severance, including accelerated stock compensation expense, for certain employees and executives who have been separated or will separate from the Company.
(g) | Represents costs related to the Company's efforts of restructuring the Global Shared Services Centers, primarily consulting fees.
(h) | Represents transaction-related costs and expenses related to the acquisition of Frutarom.
(i) | Represents transaction costs and expenses related to the transaction with N&B, primarily legal and professional fees.
(j) | Represents costs related to integration activities since 2018, primarily for Frutarom and N&B. For 2022, represents costs primarily related to external consulting fees and internal integration costs, including salaries of individuals who are fully dedicated to integration efforts. For 2021, represents costs primarily related to performance stock awards and consulting fees for advisory services.
Net sales, which are attributed to individual regions based upon the destination of product delivery, were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(DOLLARS IN MILLIONS) | 2022 |  | 2021 |  | 2022 |  | 2021
Europe, Africa and Middle East | $ | 1,030 |  |  | $ | 1,084 |  |  | $ | 3,258 |  |  | $ | 3,041 |
Greater Asia | 701 |  |  | 696 |  |  | 2,200 |  |  | 1,990 |
North America | 939 |  |  | 925 |  |  | 3,006 |  |  | 2,608 |
Latin America | 393 |  |  | 366 |  |  | 1,132 |  |  | 986 |
Consolidated | $ | 3,063 |  |  | $ | 3,071 |  |  | $ | 9,596 |  |  | $ | 8,625 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(DOLLARS IN MILLIONS) | 2022 |  | 2021 |  | 2022 |  | 2021
Net sales related to the U.S. | $ | 920 |  |  | $ | 860 |  |  | $ | 2,799 |  |  | $ | 2,390 |
Net sales attributed to all foreign countries | 2,143 |  |  | 2,211 |  |  | 6,797 |  |  | 6,235 |
No non-U.S. country had net sales greater than 6% of total consolidated net sales for the three and nine months ended September 30, 2022, and 2021.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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