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Segment Information | 12 Months Ended
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Dec. 31, 2024
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 ("CODM"), the Chief Executive Officer, regularly reviews financial information to allocate resources and assess performance utilizing these segments. Nourish is comprised of Ingredients and Flavors, with a diversified portfolio across natural and plant-based specialty food ingredients and flavor compounds, respectively. Ingredients provides 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, blends and systems that combine key ingredients tailored to IFF customers' specific needs, and inclusion products that help with taste and texture. 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. 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; and (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. 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. We completed the divestiture of our Cosmetic Ingredients business, previously within the Scent segment, on April 2, 2024. 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. During March 2024, we entered into an agreement to sell the Pharma Solutions business disposal group, that is primarily made up of most businesses within the Company’s existing Pharma Solutions reportable segment as well as certain adjacent businesses. During October 2024, the Company entered into an agreement to sell its nitrocellulose business, which is within the Company’s existing Pharma Solutions reportable operating segment. Both transactions are expected to close in the second quarter of 2025. The Company’s CODM evaluates the performance of these reportable segments based on its Adjusted Operating EBITDA, which is defined as Income (Loss) Before Taxes before depreciation and amortization expense, interest expense, restructuring and other charges and certain items that are not related to recurring operations. The Company’s CODM uses Adjusted Operating EBITDA to evaluate segment performance in deciding whether to reinvest resources into the respective segment or into other parts of the entity. Budget versus actual results of Adjusted Operating EBITDA is used in assessing performance of the segment and in establishing certain compensation payouts. The Company’s CODM also uses Adjusted Operating EBITDA in competitive analysis by benchmarking to the Company’s competitors. The Company’s CODM does not use assets by segment to evaluate segment performance or allocate resources and thus, total assets by segment are not disclosed. The following tables show the Company’s reportable segment information for the years ended December 31, 2024, 2023 and 2022:
| December 31, 2024
| Nourish |  | H&B |  | Scent |  | Pharma |  | Total
Net sales | $ | 5,871 |  |  | $ | 2,212 |  |  | $ | 2,440 |  |  | $ | 961 |  |  | $ | 11,484 |
Cost of sales | (4,147) |  |  | (1,182) |  |  | (1,359) |  |  | (654) |  |  |
Research & development expenses | (220) |  |  | (188) |  |  | (218) |  |  | (24) |  |  |
Selling & administrative expenses | (878) |  |  | (302) |  |  | (412) |  |  | (99) |  |  |
Depreciation expense add-back (a) | 198 |  |  | 114 |  |  | 67 |  |  | 25 |  |  |
Adjusted Operating EBITDA | $ | 824 |  |  | $ | 654 |  |  | $ | 518 |  |  | $ | 209 |  |  | $ | 2,205 |
Reconciliation of Adjusted Operating EBITDA: |
Nourish | $ | 824 |
Health & Biosciences | 654 |
Scent | 518 |
Pharma Solutions | 209 |
Total | $ | 2,205 |
Depreciation & Amortization | (1,015) |
Interest Expense | (305) |
Other (Expense) Income, net (b) | (182) |
Restructuring and Other Charges (c) | (29) |
Impairment of Goodwill (d) | (64) |
Gains (Losses) on Business Disposals (f) | 346 |
Loss on Assets Classified as Held for Sale (g) | (347) |
Acquisition, Divestiture and Integration Costs (h) | (228) |
Strategic Initiatives Costs (i) | (33) |
Regulatory Costs (j) | (73) |
Other (k) | 3
Income (Loss) Before Taxes | $ | 278 |
| December 31, 2023
| Nourish |  | H&B |  | Scent |  | Pharma |  | Total
Net sales | $ | 6,060 |  |  | $ | 2,081 |  |  | $ | 2,393 |  |  | $ | 945 |  |  | $ | 11,479 |
Cost of sales | (4,517) |  |  | (1,170) |  |  | (1,400) |  |  | (698) |  |  |
Research & development expenses | (216) |  |  | (170) |  |  | (202) |  |  | (24) |  |  |
Selling & administrative expenses | (822) |  |  | (266) |  |  | (390) |  |  | (86) |  |  |
Depreciation expense add-back (a) | 227 |  |  | 113 |  |  | 60 |  |  | 62 |  |  |
Adjusted Operating EBITDA | $ | 732 |  |  | $ | 588 |  |  | $ | 461 |  |  | $ | 199 |  |  | $ | 1,980 |
Reconciliation of Adjusted Operating EBITDA: |
Nourish | $ | 732 |
Health & Biosciences | 588 |
Scent | 461 |
Pharma Solutions | 199 |
Total | $ | 1,980 |
Depreciation & Amortization | (1,142) |
Interest Expense | (380) |
Other (Expense) Income, net (b) | (5) |
Restructuring and Other Charges (c) | (68) |
Impairment of Goodwill (d) | (2,623) |
Gains (Losses) on Business Disposals (f) | (23) |
Acquisition, Divestiture and Integration Costs (h) | (174) |
Strategic Initiatives Costs (i) | (31) |
Regulatory Costs (j) | (50) |
Other (k) | (2) |
Income (Loss) Before Taxes | $ | (2,518) |
| December 31, 2022
| Nourish |  | H&B |  | Scent |  | Pharma |  | Total
Net sales | $ | 6,829 |  |  | $ | 2,339 |  |  | $ | 2,301 |  |  | $ | 971 |  |  | $ | 12,440 |
Cost of sales | (4,827) |  |  | (1,361) |  |  | (1,390) |  |  | (701) |  |  |
Research & development expenses | (211) |  |  | (166) |  |  | (189) |  |  | (23) |  |  |
Selling & administrative expenses | (853) |  |  | (282) |  |  | (353) |  |  | (81) |  |  |
Depreciation expense add-back (a) | 238 |  |  | 104 |  |  | 54 |  |  | 56 |  |  |
Adjusted Operating EBITDA | $ | 1,176 |  |  | $ | 634 |  |  | $ | 423 |  |  | $ | 222 |  |  | $ | 2,455 |
Reconciliation of Adjusted Operating EBITDA: |
Nourish | $ | 1,176 |
Health & Biosciences | 634 |
Scent | 423 |
Pharma Solutions | 222 |
Total | $ | 2,455 |
Depreciation & Amortization | (1,179) |
Interest Expense | (336) |
Other (Expense) Income, net (b) | 26 |
Restructuring and Other Charges (c) | (12) |
Impairment of Goodwill (d) | (2,250) |
Impairment of Long-Lived Assets (e) | (120) |
Gains (Losses) on Business Disposals (f) | 11 |
Acquisition, Divestiture and Integration Costs (h) | (201) |
Strategic Initiatives Costs (i) | (8) |
Other (k) | (11) |
Income (Loss) Before Taxes | $ | (1,625) |
_______________________
a | There is depreciation recorded within Cost of sales and Research, selling & administrative expenses, so there is an add-back of depreciation to calculate segment Adjusted Operating EBITDA. This reflects how the CODM reviews Segment results.
b | For 2024, the amount includes a settlement loss of $130 million that was recognized upon termination of the International Flavors & Fragrances Inc. Pension Plan. See Note 8 for additional information on the settlement loss and Note 9 for additional information on Other (Expense) Income.
c | For 2024, represents costs primarily related to the IFF Productivity Program. For 2023 and 2022, represents costs primarily related to severance as part of the Company’s restructuring efforts.
d | For 2024, represents costs related to the impairment of goodwill related to the Pharma Solutions disposal group. 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.
e | For 2022, represents costs related to the impairment of intangible and fixed assets of an asset group that operated primarily in Russia.
f | For 2024, primarily represents gains recognized as part of the sale of the Cosmetic Ingredients business and losses recognized as part of the sale of the F&E UK business. For 2023, primarily represents losses recognized as part of the sale of the Flavors Specialty Ingredients business, the sale of a portion of the Savory Solutions business, and liquidation of a business in Russia for the sale of the portion of the Savory Solutions business. For 2022, represents gains recognized as part of the sale of the Microbial Control business.
g | For 2024, represents the losses recognized on assets classified as held for sale of the Pharma Solutions disposal group and portion of the Savory Solutions business in Turkey.
h | For 2024, 2023 and 2022, primarily represents costs related to the Company's actual and planned acquisitions and divestitures and integration 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, business divestiture and integration costs were approximately $223 million and $5 million, respectively. 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 credit of $(3) million, respectively.
i | Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Shared Services Centers, primarily consulting fees, and strategic initiatives related to the Company’s business unit re-organization efforts.
j | Represents costs primarily related to legal fees incurred for the ongoing investigations of the fragrance businesses.
k | For 2024, represents costs related to the Company’s entity realignment project to optimize the structure of holding companies, primarily consulting fees, and gains from sale of assets. For 2023, represents gains from sale of assets, costs related to severance, including accelerated stock compensation expense, for a certain executive who separated from the Company in 2024. For 2022, 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.
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 to do so. The Company had no customers that accounted for greater than 10% of consolidated net sales in 2024, 2023 and 2022. Long-lived assets, net, by geographic area, consisted as follows:
| December 31, |
(DOLLARS IN MILLIONS) | 2024 |  | 2023 |
United States | $ | 1,326 |  |  | $ | 1,742 |  |
Foreign Countries | 2,413 |  |  | 2,498 |  |
Consolidated | $ | 3,739 |  |  | $ | 4,240 |  |
Segment capital expenditures consisted as follows:
| Capital Expenditures
(DOLLARS IN MILLIONS) | 2024 |  | 2023 |  | 2022
Nourish | $ | 235 |  |  | $ | 252 |  |  | $ | 215 |
Health & Biosciences | 73 |  |  | 85 |  |  | 160 |
Scent | 70 |  |  | 62 |  |  | 56 |
Pharma Solutions | 85 |  |  | 104 |  |  | 73 |
Consolidated | $ | 463 |  |  | $ | 503 |  |  | $ | 504 |
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) | 2024 |  | 2023 |  | 2022
Europe, Africa and Middle East | $ | 3,840 |  |  | $ | 3,834 |  |  | $ | 4,219 |
Greater Asia | 2,731 |  |  | 2,677 |  |  | 2,876 |
North America | 3,440 |  |  | 3,477 |  |  | 3,853 |
Latin America | 1,473 |  |  | 1,491 |  |  | 1,492 |
Consolidated | $ | 11,484 |  |  | $ | 11,479 |  |  | $ | 12,440 |
| Net Sales by Geographic Area
(DOLLARS IN MILLIONS) | 2024 |  | 2023 |  | 2022
Net sales related to the U.S. | $ | 3,219 |  |  | $ | 3,185 |  |  | $ | 3,611 |
Net sales attributed to all foreign countries | 8,265 |  |  | 8,294 |  |  | 8,829 |
No country other than the U.S. had net sales greater than 10% of total consolidated net sales for 2024, 2023 and 2022.

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- Definition The entire disclosure for reporting segments including data and tables. 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