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Restructuring and Other Charges
 12 Months Ended
Dec. 31, 2024
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 Income (Loss) and Comprehensive Loss.
N&B Merger Restructuring Liability
During each of 2024 and 2023, the Company incurred approximately $2 million of charges related to a lease impairment and no charges related to severance. Since the inception of the restructuring activities, there have been a total of 215 headcount reductions and the Company has expensed a total of $49 million, with $15 million of severance, lease termination costs, and lease impairment charges incurred in 2022. As of December 31, 2024, the program was completed.
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. Since the inception of the restructuring program, there have been a total of 670 actual headcount reductions. During 2024 and 2023, the Company incurred approximately $4 million and $70 million of charges related to severance. As of December 31, 2024, the program was completed.
IFF Productivity Program
The Company is undertaking a productivity enhancement program aimed at enhancing productivity and optimizing its organizational footprint to align with business needs. This program will involve a series of actions, including ceasing operations in select manufacturing plants, consolidating lease and owned real estate space, and reducing employee headcount. The Company aims to substantially complete this productivity program by December 31, 2026. The program will impact the Company’s Nourish, Health & Biosciences, and Scent segments.
The estimated total cost of the program initiatives ranges from $50 million to $70 million. The anticipated cash charges include employee-related costs such as severance, contract terminations, and dismantling costs. Additionally, non-cash charges related to assets, such as fixed asset write downs, are expected.
During the fourth quarter of 2024, the Company incurred initial costs in connection with the IFF Productivity Program, recognizing $20 million in fixed asset write down and $3 million in severance costs related to the Nourish segment.
Changes in Restructuring Liability
Changes in restructuring liabilities during 2022, 2023 and 2024 were as follows:
(DOLLARS IN MILLIONS)Balance at January 1, 2022Additional Charges (Reversals), NetNon-Cash ChargesCash PaymentsBalance 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
Severance1 — — — 1 
N&B Merger Restructuring Liability
Severance15 8 — (14)9 
Other(2)
— 7 (2)(4)1 
Total Restructuring and other charges$29 $12 $(5)$(21)$15 
(DOLLARS IN MILLIONS)Balance at January 1, 2023Additional Charges (Reversals), NetNon-Cash ChargesCash PaymentsBalance at December 31, 2023
Frutarom Integration Initiative
Severance$4 $(3)$— $(1)$— 
Other Restructuring Charges
Severance 1 (1)— — — 
N&B Merger Restructuring Liability
Severance9 — — (9)— 
Other(2)
1 2 (2)(1)— 
2023 Restructuring Program
Severance— 70 — (56)14 
Total Restructuring and other charges$15 $68 $(2)$(67)$14 
(DOLLARS IN MILLIONS)Balance at January 1, 2024Additional Charges (Reversals), NetNon-Cash ChargesCash PaymentsBalance at December 31, 2024
N&B Merger Restructuring Liability
Other(2)
$— $2 $(2)$— $— 
2023 Restructuring Program
Severance14 4 — (18)— 
IFF Productivity Program
Severance— 3 — — 3 
Fixed asset write down— 20 (20)— — 
Total Restructuring and other charges$14 $29 $(22)$(18)$3 
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(1)Includes supplier contract termination costs, consulting and advisory fees.
(2)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)202420232022
Nourish$26 $37 $8 
Health & Biosciences1 13 2 
Scent1 15 1 
Pharma Solutions1 3 1 
Total Restructuring and other charges$29 $68 $12