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Employee Benefits
 12 Months Ended
Dec. 31, 2024
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.
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.
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, 2024 and December 31, 2023, the Consolidated Balance Sheets reflect liabilities of approximately $57 million and $52 million, respectively, related to the DCP in Other liabilities and approximately $15 million and $17 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 $52 million and $49 million at December 31, 2024 and 2023, respectively, and are recorded in Other assets in the Consolidated Balance Sheets.
International Flavors & Fragrances Inc. Pension Plan Termination
On August 18, 2023, the Human Capital and Compensation Committee approved the termination of the International Flavors & Fragrances Inc. Pension Plan (the “Plan”). The Plan was formally terminated on April 1, 2024. The settlements of the terminated plan occurred during November 2024, in which lump sum settlements in the amount of approximately $73 million were paid to eligible plan participants who elected such payments, and the purchase of annuity contracts in the amount of approximately $366 million were made to the remaining participants.
Upon settlement of the terminated plan, a settlement loss of $130 million was recognized and is presented in Other expense (income), net on the Consolidated Statements of Income (Loss) and Comprehensive Loss for the twelve months ended December 31, 2024. The settlement loss primarily relates to the recognition of actuarial losses upon termination of the Plan. There was $46 million of tax benefits recognized upon termination of the Plan. Upon completion of the Plan termination and settlement processes, the Company had a remaining pension surplus balance of $36 million which will remain in the trust until the first quarter of 2025. The surplus is primarily invested in short-term U.S. government securities and is presented in Other assets on the Consolidated Balance Sheets at December 31, 2024.
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. PlansNon-U.S. Plans
(DOLLARS IN MILLIONS)202420232022202420232022
Components of net periodic benefit cost
Service cost for benefits earned(1)
$— $— $1 $23 $21 $34 
Interest cost on projected benefit obligation(2)
23 25 15 36 36 17 
Expected return on plan assets(2)
(23)(31)(21)(50)(47)(42)
Net amortization of deferrals(2)
4 2 8 7 (1)11 
Settlements and curtailments(2)
130 — — (1)(8)— 
Net periodic benefit (income) cost134 (4)3 15 1 20 
Defined contribution and other retirement plans31 30 33 46 51 29 
Total expense$165 $26 $36 $61 $52 $49 
Changes in plan assets and benefit obligations recognized in OCI
Net actuarial loss (gain)$(2)$27 $(59)$70 
Recognized actuarial (loss) gain(135)(1)(6)9 
Recognized prior service credit— — — 1 
Currency translation adjustment— — — 9 
Total loss (gain) recognized in OCI (before tax effects)$(137)$26 $(65)$89 
 _______________________ 
(1)Included as a component of Operating profit (loss).
(2)Included as a component of Other expense (income), net.
 Postretirement Benefits
(DOLLARS IN MILLIONS)202420232022
Components of net periodic benefit cost
Service cost for benefits earned$— $— $1 
Interest cost on projected benefit obligation3 3 1 
Net amortization and deferrals(2)(6)(5)
Total cost (income)$1 $(3)$(3)
Changes in plan assets and benefit obligations recognized in OCI
Net actuarial loss$4 $3 
Recognized actuarial loss(1)— 
Recognized prior service credit2 5 
Total recognized in OCI (before tax effects)$5 $8 
The weighted-average actuarial assumptions used to determine expense at December 31 of each year are:
U.S. PlansNon-U.S. Plans
202420232022202420232022
Discount rate4.47 %5.42 %2.86 %3.60 %3.98 %1.43 %
Expected return on plan assets4.93 %6.00 %3.80 %4.95 %4.92 %3.52 %
Rate of compensation increase3.75 %3.75 %3.25 %3.06 %3.01 %2.72 %
Changes in the postretirement benefit obligation and plan assets, as applicable, are detailed in the following table:
 U.S. PlansNon-U.S. PlansPostretirement Benefits
(DOLLARS IN MILLIONS)202420232024202320242023
Benefit obligation at beginning of year$524 $500 $1,056 $930 $52 $50 
Service cost for benefits earned— — 23 21 — — 
Interest cost on projected benefit obligation23 25 36 36 3 3 
Actuarial (gain) loss (14)38 (75)77 4 3 
Adjustments for expense/tax contained in service cost— — (3)(2)— — 
Plan participants’ contributions— — 4 4 — — 
Benefits paid(40)(39)(35)(33)(4)(3)
Curtailments/settlements(439)(1)(13)(21)— — 
Translation adjustments— — (51)45 — — 
Transferred to Liabilities held for sale— — (89)— — — 
Other1 1 (1)(1)1 (1)
Benefit obligation at end of year$55 $524 $852 $1,056 $56 $52 
Fair value of plan assets at beginning of year$505 $498 $1,000 $920 
Actual return on plan assets13 41 30 50 
Employer contributions6 5 23 31 
Plan participants’ contributions— — 4 4 
Benefits paid(40)(39)(35)(33)
Settlements(439)— (13)(21)
Translation adjustments— — (51)44 
Transferred to Assets held for sale— — (39)— 
Other(1)
(36)— 1 5 
Fair value of plan assets at end of year$9 $505 $920 $1,000 
Funded status at end of year$(46)$(19)$68 $(56)
_______________________ 
(1)2024 amount represents remaining pension surplus balance as a result of the Plan termination, that is presented in Other assets on the Consolidated Balance Sheets at December 31, 2024.
The Company maintains defined benefit pension plans for certain employees in the United Kingdom (U.K.). In July 2024, the U.K. Court of Appeal upheld a ruling in the matter of Virgin Media Limited v NTL Pension Trustees II Limited, a decision that the Company was not a party to or involved in, that certain historical amendments for contracted out defined benefit schemes were invalid if they were not accompanied by the correct actuarial confirmation. The Company and its pension scheme trustees in the U.K. are reviewing this development and monitoring whether this decision has any implications for its U.K. defined benefit schemes.
The plan assets and benefit obligations of the defined benefit pension plans recognized in the balance sheet are detailed in the following table:
U.S. PlansNon-U.S. Plans
(DOLLARS IN MILLIONS)2024202320242023
Other assets$1 $30 $143 $109 
Other current liabilities(5)(5)(3)(4)
Retirement liabilities(42)(44)(72)(161)
Net amount recognized$(46)$(19)$68 $(56)
The amounts recognized in AOCI are detailed in the following table:
U.S. PlansNon-U.S. PlansPostretirement Benefits
(DOLLARS IN MILLIONS)202420232024202320242023
Net actuarial (gain) loss$18 $155 $134 $198 $4 $— 
Prior service cost (credit)— — (1)(2)(2)(4)
Total AOCI (before tax effects)$18 $155 $133 $196 $2 $(4)
 U.S. PlansNon-U.S. Plans
(DOLLARS IN MILLIONS)2024202320242023
Accumulated Benefit Obligation — end of year$54 $520 $800 $988 
Information for Pension Plans with an Accumulated Benefit Obligation (“ABO”) in excess of Plan Assets:
Accumulated benefit obligation$45 $47 $83 $165 
Fair value of plan assets— — 32 36 
Information for Pension Plans with a Projected Benefit Obligation (“PBO”) in excess of Plan Assets:
Projected benefit obligation$45 $47 $99 $185 
Fair value of plan assets— — 35 41 
Weighted-average assumptions used to determine obligations at December 31
Discount rate5.52 %4.47 %4.06 %3.59 %
Rate of compensation increaseN/A3.75 %3.18 %2.83 %
(DOLLARS IN MILLIONS)U.S. PlansNon-U.S. PlansPostretirement
Benefits
Estimated Future Benefit Payments
2025$6 $34 $4 
20266 34 4 
20276 35 4 
20285 39 4 
20295 38 4 
2030 - 203422 215 20 
Contributions
Required Company Contributions in the Following Year (2025)$5 $16 $— 
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 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 are based on plan experience.
The percentage of assets in the Company’s pension plans, by type, is as follows:
 U.S. PlansNon-U.S. Plans
 2024202320242023
Cash and cash equivalents— %1 %1 %3 %
Equities19 %13 %17 %16 %
Fixed income81 %86 %41 %42 %
Property— %— %8 %8 %
Alternative and other investments— %— %33 %31 %
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, 2024 and 2023. 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, 2024
(DOLLARS IN MILLIONS)Level 1Level 2Level 3Total
Assets measured at net asset value(1)
9 
Total$— $— $— $9 
U.S. Plans for the Year Ended
 December 31, 2023
(DOLLARS IN MILLIONS)Level 1Level 2Level 3Total
Cash Equivalents$— $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 
_______________________ 
(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 $2 million in pooled equity funds and $7 million in fixed income mutual funds for the year ended December 31, 2024, and approximately $65 million in pooled equity funds and $341 million in fixed income mutual funds for the year ended December 31, 2023.
Non-U.S. Plans for the Year Ended
 December 31, 2024
(DOLLARS IN MILLIONS)Level 1Level 2Level 3Total
Cash$11 $— $— $11 
Equity Securities
U.S. Large Cap101 — — 101 
U.S. Mid Cap8 — — 8 
Non-U.S. Large Cap43 — — 43 
Non-U.S. Mid Cap3 — — 3 
Non-U.S. Small Cap1 — — 1 
Emerging Markets9 — — 9 
Fixed Income Securities
U.S. Corporate Bonds42 — — 42 
Non-U.S. Treasuries/Government Bonds165 — — 165 
Non-U.S. Corporate Bonds50 66 — 116 
Non-U.S. Asset-Backed Securities— 60 — 60 
Non-U.S. Other Fixed Income— 10 — 10 
Alternative Types of Investments
Insurance Contracts— — 270 270 
Absolute Return Funds1 — — 1 
Property
Non-U.S. Property7 — 73 80 
Total$441 $136 $343 $920 
Non-U.S. Plans for the Year Ended
 December 31, 2023
(DOLLARS IN MILLIONS)Level 1Level 2Level 3Total
Cash$27 $— $— $27 
Equity Securities
U.S. Large Cap90 — — 90 
U.S. Mid Cap8 — — 8 
U.S. Small Cap1 — — 1 
Non-U.S. Large Cap50 — — 50 
Non-U.S. Mid Cap5 — — 5 
Non-U.S. Small Cap1 — — 1 
Emerging Markets8 — — 8 
Fixed Income Securities
U.S. Corporate Bonds29 — — 29 
Non-U.S. Treasuries/Government Bonds194 — — 194 
Non-U.S. Corporate Bonds50 88 — 138 
Non-U.S. Asset-Backed Securities— 56 — 56 
Non-U.S. Other Fixed Income2 — — 2 
Alternative Types of Investments
Insurance Contracts— 247 — 247 
Derivative Financial Instruments— 28 — 28 
Absolute Return Funds3 2 — 5 
Private Equity Funds— 27 — 27 
Property
Non-U.S. Property7 — 77 84 
Total$475 $448 $77 $1,000 
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, 2024:
 Non-U.S. Plans
(DOLLARS IN MILLIONS)PropertyInsurance ContractsTotal
Ending balance as of December 31, 2023$77 $— $77 
Actual return on plan assets(4)— (4)
Transfers in/out of Level 3(1)
— 270270 
Ending balance as of December 31, 2024$73 $270 $343 
_______________________ 
(1)Assets were classified as Level 3 investments beginning in 2024.
The following weighted average assumptions were used to determine the postretirement benefit expense and obligation for the years ended December 31:
 ExpenseLiability
 2024202320242023
Discount rate5.10 %5.40 %5.70 %5.10 %
Current medical cost trend rate7.25 %6.50 %7.00 %7.25 %
Ultimate medical cost trend rate4.75 %4.75 %4.75 %4.75 %
Medical cost trend rate decreases to ultimate rate in year2034203020342034
The Company contributed $23 million to its non-U.S. pension plans in 2024. $6 million of contributions were made to the Company’s non-qualified U.S. pension plans in 2024. In addition, $4 million of payments were made with respect to the Company’s other postretirement plans.