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Segment Information | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATION Effective January 1, 2025, the Company implemented a reorganization of its internal structure, which impacted the way the CODM, the Chief Executive Officer, allocates resources and assesses financial performance. As a result, the Company has updated its reportable segments beginning with the first quarter of 2025. Specifically, the former Nourish segment has been separated into two new reportable segments: Taste and Food Ingredients. The Taste segment (formerly the Flavors business within Nourish) includes flavor compounds and natural taste solutions used in food and beverage applications. The Food Ingredients segment (formerly the Ingredients business within Nourish) includes a broad portfolio of natural and plant-based specialty ingredients that provide texturizing and food protection capabilities, as well as soy and pea protein solutions, emulsifiers, and sweeteners. In addition, immaterial business transfers occurred between Food Ingredients and Pharma Solutions, and between Health & Biosciences and Taste. Accordingly, the Company’s reportable segments as of Q1 2025 are: Taste, Food Ingredients, Health & Biosciences, Scent, and Pharma Solutions. The Company also adjusted its corporate cost allocations to align with the new organizational structure and updated operating model, consistent with how management assesses performance effective January 1, 2025. Segment information for the three months ended March 31, 2024 has been recast to reflect the updated segment structure and changes in corporate allocations among the Company’s reportable segments on a comparable basis. 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. Reportable segment information was as follows:
| Three Months Ended March 31, 2025
| Taste |  | Food Ingredients |  | Health & Biosciences |  | Scent |  | Pharma Solutions |  | Total
Net sales | $ | 627 |  |  | $ | 796 |  |  | $ | 540 |  |  | $ | 614 |  |  | $ | 266 |  |  | $ | 2,843 |
Cost of sales | (377) |  |  | (609) |  |  | (298) |  |  | (344) |  |  | (180) |  |  |
Research & development expenses | (40) |  |  | (12) |  |  | (52) |  |  | (55) |  |  | (5) |  |  |
Selling & administrative expenses | (94) |  |  | (92) |  |  | (81) |  |  | (86) |  |  | (32) |  |  |
Depreciation expense add-back (a) | 15 |  |  | 28 |  |  | 29 |  |  | 15 |  |  | 5 |  |  |
Adjusted Operating EBITDA | $ | 131 |  |  | $ | 111 |  |  | $ | 138 |  |  | $ | 144 |  |  | $ | 54 |  |  | $ | 578 |
Reconciliation of Adjusted Operating EBITDA: |
Total Adjusted Operating EBITDA | $ | 578 |
Depreciation & Amortization | (236) |
Interest Expense | (71) |
Other Expense, net (b) | (20) |
Restructuring and Other Charges (c) | (17) |
Impairment of Goodwill (d) | (1,153) |
Divestiture and Integration Costs (e) | (51) |
Strategic Initiative Costs (f) | (8) |
Regulatory Costs (g) | (11) |
Other (h) | (5) |
(Loss) Income Before Taxes | $ | (994) |
| Three Months Ended March 31, 2024
| Taste |  | Food Ingredients |  | Health & Biosciences |  | Scent |  | Pharma Solutions |  | Total
Net sales | $ | 619 |  |  | $ | 856 |  |  | $ | 529 |  |  | $ | 645 |  |  | $ | 250 |  |  | $ | 2,899 |
Cost of sales | (384) |  |  | (673) |  |  | (286) |  |  | (350) |  |  | (181) |  |  |
Research & development expenses | (39) |  |  | (20) |  |  | (46) |  |  | (55) |  |  | (6) |  |  |
Selling & administrative expenses | (96) |  |  | (90) |  |  | (88) |  |  | (88) |  |  | (28) |  |  |
Depreciation expense add-back (a) | 17 |  |  | 35 |  |  | 29 |  |  | 16 |  |  | 12 |  |  |
Adjusted Operating EBITDA | $ | 117 |  |  | $ | 108 |  |  | $ | 138 |  |  | $ | 168 |  |  | $ | 47 |  |  | $ | 578 |
Reconciliation of Adjusted Operating EBITDA: |
Total Adjusted Operating EBITDA | $ | 578 |
Depreciation & Amortization | (278) |
Interest Expense | (83) |
Other Expense, net (b) | (1) |
Restructuring and Other Charges (c) | (3) |
Divestiture and Integration Costs (e) | (58) |
Strategic Initiatives Costs (f) | (4) |
Regulatory Costs (g) | (35) |
Other (h) | (1) |
Income Before Taxes | $ | 115 |
_______________________
(a) | There is depreciation recorded within cost of sales, research & development expenses, and 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) | Please refer to Note 8 for additional information. |  |  |  |  |  |  |  |
(c) | For 2025, represents costs related to severance as part of the IFF Productivity Program. For 2024, represents costs related to lease impairment and severance as part of the Company's restructuring efforts. |  |  |  |  |  |  |  |
(d) | For 2025, represents the impairment of goodwill related to the Food Ingredients reporting unit. |  |  |  |  |  |  |  |
(e) | For 2025 and 2024, primarily represents costs related to the Company’s planned divestitures. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts. For the three months ended March 31, 2025, there were approximately $51 million of divestiture costs. For the three months ended March 31, 2024, business divestiture and integration costs were approximately $56 million and $2 million, respectively. |  |  |  |  |  |  |  |
(f) | For 2025 and 2024, primarily 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. |  |  |  |  |  |  |  |
(g) | For 2025 and 2024, represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance business. |  |  |  |  |  |  |  |
(h) | For 2025, represents the net impact of costs related to severance, including accelerated stock compensation expense, for certain executives who have separated from the Company. For 2024, represents costs related to the Company’s entity realignment project to optimize the structure of holding companies, primarily consulting fees. |  |  |  |  |  |  |  |
Segment capital expenditures consisted as follows:
| Three Months Ended March 31,
(DOLLARS IN MILLIONS) | 2025 |  | 2024
Taste | $ | 27 |  |  | $ | 12 |
Food Ingredients | 60 |  |  | 47 |
Health and Biosciences | 40 |  |  | 16 |
Scent | 24 |  |  | 15 |
Pharma Solutions | 28 |  |  | 28 |
Consolidated | $ | 179 |  |  | $ | 118 |
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) | 2025 |  | 2024 |  |  |  |
Europe, Africa and Middle East | $ | 952 |  |  | $ | 977 |  |  |  |  |
Greater Asia | 670 |  |  | 682 |  |  |  |  |
North America | 868 |  |  | 866 |  |  |  |  |
Latin America | 353 |  |  | 374 |  |  |  |  |
Consolidated | $ | 2,843 |  |  | $ | 2,899 |  |  |  |  |
| Three Months Ended March 31, |  |
(DOLLARS IN MILLIONS) | 2025 |  | 2024 |  |  |  |
Net sales related to the U.S. | $ | 801 |  |  | $ | 811 |  |  |  |  |
Net sales attributed to all foreign countries | 2,042 |  |  | 2,088 |  |  |  |  |
No country other than the U.S. had net sales greater than 10% of total consolidated net sales for each of the three months ended March 31, 2025 and 2024.

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