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Revision of Previously Issued Financial Statements | 9 Months Ended
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Sep. 30, 2025
Accounting Changes and Error Corrections [Abstract] |
Revision of Previously Issued Financial Statements | REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS In preparing the Consolidated Financial Statements as of and for the three and nine months ended September 30, 2025, Management identified certain income tax-related adjustments that primarily relate to the understatement of income tax expense due to errors in the accounting for transfer pricing, the correction of deferred tax liabilities on goodwill recorded in purchase accounting, and other income tax entries that impacted prior interim and annual financial statements. Management assessed the materiality of the errors on prior period interim and annual consolidated financial statements in accordance with the Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin No. 99, “Materiality,” codified in ASC 250, Accounting Changes and Error Corrections (“ASC 250”). Based on this assessment, in consideration of both quantitative and qualitative factors, we determined that the related impacts were not material to any previously issued interim or annual financial statements. However, if the corrections were recorded in the three months ended September 30, 2025, they would be material to that period. As such, we revised the previously issued consolidated financial statements for the three and nine months ended September 30, 2024 to correct for the errors in this Form 10-Q. The Company will also correct previously issued financial information for these errors that is not included in this Form 10-Q in its future Quarterly Reports to be filed on Form 10-Q and future Annual Reports to be filed on Form 10-K, as applicable. In conjunction with the revision, we also corrected certain other errors that were previously identified and concluded to be immaterial, individually and in the aggregate, to the Company’s consolidated financial statements as of and for the relevant periods. These include an adjustment to the Pharma Solutions disposal group loss on business disposal which should have been recognized upon the initial classification of the disposal group as held for sale, tax adjustments identified in prior periods primarily related to deferred taxes, balance sheet misclassifications to correct the netting of value added tax receivables and payables and uncertain tax provisions and benefits, an error in the classification of uncertain tax provisions recognized as deferred tax liabilities, an adjustment to record the right of use asset and lease liability related to a lease upon lease commencement that was incorrectly omitted, and a cash flow adjustment to correct the classification of cash paid/received on foreign currency forward contracts from operating activities to investing activities. The applicable notes to the accompanying Consolidated Financial Statements have also been revised to reflect the correction of the errors. The Company also revised the Inventory and Property, plant, and equipment, net disclosures as of December 31, 2024 revising Raw materials from $657 million to $627 million and Finished goods from $1,108 million to $1,138 million, Land from $136 million to $137 million, Building and improvements from $1,688 million to $1,690 million, Machinery and equipment from $3,447 million to $3,466 million, Information technology from $507 million to $514 million, and Construction in process from $389 million to $360 million to correct the timing of transfer of completed Construction in process projects into service. There was no change to the total Inventory or Property, plant, and equipment, net. The following tables reflect the impact of the revision to the specific line items presented in our previously reported financial information for the periods impacted by the revision. The Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) and the Consolidated Statements of Cash Flows for the three months ended March 31, 2025 are not presented as the period was not impacted by the revision. Impacts to Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
| Year Ended December 31, 2024 |  | Year Ended December 31, 2023
(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS) | As Reported | Adjustments | As Revised |  | As Reported | Adjustments | As Revised
Loss on assets classified as held for sale | $ | 347 |  | $ | (30) |  | $ | 317 |  |  | $ | — |  | $ | — |  | $ | — |
Income (loss) before income taxes | 278 |  | 30 |  | 308 |  |  | (2,518) |  | — |  | (2,518) |
Provision for income taxes | 31 |  | 10 |  | 41 |  |  | 45 |  | 24 |  | 69 |
Net income (loss) | 247 |  | 20 |  | 267 |  |  | (2,563) |  | (24) |  | (2,587) |
Net income (loss) attributable to IFF shareholders | 243 |  | 20 |  | 263 |  |  | (2,567) |  | (24) |  | (2,591) |
Net income (loss) per share - basic | $ | 0.95 |  | $ | 0.09 |  | $ | 1.04 |  |  | $ | (10.05) |  | $ | (0.09) |  | $ | (10.14) |
Net income (loss) per share - diluted | $ | 0.95 |  | $ | 0.09 |  | $ | 1.04 |  |  | $ | (10.05) |  | $ | (0.09) |  | $ | (10.14) |
Comprehensive income (loss) | (384) |  | 20 |  | (364) |  |  | (2,261) |  | (24) |  | (2,285) |
Comprehensive income (loss) attributable to IFF shareholders | $ | (388) |  | $ | 20 |  | $ | (368) |  |  | $ | (2,265) |  | $ | (24) |  | $ | (2,289) |
| Six Months Ended June 30, 2025 |  | Three Months Ended June 30, 2025
(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS) | As Reported | Adjustments | As Revised |  | As Reported | Adjustments | As Revised
Loss on Business Disposals | $ | 81 |  | $ | 30 |  | $ | 111 |  |  | $ | 81 |  | $ | 30 |  | $ | 111 |
Income (loss) before income taxes | (460) |  | (30) |  | (490) |  |  | 534 |  | (30) |  | 504 |
(Benefit) for income taxes | (55) |  | (4) |  | (59) |  |  | (78) |  | (4) |  | (82) |
Net income (loss) | (405) |  | (26) |  | (431) |  |  | 612 |  | (26) |  | 586 |
Net income (loss) attributable to IFF shareholders | (406) |  | (26) |  | (432) |  |  | 612 |  | (26) |  | 586 |
Net income (loss) per share - basic | $ | (1.59) |  | $ | (0.10) |  | $ | (1.69) |  |  | $ | 2.39 |  | $ | (0.10) |  | $ | 2.29 |
Net income (loss) per share - diluted | $ | (1.59) |  | $ | (0.10) |  | $ | (1.69) |  |  | $ | 2.38 |  | $ | (0.10) |  | $ | 2.28 |
Comprehensive income (loss) | 707 |  | (26) |  | 681 |  |  | 1,320 |  | (26) |  | 1,294 |
Comprehensive income (loss) attributable to IFF shareholders | $ | 706 |  | $ | (26) |  | $ | 680 |  |  | $ | 1,320 |  | $ | (26) |  | $ | 1,294 |
| Three Months Ended December 31, 2024 |  | Nine Months Ended September 30, 2024
(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS) | As Reported | Adjustments | As Revised |  | As Reported | Adjustments | As Revised
Loss on assets classified as held for sale | $ | 33 |  | $ | — |  | $ | 33 |  |  | $ | 314 |  | $ | (30) |  | $ | 284 |
Income (loss) before income taxes | (115) |  | — |  | (115) |  |  | 393 |  | 30 |  | 423 |
Provision (benefit) for income taxes | (69) |  | 14 |  | (55) |  |  | 100 |  | (4) |  | 96 |
Net income (loss) | (46) |  | (14) |  | (60) |  |  | 293 |  | 34 |  | 327 |
Net income (loss) attributable to IFF shareholders | (46) |  | (14) |  | (60) |  |  | 289 |  | 34 |  | 323 |
Net income (loss) per share - basic | $ | (0.18) |  | $ | (0.05) |  | $ | (0.23) |  |  | $ | 1.13 |  | $ | 0.14 |  | $ | 1.27 |
Net income (loss) per share - diluted | $ | (0.18) |  | $ | (0.05) |  | $ | (0.23) |  |  | $ | 1.13 |  | $ | 0.14 |  | $ | 1.27 |
Comprehensive income (loss) | (813) |  | (14) |  | (827) |  |  | 429 |  | 34 |  | 463 |
Comprehensive income (loss) attributable to IFF shareholders | $ | (813) |  | $ | (14) |  | $ | (827) |  |  | $ | 425 |  | $ | 34 |  | $ | 459 |
| Three Months Ended September 30, 2024 |  | Six Months Ended June 30, 2024
(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS) | As Reported | Adjustments | As Revised |  | As Reported | Adjustments | As Revised
Loss on assets classified as held for sale | $ | 32 |  | $ | — |  | $ | 32 |  |  | $ | 282 |  | $ | (30) |  | $ | 252 |
Income (loss) before income taxes | 95 |  | — |  | 95 |  |  | 298 |  | 30 |  | 328 |
Provision (benefit) for income taxes | 35 |  | 1 |  | 36 |  |  | 65 |  | (5) |  | 60 |
Net income (loss) | 60 |  | (1) |  | 59 |  |  | 233 |  | 35 |  | 268 |
Net income (loss) attributable to IFF shareholders | 59 |  | (1) |  | 58 |  |  | 230 |  | 35 |  | 265 |
Net income (loss) per share - basic | $ | 0.23 |  | $ | — |  | $ | 0.23 |  |  | $ | 0.90 |  | $ | 0.14 |  | $ | 1.04 |
Net income (loss) per share - diluted | $ | 0.23 |  | $ | — |  | $ | 0.23 |  |  | $ | 0.90 |  | $ | 0.14 |  | $ | 1.04 |
Comprehensive income (loss) | 615 |  | (1) |  | 614 |  |  | (186) |  | 35 |  | (151) |
Comprehensive income (loss) attributable to IFF shareholders | $ | 614 |  | $ | (1) |  | $ | 613 |  |  | $ | (189) |  | $ | 35 |  | $ | (154) |
| Three Months Ended June 30, 2024 |  | Three Months Ended March 31, 2024
(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS) | As Reported | Adjustments | As Revised |  | As Reported | Adjustments | As Revised
Loss on assets classified as held for sale | $ | 282 |  | $ | (30) |  | $ | 252 |  |  | $ | — |  | $ | — |  | $ | — |
Income (loss) before income taxes | 183 |  | 30 |  | 213 |  |  | 115 |  | — |  | 115 |
Provision (benefit) for income taxes | 11 |  | 6 |  | 17 |  |  | 54 |  | (11) |  | 43 |
Net income (loss) | 172 |  | 24 |  | 196 |  |  | 61 |  | 11 |  | 72 |
Net income (loss) attributable to IFF shareholders | 170 |  | 24 |  | 194 |  |  | 60 |  | 11 |  | 71 |
Net income (loss) per share - basic | $ | 0.67 |  | $ | 0.09 |  | $ | 0.76 |  |  | $ | 0.23 |  | $ | 0.05 |  | $ | 0.28 |
Net income (loss) per share - diluted | $ | 0.66 |  | $ | 0.10 |  | $ | 0.76 |  |  | $ | 0.23 |  | $ | 0.05 |  | $ | 0.28 |
Comprehensive income (loss) | 48 |  | 24 |  | 72 |  |  | (234) |  | 11 |  | (223) |
Comprehensive income (loss) attributable to IFF shareholders | $ | 46 |  | $ | 24 |  | $ | 70 |  |  | $ | (235) |  | $ | 11 |  | $ | (224) |
Impacts to Consolidated Balance Sheets
| December 31, 2024 |  | December 31, 2023
(DOLLARS IN MILLIONS) | As Reported | Adjustments | As Revised |  | As Reported | Adjustments | As Revised
Assets held for sale | $ | 3,030 |  | $ | 26 |  | $ | 3,056 |  |  | $ | 506 |  | $ | — |  | $ | 506 |
Prepaid expenses and other current assets | 737 |  | (51) |  | 686 |  |  | 875 |  | (8) |  | 867 |
Total Current Assets | 7,993 |  | (25) |  | 7,968 |  |  | 6,293 |  | (8) |  | 6,285 |
Goodwill | 9,080 |  | (5) |  | 9,075 |  |  | 10,635 |  | (9) |  | 10,626 |
Operating lease right-of-use assets | 573 |  | 16 |  | 589 |  |  | 689 |  | — |  | 689 |
Other Assets | 837 |  | 70 |  | 907 |  |  | 764 |  | 50 |  | 814 |
Total Assets | 28,667 |  | 56 |  | 28,723 |  |  | 30,978 |  | 33 |  | 31,011 |
Other current liabilities | 783 |  | 19 |  | 802 |  |  | 977 |  | 11 |  | 988 |
Total Current Liabilities | 4,333 |  | 19 |  | 4,352 |  |  | 3,758 |  | 11 |  | 3,769 |
Deferred income taxes | 1,592 |  | 2 |  | 1,594 |  |  | 1,937 |  | (7) |  | 1,930 |
Operating lease liabilities | 534 |  | 16 |  | 550 |  |  | 642 |  | — |  | 642 |
Other Liabilities | 566 |  | 61 |  | 627 |  |  | 560 |  | 91 |  | 651 |
Total Other Liabilities | 10,423 |  | 79 |  | 10,502 |  |  | 12,578 |  | 84 |  | 12,662 |
Accumulated deficit | (2,605) |  | (42) |  | (2,647) |  |  | (2,439) |  | (62) |  | (2,501) |
Total Shareholders’ Equity | 13,876 |  | (42) |  | 13,834 |  |  | 14,611 |  | (62) |  | 14,549 |
Total Shareholders’ Equity including Non-controlling interests | 13,911 |  | (42) |  | 13,869 |  |  | 14,642 |  | (62) |  | 14,580 |
Total Liabilities and Shareholders’ Equity | $ | 28,667 |  | $ | 56 |  | $ | 28,723 |  |  | $ | 30,978 |  | $ | 33 |  | $ | 31,011 |
Impacts to Consolidated Statements of Shareholders’ Equity
| As Reported |  | Adjustments |  | As Revised
(DOLLARS IN MILLIONS) | Retained Earnings (Accumulated Deficit) | Total |  | Retained Earnings (Accumulated Deficit) |  | Retained Earnings (Accumulated Deficit) | Total
Balance at January 1, 2023 | $ | 955 |  | $ | 17,685 |  |  | $ | (38) |  |  | $ | 917 |  | $ | 17,647 |
Net income (loss) | (2,567) |  | (2,563) |  |  | (24) |  |  | (2,591) |  | (2,587) |
Balance at December 31, 2023 | (2,439) |  | 14,642 |  |  | (62) |  |  | (2,501) |  | 14,580 |
Balance at January 1, 2024 | (2,439) |  | 14,642 |  |  | (62) |  |  | (2,501) |  | 14,580 |
Net income (loss) | 243 |  | 247 |  |  | 20 |  |  | 263 |  | 267 |
Balance at December 31, 2024 | $ | (2,605) |  | $ | 13,911 |  |  | $ | (42) |  |  | $ | (2,647) |  | $ | 13,869 |
The Company’s Consolidated Statements of Shareholders’ Equity for the interim periods were also affected by the revised retained earnings (accumulated deficit) amounts for the periods presented above. Impacts to Consolidated Statements of Cash Flows
| Year Ended December 31, 2024 |  | Year Ended December 31, 2023
(DOLLARS IN MILLIONS) | As Reported | Adjustments | As Revised |  | As Reported | Adjustments | As Revised
Net Income (loss) | $ | 247 |  | $ | 20 |  | $ | 267 |  |  | $ | (2,563) |  | $ | (24) |  | $ | (2,587) |
Adjustments to reconcile to net cash provided by operating activities: |  |  |  |  |  |  |
Deferred Income taxes | (304) |  | (19) |  | (323) |  |  | (369) |  | (2) |  | (371) |
Loss on assets classified as held for sale | 347 |  | (30) |  | 317 |  |  | — |  | — |  | — |
Changes in assets and liabilities, net of acquisitions: |  |  |  |  |  |  |
Other assets/liabilities, net | (94) |  | 29 |  | (65) |  |  | (102) |  | 42 |  | (60) |
Net cash provided by operating activities | $ | 1,070 |  | $ | — |  | $ | 1,070 |  |  | $ | 1,439 |  | $ | 16 |  | $ | 1,455 |
Cash received (paid) on foreign currency forward contracts | (102) |  | — |  | (102) |  |  | — |  | (16) |  | (16) |
Net cash provided by investing activities | $ | 326 |  | $ | — |  | $ | 326 |  |  | $ | 574 |  | $ | (16) |  | $ | 558 |
| Six Months Ended June 30, 2025 |  | Nine Months Ended September 30, 2024
(DOLLARS IN MILLIONS) | As Reported | Adjustments | As Revised |  | As Reported | Adjustments | As Revised
Net Income (loss) | $ | (405) |  | $ | (26) |  | $ | (431) |  |  | $ | 293 |  | $ | 34 |  | $ | 327 |
Adjustments to reconcile to net cash provided by operating activities: |  |  |  |  |  |  |
Deferred Income taxes | (163) |  | (1) |  | (164) |  |  | (128) |  | (15) |  | (143) |
Loss on assets classified as held for sale | — |  | — |  | — |  |  | 314 |  | (30) |  | 284 |
Loss on business disposals | 81 | 30 | 111 |  | — |  | — |  | — |
Changes in assets and liabilities, net of acquisitions: |  |  |  |  |  |  |
Other assets/liabilities, net | 26 |  | (3) |  | 23 |  |  | (102) |  | (10) |  | (112) |
Net cash provided by operating activities | $ | 368 |  | $ | — |  | $ | 368 |  |  | $ | 702 |  | $ | (21) |  | $ | 681 |
Cash received (paid) on foreign currency forward contracts | 112 |  | — |  | 112 |  |  | — |  | 21 |  | 21 |
Net cash provided by investing activities | $ | 2,541 |  | $ | — |  | $ | 2,541 |  |  | $ | 586 |  | $ | 21 |  | $ | 607 |

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